MARKETING STRATEGY- TARGET MARKET STRATEGY

Defining Mahal’s target market is a must when it comes to a successful business. Understanding the target market will assist Mahal with defining on what our customer want and need. Also, the “market segment differ in size and potential, segmentation helps decision makers more accurately define marketing objectives and better allocate resources” (MKTG3, McDaniel Lamb Hair, Ch 7, pg 98). There are three segmentations that our company is focusing on, age segmentation, gender segmentation, and income segmentation.

Among the age segmentation, Mahal is concentrating on the target market of the generation Y. They are in their late teens to early thirties. Most of them are college students or women in their “in between” stage, meaning they are going off to college or into their careers. Annually, generation Y spends nearly $200 billion, and in their lifetime they will most likely spend $10 trillion. There are over 60 million people categorized in the generation Y demographic in the United States alone. In addition, gender segmentation is just as important as the age segmentation. It is apparent that Mahal perfume is targeting to females. According to the U.S. Census Bureau, 51.4% of the generation Y is females (U.S. Census Bureau, www.factfinder.census.gov). Another segment that is important to Mahal is the income segmentation. Previously mentioned, Generation Y women are either college graduates or on their way to a major stage of their life, and making prime purchases. This is why Mahal is pricing their product at an affordable price to accommodate to the generation Y women.

In order to reach to the generation Y we will be retailing in department stores. Department stores are a perfect place to sell our products because of the amount of foot traffic done by women, and also it is a convenient location for women to sample Mahal. In addition to department stores, online retailing will be used. There are over 70% of Americans that have access to the internet, and the generation Y has mostly been raised with this technology all their lives. Also, “consumers have found this type of shopping convenient and, in many instances, less costly” (McDaniel Lamb Hair, MKTG3, Ch 13, pg 201).