Companies nowadays face high competitive markets and very different needs and buying behaviors of consumers. It is therefore a reasonable strategy to segment all potential buyers into distinguished segments. In order to serve these segments more effectively, a company has to understand what the specific needs in such a segment are and how to satisfy them. It is essential that the process of serving a special market segments fits to the market. Otherwise the profits will suffer of lower revenues or higher costs.
When marketers seek for similarities within consumers they use age - and in a broader sense, generations – as a segmentation criterion. One of these generations is the so called “Generation Y”. Born between the beginning of the eighties and the mid nineties, this group cohort is today between fifteen and thirty years old. Nowadays they are coming into work life and are therefore a valuable customer segment with increasing buying power. It is said that this generation has its own set of needs and ways to buy. So it is interesting to analyze how the Generation Y can be reached by companies.
The creation of special customer value for Generation Y for Apollo-Optik will be discussed in this paper. Generation Y will be defined, as well as what is meant by customer value. The company Apollo-Optik will be presented with its products and markets served. Thereafter, this paper is going to analyze the Generation Y for Apollo-Optik with regard to different segmentation criteria. The creation of a special value for a homogenous segment will be discussed at the closing stages.
Table of Contents
1. INTRODUCTION
2. DEFINITIONS
2.1. GENERATIONS AND GENERATION Y
2.2. CUSTOMER VALUE
2.3. THE OPTICIAN COMPANY APOLLO-OPTIK
2.3.1. The company
2.3.2. Products
2.3.3. Markets
3. THE TARGET GROUP “GENERATION Y”
3.1. MARKET SEGMENTATION
3.2. GEOGRAPHIC SEGMENTATION
3.3. DEMOGRAPHIC SEGMENTATION
3.4. PSYCHOGRAPHIC SEGMENTATION
3.5. BEHAVIORAL SEGMENTATION
3.6. SEGMENTATION OF GENERATION Y
4. CREATING SPECIAL CUSTOMER VALUE
4.1. DECISIONS WHILE PURCHASING GLASSES
4.2. SUPPORTING THE PURCHASING PROCESS
4.3. A SUITED OFFER
5. CONCLUSION
Objectives and Topics
This assignment explores the development of targeted customer value strategies for "Generation Y" within the context of the German optician chain Apollo-Optik. The core research focus lies in identifying specific segmentation criteria—demographic, psychographic, and behavioral—to understand the unique needs and purchasing habits of this cohort and to suggest innovative, technology-driven service improvements.
- Theoretical definition of generational cohorts and customer perceived value (CPV).
- Comprehensive market and target group analysis of Generation Y.
- Application of segmentation strategies to the optical retail sector.
- Development of digitized, individual consultation processes to enhance customer experience.
- Strategies for leveraging social media and digital platforms to drive customer loyalty.
Excerpt from the Book
3.6. Segmentation of Generation Y
A generation consists of individuals that in total have similarities but are different on an individual level. Therefore, in order to target a consumer group effectively, additional segmentation criteria to the age criterion should be applied.
The study “Generation Y female consumer decision-making styles” carried out by Bakewell/Mitchell in 2003, shows several different female consumer decision-making segments. Summing up, the authors divide their target group into recreational shoppers, shopping/fashion uninterested, trend-setting loyals, and confused ones. A similar picture can be drawn of the findings of the TNS Infratest study “Generation Zukunft”.
In accordance with the Bakewell/Mitchell study, this paper will segment Generation Y into four different groups. Even though the study solely considers women, it can be assumed that in general the segmentations found can also be applied to men as well. Therefore, this paper generalizes the segmentations found and adapts them to the findings of the TNS Infratest study “Generation Zukunft”.
Summary of Chapters
1. INTRODUCTION: Outlines the strategic importance of market segmentation and introduces Generation Y as a valuable customer segment with distinct buying behaviors.
2. DEFINITIONS: Establishes the theoretical foundation by defining generational cohorts, the concept of customer perceived value, and provides a company overview of Apollo-Optik.
3. THE TARGET GROUP “GENERATION Y”: Analyzes Generation Y through various segmentation lenses, including geography, demographics, psychographics, and behavior, to understand their specific market characteristics.
4. CREATING SPECIAL CUSTOMER VALUE: Proposes practical, technology-based solutions to optimize the purchasing experience for Generation Y, emphasizing individual consultation and digital integration.
5. CONCLUSION: Summarizes findings and suggests that adapting communication and service offerings to the digital lifestyle of Generation Y is essential for future retail success.
Keywords
Generation Y, Apollo-Optik, Market Segmentation, Customer Value, Customer Perceived Value, Behavioral Segmentation, Psychographic Segmentation, Retail Strategy, Fashion, Digital Consultation, Social Media, Consumer Behavior, Brand Loyalty, Optician Industry, Generation Zukunft.
Frequently Asked Questions
What is the primary focus of this assignment?
The paper examines how the optical retailer Apollo-Optik can effectively reach and create specific customer value for the Generation Y cohort through targeted marketing and service innovation.
What is Generation Y?
Defined in this paper as individuals born between 1977 and 1994, this group is characterized by high tech-savviness, a focus on individuality, and a preference for peer recommendations over traditional advertising.
What is the research goal of this paper?
The goal is to determine how Apollo-Optik can move beyond mass-market strategies to better align with the fashion-conscious, tech-oriented profile of Generation Y.
Which methodology is used to analyze the target group?
The author utilizes secondary research, specifically consumer studies such as "Generation Zukunft" and established marketing frameworks like Kotler/Keller and VALS, to segment the target audience.
What are the main topics covered in the core section?
The core section covers the breakdown of market segments (demographic, psychographic, behavioral) and discusses technological solutions like digital face scanning and social media integration to improve the shopping experience.
Which keywords best describe this study?
Key terms include Generation Y, Market Segmentation, Customer Perceived Value, Retail Strategy, and Digital Consultation.
How does Apollo-Optik currently perform compared to competitors?
Apollo-Optik is identified as the second-largest optician chain in Germany, utilizing a nationwide uniform presence, which the paper suggests should be supplemented by more personalized digital services.
What role does social media play for Generation Y in this context?
Social media is critical for this group as a platform for product research, recommendation exchange, and validating purchasing decisions through peer feedback.
What is the proposed "new service" for customers?
The author suggests an electronic system that performs face scans and uses software to provide data-driven, individual fashion and fit recommendations, which can then be shared online.
Why should Apollo-Optik offer this new service for free?
Consumers expect high-quality consultation as part of the standard retail experience and are generally unwilling to pay extra for content or services within social media environments.
- Quote paper
- Dipl.Kfm, Christopher Schroeder (Author), 2010, Creating Customer Value for Generation Y, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/200220
