SYNOPSIS

Batch: SS/10-12/ISBE-A
Group name: Probatives

Topic: Role of Segmentation and Targeting for marketing a Periodical.

Introduction:

Indian periodicals market has seen a major change in the last few years on respective fronts which are namely changing tastes & preferences of todays customers, major technological changes, role of channel distributors & publishers who have helped this industry to perform well.

Secondary research Secondary research is the process where we take the help of the information available from the previously done research. It may be taken from internet, magazines, newspapers, any books or we can also buy a research by paying some particular amount from any research published by any organization that had already conducted the research related to our research. In our case the secondary research includes mainly the internet findings and the related magazines and Indian aviation sector website etc. To appreciate the importance of segmentation, just try to imagine what it would be like if magazine racks were not segmented, and titles were displayed in, say, alphabetical order! Segmentation is central to how we present, measure and market our titles to both retailers and consumers, the segmentation process should be under constant review, preferably, on an industry wide basis.

The concept of segmentation is not new or unique to magazines but is a well known method of grouping people, products and services into distinct groups. Everyone and everything can be segmented. Segmentation can be simplistic (male or female) or more detailed (age group and income bands). An example of segmentation within magazines would be Womens Interest, which is then further grouped to reflect shoppers interests such as Hair and Parenthood. Despite the constant evolution of the magazine market, segmentation is not reviewed regularly, and even then often only reviewed from a data integrity perspective. Taking Womens Weeklies as an example, there have been several launches into this market in recent years, with the introduction of fashion focussed titles such as Grazia and Look. These clearly sit in their own group, yet this market remains split into only traditional and celebrity sub sectors. We are potentially missing out on opportunities to define and redefine product groups, the way we and our shoppers view them and therefore the way we market, range and merchandise magazines. Segmentation is the basis of all range reviews and, after defining the category, it is the most important stage in any category management process. It establishes the ground rules from which to review a range and can positively influence listings of titles if done correctly. The industry views these groupings as simply a way of making reporting easier, when in fact segmentation is a powerful, strategic tool in establishing your titles position in the market. Put simply, it is the difference between being ranked 10th in one sub sector and number 1 in another. It also helps the shopper navigate the fixture whilst communicating a titles content.

How

is

it

done

currently?

Magazines have traditionally been segmented based on their content with little consideration being given to the different shoppers. This results in definitions that are too broad and doesnt acknowledge the differences in those that buy them. For example, Vogue and In Styles content is focussed on fashion yet they are bought by distinctly different shoppers. Historically, Womens Weeklies in WHSmith High Street sat together in one group.

When it was decided to apply further segmentation, tellingly, they applied segmentation used across the trade that differs from the industry standard. So, why do we sidestep official segmentation in favour of our own? The answer is simple. As the number of titles in the market has increased, content has evolved, and shoppers change, so does our requirement to reflect these differences when segmenting our magazines. Put simply, it is fundamental for market survival. Successful segmentation enables you to effectively target your core shopper whilst enforcing your position in a crowded competitive market. Benefits of Segmentation:

Historically, some people have viewed segmentation as simply a method of reporting on the performance of groups of comparable titles. Whilst it is recognised that segmentation aids the reporting of a titles past performance, what is sometimes underestimated is segmentations power to shape and influence a titles future performance. Influencing performance can be done in a variety of ways, such as marketing, range, merchandising, product development and industry leadership.

Marketing

Strategies:

Segmentation identifies groups of titles that will appeal to shoppers with similar traits who will respond in the same way to marketing activity. The way in which we target these customers should be tailored to reflect this. For example, shoppers that buy Real Life titles such as Take a Break and Chat are different to those who buy Pick Me Up and Love It! Therefore, not only should segmentation reflect this but the way in which we communicate to these customers needs to be different. Never before has this been so critical when return on investment firmly asserts its importance in the current climate.

Range: In a complex and highly populated category, buyers and category teams rely on segmentation to identify and support optimum range decisions. The benefit for publishers and distributors lies in striking a balance between offering shopper choice and stocking the best sellers within the sub sectors that you operate. The more a market is segmented, the more opportunity there is for smaller titles in a sector to gain exposure at retail. However, its not only the number of sub sectors that is important to a retailer but how represented particular sub sectors are in relation to the retailers customers. Merchandising: Achieving a retail listing is clearly the first and most crucial stage in getting your title into a shoppers basket. However, listings alone will not guarantee sales. Your product must be located where your shoppers would expect to find it. Product location will also help communicate the titles content to new shoppers, encouraging trial purchasing. Developing New Products:

Segmentation is also an opportunity to identify gaps in the market where shopper needs are not being met. Research into new product development can be an expensive process and therefore segmentation can be a powerful and relatively inexpensive supporting approach. Thought Leadership:

Revising segmentation is an effective way of demonstrating thought leadership. Making sense of our market and understanding shopper dynamics is pivotal to leading change. However it is not sufficient to approach segmentation projects half heartedly. Many industry bodies have embarked on market segmentation, but if done incorrectly without full knowledge of the market or shoppers or with bias for your own titles, the full benefits may not be realised, thereby defeating the objective.

Market force recognises the many benefits in keeping segmentation relevant and has invested in re-segmenting the established markets of Womens Weeklies, Womens Lifestyle and Home Interest. The purpose was to review and either validate the current segmentation or revise in line with market developments. The category management team at Market force devised its own approach to segmentation. Much time and effort has been spent on the methodology behind segmentation to ensure confidence and buy-in of the final results. It begins with a thorough assessment of each titles characteristics from content and features to size, cover price and paper quality. This is followed by in-depth focus groups attended by a mixed shopper base to gain insights into their view of a title and their relationship with it. When embarking on a segmentation project, it is important to operate with full knowledge of the market. In addition, utilising a specialist category focused resource enables a credible objective view of the market and adds the ability to execute the results with pace through well established retail relationships.

Future

of

Segmentation:

Segmentation done successfully is not a one-off exercise but a process of continual learning. As shopper behaviour changes and people exit and enter the market, reviewing and addressing your customer base, and therefore your segmentation, is fundamental to ensure continued sales. Segmentation will be an important tool in the battle for retail space and driving sales and ultimately profit. Increasingly, more people will understand and therefore adopt segmentation as an integral part of any successful product strategy. It is also essential that the industry promotes and adopts improvements to segmentation and, most importantly, streamlines the process for distributors to implement change.

After proper understanding about the segmentation we have planned to do primary research in the area of periodicals market where we would interview 5 magazine publishers and review the industry as a whole, also we would have a one to one interview with the potential customers of five different magazine readers and also conduct a focused group discussions on the same.

Group members: Tehzib Patel Rahul Jogi Ravi Shah Ram Upadhyay Abhishek Mishra