Market Segmentation of Topaz Energy

What Is The Markets And Customers Market Boundaries?

Consumer behavior is changing rapidly and they are becoming more powerful in the recent years. At present consumers are more sophisticated and more knowledgeable. For the retail sectors, the modern consumer behavior is very important to understand to gain competitive advantages (Çifci et al. 2016). For retailers, it is crucial to understand the way about how to attract the consumer by providing excellent service and a better business environment. Organizational policies and service are two vital areas through which the consumer experience can be improved. This study deals with the changing consumer behavior in the context of Topaz Energy. However, Topaz is a petroleum retail chain situated in Ireland. In the recent years, this organization has focused to gain a good position in global market by providing fuel service. This company wants to be number one in global fuel industry. For this reason, they need to gain a clear idea about the current preferences in the fuel industry.

The business nature of retailers is changing today. In order to cope up with the changing behavior of the consumers, the retailers should know the current demand of the customers. Topaz is an eminent petroleum retail organization, which focuses on the fuel business (Topaz.ie 2018). At present this organization aims to develop a good position in the global market by providing excellent fuel service. To gain number one position in global fuel industry it is important for Topaz to develop a customer profile by analyzing the demand of the current market. This organization has established 330 shops across Ireland. These shops are categorized into residential and transition type according to the geographic location of these shops. However, demographic situation is the main factor based on which the product is offered. Apart from the fuel service this organization operates Re. Store, which offers food and coffee to the customers. Thus, this retailer has both fuel and food service across Ireland. 

In order to analyze the target market of an organization, market segmentation needs to be carried out. As commented by Hornibrook et al. (2015), market segmentation is a method to categorize the customers as well as the potential customers into different groups. In the context of Topaz, their customer segmentation is done based on measurability, accessibility, and sustainability. In order to analyze the customers, such organization has introduced a loyalty system. Based on the buying habit, usage rate, lifestyle and income level the customers are categorized into four groups. Introduction of PLAY and PARK game Topaz has identified their target market. The four groups include high mileage, walks in, commuters and other motorists. Topaz’s target audiences are both male and female in the age group of 18 to 65+. 

Challenges Faced by Topaz Energy

High mileage customers are mainly male and age group is 25 to 64 years. They have large fill and high frequency to visit.  They are not local customers and spend well on fuel and food. These customers are basically visited during the working days and pick hours. Commuter motorists are also mail and belong from working class. Their age group is 18 to 45 years. Their frequency of visit is high and they spend much on purchasing fuel, food, and beverages (Lancaster and Massingham 2017). Other motorists are elderly people age group is 18 to 65 years. They are local customers with mid-frequency of visit. On the other hand, customers of walk-on category are mostly older aged people and the age group is above 65. They are also local customers and have a good spending on fuel.

In the recent years, Topaz Energy Pvt Ltd. has been facing challenges due to changing behavior of consumers. However, they have faced loss due to fall in offshore demand. However, the competition was too high and the demand of customers became fallen. Topaz provides fuel and engine oil to offshore vessel. Hence, decreased demand for the customers is a big challenge for this organization. On the other hand, Topaz Energy Ltd. has given their more focus on fuel service without analyzing the customer’s demand for other services. Re. Store is a food branch of Topaz that offers new products, which are different from old products. However, Topaz has offered new food products without carrying out a proper market research (Topaz.ie 2018). As a result, their new offer was not successful. This was a big challenge for this organization in their business. Hence, it can be said that huge competition and poor market research were the major drawbacks of Topaz that led them to face challenges in their business.

 From the above analysis, it has been found that a proper market analysis is required for Topaz to identify the current needs of the market and the products that are offered by the competitors. Market analysis is the best tool to cope up with the changing behavior of consumers (Cantallops and Salvi 2014). Without conducting a market analysis it is difficult for a business to bring a successful innovation. However, Topaz can improve their store feature to attract the customers. Store featured can be improved by providing a good offer in product price. The loyalty system of Topaz is good to attract the customers but this can be improved by including a new feature in this system. Therefore, the advertisement technique has a great impact on consumer’s purchasing behavior. Thus, this area of Topaz’s business can be improved by incorporating social media advertising.

