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Brand: Centre Fruit


Product: Chewing Gum
Medium: TVC
Agency: Ogilvy and Mather
Creative Team:
National Creative Director: Abhijit Avasthi
Creative Director: Anurag Agnihotri
Associate Creative Director: Ashish Naik
Senior Copywriter: Nasrullah Husami
Client Services Director: Lavanya Anirudh
Account Director: Antara Suri
Account supervisor: Neha Aggarwal
Director: Rajesh Krishnan
Production House: Soda Films
 
We have a jugalbandi between a tabalchi and a vocalist, where the tabalchi is able to duplicate
the vocalist's skill through his tabla beats. But then the vocalist suddenly looks in the distance
and begins lapping his tongue in a kind of tone that the tabalchi cannot replicate and the
vocalist's followers are quick to declare him a winner. Its only then that we see someone carrying
a hoarding for Centre Fruit in the distance. Added are interesting touches like the Tabalchi
combing his hair and the vocalist¶s supporters declaring him winner before anyone could react,
make the TVC fun.

   


To give this an authentic small town flavour, the commercial was shot in a temple compound at
Wai, a small town near Pune.


Center Fruit is is a liquid filled gum and it stands for 'irresistable taste'. The µirresistable taste¶ is
captured very well in the baseline, 'kaisee jeebh laplapaayee'. Post the initial commercial of
'Phone booth' and the subsequent 'ATM' commercial aired in 2006-2007, the brand was being
promoted more through flavour launch films.

The need was felt to do a theme commercial that would cut across masses. This is when the idea
of the 'Jugalbandi' was born. The communication objective was to reiterate the brand proposition
of 'kaisee jeeb laplapayee' in a refreshing way.

Cartoon network has partnered with Perfetti Van Melle to integrate a brand into an animated
feature. µBalla Bowlµ, a cricket-themed co-production by Turner International and Animasia,
will premiere on Cartoon Network on Sunday, August 29, 2010 at 12 noon in Hindi, English,
Tamil and Telugu.

The 90 minute movie tells the captivating story of a motley bunch of kids with their own
cricket dreams and problems, coming together as a team to emerge as glorious winners.
Perfetti Van Melleµs flagship candy brand µCenter Fruitµ has been innovatively integrated
throughout the animation and features as the key sponsor of the cricket stadium and
championship trophy.

Speaking on Cartoon Networkµs industry first


in-feature initiative, Rohit Sarma, Executive
Director - Network Ad Sales, Turner
International India Pvt. Ltd, said, "Cartoon
Network has been ahead of the curve in
providing innovative solutions to our partners
and has successfully delivered impactful brand
campaigns for many years. For the first time in
the Indian animation industry, Cartoon
Network brings alive the concept of in-feature
brand placement and we are extremely excited
to deliver this innovation for Perfetti and Center
Fruit with a seamless integration of the brand
with Balla Bowlµs storyline."

Balla Bowl is the outcome of Cartoon Network Asiaµs srategic content partnership with
Animasia, one of Malaysia¶s leading creative studios, to produce a cricket based property
about a group of local Indian kids who aspire to play in the biggest inter-school cricket
championships.

Balla Bowl is a story about a young boy Sachin aged 12 whose life artfully journeys down a
road that highlights the emotional and perilous trials and tribulations of a motley bunch of
kids led by him, each with his own dreams and problems, finally coming together when it
matters most to emerge as glorious winners and in the process, change the history and
perception of the game of cricket forever! Watch a new µSachinµ, use his passion and love
for the game to form an eleven member team to compete in the biggest championship in
Balla Bowl.

O&M has unveiled the latest commercial for Perfetti's liquid filled gum, Center Fruit.
Armed with a baseline of 'Kaise jeebh laplapaayee', this is the third commercial by the
confectionary major after its initial films of Phone booth and the subsequent ATM commercial
aired between 2006-07.O&M says the latest commercial was born out of a need to do a theme-
based commercial that would cut across masses. The film, titled 'Jugalbandi' is a humorous take
on Center Fruit's presence in the middle of a duel between a tabla maestro and an experienced
classical singer.
'   

Ford India has started a New Year with a best monthly sales opening ever, with 10,026 units sole
in a initial month of 2011 a some-more than four-fold increase, opposite 2453 units sole over a
same duration final year. By reaching a 10,000-unit monthly sales milestone, Ford has surpassed
a prior monthly record of 9,478, set in Mar 2010.

³2010 was a landmark year for us, with Ford scarcely tripling a annual sales volume. Now we¶ve
begun 2011 with record-setting Jan sales. We have carried a movement of final year¶s superb
opening into a new year by channel a 10,000-unit sales mark,´ Boneham said. ³We are
constantly fine-tuning a opening for limit growth, and this is only a commencement of what we
expect will be an implausible year for a company.´
In 2010, Ford India sole 83,887 vehicles, an considerable year-on-year boost of some-more than
184 percent. The company¶s expansion has been mostly driven by a spreading recognition of a
award-winning Figo. Ford India has sole some-more than 68,000 units of a best-selling compress
given a launch in Mar 2010. Clinching 20 Indian vehicle attention awards, Figo has won some-
more honours than any other vehicle in Indian automotive history.

