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ACC200 Principles of Financial Accounting, Abu Dhabi University, UAE


1. Explain in details and give full examples to illustrate your thoughts.

Answer: Introduction: Being a renowned as well as leading retailing entity of British specializing in the products' range for expectant mothers; Mother Care UK has established its presence worldwide. Not only in the UK; it also gained a reputation in the respective market offering general merchandise for mothers and children up to the age of 8 years. Since its inception in 1961, it is serving the babies all over the world as their core target market. However, since the last few years, a decline in this target market have been observed leading to a projection of further decline to the sales in the next ten years mainly in the United Arab Emirates. Currently, Mother Care is offering baby products focused particularly on infants including nursery furniture, bedding, toys, feeding as well as clothing. Whereas there are some other products which have been launched for mothers and children aged up to 8 years.

In this report, the focus of the discussion is on assessing the current market of UAE for Mother Care and suggesting potential target market segments for it as their current target market is decreasing rapidly. Initially, some potential market segments in which Mother Care can progress within UAE are identified while further discussion elaborates on the characteristics of these suggested segments. Moreover, targeting evaluation criteria is implemented on the segments, and final recommendations are made for Mother Care UK for UAE's market.

2. Each potential target segment must have a name that reflects the content of the target segment.

Answer: 2 Potential Market Segment: Market segmentation is the way of separating a market of potential clients into groups, or sections, based on various qualities(Pooler, 2018). The segments are made from purchasers who will react in the same manner towards marketing strategies while sharing similar characteristics like similar area, need or interests.

The potential market segment for Mother Care UAE are the pregnant women who are exploring consumable goods for their expected babies. Mother Care does not only want these mothers to focus on their child but also want to offer them with the maternity products which can be used by these mothers during their pregnancy. This is one of the marketsegmentation segments they can expand further. Moreover, the market segment horizon can be expandedfor disabled parents who are continuously looking for products that can be used for their special needs.


3. Each potential target segment has to be profiled in terms of demographic, geographic, psychographic, and behavioral characteristics.

Answer: Characteristics of Potential Market Segments

3.1 Products

3.1.1 Products for Mothers - Gyne plus: Sometimes it is difficult to find products for pregnant women and products that can make their life more comfortable such as maternity clothing, stretch marks removal cream, belly belt kit, etc. Thereforetargeting mothers can be a good option for MotherCare UAE. Mother Care can name this segment as "Gyne plus".

3.1.2 Products for Disabled Parents- Special Care: It is challenging for disabled parents to take care of their babies. This is the reason that products for disabled parents should be introduced. Mother Care UAE can launchproducts which aid the disabled parents' such as easy remote-control strollers, a belt that can help parents to hold the babies in their laps while eating or doing some work and for blind parents a watch or a band that can help them to locate their child. Mother Care can name this segment as "Special Care."

3.2 Demographics of Targeted Segments

Demographic is market segmentation according to gender, ethnicity, race, family size, religion,age, education, and income. Demographics can be divided into several markets to assist an organization in focussing on its buyers more accurately(Pooler, 2018).

3.2.1 Demographics - Gyne plus: Considering the demographics of this potential market segment, it can be mentioned that the gender-focused for this market is Female as the segment is for mothers. However, when the age group is focused, it is analyzed that the majority of the females in this segment are aged between 20 to 40 years. The products of Mother Care UAE are mostly for upper-middle-class mothers(Pooler, 2018)

3.2.2 Demographics - Special Care: Considering the demographics of this potential market segment, it can be mentioned that both gendersare focused in here as it is for parents which include both Female and Male. Focusing on the age group, it is analyzed that the majority of the parentsin this segment are aged between 20 to 40years. Adding more to the demographic characteristics of this market segment it can be mentioned that the products of Mother Care UAE are mostly for upper-middle-class parents.

3.3 Geographics of Targeted Market Segments: Geographic segmentation is the point at which a business separates its market based on geography(Pooler, 2018). Dividing the market geographically can be separated by region, for example, cities, countries, provinces, areas, nations, etc. It be can also break down the market into urban areas, rural areas, and suburban areas.

3.3.1 Geographic - Gyne plus: Geographical segmentation for maternity products Mother Care can target the people of resident and tourist in UAE. Because these kinds of products are not readily available in the market.

3.3.2 Geographic- Special Care: For disabled parents' products, Mother Care can target the people of resident and tourist in the UAE. There is a shortage of products that are adaptable to the needs of the disabled parents in the market and rural. That is why targeting people of both areas is a better option.

3.4 Psychological Characteristics: Psychographic segmentation is dividing the consumers by their buying behaviorscharacterizing according to lifestyle, interests of consumers, values, personality traits, and values.

3.4.1 Psychological - Gyne plus: For maternity clothing, Mother Care can target women who care about their dressing and are fashion conscious; the ones who wanted to be nicely dressed up in every condition (Camilleri,2018). For stretch marks products Mother Care can target women who care about their skins and want to have a flawless skin every time.

