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Market segmentation

Cities, neighborhoods, and blocks organized by economic activity and lifestyle

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Segmenting is dividing, cutting, finding cohesive parts that cannot be subdivided and the cutoff points between them.

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Segmentation on three scales:

  1. Expanded - proportional to an average city;
  2. Regional - proportional to an average city neighborhood;
  3. Local - proportional to one block.

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Within each scale, we carried out a socio-economic segmentation independent of the other scales.

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This multi-level approach led us to:

  • 8 segments expanded
  • 12 segments regionals
  • 9 segments venues

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By performing a simple combination of segments per scale, 8 x 12 x 9, we arrived at 864 possible scenarios.

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Since not all combinations occur in reality or were added to other scenarios because they are very rare, we arrived at 421 effective variations.

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Making our segmentation simple, 8 + 12 + 9 = 29 segments in total, less than half the size of the classic segmentations.

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Still, capable of explaining variations across a wide spectrum of 421 geographical combinations.

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Expanded segments

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  1. Metropolitan Area - regions in large Brazilian cities, reference centers for education, commerce and health.
  2. Qualified metropolitan area - portions of the largest Brazilian cities with great attractiveness, served by good options for work, commerce and services.
  3. Qualified urban area - regions in prosperous cities that play a prominent role in their regions
  4. Developed urban area - regions in well-developed cities that serve the group of municipalities in their surroundings
  5. Urban area complementsr - regions in relevant cities that offer goods and services not available in other municipalities in their immediate vicinity
  6. Urban center of the interior - urbanized portion of cities with restricted economies, with a limited set of commerce and service options
  7. Middle urban core - self-oriented areas in medium-sized cities, which offer more options for goods and services than neighboring municipalities
  8. Satellite region - localities with small populations that depend on other regions for commerce and services

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Expanded segmentation

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Regional segments

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  1. Centrão - central regions of large cities well served by transport, with the presence of national, regional and local networks
  2. Local Center - commercial area aimed at the middle classes
  3. Local core - popular neighborhood shopping
  4. Popular mixed region -dense areas with many shopping and service options
  5. Qualified center - valued neighborhoods in developed regions, with the presence of national networks and high-end brands
  6. Auxiliary Center - commercial area aimed at the lower classes
  7. Mixed region - residential and commercial areas served by businesses and services
  8. Local pendular nucleus - shopping center for people who commute to work
  9. Popular neighborhood - dense residential area
  10. Established mixed region -central regions with the presence of middle classes
  11. Standard neighborhood - good-quality residential areas, with well-defined rooms.
  12. Needy suburb - precarious housing, where essential conditions are lacking for their residents

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Neighborhood scale

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Local segments

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  1. elites - mature families with multiple sources of income, living in upscale households
  2. Upper class - mature families with a stable source of income, living in good homes
  3. Rising middle class - families with a good educational level, with access to job opportunities, striving to consolidate their achievements
  4. Middle class - small families that exploit resources of modern life in order to improve their living conditions
  5. Lower middle class - families able to meet their basic needs making a great effort to reach the next level
  6. Simple life - families struggling to meet their basic needs having to choose the cheapest options among those available
  7. Difficult life - young families, with low professional qualifications, working to ensure minimum living conditions
  8. Surviving - young families affected by unemployment, depending on aid and donations to meet their basic needs
  9. Below the poverty line - young families without the means to meet their basic needs, dependent on help, living in poor housing

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Block scale

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Mapfry Segmentation Applications

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This multi-level structure combines and composes features of our urban geography.

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The result of combining 1-1-1, where local segment 1, is contained in regional segment 1, which in turn is contained in expanded segment 1, is comprised of Elites living in downtown metropolitan area.

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Some other examples:

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3-11-5 Lower middle class living in a standard neighborhood in a qualified urban area

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5-12-8 Surviving living in a suburb lacking a complementary urban area

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2-6-4 Middle class living in an auxiliary metropolitan area center

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1-3-6 Simple living in a local area of a qualified metropolitan area

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You can select the combinations that best align with your idea of the target audience

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A company that sells luxury goods will seek out Elites and Upper Classes, which are more common in Central Metropolitan Areas.

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These will be the target markets for campaigns, opening stores to resell your products, or even opening your own store.

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Other companies, which already have a chain of stores, will be able to map these units and identify how the segments influence their results.

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This will allow repositioning, the closing of units in less related areas and the opening of new units in segments more aligned with the brand.

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The mapping of clients served will reveal the places of concentration and which segment predominates there.

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These and many associations can be made in a way that is quick to understand and easy to explain.

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