The document discusses market segmentation and how retailers can target different consumer groups. It focuses on segmentation of the adult female Generation Y market. Five distinct segments were identified: recreational discount seekers, recreational quality seekers, trend setting loyal, shopping and fashion uninterested, and confused time/money conserving. The segments differ in how they approach shopping based on factors like price sensitivity, brand loyalty, enjoyment of shopping, and confusion over product choices. Retailers can use this segmentation information to better target each group through tailored marketing, products, pricing, and in-store experiences.

1. Market Segmentation
Focus on article (Bakewell & Mitchell, 2003) about adult
female Generation Y consumer decision-making styles.
Who is Generation Y?
What is market segmentation?
Through market segmentation, companies divide large
heterogeneous markets into smaller segments that can be
reached more efficiently and effectively with products and
services that match their unique needs.” (Armstrong et al.,
2009, p192)
Why would a retailer use market segmentation to target
adult female Generation Y consumers?

2. Market Variables
Step 1
What are the
main variables
used in
segmenting a
customer
market?
• Benefits sought
• Brand loyalty
• User status
• Age
• Gender
• Income
• Education
• Social class
• Generation
• Interests
• Attitudes
• Values
• Activities
• Location
• Population
• Metropolitan
Geographic Psychographic
Behavioural
Demographic

3. Demographic age segments
 Demographic ages
• Born before 1946 “matures”
• Born between 1946 – 1964 “Baby boomers”
• Born between 1965 – 1976 “Generation X”
• Born after 1977 “Generation Y”
Generation X
1. Few shopping channels with restricted hours
2. Restricted credit
3. Less materialism
4. Advertisement and marketing received in
traditional forms
5. Less gender-role mixing
6. Traditional family unit
Generation Y
1. Many shopping channels and unrestricted
hours
2. Creative credit opportunities
3. Greater materialism
4. Advertisement and marketing received from
ever increasing sources
5. Greater gender-role blurring
6. Increased non-traditional family units
• Differences between age segments

4. Generation Y Women – Who
they are and why study them?
Sample chosen? Adult female Generation Y – specifically students aged between 18-22 years old
Why is this group of interest?
• Elaborates on previous studies (Sproles and Kendal (1986, cited by Bakewell & Mitchell, 2003, p100))
• Financially powerful group - $97.3billion spent by teenagers annually according to Ebenkamp (1999, cited by
Bakewell & Mitchell, 2003, p96)
• Important when defining marketing campaigns – Schew and Noble (2000, cited by Bakewell & Mitchell,
2003, p96) commented that “cohort generations are argued to share a common and distinct social character
shaped by their experiences through time”
• More freedom of choice compared to 6-17 year-olds – although Moschis and Cox (1989, cited by Bakewell &
Mitchell, 2003, p97) also commented that “childhood and adolescent years are crucial in acquiring shopping
orientations”
• Women & Men - “Women hold diametrically opposed values regarding effective shopping compared with men”
(Falk & Campbell, 1997, cited by Bakewell & Mitchell, 2003, p96)
"Age has been used to segment many consumer markets” (Tynman & Dayton, 1987, cited by
Jobber, 2010, p269)

5. Five segments identified within
Generation Y

6. What do these segments mean?
Recreational discount seekers
(16%)
•Looked upon as “bargain seekers”
• Likely to shop in bargain stores
• Less “brand conscious”
• Primarily concerned with getting value for
money
• Thrive on discounted/lower priced products
Agree with: “I buy as much as possible at
sale price”
Recreational quality
seekers (33%)
•Form the largest group of shoppers
• Enjoy the shopping experience
• Exert extra effort and detail in order
to obtain quality products
• Represent a degree of brand loyalty
• Not attracted by lower priced
products/discounted products
Disagree with: “I buy as much as
possible at sale price”

7. What do these segments mean?
Trend setting loyals
(14%)
•Fashion & style conscious
•Tendency to visit same stores/buy same
brands
•Price/value conscious
•Confused by over choice
•Believe brands do not have to be well
known to be a good choice
“I keep my wardrobe up-to-date with the
latest fashion”
Shopping and fashion uninterested
(16%)
•Confident shoppers
•Time and energy conserving
•Do not find shopping pleasurable
•Price and value conscious
•Have a tendency of buying lower priced products
“I normally shop quickly, buying the first
product or brand that seems good enough”
Confused, time/money conserving
(21%)
•Confused by abundance of information on products
•Careful how they spend their money
•Not drawn to more prestigious/higher priced stores &
brands
•Prefer lower prices to higher quality
•Spend little time deciding between options
“I get confused by all the information on different
products”
“I carefully watch what I spend”

