WHICH IS OUR MARKET SEGMENT?
Insomnia is a sleep disorder that affects the sleeping schedule of a person by adding difficulty to become asleep, or to stay asleep for 7 hours. It can be transitory according to stressors, of short duration or chronic. The first one presents itself for up to two weeks, the second one up to four weeks and the third one is for more than four weeks. The purpose of DreamScent is to be the preferred option when it comes with dealing with insomnia, and address the main problem by allowing the user to actually rest during the night and sleep from 8 to 6 hours without interruption. This means the product company needs to define the market segment around the benefits they can offer. Mexico’s market is the first to be tackled as a startup, the enterprise will not be going international during its first years.
According to Alejandro Jiménez, the president of the Mexican Sleep Academy, approximately 18% of the adult population of the country deals with insomnia. This could equal to an approximate of 13 million mexicans. When it comes to age, the pillow can be used from any age, but because of the disorder nature, adults will be the ones using it. We are considering our segment from 18 to 70 years old, adults with economic independence that may suffer from insomnia as their main health concern.
Another important variable would be the socioeconomic status. The DreamScent pillow is a long term investment, however, the essential oil cartridges have to be replaced every quarter of the year approximately. This lowers the accessibility of the product to socioeconomic classes E, D and D+. That signifies DreamScent will only be focusing on the A/B/C+/C segments of the mexican population. A/B households represent the 4% of the mexican households, C+ represents 9% and C equals 11%. From these we can infer that if 13 million Mexicans suffer from insomnia and we are targeting the 24% of high income households, then 3,120,000 people can be interested in buying and being recurrent clients of Dreamscent.