Strategies for Improving Topaz Energy’s Business

In the recent years the demand of the retail consumers are changing rapidly. However, the consumers become more demanding. Their choice and values are based on the type, price, accessibility and availability of the products (Rashrash et al. 2017). One of the vital characteristics of modern consumers is around the clock shopping. However, in the recent years consumers prefer to shop products through the entire day. They want 24*7 hour service form the organization. Hence, Topaz’s Re. Store offers food and beverage products to consumers. Thus, the consumers have a great demand to order food product for 24*7 hour. On the other hand, to get variety of products is another characteristic of consumer. Modern consumers have much knowledge in purchasing and they want unique product from the retailers, which is completely new to the market. Topaz has four groups of target markets and each market has specific demand. Thus, it is important for this organization to provide innovative product to the customers based on the different characteristics of the customers. Young consumers prefer omnichannel shopping (Jin et al. 2017). This channel provides opportunity to the consumers to buy products through online by using a mobile device and desktop. This type of shopping provides a greater experience to the consumers. Topaz has commuter motorists, which is one of the vital groups of target customers. The age group of this customer ranges from 18-45. Hence, such group has a great preference for omnichannel shopping, which can be fulfilled by providing online shopping.

 At present, the retail consumers are more value conscious. Internet makes the way easy for the consumers to compare the prices of the same product through using a search engine (Liu et al. 2017). In the retail industry, competitors offer same products at low price, which influences the consumers to switch from one organization to another organization. For Topaz they need to focus on the older customers as they are more value conscious. The age group which is above 65 is more concerned about the product price. Hence, Topaz needs to set their pricing strategy focusing the characteristic if such age group. Modern consumers are always connected to smart phones. Hence, they carry out their shopping by using social media and online websites. Therefore, they prefer to share their shopping experience with their friends and family. In the context of Topaz, use of social media marketing will be helpful for their customers who belong to the age group 18-65. Therefore, consumer requires immediacy and authenticity from an organization while purchasing a product (Song 2016). Thus, Topaz needs to provide quick service and authentic product information to the customers, which will support the characteristics of modern consumers.

Influence of Cultural, Social, Personal, and Psychological Factors on Consumer Behavior

Marketers have to give their concern about the like and dislike of the consumers. This like and dislike of the consumers are associated with favorable and unfavorable condition of a business (Teeny et al. 2017). Attitude of the individuals refers to the learned predispositions to respond to a specific object. Analysis of consumer attitude helps an organization to reveal the reasons for purchasing or not purchasing a product. Topaz can judge the effectiveness of their marketing activities by observing the attitudes of consumers. The nature of consumer attitudes is divided into three categories. One of the major categories is the attitude towards a product, price, advertisement, store, and promotion. It can be said that if the consumers get a new product experience or new product information then their dislikes is transformed into likes. The second category of consumer attitude is the positive and negative dimensions of attitude. The consumers show either positive or negative attitude towards a product or service. In the context of Topaz, the nature of product and service influences the consumers to express positive or negative attitudes towards the product. The third category of consumer attitude highlights that attitude is consistent in nature. However, such consistency can be changed if the component is changed.

Structure of consumer attitudes includes different components such as culture, social class, personal factor and psychological factor (Horner and Swarbrooke 2016). Attitude of the consumers can be influenced by cultural, social, personal and psychological factors. These factors also leave a great impact on consumer behavior. From the above discussion it has been found that consumer’s attitude may be positive and negative. As for example, if the consumers get new information regarding an existing product or they get a substitute product at low price then their negativity in turned into positivity regarding this product. As a result, the consumers become influenced to purchase this product. On the other hand, if the consumers get negative information regarding a product then they deny to buy this product. On the other hand, culture affects the attitude of consumers as well as their behavior. As for example, during purchasing a food product or clothing products retail consumers focus on their tradition. Thus, they prefer the products, which keep their cultural value and belief.

