Market segmentation is a marketing strategy that involves dividing a broad target market into distinct groups of buyers who have different needs, characteristics, or behaviors, and might require separate products or marketing programs. Market segmentation is the process of identifying your target demographics and then determining the best advertising mediums to reach that audience. (The Importance of Market Segmentation, 2014) Aeroflot is one of the oldest airlines in the world and in April 2006, Aeroflot became the tenth airline to join Sky Team. The company has embarked on a fleet modernization program, extensive route restructuring, and an image overhaul. For the year ending 31 December 2013, Aeroflot registered a profit of 7.3 billion robles, an increase of 41.9% over 2012, partly attributed to an 18.4% rise in passenger traffic to 20.9 million. The achievement Aeroflot has is resulting from its marketing management and segmentation. ( Aeroflot, 2014) This is a study with a purpose of proving the market segmentation and analyzing. In part 2, it will demonstrate the principle problems. In part 3, it will show air travel market segment and the use of market segmentation. Lastly, the finding will be concluded in the final part of the essay.
2.0 The principle problems
The principle problems in the attempt of Aeroflot to introduce a market orientation to its business contain two major problems. (Principles of Marketing, 2011, P63) Firstly, Aeroflot had some mistakes in companywide strategic planning: defining market ‘role. Aeroflot had proclaimed its mission was to make his airline as good as American Delta Airlines. But they didn't focus the mission statements that should be market oriented and defined in terms of satisfying basic customer needs. (Defining a Market-Oriented Mission, 2014) Secondly, as for setting company objectives and goals (Set Goals and Objectives in Your Business Plan, 2014) Aeroflot met very loosely defined targets which were not marketing targets at all but operational one. We all know that company needs to turn its mission into detailed supporting objectives for each level of management. Each manager was not concerned with attracting more passengers or making life better for them. What they should do is have objectives and be responsible for reaching them. Thirdly, as for the marketing management ori...