POST GRADUATON DIPLOMA IN MANAGEMENT

Marketing Principles
A project report on
“STP Analysis of Five Companies”

SUBMITTED BY:-
NAME:- Rohan Patel
ROLL NO:- PGDM 2021-23 (033)
‘ALPHA’

UNDER THE GUIDANCE :-

Prof. Mazz Saiyed
 WHAT IS “STP” IN MARKETING ?

Segmentation targeting positioning marketing is a core concept in modern-day

marketing. Without it, marketing campaigns would be generic, have little to no
personalization, and overall would not be able to convert at a level most
businesses would deem effective.STP in marketing is acronym for
Segmentation, Targeting, Positioning- a three step model that examines the
product or services as well as the way you communicate their benefits to
specific customer goals.

In a nutshell, the STP marketing model means you segment your market, target
select customer segments with marketing campaigns tailored to their
preferences, and adjust your positioning according to their desires and
expectations.
FIVE COMPANIES FOR “STP” ANALYSIS

IKEA

NIKE

GILLETTE

MERCEDES
BENZ

H&M
IKEA, classy yet moderate furniture supplier, is today one of the world's best
retailers. Even after Mr. Kamprad surrendered his investment in everyday
activities at IKEA, organization has accepted his contemplations and qualities.
Kamprad, pioneer of level pack furniture (Ready-to-collect), had customary
working class beginning which moved his regard for cash, least wastage,
inventive and less expensive arrangements. Later this was soaked up into IKEA
workers and it became Ikea culture.
Item Portfolio:
IKEA offers everything which you would have to outfit your home. It has
everything from bed-room, washroom to lounge goods, plants, racks and so
forth & this is accessible in various styles. It likewise has kids segment which
incorporates everything from room stylistic layout, toys, silverware, security
and so forth Organization gladly specifies that every one of the items follow EU
standards and they are protected to utilize. It has around 9500 items right now
recorded with it.
STP Analysis:-
Segmentation:
Based Geographies:
It separates clients dependent on the districts like US, Europe, Latin America,
Asia and so forth Sizes of homes, selections of individuals vary across the
nations. Custom-made substance for each market is essential.
Based on Income:
Individuals from various pay bunches have differed decisions and their
inclination to purchase and how routinely they would purchase likewise changes
as needs be.
Based on Culture:
Individuals with various societies have particular ways of managing money.
Indeed, even the selections of items just as materials change with this.
Based on Lifestyle:
Metropolitan, semi-metropolitan and provincial ways of life are essentially
unique. Sizes of their homes and outfitting styles vary too. Likewise, material
and shading decisions fluctuate in like manner.
Targeting:-
The primary objective of IKEA is "Age Y" or metropolitan youthful optimistic
individuals. Individuals who couldn't imagine anything better than to enhance
their homes with classy yet moderate furnishings. This age would not utilize
same furniture for quite a long time. When they reach to various pay level or
according to drift they would garbage the old furnishings and search for new.
They furnish these individuals with sleek, exceptional and similarly less
expensive alternatives. Guardians having children between age bunch 0-3, 3-9
and 9-12 are focused on with various alternatives. They are focusing on bigger
working class market with moderate and great quality items. US clients need
large beds and wardrobes though Chinese lofts are little so they need more
modest sizes. In this way, plans were changed as needs be.
In arising nations metropolitan individuals are focused on by IKEA.
Additionally in China, individuals were not really sharp with regards to
collecting own furnishings. Individuals in India dislike it too. In this way, they
would target individuals youthful and metropolitan populace with their items.
Positioning:-
In U.S. what's more, European nations Ikea situated itself as a brand which
deals furniture at costs so low that more number of individuals can manage the
cost of it. A brand giving great quality and smart items at low costs is the
picture in brains of individuals. Ikea costs were above discounters like Aldi
yet less thanWest Elm and Bed, Bath and Beyond. This cost assisted them
with situating themselves as a brand for wide working class.
However, in arising nations like China this situating confounded purchasers
before all else, as neighborhood makers were fabricating items at lower costs,
likewise they could duplicate the plan at less expensive expenses. Thus, in such
nations it situated itself as an optimistic brand giving western styles. However,
it kept the costs low in this manner adhering to its central goal. A similar
procedure would be continued in India.
The IKEA concept is based on their market positioning statement “Your partner
in better living. We do our part, you do yours. Together we save money”.
Nike Inc. was founded in 1962 by Bill Bowerman and Phil Knight as a
partnership under the name, cordon bleu Sports.. alive for over 40 years,
today, Nike is that the biggest seller of apparel, athletic footwear, and
equipment within the world.
NIKE, Inc. is the world’s leading innovator in athletic footwear, apparel,
equipment and accessories.Their mission is sort of simple:

“TO BRING INSPIRATION AND INNOVATION TO EVERY ATHLETE*

within the WORLD.

