Benefit‐feature segmentation: a tool for the design of supply‐chain strategy

Abstract

Purpose

This paper aims to assess the effectiveness of different segmentation schemes as the basis of marketing strategy, with particular respect to supply‐chain decisions, and to propose a new procedure capable of combining benefits sought and features available.

Design/methodology/approach

In a study of buyers and consumers of beef in Brazil, segments based on three approaches were derived by hierarchical cluster analysis, fine‐tuned by K‐means cluster analysis. The outcome was evaluated for the viability and actionability of the preferred procedure, both objectively and through interviews with managers in the beef‐supply business.

Findings

The results revealed that a segmentation scheme combining benefits sought and features available yields more homogeneous and actionable segments, and has real promise as an input to the formulation and implementation of supply‐chain strategy.

Research limitations/implications

This promising innovation in market segmentation requires further study, and testing in the marketplace.

Practical implications

The proposed system is a usable aid to decision making.

Originality/value

The paper proposes an original approach to market segmentation.

Citation

Duarte Canever, M., van Trijp, H. and van der Lans, I. (2007), "Benefit‐feature segmentation: a tool for the design of supply‐chain strategy", Marketing Intelligence & Planning, Vol. 25 No. 5, pp. 511-533. https://doi.org/10.1108/02634500710774978