Business lesson 5

1
How do we break up a market to understand it
better?

• Business lesson 5
• Celebrity slices
• Aim to understand how to analyse a market using
  segmentation

2
For starters

• Make a list of 10 celebrities. Combine your list
  with a classmates and put your celebs into
  groups of your choice (e.g. by age 0-18, 19-35,
  35).
• Extension group your list according to another
  aspect.

3
By the end of today, you will be able to

• explain what segmentation is.
• do a basic segmentation of the Celebdaq market.
• come up with a trading strategy based on
  segmenting the market.

4
Remember your mission

• This week well learn one way to accomplish your
  mission to segment the market.
• What does it mean to segment something?
• Extension how could the celeb market be
  segmented?

To make as much money as possible by investing
imaginary money in celebrity shares.
5
Segmentation

• Segmentation the grouping of customers into
  smaller groups.
• How does the picture on the right illustrate
  segmentation?
• Extension why do businesses segment their
  customers?

6
Slicing celebrities

• Even though celebs are not our customers (they
  are more like products!) we can still segment
  them
• by what they do (TV, pop, movies see Market
  Lists)
• by whether they are more likely to appear in the
  broadsheets (these pay higher dividends) or
  tabloids
• How might these segmentations be useful to us?
• Can you think of any other useful segmentations?

7
Extension activity/homework

• Complete the worksheet on segmentation. This will
  help you make a profitable investment.

8
Invest!

• Use your segmentation analysis to choose
  celebrities from segments you think will do well
  this week.

9
Celebwork
Keep a close eye on your bubble from Lesson 4. If
the share price suddenly drops you might want to
get off the bubble and sell!