Introduction
Market segmentation has become an increasingly popular concept in the modern world because companies want to target narrower audiences to increase customer satisfaction. This term can be defined as determining one or several market elements and serving consumers interested in this product (Camilleri, 2018). Market segmentation requires identifying a group of people with common interests, finances, and demands to offer them the service they need (Camilleri, 2018). For example, demographic segmentation involves dividing groups according to race, age, gender, religion, marital status, family size, income, and occupation (Camilleri, 2018). Indeed, it is beneficial for firms to work with a particular audience since research, planning, and organization become more focused. The charter superyacht industry is one of the examples of this marketing type because companies provide superior yachting experience to the affluent class (Batchelor & Williams, 2022). This industry is well-developed in various parts of Australia, where large sailing and motor yachts offer extraordinary journeys and personalized approaches.
Market Segmentation in the Australian Superyacht Industry
Australian superyacht industry provides high-quality vessels for various purposes to interested customers. Charter Yachts Australia corporation is considered one of the key players in this industry (Batchelor & Williams, 2022). Moreover, construction companies in Australia produce yachts for domestic charter use (AEC, 2017). The most significant expenditure for developing and building luxury yachts is in Sydney, South-East Queensland, Melbourne, Tasmania, and Whitsundays (Table 1). The larger vessels of 100-150ft have the highest capital value of $10 billion per unit, and each yacht have a one-to-one ratio of clients and crew (AEC, 2017). The superyachts are frequently rented for corporate events and family cruises by groups with a high disposable income (Batchelor & Williams, 2022). Overall, the Australian region seems perfectly suitable for this market due to uncrowded waters and high-quality manufacturing.
Table 1: Annual Spending for Superyacht Activity in Australia
Conclusion
In summary, market segmentation in the superyacht industry allows concentrating on the individuals and organizations interested in this service and capable of paying for it. In fact, segmentation simplifies firms’ task of investigating and targeting a specific audience. Superyachts are prevalent in such regions of Australia as Sydney, Tasmania, Queensland, and Whitsundays. Charter Yacht Australia is the largest company that offers its customers a personalized approach and large-high-quality vessels for family and business events.
References
AEC. (2017). Economic impact of the superyacht sector on the Australian economy [PDF document]. Web.
Batchelor, L., & Williams, R. (2022). Understanding the luxury charter yacht value proposition: Co-creating customer experiences. In T. Gladkikh, H. Seraphin, V. Gladkikh, T. Vo-Thnh (Eds.), Luxury yachting (pp. 31-53). Palgrave Macmillan.
Camilleri, M. A. (2018). Market segmentation, targeting, and positioning. In Travel marketing, tourism economics and the airline product (pp. 69-83). Springer.