Assignment 3

Principals of Entrepreneurship

BUS321

Segmentation, Targeting and Positioning

Submitted By

Shuvojyoti Talukder

ID: 18104294

Section 01

Submitted to

Ahmed Abir Choudhury

Brac Business School

BRAC University

Date: 5th September, 2020

 Segmentation, Targeting and Positioning strategies for

Etho Helmets

The STP model is one of the core components of the market which is needed to serve a market
properly. It refers to Segmenting the market, Targeting the customer market and Positioning the
brand in the market. Etho Helmet is a product which can provide the wearer with fresh and clean
air to breath. It prevents the user from intaking the toxic air. This is a product that came to
existence from the idea of providing clean air for the people of large cities where the pollution is
severe. Our product can solve the problem of polluted air for some certain group of people. But
for supplying the product for whom it is made, we did market research to determine the
segmentation of our product in the present market, what will be the targeted market and how the
product will be positioned in the market.

Segmenting the Market:

Market segmentation is finding out potential customers, groups or segments, their characteristics
and dividing the market based on it. For a company to launch the product, they must do research
on segmenting the market available for it. Likewise, we did research on the market for our
product and segmented the market which are best for the product.

The product is most suitable for the big cities like Dhaka or Chittagong because this is where the
air pollution is most severe. In these cities every year many people suffer and dies because of
airborne diseases caused by air pollution. Also, the customers we want to reach our products to
will be mostly available in these cities.

Also, the price range for our product is such that people from middle class to upper class, it will
be in range for everybody. We want to provide our product with such a price so that everyone
can buy it. We want to ensure safety for the majority of the people to whom we can market our
products.

Moreover, people of present time are very health conscious. They became even more conscious
about their health after the spread of Coronavirus. Considering that side of the market we can
also segment the market for our product based on the lifestyle of people as this helmet can also
the wearer from the virus as it filters the air of the germs and all toxic substances present.

So, based on the factors of geographical condition, people’s income and their lifestyle, we have
decided to segment our target market into the above-mentioned segments as these ways our
product can help and satisfy the greatest number of people who are included in our marketing
segments.

Determining the Target Market:

Target Market defines a potential customer group to whom the company wants to sell their
product. The company can also direct its marketing efforts targeting towards a specific group of
customers. After segmentation of the market for our product, we need to select for whom we will
make our products or the group of customers we are willing to target for the marketing strategies
to implement. For the target market, we chose the bikers of Dhaka and Chittagong city.

We chose them because the majority of personal vehicle owners of these two cities are Bikers. In
Dhaka and Chittagong city, there are in total more than four lakhs bikers with valid license and
without a valid license, there are almost ten lakhs bikers. These large group of people are heavily
affected by the polluted air of the city as they need to ride their vehicles daily to go to work or in
some other places.

The car owners have air purifier mounted in the car or they can install one as it is very easy and
an available service. But the bikers don’t have this kind of protection from the toxic and polluted
air. That makes them a potential target for our product market. That is why, we targeted our
marketing strategy towards the bikers.

Developing the Positioning Strategy:

Positioning refers to the place that a brand occupies in the minds of the customers and how it is
distinguished from the products of the competitors (Wikipedia). For a product to get known and
to succeed in the market, it must be positioned in a way that it can capture the sight of the
customers. To do that, a product need to have features unique to it.

Etho helmet is a product which is same as the other helmets but at the same time it is not like
them. It has some distinct features that distinguishes it from its similar product line. We have
developed our positioning strategies by selecting some core qualities of our products which are
different from others. These are the features that makes it a unique product in the present market
and helps it making a position of its own.

By using our product, the user can remain safe while going outside for works or any personal
needs. The wearer will get a supply of fresh and clean air every time he/she wears it. In addition
to that, the airflow will also keep the temperature inside of the helmet low, whereas wearing
other products with the face shield down. Also, the customers can get all these facilities at a price
which is slightly higher than the normal quality helmet price. If compared with the premium
grade helmets, the price of our product is lower than them. But our product in quality is on par
with the premium products of the market. The price of our product is in such a range that people
of middle class to upper class, everyone can buy it.

A company also needs a logo of its own so that the customers can remember it. Also, it needs a
tagline to reinforce the company’s positioning strategies. In case of Ehto helmets, there is a
company logo as well as a tagline. The tagline for Etho Helmets is “Breath Fresh”.

Coherence among Segmentation, Targeting and Positioning:

So, for our product, we have selected the big city areas like Dhaka and Chittagong. We have
chosen this because most of the people live in these cities. In these cities, the rate of air pollution
is the most severe compared to other parts of Bangladesh. Also, most of the people here use
motorbikes to commute in their everyday life. They also suffer the most because of the polluted
air. Moreover, the people in these cities are mostly middle class to upper class who uses bike. So,
by segmenting the market based on the environmental condition, the group of people and their
income, we have selected the market which we want to enter.
In this market, the most potential buyers will be the bikers who are the target customer of our
selected marketing area. They don’t have any type of equipment which can protect them from
inhaling the toxic air. But the bikers already use helmet. So, why they would buy it. We have
presented them some unique features of our product which will attract them to check and buy our
products because, who doesn’t want lo live a safe life. In this way we have created a position for
our brand in the market. Also, we have introduced them with our logo and a beautiful tagline
“Breath Fresh”, so that they can remember our brand very easily.

In the discussion above we have seen that, by segmenting the market we have found group of
customers that we want to target and after finding that we could decide how to approach them
and how to convince them to buy our product that is positioning the brand into the targeted
market. So, we can say that Segmentation, target market and positioning the brand, these three
things are not possible to do without one another.