FACULTY OF BUSINESS AND MANAGEMENT
BACHELOR OF BUSINESS ADMINISTRATION FINANCE (BA273)
PRINCIPLES AND PRACTICE OF MARKETING (MKT420)
GROUP ASSIGNMENT 2: SEGMENTATION, TARGETING AND POSITIONING
PREPARED BY: NBH2B (GROUP 5)
NAME STUDENT NO.
WAN NORAINA AFIFAH BINTI WAN ROSLAN 2024442208
NUR AQILAH BINTI MD NASIR 2024486216
MUHAMMAD AZRI MALINDO PUTRA BIN RIDZUAN 2024473672
NUR ALYA SYAFIQAH BINTI MOHD RAMZI 2025999163
PREPARED FOR: PUAN NORSIAH AHMAD
TABLE OF CONTENTS
1. MARKETING INTRODUCTION.............................................................................................. 3
2. SEGMENTATION OF CONSUMER MARKETS ..................................................................... 4
3. SEGMENTATION OF BUSINESS MARKETS........................................................................ 4
4. SEGMENTATION OF INTERNATIONAL MARKETS ............................................................. 4
5. EFFECTIVE SEGMENTATION .............................................................................................. 5
6. MARKET TARGETING .......................................................................................................... 5
7. EVALUATION OF MARKET SEGMENTS .............................................................................. 5
8. SELECTING MARKET TARGET SEGMENT ......................................................................... 6
9. MARKETING POSITIONING ................................................................................................. 6
10. DIFFERENTIATION AND POSITIONING STRATEGY...................................................... 6-7
11. RECOMMENDATION & CONCLUSION .............................................................................. 7
REFERENCES .......................................................................................................................... 8
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1. Marketing Introduction
Mixue Ice Cream & Tea is a fast-growing beverage and dessert brand that originated in
China and has since expanded rapidly across Asia, including Malaysia, Indonesia, Vietnam, and
beyond. The brand is known for offering trendy products like soft-serve ice cream, bubble tea,
smoothies, and fruit tea at very affordable prices. Mixue’s identity is fun, cheerful, and youth-
focused, with its iconic snowman mascot and red-white color scheme making it easily
recognizable. What sets Mixue apart is its ability to provide good quality, Instagram-worthy treats
at low prices, making it especially popular among students and young adults.
The company’s marketing strategy relies heavily on a mix of cost leadership and social
media engagement. By keeping prices low while offering a modern, enjoyable customer
experience, Mixue has positioned itself as a brand that delivers both value and fun. It uses
platforms like TikTok and Instagram to stay relevant and create viral trends, encouraging
customers to share their Mixue moments online. This word-of-mouth marketing, combined with
strategic store locations and an easy-to-enter franchise model, has helped the brand expand at
an impressive rate.
Through a strong understanding of its market and clever segmentation and targeting
strategies, Mixue continues to attract new customers and grow its presence in international
markets.
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2. Segmentation of Consumer Markets
Mixue segments its consumer markets through various bases. Demographically, the brand
focuses on young people aged between 13 to 30 years old, especially students, teenagers, and
young professionals. This group is highly engaged on social media and is significantly influenced
by current trends and peer recommendations. Geographically, Mixue opens shops in crowded
and popular areas, such as near universities, housing areas, and shopping malls. Behavioral
segmentation is also applied, targeting people who enjoy casual snacking and refreshing drinks,
often bought on impulse. Psychographically, the brand targets individuals with a lively and style-
conscious personality, who prefer affordable products that are also visually attractive.
3. Segmentation of Business Markets
On the business side, Mixue segments its market by focusing on individuals and small
entrepreneurs who are looking for an affordable way to start a food and beverage business. The
brand offers a low-cost franchise model with simple operations, standardized ingredients, and
marketing support. This makes it attractive to investors with minimal F&B experience, especially
in developing countries where people are seeking small business opportunities with high returns
and low risk. Mixue also works with suppliers that can offer consistent product quality at a low
cost, supporting its overall pricing strategy.
4. Segmentation of International Markets
Mixue uses economic, geographic, and cultural segmentation for its international
expansion. It enters markets with a large population of young consumers and growing middle
income segments countries where affordable treats are in high demand. The brand chooses
geographic regions with urban density, such as Southeast Asian cities, where high foot traffic
increases visibility and sales. In terms of cultural segmentation, Mixue maintains its Chinese
identity but adjusts flavors slightly to suit local tastes and preferences, such as less sweetness or
local fruit options. This helps the brand connect with diverse audiences while keeping its core
concept intact.
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5. Effective Segmentation
Mixue’s segmentation strategy is effective because it meets key criteria, it is measurable,
as the brand targets clearly defined age groups and income levels accessible, because the target
market is reachable via physical outlets and digital marketing; substantial, since young and price-
sensitive consumers make up a large market; and actionable, allowing Mixue to tailor its
marketing messages, pricing, and products based on each segment. This focused approach
allows the brand to expand quickly while maintaining a consistent identity that resonates with its
target audience.
6. Market Targeting
Mixue applies a combination of undifferentiated and differentiated targeting strategies. Its
undifferentiated approach is seen in the brand’s consistent pricing and core menu across all
locations, which appeals to a broad audience looking for affordable desserts. However, Mixue
also uses differentiated targeting by introducing seasonal items or flavor variations that cater to
local tastes, and by designing social media campaigns that align with cultural trends in specific
countries. The brand’s main target remains youth and students, followed by families or anyone
looking for low-cost enjoyment. In the business market, Mixue targets first-time entrepreneurs and
small-scale investors interested in franchising.
