1 Market Segmentation Why is market segmentation used? Market segmentation is a crucial tool that allows a population to be divided into groups of people with similar characteristics. It allows the needs and wants of each of these segments or groups to be better understood and products can be customised and targeted to groups that display the most purchasing potential. Companies gain a better return on their investment by using this consumer-led marketing technique rather than randomly marketing a product to the general population. Publication Information Prepared by England Research 26 th January 2005 How are markets normally segmented? Customers can be segmented in a variety of ways, such as by socio-demographic characteristics (age, sex, social class), life stage (SINKS, DINKS, families, empty nesters) or location. The widely used ACORN model, for example, uses census data to classify people according to the area or neighbourhood in which they live and consists of 43 distinct consumer types. In addition, demographic information such as age, race, income, education, employment, product preferences and media contact is also used to help define these clusters. MOSAIC is another geodemographic classification system that uses similar variables to distinguish between 60 segments that collectively make up 12 groups. Segmentation can also be based on consumer behaviour, which requires activity data in order to predict future activity and behaviour. Psychometric data, based on personality statements, can aid segmentation as well by identifying what type of person someone is and how they would respond to specific sales strategies, for example. What kind of segmentation is England Marketing using to target its domestic customers? England Marketing recently decided to undertake some research on how to segment the British population and determine which people would be the most responsive to domestic tourism campaigns. But segmenting the market solely by location, life stage or sociodemographic characteristics was insufficient. Would the fact that someone lived in an NW1 postcode or had two children really predict their ability or willingness to take a holiday in England? This type of segmentation is too stereotypical for tourism purposes, failing to account for individual preferences, values and experiences that will affect holiday purchasing behaviour. Behavioural segmentation also seemed to fall short due to its instability and difficulty in predicting future behaviour. It only relates to one specific product and point in time and so segmentation would no longer be valid if changes in brand or activity occurred. Psychometric segmentation could be useful in understanding a customer s values but often fails to account for differences in life circumstances. The ArkLeisure model proposed by Arkenford, a market modelling and research company, solved the dilemma by providing a system that is based on people s core values and definitions of quality. A value-based segmentation has many advantages. Values do not change (or only change very slowly) throughout a person s life and can provide a more indepth understanding of consumers. Values or beliefs shape people s needs, which in turn shape their behaviour. Value-based segments will differ in their brand choice, behaviour,
2 life styles, leisure activities and interests and so a deeper understanding of their purchasing behaviour, propensity to travel and general views on life can thus be gained. The additional benefit of this model is that it also takes life circumstances and purchasing situations into account. Customers make travel decisions depending on whether they meet both their aspirations and their practical requirements, so it is imperative to acknowledge these separate variables. A person s priorities may change depending on what type of holiday they are planning but they will always remain in the same value segment. Because the system is not based on predicting a specific set of purchases, it is also more flexible and can be applied across a wider set of tourism markets, a specific destination or an individual product group. How does the model work and why is it beneficial to England Marketing? The ArkLeisure model consists of three main elements: aspirations (value statements that identify segments and are made on the basis of quality judgments), life factors (life stage, income, etc) and purchase scenarios (preferences, perceptions, suitable accommodation, purchase drivers, satisfaction with choices made, purpose of trip, etc). In order to define people s aspirations and therefore segment them into different groups, their values are measured in relation to two key dimensions: the extent to which they embrace or resist innovation and the extent to which they are influenced by mass culture and peer pressure. Willingness to pay for different services and products is also considered, as this is clearly related to individual values. By using this information, the system is able to divide the UK market into eight value-based segments: Cosmopolitan, Discoverer, High Street, Style Hound, Traditional, Functional, Habitual and Follower. The chart above depicts each of the segments and the percentage of the British population they represent. These groups will be described later in more detail. England Marketing needed a model such as this in order to better understand consumers needs, motivations, holiday-taking patterns, attitudes towards England as a destination for main holidays and short breaks, and their awareness and responsiveness to the England brand. The ArkLeisure model works well for England Marketing because it reveals what customers look for in a holiday, what types of messages they will respond to and the most efficient methods of communicating with them. It also reveals how customers priorities and product choices will change under different purchasing scenarios, such as when planning a long family holiday or a short romantic weekend away. England Marketing decided to focus its marketing efforts on three of the eight segments from ArkLeisure s segmentation model: Cosmopolitans, Discoverers and High Streets. This decision was based on the fact that these groups are the most active in the UK short break market and are most likely to be influenced by the England marketing message. The