Social factors focus on the family members, friends and reference group. As for example, people are often influenced by the reference group while purchasing a new product. If they get good review regarding a product then they are often influenced to purchase the product. On the other hand, consumer attitude can be influenced by personal factors such as occupation and lifestyle of the people (Ramya and Ali 2016). As for example, good economic condition and high-income highlight sophisticated lifestyle. Hence, people, with high income have strong purchasing power than low-income group and they show positive attitude while buying a product. Psychological factor is associated with favorable and unfavorable emotional condition of consumers. As for example, a favorable emotional condition allows the consumer to buy a product positively while unfavorable emotional condition leads a consumer to show negative behavior while purchasing a product. In the context of Topaz if the consumers have a positive attitude towards their service or product then their purchasing behavior will be increased. On the other hand, if the consumers show the negative attitude towards their service then their purchasing behavior will be decreased.

The major reason of shopping is to spend the money. However, consumers spend their money by purchasing products (Gajjar 2013). On the other hand, the atmosphere of the store is a big factor that leads the consumers to spend money in retail stores and shopping malls. Consumers have a tendency to attach to a brand, which leads them to purchase product. Arnold and Raynold focus on the consumer hedonic shopping motivations. According to Arnold and Reynolds (2003), a six-factor scale is generated to analyze the reasons of consumer’s shopping. The components of this scale are value, social, idea, gratification, role, and adventure. Such factors lead the consumers to purchase the product from a retail shop. According to this framework, consumer goal has an important role in identifying how consumers recognize the different retail marketing mix and the retail environment. These two elements influence consumers to go for a shopping. Consumer goals include recreation, social interaction, intellectual stimulation and entertainment. These elements define the way of consumers through which they purchase a product. From the six-factor scale, it has been found that adventure is a major factor that influences the consumers to go for a shopping. However, purchasing a product, which completely new to the consumers is a big adventure for them as the consumers get a scope to reveal the significance of the product in their life. In order to understand the usefulness of a product or service consumer purchases this product. Therefore, value of consumers focuses on the cultural value and moral belief. Often the consumers have an intention to purchase for a specific brand as they feel it will keep their value and belief.

Gratification is a big factor in six-factor scale theory. However, gratification focuses on the satisfaction that may come when the desire of an individual is fulfilled (Thananuraksaku 2018). Consumers go for a shopping to fulfill their desire. In the context of Topaz, they should fulfill the desire of the consumers by their service or product. Social factors play a great role in influencing the buying behavior of the consumers. Several individuals with different choices are present in the society, which also leads the people to go for a shopping. However, often people are influenced by watching the fashion as well as the lifestyle of others. Therefore, advertisement of retail products via social media is a big reason of shopping.  On the other hand, the role of reference groups such as family, friends, and colleagues is vital in influencing the purchasing behavior of consumers. Trough the discussion with others people generate new ideas or get ideas about any product or service, which leads them to buy the product. Hence, from the above analysis, it has been found that such six factors framework will be helpful for Topaz to identify the reasons of shopping. This will help them to include a new strategy to increase the purchasing power of customers by analyzing the factors of consumer’s buying behavior.

Family plays an important role in influencing the buying behavior of a consumer. However, the family members have used the brand or product earlier, as a result, they have good experience with such particular product or brand. They have the complete knowledge about the features and significance of the product. As a result, they will give advice to other family members to purchase the same product. As for example, parents play an important role in buying behavior of children (Shukla and Drennan 2018). Children get the idea about their lifestyle from their parents. Thus, parents have a significant force on buying behavior of individual.

Reference group is a group of people who are referred by someone while taking a purchasing decision (Williams et al. 2018). Reference group includes friends, colleague and close relatives. However, people have a tendency to copy other. This is a major fact why people focus on reference group during their shopping. People take an idea from the reference group before taking a real buying decision. The reference group is very reliable for an individual thus, they give value to their idea while purchasing a product. Reference group provides idea regarding a product that can be purchased by people with reference to a specific lifestyle. Reference group leaves a tremendous impact on the consumer buying behavior. Everyone has an intention to behave like a specific group, which is preferred by them. As a result, people try to modify their own behavior, which also influences their purchasing decision. On the other hand, the opinion leaders communicate with the reference group. This opinion leader insists people about what another buy.

