Q16 Market segmentation refers to dividing a market into several groups of

buyers on the basis of similar needs, characteristics or behaviors.

A new health drink is being launched in Punjab, the variables or strategies
involved in market segmentation are-
 Geographic Segmentation – This refers to dividing a market into
different geographical units like states, regions, countries, here, for the
health drink the geographic segmentation is the State of Punjab and the
various cities and districts in it.
 Demographic Segmentation – This refers to dividing the market into
segments based on variables like age, gender, income, occupation,
education, religion etc. For the company launching the New Health
Drink, the various demographic segments would be age or generation
(Focus more on the youth who are into working out and maintaining a
certain protein and healthy diet), Gender (the segments could be health
drinks for women, men or gender neutral), Income (Can have a wide
range of Drinks for various income groups).
 Psychographic Segmentation- Psychographic or lifestyle segmentation
targets customer hobbies and interests. This segmentation strategy
caters to the most niche markets, where attractiveness, quality, and
brand recognition are more important than price. The company
launching the New Health Drink, should segment its market in a way that
consumers with similar interests of having a healthy and fit lifestyle are
the target market.
 Behavioral Segmentation- This means the market is divided into
segments based on the consumers uses, knowledge, attitudes or
responses to a product.

Market Positioning refers to associating and developing a mental

position in the public consciousness about your brand and its products
and services. It means being able to occupy a clear, distinctive and
desirable place relative to the competing products in the minds of the
target consumers.
 Identifying possible value differences and competitive advantage- There
are already plenty health drinks in Punjab, the company will have to
 identify and state its unique selling proposition that helps it gain a
competitive advantage. The USP could be either the pricing of the drink
or the taste of the drink or more protein count in the drink.
 Choosing the right competitive advantage- The company should study
the market its entering and wisely choose the competitive advantage. It
should also look at various ways to promote its drink.
 Selecting an overall positioning strategy – The full positioning of a brand
(Value Proposition)
1) More for More – the company can provide the most upscale health
drink and charge a high price to cover its high cost.
2) More for the same – the company can provide the upscale health
drink for the same price as its competitors.
3) The same for less- The company can provide its regular health drinks
for a discounted price.
4) More for less- the winning value proposition. The company can offer
its best Health Drinks for a discounted or low price.