INTRODUCTION Segmentation :
Market segmentation is the identification of portions of the market that are different from one another. Segmentation allows the firm to better satisfy the needs of its potential customers. Requirements of Market Segments:
Identifiable: the differentiating attributes of the segments must be measurable so that they can be identified. Accessible: the segments must be reachable through communication and distribution channels. Substantial: the segments should be sufficiently large to justify the resources required to target them. Unique needs: to justify separate offerings, the segments must respond differently to the different marketing mixes. Durable: the segments should be relatively stable to minimize the cost of frequent changes.
Bases for Segmentation in Consumer Markets Geographic Segmentation The following are some examples of geographic variables often used in segmentation.
Region: by continent, country, state, or even neighborhood Size of metropolitan area: segmented according to size of population Population density: often classified as urban, suburban, or rural Climate: according to weather patterns common to certain geographic regions
Demographic Segmentation Some demographic segmentation variables include:
Age Gender Family size Family lifecycle Generation: baby-boomers, Generation X, etc. Income Occupation Education Ethnicity Nationality Religion
Social class
Psychographic Segmentation Psychographic segmentation groups customers according to their lifestyle. Activities, interests, and opinions (AIO) surveys are one tool for measuring lifestyle. Some psychographic variables include:
Activities Interests Opinions Attitudes Values
Behavioralistic Segmentation Behavioral segmentation is based on actual customer behavior toward products. Some behavioralistic variables include:
Benefits sought Usage rate Brand loyalty User status: potential, first-time, regular, etc. Readiness to buy Occasions: holidays and events that stimulate purchases
Targeting: It is the second stage of the SEGMENT "Target" POSITION (STP) process. After the market has been separated into its segments, the marketer will select a segment or series of segments and 'target' it/them. Resources and effort will be targeted at the
The first is the single segment with a single product. In other word, the marketer targets a single product offering at a single segment in a market with many segments.
Secondly the marketer could ignore the differences in the segments, and choose to aim a single product at all segments i.e. the whole market.
Finally there is a multi-segment approach. Here a marketer will target a variety of different segments with a series of differentiated products. This is typical in the motor industry. Here there are a variety of products such as diesel, four-wheel-drive, sports saloons, and so on.
Positioning : the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. Product positioning process 1. Defining the market in which the product or brand will compete (who the relevant buyers are) 2. Identifying the attributes (also called dimensions) that define the product 'space' 3. Collecting information from a sample of customers about their perceptions of each product on the relevant attributes 4. Determine each product's share of mind 5. Determine each product's current location in the product space 6. Determine the target market's preferred combination of attributes . 7. Examine the fit between: o The position of your product o The position of the ideal vector 8. Position.
The detailed discussion of the STP of 10 different products is as follows :
SPYKAR Lifestyle Private Ltd. Spykar Lifestyle was founded in 1992 and is based in Mumbai, India 12 % market share in India‟s denim industry. SEGMENTATION : ON BASIS OF AGE AND GENDER -TODDLER GIRLS
- YOUNGER GIRLS
-OLDER GIRLS
-TODDLER BOYS
- YOUNGER BOYS
-OLDER BOYS
:ON BASIS OF SOCIAL CLASS FOR MEN – cotton casual wear, jeans, belts , caps , cargos ,shirts ,t-shirts FOR WOMEN – jeans, cargo‟s ,shirts ,shorts ,skirts TARGETING -Kids
-College Students
- Fashion conscious parents
-High disposable surplus income family
POSITIONING -To be jeans wear expert for kids -the tag line is „On Your Own‟ (OYO) -Appeal more Premium than Mass -Vogue dressing to promote as a part of OYO -Like Father-Son & Like Mother- Daughter
NOKIA Nokia is a Finland based company, incorporated in 1967. Nokia started of as a pulp, rubber and cable manufacturing company to a major manufacturer of mobile devices. It‟s the leading manufacturer of mobile devices. Nokia offers a wide range of mobile devices with the experience in music, video, imaging, gaming and a lot more. It also provides the services for network operators. SEGMENTATION Entry level: (Rs 2,500-6,000) Nokia targeted low income people and first time mobile buyers in this series . Sets include are 1200,1208,1100,1110,1112,1108,6030,2600,2626,2525 etc Classic Series:(Rs 7,000-17,000) Nokia targeted decent people in this series .Sets include in this series are 6300,6233,6120,3120 ,6720,6303.2730,6216,3720etc N gage series:(Rs 8,000-16,000) Nokia targeted game lovers in this series .These sets include game like play station ,PSP and Xbox Xpress music: (Rs 13,000-35,000) In this series music lover are targeted. Sets are 5220,5310,5800,5610,5320,5235,5230,5800,5530,5730,5630,5330,5800 etc N-series: (Rs 18,000-50,000) This series is also called multimedia computer. Named as on step ahead multimedia.Sets are N70,N73,N95,N96,N80,N81,N91,N96,N97 etc E-series: (Rs 18,000-60,000) This series is for business people. Sets include are E51,E66,E71,E61i,E90,E72,E63,E52,E75 etc Premium series: (Rs 80,000-2,50,000)In this series nokia targeted people which show visual status. Sets include in this series are Sephira,8800 Gold arte, 8800arte,6788 etc TARGETING NOKIA has mainly targeted -Entry level- for low income group -Classic level- for middle aged persons -Xpress music series- for youngsters
