The KiwiCo Firm’s Market Segment Analysis

Current Primary Market Segment

I have conducted a thorough market analysis of KiwiCo and am eager to share my findings with you. After carefully reviewing the available information, it is clear that KiwiCo’s primary target market comprises parents of young children under the age of 18 (Gifts for Young Scientists, artists, and Makers, 2019). This company provides monthly subscription kits to cover various subjects, including STEM (science, technology, engineering, and math), arts and crafts, and early childhood education. This makes KiwiCo an ideal choice for parents, grandparents, and guardians searching for educational and engaging activities for their children.

KiwiCo’s offerings strive to create a favorable and harmonious environment for modern children, filling their lives with quality and safe things. This reflects the company’s belief that the early years of a child’s life are crucial for their health and development. KiwiCo aims to support parents in providing a nurturing environment for their children, providing hands-on learning experiences that will spark children’s natural curiosity and creativity. This helps children develop essential life skills and sets the foundation for future success.

Target Primary Market Based on Messaging

The target audience will likely be families looking for educational toys and activities that are fun and educational for their children. The messaging emphasizes the convenience and accessibility of the monthly subscription-based kits, which can be delivered right to subscribers’ doorsteps, making it easy for busy families to provide educational experiences for their children. The messaging focuses on the need for educational play that is engaging and provides hands-on learning experiences that foster creativity and critical thinking skills. The company understands that modern families are often busy and pressed for time, which is why it emphasizes the ease and convenience of having educational activities delivered right to their doorsteps. The target audience for KiwiCo’s educational toys is parents, grandparents, and guardians who prioritize their children’s education and growth and seek products that support that goal. With its focus on delivering educational experiences that are both fun and hands-on, KiwiCo’s target audience is well-positioned to appreciate the company’s offerings.

Primary Segments in Terms of Segment Characteristics

Behavioral Characteristics

The behavioral characteristics of KiwiCo’s primary segment can be seen as an indication of their values and beliefs. They believe providing educational and engaging activities for their children is a top priority and are willing to invest in experiences that will enhance their child’s growth and development. This commitment is evident in their willingness to spend money on educational toys and experiences that provide hands-on, interactive learning opportunities. These individuals recognize the value of hands-on, interactive learning and believe it is crucial to their child’s development.

Demographic Characteristics

KiwiCo’s primary segment is made up of parents, grandparents, and guardians of children who are under the age of 16. These individuals are highly concerned and involved in providing the best possible upbringing for their children, and they recognize the importance of hands-on learning experiences in shaping whom their children will bewhocome. They tend to have higher education and income levels, which makes them able to invest in educational toys and experiences for their children. These individuals lead busy lives with demanding careers and personal obligations, but they are also dedicated to providing the best possible opportunities for their children.

Psychographic Characteristics

The psychographic characteristics of KiwiCo’s primary segment are important in understanding the target market of their educational toys. This segment strongly values education and personal growth and is dedicated to providing its children with the best opportunities to learn and develop. They have a strong interest in hands-on learning and creativity and see the value in investing in their children’s futures. They understand that the early years of a child’s life are critical for their health and development, and they believe in providing a nurturing environment that will shape who their children become.

These values and beliefs align with KiwiCo’s mission of inspiring childs’ natural curiosity and creativity through hands-on learning experiences. The company’s monthly subscription kits, which cover a range of subjects, including STEM (science, technology, engineering, and math), arts and crafts, and early childhood education, are designed to support parents in their efforts to provide a positive and educational environment for their children. The convenience and accessibility of the subscription-based service appeal to busy and time-conscious families, who appreciate the ease of having educational and engaging activities delivered right to their doorsteps. Through their commitment to hands-on learning and creativity, KiwiCo’s primary segment shapes their children’s future and ensures they have a happy and fulfilling childhood.

Classification of the Primary Segment According to VALS Types

Based on the behavioral, demographic, and psychographic characteristics described, the primary segment for KiwiCo’s educational toys can be classified as the “Achievers” type according to the VALS (Values, Attitudes, and Lifestyles) framework. Achievers are highly driven, successful individuals who value achievement, education, and personal growth. They are busy and time-conscious but committed to providing their children with the best opportunities. Their willingness to spend money on educational toys and experiences reflects their belief in the importance of hands-on learning and creativity. Additionally, their interest in monthly subscription-based delivery services is consistent with the Achiever’s busy lifestyle and desire for convenience.

