Simulation: Segmentation, Targeting, Positioning Feedback
RESULTS REPORT
Date: 14 April 2022
SIMULATION TITLE: Segmentation, Targeting, Positioning
SIMULATION DESCRIPTION: Holden Evan, Inc. is a large multinational consumer goods company. It has recently acquired Smoothsayer,
a beauty cream for women, which offers several health benefits at a significant cost of $300 per jar. As Marketing Manager, your task is
to target Smoothsayer to appropriate market segments, and define suitable positioning statements for it.
You earned 100 percent.
Background
Holden Evan, Inc. is a large multinational consumer goods company. It has recently acquired Smoothsayer, a beauty cream for women,
which offers several health benefits at a significant cost of $300 per jar. Smoothsayer fights skin aging in the short term (by reducing
significant wrinkles) and in the long term (by providing UV protection). Product testing has shown that the product can slightly reduce
acne as well.
As Marketing Manager, your task is to target Smoothsayer to appropriate market segments, and define suitable positioning statements
for it.
Choose Segmentation Variables
Before marketing Smoothsayer beauty cream, you must determine the target demographic for this product. To do this, evaluate the
overall market and divide it into segments that will help you define your target audience. Gender is one segmentation variable you will
use. Choose two more segmentation variables that will help you to effectively analyze the market for this product.
You chose gender, age and social class as your segmentation variables. This was a good choice because all of these variables are
relevant when marketing an expensive, anti-aging beauty cream.
Next Step
Now that you have divided the market into segments, what should be your next step?
YOU CHOSE OPTION 2
Identify the market segment or segments to target.
As your next step, you chose to select the market segment or segments to target. This was the correct choice, since you need to identify
your target market before you can position your product or create a marketing campaign.
Targeting Strategy
To identify the market for your product, you need to decide how many market segments to pursue. Select an approach that has a good
chance of being effective.
YOU CHOSE OPTION 1
Target a large share of one market segment.
You chose to target a large share of one market segment. This was a good choice, since it allowed you to concentrate your marketing
efforts.
Choosing Gender of Segment
Now you need to narrow down each of the segments that you chose in order to find the best target market for Smoothsayer beauty
cream.
First, what gender are you marketing to?
YOU CHOSE OPTION 2
Female
You correctly identified the market for Smoothsayer beauty cream as female.
Choosing Age of Segment
Now that the primary target market's gender has been determined, what is the best target age group?
YOU CHOSE OPTION 3
Middle-aged and older adults (age 35 and up)
You chose an age range of 35 and up for the primary target market. This was the best choice for a product that contains anti-aging and
wrinkle-reducing ingredients.
Choosing Class of Segment
Which social class is the best fit for the primary target market?
YOU CHOSE OPTION 3
Upper class
You identified the primary target market as upper-class. This was the best choice, because Smoothsayer is an expensive product.
Key Differences
In order to promote Smoothsayer, you need to decide how to distinguish it from its competitors. What is a good number of key product
differences to promote? There may be more than one good choice here.
YOU CHOSE OPTION 2
Two
You chose to promote two key differences to distinguish Smoothsayer from its competitors. This was a good choice. Many marketers
recommend positioning a product on more than one differentiator to clearly distinguish from competing products.
Promoting Key Differences
You are focusing on two product attributes when promoting Smoothsayer. Which product attributes do you want to promote?
YOU CHOSE OPTION 2
Smoothsayer is high-quality and anti-aging.
You chose to promote Smoothsayer as being anti-aging and high quality. This was a good choice to appeal to older consumers.
Select a Positioning Strategy: Critical Thinking
Bearing market share in mind, what is the best way to position Smoothsayer in the marketplace? Select a positioning strategy based on
the information in this positioning map.
YOU CHOSE OPTION 1
"Go ahead and splurge. Your skin will thank you."
To position Smoothsayer relative to the competition, you chose the slogan "Go ahead and splurge. Your skin will thank you." This
positioned the product as offering more for more, which was correct according to the positioning map.
Select a Positioning Strategy
What is the best reason for your choice?
YOU CHOSE OPTION 1
Smoothsayer is more expensive than its competitor, but gives higher value for money.
You justified your chosen slogan on the grounds that Smoothsayer was more expensive but gave higher value for money. This was the
correct choice.
