ADFD_FS06 CONSUMER SEGMENTATION

Consumer segmentation attempts to identify clusters of people who share characteristics, usually in the form of demographics, lifestyle attitude and behaviour. Consumers who share characteristics form groups called cohorts. For example the young consumer segment can be subdivided into categories based on data like occupation, age, marital status, ethnicity and other characteristics. Young consumers in the same age group, have a collective mind set and shared characteristics, are likely to shop and purchase in similar ways. Similarly generational cohorts are in the same age group being born more or less around the same time and encounter the same socio-economic-political situation prevailing around them. This commonality shapes their relationships and attitudes to other people and products, while sharing common preferences in lifestyle. Some examples are:
i. Baby Boomer generation are those born after World War II (between 1942 -1960) was the first TV generation and likely to have direct or indirect experience of war.
ii. Generation X born between 1961-1981 was the first computer generation.
iii. Generation Y born after 1982 are the children of Baby Boomers and the target of many marketing groups.

A combination of all these groups and their sub-groups comprises the target market. Professional consumer research companies use different data collection methods like focus groups, survey and observation to understand and analyze consumer behaviour and preferences. It is crucial for a company to identify and understand their target consumers who are likely to respond/purchase the products offered.

Segmentation strategies are based on psychographic and demographic data of the target consumers.
1. Demographics refer to data like occupation, age, marital status, ethnicity as important characteristics that drive consumer attitudes and behaviour.
2. Psychographics (combining consumer psychology and demographics) are supplementary data which help to identify a consumer segment characterized by common values, attitudes, preferences and behaviour. Health, fitness and nutrition-conscious consumers comprise a relatively small but influential segment of consumers in all categories. Positioning of fashion products is more effective if it incorporates the ‘who’ of demographics (identification of the consumers) with the ‘why’ of psychographics (reason for their purchasing choices). Today
research of lifestyle patterns forms the foundation for product development and marketing.

The consumer is not a single person but represents a very wide and diverse segment of people. It is this diversity that creates diffusion i.e. spread of fashion across segments of society. Some consumers are fashion leaders while others are followers.
The consumers are broadly categorized into:
Fashion Influentials
Fashion Followers
I. Fashion Influentials also known as Fashion Change Agents, play an important role in the initiation and spread/ diffusion of fashion. They establish dress codes and styles followed by others. They are classified into 2 groups – Fashion Innovators and Fashion Motivators:

i. Fashion Innovators
Fashion innovators are fashion leaders who sense the spirit of the times and are early adopters of new styles. Though they are a small segment of society, due to their personal charisma, aesthetic sensibility, social position/ celebrity status, financial standing, achievements or personal charisma, they are perceived as fashion role models and style icons capable of influencing large segments of the population. This gives their credibility to innovative style statements a sense of credibility and the impetus to start trends.

Fashion leaders are interested and knowledgeable about fashion and are extroverts. They are self-confident in their choices and are also keen on differentiating themselves from others. They are quick to adopt new styles long before they become full-blown trends making them influential within and beyond the social group.

Several kinds of Fashion Influentials comprise this category:
1. They may be designers themselves and are therefore the ones who actually create fashion trends.
2. They could also be innovators in terms of their personal style statements that challenge prevailing fashion trends.
3. They may be socialites or successful professionals like musicians, sports persons or celebrities like movie stars, who wear one-of-a-kind ensembles on the red carpet or for highly publicized events.

ii. Fashion Motivators
They play a role in motivating consumers to adopt new fashion:
1. They can be movie stars, models or celebrity professionals who endorse fashion products and brands which are motivating factors for increased purchasing patterns across all social strata.
2. They can be media persons and fashion journalists whose articles in newspaper columns, fashion magazines and blogs are avidly read by many. Since they have a passion for the latest fashion, they are considered to be more knowledgeable about some aspects of lifestyle and their opinions matter to others in the group.
3. They may be fashion designers who are often interviewed, quoted and asked for advice on fashion and are therefore influential as opinion leaders in their own right.
4. They can also be high-end retailers and exclusive boutiques who have the experience and the position to identify the most saleable designers whose creations are then showcased. Their judgment is usually based on the understanding of their clientele and their ability to zoom in on the next big fashion direction.

II. On the other hand are those who belong to a wider cross-section of the consumer base and
abide by the dress codes of the majority. They are divided into 2 segments:
i. Fashion Followers
ii. Fashion Victims

i. Fashion Followers
They are the majority of consumers who accept and emulate trends which are firmly entrenched in the market. They feel a sense of comfort in conforming to styles that merge with others in a larger group. Fashion followers may also be those who may not have much of disposable income or have limited time and interest in fashion. Some designers and manufacturers create more variety of affordable styles for this consumer segment. Fashion needs followers without whom it would not gain momentum. For marketing experts, fashion followers are the drivers of mass production of commercially viable fashion in large volumes.

ii. Fashion Victims
This phrase is sometimes used to refer to those who follow fashion trends without exercising their own judgment. This consumer segment is often characterized by high income and high purchasing power. They tend to buy the latest fashion simply because it is expensive or because media or fashion pundits declare it as being ‘in’.