Agroindustrial project analysi

THE MARKETING FACTOR 31product to these differences. 3 Geographic location often revealsethnic or regional taste differences: consumers in northern Thailandprefer glutinous rice, whereas consumers in central and southernregions prefer nonglutinous varieties. Age and sex of consumersare two other common segmenting variables-for example, weaningfoods for infants or protein- and calorie-rich foods for pregnantor lactating women. Another differentiating variable is incomelevel because effective demand and food preferences changeas income levels rise. This variable clearly affects product pricingand can easily affect other product characteristics. Market-researchdata from a study to determine the feasibility of marketing nutritionallyfortified cookies and crackers in a Central American countryis presented in table 2-1. These data are stratified by incomelevel and indicate the size of the package most frequently bought.The table reveals a difference between the high- and low-incomeconsumers: the low-income purchasers prefer smaller packages,probably because these consumers have reduced incomes andcash flow. In order to service the nation's large, low-income marketsegment, the product's packaging would have to be adjusted accordingto this analysis by the income-level variable. Another marketdifferentiation is between domestic and export consumersexportconsumers frequently demand higher product quality thando domestic consumers.In addition to being selected by socioeconomic or demographiccharacteristics, market segments can also be defined by their needs.For example, products can be viewed as necessities, status items, orconvenience goods, and this definition will influence their pricing,promotion, and distribution. A final segmenting method is byuser-for instance, industrial (bakeries, for example), institutional(for example, restaurants), wholesale or retail, or end-consumer.Market segmentation is used to identify potential consumersbecause an appropriate marketing strategy cannot be determineduntil the market has been defined. The consumer groups can besequenced into subsegments according to various descriptive characteristics,as in figure 3, or organized into matrixes, as in figure 4.3. ssi's based in rural areas should first assess local needs and ascertainwhether the rural market might be sufficient without having to tie into urbanmarkets. Meeting local needs might increase the regional development effectof the agroindustry.