3 graph below displays the number of short breaks that each segment takes in England on average. Together, Cosmopolitans, Discoverers and High Streets represent 50% of the British population, take 55% of short break holidays and contribute 57% of spending on English short breaks. They also account for 61% of overseas short breaks and 64% of overseas short break spend by British residents. By concentrating marketing efforts on these promising segments, England Marketing can develop relevant products, communication and media channels that are specifically targeted and will provide the best return on investment. The following sections provide more detailed information and insight into each of these three core segments. COSMOPOLITANS Core Values Core Values These people are independent, active risk-takers who seek both intellectual and physical challenges. They enjoy trying new things and experiences, especially with regards to technology, and have an appreciation of art and culture. Their personal interest in new products will drive them to purchase rather than any fashion trend. Value and functionality are crucial to their purchases, although they are high-spenders who will buy expensive products if it provides the experience they are looking for. Individuality is more important to them than following fashion but they are happy adopting traditional values when they feel it is appropriate. They lead a full and active life, but relaxation and peace are still valued at certain times. Holidays and short breaks often provide a time for living outside of their normal, busy routine. Market Size and Lifestage Cosmopolitans make up 15.2% of the population and they have the highest ethnic representation of all segments (18%). They are relatively young (over 40% are under 35), however the mean age is 42 and there is good representation across most age bands. 38% are post family, 34% with family and 28% are pre family. The segment is predominantly C1, although a quarter is classified as AB. The average income is 26k (the highest of all segments) and a high proportion live in London, with the remainder living in the South East and West Midlands. This group uses the Internet the most (for information rather than purchasing) and is very active, taking an average of 10+ hours of exercise per week.
4 Holiday Habits Cosmopolitans are the most active segment and enjoy taking a range of holidays, including package holidays, self-organised holidays, activity or themed holidays, bargain breaks, last minute deals, holidays with an environmental theme or holidays that get off the beaten track. They visit the widest variety of places, including cities, seaside resorts and the countryside, but there must be an abundance of things to see and do wherever they go. This group enjoys activities such as eating, drinking, clubbing, shopping, theatre, arts entertainment, museums and galleries whilst on holiday. They enjoying trying new and different activities and prefer to entertain themselves as long as there are things to do. These people make up 21.4% of the Weekends Away market and 1 in 4 weekends away is spent overseas. Cosmopolitans account for 21.6% of the Short Breaks market. They favour city destinations, such as London or Paris, as well as scenic locations, such as the Lake District, and take on average over 4 short breaks a year. They also make up 22.6% of the Long Holiday market and even though only 1 out of 4 holidays is taken in England, they are still the most likely group to holiday in England. The most appealing destinations to this group are those that do not appeal to the mass market. Short Break Triggers and Motivations Cosmopolitans look to relax, de-stress and mentally recharge on a short break. Breaks offer a time for living and an escape from everyday pressures. They see short breaks as a time of indulgence, a change of pace and an experience that they can buy into. This group enjoys taking short breaks in new areas and visiting new attractions or events, many of which are often the motivation for travel. When travelling with kids, breaks are normally triggered by school holidays. For those travelling without kids, a break is often looked forward to as being a time away from the kids and something that breaks up the year. Cosmopolitans are inspired by communication and information, which can come via the Internet, TV, literature or word of mouth. They are strongly influenced by editorial and are also attracted by offers of new experiences that will provide a break from everyday routine life. They expect relaxation when on a break and so they will not pay extra for this. They will however pay for the opportunity to do what they want, when they want. DISCOVERERS Core Values Discoverers are independent of mind and are the least likely group to worry about what others might think. They are not influenced by style or brand unless it represents the values they are seeking. Function drives purchases rather than fashion. This group looks for good service and value for money, but if the product suits their needs they are willing to spend more. Discoverers live a relatively relaxed pace of life. They enjoy intellectual challenges, but are not as interested in pursuits like arts and culture. Market Size and Lifestage This segment makes up 12.8% of the market, with 5% representing ethnic minority groups. Males account for 57% of the segment and the group is predominantly C1 with an average income of 25k. Most Discoverers are under age 55 with the majority falling in the 26-35