Segmentation:-

Nike falls under niche marketing. They have a barely characterized client bunch
looking for a particular blend of advantages. Their items are fundamentally
focused on all kinds of people searching for activewear. Nike guarantees their
clients solace, dependability, style and execution.

Nike sports shoes are estimated high. However, clients will go through the
additional cash for the quality and administration they get.Nike pays top
competitors in various games to utilize their items and advance/promote their
innovation and plan. Nike is the authority unit backer for the Indian cricket crew
for a long time, from 2006 till end of 2010. Nike beat Adidas and Puma by
offering most elevated.

Nike also sponsors a number of leading clubs in world football, such as:-. Nike
sponsors several of the world’s top golf players, including Tiger Woods, Trevor
Immelman and Paul Casey.
Targeting:-

Broadly, NIKE has products for people from all age-groups: right from
newborns & kids to teenagers, adults and even the old. For example, any new
revolutionary designed footwear is usually released for all age groups.
However, its core focus is on people within the age bracket of 18-35 years old.
By opening women’s-only stores in California, Shanghai, etc., Nike has started
expanding its presence within the ladies apparel market thanks to untapped
potential.

Positioning:-
he Positioning statement of Nike is “For serious athletes, Nike gives confidence
that gives the right shoe for each sport”.

Nike positions itself with, “Just do it”.They still find new and amazing ways to
mentioned it repetitively without boring their audience. Their position gives
them permission to precise something that’s powerful. Just do it belongs to the
customer—people love that.
Mercedes Benz is a multinational division of the German Automobile
manufacturer Daimler AG. It manufactures luxury automobiles, Coaches, trucks
and buses. The headquarters of Mercedes Benz is in Stuttgart, Baden
Wurttemberg, Germany. On 23rd June in 1902, German automaker Daimler-
Motoren-Gesellschaft (DMG) first registered “Mercedes” as a brand name.
Mercedes Benz has been around for more than a century and it has seen both
smooth and rough times for automobile Industry. Gottlieb Daimler was
responsible for making the first recognized internal combustion vehicle and was
the first to incorporate a practical transmission system.

Segmentation-

 Mercedes Benz automobiles lie in the luxury automobile segment

including sedans and SUVs
 Mercedes Benz automobiles are used majorly by consumers living
in metro cities
Targeting-

 It has a very niche market targeting high class and rich people
 It seems to be targeted mainly towards Middle aged and high
income groups
Positioning-

 It is positioned in such a way that it creates a strong connection

with the customer which leads to deeper level of brand engagement
 This plays pivotal role in company charging a premium for their
product because consumer purchase decision also has a price
dimension in it.

Criticism:- In my opinion being a multinational company of automobiles it feels

like they are lagging behind many of the terms in many particular segments of
the cars they provide in different market. For example the car sold in india are
already backed by high price and still compromise in many things which is not
at all acceptable even after paying huge amount. Many people ignores it but
that’s something which has to bring into consideration by the company.
Positioning is been seen varying over here by such a big brand.
Gillette as a brand is understood for men’s safety razors. Its name bears the
name of its previous parent company – The Gillette Company. It was later
merged with P&G and hence now falls under the umbrella of P&G Company.

Segmentation:-
Gillette features a varied range of products in India. Its Mach 3 is targeted at
high income group of individuals while its TRAC II is targeted at low income
group. Hence within the razor category, it spans the whole male population.
Other products like deodorants, shaving cream/ gels are targeted at medium to
high income group. Also after the success of Gillette Mach 3 Turbo, it decided
to launch an identical product called Venus Power for ladies , thus creating
gender segmentation.

Targeting:-
Gillette’s market segment has been proved to be extremely profitable. The razor
market has highest market share in India and America. The segment is
additionally very attractive because very less competition from any such strong
players within the market. Substitutes like shaving machines also are not a
precise substitutes for the merchandise .

