Segmentation and Targeting of icici

8/10/2019 Segmentation and Targeting of icici

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Horlicks- A leading food drink

brand


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GSK (GloxoSmithKline is a British Company)

The company has been able to serve widesegment base ranging from children, adults to

elderly people through its regular flavor aswell as through cardamom, chocolate andvanilla flavors.

Why the company expanded the market andachieved growth?


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Because they adapted a more focused

approach through market segmentation and

targeting, using specifically formulatedproducts in different segments.

1 .Junior Horlicks 1-2-3 Targeted at Pre -school children

2 Mothers Horlicks Targeted at pregnant women and

nursing mothers

3 Horlicks women Working women

4 Horlicks lite Calorie sensitive and health

conscious


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To reach a product or service to the right

person or company, a marketer would firstly

segment the market, then target a single

segment or series of segments, and finally

positionwithin the segment(s).

In todays highly competitive environment

these three is required for gaining competitiveadvantage.


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The business organization instead of

competing everywhere to cope with the entire

market, may decide to identify those markets

or territories of markets which can be served

with the most effectively by offering them

correct products and matching needs and long

term business and consumer interests areserved in the most desired manner. thus the

firm breaks up the market into smaller units.


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STP

Segmentation, targeting, and positioningtogether comprise a three stage process.

We first (1) determine which kinds of customersexist, then (2) select which ones we are best offtrying to serve and, finally, (3) implement oursegmentation by optimizing ourproducts/services for that segment andcommunicating that we have made the choice to

distinguish ourselves that way.


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Market Segmentation

Market segmentation is the

process of dividing a

heterogeneous market(non

uniform) into homogenous(uniform) markets with

similar characteristics .

Segmentation involves

finding out what kinds ofconsumers with different

needs exist.


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Why Segmentation is Necessary

Consumer needs differs

Differentiation helpsproducts compete

Segmentation helpsidentify media

To identify the gaps(opportunities) in themarket

To help identifyingrepositioningrequirements


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Not all consumers are alike differentcustomers have different needs.

By segmenting the market and choosing

target markets, companies can differentiatetheir products to provide the benefits that thesegments desire.

Once a marketer has identified their segment,they can choose media that is targeted to thatsegment for their advertising.


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The Stages of STP

situational analysis (currentpositions , objectives,

constraints)

Segmentation-

consider variables for segmenting the market

Develop profiles of each segment

Targeting

Decide on targeting strategy based on potential and

effectiveness of each segment

Decide which and how many segments to be targeted

Positioning

Understand the customer perception

positioning products in the mind of customers

Develop the marketing mix


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Bases of market segmentation

Bases of market

segmentation

Consumer responses

(behavioral)

Consumer personal

characteristics (non

behavioral)

G D S-E P Ben UserStatus

UsageRate

loyal Attitude

ReadinessOccasions


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Geographic Segmentation

Region South, west, North , east

City Class-I , class-II, Metros, Cities with population of 1 million, over

1 million

Rural and semiurban

Rural villages, semi urban areas, small towns


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In case of MNC they can divide the global

market on the basis of continental

characteristics.

For eg- coco-cola may consider the entire Asia

as its market but for further business

operation it may divide Asia into south Asia,

middle east, far east etc


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Demographic Segmentation

Age and

life stage Gender

Income Familysize


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Age consumers wants and abilities change

with age. Many products like

Products Targeted

Toys, books, digital games, candies, chocolates,

biscuits , fruit juices and packaged foods

Children and young people

Maggie noodles, potato chips, kurkure, internet and

social networking sites

Youngsters

Disney, Hungama channels Children

Aastha, Sanskar Spiritually inclined older audience

Discovery, national geographic Interested audience in Education

and entertainment

Clearasil Adolescents

Glucon D and other energy drinks Youngsters and sports

enthusiastic


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Age

Titan watches reentered the children's watch

market with the introduction of the brandzoop

It targets 6-14 year old children by using the

design elements that reflect the preferencesof the target audiences.


