1. Segmentation Process
Step 1: Group consumers according
to their “needs”, “benefits” they
seek from the product and
occasions they use the product.
Example, shampoo users:
•Segment 1: people who care about hair loss
•Segment 2: people who care about hair smell
•Segment 3: people who care about hair style
Step 2: Do a persona analysis.
Identify a typical consumer from
each segment based on
demographics (age, gender,
location) and lifestyles (hobbies,
spending habits, media use, etc.).
Step 3: Asses the attractiveness of
each segment
•Segment size
•Availability of the alternatives for the
segment
•Segment growth rate
•Segment profitability
•Segment match with the brand
•Strategic importance of the segment

2. Selection of Target
Segments
New Target Segment
Market Penetration
Focus on the same segment or
a segment similar to your
current customers. Get more of
the same type of customers.
Market Diversification
Focus on a segment you have
never targeted before. Get
different types of customers.

3. Persona Analysis Example
Meet Hanako Yamada… (a typical member of the
target)
 She is 35 and lives in downtown Yokohama with
her 2 children and her husband.
 She is a housewife and she takes flamenco lessons
on weekends.
 She reads Elle. She doesn’t read any newspapers.
She watches London Hearts and she is a fan of
Kimura Takuya.
 She has a Mixi account. She also uses Cookpad
once a week.
 Her household income is 800万 a year and she
drives a minivan.
 She buys her groceries from Daie and Costco. She
spends 10万 every month on fashion clothes.
 Etc. (Image source: Microsoft)