The golden age of delivery services

Posted: March 29th, 2022

In the golden age of delivery services, the subscription box industry is getting more and more popular. A subscription box is a recurring physical delivery of curated products packaged in a box. Delivery can be monthly or less often (e.g. quarterly). Product categories include fashion, beauty, food, home, wellness, books, kids and pets.
 
We chose beauty.
 
The following is a market segmentation based on purchase occasion (a kind of behavioural segmentation – different to usage). You will be assigned one of the following customer segments to focus your marketing strategy on. Using at least THREE additional market segmentation criteria (e.g. demographic, psychographic, geographic, benefit, behavior, etc.), you must further segment this group into 5-7 segments and choose one to target for the plan (see plan guideline below).
 
1. Discover: These consumers want to discover new brands and products they haven’t heard of within a specific product category.
 
2. No time: These consumers don’t have time to shop and rely on experts to regularly send them products within a specific product category.
 
3. Collector: These consumers love a certain product category and can’t get enough. They subscribe to get a new style or version of the product.
 
4. Indulge: These consumers want to reward themselves with a gift within a specific product category.
 
5. Learn: These consumers want to learn something new.
 
6. Hobbyist: These consumers want to either start or further develop a certain hobby they are interested in.
 
We got assigned to INDULGE.
 
Market Analysis:
 
Identification of 5-7 different potential customer groups. You have been assigned INDULGE for a customer segment based on the criteria of purchase occasion. Further segment this group into 5-7 potential customer groups by applying other segmentation criteria (demographic, psychographic, geographic, benefit, behavior, etc.)
Multiple criteria segmentation
 
UAE Subscription box market
 
1. Segment by Behavior: Purchase Occasion
 
• Discover • No time • Collector • Indulge • Learn • Hobbyist
 
2. Sub-segment by Psychographic: shopping attitudes.
 
• Mainstream • Price sensitive • Healthy