Segmentation, Targeting and Positioning

By Prof. Prasad Kulkarni

Levels of Market segmentation

Segment marketing Niche marketing Local Marketing Individual marketing

Bases for segmenting consumer markets

Geographic segmentation
Region Density Climate

Company: Godrej

Godrej eyes 5 % market share in TV segmentBS Reporter / Kolkata April 16, 2010, 0:29 IST

Appliances company Godrej & Boyce expects to garner five per cent of the television market in India within the first year of its foray into the television space. Currently, the television market is estimated at around Rs 15,000 crore and 13 million units in volume terms. Kamal Nandi, VP-marketing, Godrej & Boyce, said, We test marketed our televisions in Andhra Pradesh for 1.5 years to understand the market. We are now launching in select states including Kerala, West Bengal and rest of Maharashtra without Mumbai. According to Godrej, the reason for foraying into television space is distribution synergies as well as its intention to become a complete consumer goods maker.

George Menezes, COO of Godrej & Boyce, said that the company's appliance manufacturing sector, which achieved a 30 per cent growth in 200910, was poised to register 40 per cent growth in 2010-11. The company has launched CRTs, LEDs and LCDs, priced between Rs 5,600 and Rs 56,000. While the LEDs and LCDs are imported from Europe, the CRT range is manufactured in Uttaranchal by third-party manufacturers.

Demographic segmentation
Age and lifecycle stage Family size Gender Income Occupation Education Religion race

Generation Nationality Social class

Company: Master card

MasterCard has targeted with a vengeance is the health care market. To be successful in this market, MasterCard must convince doctors, dentists, and other medical practitioners to accept credit cards.

Company Loreal
Income Segmentation: the quickly rising middle class which was gaining in affluence. this was the fastest growing income class that represented a highly untapped market potential due to their radically different mindsets from the masses.

Psychographic segmentation

VALS

Company- Loreal
LOreal segmented India into different groups based on their thinking and behavior from the older, more conservative Indians who held conservative values of thriftiness more strongly and stubbornly, and the younger more impressionable generation who had developed a very different and westernized view on spending and culture. Influx of brands like Tommy Hilfiger, Benetton and even MTV in 1991 greatly emphasized Western values of luxury, beauty, and selfawareness leading to the rise of a new segment of people who did not view thriftiness with equal importance as their predecessors but were rather more willing to splurge on luxury goods which were previously considered too expensive and wasteful.

Behavioral segmentation
Occasions Benefits User status Usage rate Buyer readiness Loyalty Attitude

Company- Loreal

LOreal further segmented the market on a benefits basis when it introduced Excellence Crme. Being in crme form, it [was gentler on hair] compared to the natural ingredients such as ammonia which damaged and dried up womens hair. It thus segmented the market into those who needed the hair dying and strengthening benefits of Excellence Crme and those who did not.

This was a crucial form of segmentation for LOreal as it underlined the core concept of its marketing strategy to promise superior products with additional benefits to consumers when choosing between LOreal and Home brands, and subsequently has led to the immense success that LOreal has experienced in India.

Company-Pepsi
PepsiCo has decided to concentrate on the health food market in India. This new focus will aid expansion plans and help drive sales in one of the companys most significant countries. PepsiCo aims to drive the sales of their breakfast cereal, Quaker Oats, which is already proving to be a popular purchase.

Company: all out

Mats Coils vaporizers

Bases for segmenting business markets

Demographic( industry, size , location) Operating variable( technology, user status, customer capability) Purchasing approaches Situational factors( urgency, application, size of order) Personal characteristics( risk, Loyalty)

Targeting

Effective segmentation criteria

Measurable Substantial Accessible Differentiable Actionable

Evaluating and marketing segments

Single segment concentration Selective specialization Product specialization Market specialization Full market coverage

Target market segments

Undifferentiated marketing Differentiated marketing Concentrated marketing Micro marketing( Local marketing and individual marketing)

Jumbo King- big vada pav

While players like McDonald's, Haldiram's, Nirula's etc have focused on a lifestyle positioning with a view to attract middle class families, other players like Pizza Hut, Dominos etc have tried to attract customers with their proposition of quick service and a large product variety on offer. A price conscious but pleasure-seeking middle class Indian consumer has certainly taken up this new wave of fast food in good spirits.

On the other hand, Jumbo King has till now targeted the middle and lower class commuters and workers mainly in Mumbai and has positioned itself based on the attributes of price, quantity and local taste. To grow exponentially and expand into other markets, it is essential to target the right type of customer. In today's changing scenario, students, professionals and daily commuters have become prominent customer segments and Jumbo King cannot afford to overlook them, given their high propensity to consume snacks.

Positioning
The way the product is defined by consumers on important attributes. The place the product occupies in consumers minds relative to competing products.

Positioning maps

Choosing positioning strategy

Identifying possible competitive advantga. Choosing the right competitive advantage - How many differences to promote. - Which differences to promote a. Important b. distinctive c. superior d. Communicable e. preemptive f. Affordable g. profitable

Selecting overall positioning strategy

price