POSITIONING Nokia has created a distinct position incustomer mind by
Nokia logo
-
Slogan Standard ring tone Standard message tone The specific message that is conveyed to thecustomers in every advertisement is; “Nokia enable you to get more out of life”
HDFC BANK The HDFC bank was founded in 1977 by Hasmukh Parekh and it was incorporated in August 1994.It is a new generation commercial banks and it‟s registered office in Mumbai (India). It is also listed in NSE,BSE ,NYSE.It provides Loans,Credit cards,Savings ,Investment vehicles,Insurances etc. SEGMENTATION -Demographic variables
Location – Metros and divisional cities Occupation – Business persons -Salaries class (both govt. & private) Age - Senior citizens -Minor
-Psychographic variables Lifestyle - people who believes in modern banking with higher set of service i.e Internet banking (incontact, mobile refill, travel currency card etc.) TARGETING -Corporate banking market : this market target the industries & fulfill their financial needs -Capital market: this segment is targeted on the long term needs of the individual as well as of industries. -Retail banking market : this segment is for retail investors & provide them short term financial credit for their personal, household needs. POSITIONING HDFC bank has positioned itself as a bank which gives higher standard of services through product innovation for the diverse need of individual & corporate clients.So they highlight their following points in their positioning segment : -Customer centric -Service oriented -Product innovation
AMUL It is a dairy cooperative movement in india and formed in 1946.Amul is market leader in ghee and butter. It has largest milk brand in Asia more than 30 different brands of different products like cheese,ice-cream,condensed milk,ready to eat pizza, beverages, etc. SEGMENTATION -Wide range of product categories caters to consumers across all market segments.For example Amul Kool is targeted at children , while teenagers prefer Kool Café,as it has a cool imagery associated with it. -Segmentation is not as easy in curd and low fat products,due to mixed audiences,various culinary applications, e.g ghee,butter and cheese. - “In India ,the most used spread is ghee,then butter,cheese,low fat butter,margarine,cheese spread and mozzarella cheese. TARGETING -changing retail environment -striking out on its own,with Amul outlets or parlours to deliver cunsumers total brand experience. -Launched in 2002,there are now 400 Amul parlours across the country,which contributed 3% to the brand‟s total turnover last year. High Profile locarions : Amul parlours are today present on campuses of Infosys,Wipro,IIMA,IIT-B,Temples ,metro rail and railway stations in Gujarat. POSITIONING -A mass market player,no premium offerings -USP- Quality with Affordability -Sheer size and scale of operation -New offerings for Health conscious and vibrant India -Ice-cream -probiotic and sugar variants -Chocolates -sugar free brand called Choco-mini to target the diabetic Health and energy drinks Stamina,a health drink made from milk with added vitamin C against Red Bull and Gatorade,milk better than cola. Aimed at youngsters ,priced at Rs 12
NESTLE JUICE Encouraged by the consumer response to NESTLE ORANGE JUICE that was launched in 1996.the category of NESTLE juices was expanded with the introduction of Mango-orange and mango flavours in the year 2000. This has further strengthened the position of Nestle as leader in the value added/premium drinks market. SEGMENTATION We are going to segment juice market on the basis of need.There are following need which we came to know that people like to drink during the following stages : For Travelling and Ocassional Usually people like to drink during travelling because they have to carry single or small packing and juices are the best for that. Juice provide them suitable taste and flavor. For Domestic use Nestle distributes that volume of juice for large family use which may be used in any events and occasions like use with breakfast and dinner etc or serving the guests . TARGETING 200 ml 1000 ml
For travelling and occasional For domestic use
Nestle is first company who launch these two packings in juices who provide the satisfaction more as compare to competitiors but now competitors also move this segment and lauched a food energy drink. POSITIONING Brand strategy is at the heart of marketing strategy.It is the act of designing the company offer and image so that it occupies a distinct and valued place in the target customer mind. Nestle brings a range of juices that will scintillate taste-buds and add variety to suit every moment. Oranges are not in demand only for their divine juicy flavor but equally celebrated the health benefits,They are naturally low in calories , and an excellent source of Fiber and Vitamin C. Squeezed from the finest handpicked oranges,100% pure juice has no added sugar and is a good source of Vitamin C. Having orange juice everyday is a grerat way of strengthening the body resistance against infections and diseases and maintaining a healthy lifestyle.