5 age range. 42% have children at home and a further 25% are post family. Discoverers come from a variety of regions including East Anglia, North West, South East and Scotland. Discoverers are the most active Internet users, with half of them making online purchases. They enjoy activities such as sporting events, computer games, reading, listening to music and comedy. Holiday Habits This group is more likely to take a bargain break or last minute deal than a package holiday. They are also more likely to holiday off the beaten track and to show an interest in activity or themed holidays. Discoverers are the most active day visit market but are less likely than other segments to visit familiar destinations or those near family and friends. These people make up 14.3% of the Weekends Away market and are three times as likely to stay in England for a weekend rather than going overseas. Discoverers account for 13.8% of the Short Break market and overseas options are slightly more favourable than English destinations. Some appealing short break destinations for this group include Paris, Scotland, Wales and the Lake District. This group also makes up 11.3% of the Long Holiday market. They are less active here and are four times more likely to go overseas, such as to Florida, Australia, New Zealand or America. They enjoy a mix of activities whilst on holiday such as sporting events, eating out, museums, history and heritage, wildlife attractions and funfairs. They are more likely, however, to support their local football team or go to a gig than go to the theatre or opera. Short Break Triggers and Motivations Discoverers like to experience something new and different and are looking to get away from it all while on a short break. Some prefer peace and quiet as an antidote to the hustle and bustle of everyday life. Rediscovery of places they have been or activities they have done previously is also appealing, as is familiarity. They seek a variety of things to do in order to satisfy the whole family and this often means that they prefer visiting towns and cities rather than the countryside. The underlying motivation for Discoverers to take a short break is price and perceived value for money. The opportunity to spend time as a family is also a key driver for short breaks, as are special deals and offers. Discoverers will often decide to travel if the price is right. Celebrations and special events are key triggers for this group as well. Perhaps more importantly, Discoverers are independent of mind and favour familiarity thus if they find something they know they like they will often settle for that option. The best way to target this group is to offer them something that is different from their everyday life, is a good deal and is focused on family and spending quality time together. If they are satisfied with the choices they make, they will return again and again in the future. HIGH STREETS Core Values People in this segment are externally referenced and care about what others think. They are fashion victims and value style over functionality and individuality. They will not necessarily be the first to adopt a product but will happily follow along once a fashion has been established. They will adopt products and services earlier than most other groups and are willing to pay more in order to receive good service. High Streets are also prepared to try new and different things, as long as they have previously been tried and tested.
6 High Streets are an active segment and are moderately interested in intellectual pursuits such as arts and culture. Market Size and Lifestage This group accounts for 21.2% of the population and is the largest of all the groups. 15% are from ethnic minority backgrounds and a large proportion (one third) live in London. East Anglia also produces many other High Streets. This segment is predominantly ABC1 with an average income of 22k. The group is relatively young, with a quarter aged between 26-35, but a wide range of ages is represented. 40% are post family, 32% with family and 28% are pre family. High Streets are high Internet users, with over 40% making online purchases. They are physically active, taking 5+ hours of exercise per week, and enjoy activities such as cinema, theatre, music and comedy. Holiday Habits High Streets are most likely to be attracted to bargain breaks and familiar destinations and are not likely to take an activity or themed break or to venture off the beaten track. Although last minute deals and package holidays could help save them money, High Streets find it difficult to fit them into their schedule and are more drawn towards bargain breaks. This active segment makes up a significant 24.2% of the Weekend Away market and 2 out of 4 weekends away are taken in England. This group also accounts for 19.9% of the Short Break market, with their destination choice split equally between England, Scotland/Wales and overseas. European city breaks, English city breaks and UK rural destinations are short break favourites. High Streets represent 24.2% of the Long Holiday market and are the third most active group. Although they are the second most likely group to take an English holiday, they are almost three times more likely to choose an overseas option, such as Australia, Florida, US, Canada or Spain, for a long holiday. This group enjoys a range of holiday activities but has a slight preference for daytime attractions and activities rather than nightlife, probably due to family restrictions. Short Break Triggers and Motivations Like the other two segments, High Streets are looking for a break from their normal, everyday routine. They are the least physically active group, but look for places where there is a lot to do and where they have the choice to be entertained or pampered if they desire. High Streets are interested in history, heritage, learning and education and are attracted to larger cities, mainstream seaside destinations and well-known beauty spots. They will travel to the countryside as well, but normally only tried and tested locations, such as Cornwall. High Streets are most likely to follow the crowd in terms of trends and styles. Special deals are often a key trigger, as money plays an important role in their choice of short break. Families make up a large proportion of High Streets and so school holidays trigger short breaks as well. These family groups look for the functional aspects in a holiday, such as amenities with a certain level of quality standards. The older members of this segment are more adventurous and willing to try new experiences, but these are normally tried and tested products. Short breaks that offer relaxation and focus on the functional aspects are the most likely to attract High Streets. They are also willing to try new things on a holiday, as long as the price is right and they have been proven as popular choices.
