( MGM Mirage) SEGMENTATION PROFILE

6.1. Segmentation Based On Geographic And Demographics

Based on demographics and geographic in Singapore, the total number of potential spending by customers in the segment is divided based on the advantageous location of Singapore to the average income of people.

Due to significant investment in marketing and sales activities, this market segment requires individuals spending worth and efforts. Thanks to optimum location in the middle of Southeast Asia and with many access points, Singapore is the place which attracts extremely high volume tourists from all over the world.
The main targets of MGM Mirage are business people, as well as ordinary citizens with incomes of more than $50,000 USD per year whom likes attentive care and luxury and others with an income of $20,000 USD - $50,000 USD per year. With the current growth in Singapore and Asia, the number of potential customers in this segment will be growing.

 
For example, members of private golf courses are segments of ideal for luxury hotels and casinos built by MGM Mirage. These people usually have the ability to invest and spend. But they are extremely hard to reach, as their information will be kept discreet most of the time. Readers of magazines/newspapers etc would be a perfect market segments. However, the costs of advertising these mediums are relatively high and actual response or sales from readers usually do not match up with the cost spent on advertising.

6.2. Segmentation Based On Psychographics

Although Singapore has many hotels, which boot good service and excellent facilities; the level of customer satisfaction is in fact not that high. As according to the Customer Satisfaction Index by: Singapore Management University (2008), the current hotel industry scored about 71.4/100 in customer satisfaction.  This shows that there can be room for improvement and that MGM has opportunities to respond to this, by providing better services and facilities, which will help increase the customer satisfaction percentages.
Based on the evaluation of psychographics on the level of customer satisfaction, a recommended 20% of the total cost is needed to create multiple products and new & efficient services, in order to further satisfy customer needs.

6.3. Segmentation Based On Benefits

Although market penetration by MGM Mirage will be rather late, segmenting the market based on benefits will create greatest potential to reap profits and will hit competitors hard. Additionally, with prior experience and a good reputation of the company, we are confident that MGM will be able to achieve the objectives set out.
Based on the current economic recovery and a strong and stable Singapore economy, MGM Mirage will be able to develop the hotels/casinos without much of a problem and will ultimately be able to profit from it. Due to a high standard of living in Singapore and an increasing higher standards of living in other countries as well, recreation facilities like hotels & casinos are in high demand and numbers are expected to increase rapidly over the years (as people become even richer).
However, in any case, MGM Mirage would also need to prepare 10% of the total cost for “rainy days”.

It is impossible for a company to capture an overall market. Market segmentation will help MGM Mirage to focus scarce resources and create marketing opportunities; in order to understand the objectives of their specific customers (their target market).