Market Segmentation Analysis and a Value Proposition

Market segmentation is a marketing tool where an organization decides to split the customers, especially the potential customers into different market groups. In these segments, the customers share a similar level of interest by a distinct marketing proposition. On the other hand, value proposition is a marketing technique that summarizes why a customer should buy a certain product and or a service. The statement should convince the customer that a particular product and or service will add more value to solve a problem. The proposition should depict the competitive advantage the product has over the similar offerings.

Market segmentation has to do with understanding the needs of the specific needs of the consumers that the product is serving. In this assessment, the respective organization should be cognizant of the other competitive products that exist in the market. Consequently, from this assessment, the groups are made basing on what the customers share in common. The company can then determine the groups of customers it can serve and the corresponding products or services that the company can offer (Gunasekaran & NAW Institute for Distribution Excellence, 2012). The move is very important to ensure that the customer’s needs are met to in order for an organization to outdo the competing firms.

Description of Daylesford Farm Concept

Before coming up a plan for the establishment of business, there should be a careful feasibility study on the success of such a venture. The business should, therefore, be assessed basing on factors like strengths and weakness taken into consideration. Also, must a case study of such business that is thriving elsewhere for benchmarking purposes. For instance, in this study we are going to study the Daylesford Organic Farm in the United Kingdom. The farm began off a single business in one Oxfordshire. With time the business has grown and spread to other places, counties within the United Kingdom. Better management and policies have seen the sprouting of the business to achieving such great heights of performance.

The farm is big and handles several cases and services in the same place. The farm is located in the rich and fast-paced life of London. The farm handles a number of activities and services. These include running a café, the cooking school, the far school and also the shop having delicious organic goods. All the services are carried out in the farm under different workers and management. The farm charges relatively high prices, but it not an impediment to the influx of the many customers. The farm and the whole of its surrounding are green, and this give a good esthetic reality of the farm. In its appearance, the farm is attractive to the eye.

The environment within the farm allows the undertaking of different activities and actions. In the courtyard, the consumers can have drinks like a glass of rose. Also, customers can shop the various organic goodies under display. These include the cheese, a special cheese room access, and own-brand ready meals like Bolognese sauce and or lamb casserole. There are several other delicious meals that the consumers can access in the farm. Additionally, there is also a butcher counter where customers can get competitive meat at affordable prices. The Daylesford is not limited to the above; there is also homes section with covetable kitchen.

Potential Market Segment

The geographical location of this proposed business should at a place that is accessible for the target customers. The business should be centrally located at a place easy for the customers to access and also easy accessibility to the raw material required for the continuity of the business. Furthermore, the place should be accessible to other support businesses like the banks. The complementary goods and other services can easily be accessed by the presence of the other businesses. The best place to set up the farm, since it is a far and require green place with relatively reliable rainfall amount.

One of the other major consideration before setting up a business is the available capital. The capital investment will determine many things to propel the business. The farm also should be located in a place with a high population density to create a large market for the farm. Also, the presence of other competing firms offering the same services should be considered, and proper decisions made. The farm can serve best in a suburban area that is has a high-density population with the materials needed for the farm continuity.

From the Daylesford in United Kingdom, it was versatile and diversified in terms of business of service application. The farm is diversified in such a way that it covers the needs of the different groups of people in the society. There can be foodstuffs and clothing and many other goods that cut across the age divide. Both the old people and young can be well accommodated in the farm regardless of their gender. The estimated income from the business will depend on the location and the availability of the customers (Gunasekaran & NAW Institute for Distribution Excellence, 2012). The first month, denoting the initial times of the business, profit margins might not be good. The reason for the above being the customers would not have been made away of the existence of the business. The farm, therefore, has to set up campaigns and publicity of its existence in a given area.

Value Proposition

Business performance have grown to very high levels. The growth and competition of the business have increased specialization and high-quality services. There should be distinguishing features that will make the products unique and therefore attract the customer to a given product as opposed to the other competing product. The business should identify the needs of the surrounding people and therefore make decisions basing on the need of the needs of the consumers and the existence of the competing firms. One of the main competitive advantage businesses will use to against their competitors are addition of value to the products.

In addition, the business can provide better packaging facilities that are attractive to the eyes of the customers. For instance, a business can decide to provide high-quality cheese with an additional value to the normal cheese in the market. Furthermore, the business can use price discrimination to gain competitive advantage over the others. They can use lower charges for a given good and charge differently in different places depending on how the businesses are performing.

Other services like the home sections can be customized better to the specific needs and desires of the consumers. Value addition and proposition will increase the number of potential customers. More so, the advertisements that accompany the goods should give full information that speak about the goods and their features. Their attractive nature should be well displayed to depict how they appear in the real market. The statement should be captivating, attractive and informative.


Market segmentation serves as a marketing tool to provide better services to customers. Also through the value proposition, the goods and services can be well represented to attract the customers. Business planning and starting of a new venture will depend on the segmentation and proposition together with a detailed feasibility.


Gunasekaran, Lawrence, F. B., & NAW Institute for Distribution Excellence. (2012). Sales optimization: Developing competitive value propositions in distribution. Washington, D.C.: NAW Institute for Distribution Excellence.

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