Market segmentation is the process of dividing a market of potential customers into groups,

or segments, based on different characteristics. The segments created are composed of

consumers who will respond similarly to marketing strategies and who share traits such as
similar interests, needs, or locations.

Why is market segmentation important for marketers?

Market segmentation makes it easier for marketers to personalize their marketing campaigns.

By arranging their company’s target market into segmented groups, rather than targeting each
potential customer individually, marketers can be more efficient with their time, money, and
other resources than if they were targeting consumers on an individual level. Grouping
similar consumers together allows marketers to target specific audiences in a cost effective
manner. Market segmentation also reduces the risk of an unsuccessful or ineffective
marketing campaign. When marketers divide a market based on key characteristics and
personalize their strategies based on that information, there is a much higher chance of
success than if they were to create a generic campaign and try to implement it across all
segments. Marketers can also us segmentation to prioritize their target audiences. If
segmentation shows that some consumers would be more likely to buy a product than others,
marketers can better allocate their attention and resources.

Marketing Segmentation
The company is doing business in three main segments, in which personal care, medicine and
pharmaceuticals are included. The products of these big segments are prepared and these are
also provided to the clients in their local markets. The brand has maintained its different
departments to create innovation in its products and these products are prepared after extensive
study in the research field.

Segmentation Theory
Define and Explain Segmentation
Segmentation is a process of classify the market for a service or product into different groups or
segments, and applying different marketing strategy in each segments according to the different target
market (Lancaster and Reynolds, 2005). Opinions, values, attitudes and lifestyle are the based
for segmentation Dividing a market into several groups of promising customers might be more
advantageous than invite an extensive consumer foundation. Segmenting let the marketing to achieve
nearly subgroups of consumers who probably give more response to the product and service which
offered and results in high profits. Better knowledge of the needs and wants of the customer
approving better acceptance of products that been offers and also better experience on competitive
advantage.

Benefits of using segmentation

By doing segmentation Johnson and Johnson could promote opportunities for success in competitive
market atmosphere. They able to analyze marketing possibility among its competitors and can adjust
in their known market environment. Johnson and Johnson capable to create two-way communication
between the organization and the customer, also maintain the relationship because they have a clear
product segments, and they have different customer services in each segments, so that they can
provide and give the correct information according to the customer’s request.
By segmentation the company might know the differences that occur in each group and could
increase the standards of service delivery according to its product. Every product need different
concern and it may lead to decrease in costs on variant marketing projects such as advertisements.
They might upgrade their market share as they get more profits by doing segmentation Johnson and
Johnson can put more concentrate to preferred groups of customers, and according to marketing
concept, Johnson and Johnson can put the customer’s needs as the centre of the decisional making.

Target Market Identification

Geographic Segmentation
The Republic of Singapore located in Southeastern Asia. The total population 4.8 million estimated
including emigrant and rate of employment with total area 647.5 square kilometers and 3642.7
residences. 50% of the land consists of urban areas and 40% covered
with parkland, accumulation,estate and open military areas. Main city area occurs along Singapore
river banks with high density areas. Colonial district lies to the North of Singapore, Little India and
Central Business District (CBD) spread at Southern coast of Singapore river and Jurong stretch to the
west. International airport placed in the Eastern shore of the city. Huge and better developing houses
present at Northeastern of Singapore. Geographical location and the sea situation
influence atmospheric condition in Singapore. The climate is warm and moist,
with consistent temperature range between 23 -31 degree celcius, high humidity and
sufficient rainfall.
The climate in Eastern side of Singapore is more dryer and hotter then the Western part. Singapore
has 63 islands, and according to its strategic position, their helps in grow for trade, communications
and tourism. Singapore has many immigrants from China, India, Srilanka and Indonesia. English is
the main language of business and administration, it is widely spoken and understood. Dominant
ethnic groups are Chinese, Malays, and Indians. Singapore known as green city. Marketers will
concentrate in metropolitan areas as they have fastest growing states. Johnson and Johnson will
distribute their product mainly in the main city areas as they have high density and also in the
Northeastern side as many residences placed there.