3.4.2 Psychological - Special Care: Mother Care can target parents who are independent and want to do all thingsfor their babies by themselves, but due to their disabilities, they may fail or find it difficult to do so. These products will help such parents to do things for their babies on their own. Mother Care can target parents who are mentally strong and willing to make efforts instead of making excuses using their lacking.

3.5 Behavioral Characteristics: Behavioral segmentation isdividing markets according tobehaviors and decision-making power such as consumption, purchase, usage, and lifestyle (Zaheer, & Kline,2018).

3.5.1 Behavioral - Gyne plus: Mother Care can target mothers with high incomes and middle-class women who want to wear something nice during pregnancy and endorse a high standard lifestyle (Camilleri,2018). The mothers with high purchasing power are the target for the GynePlus.

3.5.2 Behavioral - Special Care: Considering the behavioral characteristics of this potential market is Mother Care can target parents who want to live a better lifestyle without depending on others (Zaheer, & Kline,2018). Mother Care can target upper-middle-class parents who want a quality product who want high-quality products.

4. Then each potential target segment should be DIRECTLY FOLLOWED by the targeting evaluation criteria:

Answer: 4 Targeting Evaluation Criteria

4.1 Segment size: The segment size refers to the target audience out of the whole population that could consume the Mother Care products(Dolnicar, & Leisch,2017).

4.1.1 Segment size - Gyne plus: The targeted audience for this segment ismothers who are pregnant which would be around 12% of the population according to statistical office rate (Andaleeb, 2016).

4.1.2 Segment size - Special Care: The target audience for this segment is disabled parents so the size of this segment would be around 1.7 million people.

5. The segment size and potential growth - The segment attractiveness structure (i.e., competition)

Answer: Attractiveness Structure- Competition
Attractiveness structure is the characteristics of a product that makes it outstanding from the competitors(Pooler, 2018).

1. Attractiveness - Gyne plus: The unique selling point of the Gyne plus clothing line is the style with the comfort that is being offered to the pregnant women of the UAE. As observed earlier, many brands like Marks and Spencer Group, Alexon Group PLC, Toys R Us Limited and other more, do not provide maternity clothes that can also satisfy the fashion need of Mother Care's target audience. This clothing line is exclusively designed for pregnant women with the relevant cuts and style that can keep their body all toned (Camilleri,2018).

2. Attractiveness -Special Care: The product line of electronic baby accessories, i.e., Strollers, lap belts, etc. for the disabled population is not only techno-savvy but is also easily adaptable to the conditions of the consumer. This is also the unique selling point of this product (Camilleri,2018). These products have not been launched by any of the Mother Care's competitors earlier and are one of its kind.


6. The company resources, objectives, and values

Answer: Resources: The average number of employees working for MotherCare in the Middle East and Asia is approximately 200. All these employees thrive towards working in a manner that can provide excellence to the disabled parent-to-be market segmentation that the company can further explore (Camilleri,2018).Mother Care assets sum up toaround 276.7 million, including intangible assets of 39.6 million and fixed assets of 55.0 million. Total net income of the year 2018 is 8.2 million globally with an average of 7.8% of the profit from the UAE itself according to the company's half-yearly annual report of 2018-19.

Objectives: The objective of Mother Care is

"The leading global specialist for young children and parents"

The potentially identified market segments reflect the aim of Mother Care as thesemarkets segments are related to parents and particularly mothers. Two identified market segments will help the Mother Care to expand their markets in UAE and will help them in becoming a global specialist for every parent even for those parents who are disabled (Pooler, 2018).

Values: Mother Care is one of the pillars in British retailing and provides parents and parents-to-be the best quality and innovative products for their children. Mother Care has been criticized in the past for losing quality. However,the ongoing activities set up by the executives are reestablishing the brand to a strong position again, and new ages parents value the mix of good quality and value of money. The two market segments, i.e., Gyne Plus and Special Carewill help them in creating goodwill among the people of UAE. Disable parents will feel that Mother Care is thinking about their feelings and bringing products that can help them; it will create goodwill for Mother Care.

7. Conclusion and recommendation

Answer: Conclusion: Mother Care is a well-known brand in the UAE. Due to the decrease rate of birth in UAE the company's sales for their core products have also declined. For that, this case study analyzes and records some factors that may help the company to regain its popularity. The discussion highlighted the potential target market segments for Mother Care in UAE so they can expand their sales and sustain the market position.

Recommendations: Based on the above-provided discussion, it can be recommended that Mother Care can focus on the identified markets for its market expansion and sustainability in the UAE. They can introduce further new products or can focus on the product development of their existing product portfolio. The company can market their current products as mentioned above in a unique manner so all their dependability for the profits will diversify from babies to mothers, pregnant women and parents on a whole.


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