Customer segmentation in the charter bus industry

CASE de Larrea, G., & Gregory, A. M., (2020). Customer segmentation in the charter bus industry. In SAGE Business Cases. SAGE Publications, Ltd., https://dx(dot)doi(dot)org/10.4135/9781529798470 **Only responsible for number4) Does the case provide you sufficient data to adequately address the questions 1) and 3). What data did you find particularly useful? What types of data did you find lacking? Be specific. · Review the grading rubric below to ensure that you all understand how your work will be assessed. The paper must be based on your learning in the course. Draw from your assigned readings thus far and utilize quality reference sources. · Do not write out the data in sentence format. Use a table or chart and highlight the data when presenting data. · Formatting and style guide is APA · Ensure that all sources are properly cited within the text and is referenced appropriately at the end of the paper, including course materials. CASE QUESTIONS Ø Achieve the week’s learning objectives through the application and analysis of your learning to this case Ø Instead, based on your assigned reading in this course thus far, analyze the case based on your learning of business strategy, value proposition, marketing strategy, segmenting, targeting customers and position of the firm offerings. You must create an integrated paper that demonstrates your ability to integrate the various topics. 1) Construct a customer archetype of each of the target segments that the Escot Bus Lines currently operates by applying demographic, psychographic, behavioral elements 2) Based on your analysis of each of the segments construct a value proposition canvas for each segment. 3) Based on your analysis of 1 and 2 above recommend a positioning strategy for each segment. Apply your learning of Positioning Maps to support your recommendation. **4) Does the case provide you sufficient data to adequately address the questions 1) and 3). What data did you find particularly useful? What types of data did you find lacking? Be specific. Parts that already worked on: Customer Archetype Market segmentation refers to a consumer-oriented process that can be used in various markets. Therefore, as stated by the e-text, marketing managers can gain insight into client demands and desires by segmenting the market based on relevant customer traits to the firm's value proposition (Marshall, 2022). Escot Bus Lines serves many different segments, but the top customer segments that make the biggest contribution to ESCOT’s profit margin are tour operators, public schools, universities, and corporate clients. The following are the customer archetypes for each segment based on demographic, psychographic, and behavioral elements (de Larrea & Gregory, 2020). Tour operators are the most important customer segments contributing to 27% of the profit margin. Demographics: This is a mature industry so the age range varies since it has been the main source of transportation for tourists within a destination. Psychographics: This group is mainly destination-oriented, adventurous, pursuing leisure while traveling, vacationing, seeking convenience, and hassle-free since they book the service along with vacation in advance. Behavioral: In this group, usually, travelers plan their trips using online platforms seeking packages. Hence, they are price-sensitive, looking for convenience and experiences (de Larrea & Gregory, 2020) (Marshall, 2022). Consumer Archetype -"Tour Operators Gurus” Who: visitors and travelers of various ages. What matters to them/values: Destination-oriented, adventurous, looking for ease and hassle-free experiences. Who/what influences them: Prefer internet platforms for travel planning, price-sensitive, and value unique experiences. Second, public schools contribute 15% of the overall company’s profit margins. Hence, their business is important to ESCOT. Their archetype is: Demographics: mainly students ranging from elementary to high school, teachers, and depending on the level of education. Since it is a public school, the background of this group may differ. Psychographics: educational, field trips, and out-of-school activities are the main purposes for using charter bus services. Therefore, they would demand affordable packages, flexibility, and punctuality. Behavioral: This group may choose to do many school-related trips at different times of the school year so as mentioned in the case, charter bus services will be competing through a bidding service to gain three years of the contract. Hence, the a need for competitive pricing, availability on short notice, and safety since it is children who will be traveling on these trips (de Larrea & Gregory, 2020) (Marshall, 2022). Consumer Archetype- "School Trip Traveler" Who: children, instructors, and parents. Values/ What matters to them: Prioritize cost, flexibility, and punctuality while planning educational travels. What influences them: Require fair pricing, short notice availability, and a focus on child safety during travels Third, moving onto the university customer segment contributing to 9% of overall profits, the group is very important as funds are increasing after the recession. Demographics: mostly college students, professors, and academic staff/faculty with age ranges and backgrounds varying from teens to older adults. Psychographics: their lifestyles include educational trips, sports, faculty meetings, and intellectual events. Thus the group heavily prioritizes sensitive pricing due to government funding. Behavioral: This group needs transportation for sporting/extracurricular events, academic trips, and conferences. Since they do receive government funding, they may value discount packages and flexibility since it is college-related with larger groups of students (de Larrea & Gregory, 2020) (Marshall, 2022). Consumer Archetype- "University Explorers" Who: students, professors, and academic staff/faculty. What matters to them: educational tours, sports, intellectual activities, and value-sensitive pricing thanks to government funding. Important values: Need transportation for numerous university-related events; want discount packages and flexibility. Last, corporate clients contribute to the final 11% of ESCOT’s profit margins. Now to keep the previous groups in mind, this group varies because they are not very sensitive with pricing and accommodations. That is: Demographics: Professional employees and clients which could vary from managers to leadership to team members. Age may also vary from new joiners as young as 18 to senior leaders. Psychographics: Lifestyles such as corporate, business-oriented individuals with professional settings and needs for using a charter bus. Behavioral: books transportation for meetings, conferences, team events, etc- but prioritizes planning and punctuality since they use the services during weekdays. Also, they are not price sensitive as quality is more important for this group and its needs (de Larrea & Gregory, 2020) (Marshall, 2022). Consumer Archetype- "Corporate Masters" Who: professional employees, managers, leaders, and team members. Demographics & values: Business-oriented, stress quality above money, emphasis on preparation and punctuality for corporate events. What influences them: Prioritize quality and accommodations for meetings, conferences, and team gatherings, rather than costs.