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Report on Market Segmentation ofAUSSINO COUNTRY in China

Table of Contents

1. Introduction
1.1 Industry Overview
1.2 Brand Overview
2. Environmental Analysis
   2.1 Economic Environment
   2.2 Geographic Environment
   2.3 Demographic Environment
   2.4 Psychological and Behaviour Analysis
3. Customer Analysis
4. Target Market Identification
   4.1 Primary target market
   4.2 Secondary target market
5. Conclusion
6. References

1. Introduction

1.1 Industry Overview

The Aussino was funded in US as a small business http://www.400190.com/Assignment_Writing/  manufacturing home textile. Eventually, Aussino grew to become the United States’ leading home textile manufacturer. In order to tap into the global market, AUSSINO develops its production technology, research and design, market and organization management, and etc. Now, Aussino promotes the product and services in 22 countries around the world such as Canada, USA, the UK, Australia, China, Korea, Malaysia with more then 8,000 commercial networks . In China, Aussino has set up 338 point-of-sales in 31 cities. The main stores are mainly located in Beijing, Shanghai and Hong Kong .

Aussino holds the company mission, which is to grow the global market through product innovation, effective distribution network and unique marketing strategies, to provide customers the great comfort, stylish, superior quality products with the concept of ‘ where home is where the heart is’ .

1.2 Brand Overview

Aussino home textile possesses over 11 brands series—Aussino Fashion, Aussino Kids, Royal Symphony, Aussino Baby, Senze, Aussino Whites, Soie D’ete, Aussino Country, Now, Sino and Inspire at present. The brand—Aussino Country, emphasizes the warm and soft feeling of home, to offer customers the products with anti tranditional colors. In a nutshell, the brand preserves the intrinsic value consistently, which is to provide customers the high quality life with superior quality product and impeccable services.

2. Environmental Analysis#p#分頁標題#e#

2.1 Economic Environment

Economic environment consists the factors that could affect customers’ buying power and spending pattern (Kotler, Brown, Adam, Armstrong, 2001). In Bartlett, Ghoshal, and Birkinshaw’s (2004) perspective, it refers to the country’s economic system and structure, economic development level, industry pattern, the resource condition, and the future economy tendency. In generally speaking, it mainly refers to such as GDP developmental tendency, market demand condition, cost of resource supply and etc.

Markets require buying power as well as people. As we all know, China is one of the developing country around the world. By doing the search on Chinses economic situation, we can find that China has a substantial middle class and many in its rapidly urbanizing population are ready consumers. In 2007, the average yearly household income was about 90,000 yuan. The number of affluent households, who earn more than 130,000 yuan annually, is rising. By 2010, the percentage of affluent Chinses households will be around 26%, making up around 50% of all household expenditures . On the other hand, the unemployment rate in China is not very high. These economic factors form a good foundation for Aussino to enlarge the market in China.

2.2 Geographic Environment

The whole market of AUSSINO COUNTRY is make up by consumer demand from differnet districts in China. There are some differences on consumption and buying behavior of consumers due to the reasons of local natural conditions, economic development level, lifestyle and consumption concept (Robbin, Bergman, Stagg, Coulter, 2000). For instance, in China, there is a big gap on household income and economic level between east area and west area. While, the southern part of China and north have the differences on weather conditions and lifestyle. Hence, the differences on consumers’ demand and marketing strategy response emerge gradually. Refer to AUSSINO COUNTRY, company promotes it mainly in Shanghai, Beijing and Hong Kong in order to cater to the promotion concepts of ‘where home is where the heart is’, with superior quality products and impeccable services.

2.3 Demographic Environment

Demographic environment includes the items such as population characteristics in term of size, density, age, sex, race, occupation, location, education, income, etc (Duane, Robert, Michael, 2008). According to the result of polulation census in China, the population in China is about 1380 million in 2010, and it is young with a fast growing, it will rapid household growth . This situation would imply an increase of consumer growth to exponential values. Chinese are buying hundreds of thousands of home textile products a year. With the increase on househole income, the development on life standard, China should be one big market for home textile industry.

