The task was answered carefully and comprehensively. Afterwards, it was also improved in the lectures. The task is highly representative of the exam and is a good preparation for the open questions.
Assignment 2
1. Segmentation
a. Based on which segmentation criteria would you segment Ace & Tate’s market?
Why?
Since most of their turnover is still generated in offline stores, geographical
segmentation has always been important for Ace & Tate to make sure that they reach
the people that live near the stores. I would also choose a demographic
segmentation for Ace & Tate’s market because of the fact that they offer glasses for a
reasonable price. Students and young professionals with a smaller budget would
rather go for a pair of glasses that won’t break the bank and that has an up to date
design that can help them to express their personality. And they spend a big part of
their lives online and therefore are probably less sceptical about online eye testing
etc. I would also go for the psychographic segmentation. People who have a luxury
lifestyle are less unlikely to buy Ace & Tate glasses but people who have to work each
month around a more limited budget are more likely to buy an Ace & Tate product
because they want value for money. (P.303)
b. Which segment is Ace & Tate targeting with their product? Why?
Ace & Tate’s main segment that they are targeting is the demographic segment of
20-35 year old students and young professionals. They are digital natives which
makes them easier to reach online and more likely to try out the new online tools
they offer. They think it is important to be able to express their personality through
their looks.
2. Perceptual map
a. Create a two-dimensional perceptual map for Ace & Tate. Use service level and price
as the two dimensions.
Low price High price
High service level in High service level in
High service level combination with low price combination with high price
products products
Low service level in Low service level in
Low service level combination with low price combination with a high price
products
Ace & Tate’s goal is the high left corner, being able to provide low price products in
combination with a high level of customer service with free eye tests for instance.
(P.330)
b. Where would Hans Anders fit in? Where would your local optician fit?
Hans Anders would be a combination of low price and low costumer service. They
offer the lowest level of service and they offer frames that are almost free.
A local optician will most likely be a combination of high price and high service level.
They offer the best service possible (the quality of optometry is often better than at
the ophtalmologist’s etc.) but they mostly sell designer frames which come with a
much higher price tag.
c. What would be other relevant dimensions to plot for this industry?
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