Demographic segmentation is the grouping of a market based on identifiable customer attributes like age, gender, religion, social status, and education, among others. This demographic segmentation example is on popular companies worldwide.
Demographic Segmentation Example
1. KFC
In market segmentation, KFC is also informed by the identity of customers. This is why the fast food chain prepares food for vegetarians and non-vegetarians. By segmenting customers into vegetarians and non-vegetarians, KFC can make food people like from either divide.
KFC is also known for segmenting its market according to the social status of its customers. KFC features a menu for families, couples, and even individuals. It is an effective segmentation approach that attracts customers regardless of the social unit within which they want to enjoy food at KFC.
2. Land Rover
Cars manufactured by Land Rover are meant for the luxury segment in the car industry. The company targets people in the upper class of the economy. These people want to drive around in luxury, assured by different car models sold under the Land Rover brand name.
Land Rover also segments its market based on family size. Land Rover models like Range Rover Full Autobiography can carry only four passengers, while Defender 130 can carry up to eight passengers. This segmentation is meant to provide luxury family cars for small and large families.
3. Visa
Visa is a famous company in the payment ecosystem. It is a company that does not work directly with customers. Instead, Visa works in partnerships with banks. It is the middleman linking customers and their banks. It enables transactions from one person to another through their banks.
Visa uses income as the basis of its demographic segmentation. The company targets people who have an income. Targeting people who have an income implies they will use banking services for payment transactions. The core business of Visa is to create an infrastructure enabling seamless transactions from one end to another.
4. Hyundai
Alongside other market segmentation bases, Hyundai uses age as a segmentation factor. For instance, the N-Line is targeted at people who are in their youthful years. The N-Line by Hyundai is intended to go head to head with high-performance cars like AMG by Mercedes, the M division of BMW, among others. This is a segment that attracts youthful car buyers who have a passion for high-performing vehicles.
Hyundai is also informed by income while segmenting its market. The company focuses majorly on people in the middle-income segment. However, it has started to tap into the luxury market with models like Hyundai Palisade.
5. Qatar Airways
Like other airlines, Qatar Airways does not shy away from segmenting its market based on income. For instance, those who travel first class enjoy privacy and far superior traveling experiences. In some cases, they do enjoy lounge access at airports. It is a strategy to make them feel the worth of their business class travel experience.
This does not mean Qatar Airways have lesser regard for people who travel in economy class. Traveling with Qatar Airways by itself is income based. Affording a space in economy class is still expensive. Thus, there are enough goodies to make everyone onboard enjoy their flights.
6. Spotify
Spotify is informed by age in the segmentation of the market. As an audio streaming and media services provider, the largest consumers of its services are young adults. These are majorly both millennials and generation Z in the population. This is a segment that is quite active in the consumption of audio media. It is a segmentation that helps Spotify to target customers audience across the world.
7. Shell
Shell uses age in its segmentation. It focuses on millennials, the largest percentage of the population who own cars. Millennials are the largest population of car owners because most of them have reached financial freedom as opposed to some still struggling in the gen-z population. This is, however, changing as more gen-z acquire cars. To remain competitive, Shell has to refine its segmentation in the next couple of years.
Shell also segments its market in terms of income. The company sells regular and premium fuels, of which the premium fuels are more extensive. These premiums fuels are thus meant for high-income earning car owners.
8. Cocomelon
Let’s be honest; it’s a channel you probably knew existed on YouTube until you had to babysit a child. Cocomelon makes nursery rhymes that infants like. It is a channel that works best for kids up to five years. Thus, the YouTube Channel is informed by age as a basis of demographic segmentation.