³It¶s intensely delightful to see Figo resonating with business as a good value-for-money vehicle.
It is also heartening to see Figo winning so many prestigious awards in a vehicle industry, some-
more than any other vehicle in Indian history´ Boneham added.
One of India¶s best-selling vehicles, a Figo has combined Ford¶s position as a vital force in a
Indian automotive sector.
Ford Figo was voted Indian Car of a Year 2011 by a jury row of heading automotive repository
editors. The compress vehicle also won 4 µCar of a Year¶ awards from Bloomberg UTV-Autocar
India, ET ZigWheels, Motorbeam.com and Team-BHP.com respectively. Various other media
organisations celebrated Figo with Small Car of a Year, Compact Car of a Year, Design of a
Year, Viewers¶ Choice and Readers¶ Choice awards. Ford India was also named Manufacturer of
a Year by Bloomberg UTV-Autocar India and Motor Vikatan magazine.

To safeguard world-class patron service, Ford India has been expanding a sales and use network
opposite a country. The company¶s play network has increasing to some-more than 170 outlets in
some-more than 100 cities in India.

     

Though the Rs 400-crore Dettol continues to lead the antiseptic liquid handwash market with
over 50% share, rival Hindustan Unilever's (HUL) mass-priced soap brand Lifebuoy has begun
taking away share from Dettol in recent months, even though marginally. HUL has been pushing
Lifebuoy on the same hygiene and germ protection platform that Dettol is synonymous with.

Reckitt Benckiser has decided to reposition Dettol ² its highest selling brand ² from just
premium to address the mass segment as well. Dettol liquid handwash is in the process of being
rolled out in 135-ml packs priced at Rs 38 across all three variants ² original, skincare and
sensitive. Dettol soap, too, has been introduced in a smaller SKU of 35 gm priced at Rs 6.

When contacted by ET, Reckitt Benckiser India MD Chander Sethi said: "It's the first time we
have introduced Dettol in small packs such as these. The move is part of our overall strategy to
address diverse consumer needs."

While the Rs 1,200-crore Reckitt has had small SKUs for other brands in its portfolio such as
disinfectants Harpic and Lizol and mosquito repellent Mortein, it's the first time that Dettol's
soap variants are being introduced in small packs.

Prices of other Dettol variants remain unchanged as of now. The 250-ml handwash continues to
be priced at Rs 55, the 1-litre pack is priced at Rs 150 while the 100-ml refill pouch is priced at
Rs 30. Rival Lifebuoy handwash soap is currently available in three SKUs: Rs 40 for 200-ml, Rs
70 for 540 ml, and at Rs 150 for 900 ml. Its refill pack is priced at Rs 25 for 180 ml.

Dettol is poised for a spate of brand extensions in the personal care space including gels,
sanitisers and beauty products. While declining to divulge specific future plans, Mr Sethi
indicated:

"We are planning to roll out many variants of Dettol, but each of these will continue to occupy
the brand's core germ protection positioning." Reckitt Benckiser has set a sales target of Rs 1,000
crore for its Dettol brand by year 2010. The company recently concluded a Rs 125-crore capacity
expansion exercise with two new plants in Jammu and Sitargunj in Uttaranchal.

r '

Dettol is manufactured by Reckitt Benkiser Heathcare and is now marketed in many different
forms that include hand-wash, sanitiser, anti-bacterial wipes and shower gel to name a few. I am
sure that many households will have a bottle of Dettol stored away somewhere, it is a very useful
and versatile antiseptic liquid. Even I will readily admit that the golden liquid has a horribly
pungent smell, as you unscrew the cap and take it off of the bottle you feel like you have walked
into a hospital ward!

Dettol provides protection against germs and bacteria, it is a professional at the job. It is rare that
I use the antiseptic liquid neat, for most tasks it does require diluting. When you tip a little Dettol
into some water it immediately clouds the water, apparently this happens because some of the
ingredients are insoluble. Dettol has to be stored away with care, well away from little fingers. If
any of the family have sustained cuts or grazes then a drop of well diluted Dettol is the perfect
solution to clean the grazed or cut area with.
A well diluted solution of Dettol is just the thing to keep the door handles germ free and the
bathroom surfaces benefit from a wipe-over too. I soak my cotton handkerchiefs in a bucket with
a drop of Dettol, handkerchiefs can be grizzly at the best of times, at least this makes them feel
hygienic. Toilets, baths and waste bins all benefit from a wipe over with Dettol. But for some
unknown reason they say that if you use the antiseptic liquid on acrylic baths and sinks it must be
very well diluted. We have vinyl flooring in our bathroom and it always feels clean after a wipe
over with Dettol. My friend uses a capful in her bathwater, now this is something that I couldn't
do! I have never noticed the smell lingering on her but personally I don't think that I would want
to feel my skin to smell of Dettol.

If Dettol is mixed with baby oil it makes an effective insect repellent, the mixture turns white and
then you just apply a small amount to your skin. I will also pass this useful snippet of
information on to any model enthusiasts. My nephews used to play Warhammer, they were avid
fans and used to trip into the city every weekend to attend workshops. While they were at the
workshops they used to paint the models. If they needed to strip the paint from a model to repaint
it then they used to soak the model neat Dettol for a while and the old paint then lifted off easily.
(This needs to be supervised by an adult)

A 500ml bottle of Dettol costs about £2.50. ($4) It is a multi-purpose antiseptic liquid that does
an excellent job in its fight against germs and bacteria. We have used it for years and have
always found it effective. A first class disinfectant for everyday use.
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Vijay mallya is referred to as a india¶s richard Branson. A great part of the personality of the
Kingfisher brand is based on Mallya's personality.

