The market for baby products can be divided into segments, each with its own needs and wants. The key to successful marketing is understanding these different segments and targeting them with the right products.
One of the most popular methods for performing market segmentation uses demographic factors like age and gender of the baby but also income and personality type of the parents.
Other methods use psychographic factors as they relate to the baby’s parents like lifestyle, motivations, values, likes and dislikes as well as behavioral factors like purchasing habits, the benefits they seek, and brand preference.
In this article, we will perform market segmentation for baby products using the following 10 variables: type of baby product, price range, style, color, material/ingredients, the occasion of purchase, gender, age group, brand, and frequency of purchase.
But first, let’s start by understanding why it is important to use market segmentation when selling baby products.
The Importance of Segmentation of the Market for Baby Products
The segmentation of the market for baby products is essential because it allows manufacturers and retailers to target specific groups of consumers with laser precision.
By understanding the needs and wants of different segments, businesses can create baby products that are more likely to appeal to them and retailers can stock products that their customers are most likely to buy.
The market for baby products ranges from those looking for a practical everyday product like a milk bottle to those looking at one-time purchases – like a stroller.
By segmenting the market, businesses can identify which type of baby product is most popular with each group and target their marketing and sales efforts accordingly.
Variables for Baby Product Market Segmentation
Market segmentation for baby products can be performed along the following 10 axes:
- Type of baby product
- Price range
- Style
- Color
- Material / Ingredients
- Occasion of purchase
- Gender
- Age group
- Brand
- Frequency of Purchase
Different people have different needs, wants and motivations for purchasing a product or service.
And so most baby product manufacturers do not cater to all buyers. Instead, they focus on those segments of the market that are most likely to buy their products.
With market segmentation, they can target specific groups of consumers with tailor-made baby products that satisfy their needs.
It is therefore essential that businesses decide which segments they want to target and then design their products, marketing, and sales strategy accordingly.
Let’s now look in detail at each of the 10 variables used in the market segmentation for baby products.
#1. Segmentation Based on Baby Product Type
A baby product is anything that a baby uses and so there are numerous baby product types out there.
Every parent or customer is going to make a purchase decision first and foremost based on the type of product they are looking for.
So if a parent is looking for a new hat for their baby then that is what they are going to buy and not something else, like a toy. Similarly, if they are looking for baby oil, there’s surely not going to buy a bottle of milk instead.
The complete list of baby products will be impossible to list and so here we’ll list only some of the most popular baby products on the market:
- Baby bottles
- Wipes
- Clothes
- Diapers
- Bodysuits
- Cribs
- Strollers
- Car seats
- Toys
- Playmats
- Baby chairs
- Baby toothbrushes
… and many more.
The first step in the market segmentation for baby products is to identify the types of products that parents look for. This allows businesses to create separate marketing and sales strategy for each type of product.
#2. Baby Products Segmentation Based on Price Range
Price is, of course, a major factor that influences consumer behavior, and the baby product market is no different.
Not all baby products are created equal and so there is a wide range in prices across even the same product type.
Some parents are willing to spend a little extra to get a top-quality product while others may be looking for something more affordable.
It’s important to note that even products that serve the same purpose can differ greatly in price depending on the brand, material, and style. For example, you can find a simple plastic baby bottle for a few dollars or an expensive designer glass one for $50.
The market segmentation for baby products based on price range allows businesses to target different groups of consumers with different price points.
Baby product manufacturers and retailers often use price segmentation techniques to maximize their revenue and profit by extracting the most revenue out of each customer based on their willingness to pay.
#3. Segmentation Based on Baby Product Style
Baby Product style generally applies when parents buy clothes for their babies.
Many parents like to dress their babies in the latest fashion and so they are always on the lookout for new and stylish clothes.
However, not all parents are willing to spend a lot of money on trendy items that their baby will only wear for a few months.
Some prefer to buy classic styles that can be used for multiple seasons or even handed down to other babies in the family.
The market segmentation for baby products based on style allows businesses to target different groups of parents with different fashion needs.
It also allows them to offer a wide range of product styles to meet the needs of all types of parents and babies.
