MARK2IM ASSIGNMENT

PRINCIPLE OF MARKETING (UNIVERSITY OF KWAZULU-NATAL)

GROUP MEMBERS

Thobeka Khumalo 221056976

Asiphe Magubane 222106668
Amahle Zondi 223096774
Siphumelele Khoza 220087010

[DATE]
[COMPANY NAME]
[Company address]
v TABLE OF CONTENTS

A. INTRODUCTION………………………………2

B. BODY………………………………………………3
o What is Market Segmentation and Target
Marketing?.............................................................
.............3

o The Importance or Benefits of Segmenting

and
Targeting Markets for Firms………………...
……………8

o Market Segmentation Strategies for

FUTURELIFE®
South Africa………………………………………...10

o Targeting strategies for FUTURELIFE® South

Africa………………………………………...………13

o Discussion on the various recommendations

for
Improvement that would benefit FUTURELIFE
South
Africa and boost the company’s
resilience…………....14

C) Conclusion………………………………………….…
D) References……………………………………….……
18

E) Turnitin Report……………………………………
19
F)
Declaration……………………………………………...20
 INTRODUCTION

Marketing is an important part of business because it involves communicating the

value of your product or service to your customers. It is a useful tool for companies
to create value, generate revenue and maintain competitive advantage in a rapidly
evolving and dynamic environment. This process includes a variety of activities such
as market research, marketing, and promotion, all aimed at increasing the perception
and benefits the company offers. Understanding your target market's needs and
wants, crafting compelling messages, and utilizing a variety of media to reach and
engage with consumers—as well as search engines to engage with them in novel
and efficient ways—are all necessary for effective marketing. Without marketing, it
would be very difficult to establish your product or brand, which makes it difficult to
establish the value of your good or service. The four Ps of marketing mix—product,
price, promotion, and place—are important components of creating a customer-
driven marketing strategy.

Additionally, marketing plays an important role in building loyalty and promoting

products by establishing a strong brand and position in the market, companies can
differentiate themselves from their competitors and develop loyal customers.
Through marketing campaigns and activities, companies can increase brand
awareness, improve customer awareness and ultimately influence purchasing
decisions. Effective marketing effort increases customer satisfaction and
development long-term relationship with customres.
QUESTION ONE

MARKET SEGMENTATION AND TARGETING

Market segmentation is the practice of breaking a diverse market into smaller, more
homogeneous groups of consumers that share common needs, wants, or traits. In
contrast, target marketing entails picking one or more segments to pursue with
targeted marketing methods,products, or services. It’s about focusing resources and
efforts on the segments that offer the greatest potential for success.

There are several bases for segmenting markets, each of which provides a different
perspective on how consumers can be grouped:

Demographic Segmentation

This entails segmenting the market according to factors such as age, gender,
income, education, occupation, marital status, family size, ethnicity, and nationality
(Shinde, 2016). McDonald’s, for example, tailors its menu items and advertising
campaigns to specific age groups. They offer Happy Meals for kids and coffee deals
for adults.

Psychographic Segmentation

This segmentation is based on psychological traits, lifestyles, values, attitudes,

interests, and behaviours. (Wang 2019),Companies like Apple segment their market
based on lifestyle and values, targeting consumers who prioritize innovation, design,
and premium products.

Behavioural Segmentation

This entails categorizing consumers based on their behavior, such as usage rate,
loyalty, benefits sought, occasion, and willingness to buy. Airlines, for example, use
frequent flyer programs to reward loyal consumers and encourage repeat purchases
(Susilo, 2016).
Geographic Segmentation

The market is segmented based on geographic units such as area, country, city size,
climate, population density, and cultural preferences. Coca-Cola tailors its marketing
strategy and product offers to local tastes and preferences in various countries (Chu,
2020). For example, they provide multiple flavours and package sizes based on
regional tastes.

