Case Study

Assessment and segmentation of waste management services market to develop marketing strategy

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A leading waste management service provider in the UK recognised the need for a strategic realignment. The company’s leadership was concerned that their current market strategy was not adequately reflecting the actual benefits sought by their customers. Therefore, they placed a high priority on re-segmenting their market to ensure a more customer-oriented approach.

Revisiting Market Segmentation

To redefine its market segmentation, Leading Edge drew upon the innovative methodologies of Professor Malcolm MacDonald. The goal was to dismantle the traditional segmentation approach and reconstruct it from the ground up, focusing on the critical needs of the market. This reformation was intended to position the company to better meet customer demands, ensuring that the strategy was aligned with the reasons why customers choose their services.

In-Depth Customer Analysis

The team interviewed 300 existing and potential customers across various economic sectors to ensure a diverse and representative sample. Each participant was asked to evaluate the importance of higher-level benefits in conjunction with standard factors such as product or service type and purchase frequency. The insights from these interviews were pivotal in developing new segments centred on the underlying reasons behind service purchases rather than just the types and frequency.

Analysing the interviews by economic sectors and turnover levels resulted in the identification of nearly 60 new micro-segments. We then focused on analysing the specific benefits valued by each micro-segment, ultimately grouping them into larger, cohesive segments based on benefit similarities.

Strategic Benefits Realized

This re-segmentation culminated in the creation of five new macro-segments founded on the concept of higher-level benefits. This strategic shift was not only in line with the company’s ambition to revamp its market perspective but was also underpinned by rigorous statistical analysis.

Following Leading Edge’s comprehensive involvement, the client is now undergoing a significant restructuring of its business operations. This transformation aims to deliver a more customer-focused service offering, thereby optimising its revenue potential and enhancing customer satisfaction.

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