Marketing Help


Create the Value: Market Segmentation Analysis and a Value Proposition


Your company, a major retailer, has decided to explore the possibility of developing a new retail brand aimed at a specific target market.  Prepare a report that would form the basis of a planning discussion with your major retailer’s senior marketing team of managers.


The term retail brand refers to a retail store concept, as opposed to a manufacturer’s product or service brand.  The retail company is the brand – like Target, GAP, PetSmart,     or Victoria’s Secret.  


As an example, what if Target created an off-shoot company that specialized in pet services for dogs (veterinary care, pet foods, pet training) and called it Pooches!


In this example, Pooches would fall under the Target corporate umbrella, but would be an entirely separate retail store company.


Please prepare a report that would form the basis of a planning discussion with your senior marketing team of managers. Your report should include a detailed analysis of a potential market segment and a description of the proposed value proposition.  Be sure to discuss the financial opportunities that support your rationale for the kind of retail store chain that you would propose.  Research will be paramount here.


Your report should be about 1,000–1,250 words and include a minimum of three (3) scholarly references. Please use the APA format for your paper and references.  Information on APA format, including the APA running HEADER atop each pagem may be found at


Please include the following sections.


1. Brief Description of the proposed retail brand concept


2. Potential Market Segment


Identify the characteristics of your potential target market in the United States. The figure from the Week 2 Lecture is helpful—you may also include other variables that you consider relevant. You also need to estimate the size of your target market and the revenue potential. The list below contains information from which you might draw your target market description that should include demographics characteristics, geography, and any other appropriate segmentation variables.


Major Segmentation Variables for Consumer Markets

Geographic region

Pacific Mountain, West North Central, West South Central, East North Central, East South Central, South Atlantic, Middle Atlantic, New England

City or metro size

Under 5,000; 5,000–20,000; 20,000–50,000; 50,000–100,000; 100,000–250,000; 250,000–500,000; 500,000–1,000,000; 1,000,000–4,000,000; 4,000,000 or over


Urban, suburban, rural


Northern, southern

Demographic age

Under 6, 6–11, 12–19, 20–34, 35–49, 50–64, 64+

Family size

1–2, 3–4, 5+

Family life cycle

Young, single; young, married, no children; young, married, youngest child under 6; young, married, youngest child 6 or over; older, married, with children; older, married, no children under 18; older, single; other


Male, female


Under $10,000; $10,000–$15,000; $15,000–$20,000; $20,000–$30,000; $30,000–$50,000; $50,000–$100,000; $100,000 and over


Professional and technical workers; managers, officials, and proprietors; clerical salespeople; craftspeople; forepersons; operatives; farmers; retired people; students; homemakers; unemployed people


Grade school or less; some high school; high school graduate; some college; college graduate


Catholic, Protestant, Jewish, Muslim, Hindu, Buddhist, other


White, Black, Asian, Hispanic, other


Baby boomers, Generation Xers, other


North American, South American, British, French, German, Italian, Japanese, other

Social class

Lower lowers, upper lowers, working class, middle class, upper middles, lower uppers, upper uppers

Psychographic lifestyle

Culture oriented, sports oriented, outdoor oriented


Compulsive, gregarious, authoritarian, ambitious

Behavioral occasions

Regular occasion, special occasion


Quality, service, economy, speed

User status

Nonuser, ex-user, potential user, first-time user, regular user

Usage rate

Light user, medium user, heavy user

Loyalty status

None, medium, strong, absolute

Readiness stage

Unaware, aware, informed interested, desirous, intending to buy

Attitude toward product

Enthusiastic, positive, indifferent, negative, hostile


3. The Value Proposition


Describe the bundle of benefits and features that are offered to the target customer. Features are what the company offers and benefits are what the customer derives from these features.


  • Functional benefits: What basic product features are offered?

  • Emotional benefits: What features are offered that make the customer feel good?

  • Self-expressive benefits: What features are offered that help reflect and communicate the customer’s values to everyone in the social environment?


4. Conclusions  This will be your wrap-up that includes the key “takeaways” that you wish the senior marketing management team to ‘take away’ from your proposal to create the retail store chain under the parent company’s corporate umbrella.  It should include important facts or concepts on which you want these executives to reflect after they leave their meeting with you.




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