This report will describe a new segment for the cooking school institute, William Angliss. This new segment will be international students because the growth of international students studying in Australia is increasing, especially male students in age 18-24 which are between medium and high economic class. Needed to know, the courses fees are not very cheap. Male students, who want to join this course, should be an independent people. They try to live by themselves and tend to learn to cook healthy food because William Angliss Institute will teach basic knowledge of cooking healthy food. This development of the new segment is based on various statistics and also journal articles related to marketing and segmentation. This new segment will make the company’s segment broader and expectantly make the company be the market leader for cooking school institutes.
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The purpose of this report is to present a new segment for the cooking school institute, named "William Angliss Institute". The new segment will be an addition to the existing segment in the company.
The main scope for this report is the men cooking course, named “He Cooks” of the company and the development of the new segment for the products.
The method use to define this new segment is the secondary data, such as by doing a market research from the existing statistic and the journal articles to maximize the identification of the new segment.
The writer realized that there are limitations on this report for the new segmentation. There are limitations on our access to the internet; number of words, and due time.
It is assumed that the reader is the marketing manager of the company and he or she knows about the company. The data in this report is up to date, accurate, and reliable. Hopefully, this new segment will increase the company’s segment, from just mature men to male students. It is assumed that this new segment increases the company’s profits.
The background of the report is I am the junior marketing for the company and should present this report. The new target segment is international male students, which are good segment and profitable.
2.1. Overview of Segmentation
Segmentation Market segmentation is the process of using the different characteristic to classify the market and split them into certain groups which require separate products. Market segmentation leads to the market targeting and market positioning. According to Kotler (1997), there are various kinds of customers who have diverse buying requirements. These diversions can be homogenized with the segmentation to improve organisational performance in the company by also targeting specific segments of the market. Segmentation also assist organisation effectively by creating an excellent understanding of customers and competitors in financial and other resources’ allocation. Hence, confrontations with competitors are reduced and marketing programmes are calculated appropriately (Mcdonald and Dunbar, 1995). Consumer markets should be divided according to four variables. The first one is geographic variable which means dividing the market into different geographical units such as local town, region, country, states, municipalities, neighbourhood, cities, as a whole (Minhas, 1996). The second variable is demographic variable. It is based on age, gender, income, education, etc, which clarify the characteristic of the segment and the key factors (Lin, 2002). In spite of these variables are easily provided (Rowley, 2000), they are not able to identify the whole characteristics of the segment, because people with the same demographic condition, have different psychographic condition. In psychographic segmentation, buyers are divided into different groups based on socioeconomic status, lifestyle or personality characteristics (Rowley, 2000). Moreover, when market is divided into groups based on their knowledge of the product, their attitude towards it, the way the use it and they way they respond to it, the market is segmented using the behavioural segmentation (Kotler, Brown, Adam, Burton, Amstrong, 2007). According to Goller, Hogg, Kalafatis (2002), there are four steps to do effective market segmentation. They are finding the bases of the market they want to segment by doing some researches, evaluating the segmentation based on the effectiveness, implementing the market segment by combining the strategy information and resources allocation, and controlling of the segment by looking at the stability of the segment presently.
2.2. Define Market
The set of actual and potential buyers of products” (Kotler., et al, 2007). According to Gobatt (2003), there are three manners defining market. Organisationally defined market is defining market based on the types of sold products by the company. When defining market is based on customers’ background and the way the company sell the products, they are identified by customer defined market and exchange defined market, respectively.
2.2.1. Existing Customer
William Angliss Institute is one of the famous cooking schools in Australia. This institute has a lot of different classes of customers, such as for international students, pregnant women, and new wife, etc. Also, it has a special class for men who want to impress friends, improve health, save money, or get their mind off the stress of work. This institute has been making new segments according to the different circumstances. Overall, the William Angliss institute has great numbers of customers. (http://www.angliss.vic.edu.au/). The new customers segment of the company is the international student, especially male student studying in Australia.
According to William Angliss’ site, there are some competitors in this kind of company, such as Luscious Affair, Le Cordon Bleu, and James St Cooking School. All of them segment the similar customer markets as William Angliss Institute does. For instance, there are course for husbands or males, beginning class, cookies class, and international students as well. However, the approach of every company is different, depends on their styles and characteristics. (http://www.angliss.vic.edu.au/)
2.2.3. Potential Customer
Commonly, students studying in Australia are the potential customers for the William Angliss Institute. However, it is expected for this institute to reach the better prospect towards the products and the result of the most potential customers for the company are international students, especially males, in age 18-24.
According to Dibb, 1998, by categorizing customers into groups with similar characteristics, the serve can be enhanced which means it is good to keep maintaining the existing customers. Nevertheless, the better way to reach the goal efficiently is focusing in the potential customers. As known, most of international students live by their own in apartments (62%). The rest of students join the homestay and live in their houses, 28% and 10% respectively (http://www.abs.gov.au/). Thus, most of the students have just a little basic knowledge about cooking for themselves. Therefore, William Angliss institute will launch a class for them, which is not only suitable for the students, but also profitable for the company.
