Why Saga turned PLC.

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prefer to purchase products in the store and do they shop regularly? Does the customer perform research about a product before they purchase? Researching carefully before making a decision? All of these factors determine how consumers are segmented and marketed to (Marsh, 2014).

Saga provides holidays for over the 50s age group. Therefore, we can tell the company has used demographic segmentation by targeting the consumers based on age. Saga provides lots of health care for customers since health may be important at that age they may need. They also offer private care at home, such as day to day personal care, meals, shopping and over night care. This is needed for elderly people that need assistance for special care which Saga provides, therefore, the segmentation is useful. Furthermore, they do a door to door chauffeur service. This shows they care that elderly people may not want to carry heavy luggage. Also on board the cruises Saga provides services such as golf course, which elderly people may be interested in. All of those services show, Saga takes extra care of their customers since as they are targeting elder customers. Hence, they used demographic segmentation by targeting the consumers based on their income level as well. Because Saga provide luxury holiday for customer, by providing high quality services and facilities, so the holiday is not cheap, not everyone can afford it. And they did targeting the younger adult as well, because people normally buy their parents holiday is their son or daughter, therefore in the video Saga strongly show the elderly customers are enjoying their time. Saga used psychographic segmentation to target solo travelers. Saga made “single mingle” drink party where customers can meet new people everyday. Saga now has a lot of solo travelers that would like to travel with Saga since Saga got an award of “Best large Singles Holiday Company” voted by customers. Therefore, Saga will target solo travelers as well. The new ship they are building will increase 15% of the accommodation will be for solo travelers. Hopefully that can attract more solo travelers choose Saga for traveling.

Overall Segmentation has been useful to Saga, because they can target the customers and get what the customers want and need to satisfy them, and become more market oriented. By providing high customer services that make customers return to Saga. Furthermore, Saga are targeting the elder, and the world’s population is getting older and sicker (Huston, 2015). Therefore, in the future there may have more elderly customers who will buy Saga’s services. However, that doesn’t mean profit will grow non-stop for Saga in the long term, because the market is dynamic and new competitors enter the market or maybe there has an accident on customers during Saga’s holiday, shows their facilities are not safe enough or human error, that will bring down Saga’s reputation, since health and safety are important for their business. So they have to always keep up with current times and trends and also maintain their excellent quality of service to keep customer return and introduce their family and friends.

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