Levitz Jeans Company is a California based company that intends to sell high-end jeans to customers throughout the California region. The company will be selling jeans for men, women, children, as well as unisex jeans. The jeans are manufactured by the company’s textile arm, which is also located in California.
The target customers for this product are middle class men and women who could be parents. The target age group is men and women between the ages of 25-45 with a monthly income of about $33,000 to $100,000. These young, hip individuals are into high-end products. These individuals need fashionable jean trousers custom made for their tastes and preferences. These individuals are sociable and like to show off with their fashion. They are concerned about what other people (especially those in their social circles) say about them or their perception of them. The expensive custom made trousers enable them to fit into their social circles and keep abreast with their peers.
The target customers also have at last one child that they look after. The target customers also want to show off their high-end living by buying their children the best clothes in the market. These children also want to show off their fashion sense to their schoolmates and neighbors. They will therefore coerce their parents into buying these high-end custom-made jeans.
These customers also want jeans that can last long without the need for repairs. They want jeans that can be worn several times without losing their quality. The perception is that the more expensive the pair of jeans is, the longer they will last looking as good as the time one bought them. Therefore, the company is looking to sell its products to individuals who value quality over price or quantity.
Various segmentation strategies will be utilized in trying to open up the company’s target groups. The segmentation strategies involved dividing the target market into subsets based on similar needs, interests, or priorities. The segmentation strategies that the company will implement will depend on the competitors’ positions. The company’s two main competitors in the local Californian market include Calvin Klein and Levi Strauss high-end jeans.
The two have a huge market share and their prices have made the local industry seem very lucrative to other smaller competitors. These high prices have made the competition in the local market very intense. The companies are well known because they have been in the market for many years. This makes it very difficult to depose these companies and take their customers from them. However, with strategic segmentation strategies, the Levitz Jeans Company can be able to make a niche market for itself.
The company has already segmented its target market using age, income, life-cycle stage, and social class. This form of segmentation is known as demographic segmentation, which encompasses the division of the target market by the characteristics of the target market. The company is looking to sell to customers who are between the ages of 25-45. These individuals also earn a salary range of between $33,000 and $100,000. These individuals are young and hip professionals who have enough disposable income to splurge on luxury items such as high-end designer jeans. The individuals in this target group are also new parents with majority of the older patrons having two or more teenage children. The individuals that the company is targeting also belong to the upper middle class social class.
The target market can also be segmented based on psycho-demographic segmentation. Psycho-demographic segmentation involves attempting to answer why the consumer purchases certain items. This segmentation attempts to segment the members of the target group by dividing the group based on lifestyle, personality, and values.
When it comes to lifestyle, the marketing department will divide the target group according to activities, interests, and opinions. The intended target group has individuals who are outdoors oriented and they love to go to watch the local sports i.e. they are real sports fans. Sporting activities helps them bond with their family members after a long week at work. These individuals also like going out for family building activities such as picnics. As such, these individuals are always looking for the most fashionable, well-fitting, and comfortable apparel to wear to these events.
Personality and values are also critical in psycho-demographic segmentation meaning that the marketing department needs to divide the target group based on the observed values and personalities of the target population. The target population can be described as being ambitious, compulsive, and competitive. These are individuals who are constantly looking for ways to get promotions at work, better houses, better cars, and a better education. They are also super competitive often working at all times of the day to beat the rest of the fray.
Niche marketing strategy
Based on the information that we have discovered about our target audience, it is imperative that we develop a niche marketing strategy. A niche marketing strategy involves developing a marketing approach that appeals to a specific minority subset. A niche marketing strategy will have a product that is easily distinguishable from other products and this product is created for specialized uses within that niche market.
Listening to our customers is the primary niche marketing strategy that the company will use. Our target customers are constantly online and social media is the best platform to reach the target consumers. We will open pages on all social media websites and place our products on the page regularly. Customers can communicate with the company such as placing orders on the company’s website and other social media platforms.