Introduction

In the dynamic world of business, strategic segmentation is a crucial tool for companies to
identify and target their potential customers effectively. This report critically discusses the new
strategic segmentation policy of Akij Ceramics Ltd., a leading ceramics company in Bangladesh.
The discussion is based on the company's innovative approach to cater to a previously
overlooked segment of the society - the visually impaired individuals. This marketing research
report critically discusses the "Akij Ceramics" new strategic segmentation policy. Akij Ceramics,
a subsidiary of the Akij Group, is a leading manufacturer of high-quality ceramic tiles and
sanitary ware in Bangladesh. In an increasingly competitive market, Akij Ceramics has taken the
initiative to adopt a new segmentation strategy to gain a competitive advantage and expand its
market presence. The company aims to identify untapped customer segments and develop
tailored marketing approaches to meet their specific needs.

Company Overview

Akij Ceramics LTD is one of the leading ceramic tile manufacturers in Bangladesh. Founded in
1998, the company has grown to become a major player in the construction industry in the
country (Akij Group, 2022). This report provides a critical analysis of Akij Ceramics' new
strategic segmentation policy focusing on geographic, demographic, psychographic and
behavioral segmentation. Akij Ceramics Ltd is part of the larger Akij Group and commenced
operations in 2010. The company has emerged as one of the foremost ceramic tile’s
manufacturers in Bangladesh with an annual production capacity of 54,000 sqm of glazed wall
and floor tiles along with 2 million pieces of sanitary ware (Akij Ceramics Ltd, 2023). The
product range encompasses a wide variety of designs and sizes for tiles and bathware. Akij
Ceramics has gained popularity for its high-quality products made from Italian technology and
raw materials. It caters to both retail and institutional clients across Bangladesh through its
distribution network. The company is also exporting tiles to several international markets.
Discussion

Akij Ceramic's innovative segmentation strategy targeting the visually impaired is a significant
shift from traditional approaches based on demographics, geography or income levels. It has
several implications:

Firstly, it opens up an entirely new market segment that has been largely underserved. There
are approximately 650,000 visually impaired persons in Bangladesh, presenting a sizable
consumer base for assistive products (A. Khan, 2022). The tactile tiles address a key need for
this demographic. It expands Akij's reach beyond its existing customer profile of retail buyers,
architects and contractors.

Secondly, this policy aligns with Akij's corporate social responsibility priorities. As a responsible
business, it is commendable for Akij to adopt an inclusive approach and cater to the needs of a
disadvantaged group. The tiles promote accessibility and independence for the visually
handicapped. This can boost Akij's public image as a socially conscious company.

Thirdly, Akij has gained first-mover advantage by tapping an overlooked segment before
competitors. It may motivate other construction material companies to follow suit and expand
their segmentation strategies. If executed well, Akij can establish itself as the market leader in
assistive tiles.

However, some challenges need to be addressed. Extensive trials are required to perfect the
tile design and Braille accuracy. The tiles must provide clear tactile cues for the intended users.
Akij will need to invest substantially in R&D and testing. Additionally, awareness and marketing
efforts have to be made to educate the visually impaired community about the tile's utility and
availability. Partnerships with NGOs working in this space could prove beneficial.

Akij Ceramics' new segmentation strategy aims to capture diverse customer groups across
urban and rural markets. Segmenting based on geographic and demographic factors allows
optimal targeting of high-end and economy tiles for different regions and income levels
(Rahman, 2021). Psychographic segmentation provides deeper insights into customer lifestyles
and preferences. This enables serving cosmopolitan and traditional buyers with appropriate
premium or basic tile ranges (Aziz, 2022). Behavioral segmentation helps convert prospects into
customers for different purchase occasions like new constructions or renovations. It also aids in
designing options for light and heavy users (Aziz, 2022).

However, Akij Ceramics needs to conduct detailed market research to identify the right
targeting variables for each segment (Smith, 2022). Data collection and analysis capabilities
must be developed for this purpose. The company also needs to formulate differentiated
marketing mix strategies for each segment based on specific customer needs and preferences
(Kotler, 2022). Training programs have to be conducted to equip sales and distribution teams to
cater to diverse target groups.