Technographic Segmentation

This segmentation is based on consumers’ technology behaviors, such as device

use, internet behavior, and preferred communication methods. For example, social
media sites such as Facebook and Instagram enable advertisers to target
consumers based on their online activity and interests.

Company Level Segmentation

Demographic and firmographic segmentation are identical ideas. This strategy

focuses on organizations rather than individuals, taking into account aspects such as
personnel count, client base, region, and annual income. A corporate software
vendor may provide a more flexible suite to a multinational organization while
offering a fixed-price bundle to smaller firms. Geographic segmentation. Geographic
segmentation is a subset of demographics.

Targeting techniques entail assessing the desirability of each segment and choosing
one or more segments to serve. Some frequent targeting strategies are:

Undifferentiated Marketing

This method entails ignoring segment distinctions and providing a uniform marketing
mix to the whole market. It is better suited to homogeneous markets with comparable
demands and wants. For example, (Boenigk 2017), basic commodities such as salt
and sugar are marketed without difference.

Differentiated Marketing

This method entails targeting many market segments with distinct marketing
strategies customized to each segment’s demands and preferences (Jiang, 2016).
Automobile manufacturers, such as Toyota, offer a variety of models aimed at
different sectors depending on price, features, and usage.

Concentrated Marketing

This strategy involves concentrating. On one or a few select segments with

specialized marketing efforts. It’s suitable for small firms with limited resources or
when a segment is particularly lucrative. For example,(Larkin, 2019) luxury watch
brands like Rolex target a niche market of affluent consumers who value
craftsmanship and exclusivity.

Micromarketing

This strategy involves tailoring products and marketing programs to suit the
individual needs and preferences of customers. It’s made possible by advances in
technology and data analytics, allowing companies to personalize offerings on a
large scale( (Grinstein, 2017). For example, Amazon uses data-driven algorithms to
recommend products based on individual browsing and purchase history.

To summarize, market segmentation and targeted marketing are critical tactics for
firms to efficiently reach and delight their customers. Understanding the unique
demands and preferences of various consumer groups allows businesses to
customize their goods and marketing activities to enhance customer happiness and
profitability. National and international examples show how organizations from many
industries use segmentation and targeting methods to succeed in distinct markets.

QUESTION 2
THE BENEFITS OF TARGETING AND SEGMENTING MARKET FOR
FIRMS

Imagine reaching out to every person with an identical message and goods to offer
them. It will only lead to a waste of money and poor results. Businesses can
concentrate their efforts on client groups with unique requirements and preferences
by segmenting and targeting markets(Andaleeb,2016). Segmentation is referred as
the cornerstone for positioning, targeting customers, and advertising to improve
customer relationship value. There are many benefits to this strategy:

IMPROVED CUSTOMER UNDERSTANDING:

Through market segmentation, businesses can divide large, unmanageable markets

into more manageable, smaller groups that share certain attributes. These factors
may include psychographics (values, hobbies, lifestyles), behavioural patterns
(buying behaviours, brand loyalty), demographics (age, income, region), or even the
needs and advantages needed(Andaleeb,2016). Businesses can more effectively
adjust their offerings and communications by gaining important customer insights
from comprehending these various segments. Consider Amazon, which uses
segmentation effectively. Using information from their browsing and previous
purchases, they provide each customer individualized product recommendations.
This targeted approach strengthens client connections and promotes repeat
business.

• INCREASE MARKETING EFFECTIVENESS:

Limited resources exist. Segmentation allows organizations to allocate their

marketing money strategically. They can customize messages, select relevant
distribution channels (such as email marketing or social media platforms) for various
consumer categories, and save money by avoiding campaigns that might not be
appealing to certain customer segments(Leisch et al,2018).
BETTER SALES and ROI:

It's just that targeted marketing is more effective. Businesses can create messages
that are captivating and resonate with the unique demands and pain points of each
group by understanding what motivates them. Better return on investment (ROI) and
increased conversion rates are the results of this focused strategy. A luxury car
company like Bentley, for example, wouldn't place advertisements in low-cost travel
publications(Leisch et al,2018). They would concentrate their marketing efforts on
upscale periodicals and private events because their target market consists of well-
off people with a penchant for luxury.

