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MARKETING MANAGEMENT

Irina Marinova - m2014207


Ana Serpa - m2014332
Vadym Safronov - m2014004
Diogo Santos Silva - m2013608

Lawn Mowers Assignment - Market Segmentation for a Finnish company

1. Product overview:

In the Portuguese lawn mower market we can find seven main types of lawn mowers,

regarding the size, productivity and power source:

Figure 1

2. Market overview

After an observation of the Portuguese market we can recognize several major players,

with different price ranges and targets, such as:


Figure 2

3. Market segmentation map

The lawn mower market in Portugal could be divided into 2 major segments:

SEGMENT A - Professional

 tourism, golfs, sport facilities

 private maintenance companies

 municipalities

Depending on the purpose and size of the company they could be divided into 8

sub segments (Figure 3)

SEGMENT B - Residencial

Depending on the yard size and household income, they are divided in 9 sub

segments. (Figure 3 and 4)


Figure 3

Figure 4
The traditional lawn mowers market is saturated with strong brands with consolidate

presence. (Figure 5) For a new company it would be difficult to enter this traditional

market.

Figure 5

Still, there’s a new growing market with room for further market development and

innovation: Robotic/Automatic Lawn mowers.

This market alone represents today 6% of the market share in Europe and continues to

grow in the residential medium/high income segment.

Why is it growing so fast? Because it’s effortless, time saver, quiet, technologically

advanced and environmentally friendly, as it runs on batteries, so there are no

emissions generated by the mower, and the actual energy consumption is very low.

The running costs are only around 10 to 50 euros per season for the electricity

consumed, depending on the size of the lawn.

Therefore, and because it’s a new growing market, we would suggest the company to

enter this Robotic/Automatic lawn mower market and to push it one step further with
solar powered automatic lawn mowers, even more environmentally friendly and still

a very young market.

As for the target, we would recommend residential consumers with medium/high

income because they are:

 Male and female (60% - 40%), from 35 to 50 years old

 Who live in houses with average/medium gardens near the coast line

 Who are carrier-oriented workers (A/B social-economic status)

 Have an active social life (succeeders and reformers)

 Have no time for household care

 Environmentally conscious (big trend nowadays)

 Curious – technology innovation and new experiences-oriented

Figure 6

Data collection methodology - Combination of Field and Desk research