Brandname: Sea Horse
Company Name: Seven Sea Chemicals (Holdings) Ltd
Management Function Analysis

The company has successfully attract a customer segment whose members share the value system of "Best Value for Money" and the company is a proven case of gaining market leadership through successful market segmentation strategy.

Segmentation has a long history in marketing. It starts with the notion that a company can't be all things to all customers, but must treat them differently based on knowing what a customer wants and the firm's ability to profitably deliver it. Effective segmentations enable companies to allocate investment resources to target customers that will be most attracted to offers. Success is judged on how well the company acquires and retains profitable customers. Segmentation includes customer selection and targeting, brand and value proposition development, communication message development and spending, pricing, and channel coverage and strategy.

Segmentation is essential to formulation of business strategy. It plays a role in (a) Infrastructure decisions - what kinds of systems are needed to serve different types of customers, and with different types of products and services; and (b) Scope of activities - what should be manufactured internally vs. outsourced, and how many geographic market should be served.

Implications for SMEs

nd to realize that once a target market segment is chosen, the company's activities should be devoted to continuously satisfy the existing and emergent needs, wants and desires of these customers, the use of market and customer intelligence to assess thee effectiveness of company activities and services, and creation of new desires of segment customers.

SMEs should pay special attention to market segmentation, as they do not have the resources to attract multiple segments.