2.3. Segmenting Market
The endeavor to satisfy each targets’ needs and wants can be simply accomplished, by distinguish a market into a numerous of homogeneous groups (Lin, 2002).
2.3.1. Demographic Variable
Demographic Typical Breakdown Occupation Students Age 18-24 years old Gender Male Income below A$3000 Demographic variable has identified as the most general variable that is used to segment a market (FitzGerald et al., 1996). William Angliss Institute uses some of demographic variables to create new segment, one of them is the limitation of the age (18-24). The company also apply the gender and income of the international students, which are male students and gain amount of money below A$3000.
2.3.2. Psychographic Variable
Psychographic Typical Breakdown Socioeconomic Status Medium and High Class Personality Independent Many marketers believe that these variables are the most suitable variables for segmenting the markets (Lin, 2002). For instance, people with the same socioeconomic status will have the similar buying decision of some products, such as cars, clothing, etc. Besides, enterprises making different consumer goods, can seek marketing opportunities in lifestyle and personality segmentation (Kim, 1993). William Angliss Institute targets the medium and high class students because the courses fees are not cheap. Also, the company automatically obtain the independent personality students for the courses who care their own life by cooking healthy food.
2.3.3. Behavioural Variable
Behavioural Typical Breakdown Purchase Occasion Christmas Course Benefit Sought Knowledge about how to cook This kind of segmentation tends to look at the relationship of individual with the product. According to Rowley (2000), buyer readiness, benefit sought, and end use are some variables which give effects to behavioural segmentation. Approaching Christmas celebration, William Angliss Institute establish a special occasion cooking course named Christmas Course. On the other hands, related to behavioural segmentation, international students desire to learn about cooking healthy food. (http://www.angliss.vic.edu.au/)
Market is divided into geographical units, such as towns, regions, states, etc. A company may operate in one or more geographical area, depends on their capabilities and resources (Kotler et al., 2007).
The new segment of William Angliss Institute is male international students in ages between 18 and 24. Recently, there is increasing number of international students coming to Australia and the percentage of the male students is 54% from the last enrolment of the international students which has already proved by Australia Data Statistic (http://www.abs.gov.au/). As known by some research above, international students who live by themselves just have a little knowledge about cooking healthy food. It causes students prefer eating snacks or fast food as their meal which contain a lot of fat (Noble, Stead, Jones, McDermott, McVie, 2007). On the other words, it will be a good segment for the company because if there is a opportunity to get healthy food with the easy steps, students will not ignore it. Besides, the income of the students themselves should be considered by the company. Male students tend to take part time job rather than the females ( Reeves, Newling-Ward, Gissane, 2004). The maximal time for students to work is 20 hours per week. The regular wages that students get are between A$10 and A$20 (http://www.immi.gov.au/). It means the maximal income that students can get is A$400 per week. According to William Angliss site, the normal course fee is A$ 120 per lesson. It still too expensive for the students, because although the averages money students get from their parents are A$400 per week (http://www.abs.gov.au/), they need to spend their money to their living cost, such as accommodation fees. On the other words, the company should decrease the fees according to the averages of the students’ and automatically the company will compete for the fees with the competitors. The price will affect students’ choice, because the courses and services offered are similar between William Angliss Institute and the competitors. Furthermore, as the courses fees of cooking school are pricey, only the international male students with the medium and high socioeconomic class will be segmented and targeted by William Angliss Institute. This new segment is profitable for the company also if we conclude with the benefit sought variable. As it said in the beginning, either male or female students like to learn to cook healthy food with the easy ways. Generally, the male students want to have basic knowledge to cook, and the female students tend to learn how to cook vary kinds of foods, such as chocolate, ice cream, sushi, etc. In addition, William Angliss Institute has held the course, according to the purchase occasion, which is Christmas course (http://www.angliss.vic.edu.au/).
2.4.1. Evaluating market segments
The company must consider three main factors: segment size and growth, segment structural attractiveness, and company objectives and resources
22.214.171.124. Segment size and growth
Companies try to select segments which have the right size and growth. Large companies may go with segments which have the widest range, the highest profit margin, and the fastest growth rate. However, smaller companies tend to go for smaller segments which are generally less attractive but are potentially gain more profits in the long-run. The international male students are the suitable segment market for William Angliss Institute as a large company, because according to the research above, 54 % represented the international students enrolling to the universities which can be concluded as a wide range of market. The growth of the international students studying in Australia also increases from last year. There are 16% increase numbers of the international students studying in Australia (http://www.abs.gov.au/).
