Shan Foods Market Segmentation Strategy
Digital Marketing 1st Term Exam
Market Segmentation Strategy
Shan Foods is well known for its recipe mix spices with a presence not just limited to Pakistan but to around 60 countries. The reason for their success is on the promise of delivering convenience and a traditional authentic taste while cooking with these spices. It enables the consumer to prepare instantly traditional dishes without any difficulty. The recent social media campaign on Facebook uses catchphrases like taste happiness and traditional authentic taste. Shan recipe mixes are positioned on the emotion of happiness and at the same time offers the functional benefit of convenience which indicates the kinds of consumers Shan would be segmenting and targeting.
At a glance, the market for Shan’s spices are mainly females who are either housewives or working housewives and want hassle free cooking. If one were to segment the market according to the bases for segmentation, under geography Shan would be present in major cities of Pakistan and even small towns. Shan is also exporting these mixes to other region like USA, UK, the Middle East and even Far Eastern countries. In terms of demographics Shan would speak to housewives and working women aged between 25 to 55. The socio-economic class would be SEC A and B, primarily. Under psychographics, those who lead a modern, on the go lifestyle and want spare time for activities would be the appropriate target market for Shan’s recipe mixes.
According to the above mentioned bases for segmentation, Shan would formulate its overall market segmentation strategy. An understanding of the offering and the above information will help in formulating the digital market segmentation strategy.
Digital Segmentation Strategy
As Shan is present in 60 other countries, it therefore occupies a small sub segment of the recipe mix market abroad. It can use digital marketing to target that foreign market. For example, Shan’s USA website offers recipe mixes not just for traditional Pakistani dishes but for a variety of other cuisines including Chinese, Lebanese and others. With digital, one can gather insights about the consumer and gauge their movement from engagement to conversion. So they must target specific sub segments and digital mediums will allow them to do that.
The US website even offers instructions on how to prepare dishes and one can even order the recipe mix online. It has a strong offer on the table, now it needs to use online channels, find the segment and market the recipe spices to them. These people may be overseas Pakistani’s, Indians and people of other nationalities who are from the subcontinent. Again, the main target audience is going to be housewives. Therefore, Shan should focus its digital segmentation on the foreign market as digital marketing is more evolved over there as compared to that in Pakistan.