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Market Segmentation Analysis and a Value Proposition

The concept of Daylesford Organic Farm

Daylesford Organic Farm (set up in the Cotswold Hills, Gloucestershire in the UK) was established by Carole Bamford and revolves mainly around a working organic farm with a highly respected creamery, a bakery, farm shop, and a café. The organic farm is well reputed with lots of vegetable ranges grown for sale in the farm shop and a lush organic pasture at the farm, serving a herd of native Gloucester cattle and sheep to enhance milk production used in the creamery. Similarly, the farm shop and café (located in a beautiful barn with traditional stones and timber beams) at Daylesford are well known for fresh vegetables, fruits, cheese, and quality food basic for country life – all under one roof (Dangour, Dodhia, Hayter, Allen Lock, & Uauy, 2009, p. 684). At the café, for instance, wide food selections, from brunch egg benedicts to afternoon tea, are served from their own produce and organic artisan, translating into the well known Daylesford farm café cuisine. When the weather suits, one can book in for the farm’s chief prodigy Tom Alken’s Supper Club on specified dates throughout the year. The Garden room is all horticultural, with a beautiful traditional barn and econ-friendly heating and lighting system. The Haybarn at the farm provides yoga class space with well spread yoga mats, t-shirts, and necessary oils and candles. Combined with a clearly talented chef and fine-dining ethos, the culinary offerings at Daylesford epitomize the value of foods and products produced organically and extending the same to the US-based restaurants will definitely be a game-changer.

Potential Market segments

Basically, a market segment can be referred to as a market subdivision based on some commonalities, similarities, or even kinship. These market subdivisions concentrate marketing forces on a specified market operation to gain a competitive advantage within a target consumer base. The rationale for marketing strategy is to concentrate all marketing efforts on a specified market segment. An ideal market should be large to ensure profit maximization, have a consistent response to different market stimuli, and easy access at cost effective rates (Biggadike, 2011, p. 622).

Geographical segment

This is practiced mostly, where the company segments the market by raiding a strict geographical location with high potential of product acceptance. The company concentrates on a limited geographical area to realize concentration of market force, for instance in the West North Central, Pacific Mountain, and in New England (Biggadike, 2011, p. 624). For instance, the company may decide to market its cheese products only in the Pacific Mountain or eggs products in the Pacific Mountains. Geographical segments surrogate other forms of segments. 

Distribution segments

This entails segmenting specific company’s products under one brand name for distribution in the market. The essence of this is to gain sufficient distributional channels in the expensive market chain stores in the market (Biggadike, 2011, p. 624).

Price segmentation

Different households’ incomes vary greatly, and this enables certain markets to be segmented along price dimensions (Biggadike, 2011, p. 625). Depending on ranges in personal incomes, the company should produce relatively cheaper products, medium priced, or expensive products to cater for parities in the purchasing power of the consumers.

Demographic segments

A market population comprises of different gender, age, literacy level, and housing conditions which constitute the demographic characteristics of a market segment. For instance, some food products are targeted only by women and some others only by men; so, the company should have prior knowledge of the dominating preferences of the genders in a population before releasing a product to the market (Biggadike, 2011, p. 626).

Time segments

Time segmentation is very much effective although it is not commonly practiced. The company should be in a position to determine what kinds of food products to sell at different times of the year. For instance, the company should know when the demands of cheese products or creameries are highest at different times of the year (Biggadike, 2011, p. 627).

Psychographic (lifestyle) segments

The company should carry out an analysis of multivariate components of a consumer’s attitude, emotion, value, and practices. The firm’s brands produced must be such that they are consistent with the lifestyles of consumers. For instance, maintaining fresh vegetable supply to a population that is predominantly vegetarians (Biggadike, 2011, p. 628).

Benefit segment

The company segments the market depending on the convenience, security, and pleasure that the consumer is seeking to derive from the company’s brands.

The Value Prepositions

Value preposition statements highlight the benefits that a company’s products have in terms of value or service rendered to customers in comparison to other products from rival companies in the market. The most attractive market segment is identified and a true value preposition is determined, allowing the company to improve benefits and successes in the key segments for customers’ satisfaction (Debo, Toktay, & Wassenhove, 2005, p. 1199). A company’s value preposition stipulates a set of benefits that it promises to render to its customers; for instance, a discount on certain products, special and high quality products, prompt free product delivery services, and eco-friendly product wrappers. Such value prepositions create a clear cut difference between brands and leave the customer with a difficult choice in determining whether to buy the company’s product or a rival company’s brand (Debo, Toktay, & Wassenhove, 2005, p. 1195). The value preposition in a company must therefore be strong to give them a competitive advantage in the target client base. The company should also capitalize on the different product differentiation strategies (physical attribute differentiation, service differentiation personnel differentiation, location differentiation, and image differentiation) to help customers in making informed reliable purchasing choices. This will create a difference in products and distinguish them from those of a rival firm.

For instance, the company’s salesperson, when asked why the company’s products price offerings are higher compared to rival companies, the salesperson should base his value preposition on the quality of the product and make the customer realize that the prices are worth the quality of products. The benefits that customers derive from the company’s products are in the form of value preposition, where the company constructs a simple list of benefits that their products might bring to the targeted customer base.


All decisions which relate to the company products must be considered carefully as they will impact on the company’s long term successes. Designing attractive brands will definitely attract a loyal customer base, and unique product features will definitely differentiate the company’s products from those of a rival firm. High quality products will similarly strengthen the company’s reputation. The firm must therefore deliver on the brand promises and be consistent considering all market segments.


Biggadike, E. R. (2011). The contributions of marketing to strategic management. Academy of Management Review, 6(4), 621-632.

Dangour, A. D., Dodhia, S. K., Hayter, A., Allen, E., Lock, K., & Uauy, R. (2009). Nutritional quality of organic foods: a systematic review. The American journal of clinical nutrition, 90(3), 680-685.

Debo, L. G., Toktay, L. B., & Van Wassenhove, L. N. (2005). Market segmentation and product technology selection for remanufacturable products. Management Science, 51(8), 1193-1205.