Social class is a group of people based on their income, education, wealth and nature of occupation (Zhao et al. 2018). Consumers belong to different social classes have different behaviors. As for example, the upper classes have high disposable income as a result, they spend more on purchasing product. Social classes leave a profound impact on consumer purchasing behavior. Purchasing capacity of the consumers is based on the disposable income. Rich people have the capacity to buy more consumer goods while the less income group is not able to purchase high-quality product. On the other hand, upper-class people have a great demand for innovative product, however; lower class people look for low-quality product.

 In the context of Topaz Group, they need to hold power of group influence as it will help them to enhance their sales revenue generation and customer numbers. In order to use the power of group influence, Topaz can give the reward, customer loyalty bonus, and discount, with high-quality product. This will be beneficial for this organization to satisfy the reference group and the family of a consumer. Satisfaction is crucial to retain the existing customers and to get new customers (Solomon et al. 2014). If the reference groups are satisfied with the service of Topaz they will refer this brand to their close one. Hence, by providing new offer and discount in price will be an effective approach for Topaz to leverage the power of group influence and to utilize it to improve their brand image. In the recent years, marketers have to aware about the social classes of their target audience. If Topaz targets the upper-class people then they need to design their product and service properly, which can meet the customer demand. This design can be done based on the quality, atmosphere and the service of their organization. In the context of middle-class group, their purchasing behavior includes a great value for them (Dubois et al. 2015). They are more future-oriented thus; they want full satisfaction while purchasing a product against money. Material product possesses a symbolic meaning for this social class. For Topaz this concept needs to understand to utilize the influence of social class on consumer behavior.

Involvement construct refers to the attachment of a consumer with a specific brand. This involvement is associated with the value, belief, and loyalty of a consumer regarding any brand or product (Rodríguez et al. 2013). Involvement of a consumer with an organization highlights their brand preferences. However, if the consumers are involved fully in an organization they prefer to purchase a product from this particular brand. Involvement influences the decision-making process of a consumer while purchasing a product. Involved can be defined as the motivational construct. In the context of Topaz Group, they offer oil and food and beverage to the consumers. Hence, consumers who belong from upper class have a great involvement in purchasing oil from a specific brand. On the other hand, people who have a great level of satisfaction regarding any food product they will purchase such product from a specific brand (Elbedweihy et al. 2016).

It is important for Topaz Group to measure their customer involvement. Based on this they will able to improve their strategy. Customer involvement is varied based on the different products (Zhang 2015). Thus, Topaz needs to identify the level of customer involvement in their every product. As for example, the Re. Store of Topaz Group offers foods and beverage products, which are completely business-oriented. However, it is crucial for this organization to measure how much the business persons are involved with this product. If there is great involvement then their purchasing power will be increased.

Cognitive dissonance is a popular theory that describes the psychological state of the individual’s belief, behavior, and attitudes. Dissonance theory highlights that dissonance or inconsistency takes place while individual holds conflicting thoughts or belief. Often cognitive dissonance occurs after purchasing a product, which may affect the satisfaction of the consumer. In the context of Topaz cognitive dissonance may an affect their brand image (Bose and Sarker 2012). If the service or products of Topaz are not free from cognitive dissonance then it hampers their business. However, any type of dissonance will leave a negative impact on customer satisfaction. As a result, the customers will show a negative attitude towards a brand. In the context of Topaz Group, their Re. Store has offered new food and beverage products to the businessman. However, this strategy was not successful. Hence, cognitive dissonance may be a vital reason behind the failure of this strategy. Moreover, high level of dissatisfaction among the customers due to cognitive dissonance will affect the reputation of the Re. Store of Topaz Group.

In order to deal with the cognitive dissonance, it is important for an organization to establish a positive brand image (Zhang and Benyoucef 2016). For Topaz Group, conduction of more research is helpful to reduce the cognitive dissonance as it allows them to understand the perspectives of the current market. As a result, they will be able to enhance the customer satisfaction by meeting their demand. Therefore, such market research leads this organization to identify the factors of dissonance and to remove this. Therefore, Topaz focuses on delivering a clear promotional message, which does not create any confusion among the customers regarding their brand. It is effective for Topaz to avoid the delivery of contradictory product information during the brand promotion as it reduces conflicts among the customers.

