In order to conduct the first step of our Brand Valuation, we need to define what segments are. They are typically defined by geography, business unit, product, service or customer group. For this assignment, we define non-overlapping and homogeneous market segments, according to customer groups and their related purchase behaviours in Singapore.
In Assignment 1, we initially categorised our target segments into 2 segments:
- Gift-Givers and Gift-Receivers
- Affluent Self-Buyers
However, for brand valuation, we are more concerned about our target segments’ in terms of their brand perception and spending and how this translates into the value of the brand. The main two segments that we chose are therefore Gift-Givers and Affluent Self Buyers, leaving out Gift-Receivers, as we are focussing on are those who only PURCHASE from the brand.
As discovered in Assignment 2(b), our Brand Survey findings, we found that most of our respondents do not own and purchase Tiffany products for themselves but for others, and they are mostly gift-givers. Hence, our market segments for this assignment are: Gift-Givers comprising 70%, and 30% for Affluent Self-Buyers.