Segmentation | Our Services | Ruby Cha Cha



Various experts have varying opinions and in the world of research it can, unfortunately come down to the product that the agency is selling you, rather than the one that fits your business needs.

Make strategic business decisions with The Essential Guide to Market Research by Ellen Baron.

At Ruby Cha Cha we believe that it is a bad idea to take a one-size-fits-all approach to market segmentation and that every brand and category needs a customised approach, taking in success factors that are important to your business.

The solution must be the right one given your market situation. Even if an approach does tick the boxes of measurable, sizeable, meaningful, actionable and so forth, it may not stick.

Harvard Review has a great article on segmentation analysis and says that once you discover the most useful ways of segmenting a market, you have produced the beginnings of a sound marketing strategy and this is something the entire business needs to come to grips with from the C-suite through to marketing and operations.

Segmentation analysis has developed out of several key premises:

  • In today’s economy, brands can only sell effectively to certain segments of any market – forget the notion of ‘we are going after everyone!’
  • Sound marketing objectives depend on knowledge of how segments produce the most customers for a company’s brands.
  • These differ in requirements and susceptibilities from the segments which produce the largest number of customers for competitive brands.
  • Traditional demographic methods of market segmentation do not usually provide enough and are not likely to provide the right direction for marketing strategy as management requires.
  • Therefore, segmentations can often over promise but under deliver.

But what do you do with a segmentation? If the segmentation is sound, you should hope to do some or all of the following:

  • Appraise competitive strengths and vulnerabilities of your brand.
  • Plan a product line.
  • Determine an advertising and selling strategy.
  • Set precise marketing objectives against which performance can later be measured.

From here you can:

  • Direct attention and money to the most profitable segments.
  • Design a product line that delivers to market needs or demands.
  • Follow trends in swiftly changing markets.
  • Choose and budget communications more wisely and determine the proportion of budget for maximum anticipated impact.
  • And so much more…
Given the investment on research like segmentations can be high, we believe it needs to be customised to your unique business needs, with a focus on some key drivers of success:
Bring your Key Stakeholders on the journey

● Apart from obvious buy in, we need to understand what problems should be solved. Without segmentation driven business decision-making, what are their pain points? What do they know about segmentation?

● How are they hoping to use the outputs and across what dimensions?

● What sorts of output tools will work for them?

● What does success look like for them?

Define your market

● Showing for instance a candidate brand, the degrees of separation between the competition, identifying short term threats, long term growth opportunities and therefore the scope of the segmentation study.

● Charts such as segment construction, showing the relationship between the segments found and the source attribute, so we can see how the segment is constructed.

● Segment selection charts plotting segment size, share, contribution and growth estimates so we can prioritise these for action.

Utilise Workshops to ensure understanding and clarity

● A great segmentation is a framework for growth, so management needs to be able to use the tools and get planning straight away.

● We provide a series of workshops following our segmentations to embed the information across communications, research, innovation and staff, depending on your requirements.

● Where appropriate we will also overlay existing data to get the most out of your segmentation framework.

Embrace Information Tools into the business

● Good qualitative research goes hand in hand with actionable segmentation tools. Ethnographic or observational research can provide video footage to bring your targets to life, or we can script and provide hype reels to do the job.

● Simple and accessible tools such as infographics, wall charts and one pagers, are important for grounding the information in the everyday and ensuring our business is customer centric.

Build planning and monitoring processes into your model

● To ensure action plans can be measured and reviewed, we strongly recommend building your segmentation into your planning cycles and monitoring processes.

Segmentations are probably the most useful strategic tool available, and Ruby can help make sure you get the right one and use it as the fundamental growth framework for your business.
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Get in touch with Ruby Cha Cha

Get in touch with Ruby Cha Cha