1. Co-branding partnerships with like-minded brands and an aggressive strategy to promote its
guest loyalty programme, Ä , would be the major focus of UB Group's Kingfisher
Airlines this year. The company is planning to spend close to Rs 40 crore on various media and
below-the-line marketing activities for the year.
2. Running several guest loyalty programmes. Already enrolled 20,000 within two months of
launch.
3. Tying up with a number of restaurants
4. Talks with Goa Tourism to boost domestic traffic during monsoon
5. Done promos with Malaysia Tourism to organise a golf tournament for CEOs in Delhi
6. Running online contests to boost traffic
7. Looking at partnering with premium hotels like Park Hotel
Kingfisher:- As the promoter defines themselves as Kingfisher experience it is concentrating on

Customers:-Those JET/Indian( I.A)/ Shara flyers who are looking for a new in experience in
flying as well as Cost, thats the reason they call themselves Value Air.

Kingfisher has tied up with many corporates, which states their positioning strategy as well as
target audience. and from the recent statistics where it is was succesful in taking about a great
chunk of Jet corporate customers, shows the customers interest in this new experience of flying.

Place of operation:-Analsying the places from Kingfisher operates also states their postioning
strategy as they fly and fly to metro/tier-1 cities mainly.

Technical:-Airbus flights ( Boeing exploring) with high capacity and facilities.

Booking/customer Tocuhpoints:-Main harping on internet bookings and agents.

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Kingfisher Airlines Statistics


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April 2007 ± March 2008 12,414,336 - 61%
April 2008 ± March 2009 10,850,359 12.6% 60%
April 2009 ± June 2009 2,851,360 - 69%

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The domestic Kingfisher First seats have a 48 inch seat pitch and a 126 degree seat recline. There
are laptop and mobile phone chargers on every seat. Passengers can avail of the latest
international newspapers and magazines. There is also a steam ironing service on board
Kingfisher First cabins. Every seat is equipped with a personalised IFE system with AVOD
which offers a wide range of Hollywood and Bollywood movies, English and Hindi TV
programmes, 16 live TV channels and 10 channels of Kingfisher Radio. Passengers also get
BOSE noise cancellation headphones.

Domestic Kingfisher First is only available on selected Airbus A320 family aircraft.

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The domestic Kingfisher Class has 32-34 inch seat pitch.

Every seat is equipped with personal IFE systems with AVOD on-board the Airbus A320 family
aircraft. As in Kingfisher First, passengers can access the movies, English and Hindi TV
programmes, a few live TV channels powered by DishTV and Kingfisher Radio. The screen is
controlled by a controller-console on the seat armrest. Earcup headphones are provided free of
cost to all passengers. The default channel shows, alternating every few seconds, The aeroplane's
ground speed, outside temperature, altitude, distance and time to destination; the position of the
aircraft on a graphical map and one or more advertisements.

Passengers are served meals on most flights. Before take-off, passengers are served bottled
Lemonade.

On-board the ATR 72-500s there are 17 colour LCD drop-down screens mounted along with
loudspeakers for audio in the cabin overhead, a head-end unit to handle CDs and DVDs, and a
crew control panel. The screens measure 12.7 cm by 9.3 cm, weigh 0.2 kg each and are spaced
every two or three seat rows along both sides of the cabin.

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After Kingfisher Airlines acquired Air Deccan, its name was changed to Simplifly Deccan and
subsequently to Kingfisher Red. Kingfisher Red is Kingfisher Airline's low-cost class on
domestic routes. A special edition of Cine Blitz magazine is the only reading material provided.

Kingfisher Airlines is the first airline in India to extend its King Club frequent flyer program to
its low-cost carrier as well. Passengers can earn King Miles even when they fly Kingfisher Red,
which they can redeem for free tickets to travel on Kingfisher Airlines or partner airlines.

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The international Kingfisher First has full flat-bed seats with a 180 degree recline, with a seat
pitch of 78 inches, and a seat width of 20-24.54 inches. Passengers are given Merino wool
blankets, a Salvatore Ferragamo toiletry kit, a pyjama to change into, five-course meals and
alcoholic beverages. Also available are in-seat massagers, chargers and USB connectors.

Every Kingfisher First seat has a 17 inch widescreen personal television with AVOD
touchscreen controls and offers 357 hours of programming content spread over 36 channels,
including Hollywood and Bollywood movies along with 16 channels of live TV, so passengers
can watch their favorite TV programmes live. There is also a collection of interactive games, a
jukebox with customisable playlists and Kingfisher Radio. Passengers are given BOSE noise
cancellation headphones.

The service on board the Kingfisher First cabins includes a social area comprising a full-fledged
bar staffed with a bartender, a break-out seating area just nearby fitted with two couches and bar
stools, a full-fledged chef on board the aircraft and any-time dining. A turn-down service
includes the conversion of the seat into a fully-flat bed and an air-hostess making the bed when
the passenger is ready to sleep.

Both Kingfisher First and Kingfisher classes feature mood lighting on the Airbus A330-200 with
light schemes corresponding to the time of day and flight position.

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The international Kingfisher Class seats offer a seat pitch of 34 inches, a seat width of 18 inches
and a seat recline of 25 degrees (6 inches). Passengers get full length modacrylic blankets, full
size pillows and business class meals.
Each Kingfisher Class seat has a 10.6 inch widescreen personal television with AVOD
touchscreen controls. The IFE is similar to that of the international Kingfisher First class. It can
also be controlled by a detachable remote-control console fitted in the armrest. This device can
be used to control the IFE, reading-lights, play games and even has a credit-card swipe for
shopping on Kingfisher's 'Air Boutique'. It also has a facility for sending text-messages, though
the service isn't provided by Kingfisher.

