Before going into production, a small paint factory in the UK conducted a survey on the local interior decoration paint market, interviewed many potential consumers, and investigated and analyzed their various needs for products. Then the market was segmented: 60% of the paint market is a large popular market, which has potential demand for various paint products. However, this paint factory is unable to participate in the competition in this market, so it is not considered. There are also the following four market segments.
① The market of housewives without labor. The characteristics of the consumer group in this market are that they do not know what kind of paint is needed for interior decoration, but require good quality paint, and require paint dealers to provide designs and beautiful paint effects.
② The market of painter assistants. The consumer group in this market needs to buy better quality paint. They used to buy paint from old-fashioned metalware stores or lumber mills.
③ The market of old paint technicians. The characteristics of these consumer groups are that they never buy ready-mixed paints, but buy pigments and oils and mix paints by themselves.
④ The market of young couples who are sensitive to prices. The characteristics of this market consumer group are low income, and residents of rented apartments must paint their homes within a certain period of time to protect their homes. Therefore, when these residents buy paint, they don’t ask for good quality, as long as it is slightly better than white powder slurry, but they require a low price.
Through research, the factory decided to choose the market segment of young couples in apartments as the target market based on its own human and material resources, and formulated the following marketing mix strategy.
① Products are sold in a small number of paints with different colors and sizes and different packaging (color varieties and can sizes can be added, changed or cancelled at any time according to consumer preferences).
② Distribution-distribution to every retail store near the target consumer’s residence (if a new retail store appears in the market area, it will be immediately recruited to order the factory’s products).
③ The price remains a single low price, without any special price (do not follow the paint manufacturers in other markets to adjust prices).
④ Promotion-the content of the promotion is based on “low price” and “satisfactory quality” to meet the needs of the target consumer group (regularly change the store layout and advertising manuscripts, create a new image, and change the advertising media).
This paint factory has achieved great success by choosing the appropriate market segment as its target market and developing a corresponding marketing mix strategy. Although it sells low-end products, it meets the needs of the target market.