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Life stage

People with the same part of the life cycle

may differ in their life stage. Life stage defines

a persons major concern such as getting

married, deciding to buy a house, taking careof older parents, marrying off his or her

children, planning for retirement and so on


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Life stage

iBall Aasaan

iBall company has introduceda handset specially targetedour senior citizens under the

brand name iBall Aasaan. Ithas a talking keyboard withlarge buttons, display screenhas higher fonts, it has brightLED torch with a dedicatedbutton, a special indicators for

incoming calls, alerts for lowbattery and for missed calls. Italso has a sos button, whenswitched on automaticallydials five numbers .

Perfect gift for elders


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Gender

Men

More self expressive and

goal oriented

Men focus on the part ofthe environment that helps

them achieve the goal

Men need to be invited to

touch a product Men like to read product

information

Women

More communal minded

Women tend to take more

of data in their immediateenvironment

Women are likely to pick a

product without prompting

Women may relate to aproduct on a more personal

level


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Gender

Men

Park Avenue- ready made

apparel from Raymond is

positioned as a masculine

brand.

Motorcycles are considered

to be for men

Women

Two wheeler brands such as

TVS Scooty , Bajaj wave,

kinetic Flyte, Honda Activa,

Both Men and womenTVS and Mahindra also targeted brands like wego and Rodeo for both men and

women

Van Heusen and Allen solly also have targeted the both

Emamiboth for men and women


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Income

Even if two consumers havesimilar income levels, each

may own different types and

brands of products based on a

host of factors like lifestyle,

values and attitudes.

With the increasing income

and growing no. of middle

class people luxurywristwatch brands such as

TAG Heuer are increasing

their visibility and presence

in the Indian market


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Socio-economic Segmentation

Education and occupation

Based on these two parameters, each household isclassified in one of 12 SEC groups A1, A2, A3, B1, B2, C1,C2, D1, D2, E1, E2 and E3. These 12 groups are applicable toboth urban and rural India. With the growth of theeconomy and of small towns and rural, it has becomeimperative to look at a single SEC classification system forboth urban and rural India.

The SEC classification helps the marketers to identifysegments that have high consuming potential. The highpotential types: A1, A2, the medium ones and the bottomof pyramid ones. .


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Psychographic Segmentation

Lifestyle

Personality traits

Psychological

Values

VALS segmentation framework

(innovators, thinkers, achievers and experiencers)

(Believers, strivers, makers and survivors)


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Eg-

The market for wristwatches provides an illustrationof segmentation base on lifestyle parameters.

In India Titan watches have a wide range of subbrands within their Titan range- Edge, Regalia,Nebula,Raga to appeal to different lifestylesegments.

The range of watches and accessories under thebrand name Fastrack appeals to youthful

segments Sonata good-looking watch at an affordable

price


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Sonata is the value for money watch brand

from Titan industries. It is targeted at

consumers seeking durability and value with a

clear positioning of No compromise watch.


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This brand was targeted towards the

youth

Raga watches at women in the

premium segment which gavethem the feeling of intimacy.


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Xylys comes from the Houseof Titan, is targeting a newgeneration of achievers whoare looking for symbols toreflect their lifestyle, attitude,moods and beliefs.

Nebula-precious jewellerywatches from Titan. It is acollection of intricately carved

designs for women inspired byfloral patterns and thesewatches are engraved withbeautiful patterns in gold andprecious stones. This is for thepremium segment.


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Behavioral segmentation

Marketers divides buyers into groups on the

basis of their knowledge of, attitude towards,

use of, response to a product.


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Occasions

Greeting card Festival seasons, special occasions

(Christmas, anniversaries, new year,

birthdays, valentine day)

Durable products Two wheelers, TV, refrigerators are heavily

advertised during festive occasions

Chocolates , sweets and dry fruits Specifically packed for festivals like Holi,

diwali etc


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Usage rate

Light

Medium

Heavy product users- high percentage of total

consumption


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Benefit Segmentation

Segmenting on the basis of the most important

and meaningful benefit

( quality, speed, service and economy)

Eg- car (quality- Mercedes benz, service-bulletproof, economy-maruti 800, specialty-Ferrari)


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BENEFITSTOOTH PASTE

f


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Benefit segmentation

Segmented on the basis of benefits sought by consumers

Toothpaste

General benefits that consumers seek are

cleanliness and hygiene in all segments.

Other key benefits are:-

Cosmetic Fluoride Herbal

Protection againstfoul smell, modernity

and cosmic value. Eg-

Colgate, Prudent

Family health,extra protection

for children. Eg-

Colgate Fluoride,

Cibaca Fluoride.

