Understand Business Context: Segmentation in the Apparel Industry

Challenge

A leading national handbag manufacturer partnered with SIVO to tackle a significant challenge: developing a robust marketing and communication strategy that could effectively engage their target audience, US fashion handbag buyers. The manufacturer recognized that without a deep understanding of their consumer base, any strategy would be built on assumptions rather than concrete data. To ensure their marketing efforts would resonate with the right audience, they turned to SIVO for a comprehensive approach to uncover more about their consumers’ preferences, attitudes, and behaviors.

Approach

SIVO addressed this challenge by conducting a national market segmentation study utilizing a quantitative validation approach through MaxDiff analysis, a method known for its ability to provide clear, actionable insights. MaxDiff, or Maximum Difference Scaling, is an advanced analytic methodology that identifies preferences by asking respondents to choose the most and least preferred options from a set of items. This approach eliminates biases often seen in traditional rating scales, as respondents are required to make trade-offs between attributes. The simplicity of MaxDiff questions allows for reliable data collection across diverse groups, making it an ideal tool for market research.

SIVO surveyed 3,000 respondents, presenting them with 30 statements about how they feel about handbags. SIVO’s experts meticulously analyzed the data collected, identifying key preferences and segmenting the consumers into distinct personas. These segments represented different mindsets and priorities regarding handbag purchases, providing the manufacturer with a clear picture of their market.

Additionally, SIVO developed a typing tool as part of the study, ensuring that the insights gained could be leveraged in future market research efforts. This tool allows the manufacturer to continuously refine and tailor their strategies based on the evolving needs and preferences of their consumer segments.

Impact

The collaboration with SIVO resulted in a profound impact on the company’s marketing and communication strategy. Through the segmentation study, SIVO identified seven distinct segments, each representing unique consumer personas. This deepened understanding enabled the manufacturer to tailor their messaging to resonate effectively with each group.

Thanks to SIVO’s expertise, the manufacturer could confidently target their messaging to appeal to each segment’s preferences, whether related to style, practicality, or other factors. This refined approach enhanced their engagement with their current consumer base and allowed them to identify and tap into new market opportunities.

Key Takeaways

• Data-Driven Insights: SIVO’s use of MaxDiff analysis in their segmentation approach provided a detailed understanding of consumer target segments and preferences, enabling the company to move beyond assumptions and base its strategies on concrete data.
• Segmentation for Success: SIVO’s identification of seven distinct consumer segments allowed the company to tailor their marketing messages effectively, ensuring that each segment felt seen and understood.
• Long-Term Value: SIVO’s development of a typing tool ensures that this segmentation study can continue to provide value in future market research efforts, allowing the company to stay agile in a rapidly changing market.

Call to Action

At SIVO, Inc., we believe that effective marketing starts with understanding your consumer. If you’re looking to gain deeper insights into your consumer base and craft strategies that truly resonate, we’re here to help. Our expertise in advanced methodologies like market segmentation ensures you’re not just guessing but making informed decisions that drive results. Contact SIVO today to learn how we can help your business achieve its goals.