Demographic Segmentation
Singapore is considered to be the second most densely populated independent nation of the world.
Singapore Chinese people have the largest group population in Singapore. Singapore is a
multireligious country, major population are Buddhism and the rests are Christians, Muslims,
Sikhism, Hinduism and Taoism. Singapore experienced low birth rate, resulted in high
income, education and low rate of population growth. Singapore facing aging population. Singapore
has many advantages in doing business with their geographical locations, well-developed
infrastructure, availability of both international and domestic transportation. Singapore age structures
are, 0-14 years, male dominant, 15-64 years, female dominant, and 65 years and over, female
dominant. The age groups for Johnson and Johnson target market is gen X, that is in Singapore 15-64
years with female dominant.
Their nationality is Singaporean, the gender of target market is female with housewife occupation and
full nest 1 life cycle stage and bachelor or university education stage with household income level
between 500-1000 Singapore dollar. Singapore has a problem of ageing population and small family
consists of one or no kids at all. Singapore is a multicultural country, the different taste of people
could affect the Johnson and Johnson market. Moreover, the low birth rate, will give a threat for
distribution of the product. People in Singapore mainly are high educated, with triangle and halal logo
in Johnson and Johnson product, would give opportunities and profit as many people will choose the
product to be consumed to considered their health. The raw materials are low as Johnson and Johnson
is a recycle product packaging so it will spend less energy cost which lead to high profits.

Psychographic Segmentation
Lifestyle, family with young children is likely to have a different lifestyles to a much older couple
whose children have left home. There would be much differences in consumption patterns. Target
market for Johnson and Johnson is likely dependent or family with at least one dependent child.
Opinions, interests and hobbies covers cultural issues, views on the environment and political
opinions. Opinions that customers hold and activities that they engage will have a huge impact on the
products they buy and Johnson and Johnson have to beware of any changes. Product that
environmentally friendly like Johnson and Johnson could influence the growth of demand for organic
products. By segmenting, Johnson and Johnson can adapt their marketing strategies in order to retain
loyal customer. Sometimes keep the customer will be more profitable than keep looking for new
customer.
Depending on household income every month, the customers may purchase these products on a
monthly basis. By this segmentation, Johnson and Johnson might identify and understand the main
benefit consumers look for in the product. Johnson and Johnson baby shampoo is not only to maintain
baby soft hair, but also to protect baby eyes from hurt so they will not cry when the shampoo gets
into their eyes. In Roy Morgan lifestyle segments, Johnson and Johnson could be classify as basic
needs and something better. A new mother must try for several shampoo to her first baby, after she
experienced the baby reaction by using the shampoo, the mother will know which one is better, and
finally she will use the same product for her next baby.

Behavioural Segmentation
Johnson and Johnson is a strong brand. Usage rate is medium as it is a safety and psychological needs
according to Maslow. The mother is the valuable customers who buy the brand all the time. Johnson
and Johnson also segments the market into where loyal customers and new customers will be found.
For locations, the consumer will fine Johnson and Johnson product mostly in NTUC Fair Price as that
is the dominant retailer shop in Singapore. The mother will buy this product for monthly usage. This
is a low involvement decision product, the things that motivates the mother to purchase this product is
for the baby safety. User status is regularly use.
Attitude reflects the relationship between a consumer and the products. Attitude in consumer
behaviour is the result of direct experience with particular products that achieve by verbal
communications. Perceptions are what the consumers think about the products and it requires
knowledge. The formation of consumer attitude is extremely influenced by the opinions of the process
with whom an individual communicates on daily basis. Not only visual attributes of a brand form one
or more attitude such as smell, sound, taste, that touch by a consumer. In the future, seek for a
competitive advantage, with a help of brand exclusiveness, the impact of the five senses, influences
consumer’s attitudes.