STP Analysis Specific to Indian Sub continent

7/29/2019 STP Analysis Specific to Indian Sub continent

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Identifying

Market Segments

and Targets

8

Marketing Management

A South Asian Perspective, 13th

ed


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Effective Targeting Requires

Identify and profile distinct groups of buyers

who differ in their needs and preferences

Select one or more market segments to enter

Establish and communicate the distinctivebenefits of the market offering

Copyright 2009 Dorling Kindersley

(India) Pvt. Ltd.

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What is a Market Segment?

A market segment consists of a group of

customers who share a similar set of

needs and wants


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Why Segment the Market?

Facilitates right choice of target market

Facilitates effective tapping of the chosen market

Makes the marketing effort more efficient &

economic

Helps identify less satisfied segments & concentrate

on them


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The Himalaya DrugCompany serves a

growing niche

market by focusingon ayurvedic

medicines and

health supplements


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What is Customerization?

Customerization combines operationally driven

mass customization with customized marketing

in a way that empowers consumers to design the

product and service offering of their choice.


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Horlicks is sold in a number

of countries across world.In different countries, the

product has different

formulations in order to

cater to varying consumer

segments and serve

different consumer needs.


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Segmenting Consumer Markets


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Geographic

Demographic

Psychographic

Behavioral


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Demographic Segmentation


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Age and Life Cycle

Life Stage

Gender

Income

Generation

Social Class


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Dove Targets Women


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Adidas Targets Women in India

German shoemaker Adidas is trying to develop

the women segment in India for its products.While globally, Adidas derives about 35% of itseuro 6.4 bn. Revenue from women segment, itbrings less than 15% in India. So, it plans to

increase the number of women focused stores.One strategy to draw more women customersinto its stores is to expand the list of merchandise.The company is now planning to have as many as

68 items ofwomens footwear. It launched its allwomen store at Eva Mall at Bangalore, a mallexclusively targeting the woman customer.


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Behavioral Segmentation

Decision Roles

Initiator

Influencer

Decider

Buyer

User

Behavioral Variables

Occasions

Benefits

User Status

Usage Rate

Buyer-Readiness Loyalty Status

AttitudeCopyright 2009 Dorling Kindersley

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Usage Based Segmentation

Currently user of the brand

Currently user ofcompetitors brand

Currently non users of the category as

such


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Contd

Start with current users of the brand

Tackle current users of competitors brands

Tackle non users, entering the category for

the first time


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Benefit segmentation

GSK Consumer

Healthcare & Pepsi have

created separate

segments with theirDiet Horlicks & Diet

Pepsi. Mother Dairy has

done the same thing

with their low calorieice cream


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Segmentation with Value orientation

Irrespective of the method applies, marketer hasto make the search in terms of the value needs ofthe buyers

All of them may be buyers for the product, butmay differ in their motivations & the value soughtin buying it

Marketer has to fully uncover the value needs. If

he stops with conventional segmentation, suchdifferences in motivations/ value needs lie withina segment cant be uncovered


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Example

Suppose you are targeting the market of holiday

lovers, and have chosen a broad segment applying theconventional segmentation methods. You work out a

travel package addressed to them. But, you find some

of them looking for privacy, some others are relishing

group activities, some are interested in exotic settings,and some more are concerned at the travel comforts.

All of them are holiday lovers & you have selected the

segment applying a combination of relevant

segmentation variables. But you find your purpose isnot fully served, given the diverging value needs of the

segment. You have to go deeper & capture the value

difference in the segment.Copyright 2009 Dorling Kindersley

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Loyalty Status


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Switchers

Shifting loyals

Split loyals

Hard-core


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Effective Segmentation Criteria


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Measurable

Substantial

Accessible

Differentiable

Actionable


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Choosing the Target Market

The marketer can choose one, or a few or all

of the segment

With segmentation the firm just divided the

market into segments to be examined further

All these segments need not necessarily form

its target market

A selection/ decision is thus involved after the

segmentation process


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Airtels Target Market for Broadband

services

Airtel does not select all segments/ cities as its

market for its broadband/ fixed line services. Airtels

broadband services are available in the top 50 cities

only, and even in those cities it does not select allparts of the city as its operating market. It selects

only those segments/ parts of the selected cities

where the costs would be low & profits would be

high. It is highly choosy about the areas it pick up. Itfeels that it doesnt make economic sense to lay

copper fibre across the length & breadth of any city.


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Steps involved in choosing the Target

Market

Look at each segment as a distinct marketing

opportunity

Evaluate the worth of each segment

Evaluate whether the segment meets all theattributes of effective segment

Examine whether it is better to pick up the whole

market or only a few segments Look at segments which are relatively less satisfied

by the current offers


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Contd

Check out if the firm has the differential advantage

capability for serving the selected segments

Evaluate the firms resources

Examine, whether the spotted segments match with& make the best fit for the firms distinctive

capabilities

Finally, select those segments that are most

appropriate for the firm as the target market


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Evaluating the Segments

Is it sizeable

Is it growing

Is it profitable Is it accessible

Is it compatible with the firms ambitions,

resources & capabilities


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STP Analysis Specific to Indian Sub continent

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