KiwiCo’s target audience of “Educationally-Minded Families” aligns well with the Achievers type in the VALS framework. These families are focused on providing their children with the best opportunities for learning and growth and are willing to invest time and money into their children’s futures (Edwards, 2019). They value hands-on, interactive learning experiences and are interested in subscribing to monthly delivery services that offer educational toys and activities. By targeting this segment, KiwiCo can meet the needs of families looking for educational and engaging activities for their children while also appealing to their values of achievement, education, and personal growth. The alignment of KiwiCo’s offerings with the values of the “Educationally-Minded Families” segment makes it a strong fit for this target audience and positions the company well to continue serving the needs of this segment in the future Market Segments.

New Market Segments

Groups that Could be Served Better

Based on my analysis, there may be opportunities for KiwiCo to diversify its customer base and better serve underrepresented or overlooked segments. Some segments that could be targeted include Low-income families, Rural families, and multicultural families. While KiwiCo’s current target market comprises parents, grandparents, and guardians with higher levels of income and education, a significant number of families would benefit from the company’s offerings but cannot afford the monthly subscription cost. By offering more affordable options or targeted financial assistance, KiwiCo could expand its reach to these families and provide educational opportunities for their children. Another segment that could benefit from KiwiCo’s educational toys is families living in rural areas. These families may have different educational resources and experiences than those in urban areas, making KiwiCo’s offerings even more valuable. By increasing its outreach and marketing efforts in rural areas, KiwiCo could expand its customer base and better serve this segment.

KiwiCo’s current messaging may not effectively resonate with families from diverse cultural backgrounds. By diversifying its marketing efforts and offerings to reflect the experiences and needs of multicultural families, KiwiCo could expand its customer base and better serve this important segment. Overall, by expanding its outreach and diversifying its customer base, KiwiCo has the potential to serve better families who are currently underserved or overlooked in the educational toy market. By addressing these segments directly, KiwiCo can continue to grow its business and positively impact the lives of children and families.

Frugal Parents

Behavioral Characteristics

This segment of price-conscious parents consists of individuals constantly looking for affordable educational activities for their children. They are typically on a tight budget, so the cost is a major consideration when choosing educational experiences for their children. They may have limited disposable income, so they are always looking for ways to stretch their budget while still providing their children with quality educational experiences. They value education and the importance of hands-on learning, but they focus more on affordability than convenience. These parents are often busy working and need more time to spend sourcing educational activities for their children. They may not have the luxury of paying premium prices for educational toys or activities and are looking for more budget-friendly options. Despite their financial constraints, they are still looking for educational and fun activities for their children. This segment can be appropriately named “Budget-Savvy Parents.”

Demographic Characteristics

This subsegment, named “Budget-Conscious Parents,” consists of lower to middle-income families with multiple children, often residing in suburban or rural areas. The common age for this segmentation is between 20 and 50 years. They need more access to educational resources and time, as work and childcare take up much of their daily routine (Brighouse, 2018). Despite financial and time limitations, they strongly emphasize their children’s education and personal growth.

Psychographic Characteristics

Frugal Parents are a demographic that places a high value on education and personal growth for their children but is also practical in their approach and prioritizes affordability. They recognize the importance of hands-on learning and creativity in child development. However, due to limited financial resources, they often have to be creative in finding ways to provide these experiences for their children. They are savvy shoppers and carefully consider each purchase, ensuring they get the best value for their money (CDC, 2021). Despite their budget constraints, Frugal Parents remain dedicated to providing the best opportunities for their children. They constantly search for affordable ways to enrich their children’s education and foster personal growth.

Rural Educators

Behavioral Characteristics

This segment consists of educators and school administrators working in rural areas. They are looking for educational activities and resources to enhance the learning experience of their students. They are interested in hands-on, interactive educational experiences that can be integrated into the classroom. They value affordability and convenience but are also focused on the quality of the educational material provided. These rural educators are also likely to be social and interact with most segments and sub-segments of the population

Demographic Characteristics

This segment, named “Rural Educators,” includes teachers and school administrators working in rural areas, typically in smaller, more isolated communities. They often need help providing educational opportunities for their students due to limited resources and remote locations. As a result, they are constantly searching for creative and engaging educational activities that can be easily integrated into their curriculum. Additionally, many of these rural educators have families of their own and are interested in educational activities for their children. They appreciate the convenience of receiving monthly subscription kits directly at their doorsteps and the hands-on learning experiences KiwiCo offers.

These rural educators value education highly and see the importance of hands-on learning and creativity in a child’s development. They are often willing to invest in educational materials and experiences that benefit their families and students. They also have a strong sense of community and may work together to bring educational experiences to their remote communities. This segment aligns well with KiwiCo’s mission of inspiring children’s natural curiosity and creativity through hands-on learning experiences, making it a potential target market for the company to explore.

