New Product to the Market (Timed Drink Dispenser) Essay

New Product to the Market (Timed Drink Dispenser) - Essay Example It is also cheap and hence affordable to most people all over the nation. Market segmentation involves marketing strategies that are used for classifying a broad market into subsets of consumers with similar needs for the product (Kotler 68). The specific characteristics of the product are divided into different categories of age, location and family size. The marketing strategies are designed to target specific customers. Segmenting helps in measurability, which is determining whether a particular segment is fit enough to be pursued. Accessibility is also a criteria in segmenting which entails reaching a given target group, where a region where people pay less attention is inaccessible. Demographic segmentation is also used to classify the market by dividing it into the variables of age, location and even family size. Demographic segmentation is great for segmenting customers into different groups, where customers are linked to the variables and segmented accordingly. Segmenting of the market involves dividing it into groups of consumers with similar wants. Consumer based market segmentation is performed on a specific product basis so as to create a close relationship between the consumers and the product. This demographic segmentation helps in identifying groups of similar consumers and the potential ones. ... The target market is mainly young people in the mid years since they may use the dispenser a lot in carrying alcohol and some types of beverages. Most youngsters prefer carrying beverages around and this dispenser is efficient for them since its pocket friendly, portable and can hold a lot of drinks. Most consumers’ preferences vary with age, in this case very young children may not see the essence of this dispenser but a bit older youngsters will know its importance. Psychographic segmentation is also essential since it helps to understand the consumers’ lifestyle. Product positioning is the next step in product introduction after the target market has been identified. Positioning entails ascertaining a product and how the potential consumers view it. Segmenting helps in matching the consumer’s needs, reduces expenses, improves cash flows and improves productivity. To reach this group of customers, a lot of advertising is involved. Using demographic segmentation we target the young and also large families. With a family of six the dispenser can hold drinks to keep them going all day since the dispensers vary in size and one can get the required one. When considering the potential market for a new product, the size of the market is important since it determines the profit margins that will be gained from the product (Kotler 212). The target group should be stable since the product should be in the market long enough to break even. The potential customers should be easy to reach, that is promotions and distribution channels should reach them. The product can also be reached cost efficiently by the market intervention. The product has many benefits to the consumers since its cheap and readily available; it is portable by those going for picnics and