STP STRATEGY USED BY GRAMMARLY

An Evaluation of the STP Strategy Used by Grammarly Premium

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STP STRATEGY USED BY GRAMMARLY 2

An Evaluation of the STP Strategy Used by Grammarly Premium

Introduction
Customer-centric marketing strategies have become the gold standard of effective
marketing initiatives. This marketing approach is defined by segmentation, targeting, and
positioning at its core (STP). The STP approach emphasizes the customer (Kuang, 2022). This
approach is based on the significance of consumer knowledge and choice as the primary driver
of consumption, particularly in a competitive market with limited consumer numbers. The STP
approach applies to all businesses seeking to increase their consumer base. Grammarly, an online
writing tool that allows users to check spelling and grammar, is one such business. Grammarly
exists in two versions; the free and premium (accessible monthly for $12) (ONeill & Russell,
2019). This essay reviews Grammarly Premium's STP methodology. The essay begins with an
analysis of Grammarly's targeting approach, then discusses its target market and market
positioning (including a perceptual map).

Targeting Strategy
A company's targeting strategy is crucial for evaluating how successfully it serves its
present and future clients. Grammarly Premium has an undifferentiated targeting (mass
marketing) strategy (Eduoh, 2019). This strategy includes a company aiming its product at the
entire target market without modifying the product's characteristics for different market niches.
The undifferentiated market targeting approach disregards the underlying variations between
market segments and aims to meet the demands of the overall market (Kuang, 2022). The
approach views the market as a single, comprehensive objective. In essence, there is no targeting
involved in mass marketing. Everyone within the target market is considered a prospective
consumer by the strategy. Undifferentiated strategy maximizes the possible number of
consumers accessed by the product. Grammarly claims its website has more than three million
users (Ventayen & Orlanda-Ventayen, 2018). From its website, Grammarly does not define
which market segment its Premium product targets. Consequently, Grammarly intends to reach
all writers with its premium offering (Eduoh, 2019). This includes students, business clients,
attorneys, and professional writers, among other groups of clientele who rely on and utilize the
product for their routine writing needs.
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Undifferentiated targeting has two key benefits. First, it allows the business to maximize
consumer outreach (Kuang, 2022). Thus, undifferentiated targeting is the primary driver of
Grammarly Premium’s development and popularity (Eduoh, 2019). Less than one-quarter of
Grammarly premium users are students (Ventayen & Orlanda-Ventayen, 2018). This indicates
that, as a result of mass marketing, the product has reached a greater number of users than it
would have if it had followed convention and targeted students and users with academic writing
demands (ONeill & Russell, 2019). Secondly, undifferentiated targeting minimizes the
company's expenses (Kuang, 2022). With mass marketing, the corporation runs one promotional
message for all segments, which is more cost-effective. Consequently, the business reduces costs
for enhanced financial position. Grammarly has had substantial financial growth since its
beginnings. It is less expensive for a brand or product (Grammarly Premium) to create services
for the entirety of a certain industry (the writing market).

Targeting the market without differentiation occurs when a product has significant
market appeal. The market appeal of a product line is primarily determined by the frequency of
its use in the marketplace (Kuang, 2022). Typically, such products would contain necessities
such as cosmetics and furnishings, which everyone requires or uses. People in the writing
industry frequently need to examine the quality of their work quickly and accurately by running
grammar and spelling checks (Karyuatry, 2018). In addition, formal writing necessitates the
author to cite their sources and prevent plagiarism. The vast majority of available programs do
either grammatical operations (grammar and spelling check) or originality operations (plagiarism
check) (Ventayen & Orlanda-Ventayen, 2018). Thus, the majority of tools are either grammar
and spelling checks or originality tools (plagiarism checkers). However, Grammarly Premium
offers proofreading and originality tools in a single place (Eduoh, 2019). Consequently, this
product's increased user convenience increases its market appeal. Grammarly Premium's mass
marketing strategy is warranted due to its great market appeal.

