SHAMEEL.

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REG NO: - 210101618048
Executive PGDM JUNE/AUG
MM Assignment – Term II

STP Strategies:

STP Stands for Segmentation, Targeting & Positioning and this is the cornerstone concept of
marketing which combines three separate marketing approaches into one model. In practice STP
means creating market segmentation, Target the segments selected and to position adjust the
product or services accordingly. Further STP conclusion can lead to invoking marketing mix
implementation as these are interdependent

Segmentation of Customers

Customer and the customer’s value are the basis of customer segmentation and it’s important for
Priya kitchen Chimney Company (PKCC) to identify the customer who and why they need to buy
their products. Segmentation can be further divided into four broad categories

• Geography: The strategy for PKCC target should be across all regions in India and
they can thrive in Urban areas and semi-urban areas considering the need of
chimney and its allied products demand
• Demographic: To increase the market share or sales it’s better to target the working
class or home making middle-aged woman (for retail business) as they tend to spend
some considerable time than the other gender and the different age group of same
gender. From the commercial perspective the potential customer group should be
semi-urban restaurants
• Psychographic: Based on factors like lifestyle, hobbies, and activities it seems to be
viable option to target the Urban & Semi-urban areas and the couple with kid(s) at
least with the age of 10 & above as when the kids cook, they may not be careful or
expertise which can creates fumes or smokiness with the help of chimney products
the cleanliness of kitchen may not be in question
• Behavioural: Being in technology driven lifestyle it’s required to have some benefits
like chimneys with timer technology

➢ Targeting: when there is more than one segmentation, then it’s worth spending the time to
determine which is the most valuable and finding most profitable needs to be combination
of both methodical & intuitive too. It’s highly important to consider the available data points
and PKCC target customers are switchers who are not brand loyal to any brands so far and
try to make them loyal to PKCC chimney

o Size: As PKCC is targeting urban & semi-urban cities which is a larger segment with
more growth opportunity / potential it’s a better method
o Profitability: It’s very difficult to calculate the profitability. However, the same can
be largely predicted with the use of customer segmentation mentioned above i.e.,
urban, semi urban home and small & midsized restaurant in these cities can help
them to penetrate half of the market segmentation
o Reachability: How quick and how well the products can be commuted, installed and
service the customer and what is the acquisition cost in the targeted cities / areas
SHAMEEL.A
REG NO: - 210101618048
Executive PGDM JUNE/AUG
MM Assignment – Term II

are all some of the factors which help PKCC to arrive the conclusion in a powerful
manner
➢ Positioning: It’s very much important to connect with the people on a personal level to
understand their needs and position yourself apart from the competition. In short why
customers should purchase PKCC products than other competitors’ product.
o Identify the unique selling proposition by mentioning what PKCC can offer which
other product can’t
o Sketch the positioning map like how customers perceive our product whether is it
cheaper or technically advanced or easy to operate, quick after sale service etc.,
o Understanding the needs & wants of the customer, for eg, middle aged women may
need a technically advanced features like controlling chimney with mobile app, small
sized restaurant may need an easy to clean and 24/7 or multi cuisine restaurant may
need energy saving option etc., and how PKCC products can cater the needs of all
these segments of customer
o Promotional campaign like installing the PKCC chimney in a model house or door to
door marketing or referral bonus and seeking the possibility to tie up with the gated
community builder and install the chimney in their model house or interior
designers are some of the opportunities which can be exploited
o Simply conduct the survey about what exactly are the pain point they face or what
they expect out of a chimney and emphasize on what, why & how PKCC products
and services can take care of the need & wants of the customer
➢ Summary: STP is powerful tool. However, the segmenting the customer and targeting the
opportunity to increase the market share of PKCC requires a lot of data, insights &
interpretation of those data. Any strategy making is an iterative process and with these
options PKCC may seek a review from its CMO team and their approval to take the next
steps forward to roll it out.

➢ Marketing Mix strategies (PKCC): Marketing mix is nothing but the usage of the marketing
tool that combines number of features aid in selling the products and / or services in a solid
way. These marketing mixes are the tool to stimulate /change consumer behaviour. In
simple it’s positioning a product in the right place at the right price and at right time often
associated with 4Ps of marketing

• Product: The product has three stages i.e., Growth, Maturity and decline of sale
stage. It’s the most significant part for PKCC to reinvent their kitchen chimney to
stimulate high demand in the market once the sale reaches the declining phase. The
best strategy is to create the impact to the customer’s mind in a way that PKCC
chimney can offer much better product to their customer than their competitors
can. The product level is of 5 categories Core benefit, Basic product, expected
product, Augmented & potential product and as a part of this strategy it’s best
option for PKCC to move toward the final stage of product
SHAMEEL.A
REG NO: - 210101618048
Executive PGDM JUNE/AUG
MM Assignment – Term II

• Pricing: Price is the next important component of the marketing mix. Price of the
product directly defines the company’s profit and survival. A slight change in the
price can impact badly the sales and demand of PKCC product. So, it’s of paramount
importance to keep the following parameters while deciding the cost of the product