Family health andwelfare.

Traditionally good

for health.

Eg-Neem, Dabur.


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Loyalty status

Hard core loyal- one brand all the time-eg-

colgate

Split of soft core loyal- loyal to two or three

brand.eg-Colgate switching between two

brands pepsodent and close-up

Shifting loyals- shift from one brand to another

Switchers- no loyalty to any brand


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Readiness

Unaware

Aware

Informed

Interested

Desirous

Intending to buy


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Attitude

Enthusiastic

Positive

Indifferent

Negative

Hostile (unfriendly /aggressive)


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Eg-Attitude

Enthusiastic- impulsive purchases-carry cash

all the time . Need credit card

Positive

Indifferent- think a lot and pay cash for

purchases. technology averse (don't use credit

cards)

Negative- they will never go for credit card


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Examples

Titan has segmented the watch market and

identified clearly the needs of each group.

Titan has segmented the market on the basis

of the following variables:

Non behavioral -Demographic (age,gender),

Psychographic (lifestyle and personality),

Behavioural(benefits and occasions,)


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12 - 20Years

20-35

Years

35-50

Years

> 50

Years

Demographic (Age Group)

Conservative,

reserved, shy

Outgoing,

Fun Loving,

Bindaas

Attitude / Behavior)

North

East

South

West

Indian Geography

Plain

Salted

Nimbu

flavor

Spicy /

Red Chilly

Mustar

d Sting

Taste

Segmentation:

Age Group

Attitude/Behavior

Geography

Taste


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Benefits of segmentation

Helps focusing strategiesmore sharply on target groups Helps the company to know the demand pattern of each segment

Helps the marketers to understand the need, behavior, habits, tastesand expectations of consumers of different segments

Marketing can be mores specialized if segmentation is done

Helps in adapting different policies, programmes for different markets New customers are attracted because of this strategy (segmentation)

Support development of niche market

Customers are benefited as products that serve their interest andsatisfy their need

Better competitive position for existing brands


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Targeting

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 thesegment.


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Target Marketing

Target Market

Consists of a set of buyers who share common

needs or characteristics that the company decides

to serve


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Target Marketing

Evaluating Market Segments

Segment size and growth

Segment structural attractiveness

Level of competition

Substitute products

Power of buyers

Powerful suppliers

Company objectives and resources


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Marketers should understand

First, how well are existing segments servedby other manufacturers? It will be more difficult toappeal to a segment that is already well served than toone whose needs are not currently being served well.

Secondly, how large is the segment, and how can weexpect it to grow? (Note that a downside to a large,rapidly growing segment is that it tends to attractcompetition).

Thirdly, do we have strengths as a company that willhelp us appeal particularly to one group ofconsumers?


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Strategies/patterns

Single segment- Allahabad law book agency


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Single segment- Allahabad law book agency(specialized in only law books) , BPB publicationspecialized in computer books

(one particular product for one particular market) Selective segment company z produces TV and

walkman (two different product for two differentmarkets)

Product specialization one product to differentmarkets eg- microscope to university lab, govt lab,commercial lab

Market specialization-company specialized in home

appliances- TV, WM, Refrigerators. Micro ovens, fansetc. for middle class people segment

Full market coverage very large firm adopts this-IBM, GE, coco cola


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Companies mightdevelop one

marketing mix

strategy that isappropriate for all

members of the

total market. Powder milk

Undifferentiated targeting strategy

Concentrated strategy

Differentiated strategy


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Example- coca-cola, Pepsi, thumps- up


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Multi-segments strategy Here the firm may select two or more then two or may be all

the segments and approach each segment with anappropriate marketing mix programme.

Car maker

Small car segmentSemi-luxury

segmentLuxury segment

Marketing MixMarketing Mix Marketing Mix


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Exists when a firm

develops different

marketing mix

plans speciallytailored for each of

two or more

market segments. P&G





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Only onemarketing mix is

developed and

directed toward afew, or perhaps

one, profitable

market segments. Mont Blanc pens





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Choosing a Target Marketing Strategy

Considerations include:

Company resources

The degree of product variability

Products life-cycle stage

Market variability

Competitors marketing strategies


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Criteria for Effective Targeting

Identifiable Sizeable

Stable Accessible

Congruent with thecompanys objectives and

resources


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There are five criteria for effective targeting, as shown onthe slide. First of all, the target must be identifiable. Thismeans that the marketer must be able to see or find thecharacteristic they have chosen for segmentation.