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Kingfisher's IFE system is the Thales TopSeries i3000/i4000 on-board the Airbus A320 family
aircraft, and Thales TopSeries i5000 on-board the Airbus A330 family aircraft provided by the
France-based Thales Group.

Kingfisher was the first Indian airline to have in-flight entertainment (IFE) systems on every seat
even on domestic flights. All passengers were given a "welcome kit" consisting goodies such as
a pen, facial tissue and headphones to use with the IFE system. Now, passengers of kingfisher
class are not given "welcome kits" but as mentioned earlier, a complimentary bottle of lemonade
and earphones for use with the IFE are still given. Initially, passengers were able to watch only
recorded TV programming on the IFE system, but later an alliance was formed with Dish TV to
provide live TV in-flight. And in a marked departure from tradition, Kingfisher Airlines decided
to have an on-screen safety demonstration using the IFE system, however the conventional safety
briefing by the flight attendants still exists on many flights.

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The Frequent-flyer program of Kingfisher Airlines is called the Äing Club in which members
earn Äing Miles every time they fly with Kingfisher or its partner airlines, hotels, car rental,
finance and lifestyle businesses. There are four levels in the scheme: Red, Silver,Gold and
Platinum levels. Members can redeem points for over a number of schemes. Platinum, Gold and
Silver members enjoy access to the Äingfisher Lounge, priority check-in, excess baggage
allowance, bonus miles, and 3 Kingfisher First upgrade vouchers for Gold membership. Platinum
members get 5 upgrade vouchers.
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Kingfisher Lounges are offered to Äingfisher First passengers, along with Äing Club Silver and
Äing Club Gold members. Lounges are located in:

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SEGMENTATION ʹ TARGETING ʹ POSITIONING

BY: JORGE A. RESTREPO

The strategic marketing planning process flows

from a mission and vision statement to the selection of

target markets, and the formulation of specific marketing

mix and positioning objective for each product or service

the organization will offer. Leading authors like Kotler


present the organization as a value creation and delivery

sequence. In its first phase, choosing the value, the

strategist "proceeds to segment the market, select the

appropriate market target, and develop the offer's value

positioning. The formula - segmentation, targeting,

positioning (STP) - is the essence of strategic

marketing." (Kotler, 1994, p. 93).

Market segmentation is an adaptive strategy. It

consists of the partition of the market with the purpose of selecting one or more market

segments which the organization can target through the development of specific

marketing mixes that adapt to particular market needs. But market segmentation need not

be a purely adaptive strategy: The process of market segmentation can also consist of the

selection of those segments for which a firm might be particularly well suited to serve by

having competitive advantages relative to competitors in the segment, reducing the cost

of adaptation in order to gain a niche. This application of market segmentation serves the

purpose of developing competitive scope, which can have a "powerful effect on

competitive advantage because it shapes the configuration of the value chain." (Porter,

1985, p. 53).

According to Porter, the fact that segments differ widely in structural

attractiveness and their requirements for competitive advantage brings about two crucial

strategic questions: the determination of (a) where in an industry to compete and (b) in

which segments would focus strategies be sustainable by building barriers between

segments (Porter, 1985, p. 231).

Through market segmentation the firm can provide higher value to customers by

developing a market mix that addresses the specific needs and concerns of the selected

segment. Stated in economic terms, the firm creates monopolistic or oligopolistic market
conditions through the utilization of various curves of demand for a specific product

category (Ferstman, C., & Muller, E., 1993). This is an expanded application of the

microeconomic theory of price discrimination, where the firm seeks to realize the highest

price that each segment is willing to pay. In this case the theory's reliance on price is

Segmentation - Targeting - Positioning

Eureka Facts, the Smart Marketing Information. Page 8

broadened to include all 4 P's of the marketing mix (Wilkie, 1990, P. 98). This

application of microeconomic theory is particularly applicable to organizations active in

product categories that are cluttered with competition. It is also useful where sufficiently

large markets with distinct sets of value preferences are found, or when the organization

chooses to proactively build a stronghold by creating value preferences among a set of

consumers.

Segmentation as a process consists of segment identification, segment selection

and the creation of marketing mixes for target segments. The outcome of the

segmentation process should yield "true market segments" which meet three criteria: (a)

Group identity: true segments must be groupings that are homogeneous within segments

and heterogeneous across groups. (b) Systematic behaviors: a true segment must meet the

practical requirement of reacting similarly to a particular marketing mix. (c) The third

criteria refers to efficiency potential in terms of feasibility and cost of reaching a segment

(Wilkie, 1990). In addition, Gunter (1992) recommends considering the stability of

market segments over time and different market conditions.

Stage one - segment identification

The first stage of market analysis consists of segment identification. The analyst

has the option of segmenting the market using different sets of criteria including personal

characteristics of the consumer, benefits sought, and behavioral measures of the

consumer (Wilkie, 1990, p. 101). Within these categories the options available are truly
overwhelming and in many cases different segmentation approaches will steer strategy

along very different paths. Utilizing multiple segmentation approaches is recommended

by several authors (Porter, 1985; Gunter, 1992).

There is no recipe for choosing which variables to utilize when segmenting. The

identification of segmentation variables is among the most creative parts of the

segmentation process, because it involves conceiving dimensions along which products

and buyers differ, that carry important structural or value chain implications.

Furthermore, "the greatest opportunity for creating competitive advantage often comes

from new ways of segmenting, because a firm can meet buyer needs better than

competitors or improve its relative cost position" (Porter, 1985, p. 247).

