A Study of Market Segmentation for Uk Frozen Food Industry Essay

A Study Of Market Segmentation For UK Frozen Food Industry Abstract The objectives of this study are to perform market segmentation for a SME in the frozen food sector. The study could form a basis of segmentation framework for a SME like Eden Farm, the framework once developed from academic literature would help to undertake a market segmentation in the frozen food industry with relevant segmentation criteria which would form a basis of targeting strategy for the company. In this Dissertation, the literature on Market Segmentation is reviewed and relevant criteria for segmentation in an industry are understood. The typology from the literature identifying the variables for segmentation and relevant strategic tools for analysis of the sector is used to develop a framework for segmentation in the industry. The framework is applied to carry out a detailed segmentation of the markets for frozen food, an analysis is carried out to understand the target markets and strategic tools used to identify the target markets. Along with the segmentation of the markets, an analysis of the results is carried out and recommendations are provided for strategic growth of the company. Contents Abstract3 Acknowledgements3 Introduction3 Definition of the Company’s Issue3 Aims and Objectives of the Project:3 Literature Review:3 Review of Academic Literature for Segmentation:3 Market Segmentation:3 Definition of Market Segmentation:3 Segmentation Logic:3 The Segmenting-Targeting Framework:3 Segmentation Variables:3 Segmentation Criteria:3 Academic literature:3 Literature Review on segmentation in the food industry:3 Portfolio Analysis:3 Final Framework for addressing the Research Question:3 Research Methodology3 Research Objectives3 Research Approach:3 Research Strategy:3 Ethical Issues in Data collection3 Recommendations:3 Implementation Issues:3 Critical Reflection and Conclusion:3 Review of Work Process:3 Reflection and critical analysis of the process:3 Limitations of the process:3 Conclusion and discussion of results in an Academic context:3 Bibliography3 List of Tables Page Table 1 Detailed Breakdown of Frozen Food Products37 Table 2 Recommended Customers for EF49 Table 3. a Market Attractiveness for Segments49 Table 3. b Market Attractiveness for Segments50 Table 4 Business Competitiveness Scores for Various Segments50 List of Figures Page Figure 1Market Share for frozen food34 Figure 2Frozen food market share by manufacturers36 Figure3Frozen food market share by products36 Figure4Comparison of market shares of products37 Figure5Market trends for desserts38 Figure6Convenience store sales40 Figure7Convenience store market share40 Figure8Sales of Eden Farm by Market Segment41 Figure9Sales Trends in catering47 Figure10DPM Matrix49 Introduction The project report considers customer segmentation for the frozen food industry and evaluates the opportunities for targeted growth in the sector for Eden Farm, a UK based distributor of frozen food. The retail food industry is dynamic in nature and is very competitive for the distributors. However, growth opportunities exist in the sector when a thorough analysis is carried out and the targeted segments are evaluated. Hence, the study identifies growth strategies in the sector by using segmentation framewor k and relevant analysis. Definition of the Company’s Issue Eden Farm is a distributor of frozen food and ice cream across UK with a strong base in the North East and Yorkshire. The company’s prospect market is wholesale, cash and carry, symbol groups, CTN’s, forecourts, independent supermarkets. At the moment, the company is trying to increase its market presence in various sub sectors of the market. The frozen food retail is represented by many sub sectors and is composed of many market players. The business on the whole is variable across sectors and the levels of risk and opportunities for each sub sector and product is variable in nature.