126.96.36.199. Segment structural attractiveness
In terms of structural attractiveness, there are four major things that contribute to this factor: the existence of competitors, subsitute products, relative power of buyers (defined as the ability of buyers to affect suppliers in ways that can change the overall market structure,for example, forcing prices down), and relative power of suppliers (defined as the ability of suppliers to make changes in the market which can affect its structure as a whole, for example, playing with prices of raw materials or quality of supplied goods). The competitors of William Angliss Institute are aggressive, because they also have good images to customers in some courses (http://www.angliss.vic.edu.au/). However, no company has segmented the customer market according to gender in international students, so it will be a good segment for William Angliss Institute. There are substitutes of the healthy food offered by William Angliss Institute, such as fast food and frozen food. According to Noble, Stead, Jones, McDermott, McVie (2007) international students, especially males, prefer eating snack, fast food, and frozen food than cooking by themselves. For that reason, we can assume that male students choose to buy unhealthy food rather than to cook healthy food by themselves. Therefore, William Angliss Institute should train them to cook healthy food with the easy steps.
188.8.131.52. Company objectives and resources
The company must consider its own objectives and resources in relation to that segment. And if the segment matches with the objectives, the company must decide whether the skills and resources are suitable or not. William Angliss Institute desires to provide training for the hospitality, tourism, and food industries by using healthy ingredients in every process of cooking. It fits with the purpose of segmenting international male students, because their bad habit to eat unhealthy food. Hence, the company will train the male students to cook healthy food with the easy steps. The professional staffs are available to train the international male students.
2.4.2. Selecting market segments
There are three market-coverage strategies which company can adopt to choose market segments. They are undifferentiated marketing, differentiated marketing, or concentrated marketing. In undifferentiated marketing strategy, a company may choose to ignore any existing market segments and go for the market as a whole and sell to each and every part of the market all the same. Meanwhile, differentiated marketing strategy occurs when a company may target several market segments, and design separate offers for each. Moreover, concentrated marketing strategy takes place when a company may go after a large share of one or a few submarkets that are available (Kotler et al., 2007). William Angliss Institute applies the differentiated marketing. Company focuses in special target market, which is international male students, and presents the advertising in the different ways with the others courses.
According to Dibb (1997), positioning is the process of designing an image and value so that the customers within target segments understand about the company if compared to its competitors (Wilson and Gilligan, 2002). Moreover, if the market segmentation combines with perfect product positioning, it will make the organisation to lead the market segment (Dibb & Simkin, 1997). On the other words, the company must determine positioning strategy for the products to gain an image from the customers. According to Jackson (2007), positioning strategies tend to be easier to develop and implement when a company sells products only to one market or segment consisting of a homogeneous group of people. The William Angliss Institute has given reward as specialist in hospitality, tourism, culinary arts by the Australia government, because of the excellence of working in their fields. The simple regulation in this company is using healthy ingredient to cook. This is the difference with the competitors; resulting people will go to William Angliss Institute if they want to learn about cooking. William Angliss Institute has some long term classes. It is the difference between this company and the competitors. Hence, the options of studying in different purposes are accessible in this company which cannot be achieved in the others company. William Angliss Institute serves the customers with the highest quality they can present, the affordable price, and accomplish advertising marketing with high quality (Brooksbank, 1994). The position of William Angliss Institute can be seen below. Quality 2.6. Resources and Capability The William Angliss Institute is one of the greatest cooking schools in Australia. The programmes are supported by professional and skilful chefs and staffs, modern equipments, perfect location (Central Business District), cooperated teamwork, creativity, communication skills, and good planning. By these resources and devotees, company can possibly serve the market segment well and efficiently. Regardless of it is a big segment market, William Angliss Institute which is also the large company; has a lot of skilful staffs to handle the customers’ needs and wants. Besides, the company has a strong brand image to the customers which become an advantage to target the market. Company also capable to give information about the existing, potential, and new products by using the development of technology, giving a major impact on the issue of successful marketing strategy (Alba et al., 1997)
3. Conclusion and Recommendation
The conclusion is the company ought to segment new customer market which is the international students, especially males, based on demographic, psychographic, behavioural variables. The number of international male students coming to Australia is increasing years by years. The company decides to segment 18-24 years old male students who desire to live independently in Australia. In psychographic segmentation, the students’ lifestyle are dissimilar with the past, they grow to be more independent. However, this independent lifestyle does not conclude that they can cook the healthy food for themselves. On the other words, they just buy snack, food, or even junk food to eat, especially males student. The company should provide not only the good quality of the cooking equipment, but also the better quality of the courses, which means William Angliss Institute should increase the quality of the teachers or chefs to train the students to cook healthy food with the easy steps. Moreover, the company should use technology, in this case is internet, to give presentation to the students, and if can, the company should held presentation and approach in the universities in Australia to launch this useful class for international male students. Therefore, the advertisements should be arisen to attract more consumers, especially by the new segment conception; the greater advertising presented, the greater opportunities to gain customers and profit at the same time.