Psychographic Characteristics

Rural Educators are an important segment often overlooked in the educational toys and resources market. These individuals place a high value on education and personal growth for themselves and their students. They believe in the importance of hands-on learning and creativity and are constantly seeking out new resources to enhance their students’ educational experience. They are practical and resourceful, always looking for ways to provide the best education possible with limited resources. They understand the importance of making the most of what they have and work tirelessly to ensure their students receive the best education possible. They are dedicated to their work and see the value in investing in their professional development.

These educators are often located in remote and rural areas, where access to resources and educational materials can be limited. Despite their challenges, they remain committed to providing their students with a well-rounded education that will prepare them for their future. They are often creative in their approach, making the most of what is available and finding new ways to integrate technology and hands-on learning experiences into their lessons. Rural Educators are a largely untapped market for educational toys and resource providers. By addressing this segment directly, companies like KiwiCo can impact the quality of education for students in rural areas. The company can support these educators by providing them with educational toys and resources that are engaging and educational for their students and help them in their professional development. By investing in the education of rural educators, KiwiCo can help ensure that the next generation of students in rural areas receives the best education possible.

Process of Market Segmentation

The process of market segmentation involves four steps: Identifying customer needs, segmenting your total market, and developing the profiles of target segments. The customer needs for educational toys and hands-on learning experiences is driven by parents’ and educators’ desire to provide children with opportunities for personal growth, education, and creativity. They want to give their children the best possible start in life and provide them with experiences that will shape who they become. The market for educational toys and hands-on learning experiences can be divided into subgroups based on demographic, behavioral, and psychographic characteristics. These subgroups may include parents, educators, grandparents, and others who have a vested interest in the education and growth of children.

Based on the subgroups identified in Step 2, target segments can be developed and profiled in more detail. The first target segment could be Rural Educators, who place a high value on education and personal growth for themselves and their students. They believe in the importance of hands-on learning and creativity and are constantly seeking out new resources to enhance their students’ educational experience. The second target segment could be Frugal Parents, who value education and personal growth for their children but prioritize affordability. They believe in the importance of hands-on learning and creativity but may need more financial resources to pursue these opportunities on a large scale. They are practical and resourceful, always looking for ways to provide the best for their children without breaking the bank. The target segments developed in the third step can be further refined through market research, customer feedback, and sales data analysis. This information can be used to validate the segments, identify key drivers and motivators, and inform marketing and product development strategies tailored to each target segment’s needs.

The Better Market Segment

Of the two market segments provided, it would be better for KiwiCo to target the “Frugal Parents” as they have the potential to reach a more diverse audience than “Rural Educators.” Studies also reveal that the market size for “Frugal Parents” is increasing while that of “Rural Educators” is decreasing. Based on the VALS types, Rural Educators would fall into the Idealist category, while Frugal Parents would fall into the Struggler category.

Recommendation

Table 1: A Simple Customer Persona to Present the New Segment

I recommend the “Frugal Parents” segment as the best target market for the company. This segment prioritizes affordability while still valuing education and personal growth for their children. They believe in hands-on learning and creativity and are practical and resourceful in finding ways to provide the best for their children while managing their finances. To serve the “Frugal Parents” segment, KiwiCo should make changes in their pricing and make their products affordable. Other positive changes it can make include easing accessibility, making its product durable, and increasing the versatility of the product.

The “Frugal Parents” segment can be considered attractive for KiwiCo due to the high value they place on education and personal growth for their children while also prioritizing affordability. They believe in the importance of hands-on learning and creativity and are always looking for ways to provide the best opportunities for their children without breaking the bank. This presents a significant market opportunity for KiwiCo, as they can offer affordable educational toys and align with this segment’s values and needs. To determine this segment’s attractiveness level, KiwiCo would need to consider factors such as market size, growth potential, profitability, and the level of competition. If the market size is large and growing, with a high level of profitability and limited competition, this segment is likely to be highly attractive. In conclusion, the Frugal Parents segment presents a significant opportunity for KiwiCo to expand its customer base and increase its market share, as long as it can effectively reach this segment with its marketing efforts and offer products that meet their needs and values.

References

Brighouse, H., Ladd, H. F., Loeb, S., & Swift, A. (2018). Educational goods. University of Chicago Press

CDC. (September 2021). U.S. Department of Health and Human Services

Edwards, L. (2019). Anti-bias education for young children and ourselves. Sage.

Gifts for young scientists, artists, and makers. (2019). KiwiCo.