MARUTI SUZUKI INDIA LTD. Maruti is India's largest passenger car company, which account for over 50 per cent of the domestic car market. Maruti have a sales network of 571 outlets in 383 towns and cities, and provide maintenance support to customers at 2564 workshops in over 1200 towns and cities . The company boasts about its products, which offer unsurpassed fuel efficiency, low maintenance costs and easy availability of genuine parts. SEGMENTATION DEMOGRAPHIC: A) Age- 20-34 B) Gender- Male, Female C) Family size- 3-4 , 4+ D) Income - RS 20000-30000, 30000-50000, 50000 and above. E) Occupation- Professionals, Officials, Supervisors, Home makers, Youngsters. PSYCHOGRAPHIC A) Social class: Middle class, working class, upper lowers. B) Lifestyle: Strivers, Achievers C) Personality: Gregarious, Ambitious, Compulsive BEHAVIORAL: A) Benefits: Quality. Service, Economy, Speed B) Readiness stage: Interested, Intending to buy TARGETING Expected price: A-star is expected to be priced around the 3-4lakh range It will target the small car segment A segment where ALTO is the market leader. It will mainly focus on the middle and workers class people. It will satisfy both the needs of European and Indian customers POSITIONING The A-Star launched in indian markets. The A-Star is an environmentally oriented concept and would be produced with a very efficient 1-litre petrol engine, which have great mileage and low emissions. The A-Star is just be the new Alto in India. The Ritz also launched in indian markets .
PIZZA HUT In 1958, Frank and Dan Carney had an idea for a great local pizza restaurant in Wichita Kansas. The small 25 seat restaurant only had room for 9 letters on the sign… the building looked like a hut… so 'Pizza Hut' was born! It‟s mission is to make a perfect pizza and providing courteous and helpful service on time all the time. Every customer says, "I'll be back!" SEGMENTATION Main segments which Pizza hut has captured are the combination of higher incomes and dual career families , due to higher income consumer have more disposable income , allowing them to eat out more often . Pizza Hut holds the most market share in the Pizza industry, the perceived quality and service of the company will help to ensure a better the average chance at a successful introduction of a new product. The introduction of a product that keeps with today trends is also important to reduce the risk of failure. Pizza Hut maximum market segment is younger generations. These generation ranges from 12 to 30, the overall spending of these generations is mostly on non essential items, the higher amount of spending has been done on eating out. TARGETING Pizza hut targeted market defines them as a family product. This is because they don‟t really directly market their customers. They are target everyone whereas their competitors target a certain gender or age. But pizza hut targets a wide range of customers. This is because they want to make the most money and who blames them. They have many competitors and they are bound to try everything to cope up tops. Their competitors are everywhere. There are just a few that are main competitors and pizza hut will always try to be the best and get the most money by making their products better quality but also cheaper. They try to offer something different with their product as well. They offer a range of stuffed crusts to try and attract customers. They also do vegetarian options with meet free pizzas and a salad and pasta bar. Not a lot of restaurants offer a salad and a pasta bar. This is another competitive idea to attract or customers.
POSITIONING Pizza Hut was among the first multinational brands to enter the food retail sector in Pakistan. When the first Pizza Hut restaurant opened in Karachi the quick service industry was at a nascent stage and the pizza category was dominated by a sole regional player who had a marginal presence. Pizza Hut went on to play a significant role in pioneering and developing this category in Pakistan.