7 ALL SEGMENTS Holiday Behaviour Short Breaks This market is balanced, with segments taking a relatively equal number of short breaks in England and abroad. There is a slight preference, however, for overseas options, especially amongst those who take fewer breaks. There are millions of High Streets who do not even take a short break at all and thus it is imperative to convince this group of the benefits of England and encourage them to take an additional break. Overall, segments show the most interest in luxury breaks. Exploration is appealing to Cosmopolitans and Discoverers, but touring and countryside alternatives are more attractive than cities with regards to this theme. Preferences vary enormously depending on why and when people choose to take a short break. For special occasions, groups prefer short city breaks or luxury themed breaks. For those with kids, the children appear to dominate the holiday choice and so luxury is rarely an option. Many families prefer sun and beach options, although the countryside is also very popular. Discoverers tend to be more adventurous and encourage their children to explore and have new experiences. For those getting away with a partner, exploration and the countryside are the most appealing options. Touring provides an attractive holiday option during the winter months, as does exploration. Adults taking a short break together are not attracted by the countryside and in fact it is a turn-off for Discoverers. Nightlife is more important for adult groups, although it is not a major factor. The adult groups that prefer overseas holidays (as opposed to holidays in England) are more interested in exploration of cities and regions and less interested in nightlife. And finally, people may also choose to take a short activity break. Cosmopolitans prefer music and arts festivals on activity breaks, while Discoverers and High Streets like visiting attractions. Discoverers are less likely than High Streets to let the children make the activity or destination choice. Hobby activity breaks are the second most popular option amongst all groups except High Streets. Weekend Breaks Cosmopolitans are the most active group, but Discoverers are slightly more prepared to take a holiday in England. High Streets provide an important market, although they are much less likely than the others to take a weekend in England. Overall, people are twice as likely to take a weekend break in England rather than abroad. Long Holidays Long holidays in England are only one third the volume of overseas long holidays. This market is essentially the reverse of the weekend away trend and it will make it difficult to change unless the benefits and offers in England are communicated efficiently. A possible option is to repackage longer holidays in order to incorporate two distinct experiences in one trip, such as city and countryside or adventure and luxury.
8 Where do they go? Towns & Cities High Streets and Discoverers are most likely to visit smaller cities and towns. The proportion of High Streets visiting smaller cities is highest and Discoverers are more likely to visit market towns. Cosmopolitans and High Streets are most likely to visit major cities for the bright lights and entertainment. Countryside High Streets visit all regions and Cosmopolitans are most likely to visit Wales, Scotland and Cornwall. Discoverers are the least likely group to visit the North of England. Seaside Cosmopolitans are as likely to visit a remote beach as they are a mainstream seaside resort. High Streets are twice as likely to visit mainstream resorts as any other type of seaside destination. Discoverers also prefer mainstream resorts and are looking for resorts that are young, fun and loud. Other Cosmopolitans tend to avoid crowds in general and are the least likely to visit obvious beauty spots or to seek family entertainment. High Streets are the most likely to visit these types of places and Discoverers find them appealing as well. England Marketing s Campaign Themes The four main themes that make up the Enjoy England campaigns are Relax, Explore, Discover and Experience. These themes were often brought up when discussing key values for each of England Marketing s core segments, but interestingly, these values hold different meanings for each segment as is explained in the following sections. RELAX Cosmopolitans Relaxation is seen as the overall objective or result of any good short break or holiday for this segment. It is a sign of well-being and rejuvenation and can only be found by being out of contact with a normal everyday routine. Cosmopolitans believe relaxation can be obtained from remote, isolated and scenic locations, as well as through a variety of activities. If seeking relaxation, this group would most likely take breaks where themes such as well-being, doing my own thing, country cottage, canal boating and nature were promoted. Rural destinations like Devon and the Cotswolds would be appealing. Discoverers This group sees relaxation as calm, tranquillity and freedom from a routine. It can be obtained from within oneself or from others through socialising and being together with family. Gentle activities, such as strolling and pony trekking, are seen as more relaxing than intense, physical activity. Any destinations that provide a different environment from home, such as the countryside and coast, are seen as relaxing. The key aspect of a relaxing break for Discoverers is being pampered and spoilt, so they are attracted to