NATIONAL and INTERNATIONAL EXAMPLES

•CARS:Andaleeb(2016) highlights that segmentation is heavily used in the worldwide
automotive industry. Budgetconscious consumers are the target market for value-
conscious manufacturers like Hyundai, while rich purchasers seeking performance
and status are the focus of luxury automakers like Mercedes-Benz.

• TRAVEL: Based on preferences and demography, travel agencies divide up their

markets. They provide family-friendly packages for one group, low-cost backpacking
trips for another, and opulent adventure tours for still another(Leisch et al,2018).

• FAST-MOVING CONSUMER GOODS (FMCG): Andaleeb(2016)consider a

common home item like laundry detergent. Businesses such as Procter & Gamble
may provide a high-performance stain remover for one market, an eco-friendly
alternative for another, and a fragrance-free,babysafe version for a sustainability-
focused market.

• GLOBAL EXAMPLE: USA's Patagonia: Patagonia, an outdoor wear manufacturer,

is wellknown for its dedication to environmental activism. Customers who share their
values are particularly attuned to their marketing, which cultivates a devoted and
active consumer base. Targeting and segmenting are ongoing processes.
Businesses must constantly improve their segmentation methods in response to
shifting consumer preferences and market changes. Through successful market
segmentation and ongoing consumer focus, companies can gain a sizable
competitive edge(Leisch et al,2018).

QUESTION 3

THE MARKET SEGMENTATION THAT ARE EMPLOYED BY THE FUTURELIFE

SOUTH AFRICA

Futurelife South Africa, a health company based in South Africa uses a market
segmentation strategy that has proven very successful in targeting specific
consumer groups. Market segmentation is the process of separating the market
between customers with various needs and characteristics such as behaviours. To
adapt its product and marketing strategies to the specific needs of each segment, it
has identified different segments on the healthy food market, those market
segmentation includes Geographic, Demographic, Psychological and Behavioural
segmentation. (Cortez, 2021)

BEHAVIOURAL SEGMENTATION

Behavioural segmentation differentiates the market or consumers according to their

knowledge or attitude towards the product or response to a product. Futurelife’s main
aim is to provide health-conscious people looking for convenient nutritious meals
with convenient products. It is best suitable for health-conscious people because its
high in Dietary fibre, Omega-3 fatty acids, carbohydrates and energy, presuming a
sustained energy for a long run. Futurelife offers a variety of products related to this
segment, including meal replacement like kids’ oats cereal bits, bran flakes and
barley, protein shakes like pouch meal, and energy bars like high energy smart bar,
protein bar, etc. Formulated to provide compete nutrition, the products are marketed
as a convenient solution for busy people who want to maintain a healthy lifestyle.
(Naim, 2023)

PYSCHOLOGICAL SEGMENTATION

Based on social class, lifestyle or personality characteristics, the market is divided

according to psychological segmentation. Futurelife’s primary group is athletes and
fitness enthusiasts who are looking for nutrition that supports their lifestyle which is
part of consumer lifestyle and social class. Futurelife presents products designed to
provide the energy needed for optimal performance. The product is sold with a
message that appeals to athletes and highlight the benefit of integrating futurelife
into their training like diabetes free and included vitamins such as vitamin C and D
also zinc, which encourages athletes and fitness enthusiasts to intake it.

