Case Studies

Simple segmentation to guide direction

30 January 2025

Background

How do you segment the market without over-investing or over-complicating?

We were engagement by the marketing agency for a leather-goods manufacturer to provide insights to guide the next stage of their growth. They were

With limited marketing budget, (let alone budget for investing in research), it was important to make every dollar spent work as hard as possible. Moreover, with a business still early in their growth trajectory, the results needed to be simple yet powerful, guiding direction without over-complicating.

This meant the client needed a simple segmentation to guide direction of marketing efforts (and product development).

Approach

We deployed a survey of those interested in leather-goods, seeking to understand four broad areas:

  • Their views toward and engagement with the category
  • Their engagement with brands
  • Their response to the client’s brand proposition specifically
  • The media channels they use for inspiration, and general media consumption

A segmentation was developed, with a priority given to the orientation toward the brand, overlaying broader category engagement and spend. This identified four broad segments within the market. Two of these segments were deemed a priority given high levels of category engagement, and strong brand appeal.

Result

By using this segmentation layer, we were able to identify several key insights:

  • which channels to focus on,
  • which messages to lean into, and
  • which categories of products
  • to resonate with the highest value and greatest potential segments.

These insights gave the agency and the client direction on where to spend media budget and how, to maximise efficiency of spend. Every marketing dollar can spent in the pursuit of the customers with the greatest potential for purchase of the client’s brand. This simple segmentation to guide direction can reduce total marketing spend, by a small research investment upfront.

Moreover, a wider suite of metrics within the survey helped guide future product development. Specifically, we identified new categories of leather-goods of most interest to the market where our client did not have a presence. This has helped inform the market expansion strategy. The brand can find ways deepen the relationship with their customers, and play a greater role in their lives. Such a strategy then allowed laddering up into purchase not only for self, but also a strong gifting strategy. This can ultimately create more opportunities for purchase across more categories. Such an approach is vital for a brand manufacturing such high-end goods, given the brand’s quality and single-purchase nature.

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