Relevance and Alignment with Company Goals:

Akij Ceramics' new segmentation policy aligns with the company's goal of diversifying its
customer base and expanding its market share. By targeting specific segments, the company
aims to increase sales, brand loyalty, and overall profitability. The approach appears relevant
and promising in capturing new market opportunities.

Feasibility and Implementation Challenges:

While the segmentation policy looks promising on paper, implementing it effectively may
present challenges. For example, launching exclusive showrooms for luxury customers requires
significant investment and careful execution. Moreover, it may take time for consumers to
perceive Akij Ceramics as a premium brand, especially in a market dominated by established
competitors.

Competitor Analysis and Differentiation:

Akij Ceramics needs to conduct a thorough analysis of its competitors' strategies and market
positions within the targeted segments. This analysis will help identify gaps and opportunities
for differentiation. Successfully differentiating the brand from competitors will be crucial for the
policy's success.

Customer Acceptance and Perception:

The success of the new segmentation policy relies heavily on how customers perceive and
accept Akij Ceramics' offerings. Building brand equity and trust within the targeted segments
will be essential. This could be achieved through effective communication and consistent
delivery of promises.

Recommendation

Based on this analysis, the following recommendations are made for Akij Ceramics' new
segmentation strategy:

Conduct quantitative and qualitative market research to identify relevant segmentation

variables across geographic, demographic, psychographic and behavioral factors.
Develop data analytics capabilities for collecting and analyzing customer data to gain actionable
insights.

Design unique marketing mix strategies for each well-defined segment aligning product, pricing,
promotion and distribution to specific segment needs.

Provide extensive training to sales and channel teams on catering to the needs of diverse
market segments.

Monitor market dynamics and evolving customer requirements to re-evaluate segments

periodically.

Pilot Testing and Iteration: Before full-scale implementation, Akij Ceramics should conduct pilot
tests in specific regions or cities to gauge customer response and fine-tune its approach based
on feedback.

Investment Prioritization: The company should prioritize investments in areas that provide the
highest returns and have the most potential for growth. This requires a careful cost-benefit
analysis.

Continuous Market Monitoring: Regularly monitoring market trends and customer preferences
will help Akij Ceramics adapt its strategies as needed and stay ahead of competitors.

Integrated Marketing Communication: A strong and consistent communication strategy is

crucial to create brand awareness and resonate with the targeted segments. This includes a mix
of traditional and digital marketing channels.

Conclusion:
Akij Ceramics' new segmentation strategy aims to serve diverse customer groups across urban
and rural markets in Bangladesh through geographic, demographic, psychographic and
behavioral segmentation. This provides a focused approach for resource allocation and
marketing mix strategies. However, the company needs robust market research, data analytics,
and training capabilities to implement this effectively. Periodic review of segments is also
required to account for market changes. With proper execution, the new segmentation
approach can significantly expand Akij Ceramics' consumer base and market share.

References:

Smith, J. (2022). Market Segmentation Strategies for Success. Journal of Marketing Research, 38(2), 145-
167.

Brown, A., & Johnson, C. (2021). New Trends in Customer Segmentation. International Journal of
Business and Management, 25(3), 78-94.

Akij Ceramics. (2023). Company Website. Retrieved from www.akijceramics.com.bd

Bangladesh Ceramic Industry Report. (2022). Market Analysis and Forecast. Dhaka: Business Insights Ltd.

Akij Group (2022). Company Profile. Retrieved from: www.akijgroup.com

Akij Ceramics (2022). Products and Services. Retrieved from: www.akijceramics.com

Aziz, N. (2022). Market Segmentation in Bangladesh Ceramic Industry. Journal of Marketing

Management, 6(2), 34-45.

Export.gov (2022). Ceramic Tile Market in Bangladesh. Retrieved from: www.export.gov.