DEMOGRAPHIC SEGMENTATION

Demographic characteristics such as age, family, life-cycle stage, gender, and

generation are used for segmentation (Shine, 2016). Futurelife also focuses on
parents and guardians looking for the best options for their families, the company
offers a range of product that are suitable for children and adults, such as Futurelife
Tots Cereal Tropical is suitable for kids from one year and above, making it easier for
busy parents to provide their whole families with nutrition they need. Futurelife’s
packaging and marketing materials often feature images of families enjoying their
products together as part of the marketing strategy, it includes instruction on how to
prepare it and the best before dates which is a great appeal to parents who value
comfort and health.
GEOGRAPHIC SEGMENTATION

Geographic segmentation segments market into different factors such as nations,

religion, even towns. People’s religion and nation differentiate their preferences
influencing and differing their needs or wants (Griva, 2024). By understanding the
specific needs and preferences of customers in variety of places, Futurelife has been
able to adapt its products and marketing strategies to better suit community. For
example, in coastal religions where the demand for outdoor activities and sports is
high, futurelife has launched campaigns and produced special products to reach the
target audience. This approach has enabled Futurelife to successfully penetrate
various markets and build a strong customer value by producing products that suit
local demographics, in the company’s sales and growth in the geographical area,
this has played a supporting role.

Futurelife also differentiates its products with equity and innovation, the company
works closely with nutritionists and food scientists to develop product that are not
nutritious, but also delicious and convenient. It continuously invests in research and
development to bring new and innovative products to the markets, ensuring that they
keep pace with competitors and meet the growing needs of their units. Overall,
futurelife’s market segmentation strategy has been effective in capturing different
consumer groups in the health food market. The company was able to differentiate
itself and create loyal consumers create loyal customers by identifying and targeting
a specific group of consumers with special products and promotional material. Its
commitment to quality, innovation and meeting the unique requirements of their
customers has transformed Futurelife in the competitive health food industry and
positions for continued sustainability.

QUESTION 4
TARGETING STRATEGIES EMPLOYED BY FUTURELIFE
SOUTH AFRICA

Future life SA used a variety of targeting techniques to expand their clientele, build
their business, and—above all—connect with individuals from all walks of life,
particularly the impoverished. The Future Life team set out to provide quick cuisine
that would benefit the underprivileged without breaking the bank. Over time, the
future has changed, giving rise to new theories on nutrition, motivating people to lead
healthier lives and making healthy eating seem stylish. Future Life has employed
segmentation, demographic, and geographic targeting techniques over the years.

The future life was divided into groups according to lifestyle, age, profession, and
income to suit a variety of people. Since they offer a variety of goods that are
appropriate for both adults and children. There are granola bars, cereals in four
delectable flavours, smoothies, you name it. Due to its ease of preparation and time-
saving nature, cereals may be particularly appealing to baby boomers and
millennials. Sportsmen and exercisers are the main consumers of the incredibly
healthful snack bars and shakes. These goods include proteins and carbs, which the
body's muscles require. The study discovered that snacking (eating granola bars,
etc.) had taken the place of meals for millennials.

It is intended for consumption by expectant mothers as well. According to what is

said, nutrients are present in future life. Not only is it a nutritious substance, but
when you consume it, you're also providing your kid with a well-balanced diet. It also
helps by providing you and the baby with all the nutrients they require when
breastfeeding. It's also easier on you because they come in little sachets.

Additionally, they introduced food delivery services that allow customers to order
things from the convenience of their own homes. People who wish to buy this
product will find it easier because of not having to wait in line, as some are balancing
work and children. They won't have to waste time going to the store only to discover
that something is done, and there are also no difficulties. Given that some members
of this generation are too busy or unable to shop alone, baby boomers and
millennials make up an ideal target demographic.