8. How would a retailer target this age group
with the information provided?
Increase
leisure and
entertainment
High quality
brands
Product
educated
sales staff
Discounting
strategies
E commerce
• recreational quality seekers
• recreational discount seekers
•Shopping fashion uninterested
• trend setting loyal
• confused time/money conserving
Possible
improvements

9. Conclusion
 Main variables used to segment consumer markets are geographic, demographic,
psychographic & behavioural (Armstrong et al., 2009).
 Article studied (Bakewell & Mitchell, 2003) focuses on adult female Generation Y (aged 18-
22) and identified 5 distinct segments.
 The findings showed that many Generation Y shoppers:
– will show a recreational shopping style
– view shopping as a leisure pursuit or a social activity
– are likely to show a materialistic/opulent shopping style
– will show consumer confusion and/or behaviours to cope with over-choice – such as
apathy/brand loyalty
 Retailers can use the information here to plan their operations effectively – different
choices must be made based on the retailer’s target segment.
 Limitations: survey only sampled adult female students aged 18-22 who were buying
personal goods. Sample chosen also has higher % who enjoy shopping & pursue it as a
form of recreation compared to other groups.
"The danger is, however, that the more abstract the segments become, the less
easily understood they may become by those designing marketing strategies.“
(Wedel and Kamakura, 1999, cited by Brassington & Pettitt, 2007, p116)

10. Bibliography
 Armstrong, G., Kotler, P., Harker, M., and Brennan, R., 2009. Marketing an Introduction. Essex. Pearson
Education.
 Bakewell, C., and Mitchell, V. W., 2003. International Journal of Retail & Distribution Management,
Generation Y female consumer decision-making styles, 31 (2), p95-106.
 Brassington, F., and Pettitt, S., 2007. Essentials of Marketing. 2nd Edition. Essex. Pearson Education
 Craik, L., 1999. “The rebirth of cool” The guardian, 22 October, page10-11
 Goran Bergendahl ., 2002. investment in electronic commerce page3
 Groppel-Klein, A ., Thelen, E., and Antretler, C., 1999. “ The impact of shopping motives on store
assessment” European advances in consumer research, vol14, and page 1-3
 Jobber, D., 2010. Principles and Practices of Marketing. 6th Edition. Berkshire. McGraw-Hill Education.
 Jones, Ma., 1999. Entertaining shopping experience; an exploratory investigation” journal of retailing and
consumer services vol6 no3 page 129-139
 Kotler, P., and Armstrong, G., 2006. Principles of Marketing. New Jersey. Pearson Education.
 Patterson, ga., 1994. Malls draw shoppers with Ferris wheel and carousels. The wall street journal.

11. Group Activity
 5 Example Women
 What consumer segments do you think each woman
represents?
 What shopper/woman/person do you think each
brand is targeting?
 What could the brands do enhance their offering to
the women?

12. Mission Statements
Topshop - The TOPSHOP girl is style conscious, independent and addicted to fashion. She goes shopping
every week in pursuit of her latest fashion fix. A whole variety of people shop with us - TOPSHOP is
visited on a regular basis by industry insiders from home and abroad including stylists, top models and
musicians.
Dorothy Perkins - The Dorothy Perkins customer base is 18-60, with an average customer age of early
thirties. She likes to look fashionable and is interested in keeping up with the latest trends. However she
also has little time for herself and is always busy either working or with her children. She trusts Dorothy
Perkins to deliver styles that will suit her and give her outfit advice on how to put the latest look together.
Marks and Spencer – “Although we sell to everybody – big, small, young, black, white – our absolute target
market is a bit older and is comfortable with traditional media. They watch terrestrial telly more than
satellite telly, they read newspapers and when they drive around they look at billboards. They are not
spending hours on the internet," (Steve Sharp, M&S Marketing Director)
Gap - Gap, Inc. is a brand-builder. We create emotional connections with customers around the world through
inspiring product design, unique store experiences, and compelling marketing. Our purpose? Simply, to
make it easier for you to express your personal style throughout your life. We have more than 150,000
passionate, talented people around the world who help bring this purpose to life for our customers. Across
our company and embedded in our culture our key values that guide our success: integrity, respect, open-
mindedness, quality and balance. Everyday, we honor these values and exemplify our belief in doing our
business in a socially responsible way.
Primark - The mission of the Primark management and staff has been to supply quality clothing at prices
perceived to offer real value.