Segmentation variables

Wilkie (1990) divides segmentation variables into three categories: personal

characteristics, benefits sought, and behavioral measures. The following section will

explain each set of variables in broad terms.

Personal characteristics

Segmentation - Targeting - Positioning

Eureka Facts, the Smart Marketing Information. Page 8

The set of personal characteristics includes all the variables that can be used to

describe or identify particular individuals. They include a vast array of personal

attributes, media exposure, demographic, geographic, and geodemographic, lifestyles

(activities, interests, opinions), and psychographics.

Psychodemographics and geodemographics have become popular segmentation

tools. However, despite the wealth of literature recently published it is important to keep

in mind that they are tools available to the researcher and not the only segmentation

variable groups to consider. The power in serving segmentation stems from their reduced

cost and actionability. Because they originated together, the two concepts have been
confused for one another but they are now recognized as distinct consumer typology sets

(Piirto-Heath, R. 1995).

Geodemographics.

Geodemographic models are conceptually based on the assumptions that (1)

neighborhoods contain homogeneous groups of individuals, that (2) such groups can be

clustered and are share similarities across geographies. The most commonly known

geodemographic classification systems in the US are Claritas' PRIZM, CACI's ACORN,

and Donnelley's ClusterPLUS.

The clusters are identified using census data and geographic information. Current

systems develop a surrogate measure for socioeconomic ranking utilizing a mixture of

educational attainment, income, home value, occupation and age; this information is laid

over satellite-generated data measuring urban, suburban, rural settings. The analysis is

enriched using other variables and survey data to extract the different clusters.

Households sharing similar education, income, life stage, dwelling type and type of

community do tend to have similar purchasing habits. This makes geodemographic

clusters highly actionable and reachable. The cluster is defined in a well-rounded

"picture" that includes research on media habits, purchasing patterns for many categories,

and the possibility to match individual promotional response to the geodemographic

classification. Segmenting consumers by geodemographic clusters enhances potential for

directly identifying and reaching prospects. The geodemographic approach permits

prospect identification down to the census block level so the implementation of

distribution, direct marketing, and other strategies are simplified. One of the

disadvantages of this system is that it is a classification of heads of household. To this

date there has been no profiling of other household members. The other major

disadvantage of geodemographic approaches is precisely the reason why psychographics

has become so popular: it describes segments by many of their characteristics but not by
their attitudes, values, beliefs or personality orientations.

Psychographics

Segmentation - Targeting - Positioning

Eureka Facts, the Smart Marketing Information. Page 8

Psychographics classify consumers by their values and lifestyles. Though

psychographic classifications are now abundant, among the best known are VALS 2 and

LOV. Psychographic studies range from the general profiling of lifestyles to the product

specific segmentation based on psychographic elements. Psychographic variables are

classified into three categories: product attributes, lifestyle attributes, and psychological

attributes.

The study of lifestyles is largely explained in terms of the AIO's: attitudes,

interests, and opinions. These are a reflection of a mix of economic, cultural and social

values. Values in turn are largely shaped by early lifetime experiences. Among the

strongest forces forming values are the triad of institutions (family, religion, and school),

media, and government (Gunter 1992).

The use of psychographics is important not only as a consideration during the

initial segmentation but as an important element for the segment evaluation and

marketing mix formulation phases of the STP process. "Although typically used more in

advanced analysis than initial segmentation studies, psychographics can be very useful in

identifying and explaining the behavior of markets. For example, although the market for

cars can be defined in geodemographic terms, psychographically a researcher may be

able to identify many reasons or motives underlying car buying behavior which could

help to design a more effective promotional and marketing strategy" (Gunter, B. &

Furnham, A., 1992, p. 64).

Benefits sought

The second group of variables used to segment consumers includes all those
related with the benefits and needs they seek to fulfill and the nature of their demand for

different products and services. It also encompasses value preferences such as quality,

price, style, image, etc.

Behavioral Measures

The third category of segmentation variables is behavioral measures. It includes

product usage and actual behavior such as buying patterns, usage data, channel,

ownership, quantities, brand loyalty, attitudes, etc.

Wilkie (1990) explains that variables in the first category are unchangeable by the

marketer, so the segmentation by this level of variables should yield adaptive strategies

that recognize the reality of consumer characteristics and find ways to use them to the

firm's advantage. The second level is relatively stable over time since individuals are not

likely to change their values and beliefs as Ries & Trout (1981, 1990, 1996) have

Segmentation - Targeting - Positioning

Eureka Facts, the Smart Marketing Information. Page 8

categorically stated. At the third level, change is the norm and so this is where the

marketer can influence the target audience (Wilkie, 1990).

Segmentation techniques

Once segmentation variables have been pre-selected and the data is collected, it is

necessary to choose the statistical process by which the segments will be identified. The

segmentation technique to be used depends largely on the type of data available (metric

or non metric variables), and the kinds of dependence observed - that is, dependence or

interdependence (Cooper D. & Emory, W., 1995, p. 521). Among the most common

segmentation techniques used are factor analysis, cluster analysis, discriminant analysis,

and multiple regression. Among newer and increasingly utilized techniques include chisquared

automatic detection (CHAID), LOGIT, and Log Linear Modeling (Magidson, J.,

1990).
Traditionally cluster analysis has been utilized but its use has declined because of

increased criticism of its empirical nature (Mitchell, V. W., 1994) and the emergence of

new methods. Newer systems and algorithms such as CHAID permit the use of chisquared

analysis which does not force ordinal and nominal data into continuous variables,

and permits not only the identification of segments but also their ranking by profitability

or some other measure of desirability (Magidson, J. 1993). The segmentation process is

complex and thus prone to error. Data integrity tests and validity assessments should be

included along the process as well as in the final outcome review.

