Assignment #2: Segmentation Exercise

Dale Peterson
Justin Dalisay
Cedric Burkhardt

MKTG 315
Spring 2018
Professor Fyles

School of Business Administration

Stetson University
DeLand, FL
Your product (a brief description):

Our product idea is a “Smart” bicycle racks that will be installed in key, high-traffic areas (downtown areas,
parks, college campuses, etc…). The new smart bicycle racks will solve two key problems that cyclists are
encountering: a place to park your bike, and a way to protect it from theft. With our product, a cyclist will no
longer need to worry about remembering to bring their chain and lock with them. Our bike racks will have a
locking mechanism that will keep the bike secure until the owner returns. We will provide a couple of options
for payment to use our bike racks (pay per use or a monthly subscription). Based on the level of the subscription
that is selected, a user can reserve a place on the bike rack, eliminating the worry of finding a place to park. We
will also pursue advertising opportunities on our racks and on our smartphone application for additional revenue
streams.

Congratulations…You have a product idea! Now, let’s look at possible consumers for that product.
In this exercise, your group will identify three (3) distinct sets of consumers who might want/use this product. Remember
– businesses and institutions are possible customers too! Careful though, when we speak of firms as potential customers
– we mean FOR THEIR USE, not for that company or institution to SELL your product to other folks. Customers are the
ultimate USERS of your product.
Identify these three groups of potential customers and brainstorm in your group about how they are different from each
other.
Organize these differences in a table for easier use. One column per customer segment, one line (or box) for each
characteristic.
Consider these ways they differ:
1. Geo-demographically
a. Who are they? (e.g., age, income, ethnicity, gender, etc.)
b. Where are they? (Where do they live? Where do they work? Where would they use the product?)
2. Psychographically
a. How do they feel about things/issues relevant to this product class?
b. Is it possible to cultivate loyals?
3. Behaviorally
a. How would they use the product?
b. How do they shop?
c. How do they get information about products?
d. How price-sensitive are they?
4. Lifestyle
a. How do they live their lives?
b. How can this product fit into that lifestyle?
5. Benefits Perceived/Desired
a. What, specifically, will they want in this product?
b. What are likely to be the satisfaction drivers?
c. What utilities does this product provide?
d. What augmented product features are valuable to them?
 College Students City Commuters Park Visitors
Demographic
Age 17-25 25-45
Gender Male/Female Male
Income College students 30k to 60k annually
supporting themselves
and/or full-time students
Ethnicity Not Specific Not specific
Occupation Any or no occupation Any occupation located
downtown.
Education College Students High School and/or
college degree
Religion Not Specific Not specific
Ethnicity Not Specific Not specific
Generation Primarily Millennials Generation, Y, Z and
Millennial

Geographic
States States with big university Nationwide during the
campuses where biking summer. Only warm
to class is popular states during the winter.
Counties Any Any. Copenhagen,
Denmark would be an
amazing market.
Cities Primarily targeting major Any
cities with large colleges
(For example, UCF in
Orlando.)
Neighborhoods College campus dorms No
Population Density High High
Climate Warm during the summer Warm during the summer

Psycho-graphically
Social class Middle Middle
Lifestyle Active students who Active
prefer to ride a bike
around campus
Personality characteristics Environmentalist, time Environmentalist, frugal
saver

Behaviorally
Occasions Students who ride their Workdays
bikes to class/around
campus
Benefits Students don’t need to Don’t need a car, save
bring chains/locks. By gas & insurance, healthy
purchasing subscriptions, to cycle
 bikes are more safe and
easy to access via an app.
User Status
Usage rate 5 days a week 5 days a week
Loyalty status

Lifestyle

Benefits
Perceived/Desired