Discuss about the Market Segmentation of Mattel Inc.
Mattel Inc. market segmentation:
Demographic: This segment of Mattel consists of gender, nationality and household size. The Mattel should target and advertise for both the group of genders and should consider the age till 14 years, as to introduce more new toys for this age group. The first age group of 0-3 years comprising of infants and toddlers, next is of age group 4-6 years comprising of pre-school children and last is age group of 7-13 comprising of school going kids (Wedel Kamakura, 2012). The primary school going kids segment can be targeted by introducing innovative toys. Moreover the company can also target other segment by developing learning toys to make them learn as well while playing.
Potential of current target market:
Mattel can find significant sales revenue targeting boys of age 6-11. It is a segment which is fascinated by world of television like fascination for superheroes toys. In this segment boys like watching video, novels related to superheroes, video games of superheroes and many more. So this segment can easily be targeted with current trend analysis and applying those trends in Mattel.
For targeting youngster girls Mattel created products of unconventional looking dolls, monster doll and many more. The girls of this age can be attracted by creating new types of monster doll, as Barbie has become very old. The monster doll instead proves very appealing to this age group and can easily be influenced by proper strategy and marketing (Patino, et al., 2012).
Psychographics: This segment will help Mattel to find out the lifestyle, personality traits and values of people. The above factors will be enabling Mattel to find out the needs and demands of family, trends in toy sector and many more. For instance if the families are active and keeps on going for outdoor activities will be targeted by Mattel preferably more than religious family (Andreiana, Stoica & Ivan, 2014). Moreover the modern family will purchase more frequently video games and toys for their kid’s then conservative family.
Mattel can target Australian mothers, grandparents and elders who want to give gift to children’s. These people buy toys for cherishing their kids. This segment can be targeted, as they keep on purchasing new and unique types of toys. The Mattel created new products like baby panda care, educational toys, religion toys and many more, which will attract this target group to compulsorily buy products from Mattel. The information will help Mattel to create promotions for company more practically, rather than guessing.
Geographic: As Mattel is a global company and located all over the world. Therefore the company can target other countries to introduce their product and become a famous brand in every possible country. The segmentation in geographic areas can be done Mattel through population in country, cities and many more (Goldberg, et al., 2015). Then after deciding segment company should focus on best way like regional retail stores to introduce Mattel’s product. The Mattel should create speaking toys in regional language of Australia to attract new segments easily.
Mattel can target youngster’s audiences in Australia’s school and college who are very much attracted towards science and chemistry. This can be targeted by identifying these individuals through various sources and can enable them to purchase Mattel new products of learning while playing in science and chemistry. This will not only enhance learning of students but will increase Mattel image as well in versatility of products. The Mattel can also create new target market according to geographic requirements of country. The requirement and demands should be pre-analysed for doing the segment. If Mattel is choosing some region to enter like rural where low income groups are not in reach of Mattel. Then it can be targeted by creating and developing low cost and durable product enabling rural people as well to purchase the toys of company. The company should be looking for densely populated area in which toys can be easily sold and produced with ease.
Behavioral characteristics: This segment focuses mainly on occasion and usage of products. As Mattel is large organisation, so this segment plays significant role in designing and implementing marketing plans for company. The occasions like birthdays of kids, Christmas and many more is very important for parents (Sulekha & Mor, 2014). This segment also considers the usage of product. The usage can be defined like purchasing group is regular user of product. As in case of toys usage will be considered by frequency of purchase by customers, as this will help Mattel to divide its customers in segment of regular or irregular purchaser. This segmentation will help customers as well as frequent purchasers will be given more preference and offers rather than irregular shoppers.
Purchasing on events is the primary type of behavioral division. Items, for example, chocolates and premium toys will gifted on celebrations. Toys stores like Mattel will offer when there is a party. In this way these items are for the most part focused by behavioral segmentation.
The best case of focusing on a conduct of purchasing on events is birthday’s cards, welcoming cards, occasion cards for all events. The essential targeting of cards and gifts was that be it any event, customers will locate the correct and apt card for the event. In this manner Mattel have the ideal alternative to convey what is the demand in the market.
Assessment of STP:
The Mattel Inc can use the target market by using appropriate strategies
Psychographic characteristics: Targeting this segment Mattel can appeal more precisely to inspirations through social media, which increase adaptation rate. This segment can be reached by using a proper means of media like television, discount offers, and many more schemes through which the family, mothers and many more will be compelled to buy the toys for children (Veloso & Campomar, 2012). The Mattel can use latest trend and launch its fashionable product which will allure not only young girls but their families as well. This can be done by opening fashion outlets for girls showing trendy toys and products.
Demographic and geographic: The target market set by Mattel will be profitable as teenagers and young boys require new toys according to market. Mattel entering to the target market not only enhance the revenue but as well will be able to increase the demand among children’s. The market decided can be targeted through promotion, marketing, demonstration and many more in places where this age group can easily be reached. For instance Mattel can do promotional activity in parks, T.V, schools and many more places to attract children’s to purchase Mattel’s newly launched toys.
Behavioural characteristics: The behavioural segment can be targeted by Mattel through special discounts, offers, gifts and many more on occasions so that target group like family, parents and relatives would prefer buying toys and gifts from Mattel rather than any other brand. Moreover to retain these customers in long run Mattel should give special benefits to loyal customers.
Andreiana, V. A., Stoica, C. G., and Ivan, C. D. (2014). Influence Of Marketing Environment On The Toy Market. SEA-Practical Application of Science, (2), 48-54.
Goldberg, R., Peiss, Kathy, Licht, Walter, Serlin, David, & Sugrue, Thomas. (2015). Children's Toys, Social Change, and the Business of Culture in the United States during the 1960s and 1970s, ProQuest Dissertations and Theses.
Patino, A., Kaltcheva, V. D., Lingelbach, D., & Pitta, D. A. (2012). Segmenting the toy industry: a study of pre-teen Millennials. Journal of Consumer Marketing, 29(2), 156-162.
Sulekha, O., & Mor, K. (2014). Market segmentation in the age of diversity: A necessity of marketers. European Journal of Business and Management, 6(14), 181-183.
Veloso, A. R., & Campomar, M. C. (2012). Segmentation and Positioning in the Brazilian Kids Market: A Case Study on the Bottom of the Pyramid. Revista Administração em Diálogo-RAD, 14(1).
Wedel, M., & Kamakura, W. A. (2012). Market segmentation: Conceptual and methodological foundations (Vol. 8). Springer Science & Business Media.