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Assignment # 2MKTG396VSCameron CrossID# 3310097
Question 1 (788 words)Tim Horton’s Segmentation VariablesI believe that Tim’s uses age, life cycle, and ethnic groups as their main segmentation variables. Since Tim’s is a proudly Canadian company, they use an ethnic group (Canadians) as ademographic segmentation variable. Tim’s strives to appeal to Canadians. Many of it’s commercials are directly advertising Canadian events or how they can add value to Canadian family activities. They also show that they are targeting Canadian’s specifically because of all thesupport they give back to the Canadian community. A great example is Tim’s creation of Timbits Hockey. This provides a great opportunity for Tim’s to give back to the Canadian market that they rely so heavily on. Tim’s also uses life cycle as another demographic segmentation variable. I feel that Tim’sis directly targeting people who are in the life cycle stage of having children. Once a person reaches the stage of creating their own family, mainly having children, Tim’s is especially interested in capturing these customers and creating enough value for them to become loyal customers. Once a person has their own children, they become more aware of Tim Horton’s marketing efforts (like Timbits Hockey), and begin associating these efforts with their own family. Tim’s shows throughout various Timbit advertisements that they are willing to help families who can not afford to put their children into hockey. This is an amazing way to appeal topeople with a family. If the family can afford to put their child(ren) in hockey, they will gladly support Tim’s knowing that some of the proceeds from their purchases or donations will go towards a family whose child wants to play, but cannot afford it. That is a tremendous feeling, and Tim Horton’s knows this and uses this to their advantage.
The last demographic segmentation variable I think Tim Horton’s uses is age. This is simple but I feel like there is a little more to this variable than meets the eye. Only people of a certain age will drink coffee, basically no one under the age of 13 drinks coffee and once you become older it just becomes a place to hangout. For arguments sake let’s say they are targeting people between 16-65. I think that they are also targeting people above and below those numbers. The advertisements of children playing hockey and tobogganing are also appealing to the children themselves, and the grandparents. They may not be targeting the children and grandparents directly, but they still appeal to both age groups outside of the target market who can have significant influence on the people within the target age range.Starbucks Segmentation VariablesI believe that Starbucks uses age, social class and household income as their main segmentation variables. Age is a demographic segmentation variable and is important because only people of a certain age will drink coffee. Since Starbucks does not have the same appeal to family as Tim’s, Starbucks is mainly targeting people between that “16-65” (roughly) age group.