Once clusters have been identified they are described using other variables not

included in forming the clusters. This descriptive process is intended to yield a full

bodied description of the market segments, which will be useful in the evaluation process

but most importantly in the marketing mix creation stage. Multiple discriminant analysis

is often used for this purpose (Gunter, B., & Furnham, A., 1992).

Stage two - segment evaluation

The second stage consists of evaluating the segments. The first element that needs

to be defined is the criteria by which the segments will be evaluated. In a nonprofit

setting segment desirability is not necessarily determined by profitability and market

share objectives. If a measure of profitability or desirability can be quantified, the

markets can be ranked using tree analysis or gains charts.

Approaches vary with some suggesting a quantitative evaluation of the resulting

segments (Sarabia, 1996), while others highlight other strategies for evaluation. A way to

approach market segment evaluation is through the examination of a market structure by

constructing a spatial model where similarities and dissimilarities are mapped. This

Segmentation - Targeting - Positioning

Eureka Facts, the Smart Marketing Information. Page 8

representation of the market is then used in conjunction with demand estimating and
forecasting models to determine possible positioning alternatives for a product (Johnson,

R., 1995). This analysis can be enhanced by using a chi-squared trees analysis and

correspondence analysis to generate compositional perceptual maps, which are "vital to

understanding consumer brand positioning" (Bendixen, M., 1995).

Other elements should also be considered such as simplicity and potential

adaptability of the segmentation structure across national boundaries. Kotler (1990)

suggests considering three key factors: segment size and growth, segment structural

attractiveness, and company objectives and resources. Porter (1985) proposes a similar

approach but also recommends studying the firm's resources and skills as reflected in the

value chain, and their suitability to target market alternatives. Aaker (1995) bases his

selection criteria on the SWOT analysis produced during the strategic marketing planning

process. Berrigan & Finkbeiner (1992) propose a somewhat similar process that includes

market structure analysis, market opportunity analysis, product portfolio analysis,

resource capabilities analysis and competitive analysis.

Stage three - targeting through marketing mix

The third stage of the market segmentation process is the creation of a specific

market mix to fulfill the needs, as well as market conditions of each specific target

segment (Wilkie, 1990; Gunter & Furnham, 1992; Kotler, 1994). Although many authors

limit the market segmentation process to market identification rather on the key elements

of the entire process, most companies fail to give due importance to other stages in

market segmentation such as product positioning and mix development (Sarabia, 1996).

Once the firm has chosen a market segment it must choose a generic competitive

strategy. At this point it is also necessary to review the selected strategy across segments

and explore general strategic approaches. In some cases it might become apparent that a

counter-segmentation strategy is applicable. In other cases, the development of distinct

mixes for each segment uncovers inconsistencies or lack of resources at the corporate
level and so it is necessary to revert to the segment evaluation stage.

According to Kotler (1994, p. 293) the only sustainable generic strategy in a

segmented market is differentiation. He explains that the only other generic competitive

strategy alternative (low cost) is not sustainable in a segmented market. In addition, a

strategy successful at differentiating must generate customer value, provide perceived

value, and be difficult to copy.

At this point in the process the company selects those ways in which it will

distinguish itself from its competitors. In most cases the differentiation involves multiple

elements. In fact, "most successful differentiation strategies involve the total

Segmentation - Targeting - Positioning

Eureka Facts, the Smart Marketing Information. Page 8

organization, its structure, systems, people, and culture." (Aaker, 1996). One way to

differentiate is through brand equity building. A strategy based on brand is likely to be

sustainable because it creates competitive barriers. A brand strategy permits the strategist

to work with complex concepts and not limit the differentiation strategy to just a few

competitive differences. This approach is consistent and reinforces the STP approach. A

successful brand strategy builds barriers to protect the selected position by creating

associations of the positioning variables with the brand name in the prospect's mind.

Positioning

Gunter and Furnham (1992) prescribe that after selecting target markets the

strategist should develop positioning objectives to then develop them into a detailed

marketing mix. However, Aaker (1996) recommends developing the positioning

objective only after the brand identity and value proposition have been developed. In

exploring the latter, it is useful to understand Aaker's definition of positioning is "the part

of the brand identity and value proposition that is to be actively communicated to the
target audience and that demonstrates an advantage over competing brands." Kotler

(1994) refers to it as the unique selling proposition. Explained in other words, the

positioning statement is the point where the bundle of attributes join to form one concept

which aims at capturing the essence of that which the target audience seeks in the product

category.

The benefit of following Aaker's recommendation lies in the expanded range of

position alternatives. Three places are suggested in looking for brand position elements:

the core identity (central, timeless essence of a brand), points of leverage within the

identity structure (an attribute, sub-brand, special feature, or service), and the value

proposition (benefits that drive relationships with target audiences).

According to Brooksbank (1994), the positioning strategy should include three

components: customer targets, which are the product of the segmentation study;

competitor targets, which are a product of the analysis of external environment; and

competitive advantage, which is also a product of the environmental analysis.

In developing the positioning objective, Ries (1996) is concise and clear:

"positioning is not what you do to the product, but what you do to the mind."

Understanding how the mind receives, stores or rejects information will improve the

chances of making the positioning objective coincide with actual positioning in the target

audience. Although Ries & Trout have written several works relating to positioning,

perhaps the key elements they require of a positioning strategy are: simplicity, a search

for the obvious, placing the product at the heart of the category, and working to line up

the strategy with the market's existing perceptions, attitudes, and beliefs.

