Brand Market Analysis and Strategic

Segmentation Process
Process of identifying distinct, relevant,
market needs that can be best served
separately than through a generic strategy
 More commonly known as STP
Segmentation Targeting and Positioning
What is the definition of segmentation
Process of dividing the market in fragments or parts
that have similar needs
These segments are deemed to be better served
separately rather than by one product or strategy
The Marketing Management Process
Assessment ends and where Segmentation begins for
new products getting into the new category
For old products, a review of the current market and an
assessment of the product range that covers each
relevant segment. (conduct the usual market audit)
How does segmentation REALLY
EVOLVE
Demystifying all the myths about this process
Once upon a time in LaLa Land
The guru discovered, during a hot summer day,
that by placing dark colored cellophane in his eyes,
it made his eyes.
So he went back to his lab and tinkered and placed
colored cellophane on his glasses…. And viola!!!!
Sunglasses!!!!

Am I a genius or what…. =) - Guru

Business person yata si guru
He made one model and sold the model to everyone in
the market.
Everybody loved the product and everybody bought
the new GURU shades (me tagline pa…. To be a guru,
you have to look like one =P – naks!)
The sales were brisk and Guru made a
fortune…
Next time makita nyo si Guru palibre kayo…. =D
But there were greedy people from the LaLa Land and
is envious of Guru Shades.
One of them is Mr.Clean
Mr. Clean was studying carefully
I have two options
To come up with a better designed pair of shades
Or to come up with a shades that is cheaper.

He went up to 5th floor library for two years and

thought about his idea.
But lo and behold
Fairy Godmother Ming was joyfully flying
through the halls of LaLa Land and saw Mr. Clean,
problematic, pragmatic and in deep thought.
FGM landed and asked MC what his problem is.
FGM simply said that in a market with a new
product, there would always be space for everyone.
 BLING!

MC is now enlightened
MC decided to attack
Target the same market as Guru shades but I would
price my product a bit lower.
This would enable MC to capture market share

Naks low price strategy si MC  me lahing Chinese

din pala
MC did earn his share…. He is the
owner of 35% the market

Guru Shades is left with 65%

…
And the plot thickens…
MC is aggressive
Guru is upset …. (umuusok ang ilong at umiitim ulit
ang buhok)
And more people are looking into the category as the
summer heats up!!!

New player comes in… with lots of cash to dispense

and lots of wits…..
 Sister Shades!!!!!!

How did Sister Shades got the idea?

Simple
Guru Shades and Clean Shades looks the same. With
minimal marketing strategy know how, they thought
one product could fit all…
Sister Shades tried the Guru shades and Clean shades
and she was disappointed. Hindi sya beauty sa shades
na yun…. =P
CheCheng!!!
Idea came from her own that there is a space in the
market that would appreciate better looking shades and
this would be the female market
Mas kikay
Mas beauty
And then there were others
Shades for the elite
Shades for the yuppies
Shades for babies
Shades for oldies (mataas ang grado at baduy)
wehehehe
 The end of it all….

Guru’s share is now only 2% and the shades

market is cluttered by as much as 500 market
players
Segmentation Process EXISTING
PRODUCTS
Integrate ideas in Consumer Behavior Analysis.
Draw out market sizing and existing competitor profile
in each segment
Formulate a SWOT analysis based on the relevant
market segments
Three Approaches in Market driven
strategy
Mass Marketing
Cater to all
Target Marketing
Select segment or group of segments that has the same
needs and wants
Niche Marketing
Select one segment and choose to compete strongly
(usually a very small segment)
Corned Beef Example
Argentina caters to the mass market
Class A, B, C and D
The product and the brand appeals to a very broad
range of consumers
Marketing efforts are concentrated in appealing to the
masses
And below the line efforts are used to target specific
segments
Niche Marketing
Choosing a segment and specializing in it
Kink Cakes chose to specialize on special event
pastries
Goldilocks and Red Ribbon competes for the mass
market specifically A, B and C
Joni’s goes for the C and D
Julia’s Bakeshop targets and lower C and D
Profiling
Process of identifying market segment user
characteristics
User segment can be DESCRIBED IN 3 WAYS
DEMOGRAPHIC
BEHAVIORAL
PSYCHOGRAPHIC
Demographic
Segmentation based on their personal statistics
Age
Gender
Social economic class
Occupation
Example
Gun market
Hunters
Police
Hobbyists
Hobbyist could further be segmented into the
following
Young
Old
Rich
Richer
Behavioral Segments
How the consumers use the product or the rate they
use it.

Rate of usage
User state
Place of usage
Type of industry
Example
SmokerDrinkers
Heavy drinkers
Social drinkers
Non drinkers
Smokers
Chain smokers
Social smokers
Pretending to be smokers
Psychographic
What they think of themselves when they use the
product
What are they thinking prior to purchase
What they think of themselves in relation to the
product
Examples
Weight conscious
Health conscious
Critical
“In”
Discriminate taste
Example of a Market Driven
Segmentation Approach

Entry level Teenagers Adventurous,

drinkers individuality
search

Advanced Yuppies More money to

drinkers spend, pre
disposed to try.
Social Drinker
Sophisticated Executives Care about
image.
Ego
Health Drinkers Retirees Want to enjoy life
with good health
through healthy
lifestyle
Market Segmentation Process for NEW
PRODUCTS
Find the most dominant segmentation base drivers
Cars = Socio economic segmentation
Clothes = demographics -> economic
Description of segments through other brand
segmentation bases
Demographic => Behavioral / Psychographic
 Step #2: SWOT for each
Analyze the segments by formulating a SWOT
analysis for each segment
Implement a CPM for each segment