✓ Competitor’s price
✓ Target customer’s locations
✓ Discount
• Place: The third P on marketing mix is the place or placement. Here, we must
analyse how the product of PKCC needs to distribute whether could they have direct
distribution option in all the urban & semi urban cities or could they think of
distribution using third party network like place their product in some of the retail
outlet or looking for the franchising opportunity or they could think of hybrid option
combining all the said options
• Promotion: The most important Ps in the marketing mix this is straight related to
KPCC’s communication with their target customer. They need to think of advertising
it to local & national media, online platforms, and other social media so that the
targeted customer (Urban & Semi-urban) population can be reached & these
advertising can help their prospects to remember our brand. There needs to logical
way of selecting the mode of the advertisement. For eg it’s not so logical of giving
the product pamphlet in daily magazine rather advertisement on the play store or
the e-magazine would work

• People: As it’s a well-known fact that human components are the key contributor for
customer satisfaction & loyalty and the quality of services. The employees of the
KPCC are the prime face who transmit the value and benefit of the brand to the
customer and make sure the success of the company and customer satisfactions are
being taken care. Most importantly the employees who are in constant interaction
with the customers are the one who needs to be listened for feedbacks and areas of
improvement as they know the customer’s expectation and ground level details of
competitors

• Process: This marketing mix describes and analyses the process surrounding the
service or the processes related to how it needs to take to the customer. The
healthy process is something which creates a balance of avoidance of mistakes, cost
minimization and delighted customer

Physical Evidence: It’s the tangible elements & the place where the customer is in contact with the
product. There are so many factors which decide the ambience or the appealing elements in the
product or the appearance of the employee or the brand itself gets recorded in the customer’s head.
For Eg: In all these years the vacuum cleaner of Eureka Forbes got changed in its appearance or the
SHAMEEL.A
REG NO: - 210101618048
Executive PGDM JUNE/AUG
MM Assignment – Term II

shape, size. However, when we think of vacuum cleaner unanimously its Eureka Forbes. Similarly for
kitchen chimney it needs to be KPCC product. Like any process product development has own life
cycle i.e., (1) Idea Generation (2) Idea Screening (3) Concept Development (4) Marketing Strategy (5)
Business Analysis (6) Product Development (7) Market Testing (8) Commercialization

• Idea Generation: Ground-breaking ideas can happen at any time and this step talks
about, is the idea worth considering & these ideas can be generated by interacting
with Employees, C suite team, outsiders like suppliers, customers, Industry
consultant and even competitors.
• Idea Screening: It’s very significant to screen each idea generated and find whether
these ideas are in-line with the objective of increasing PKCC market share. Also,
company should drop the ideas which are not in-line with the organization goal at
the early stage. As the cost of the product development rises at each successive
step.
• Concept Development: This step we need to find a concept which customer /
consumer is willing to try. Who will use this product like middle aged family women,
Sr. Citizen, Home maker, Bachelor, or Bachelorette. What is the primary benefit of
Chimney and Will the exhaust fan in kitchen would be of our competitor and this
concept / beta version of the products needs to be tested by target customer
(sample group)
• Marketing Strategy: These steps deal with the question of can we find the cost-
effective marketing strategy. In the first stage firm needs to decide the target
market size
• Product Development: In this stage target customer requirements are turned into
working prototype like chimney operated through mobile app, noise less chimney
with the timer and once the prototype is created then it needs to undergo alpha
(Internal employees will test) and beta testing (sample population of / the potential
customers)

Commercialization It’s not un-usual that too often company spends too much on
developing a brand itself and spent very little on advertising / promotion. This stage
simply summarise how the overall fund requirement is handled, timing perspective
whether the firm is going to enter as first entry than the competitors, parallel entry
ie., along with their competitors or late entry like after the competitor
SHAMEEL.A
REG NO: - 210101618048
Executive PGDM JUNE/AUG
MM Assignment – Term II

➢ Distribution Channel Strategy: Distribution is the method to take the products, goods, or
services to customers. No. of. new & repetitive customer is completely depending upon the
items and how swiftly the goods can be ordered, installed & serviced. In KPCC as the target
audience are in semi-urban & urban areas we may need to consider online and Retail store
accordingly the product needs to be made available with wholesaler in each of the
demographics

Distribution Channel: There are four distribution channels through which PKCC can reach to
their target audience in a swift and effective way to cater the need of customer in a different
region. As PKCC focus on better penetration it’s a viable option to explore all Wholesale,
Retail, Distributors, direct channel, tie-up with ecommerce website

• Wholesale: In this channel the wholesaler buys the goods from the manufacturer
directly and sells it to the retailer which could be cost effective for the firm as
wholesalers places the orders in bulk quantity and wholesalers knows the best retail
outlet which has the potential to sell more items

• Retailers: Retailers are the prime face of the customers and considering the nature
of the retail outlet business they are the one who ends up in buying the goods much
before the customer buys. And considering the digital marketing era, bug retail
outlets like Reliance, Tata have their own website which advertises all the brands
available with them for sales and they take care of the delivery & some instances
installation too

• Distributors: Distributors are the intermediary who helps in transporting the goods
from Wholesalers to Retailers, by using this method PKCC can save the cost of
shipping as the distributor would deal with more than one product. It’s also quite
possible the retailer and distributor may create a complete packaged deal for the
customer like entire kitchen set by combining all the kitchen items like LPG stove,
Chimney, Electric Kettle, RO products from various brands or from the same brand.