Segmentation - Targeting - Positioning

Eureka Facts, the Smart Marketing Information. Page 8

Ries & Trout (1990) suggest the position is the mental angle used to enter the

prospect's mind and the role of the entire strategy is to support that tactic. It appears that
the process as outlined by Porter, Aaker, Kotler, Ries and Trout for STP is one in which

the different elements interact: strategy points to the markets, research unveils position

alternatives and the position tactic requires a full strategy to support it.

The literature reviewed here is by no means comprehensive. There are far too

many studies on the subject matter for that, but this exploration should provide an

understanding of the theoretical framework within which the STP process can be

conducted.

Practical Approaches

Undertaking a Segmentation, Targeting and Positioning process is probably one

of the most important processes management should undertake both at the onset of a new

offer creation as well as part of a periodic revision of the portfolio of offers and strategies

used by the organization. The process can be one that tests one¶s ability to think

creatively and so that is one important reason why frequently companies seek the

assistance of an outside researcher to help them through the process. Working in tandem,

marketing analysts/researchers and business executives can achieve effective STP

strategies.

Jorge Restrepo is the principal market researcher at Eureka Facts. He has written about

market segmentation, segmentation targeting and positioning, and has completed and

implemented segmentation and targeting studies at multiple organizations.

Small Car

The small car is one of the largest car segments in India. It comprises of nearly two-third of the
sales in the country. This car segment has grown by 15% CAGR over last 5 yrs. The new breed
of young executives with fatter pay- checks has led to more purchase power. By the year 2010,
India shall witness a boom in the small car segment with major car makers making their foray in
India and India will have small cars from General Motors, VW, Fiat, Ford, Toyota, Honda, etc.

Segmentation
1. Geographic
a.Region: The major regions for small car market in India are north, south, and west. The most
auspicious
moths in the south, when buyers, laterally lap up cars from the showrooms, often turn out to be
the lean season in the north or west. So marketers need to identify when to market a product
according to the region in which the consumer lies.

b.Rural/Urban:Since more than 60% of the total population is living in interiors, it becomes all
the more

important to cater to this segment. However, so far, the marketers have laid more focus on
Urban/semi urban market and their products are primarily catering to the needs of the urban
segment. But with the recent market hits, the companies are trying to pay more attention the rural
market segment to gain profits.

Ex: Maruti Suzuki India said that by the end of 2009 calendar year as much as 8 per cent of sales
will
come from rural areas, up from 3.8 per cent last year.
Ex: Tata Magic which is priced @ 2.6lacs is primarily targeted to the rural India.
2. Demographic
a.Age & life cycle stage: Student, Young Married, Single working.

The average age profile of a car buyer is 25-46 years. Although the percentage of people buying
cars between 31 and 40 years of age has remained stagnant at 31 per cent (1999-03), there has
been a 9 percentage point increase in the number of car buyers in the 25-30 age groups. The
number of older people (51 to 60 plus) buying cars has gone down.

b.Family Size: Average Indian household size is 5 people. Hence Small cars are the most
obvious and
affordable choice available for the Indian middle class.
c.Income: Higher income households tend to be less price-sensitive, placing a higher value on
buying

higher-quality merchandise. Because of the growth in dual-income households, there has been a
dramatic growth in the proportion of total spending in the economy coming from such
households, implying that the market for high-end products and services should increase
substantially. Thanks to the easy availability of cheap financing options, there has been an
increase in the number of younger people buying cars in India during 1999-2003EMI: a factor
affecting the most of the buyers. 3 out of the 4 cars sold in the country are funded by a loan.






 

      
   
          

  

  
  
 
   
       

 
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ii.Technology: With all sort of products available in the small cars market, technology can act as

a differentiator for consumer. New technologies such as MPFI (multi point fuel injection), turbo
charging, electronic traction control, anti locking braking systems, and catalytical convertors.

iii.Fuel Economy: People do look for better fuel economy in terms of mileage given by the car.
Preferred Fuel: With the rise in petrol prices, people have been looking for alternatives such
as diesel, CNG, LPG. Many car buyers in India prefer the diesel variant whatever may be the
choice of car, because of the favourable cost differential diesel.
iv.Low operational cost: For some of the users, operational cost is a major factor in deciding
the buying decision. Operational cost includes Maintenance cost, insurance cost, spare parts,
cost of service.
v.Space and comfort: Buyer does look for spacious and comfortable ride. Various factors in
deciding comfortable ride are leg room, head room, driving position, adjustable steering.
vi.Safety: the most important factor for family buyers is the safety feature of a car. A car must
follow safety norms, various safety features which people look in car are ABS, airbags.
vii.Styling: To certain buyers, functionality was not everything, looks were also important. They
wanted styling, and contemporary looks.
d.User Status: The kind of buyer can be classified into non-buyer, first time buyers, and repeat
buyers. The

major of the buyers in the small car are a first time buyer, that¶s why this market is often referred
as entry level car market. While going for car replacement, 50 percent of small car owners in
India are again going for small cars and are reluctant to experiment with luxury cars.

e.Usage Rate: On the basis of the frequency of travel, people decide on the car to buy. In case a
person

needs a family car only for family outing, they may look for a one time investment in a spacious
car. On the other hand, if a person has huge amount of daily travel, he would prefer a good
mileage car with less operational cost as well.

