Ever since Neil Armstrong set foot on the moon, it has been every man’s wish to be able to do the same. Space is one of the most mystifying and romantic locations ever and knowing how hard it is to get there has only made it more sought after. But everyone cannot become astronauts. That is why Richard Branson, with his Virgin Group decided it was time common people get the opportunity to set foot into space. And with this noble thought in mind, the Virgin Group created Virgin Galactic – a company that is dedicated to taking ‘space tourists’ to their most sought after tourist spot – space. To do this, Virgin Galactic has modeled its very own spaceships after the history-making SpaceShipOne. Virgin Galactic’s spaceship is called SpaceShipTwo and its mission is to make “affordable exploration of space by human beings a real possibility”.
Market Segmentation is the bifurcation of a large group of people into smaller groups that have similar characteristics. The whole point of this exercise is so that an organization may be able to design a marketing mix to fulfill the demands and expectations of the participants in the various sub groups, in a precise manner. The market is usually divided based on geography, demography, consumer behavior and psychography.
Geographic Segmentation defines the exact geographic location of residence of the target. It is often divided based on region (continent, country, state, city, etc.), size of metropolitan area based on size of population, population density (urban, suburban, rural, etc.) and climate. Based on these variables, we can define the target audience for Virgin Galactic to be living in urban areas of UK that are densely populated.4 Demographic Segmentation looks at dividing the market based on demographic variables such as age, gender, family size, income, religion, education, social class, etc. Based on these variables, we could say that the target for Virgin Galactic would be high net worth individuals with high incomes, belonging to SEC A+.5 They would be educated and probably come from small families, that is, either bachelors or just married, with no kids. Behavioral Segmentation divides the target based on consumer behavior towards the product or service. It is based on variables such as brand loyalty, user status (i.e. first time user, potential, regular, etc.), readiness to buy, occasions (holidays or other events).6 Based on these variables, the target for Virgin Galactic could be defined as first time users who are most willing to spend money to go into space. They just want to go into space, and aren’t much worried about the money they are spending. Occasions play no role in this. Psychographic Segmentation divides people based on their lifestyles, interests, opinions, values, etc. Based on these variables, we could define the target for Virgin Galactic as people who lead a very frivolous lifestyle, who are willing to spend good money on anything that will make them happy, in this case takes them to space. Their interests would include space, experiencing anything new, especially before their peers. Consumer Profile: Geographic: Region: England City: Birmingham Density: Urban Demographic: Gender: Male Age: 38 years Lifecycle: Married, no children Occupation: Businessman Education: University graduate Income: GPB 500000 per annum Nationality: British Behavioral: User Status: First time Readiness: Very high Benefits: Going into space, making a dream come true, doing something special before peers and competitors. Occasion: None Psychographic: Social class: A+ - high income, high net worth individual Personality: Fun, ambitious, impulsive, confident, athletic, enthusiastic to experience new things Lifestyle: Tech-savvy, plays a lot of sport, fitness freak, socially active Hobbies: Sport, follows tennis, golf and cricket Mobile Phone: iPhone 5 (Contract) Consumer Behavior Factors Consumer behavior refers to the method in which a consumer selects, purchases and consumes certain products