The Capsim courier: Segment Analysis

Segment analysis is the process of dividing markets into subgroups with distinct characteristics to understand consumer behavior. A capsim simulation is an experiment in which the system must make decisions about what to do in business decision making with the instruction of the capstone simulation learners. The capsim courier: segment analysis is a report of the different market fragments in the previous capsim simulation round. Experience the best tutors’ services by visiting our website and placing your assignment orders. Place your ORDER NOW.

The Capsim courier

The capsim courier is an industry report which gives the details of the capsim simulation business in the previous round. The capsim courier has several parts which we discussed in the previous articles. Some of these components of the  capsim courier include the front pages, the financial reports, stocks investment reports and the production reports. In this blog post we focus on the segment analysis report.

Why Capsim Simulation?

The idea behind this type of simulation is that the system must be able to carry out a decision on its own when no human has given it any input. Capsim simulation is a popular and effective learning tool for business students and graduates. Capsim simulation is a learning tool that helps them to practice and perfect their skills in conducting various tasks such as: strategic planning, market research and cost management.

Management simulations are used in business school capstone courses for the competitive intensity they give as well as the benefits of transitioning from the actual world to the hypothetical one, allowing students to make life-like corporate choices in a risk-free simulated context. These courses frequently incorporate a range of case study methodologies in addition to simulation.

Case studies include:

1) published research works

2) surveys of companies that fund business schools

3) real – life case studies, some of which are presented via simulated world or an analyst approach to address a current business problem at an internship or other company that provides access to pro forma reports.

Students use the published case technique to examine long documents that detail a company’s historical difficulties and statistics. Students then put what they’ve learnt in class about strategic analysis to use.

What is the essence of segment analysis?

A segmentation process is the process of identifying the relevant consumers for a certain product or service. It can be used to analyze who is buying what, which products are selling well and so on. The segmentation process can be used to identify users by their demographic information, interests and personal information such as location, age group, etc.

Market segmentation involves dividing the market into several functional parts such as geographical , demographic and behavioral target markets. Geographical segmentation is the physical division of the markets into regions, districts or countries. Demographic segmentation is the division based on the population distribution of the target market. Behavioral segmentation is the segregation based on consumer purchasing patterns and behavior.

It can also be used to identify their purchasing behaviours and preferences so that they can target their advertising based on those data. Segmentation enables us to identify different segments of any market or industry. In the absence of segmentation, you need to do an analysis step by step for each type of market or industry and then come up with a complete strategy.

Just like with sales, advertising and marketing strategies, the same principles should be followed in order to create a complete segmentation strategy. It is a key part in the overall marketing strategy of companies, because it helps them in defining the customer’s needs and defines what products or services, they should offer to them. The idea behind segmentation is to identify customers who are most likely not going to purchase your product or service. Website visitors, for example, tend not to buy products or services from people whom they don’t know (i.e., strangers).

The capsim courier: Segment analysis Chart

The segment analysis chart is  a visual representation of the findings of segment analysis. The chart contains both qualitative and quantitative measures of consumer patterns in the capsim simulation business. The segment analysis chart is a combination of the following charts:

Accessibility Chart

The accessibility chart reveals the reachability of each company with regard to their sales budget. In this case, high sales budgets translate to greater accessibility rates. Accessibility rates are recorded in percentages. For example, an accessibility rate of 100% shows that the company is completely open and reachable by all customers in its target market.

Actual market share vs potential market share chart

The actual chart represents the exact market percentage attained by each company while the potential chart is a projection of the market share capacity of each firm. If the potential percentages are higher than the actual percentages, then this is a sign that the company is sleeping on its potential. The management needs to overlook the causes of low actual values compared to potential values to curtail underperformance.

If the actual market percentage is greater than the potential percentage, it means that the company is performing way better than expected. The firm could have posted higher sales if the competitor firms ran out of stock.

The customer buying criteria

The capsim courier segment analysis also describes the customer buying criterion. The purchasing patterns of customers are determined by several factors such as geographic, demographic and price-related factors.

So how is segmentation done based on the factors above?

Geographical Segmentation

Understanding the environment in which the consumer resides is essential to segmenting customers by region. Needs vary depending on your physical surroundings; for example, someone living near an ocean may purchase products to help them withstand natural calamities such as cyclones and tsunamis.

People who live inland, not near water, or who have never experienced a tsunami are less likely to be concerned about such issues. Understanding a customer’s surroundings helps businesses to design new goods depending on their location, but it may also reveal whether a business wants to expand in that area.

Demographic segmentation

This segmentation is based on age, gender, education, race, and other factors. It’s the simplest segmentation in market segmentation analysis, and it defines how and what we buy depending on who we are as individuals. The purchasing patterns of consumers are mostly determined by their age and gender . Analyzing the purchasing behaviour of consumers in capsim simulation is crucial in making viable marketing decisions.

Price segmentation

Another typical segmentation utilized in market segmentation study is price segmentation. Income is a major determinant of pricing segmentation . Personal income has a significant influence on what individuals buy, the price they are willing to pay; those with a greater personal income may afford to spend on luxury items, whilst those in the working class are more inclined to store money for the future .In simple terms the income of individuals impact their purchasing power and consequently affect the overall consumer behaviour.

The top products segment

The best performing products are ranked in this section. The ranking of these products depends on some factors highlighted below:

Market share- The number of customers purchasing these products from the target market

Proportion to the total sales- the percentage of the product sales compared to total revenue

Accessibility- whether the products is reachable by consumers and potential customers

Customer service score- these scores are used in comparing the performance of competitor firms. Acceptable and healthy customer scores should range from 50 and above.

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