GROUP 4, MBA (S 3)

CONSUMER BEHAVIOUR
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High Assignment 1
Resources
Resources

1. Under which circumstances and for what types of products should a marketer
segment the market on the basis of (a) awareness status, (b) brand loyalty, and
(c) usage situation?
Awareness Status:
The following circumstances will utilize awareness status segmentation:
• New entrant in market (benefit awareness).
• Any changes in existing product’s attributes (product line extention via umbrella
branding/family of name branding/multi branding)
Examples of awareness status of segmentation are:
 Health products, supplements or FMCG will try to make consumers aware of the
benefits of their products and the potential dangers of not changing the existing
purchase behaviors. For eg:
o Iodized salt was introduced with making consumers aware of the dangers of
low iodine diets.
o Minute maid pulp was a new entrant which made users aware of the fact that
their product contained real fruit pulp.
o Maggi atta noodles focused on making the consumers aware of the quick and
healthy snack options as an option to traditional snacks/other noodles
available in market.
Brand Loyalty:
When an organization is looking for ‘maintenance strategy’ as a part of its marketing
exercise, it will try to segment the market as its brand loyal.
Examples of brand loyalty of segmentation are:
 Airlines & banks offering loyalty points to their regular customers.
 Mobile companies (Docomo & Uninor) offering extra talktime to ‘old’ customers.
Usage Situation:
When an organizations is creating products suitable only for that particular occasion, i.e.
it cannot or is preferred not to be used in other times, the organization segments the
market accordingly for marketing of its products:
Examples of brand loyalty of segmentation are:
 Special occasion (valentine day, new year/Christmas, rakhi/diwali) cards, gifts &
decorations sold by various companies like Hallmark, Archies, Nestle Cadbury’s
etc.
 Separate line of office & home furniture by Godrej Interio.

Group Members: Rahul Mukherjee, Rajat Goel, Bharathi D R & Sonam Kejriwal
 2. For each of the following products, identify the segmentation base that you
consider best for targeting consumers: (a) Coffee, (b) Soups (c) Cell phones, and
(d) Designer sunglasses. Explain your choices.
Coffee:
Segmentation base:
 Geographic segmentation: South Indians prefer coffee than north Indians. (loose
filter coffee, Indian coffee house chain)
 Lifestyle basis: Status seekers will prefer imported premium coffee compared to
domestic beverages available for general mass. (Starbucks, Arabia etc)
 Benefit segmentation: Coffee flavours and health aspects are used to target
benefit seekers. (flavored instant coffee mix, de-caffeinated coffee).
Soups:
Segmentation base:
 Use-related Segmentation (awareness status): Making consumers aware of the
healthy aspects of soup consumptions
Cell Phones:
Segmentations:
 Benefit Segmentations: Convenience to consumers due to size, weight, ease of
use etc. Eg. I ball making special phones targeting women which allow SOS calls
to a number even with zero talk time.
 Use – situation: Biz phones are targeted to executives. Eg. Phones with projector
facility, blackberrys etc.
 Status Seekers: Special limited edition luxury cell phones are made keeping in
mind the elite social class who would seek status from owning the phones. Eg:
Gold plated Samsung, vertu etc.
Designer Sunglass:
Segmentation:
 Status seekers: Designer sunglasses are targeted to elite social class. Eg.
VOGUE , Bvlgari, PRADA, Burberry, Salvatore Ferragamo, Versace, Dolce &
Gabbanas.
 GROUP 4, MBA (S 3)
CONSUMER BEHAVIOUR
3. How can a marketer for a chain of health clubs use the VALS TM segmentation
profiles to develop an advertising campaign? Which segments should be
targeted? How should the health club be positioned to each of these segments?
The VALS profile in this case is as follows:
VALS Segment
Pros
Cons
Possible Campaign
Innovators
Receptive to new products
Skeptical of advertising
Finer qualities of a healthy life style
Thinkers
Read widely
Low interest in image
Educational health related
Achievers
Attracted to premium products
Average TV watchers
Highlight premiumness of health club
Experiencers
Follow fashion
Attend to advertising
Buy on impulse
Action oriented, highly fashionable Health club approach
Believers
Watch tv more than avg.
Slow to change habits
Hype health as a habit
Strivers
Spend on personal care
Limited discretionary income
Highlight personal care aspect
coupled with reasonableness of charges.
Mention payment option flexibility

Group Members: Rahul Mukherjee, Rajat Goel, Bharathi D R & Sonam Kejriwal
Makers
Shop for value
Read specific magazines only
Explain value additions in life after joining
Survivors
Brand loyal, trust advertisements
Least resources
Only to be pitched if very reasonable charges

The segments to be targeted (in order of preference) & the respective positioning are as
follows:

ℜ Maker: as they look at value additions and are essentially outdoor people would
be comfortable with payment. Health club would be positioned a lifetime
membership home comforts personal attention and basic regular health
packages.
Advertisement visualization: a person who is instructed by a personal coach in
swimming, then explains about complete body exercise in large comfortable uncluttered
surroundings.

ℜ Achievers: As they are attracted towards the premium class of the club, the
health club would be positioned as a chain brand with premium offerings on
various health related activities.
Advertisement Visualization: a personal pampering session at the club

ℜ Experiencers: As they are action oriented and ready to try new things also would
have the income to support club membership, health club to be pitched as a hot
and happening place where all fashion icons come to get in shape.
Advertisement Visualization: Celebrity endorsement to be used

ℜ Strivers: as they spend the most on the personal care even at the cost of taking
credit, health club to be positioned as a complete personal care centre.
Advertisement Visualization: before and after experience sharing

ℜ Actualisers: As they have the most resources and would be drawn to any
exclusivity of the club, the positioning should be to hype the luxury and the
exclusivity.
 GROUP 4, MBA (S 3)
CONSUMER BEHAVIOUR
Advertisement Visualization: health club luxury video.

Group Members: Rahul Mukherjee, Rajat Goel, Bharathi D R & Sonam Kejriwal