Home » Customer Value in Pricing Strategy » FitStyle, a company that makes stylish and affordable athletic shoes, has determined that it needs to focus on one customer segment rather than trying to serve multiple customer segments. How could they still optimize their business?

FitStyle, a company that makes stylish and affordable athletic shoes, has determined that it needs to focus on one customer segment rather than trying to serve multiple customer segments. How could they still optimize their business?

Identify and focus efforts on a single product that will appeal to the mass segment.

Maximize surplus in the demand curve.

Branch out to un-served demand in segments adjacent to their target segment on the demand curve.

Customer surveys and interviews suggest that customers would be willing to buy multiple pairs of athletic shoes if they liked more than one color and pattern combination, so FitStyle should try to differentiate their products within their target segment.

Once a company has identified its biggest segment, it can think about how to sub-segment and systematically differentiate products within that segment. Meeting customers’ needs by creating new pattern and color combinations might be a great way to differentiate the shoes.

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