Spatial Market Segmentation: A data-driven approach to identifying priority rice market segments in the Philippines

Paguirigan, N., Maunahan, A., Laborte, A. (2024). Spatial Market Segmentation: A data-driven approach to identifying priority rice market segments in the Philippines. International Rice Research Institute, Los Banos, Laguna, Philippines.

Market segmentation is essential for developing agricultural products that meet the diverse needs of farmers and consumers. Understanding the geographical distribution of these market segments can support the development of well-targeted and demand-driven breeding products. This study demonstrates how spatial market segmentation can be applied to map and identify priority rice market segments at the subnational level, using the Philippines as a case study. We identified spatially-referenced data to represent key market segment criteria for rice including ecosystem (whether irrigated or rainfed), planting method (transplanted or direct seeded), crop maturity (early, medium, late), and grain quality (texture and grain length). These were overlaid with rice area statistics resulting in a map of distinct rice market segments. To further characterize the segments, we linked these to spatially-referenced indicators such as rice area, population density, and poverty level. This data-driven approach supports the identification of priority market segments, enabling breeding programs to optimize resource distribution and develop more impactful innovations tailored to local market needs. This method offers a framework for other crops and regions, providing a strategic basis for enhancing the effectiveness of breeding efforts.