Requirements on variables within industrial segmentation

University essay from Lunds universitet/Department of Business Administration

Abstract: Problem discussion: Industrial segmentation based on strategy requires a new course of action. How will overarching variables be chosen if the segmented objects change continuously? With which strategic sub variables will sub segments be created? Purpose: The theoretical purpose is to identify requirements on variables within segmentation of existing customers in industrial markets. Furthermore, it will establish which strategic sub variables that best capture the customers’ needs.The practical purpose is to analyse Tetra Pak Carton Ambient’s present segmentation. The objective is to improve the old model and to identify sub variables that make the model more detailed.Method: We have been physically situated at Tetra Pak Carton Ambient in Lund. An abductive approach to the problem was chosen. Existing literature from different industries of science was used to describe and analyse the company and its environment. Combined with the theoretical study an empirical study was done at Tetra Pak Carton Ambient, which was used as a case study. This included interviews with several of Tetra Pak Carton Ambient’s employers and customers.Conclusions: Involving strategy in segmentation creates new requirements. A company that continuously changes its strategy must allow these changes to affect the choice of variables for a segmentation based on strategies. The chosen variables have to be dynamic to visualise scenarios of a market of existing customers. This thesis found five strategic sub variables appropriate to apply on industrial segmentation.

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