Brand B

C
Next Steps
Choose the segments where you would have the best
chance of winning
Target that segment for the following reasons
Best chance to win
Most profitable
Most strategic
Stop gap measure
Targeting is a decision….
Market Targeting is a process of allocation of
company effort and resources towards a certain
market segment.
Targeting is a match between the company’s
products and services and the inherent NEEDS
AND WANTS characteristics of the target segment
WRONG TARGET…. LOW PROBABILITY OF
SUCCESS….
Types of target market
Multiple segments
Especially if the needs are homogenous
Single segment
Primary target market (PTM)
Main focal point of all marketing programs
Secondary target market (STM)
Used only as a consideration for marketing programs
After Targeting…..
POSITIONING!!!!!!!!!!!!
Positioning Preface
Conjoint Analysis
Measurement of importance attributes relative to
category
Competitive Importance Attributes Analysis
Drawing of perceptual map per product attribute analysis
Positioning
Conjoint Analysis Example
Ballpens
Attributes deemed as important
Point – sharpness
Smoothness in writing
Ink color – how dark is the ink
Barrel and design

Positioning should be based on an attribute that is solely

your brand’s
 Positioning

Main strategic point of the marketing

management process
Own a word in the consumer’s
mind……
Promil? – Gifted
Colgate = Flouride
Polo = Mint with a hole
KFC = Chicken
Volvo = Safety
How is positioning done
After choosing the target segment
Evaluate competition
Choose a USP (Unique Selling Proposition) - the
difference you choose to communicate to your market.
Missing word is Sustainable
Coin this into a positioning statement
Generate a slogan (work of the ad agency)
Why is Positioning important?
Create a distinction between our brand and its
competitors
Reason for buying
Serves as a guide for marketing mix execution
Examples:

Flouride and healthy teeth for the family

White teeth, fresh breath for the young

Cheap

Global brand
What happens if you are not
differentiated?
What happens if you are too
differentiated?

Not mass market

Differentiated and focused market
What is Positioning?
Creating a distinct and relevant differentiation between
the brand and it’s competitors
Key words
Distinct – being different
Relevant – difference being important
Distinct

 Does not resemble another brand’s position

 Based on actual product or corporate differentiation
and core competence
 Advantage should be sustainable and cannot be copied
by competitors
 Advantage means that the company can do it
best….”NO OTHER BRAND CAN DO IT BETTER”
 Not based on a basic product promise
 Lasang Orange Talaga – tagline for Orange juice
 Natural…… -- BETTER!
RELEVANCE
The advantage / positioning should be:
Important to the target market
Wanted by your target market
It is would be bought by your target segment due to this
positioning
Intention to buy is important
Positioning alternatives
Price – We are cheaper
Product attribute – What the product has or what
they can do (Colgate with 2 flouride)
Product category – We’re a different animal
Product Source – coming from a place where it is
known (Pampanga Tocino)
User Segment – we belong to a different market
(Gatorade – Sports Drink)
Benefit – what they can get from the product
Against competition
Cheaper Positioning

Not necessarily cheaper but best value for money

Product Attribute

At first it was differentiated

according to the beer having less
calories…
Then… all the brands followed….
Product Category

Now it is differentiated as a whole new category

But within this category, they still have to position

among themselves
Product Source

Or you brands that gloats

with New Zealand Milk,
American made, German
sausages, Batangas beef etc

The Philippines has a very

strong Ice Cream equity
User Segment

Where celebrities work out

For the people who know….

Sa mga nag tagumpay
Can be used as a snob appeal
Benefit

Whiter Skin

Younger Skin
Mintee
Mint Candy (obvious ba)
Last for 16 hours in your mouth
Dries fast (recyclable)
No sugar
Good for your teeth – dental supplement attributes
Slogan making contest
Samples
Its mint to be
Pwedeng ibulsa hanggang bukas
Mintee … Ngayon at Bukas
Slogan winning entries
G. Alfaro and J. Santos
Laquian and Carandang
Cabrera and Ong – Sexy, Fresh, Have it All
Huang and Eia Santos, Impossible to be Real
Dator and Javier – Sinless Mint

Complete with justification and rationale

Not the correctness of the positioning but the route
towards the correct slogan
The right positioning route
Segment the market y studying consumers extensively
Analyze the competition and the environment
Choose a position that is unique and valued by
competition
Communicate this differentiation
Top 5 answers are on the board
Each pertains to the brand with various associations
Based on a survey conducted on 100 people
Here are the results
SPRITE
Clear 54
Sweet 39
Fun 17
Sunsilk
Girl 52
Power / Success 35
Affordale / Cheap 10
Black / Colored 7
Assumption / Assumptionista
Sosyal / rich 27
English Speaking 25
Smart / Intimidating 20
Party / Fun 15
Fashionista / Pretty 13
Case: Assumption Natives
Products:
Turon
Bibingka
Puto
Etc
Consumer Segments and description
College
Looks sosyal and snobish
Age range from 17 to 23
Budget is not a concern
Good taste and patronizes the products that taste good
rather than the brand
Price conscious
High school
Impulse buyers
Rich kids
Brand conscious
Limited time to go to canteen and eat
Used to grand lifestyle
Fun loving
Quite proud of being Assumptionistas
Grade School
Limited budget
Limited time
Rich kids
Product loyal and brand loyal
Friends are the best influencers
Task…..
Provide the target market and positioning of this
product
Name your product - Brand
Make a product description of your brand
Study the competitors of your target segment
Make a positioning proposal