7. Evaluation of Market Segments
Each of Mixue’s market segments shows high potential. The youth segment is especially
valuable due to its size, social media presence, and responsiveness to trends. However, it is also
highly competitive, requiring continuous innovation to retain interest. Urban market locations bring
in consistent traffic and high sales but may involve higher operational costs. On the business side,
franchise partners in developing regions show strong growth potential, although they require
consistent training and support to ensure brand consistency and product quality. Overall, the
selected segments are strong, profitable, and aligned with Mixue’s business strengths.
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8. Selecting Market Target Segment
Based on its evaluation, Mixue’s primary market target segment is young consumers,
specifically students and young working adults who are active online, enjoy snacking, and seek
trendy experiences at a low cost. This group offers strong word-of-mouth marketing and frequent
repeat purchases. The secondary segment includes families and budget-conscious individuals.
In business terms, Mixue selects cost-sensitive investors in Southeast Asia who are attracted to
its low-risk, high-reward franchise model. These selected segments allow Mixue to maximize
growth with minimal investment in each market.
9. Marketing Positioning
Mixue positions itself as a brand that delivers “affordable happiness for everyone.” Its
positioning is built on the promise of high-quality products at very low prices, offered in a friendly
and joyful environment. The brand image is cheerful, modern, and easy to relate to especially
among younger customers. Through consistent use of its snowman mascot, red-and-white theme,
and visually pleasing stores, Mixue strengthens its identity as a fun and welcoming space. On
social media, the brand emphasizes happiness, affordability, and trendiness, making it appealing
and easy to remember in the minds of consumers.T his clear positioning allows the brand to stand
out in a competitive market and connect with a broad audience looking for affordable treats and
enjoyable experiences.
10. Differentiation and Positioning Strategy
Mixue differentiates itself in the competitive food and beverage market through its low
price, high value strategy. By offering affordable ice cream, milk tea, and snacks in larger portions,
the brand sets itself apart from premium competitors. Its unique brand identity featuring the
friendly “Snow King” mascot and a catchy theme song, further enhances recall and emotional
connection with customers. However, Mixue also uses differentiated targeting by introducing
seasonal items or flavor variations that cater to local tastes, and by designing social media
campaigns that align with cultural trends in specific countries. In terms of positioning, Mixue
presents itself as a fun, youthful, and budget-friendly option for consumers who seek enjoyment
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without overspending. Through consistent branding, wide accessibility, and localized menu
innovations, Mixue successfully positions itself as a go-to destination for affordable indulgence,
especially among students and young adults. Mixue targets first time entrepreneurs and small-
scale investors interested in franchising.
11. Recommendation & Conclusion
To strengthen its marketing efforts, Mixue should continue to focus on digital platforms,
especially TikTok and Instagram, to engage its young audience with creative and trend-driven
content. It is also recommended that Mixue localizes its menu in each country to suit local tastes
while maintaining its low pricing strategy. Collaborations with influencers and seasonal
promotions can further boost brand visibility. Additionally, improving customer feedback systems
can help Mixue adapt quickly to market needs and stay competitive.
While Mixue’s strategies are clearly effective, there are some areas for improvement. The
brand could introduce health-conscious menu options, such as sugar-free or plant-based items,
to reach a wider customer base. A loyalty program or student discount system could encourage
repeat purchases and build customer retention. In terms of sustainability, switching to eco-friendly
packaging would help appeal to environmentally aware customers and strengthen brand
reputation. Lastly, providing stronger support for international franchisees will ensure consistent
quality as the brand continues to grow globally.
In conclusion, Mixue succeeds by knowing its market, using smart segmentation, and
offering great value to both customers and franchise owners. Mixue continues to build a strong
brand identity that resonates with its target market. Ongoing innovation and localized marketing
will be key to sustaining its growth in the global F&B industry.
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References
Mixue Ice Cream & Tea. (n.d.). About us. Retrieved from [Link]
Tan, T. (2023, May 18). How Mixue became Asia’s favorite budget-friendly dessert brand. The
Straits Times. Retrieved from [Link]
Wong, A. (2022, December 5). Why Mixue is winning over young Malaysians. Marketing
Magazine Asia. Retrieved from [Link]
Chen, S. (n.d.). Analysis of marketing strategy of MIXUE Ice Cream & Tea.
Lu, J. (n.d.). Marketing strategy research in China's milk tea industry: A case study. Journal of
Education, Humanities and Social Sciences.
Malu Design. (n.d.). Mixue: From a small house selling “Bing chilling” to a chain of 22,000
stores worldwide. Retrieved from [Link]
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Ji, J. (2023). Analaysis on the Marketing of Mixue Ice Cream & Tea. Advances in Economics
Management and Political Sciences.
TEAM, B. C. (2022). HOW MIXUE ACHIEVE DIFFERENTIATION COMPETITIVE
ADVANTAGE & WIN. brand catalyser.
Yufan Shi, Y. Y. (2023). Analysis On the Marketing Model of Mixue Ice Cream & Tea That
Stands Out from The Saturated Market Based On 4P Marketing Theory. Retrieved from The
Saturated Market Based On 4P Marketing Theory. Highlights in Business, Economics and
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