Posted by: Gabriel | November 22, 2009

A Place for the Heart

In marketing circles we often talk about the importance of segmenting the market or to steal a textbook definition, “the process of partitioning a market into groups of potential customers who are similar in designated ways and are likely to exhibit similar purchasing behaviour”.

Segmentation acknowledges that buyers do not belong to one homogeneous group but rather each have individual needs, wants, and preferences. By dividing these consumers into segments according to particular characteristics or behaviours, marketers are better able to identify profitable target markets and develop effective marketing strategies for reaching those markets.

In theory, proper segmentation makes for a more efficient use of resources and avoids the issue of having to compete head on with all companies for the entire market.

The new A-League soccer franchise, who have adopted the working title Melbourne Heart, are in the unenviable position of having to develop a supporter base in a city whose allegiances are already tied to Melbourne Victory. For them, segmentation is crucial.

Founded in 2004, Melbourne Victory is unrivalled in its success, having won 4 major domestic titles already and boasting the largest average crowd attendances in the league.

So how will the new “Melbourne” team compete with a club as successful and well-established as the Victory in a state which it has solely represented till now? In short, where will the supporters come from?

For mine, there are a few things they can do to differentiate themselves from their cross-town rivals:

  1. The Home-Base: According to Heart’s Wiki, management is currently in talks “with the Casey and Essendon Councils about where to establish the club’s home base”. I feel it is crucial they settle in an area where soccer fans will embrace them and adopt them as their own. They need to carve out a sizable suburban niche for themselves.
  2. Latent Soccer Fans: They must find a way of attracting those members of society who take only a casual interest in the sport but have no true allegiance to any particular team or player. Targeting this segment will not be easy. Perhaps a well known marquee signing – such as a Mark Viduca – could help entice support.
  3. Disgruntled Victory Fans: They exist. Heart must identify them and cater to their needs in a way which Victory wasn’t able/prepared to.
  4. Family-Friendly Proposition: By positioning themselves as a family-friendly club, Heart might be able to attract new members. They would be wise to offer cheaper family and kids memberships and push to have their games scheduled at times which are more convenient for families to attend e.g. Sundays.

These are only a few of the suggestions which they should atleast entertain. In any case, entering an already saturated market will not be easy.

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