Chapter 8: Segmenting and Targeting Markets

Understanding the bases for segmenting consumer markets is vital in preventing declines in sales and missed profit opportunities. In today's blog, I want to discuss several ways markets are segmented and how MillerCoors and other organizations in the beer crafting industry uses it to produce different customer responses.

What's market segmentation mean anyway?

Market segmentation divides the market (people with wants or needs interested in a product) into segments based on characteristics of individuals or organizations. Geographically, Blue Moon Brewing Company segments its market according to climate- in Colorado, its consumers at home are more likely to buy beer from consumers out of state because how readily availiable it is. The company knows its easier to sell its products to consumers at home than in other areas throughout the region because of the reduction in distribution cost. Consumers can buy it at where its made and fulfill customer needs more where its brewing center is located. Geographic segmentation is just segmenting targets according to region, country or climate.

Demographic segmentation segments the market according to age, gender, ethnic background, and/or income. Millenials have become craft beer's rising age demographic. According to an article by craftbeerbusiness.com,  Mintel reported 49% of craft beer appeal to millenials, 41% to Gen Xers, and 29% of baby boomers. Psychodemographic segments market in terms of personality, motives, and lifestyle. 77% of consumers who drink Blue Moon Beer, are avid sports fans and the 37% make up beer enthusiast. Blue Moon Beer compliments consumers beliefs on conserving a healthy environment by using natural ingredients for consumers of its beers who are conscious about the effects on the environment. Which also includes a benefit segmentation- segmenting market on the basis of benefits they seek from the product. Most beer drinkers want the benefit of a fun experience while others want to have a good lifestyle. Blue Moon Brewing Company's "artfully crafted" ad campaign focuses on its segment market by documenting people with interesting lifestyles consumers associate themselves with.