Market Segmentation and Product Positioning

Market Segmentation and Product Positioning

Monique Neville

Strayer University

MKT--500025VA016*1114*001—Marketing Management

Dr. Stephen R. Hiatt

April 22, 2011

Introduction

Modern Opulence Handbags (MOH) is an Internet based company specializing in selling and renting affordable luxury handbags, belts, and accessories. MOH sources wholesalers, manufacturers and drop shippers that ship directly to the end-customer. Since there is minimal inventory held for rentals and no brick and mortar overhead, MOH is able to offer extremely competitive prices for high quality, high fashion handbags. Customers are able to shop directly on the company website as well as liquidation links for auctions on MOH’s eBay site and Amazon.

The unique selling position (UPC) of MOH is that the customer can create custom handbags to their specifications directly online, rent exclusive luxury handbags, and purchase a variety of the latest high fashion brands at competitive discounted prices. MOH offers a monthly membership allowing customers to rent bags of differing levels of cost at affordable weekly prices. MOH also offers an iron-clad 60 day money back guarantee for all purchases and offers an online Chat support service. There is also a free newsletter with additional discounts and coupons and a customer-driven forum and support center that allows customers to have access to FAQs, latest industry trends and news and a host of other informative benefits.

Analysis of Market Segmentation and Product Positioning

1. Identify the marketing segment for the product and explain why this segment was selected; 

Marketing segmentation is how we as marketers deal with customers’ differing tastes, perceived needs and wants from the product offerings we sell (Iacobucci, p. 16).  MOH will appeal to the customer segment comprised of females aged 20-45 with the majority of focus on the sub-segment ages 25-34. This sub-segment represents 80% of the buying power...