Target Market and Segmentation Variables

Markets are often segmented based on the characteristics and interests of consumers. The
target market is the market segment that a brand or product decides to focus on or pursue with its
products or services (Kuang, 2022). When a brand employs specialized, niche, or
micromarketing strategies to advertise its products, the concept of the target market becomes
STP STRATEGY USED BY GRAMMARLY 4

particularly apparent. For firms employing mass marketing, such as Grammarly Premium, the
target market consists of the entire market (Eduoh, 2019). The product's features and services are
designed to increase the quality of writing for various types of authors.

The target audience for Grammarly premium comprises all writers. Specifically, the
program is designed for authors who write in English (Fitria, 2021). These individuals may speak
English as a first or second language in their daily life (Ghufron & Rosyida, 2018). Students and
other academic writers are included in the target market, as are consultants, bloggers and online
content providers, journalists, attorneys, and marketing professionals who write frequently
(Eduoh, 2019). As an inherent part of their daily work and study routines, these individuals are
frequently required to write and generate high-quality documents (Karyuatry, 2018).

While the free mode of the brand gives some assistance, the premium product version
offers a more in-depth and comprehensive writing tool that meets all of the consumers' writing
and proofreading requirements. The requirements of the writing industry are quite similar.
Regardless of the purpose of the writing, the writer frequently requires a document with few
grammatical and spelling errors (Ventayen & Orlanda-Ventayen, 2018). In addition, no author
wishes for a paper or document that incorporates ideas and material taken from the works of
other writers without crediting them appropriately. They thus resort to Grammarly premium for
high-quality, grammatically correct, and plagiarism-free writing (ONeill & Russell, 2019;
Karyuatry, 2018). Grammarly Premium provides a flexible way for the writer to modify various
writing metrics, such as tone and kind of audience for the writing. The writing style is the only
significant distinction between different parts of the writing market. This enables the product to
efficiently target the mass market while allowing all segments the option to modify the product
to meet their requirements without segmenting the market or product offers.

Even while Grammarly Premium is aimed toward the mainstream market, the writing
industry has certain segmentation features that distinguish it from other markets. In addition, the
mass market that Grammarly Premium targets are notably distinct from the traditional writing
industry. The product's applicable segmentation variables are given in the table below:

Table 1: Segmentation Variables for Grammarly Premium

Segment variable Description

STP STRATEGY USED BY GRAMMARLY 5

Demographic Age: 14 and above

Gender: male and female
Income level: all levels of income
Education: all (especially high school and
above)
Occupation: all that require writing on a
regular basis
Geographic Global, both urban and rural
Psychographic Lifestyle: busy, constantly engaged in tasks
that require writing and proofing
(proofreading)
Motives: the need to attain a high quality of
writing (Karyuatry, 2018)
Social class: all social classes
Value segment: all segments
Behavioristic Usage rate: moderate to high
Usage occasion: moderately frequent to regular
usage
Benefits sought: top-quality writing
(Karyuatry, 2018)

Grammarly Premium targets users in international markets with highly inclusive

segmentation factors, as shown in Table 1. The target demographic ranges in age from 14 and
up, which is the active writing age that necessitates the usage of Grammarly (ONeill & Russell,
2019). The product is designed for consumers of various socioeconomic backgrounds, making it
ideal for the mass writing market.

Product Positioning
Brand positioning influences the product's growth potential by determining the product's
ability to entice customer preference and consumption. Grammarly has positioned its premium
offering as an aspirational lifestyle product as opposed to a utility product. This is intended to
STP STRATEGY USED BY GRAMMARLY 6

further integrate Grammarly Premium into the personal and professional life of its current and
prospective users. Instead of presenting the product as the best and most preferred grammar
checker, the firm offers it as an indispensable tool for improving personal and professional
communication (Gorbatko, 2017). This branding elevates the product from a grammar checker to
an indispensable communication tool. The product asserts that the quality of writing – and,
consequently, written communication – enhances personal and professional endeavors that
involve written communication by boosting the writer's or communicator's confidence
(Karyuatry, 2018).