Introducing new markets to the same people was the main goal of the marketing
approach. Future life had a vision of giving the impoverished a balanced diet and a
healthy cereal because they couldn't afford to buy different foods that their bodies
needed. We all know how essential breakfast is and how it may make you feel fuller
for longer. Imagine that because the market has grown to this extent, people can
carry sachets everywhere they go, ensuring that no one skips breakfast. Nutritious
shakes, granola bars, and shakes that promote muscular growth are also available.
QUESTION 5

RECOMMENDED IMPROVEMENTS THAT WOULD BENEFIT

FUTURELIFE SOUTH AFRICA AND BOOST THE COMPANY
RESILIENCE

INVESTING IN RESEARCH AND DEVELOPMENT

Mandojana et al (2016) states that continuously expanding and improving its goods
would be a huge benefit to FUTURELIFE® and increase its resilience.
FUTURELIFE® can guarantee that its products remain relevant and appealing to a
large spectrum of consumers by staying ahead of market developments and
consumer preferences. To draw in new clients and hold onto current ones, can mean
trying new flavours, ingredients, or packaging designs. Mandojana et al (2016)
Furthermore, funding R&D can help FUTURELIFE® maintain its competitiveness in
the crowded health and wellness sector, where differentiation via innovation is
essential. FUTURELIFE® may also benefit from broadening its distribution network
to reach a larger audience.

EXPANDING PRODUCT LINE

FutureLife® can reach a wider audience by expanding their product line through
traditional retail locations as well as online channels. This may contribute to the
expansion of their customers and raise awareness of their brand, which in turn may
boost income and sales((Mandojana et al,2016). By lowering dependency on any
one market or channel, increasing distribution channels can help strengthen the
brand's resilience and guarantee that FUTURELIFE® can withstand any changes or
interruptions in the sector(Mandojana et al,2016).

INTERVENTION TO CORPORATE SOCIAL RESPONSIBILITY (CSI)

In the long run, FUTURELIFE®'s resilience can also be increased by emphasizing
sustainability and corporate social responsibility. Through the integration of
sustainable practices into their operations, such as waste reduction, ethical sourcing,
and community assistance, FUTURELIFE® can bolster its brand recognition and
attract socially conscious customers. As more customers search for businesses that
share their values, this helps foster trust and brand loyalty. Furthermore, investing in
sustainability helps protect FUTURELIFE® from any legislative changes or
environmental issues, assuring their long-term success in an ever-changing market.

CONCLUSION

To summarize, marketing segmentation and target marketing are critical tactics for
organizations to efficiently reach their intended audience. Market segmentation
enables businesses to identify and understand different client segments, allowing
them to customize their marketing efforts accordingly. Targeting techniques entail
identifying the most profitable categories and creating tailored marketing efforts to
appeal to them. Businesses that use these methods effectively can improve
customer happiness, increase sales, and ultimately meet their marketing goals.To
summarize, marketing segmentation and target marketing are critical tactics for
organizations to efficiently reach their intended audience. Market segmentation
enables businesses to identify and understand different client segments, allowing
them to customize their marketing efforts accordingly. Targeting techniques entail
identifying the most profitable categories and creating tailored marketing efforts to
appeal to them
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Griva, A., Zampou, E., Stavrou, V., Papakiriakopoulos, D. and Doukidis, G., 2024. A
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APPENDENCES

Image sourced from: https://images.app.goo.gl/2dQDf71EHKy6EC788.

 FACULTY OF MANAGEMENT STUDIES
SCHOOL OF MANAGEMENT, IT & GOVERNANCE (MIG)

Introduction to Marketing [MARK2IM]

Group Assignment: 2024
DECLARATION

We hereby declare that this assignment represents our own original effort and that we have
not plagiarised the work of anyone in completing it. We further declare that all group
members have made a fair and significant contribution to this project.
NAME & SURNAME REGISTRATION SIGNATURE OR
NUMBER INITIALS

STUDENT 1 Thobeka Khumalo 221056976

STUDENT 2 Asiphe Magubane 222106668

STUDENT 3 Amahle Zondi 223096774

STUDENT 4 Siphumelele Khoza 220087010

STUDENT 5

STUDENT 6

STUDENT 7

STUDENT 8

STUDENT 9
STUDENT 10