This is because at Pizza Hut the belief is that every pizza has its own magic, thus making it a destination product – which everyone seeks. It is this belief that has ignited the passion to create, innovate and serve the finest product the industry has to offer, while setting standards for others to strive to replicate. Pizza Hut is committed to providing uncompromising product quality, offering customers the highest value for money and giving service that is warm, friendly and personal. A critical factor in Pizza Hut's success has been its unique dining experience. Crew members at Pizza Hut strive each day to provide 'CUSTOMER MANIA' - the kind of service that ensures that every visit of the customer is a memorable one. Pizza Hut's constant endeavor to provide extra value – whether it is pizzas which are available to suit every price range, new promotions or the introduction of innovative product ranges - that puts a 'Yum' on every customer's face.
VIDEOCON Videocon deems it a privilege that it is in a position to prolong instances of joy and spirit. And lend much needed variety and flair in everyone's life. An Indian multinational, a global force in display technologies and a group on the threshold of even bigger things. There are new horizons to breach, new frontiers to conquer and simply no pause buttons on the Videocon play. Expect the unexpected, the uncharted and the unlimited. Videocon enjoys a pre-eminent position in terms of sales and customer satisfaction in many of consumer products like Color Televisions, Washing Machines, Air Conditioners, Refrigerators, Microwave ovens and many other home appliances, selling them through a Multi-Brand strategy with the largest sales and service network in India. SEGMENTATION Market segmentation is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs. Because each segment is fairly homogeneous in their needs and attitudes, they are likely to respond similarly to a given marketing strategy. They are likely to have similar feelings and ideas about a marketing mix comprised of a given product or service, sold at a given price, distributed in a certain way and promoted in a certain way. Segments based on Income Plasma: Income group of more than 50,000 LCD: Income bracket of Rs 20,000 and above Slim: Consumer in the income bracket of Rs 9000-15000 Flat: Consumer in the income bracket of 7000-12000 Conventional: income bracket of Rs 3000-6000 Segments based on social class Plasma: rich class LCD: upper middle class and rich class Slim: middle class Flat: middle and lower middle class Conventional: lower economic class. Benefit Segmentation: Conventional, Flat screen Slim, LCD, and Plasma can also segmented on the basis of benefits that an end consumer would receive from them.
TARGETING Once the firm has identified its marketing-segment opportunities, it has to decide how many and which ones to target. Marketers are increasingly combining several variables in an effort to identify smaller, better-defined target groups. The decisions involved in targeting strategy include: * Which segments to target? * How many products to offer * Which products to offer in which segments In premium segments like flat screens and FDPs the growth in sales has been many times the industry growth. More importantly, high end product sales are no longer restricted to metros. Consumer in tier-2 cities seems to be as evolved in lifestyle needs. The consumer profile, too, has changed. Higher disposable incomes, greater aspirations and younger demographic have increased demands for the technologies. And Videocon is targeting this segment POSITIONING Positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. It is the 'relative competitive comparison' their product occupies in a given market as perceived by the target market. Once the competitive frame of reference for positioning has been fixed by defining the customer target market and nature of competition, marketers can define the appropriate points-ofdifference and points-of parity associations. Points of Parity (POPs) are associations that are not necessarily unique to the brand but may infact be shared with other brands. They represent necessary-but not necessarily sufficient-conditions for brand choice. Videocon's Points-of-Parity are good quality Picture and good sound. Points-of-Difference (PODs) are attributes or benefits consumers strongly associates with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand. Videocon's POD is the quality product with low cost. With the strong backward integration Videocon can provide the products with low cost.