#4. Market Segmentation for Baby Products Based on Color
Color is often the most visible factor that influences any consumer’s decision to purchase one product over another. It’s no different with baby products.
Parents often have a preference for certain colors when buying clothes, toys, and other products for their babies.
For example, many parents prefer to buy neutral-colored clothes that can be used for both boys and girls. Some parents will buy pink for girls and blue for others.
Other parents may only want to buy clothes in their baby’s favorite color. This assumes they know what that is and when they don’t they will buy in their own favorite color.
The market segmentation for baby products based on color allows businesses to target different groups of parents with different color preferences.
#5. Segmentation Based on Baby Product Material/Ingredients
The material or ingredients from which a baby product is made has an oversized impact on parents’ buying decisions, and so is an important variable used in the market segmentation for baby products.
For example, parents may prefer to buy baby clothes made from natural fibers such as cotton or wool. They may also prefer products that are made from organic materials.
When buying food for their baby, parents may prefer products that are made from all-natural ingredients with no preservatives or additives.
Similarly, when it comes to baby toys, they may prefer products that are made from eco-friendly materials such as bamboo or recycled plastic.
The market segmentation for baby products based on material allows businesses to target different groups of parents with different preferences.
It also allows them to offer a wide range of product styles to meet the needs of all types of parents and babies.
#6. Segmentation Based on Occasion of Purchase
People purchase different types of baby products for different occasions.
Some baby products are purchased even before the baby is born, such as prenatal vitamins, the first set of clothes, or a new baby car seat/bed.
Other products are purchased after the baby is born, such as clothes, diapers, or baby formula.
Finally, some products are purchased for special occasions, such as a christening gown, or a first birthday cake.
The market segmentation for baby products based on the occasion of purchase allows businesses to target different groups of parents with different needs.
It allows them to tailor their marketing messages to resonate with parents (and even grandparents) who are preparing for the arrival of a new baby, as well as those who are already dealing with the joys and challenges of raising a young child.
#7. Segmentation Based on the Baby’s Gender
Certain products can definitely be segmented based on gender and baby products are one of them.
For example, parents of a baby girl may purchase dresses, bows, and other traditionally feminine items.
On the other hand, parents of a baby boy may purchase pants, blue clothing items, and other traditionally masculine items.
The market segmentation for baby products based on gender allows businesses to target different groups of parents with different needs.
#8. Baby Product Market Segmentation Based on Age Group
The baby’s age is an important factor to consider when segmenting the baby product market.
This is because the needs of a newborn are very different from the needs of a toddler.
For example, a newborn will need things like diapers, bottles, and formula, while a toddler will need things like sippy cups, solid foods, and bigger clothes.
A baby’s age also impacts their size, and so segmentation of baby products based on age and that based on size often go hand-in-hand.
#9. Segmentation Based on the Brand
When it comes to buying products for their babies, parents often have a preferred brand.
Some parents prefer to buy only organic products, while others prefer to buy only natural products and so their brand selection will reflect this buying habit.
Still others prefer to only buy brands that are made in the United States, or that are made by hand.
One of the most important drivers that make parents go with a well-known brand is trust.
They know what they’re getting when they purchase a product from a trusted brand, and so market segmentation for baby products based on brand allows businesses with strong brands to play on parents’ need for trust and security.
#10. Segmentation Based on Frequency of Purchase
The final factor we will consider is the frequency of purchase. This is an important factor as it dictates how much money a parent is likely to spend on a particular baby product.
For instance, parents will need to purchase diapers far more frequently than they will need to purchase a new stroller. So they may look for discount coupons on diapers but may be willing to spend extra on a one-time purchase like a stroller.
And so frequency of purchase can help manufacturers and retailers price products to maximize the amount that parents spend on each purchase.
Conclusion
As you can see, the target market for baby products can be segmented using many variables and can be analyzed from different angles.
In this article, we performed market segmentation for baby products following these 10 factors: type of baby product, price range, style, color, material/ingredients, the occasion of purchase, gender, age group, brand, and frequency of purchase.
Baby product manufacturers and retailers often use market segmentation to better understand their customers and figure out how to appeal to them.
With the market segmentation for baby products, they can better understand which of their products are likely to sell well and can target their audiences more effectively.