13. Lisa
Recreational Discount Seeker
What shopper/woman/person do you
think each brand is targeting?
Primark – offers a quality product at a low price
but also has a wide range of clothes. Lisa
is a student and likes a bargain to save
money.
Top Shop – offers a stylish look which is new
and exciting at a reasonable price also has
sales on for each seasons range. Lisa
likes styles that are different, Top Shop
has regular sales and she can get a
discount with her student card.
What could a retailer actually
do to enhance their offering to
each type of type of woman?
•Offer a student discount
•Advertise in Snapfax
•Have a wide variety of clothes at
good prices
•Make sure they have sales for
each seasons clothes
•Have a celebrity endorse some of
their clothes that students can
relate to e.g Fern Cotton wearing
something cool, new and exciting.

14. Sophie
Trend-Setting Loyal
What shopper/woman/person do you think
each brand is targeting?
Top shop – Target a style conscious, independent
and addicted to fashion girl, Sophie likes to
have at least 1 outfit of the latest style.
Primark – Offer quality clothing at prices perceived to
offer real value, Sophie usually buys the lower-
priced products but also likes to keep her
wardrobe up to date with changing fashion
trends
Gap – try to make it easier for you to express your
personal style throughout your life. Sophie likes
to buy her favourite brands every time she
shops, usually from the same stores and feels
it’s important to look stylish
What could a retailer actually
do to enhance their offering to
each type of type of woman?
•Keep all clothes/products up to date with
changing fashions.
•Targeting the same segment with new
fashions/styles, as Trend-setting loyal like
to go back to same stores.
•Keep prices low, as this segment does
not value the product by the price but by
the quality.
•Introducing new styles, as this segment
likes to have at least one outfit of the
newest style.

15. Alison
Shopping and Fashion Uninterested
What shopper/woman/person do you
think each brand is targeting?
Top shop – Target a style conscious, independent
and addicted to fashion girl, Alison show’s a
total lack of enthusiasm when making her
purchasing decisions, so instead she will look
for the first product that interest’s her instead of
shopping around to buy into the “latest trends”.
Marks and Spencer – Quality of clothing isn’t of great
importance, instead Alison will opt to purchase
the lower priced products.
Gap – try to make it easier for you to express your
personal style throughout your life. Alison has
no brand loyalty, or fashion style preference,
she hopes for an easy shopping experience in
order to make it as quick as possible.
What could a retailer actually do to enhance
their offering to each type of type of
woman?
Floor assistants to point the consumer in the
right direction for what they need
Limit queue’s as much as possible by
providing the necessary number of till
staff
Shopping and fashion uninterested do not
enjoy the shopping experience, and are
not fashion conscious so instead the
retailer should concentrate on providing
excellent customer service
Providing clothes at a reasonable value

16. Megane
Recreational Quality Seeker
What shopper/woman/person do you
think each brand is targeting?
Top shop – Target a style conscious, independent
and addicted to fashion girl, Megane feels being
fashionable and stylish is very important to her.
She isn’t overly attracted to discounts or
cheaper products, where Top shop is almost
seen as ‘middle of the road’ when it comes to
price comparison.
Marks and Spencer – Megane likes to make an extra
effort to buy the best quality and she doesn’t
mind spending a bit extra for these quality, well-
known products/brands.
Gap – try to make it easier for you to express your
personal style throughout your life. Megane
likes to buy her favourite brands every time she
shops, usually from the same stores and feels
it’s important to look stylish.
What could a retailer actually do to
enhance their offering to each type
of type of woman?
 Keep all clothes/products up to date with
changing fashions.
 Targeting the same segment with new
fashions/styles, as the Recreational Quality
Seeker like to go back to same stores.
 Recreational Quality Seekers enjoy shopping so
retailers should try and improve the leisure
experience included with shopping. (e.g. cafes,
nail extensions, etc)
 Supply a selection of prestigious brands and
emphasise the quality and fashion aspects of
their merchandise

17. Donna
Confused, Time/Money Conserving
What shopper/woman/person do you
think each brand is targeting?
PRIMARK
The mission of the Primark management and
staff has been to supply quality clothing
at prices perceived to offer real value, as
donna prefers to buy the lower priced
and not well known higher priced brands.
What could a retailer actually do to
enhance their offering to each type
of type of woman?
 clear and simple merchandise monetary
and economic information
 trained and/or fashion conscious sales
assistants
 simplified shop layout
 varied discounting strategies