TANISHQ Tanishq is the country‟s only truly national jeweler • Targeted a more Western consumer evoking a “Nice, but not for me” reaction • Opened its first boutique in Chennai in 1995 as a precedence to tap the South market • Boutiques were spacious, intimidating , exclusive with limited inventory on display • In Feb 1996 launched its first 18-carat range of exclusively designed gem-set jewelry SEGMENTATION Psychographic Segmentation – Life Style: Tanishq has found that 40% of the Indian women are working and they targeted this segment with a specific group of products called collection- G, a 9-to-5 jewellery for the working women. Geographical Segmentation – Titan realized that, given the diverse nature of Indian ethnicity, it would have to satisfy the tastes of all regions. So, the designs became more ethnic. Titan also decided to transpose designs by stocking Bengali designs in Delhi, Keralite designs in Tamil Nadu and typical designs from Tamil Nadu in Bombay in order to appeal to a variety of people. TARGETING
POSITIONING Promise of purity and a unique experience -Design and retail innovation have be nthe hallmark of Tanishq all the years. -First and only jeweler who guarantees the puriy of its gold jewellery and cerifies the quality of its diamond and colored gems in writing. Trust -It has established itself as a highly ethical player in a market that was rated as having the highest incidence of under cartage (bureau of Indian standards) -They even have gold meters where one can check the purity of gold Luxury - Tanishq also has been positioned as a branded jewellery of luxury rather thn commodity. Superior Product - Tanishq introduced the concept of “consistency in delievering promise” -Tanishq is known for its ability to develop specialized design collections. -Offer a totally new perspective to Jewellery buying especially when it comes to exquisite oriental jewellery.
PVR CINEMAS PVR (Priya Village Roadshow) Cinemas is one of the largest cinema chains in India. The company, which began as a joint venture agreement between Priya Exhibitors Private Limited and Village Roadshow Limited, began its commercial operations in June 1997 with the launch of PVR Anupam in Saket, India's first multiplex. By introducing the multiplex concept in India, PVR Cinemas brought in a whole new paradigm shift to the cinema viewing experience: high class seating, state-of-the-art screens and audio-visual systems. As of 2009, PVR has a total of 106 screens in 26 multiplexes across India. PVR commands a significant presence in New Delhi and NCR with 37 screens in 13 multiplexes. SEGMENTATION On the basis of customer preferences, we may classify PVR under the Clustered category. This is owing to the fact, that out of the entire masses they have clearly defined their target audience and aim to cater to them. Also, PVR is a Concentrated 42 Market because they only cater to the premium movie-going audience i.e. SEC A and SEC B. PVR Cinemas has approx. 22 million movie goers per month Consumer Demographic Segmentation Age: 61% between 18 and 49 Gender: 47% Males / 53% Female Income: 61% have income over 50K Education: 55% of adult movie-going audience has attended/graduated college*. Of these adults, 37% have college degrees or higher Consumer Psychographic Segmentation PVR Movie Goers are people with high resources and can be classified as “Experiencers” who seek variety and entertainment. Spend a comparatively high proportion of income on fashion, entertainment, and socializing. “PVR Movie Buffs” generally have the following major tendencies:-Go outside the home for entertainment -Participate in sports and other active lifestyles -Hard to reach through other traditional media -lighter television and radio users, but heavy internet users -Receptive to advertising in movie theatres, consider as part of their movie going experience
Consumer Behavioral Segmentation Usage rate: 1/3 of the population attends the movies one or more times per month.
TARGETING PVR being the first of its kind has always been a market leader and therefore its offering to the customer is Innovative. PVR has premium pricing and they target mainly SEC A and SEC B. PVR has brought to its customers the experience of Luxury Cinema. PVR uses the concentrated method as they have target a much focused audience out of he entire masses. PVR witnessed tremendous success Europa Lounge in Delhi. PVR Cinemas has also recently introduced the concept of luxury viewing to Bangalore. Gold Class Cinemas have been introduced for the first time in India, are two ultra luxurious exclusive auditoriums, each equipped with 32 plush and fully reclining seats and generous legroom. Patrons can also enjoy star like treatment at the exclusive Gold Class lounge which provides an excellent pre cinema experience with scrumptious food and beverages PVR Priya of PVR‟s chain use Differentiation method for pricing. It practices different price slabs for different target audience. For instance, they have tickets ranging from Rs 70(for the youth) to Rs 200 (for the upper class i.e. SEC A).
POSITIONING PVR had, and still has a very well planned market position. Its premium positioning affects the customers perceptual positioning. Therefore, they decided on their marketing strategy and pricing, keeping the target market in mind. In case of PVR, they make use of all their tangible elements to prove to their customers that their movie tickets are worth the price they are paying. Also, since some of the other movie theatres (which are not multiplexes) are still offering movies at rates as low as Rs 35, it is the task of its marketer to ensure that PVR comes across as a superior brand in terms of cinema viewing as well as the experience. It‟s positioning is evident in its mission statement also which says “A commitment to deliver the best quality cinema viewing Every where, Every time.”
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