2.4 Psychological and Behaviour Analysis

Psychological analysis is one in-depth market segmentation criteria compare with demographic environment analysis. It includes the criteria of social classes, personality, lifestyle and consumption concepts (Hitt, Ireland, Hoskisson, 2006). In China, for instance, the buying motive has obvious distinction between white-collar and bule-collar in big city among young people; the personality of only child and family prolific of children is different. The psychological activity has relatively great effects on market practices. Hence, when the company implements the market strategy and divides the market, it should consider the psychological factors emphatically.#p#分頁標題#e#

Another criteria is the behaviour analysis. It is also an in-depth market segmentation criteria. According to the sort and differences on buying behaviour, the company could segment the market one by one with the criteria such as purchasing opportunity, main point of interest, manner, loyalty, etc (Mellahi, Frynas, Finlay, 2005). In China, customers’ purchasing rate is much more higher than the ordinary time, especially at the holiday time period such as May Day, National Day and Spring Festival. The company could implement different market strategy according to the purchasing opportunity in order to enhance sales. Nowadays, the purchase of the crowd has become more and more youthful. They gradually pursue the kind of lifestyle with fashion, speediness and health. The inherent concept of Aussino Country matches with their lifestyle and personality. In this case, the market could be enlarged around China.

3. Customer Analysis

Aussino segments its market based on price sensitivity. The premium, economy and cheap segments are the three main segments for Aussino. The premium segment contains high-end products, which include brands such as ROYAL SYMPHONY, ALVIERO MARTINI. The products from premium segment tries to meet customer’s demands for excellent comfort and personal luxuries with high quality and new-tech innovation. They also appreciate the sophisticated foreign design and style. The economy segment contains mainstream products such as INSPIRE and AUSSINO COUNTRY. Customers in its economy segment demands practical product with considerable quality and affordable price. They have middle level income. Price and product durability is important for them. And the cheap segment contains low-end product. Although the company adopt mass-market strategy, which coves all price level, Aussino currently is focused on economy segment.

4. Target Market Identification

Aussino engages in home textile for both consumer and industry markets in China. For industry market, it provides quality products for international 4-star and 5-star hotels such as Crown and lodging institution including resorts, apartments, rest house. For customer market, it provides superior quality product and services to customers through retailers, agency, stores, franchisee, etc.

4.1 Primary target market

In consumer market, there is a growth trend for premium segment. Since more and more customers are increased concerning about their quality of life and the health condition, they demand products superior quality and maximum comfort. Moreover, there is an increasing demand for customized product to fit customers’ special need such as the style and color of textile. In consumer market, the primary target market is identified as work-oriented individuals and families. This market looks for males and females with 70 percent of them being married; aged thirty to forty-five; have a household income range between 40,000 yuan to 90,000 yuan. Demographically, they tend to live in urban. The psychographics for our consumers are typically success-oriented, confident, experimented. They are also practical and sensitive to value. But they want something stylish and confort to use. They are interested in self-express products. So they are looking for high quality home textile with strong features that may have a sense of warmth, confort and vogue.#p#分頁標題#e#

4.2 Secondary target market

The secondary target market of Aussino Country consists of young buyers who are more likely to engage in a stylish and fast lifestyle. They are typically singles, aged between twenty-five and thirty-five, belong to upper middle class, well educated and some of them still live with their parents. These young people have active lifestyle and like challenging. They are more style-conscious but less price conscious.

5. Conclusion

Traditionally, Aussino’s value position mainly focuses on quality. And it enjoys its company reputation on home textile industry from its customers who have trust towards Aussino. As the development of global market, Aussino expands its market globally through the successful international marketing practices and promotion strategies. Even Aussino currently has the optimal market share, it also considers to enhance its tranditional market strategies to be more flexible and reasonable. Lin Junchen, the CEO of Aussion, states that China has the big potential markets, which surpass the ones from any other countries around the world. He looks forward to further expand the chinese market with more flagship stores and franchisees. Moreover, the CEO Mr. Lin declares that the unique product characteristics, innovation and design style are significant and essential for the company to earn more market share in China. At the same time, Aussino tries its best to cultivate these kinds of innovation- and customer-oriented culture locally.

6. References

Kotler P., Brown L., Adam S., Armstong G., 2001, Marketing 5th ed., Australia: Prentice Hall

Bartlett C., Ghoshal S.B., Birkinshaw J. 2004. Transnational Management: Text, Cases and Readings in Cross-border Management 4th ed. McGraw-Hill: Irwin

R. Duane Ireland, Robert E. Hoskisson, Michael A. Hitt, 2008, Understanding Business Strategy: Concepts and Cases, p. 45-50, Canada: Mellssa Acuna.

Hitt M.A., Ireland R.D., Hoskisson R.E. 2006. Strategic Management: Concepts and Cases 7th ed. Thomson Learning

Robbin S., Bergman R. Stagg I. & Coulter M., 2000, Management. Australia: Prentice Hall.

Mellahi, K., Frynas, J.G., Finlay, P. 2005. Global strategic  http://www.400190.com/Assignment_Writing/ management. UK: Oxford University Press