Grammarly Premium aims to promote awareness of the significance of high-quality

written communication through its traditional and digital media advertisements. This is a strategy
for appealing to a wider audience in an increasingly competitive market. Grammarly Premium's
ad copy demonstrates how the program can change text from ordinary communications like
social media updates and emails (Ventayen & Orlanda-Ventayen, 2018). This is intended to
convey the product's core in all textual communications. According to its stance as an all-
purpose writing tool, Grammarly processes a wide variety of textual content, including job
applications, contract drafts, social media updates, academic papers, and business proposals,
among others (Gorbatko, 2017). The product's positioning and promotional language emphasize
the product's ability to make writing more convenient and fun. This commercial pitch also
emphasizes improved writing productivity and efficiency for professionals from several
disciplines, including marketing, customer support, and sales (Gorbatko, 2017). Grammarly
Premium's status as the go-to writing tool for grammar, spelling, and related services has been
reinforced by its complex positioning strategy aimed at appealing to the entire market.
STP STRATEGY USED BY GRAMMARLY 7

Perceptual Mapping

Writing Tools
High Quality

Slick WriteWriter.com
Grammarly Premium

Sribens ProWritingAid

Paper Rater WhiteSmoke

Outwrite Linguix
venient
Incon-

Conve-
nient
Low Quality

Conclusions
With its proofreading capabilities, Grammarly has efficiently utilized an undifferentiated
targeting strategy to target the mass writing market. Since its debut in 2008, the product's
expansion has been fueled by a large number of users acquired through mass marketing. The
product has shifted its focus from an academic and professional writing tool or grammar checker
to a tool for successful written communication, positioning itself as the go-to tool for all writing
requirements. This allows the product to flourish in both professional and personal writing
applications. A perceptual map analysis reveals that Grammarly Premium is more convenient
STP STRATEGY USED BY GRAMMARLY 8

and of greater quality than the majority of its rivals. Consequently, the brand has strong growth
and profit potential because of its effective STP approach.
STP STRATEGY USED BY GRAMMARLY 9

References

Eduoh, V. (2019, September 19). Grammarly's marketing strategy: Growing to 20+ million
users via. VEC | Product-Led Storytelling B2B SaaS content studio.
https://vec.studio/grammarlys-marketing-strategy/

Fitria, T. N. (2021). Grammarly as AI-powered English writing assistant: Students’ alternative

for writing English. Metathesis: Journal of English Language, Literature, and Teaching,
5(1), 65-78. http://dx.doi.org/10.31002/metathesis.v5i1.3519
Ghufron, M. A., & Rosyida, F. (2018). The role of Grammarly in assessing English as a Foreign
Language (EFL) writing. Lingua Cultura, 12(4), 395-403.
http://repository.ikippgribojonegoro.ac.id/id/eprint/543

Gorbatko, I. (2017, August 30). Growth story: How Grammarly is helping the world
communicate better. Medium. https://medium.com/@igorbatko/growth-story-how-
grammarly-is-helping-the-world-communicate-better-827f6fa1df4

Karyuatry, L. (2018). Grammarly as a tool to improve students’ writing quality: Free online-
proofreader across the boundaries. JSSH (Jurnal Sains Sosial dan Humaniora), 2(1), 83-
89. http://dx.doi.org/10.30595/jssh.v2i1.2297
Kuang, J. (2022, April). Research on the Marketing Strategy of Pinduoduo—Based on the STP
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https://www.atlantis-press.com/proceedings/icssed-22/125973799
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Ventayen, R. J. M., & Orlanda-Ventayen, C. C. (2018). Graduate students’ perspective on the
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https://ssrn.com/abstract=3310702