Relational constructs refer to the establishment of the relation with the customers. In order to influence the buying behavior of the consumers’ development, a good relationship with the consumers is essential (Calder et al. 2015). However, management of customer relationship is mandatory for an organization to enhance their customer loyalty. However, if the consumers are satisfied with the product and the service of an organization then they will be interested to purchase the product of a specific brand. In the context of Topaz, they need to build a good relationship with their customers by providing them special offer and discount. This will help them to retain the customers and to increase the customer loyalty. Such good relationship with the customers will help Topaz to enhance the buying behavior of the consumers. An organization needs to build a good relationship with their consumers, which can be done by enhancing the customer satisfaction level. Skycart needs to give more focus on customer satisfaction level in order to build a good relationship with the customers.

Different stages of family lifecycle include individual independence, marriage, childbearing, launching adult children and aging life. However, in different life stages, people have different requirements for product (Orji et al. 2017). Individual independence refers to the single person in a family. Therefore, the marriage and coupling is another stage of life cycle, where two people are committed to a relationship. Childbearing is another stage of human life where the parents welcome their new members in the family. On the other hand, launching adult children is a very critical time for the parents as they have to tackle the new growing children. The last stage of the family lifecycle is the aging life. In this stage, people become older and include different perspectives. However, people show a different preference at stages of their life cycle. As for example, when people are leading a single life then they have not much requirement regarding a product. In the context of Topaz their Re. Store provides food products hence, the single people needs buy all food products from this shop as they have no need to cook in home. On the other hand, for the married couple, they will prefer food products on occasional basis. For the children, healthy food is required. In order to meet the children’s need Re. Store has to provide more hygienic product, which will influence the parents to purchase food for their children from this organization. As for example, it has been found that maximum children prefer Hot Chicken Baguette and soft drink. Thus, offering chicken baguette with an organic drink will be a healthy product for the children.   However, the adult people focus on the tasty and hygienic food product, which is easy to prepare (Head et al. 2014). Therefore, the aging people are more health conscious thus, they prefer healthy and light food product. Hence, based on the different stages of life cycle Re. Store of Topaz needs to offer a variety of food products to enhance the purchasing behavior of all aged customers. From the above analysis, it is clear that different age groups have different types of product preference, which should be understood by Topaz to increase the buying capacity of the consumers.

In order to reach the target market Topaz has been using posters, promotional leaflets, and digital marketing. However, posters and leaflets are helpful to attract the people who are coming to this shop. This attracts the attention of the consumers towards the organization. Organizing an event besides the traditional marketing communication will be helpful for Topaz to deliver the information to the target market. However, conducting an event based on the significance of the products is effective to get attention of customers easily in a crowded place (Fill and Turnbull 2016). In the context of Topaz, they can develop an event for promoting their product in a heavy traffic area. This will allow this organization to influence the customers as well as their buying behavior.

One of the major marketing communications is digital marketing. Topaz has promoted their product on company’s webpage, which is an effective approach for this organization to develop buyer behavior profile. In the recent year, the young aged people prefer online shopping (Belch et al. 2014). Therefore, Topaz focuses on the age group 18 to 65. Hence, the young and middle-aged people will be influenced by their digital marketing. Application of social media marketing will be an effective digital tool for Topaz to cover all age groups that are from 16 to 65 years as all age groups people spend a long time in social media. Hence, promotion of the products via social media such Facebook, Twitter, and Instagram will allow this organization to change their customer behavior. Therefore, a wide range of customers from different geographical regions can reach to their product easily through this social media marketing.

Conclusion

The entire piece of work highlights the consumer behavior as well as their preferences in the context if Topaz Group. It has been found that Topaz focuses on 18 to 65 year age group of people as their target market. However, social, demographic, personal and psychological factors are vital in influencing the consumer behavior in an organization. However, the high classes of people have strong purchasing power than the low class of people. Therefore, on the other hand, reference group plays an important role in influencing the purchasing behavior of the consumers. It is important for Topaz to enhance the customer engagement in their organization to increase the buying behavior of the consumers. It can be concluded that based on the different stages of lifecycle consumer can change their product requirement, which needs to be understood for an organization to increase their sale.

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