Perk’s Target Market

Segmentation Approaches

Identified appropriate methods:

1. Demographic targeting based on age/life stage of the consumer that would purchase frozen yoghurt.

2. Geographic targeting based on the people who shop, attend university or work near Oxford Road, Manchester.

3. Psychographic targeting based on consumers with a healthy lifestyle that are likely to buy frozen yoghurt as an alternative to ice cream.

4. Behaviouristic targeting of how often people buy frozen yoghurt per week.

Method: Advantages: Disadvantages:
 Demographic (Chaffey, 2012)
  •  Offers a clear customer profile, thus criteria can be developed and built into marketing strategies (Brassington and Pettit, 2006)
  • Demographic information is the most accessible and cost-effective way to identify a target market. (bized, 2013) Perk is a small business & so this approach would be effective.
  •  Assumes people in the same age group act the same way.
Geographic (Fill, 2009)
  • Allows the specific targeting and identification of customers (Brassington and Pettit, 2006)
  • Assumes people from similar areas react in the same way. (McDonald and Dunbar, 2004)
  • Vulnerable to customer centric competitors. (Brassington and Pettit, 2006)
Behaviouristic (Chaffey, 2012)
  •  Helps distinguish customers online behavior, & to market to suit their needs. (Fill, 2009)
  •  Assumes people’s disposable income & different needs (Fill, 2009)
Psychographic (Chaffey, 2012)
  • Will be interested in frozen yoghurt as an alternative to ice cream. (Fitday, 2013)
  • More likely to make their own or buy from supermarket.

 Chosen approaches: Geographic approach & Demographic

Justification: Perk is a small and new shop, it’s important to initially focus on local consumers before trying to attract them from other locations (Brassington and Pettit, 2006). Its fortunate location in a highly populated student area also encouraged the use of this approach.

Demographic approach: Allows the analysis of purchase patterns (Fill, 2009) in order to specialise Perk’s marketing approaches concerning the sales of its Frozen yoghurt, thus extending customer reach.

  Method: Issues/risks:
  •  Demographic:
  •  Assumes everyone in that age group behaves the same way.
  • Consumers of frozen yoghurt generally under the age of 35 (Mintel, 2013) (excludes a large group of potential. customers)
  • Geographic:
  • Focuses attention away from potential customers that aren’t in the local area.
  • May generalise the target audience. (Thomas, 2007)
  • Behaviouristic:
  • Would have been useful to see how often purchases are made.
  • However, doesn’t include new customers.
  • Psychographic:
  • Missing out on the opportunity to send particular messages in correspondence to the characteristics of the audience. (Chaffey, 2012)
  • Around 20% of the market looks for low-fat/fat-free alternatives. (Mintel, 2013)

From this we were able to establish 2 main segments:

Customer type: Pros: Cons: Priority:
 Students (18-24)
  • High student population on Oxford road – 3 student campuses + Birley fields medical campus in 2014 (perk closest café) Presents opportunity to advertise perks health benefits to health conscious medical students.
  • Digital savvy – consistently highest users of social media and other forms of modern digital media. (Mintel, 2013)
  • High users of internet café’s. (
  • Less disposable income than young professionals who work full-time.
  • May be less health conscious when less disposable income. (Mintel, 2012)
   Young professionals (22-35)
  • More disposable income.
  • Less likely to be attracted to innovative products or to follow trends.
  • Smaller population than students in Perks location.

Main audience: students (18-24)

Justification: Manchester holds over 100,000 students (, 2013)  This therefore provides us with a significant population of customers to target. Of these we aim to focus mainly on students based on Oxford road, and MMU students as Perk is located opposite the MMU campuses. This allows us to focus resources on a small, concentrated area containing customers with similar characteristics (Brassington and Pettit, 2006).

Reduced focus: Young professionals (22-35)

By  reducing focus on young professionals Perk may lose market share, however the main factor driving this decision is that offices are more densely populated in the city centre (Piccadilly) which means most employees will visit more closely located venues.


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