The segment must also be sizeable. It must be large

enough to be profitable to the marketer. A stable segment means that the consumers are not

fickleand likely to change very quickly.

A group of consumers must be accessible to be targeted.The marketer must be able to reach that market in anaffordable way.

Finally, the target must be congruent with the companysobjectives and resources.

P i i i


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Positioning


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Positioning

Positioning: The place the product occupies in consumers minds

relative to competing products.

Typically defined by consumers on the basis of important

attributes. Involves implanting the brands unique benefits and

differentiation in the customersmind.

Positioning maps that plot perceptions of brands arecommonly used.


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Positioning

Positioning of a product or service is creating

an image in the consumers mind.

Consumers generally buy images rather than

actual product.

Marketers mostly use advertising as a tool to

build up brand or corporate image.


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eBays positioning: Nomatter what it is, you can

find iton eBay!

Positioning Example


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LO9 Fabric & skin safety on baby clothesIvory Snow

Tough cleaner, aimed at Hispanic marketAriel

Outstanding cleaning for baby clothes, safeDreft

Detergent and fabric softener in liquid formSoloBleach-boosted formula, whiteningOxydol

Value brandDash

Stain treatment and stain removalEra

Sunshine scent and odor-removing formulaGain

Detergent plus fabric softenerBold

Tough cleaning, color protectionCheer

Tough, powerful cleaningTide

PositioningBrand

Positioning of P&G Detergents


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positioning

Physical positioning- physical productcharacteristics

Perpetual positioning- endorsement of

celebrities

So a marketer has to create both physical and

perpetual differences


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Positioning strategies


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Positioning strategies

Sl.no.

Positioningstrategy

Definition Advertising claims

5 Product class Associating a product orservice in a particularproduct class

Liquid dishwasher withdish wash bar

6 Cultural

symbols

Associating cultural

symbols with a product orservice to differentiatefrom competitors product

Royal

7 Competitors Associating withcompetitors product or

service by comparison

Compares withcompetitors brand

Colgate Vs.pepsodent


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Competing brands in the

health drinks market

Advertising claims Health drink

market

Complan

Horlicks

Bournvita

Boost

Viva

complete planned foodfor growing children.

Contains 23 vital

nutrition

The great nourisher-with

extra calciumHealth strength and

energy.contains

protiens,vitamins,

menerals and

carbohydrates.

Energy Ah! Energy

Double action drink

Health

Drink

Market


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Product repositioning

In some cases products that are selling well are alsorepositioned. This is done to enlarge the reach of theproduct and increase the sale by appealing to a widertarget market.

Eg- milkmaidMilkmaid was positioned as convenient form of milk for usein tea and coffee. It repositioned in 1980 as a product for alluses involving milk. For that a well planned advertisementcampaign was launched , repositioning milkmaid as an idealingredient for a variety of sweets and other preparation, inaddition to daily use in tea and coffee.


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Perceptual Mapping

A means of displaying or graphing, in two ormore dimensions, the location of products,

brands, or groups of products in customers

minds.

h


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Identifying possiblecompetitive advantages and

compare with competitorsproducts serving the sametarget market

Choosing the rightcompetitive advantage

Choosing a positioningstrategy

Differentiation can be based on Products

Services

Channels

People Image

Topics

Choosing a Positioning Strategy


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Product Differentiationfeatures, performance,

style & design,

attributes

Service Differentiationdelivery, installation,

repair, customer

training


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Channel Differentiationoffering goods and

services in more

convenient places

People Differentiation

hiring & training better

people than

competitors do

Image Differentiationsymbols, characters


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How many differences topromote?

Unique selling proposition

Several benefits

Which differences to promote?Criteria include:

Important

Distinctive

Superior

Communicable Preemptive

Affordable

Profitable

Topics

Identifying possible

competitive advantages

Choosing the right

competitive advantage

Choosing a positioning

strategy


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Segmentation and Targeting of icici

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