4.Psychographic Segmentation
a.Social Class ± Social class plays a major role in segmentation for the automobile industry.
With more
than 40% of the population of Indian lying in the middle class bracket, it becomes all the more
important segment for the marketers to consider. Working class and upper lowers constitute the
other prime target in the small car manufacturers.

b.Life-style ± life style is an important psychographic segmentation composed of a combination


of factors
such as activities, interest and opinions. Ex: As part of its rebranding exercise, Fiat India is
rolling out a
number of products to cater to the lifestyle segment in the auto market.(economic times)
c.Personality ± The customers are further segmented on their personality traits like sports
oriented person,
easy going. People are also segmented on their value system.

The awareness about the new technologies, latest trends in the car market is a direct attribute of
the level of education of the consumer. This is evident from the fact that 2/3rd of the car buyer
are graduate or above.

5. Behavioural Segmentation
a.Decision Roles: When it comes to car, where huge investment is involved, people generally
tend to take
reference from other users. They go for test rides, get it checked from some experienced people
who are
much more comfortable about cars.
b.Occasions: In India, people do buy cars in the festival season, and during the marriage seasons.
c.Benefits: Consumer looks for the following benefits from a car.
i.Power: People do look for power from power. According to their need they look for cars in
their respective power basket (i.e. 600cc ± 1300cc). A higher power is related to give higher
speed, acceleration by the consumers.
ii.Technology: With all sort of products available in the small cars market, technology can act as

a differentiator for consumer. New technologies such as MPFI (multi point fuel injection), turbo
charging, electronic traction control, anti locking braking systems, and catalytical convertors.

iii.Fuel Economy: People do look for better fuel economy in terms of mileage given by the car.
Preferred Fuel: With the rise in petrol prices, people have been looking for alternatives such
as diesel, CNG, LPG. Many car buyers in India prefer the diesel variant whatever may be the
choice of car, because of the favourable cost differential diesel.

iv.Low operational cost: For some of the users, operational cost is a major factor in deciding
the buying decision. Operational cost includes Maintenance cost, insurance cost, spare parts,
cost of service.
v.Space and comfort: Buyer does look for spacious and comfortable ride. Various factors in
deciding comfortable ride are leg room, head room, driving position, adjustable steering.
vi.Safety: the most important factor for family buyers is the safety feature of a car. A car must
follow safety norms, various safety features which people look in car are ABS, airbags.
vii.Styling: To certain buyers, functionality was not everything, looks were also important. They
wanted styling, and contemporary looks.
d.User Status: The kind of buyer can be classified into non-buyer, first time buyers, and repeat
buyers. The

major of the buyers in the small car are a first time buyer, that¶s why this market is often referred
as entry level car market. While going for car replacement, 50 percent of small car owners in
India are again going for small cars and are reluctant to experiment with luxury cars.

e.Usage Rate: On the basis of the frequency of travel, people decide on the car to buy. In case a
person

needs a family car only for family outing, they may look for a one time investment in a spacious
car. On the other hand, if a person has huge amount of daily travel, he would prefer a good
mileage car with less operational cost as well.

6.Psychographic Segmentation
a.Social Class ± Social class plays a major role in segmentation for the automobile industry.
With more

than 40% of the population of Indian lying in the middle class bracket, it becomes all the more
important segment for the marketers to consider. Working class and upper lowers constitute the
other prime target in the small car manufacturers.

b.Life-style ± life style is an important psychographic segmentation composed of a combination


of factors
such as activities, interest and opinions. Ex: As part of its rebranding exercise, Fiat India is
rolling out a
number of products to cater to the lifestyle segment in the auto market.(economic times)
c.Personality ± The customers are further segmented on their personality traits like sports
oriented person,
easy going. People are also segmented on their value system.
Segment Targeting
Single Segment concentration: In this type of segmentation

targeting, the company identifies a specific segment and fully concentrate its marketing energies
to reap the maximum from the segment. A typical example in the Indian small car market is -
Reva, an electric car. The car manufacturers have identified electric car user target segment and
works on updating the same model with the market demand.

Petrol
Cars
Electric
Cars
Diesel
/CNG

/ LPG
Maruti
Reva
Hyundai

Selective Specialization: With the growing market and tougher

competition in the small car industry, there is a need for the marketers to cater to the needs to
different market segments. Here the marketer approaches more than 1 market segment, and
designs its strategies accordingly. For example, Maruti which primarily targeted the middle men
through Maruti 800 and Maruti Alto have now moved to new segment which comprises of youth
and the member of the upper middle class by launching premium range of hatchbacks like Swift
and Ritz.

Dual
Fuel
Price
sensitivity

Style

WagonR

Alto

Swift

Deep Segmentation:

The purpose of deep segmentation is to create a deep differentiation among the products in the
market. There are distinct group of car buyers with widely varying and clearly distinguishable
needs. Hence marketers to target these kinds of buyers created sub-segments. They enlarged the
number of segments in three ways:


They discovered new segments: Whenever marketers discovered a new segment and decided to

incorporate it into their target markets, they had to necessarily bring in a new offer.
Ex: When they hit upon the lifestyle segment, they had to, for those specific buyers, make
available
lifestyle oriented vehicles.
‡
They propped up sub-segments within a given segment: There were sub segments that preferred
different versions of the same vehicle. The difference between the two versions was substantial.
Also
almost all the players had brought in many versions/models in each of their offers.
‡
They located very small niches with special requirements and served them-even though they
were not
sizeable.

Downside of Deep segmentation:


1) Cannibalisation among one¶s own offers
2)Price slots in a narrow range blur distinction between segments/offers
3)Lowering of EMI accentuates the blurring.