Marketing Blog – Article Example

Market Segmentation In Intermix Online Women Retailer Company Intermix has been operational since 1993 up to present day. The company increased the profit margin by 28% by performing good market segmentation. The result was simply achieved by decreasing the value of the discounts they were providing in their emails and alternatively shifted to increasing the average revenue per order for all orders placed that originated from their email campaigns. The company was able to organize their customers into three segments based on past purchasing pattern and behavior, open and click rates and purchase order values intermix. The three segments were:
1. VIPs who were customers who had high disposable incomes and proceeded to like the shop for their latest trends.
2. Brand shoppers who included those customers who by all means showed great loyalty to particular brands and were by far price conscious at all levels.
3. Sale shoppers who included those customers who simply loved having discounts.
With the above well analyzed piece of information, Intermix was then in good position to dynamically adjust their market offers and sent it out putting into considerations all types of the target customers. As such instead of discounts, the company’s VIPs were able to received non-monetary offers which came in form of invites to events and meeting of market designers. On the other hand, Intermix sale and brand customers were in a good position to receive more traditional discounts which the company put the value to be between 10_ 15% off which was specifically put in place for brand shoppers and 30 % off for all their sale shoppers.
With the above market segmentation strategy, Intermix Company was able to successfully raise their profit margin by 28%.
Referencing
Allen, T. Chris and Guinn, C. Thomas. (1998) Advertising. South-Western College Pub: Cincinnati, Ohio. Print.
Peterson, Keith. (2004) The power of place: advanced customer and location analytics for market planning. Integras: San Diego, Calif. Print.