Positioning:-
Gillette products are positioned as everyday use and available for all products.
The huge variety and range of razors position them for people from all classes.
Other products like batteries also are positioned an equivalent way.
But some products like foams and shaving gels, deodorants are positioned as
premium products.
Criticism:- Gillette has no such flaws and has always been very much particular
to every product they sell into the market and being a multinational company
the STP of the company stands at a right level according to me. When we look
into the past of the company the company had already came across many
different campaign that had brought huge profit to the company.
H&M offers customers inspiring shopping experiences in 61 markets,  also as
through a growing shop online. the shop that opened in Västerås in Sweden
in 1947 has become a worldwide fashion company. Expansion is long-term
while maintaining quality, sustainability and high profitability.The H&M
Group offers fashion from the H&M, COS, Monki, Weekday, Cheap
Monday and & Other Stories brands, along side home interiors at H&M
Home.

H&M in india2015:-
Hennes & Mauritz clocked quite Rs 1.75 crore in sales on the opening day of
its first store in India, almost double what its largest rival Zara sold on its
inaugural day five years ago at an equivalent location, Select CityWalk mall
in New Delhi .
This translates into a mean billing of about Rs 27,000 every minute during
the 11 hours the shop was open, or the equivalent of 5,000 pairs of jeans and
10,000 tops sold. the shop opened its doors to 2,500 eager fans who had
queued up outside overnight to be among the primary to urge their hands on
H&M’s merchandise.

Segmentation:-

Demographics and Psychographics segmentations are utilized for H&M to

reach all their clients. H&M is spread all through the world. This implies that
the organization targets numerous religions, culture and way of life. Thusly,
their advertising must be done any other way in various regions.

Segments by class: H&M methodology is offering high design at low costs,

regularly that specialize in working people, lower working labor and
understudies.

Segments by class/home: The most famous fragment is girls maturing

somewhere within the range of 15 and 30 years, either as yet living at home, in
understudy residences, or in their first house in quite while
Segments by age: The foremost famous fragment is girls maturing somewhere
within the range of 15 and 30 years usually referred to as age Y, goal-oriented
with high purchasing power.

Segments by day to day life: Typical school to graduate females life at home
single, on their lonesome in residences or in their first home, either single or as
a youthful couple without youngsters.

Influence: Cultural, social, individual and mental impacts bring about a way of
life and character. This gathering is checking out reasonable design and
normally patronize quite one store. They are in vogue customers whose
shopping as a social policy giving joy in their regular routines. They purchase
garments each season, go to pursue directions and are exceptionally modern.

Targeting:-

The choice of possible clients to whom a business wishes to sell items or

administrations. The target clients of H&M have an area with the gathering of
elegant and popular purchasers who consider shopping to be a movement give
enjoyment of their everyday existence, who must pursue the directions without
putting away huge load of cash. The target marketplace for H&M is meant for
more younger individuals. Despite the very fact that H&M offers apparel and
embellishments for all ages, their objective market is ladies. Ladies for the
foremost part shop more for them, yet additionally purchase every one of their
kids' clothing and regularly their spouses also. Since their center is to sell an
elegant item for a minimal expense they target wedded to single lady, moms and
girls. Many single young ladies who consistently need to keep steady over the
style are continually updating their storerooms with H&Ms new reasonable
things. The purchasers are not exceptionally brand steadfast; rather they shop at
various retailers in look for the ideal design pieces.

Positioning:-

H&M may be a retailer that’s looking to supply consumers with fashionable,

high-quality clothing at the simplest price possible. They provide “fast-fashion”
clothing, in other words from runway to racks in record time, and sell European
influenced clothing within the American market. Additionally, H&M carries
clothing during a sort of categories including women’s casual, men’s business,
children’s wear, footwear and accessories. The corporate is that the second
largest clothing retailer within the world, the most important in Europe and
actively engages in E-retailing. H&M is additionally economically, socially, and
environmentally sustainable
Criticism:- in my opinion H&M made a late entry in India the reason is already
many other brands have they roots in this country since long time. H&M is very
much particular to girls as compared to boys and had also bring a wide variety
after its establishment in India as we can see in advertisement. H&M mis way
back in competition and has to improve its positioning and also targeting out the
audience in more creative way to acquire its roots in India.