Entrepreneurship Market Segmentation â€Free Samples For Students

Question: Discuss About The Entrepreneurship Market Segmentation? Answer: Introducation The organizations ahs to identify existing wealth distribution in North Islands Northern territory of New Zealand prior to the income distribution. In order ensure better profitability the company has to evaluate the net worth of average household before investing money on the selected market (Fagereng et al. 2016). The necessary information related to economic stability, poverty or inequality of the region can be gathered from the Northern Territory government. The average house hold income of the Northern Territorys household reflects the socio economic condition of the country. Gini Coefficient could also be implemented by the organization to get information related to the areas wealth distribution (Hoeller et al. 2014). The Gini Index or Gini Coefficient is the process of measuring statistical dispersion that represents the inhabitants wealth distribution. The income percentage of the people of Northern Territory will be carried out against the cumulative income share. This proce ss is effective in measuring the distribution inequality. The result is expressed as the ratio between o and 1. The index works between the perfect equality line and perfect inequality line. The Lorenz Curve between the two lines indicates the coefficient. The higher coefficient highlights high unequal distribution. The Coefficient can be measured through the formula: Gini Coefficient = A/A+B. A represents the Lorez Curve and B is the area below the Lorez Curve. Line of equality is achieved when A is 0 and the more value A possesses, the more unequal the income distribution is (Bakare 2012). New Zealand generally score low in Gini Coefficient which represents low level of inequality. However, some scholars believe that Gini Coefficient fails to assess the data explicitly (Mori, Nakata and Kaneda 2015). Here the Gamma Distribution application is useful to measure the pattern of income distribution. There are parametric and non parametric estimation processes of income distribution. T he Gamma Distribution mixture can be used to overcome the issues of inflexibility. If such methods are used effectively the estimation could be successful which will help the company to invest the right amount in the right place. (Source: Stats.govt.nz 2015) A company like Ananas Anam could invest on starting a new business in New Zealand (Ananas-anam.com 2017). Their new revolutionary product Pinatex can consider entering into the Northern Territory. The income inequality is low in the area and high per capita income shows the countrys huge economic growth (OECD 2017). The consumer behavior of New Zealand can work in favor of the business of new product like Pinatex (Nielsen.com 2015). Majority of the citizens can afford expensive products. New Zealand has low unemployment rate that indicates positive future financial market for the company (Stats.govt.nz 2017). The Pinatex product is based on Pineapple fibre and the harvesting of pineapple in the Northern Territory is growing so it adds to the companys advantages for doing business in the selected region. Comparison of market segmentation: Treasury Wine Estates, Woolworths and Coles Supermarkets Marketing segmentation is considered to an important part of organizational marketing strategies. Through the market segmentation the companies divide their target markets in various segments based on their characteristics, needs and consumer habits. Here for evaluating the market segmentation the three selected companies are Treasury Wine Estates, Woolworths and Coles Supermarkets. Treasury Wine Estates offers a range of premium wines formulated in their vineyards of 9000 hectares (Treasury Wine Estates 2017). The route to market model has been followed by the company to attract maximum segments of the consumers. Though they are trying to catch all the customer segments but children, younger millennial and sick elderly people are excluded. More than 70 brands of wine are distributed almost 30 million cases every day. 3500 employees of the company actively participate in the corporate social responsibility practice where community engagement and consumer satisfaction are encouraged. Woolsworth is a supermarket chain that offers various products from grocery to alcohol. They target every possible consumer group in of the market through their huge range of products. The company has market capital of 26 billion (Woolworths.com.au 2017). The company offers products for infants to elderly people which made them one of the biggest retailers in the world. The company contributes significantly in the country economy. The company claims to offer fresh and healthy food to the citizens, which gained it more profit than its competitors. It has generated 59 billion dollar of revenue in 2016 (Woolworths.com.au 2017). The marketing elements are focused on the price, place, product and promotion to decide their market segmentation. Woolsworth offers easily accessible quality products. The consumer satisfaction is always prioritized by the company like during recession they provided the customer with cost effective products. All mediums are used by the company to promote their a ctivities. They also offer discounts and other offers which help it to maintain its sustainable consumer base. Coles Supermarkets also targets the whole of the consumers instead of segments. This is Wesfarmers owned popular super market chain in Australia. The company offers food, safety equipments to alcohol. The Companys acquisition of other brands has enhanced their business methods. There are almost 100000 employees working in the organization serving millions of consumers. The company has generated revenue of 33 million in 2016 (Coles.com.au 2017). By evaluating the market segmentation of the three companies, they can be ranked as following: Rank of the Organization Name of the organization. 1st Woolworths 2nd Coles Supermarkets 3rd Treasury Wine Estates Limited The Treasury Wine Estate should focus more on expanding their consumers. They must invest of effective promotion to attract the millennial and high income citizens. As they focus on their premium services, this strategy will enhance their high end consumers who will avail more of their premium services. Coles supermarket and Woolsworth target full consumer section so they should increase their production line. They can implement reverse integration process in developing new products. The production cost should be minimized and cheaper products should be offered in order to increase their target consumers Reference Bakare, A.S., 2012. Measuring the income inequality in Nigeria: the Lorenz Curve and Gini co-efficient approach.American journal of economics,2(1), pp.47-52. Coles.com.au. (2017). [online] Available at: https://www.coles.com.au/ [Accessed 28 Aug. 2017]. Employment and unemployment. (2017).Stats.govt.nz. Retrieved 27 August 2017, from https://www.stats.govt.nz/browse_for_stats/income-and-work/employment_and_unemployment.aspx Fagereng, A., Guiso, L., Malacrino, D. and Pistaferri, L., 2016. Heterogeneity in returns to wealth and the measurement of wealth inequality.The American Economic Review,106(5), pp.651-655. Hoeller, P., Joumard, I., Pisu, M. and Bloch, D., 2014. Mapping income inequality across the OECD.Income Inequality in OECD Countries: What are the Drivers and Policy Options. Introducing Piatex - ananas anam. (2017).ananas anam. Retrieved 27 August 2017, from https://www.ananas-anam.com/pinatex/ Mori, S., Nakata, D. and Kaneda, T., 2015. An Application of Gamma Distribution to the Income Distribution and the Estimation of Potential Food Demand Functions.Modern Economy,6(09), p.1001. New Zealand - OECD Data. (2017).theOECD. Retrieved 27 August 2017, from https://data.oecd.org/new-zealand.htm The Changing NZ Consumer. (2015).Nielsen.com. Retrieved 27 August 2017, from https://www.nielsen.com/nz/en/insights/news/2015/the-changing-nz-consumer.html Tweglobal.com. (2017).Home - Treasury Wine Estates. [online] Available at: https://www.tweglobal.com/ [Accessed 28 Aug. 2017]. Woolworths.com.au. (2017). [online] Available at: https://www.woolworths.com.au/ [Accessed 28 Aug. 2017].