9 themes like spas, health farms, luxury, well-being, dining out, local food and drink, pubs and bars. High Streets High Streets, like the other groups, see relaxation as a break from everyday life. Relaxation evokes a stereotypical picture of spas, health farms and being pampered and spoilt. This group also associates relaxation with remote countryside, wide-open space and gentle activities like boating and walking. In addition to traditional spa, luxury and health farm themes, High Streets look for relaxation through activities like golf, boating, opera and jazz. All segments In general, all three groups are well suited to the current Relax campaign, although more emphasis could be placed on escaping real life and everyday routine, as well as the peace and quiet that can be found in the countryside. Cities, countryside and coast can all be seen as relaxing destinations, however. Relaxation is a key value that all three segments look for in a break and it can be provided in a variety of ways, such as through spas and luxury accommodation, quality time with family and friends and being away from the pressures of everyday life. EXPLORE and DISCOVER Cosmopolitans Although they found it difficult to distinguish between the two themes, this group associates Explore more with the act of physically visiting places or participating in activities and Discover with learning, education, history and well-being. Cosmopolitans think Explore breaks are more likely to have an outdoor or countryside theme, whilst Discover holidays might include historic destinations and are likely to provide education, heritage or selfimprovement. Visits to market towns and villages are also included in the Discover category by Cosmopolitans. Both themes are connected to new and different experiences. Discoverers Discoverers also found it difficult to separate the two values, but were more likely to associate Explore with physical adventure and Discover with education and learning. This group sees a strong connection between these values and the outdoors, countryside and new or different experiences. This segment also sees Discover as being closely linked to rediscovery, or undertaking activities and experiences that they had not done for some time. Discoverers think breaks featuring an Explore theme encompass history, heritage and activities like walking, horse-riding, backpacking and touring, whilst Discover breaks concentrate more on culture, museums, exhibitions and perhaps rediscovering activities, such as camping. High Streets High Streets were inclined to see each of these two values as the opportunity to try something new or different. Like the Discoverers, they associate Discover with rediscovering previous activities undertaken and Explore with extending or pushing yourself. They see less of a link between Discover and education and learning, however, than the other two segments. High Streets look for both of these values while on a short break and associate them with natural or rural locations such as the countryside, villages or market towns. Historic elements, such as churches, museums and castles are often part of
10 these breaks. Explore and Discover values can also be found in city breaks, however, which offer cultural activities and new or different experiences. All segments All groups found it relatively difficult to distinguish between Explore and Discover. However, there was widespread appeal for some form of the Explore element, such as in the countryside. Cycling seems to make exploring more attractive for the whole family and individuals enjoy walking or strolling. Most types of destinations associated with Explore have an outdoors focus. The key to exploring is having the opportunity to see, visit or try something new and different. The Discover value probably has more overall appeal, since it focuses less on the physical adventure elements and focuses more on education, learning and culture. Discoverers and High Streets associate it with arts, culture, history and heritage and there is also the idea of rediscovering places previously been or activities previously tried. The discovery of something or somewhere new is essential for all these groups. EXPERIENCE Cosmopolitans Cosmopolitans associate this value with memories, or something that creates memories. It gives them something to tell other people about and it is often linked to adventure, physical or cultural pursuits and activities that one might not normally undertake. Cosmopolitans are more likely to value this aspect of a short break, rather than the functional features, but found it difficult to specify what exactly defines Experience. Unusual accommodation, ballet or opera themed breaks were cited as examples of something that would be memorable, as were trips that involved local food and drink, pubs, bars, etc. The desire for happy memories drives a short break experience. Discoverers Although this group chose family focused images to depict Experience, they actually associate this value with trips that offer new experiences rather than family related activities. They associate Experience with TV movie locations, working holidays, education and self-learning, all of which are very new and different to what this segment would normally do. High Streets This group is very family focused and sees this value as providing happy family memories. The types of break that can provide Experience are often family oriented, such as country breaks, beaches and national parks. Some also see Experience as the opportunity to try a new and different activity, such as ballooning, sailing or water sports. They see the destination as being somewhere different or somewhere they would not normally live. All segments Most groups associate Experience with memories. Normally, the more unusual, the more memorable and the happier the memories the better! There is a strong family connection for all groups, as well as the idea of doing something new or different. Cosmopolitans in general can associate more easily with Experience, while the other groups are more likely to select holidays based on the functional aspects. All groups found it difficult to specify a destination that depicted Experience, since it is normally people or events that trigger memories rather than a place.
