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Market Segmentation, Targeting and Positioning

A. Market Segmentation

The distinction of one segment from another in terms of needs, characteristics,

interests and values necessitates dividing the market into segments, as these
differences will greatly influence the responses and attitudes of people towards
the products and services offered by PantSaloon.

Market segmentation was conducted in order to select the group of people who
will be most receptive to the products and services offered by PantSaloon.

The market for consumers was segmented based on their geographical,

demographic, psychographic, and behavioral indicators that influence their
purchases for jeans.

Geographic Segmentation
PantSaloon is focused on the distribution of population within the Diliman and
Katipunan communities. These include academic institutions like University of
the Philippines - Diliman, Ateneo de Manila University and Miriam College, and
nearby residential villages and subdivisions like Teacher's Village, La Vista,
XavierVille Subdivision, Loyola, Blue Ridge and White Plains. Recognition of the
characteristic within the area of location is important to the company because
the students and residents of these schools and communities generally tend to
share similar values, attitudes, buying capacity and style preferences.

However despite the similarities, significant differences still exist among these
residents because of differences in their culture, social customs, upbringing, and
other factors. Hence, other factors need to be considered.

Demographic Segmentation

PantSaloon also looked into the demographics to segment the market. The most
popular characteristics used in combination here are age, family life cycle stage
and income.

Age. PantSaloon segmented the market to cater to 17 – 29 year-olds. The reason

for this is that this segment shows the highest demand for Pantsaloon’s

Primarily composed of college students and young, urban professionals

(yuppies), this age segment is the most prominent user of jeans. With a myriad
of jean brands in the market, catering to college students and yuppies appear to
be one of the most lucrative trends in the jeans industry.

Life Cycle Stage. Demand for goods and services change over time to adapt to
a likewise changing needs and want of people. Hence, there is a need to
segment the market based on their current life-cycle stage.

A bachelor, having no family to support and most probably still under the
custody of his parents, is more inclined to make purchases for himself, and
clothing is definitely included in his expenditures. This being the case, the
Bachelor stage seems to be the most appropriate for the product PantSaloon
offers. Young, single, individualistic and independent, the Bachelor is definitely
made for PantSaloon.

Income. The consumer’s level of income is an important factor in the profiling of

PantSaloon’s market because it provides an effective indicator that would reflect
the buying power and spending habits of the students for whom the products are
made for.

The growing purchasing power of this age bracket is the primary factor making
this age bracket attractive. For yuppies, the trend is being fuelled by higher
disposable incomes resulting from more generous allowances and salaries. On

the other hand, college students opting to work part-time during schooling, and
heightened media awareness augments their purchasing power.

Occupation and Education. PantSaloon segmented the market to college

students and young professionals. For the purpose of embodying what the
individualistic youth is, this segmentation is important because PantSaloon’s
products and advertising will be more concentrated on them.

Psychographic Segmentation
The types of products and brands an individual purchases reflect that person’s
characteristics and patterns of living. Pantsaloon, in evaluating the
psychographic segments of the market, divided the group based on personality
characteristics, lifestyle, and values. These attributes were examined and
eventually related to how an individual in the market thinks, feels, and behaves.

Personality Characteristics. The college student and yuppies market is a

dynamic and extremely competitive environment. Though there are plenty of
opportunities for new entrants and a great scope for innovation, the target
audience is extremely hard to please.

Media influence, including fashion, television, the Internet and music, make the
market savvy about what they want. Quality will unlikely be compromised, and
approach to brand loyalty is erratic.

However, the nature of PantSaloon’s enterprise being customization, it won’t be

difficult for the business to keep up with the market’s unpredictability. Changing
fashions won’t be much of a problem, as jeans have become a staple piece of
clothing, and only their styles change through time. This quick shift from one
style to another is a strength that PantSaloon can play up.

Having the products and services evolve with the moment, together with
extensive and focused marketing efforts, PantSaloon hopes to retain the interest
and loyalty of the market in consideration.

College students and yuppies, at their young age, are attracted by fun,
glamorous and distinctive brands. Finally, while they have a strong desire to be
like everyone else, they still have a very strong need to express their

Lifestyle. As mentioned previously, the target market combines a desire for

belonging and a need to express their uniqueness. Joining the bandwagon is
prevalent among them, with cliques and barkadas being a common thing in this
age bracket. In fact, people are usually first identified with the group of people
they hang out with before they get to be recognized as individuals.

The trends dictated by society, media, and the people around them influence
their lifestyle and behavior, and being updated with the latest in fashion, music,
movies, electronic gadgets and the like is as important as expressing their
individual selves.

Behavioral Segmentation
Benefits Sought. The survey showed the importance of several characteristics
considered by college students and young adults in buying pants. The data was
tabulated according to rank.

