WeWork Segmentation, Targeting and Positioning
WeWork segmentation, targeting and positioning is an important tool for the global flexible workspace provider to develop right products and services for right customers. Segmentation involves dividing customers into different groups according to their common needs and common characteristics. Targeting implies selecting specific groups among the population to sell products and services to. Positioning refers to developing elements of the marketing mix that best resonates with the needs and wants of the target customer segment.
WeWork uses the following types of positioning:
1. Functional positioning. Functional positioning refers to positioning of products and services that are aimed at solving specific problems customers are facing. Businesses needed flexible workspace solutions without commitment of lengthy and expensive lease. Adam Neumann and Miguel McKelvey saw commercial opportunity in this problem and established WeWork with functional positioning in 2010.
2. Multi-segment positioning. The co-working giant offers services to more than one customer segment in terms of their workspace needs. For example, ‘Space as a service’ category is developed for small and medium sized businesses and enterprise companies. ‘WeWork Access’ category, on the other hand, aims to attract different customer segment, namely sole entrepreneurs at the early stages of their journey in business.
The following table illustrates WeWork segmentation, targeting and positioning:
| Type of segmentation | Segmentation criteria | WeWork target customer segment |
|
Geographic |
Region | 38 countries worldwide |
| Density | Mainly urban areas | |
|
Demographic |
Age | 18-65 |
| Gender | Males & Females | |
| Life-cycle stage | Bachelor Stage: young, single people not living at home
Newly Married Couples: young, no children Full Nest I: youngest child under six Full Nest II: youngest child six or over Full Nest III: older married couples with dependent children Empty Nest I: older married couples, no children living with them |
|
| Occupation | Self-employed, professionals, senior manager, executives, business owners | |
| Behavioral | Degree of loyalty | ‘Hard core loyals’
‘Soft core loyals’ ‘Switchers’ |
| Benefits sought | Flexibility, convenience, creative and energizing environment | |
| Personality | Easygoing, determined, ambitious | |
| User status | non-users, potential users, first-time users, regular users, or ex-users of a product | |
| Psychographic | Social class | Lower class, working class, middle class, upper class |
| Lifestyle[1] | Mainstreamer, Aspirer, Succeeder, Explorer, Reformer | |
| Risk aversion | Risk avoiding,
Risk neutral Risk loving |
WeWork segmentation, targeting and positioning
WeWork Inc. Report contains the above analysis of WeWork segmentation, targeting and positioning and WeWork marketing strategy in general. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on WeWork. Moreover, the report contains analyses of WeWork leadership, organizational structure and organizational culture. The report also comprises discussions of WeWork business strategy, ecosystem and addresses issues of corporate social responsibility.
[1]According to Cross Cultural Consumer Characterization by Young & Rubican