11 Other Values Special The three segments all want to feel special on a short break, either through being pampered and spoilt and having everything done for them, or being extravagant and doing things they might not normally do. Escapism All groups want to escape and get away from everyday life. This is often associated with individuals who prefer to go away on their own. A Change Similar to escapism, this is a desire not necessarily for something new, but something that is different from everyday, normal life. Freedom This value relates to freedom of choice and the freedom to do things as and when you want. The groups associate this value with a sense of timelessness. The Five Remaining Value-Based Segments As mentioned earlier in this report, the ArkLeisure model divided the British population into eight value-based segments, three of which are targeted by England Marketing activity. The remaining segments are described in more detail below. Style Hounds This group is very fashion conscious and strongly influenced by others. They are early adopters and will buy out of the ordinary products in order to set the fashion. They are risk takers who enjoy fun and excitement and will try new and different things. Style Hounds enjoy activities like computer games, cinema, attending sports events and shopping and also enjoy nights out that involve clubbing, drinking and live music. They are predominantly young and make up 12% of the population. Two thirds are single and almost half are prefamily. Style Hounds are an active group and enjoy a range of holiday types, but prefer organised package holidays and overseas options. They are just as likely to choose an overseas option as they are to stay in the UK for a short break, but English destinations are not very desirable. They are over 4 times more likely to go abroad for a long holiday. Traditionals This is a mainstream market whose members are self-reliant and hold more traditional values. Brand is not a key purchase driver for them, although they are not brand-averse. They prefer functionality to style, but still often choose products that are out of the ordinary. Traditionals value good service and they are willing to pay extra for this. They live life at a more relaxed pace and enjoy intellectual endeavours, arts and culture. This group tends to visit familiar destinations and is more interested in bargain breaks than last minute package deals. They are also more interested in taking weekends away in
12 England than any other segment. For long holidays, Traditionals are more likely to travel abroad than in England. Whilst on holiday, they enjoy visiting traditional attractions such as museums, gardens, churches, historic sites and the theatre. Functionals This self-reliant group is resistant to spending and is not prepared to pay for fashion, style or individuality. They will not pay extra for good service either, as this is expected. Although they are not early adopters, they are interested in new experiences and trying new things. Intellectual challenges, arts and culture are all appealing to Functionals. This active day visit market tends to design holidays around the interests of their children and is not very interested in themed breaks, last minute deals or package holidays. They are five times as likely to stay in England for a weekend away as opposed to going abroad. For long holidays, they are more than twice as likely to choose an overseas destination, and for short breaks, they favour both English and overseas destinations. Whilst on holiday, Functionals enjoy a range of activities including galleries, museums, churches, gardens, sports events, theatre and arts. Habituals This group is the most likely to value a more relaxed pace of life. They are traditional, resistant to change and make purchase decisions based on function rather than style. They are not risk takers and will avoid new opportunities. Habituals normally plan holidays with their children in mind and are likely to choose familiar destinations, package holidays or bargain breaks rather than last minute deals. They are not very interested in activity or themed holidays or those that are off the beaten track. This group is the least active in terms of holiday-taking behaviour. Although their weekends away and short breaks are few and far between, they prefer English destinations as opposed to overseas options. They are also the least active whilst on holiday and enjoy activities like visiting churches, gardens and the local shops. Followers As their name suggests, these people are strongly influenced by others and do not take risks. They avoid buying old-fashioned products but at the same time do not value new and fashionable options. They will, however, try something that is new to them as an individual. This group lags behind other markets when it comes to trying new products and services and they hold little interest in intellectual pursuits, arts and culture. Followers are not a very active group in terms of holiday activity, but this may be due to income restrictions. They are most likely to visit familiar destinations and are also attracted to bargain breaks and last minute deals. They are more likely to stay in England and the UK for a weekend away or a short break, but are three times more likely to go abroad for a longer holiday. Followers tend to select family focused holiday destinations and enjoy activities like wildlife attractions and eating out. Conclusion By adopting a market segmentation model that addresses people s core values and life circumstances, England Marketing has been able to gain a much deeper understanding of its customers and their propensity to take domestic holidays. It has also allowed marketing activity to be more effectively structured and focused by targeting the three segments that are currently the most promising for domestic tourism Cosmopolitans, Discoverers and High Streets.