Factors that Buyers Look in Purchasing Pants

pocket design

0 50 100 150 200 250 300

Figure 4 | Factors that buyers look in purchasing pants

In some other aspects, the group of people who answered survey responded the
following designs that they look for in their pants.

Particular Designs Liken By Potental Buyers

54, 13%
81, 20% distressed /

45, 11% stone / acid washed /


c embellished

45, 11%

176, 45%

Figure 5 | Particular designs liken by potential buyers

Usage Rate. Much like everyone else, college students are regular users of
pants. Jeans, classified within the clothing category, are commodities/necessities
that are a part of everyday life.

Frequency of Pants Usage


200 205


50 53 1

Almost everyday Once or twice a week Seldom No Response

Figure 6 | Frequency of pants usage

The level of usage that college students make of pants is HEAVY. According to
the survey conducted, 75% use pants almost everyday, pushing them to
purchase 4 pants annually.

Buyer Readiness Stage. 81.91% of the respondents of PantSaloon’s market

survey indicate that they are willing to render the custom-making of pants
service. This segmentation model will be particularly useful in formulating and
monitoring the marketing communication strategies PantSaloon will employ to
move consumers towards purchase of a product or brand.

B. Market Targeting

Market targeting is the process of evaluating and selecting segments of the

market that PantSaloon will target and focus on. There are different things to
consider in selecting the target market: Is this segment large enough to result to
a profitable venture for PantSaloon? Are the products offered at PantSaloon
suitable to their needs and interests? Who are the competitors for this market
segment? After assessing all the segments and answering these questions, it is
now time to select the market with the greatest potential.

PantSaloon is a clothing service shop specially designed for the jean design and
fitting needs of (1) college students and young adults who are between the (2)
age of 15 and 24 years old, (3) both men and women, particularly those who are
(4) residents and/or located in institutions within Katipunan Area.

Essentially, college students, specifically from Ateneo de Manila University and

UP-Diliman, do not have school uniforms. Thus, denim jeans have been a staple
clothing item for them. But with different body structures as well as different
tastes in denim jeans, PantSaloon aims to address their dilemma on those
differences. Furthermore, individuality is important to these particular
individuals, thus PantSaloon’s concept of customization would definitely cater to
their need of distinctiveness.

On the other hand, young adults have this need of uniqueness and standing out
among others. They make sure that they are distinctively different from others,
whatever it takes. Having their own source of income lets them address this

Both college students and the young adults have tendencies to find their niche
where they are very much comfortable with. In fashion, they often hop in styles
and land to choose the kind of style that represents their personality the closest.
They are also very much concerned with fashion trends and are willing to try
something new. This kind of buying behavior understanding of the targeted
group helps the entrance of PantSaloon in the market. The idea of launching
customized jeans packaged in a cool and hip way and manufactured in a bright
store, as oppose to the dark-roomed tailoring shops, will thrill them.

Students and young adults are very particular with the type of clothing they
purchase. They look into fit, comfort and design among other elements in
choosing the perfect pants for them. And this is what PantSaloon is providing to

Pants are generally worn by both men and women. EALA wants to focus on both
needs since they don’t differ much, anyway. In fact, because of sexual
independence that is apparently growing these days, men and women wear
clothing designed for them interchangeably. A universal need for jeans has been
apparent through the years which both sexes enjoy sharing with. Because of
this, PantSaloon is coming up with designs that may work on both sexes. The
flexibility of the designs of PantSaloon will prove that jeans are never labeled
based on sexes or gender, rather on fitting and personality.

PantSaloon subdivided the market into location-based segments (residential

areas proximate to the location of the proposed business) because this
geographic measure is quantifiable and accessible. The distribution of population
in these areas is important to the company because the market within these
areas generally tend to share similar values, attitudes, and style preferences,
given that they are in the same level of social class.

C. Market Positioning

PantSaloon will be established as a customized jeans maker

For college students and the young adults,
that offers flexible, unique and creative jeans
with perfect fitting and comfort
to the level of the customer's choice of fabric, cut and over-all design.

It is PantSaloon’s advantage to become a specialized clothing servicing store that

will emphasize wide-ranged creative designs, styles and fabrics along with the
perfect fit and comfort to the customer.

PantSaloon will be known for its uniqueness, flexibility, creativity, and

innovativeness. These youthful characteristics will make the whole perception of the
store away from the tailor shops that are usually associated with being stiff and

PantSaloon is taking the Less for More strategy in defining its competency in pricing.
Viktor Jeans has been making waves in the same market but what will make
PantSaloon apart from Viktor is its competitive designs and quality at an affordable
price. This will be highlighted because the target market, students and young
adults, cannot afford prices such as Viktor’s.