Prof Javed/Aug 2009
Some interesting insights!!
Allen Solly
Emami fair and handsome
Fair and lovely men’s active Vs fair and lovely
(regular)
TVS Victor Vs TVS Scooty pep ( pach rangi
satrangi )
Hero Honda Pleasure ( Priyanka – Silly village
girl, Why should boys have all the fun ?)
Mehr Jessia Rampal , Sushmita in Oil of Olay ,
anti ageing creams…Do you apply anti ageing
creams ??? Why ?
How many of us have Nutralite , Diet Pepsi ,
Diet Coke , Sugar free ……Amul lite ? Why and
Why not ?
Can we practice ‘one size
fits all’?
Tastes and preferences vary
Income of different individuals is different
Climatic conditions and other geographical
conditions in which different people stay
varies across the globe
Lifestyles of different people are different
Family size , gender, interests ,buying habits
are not the same for every individual
What is a segment ?
Marketer needs to identify various groups in
the market place who may be mutually
exclusive but individuals within a particular
group will have similar wants ,purchasing
power, geographical location, buying habits
etc.
Understanding a Market
segment
A segment is an identifiable group in the
market with similar wants ,purchasing power,
geog location , buying habits
Which segment am I looking
for ?
Car
For basic transportation
For luxury
For safety
High performance
Levels of segmentation
Market Segment
Niche
Local marketing
Individual marketing
Basis for Market Segmentation
Geographic segmentation
Dividing the market into different geographical
units-nations ,states , regions, neighborhoods
The company can operate in one or few
areas or all geographical areas
’Makke di roti and sarso da saag’
Mustard oil –North India
Groundnut oil- Southern and western
India
DEMOGRAPHIC SEGMENTATION
Market is divided into groups on the basis
of :
Age : baby foods ,toys, adult diapers,
Insurance,mediclaim …
Income: Automobiles
Gender: clothing , hairstyle ,cosmetics
( Emami Fair & Handsome, Nail paints).
Family size(cars,apartments),
education ,generation (for movies),
Occupation ( white collared –blue collared
workers)
Income
Psychographic Segmentation
Study of lifestyle of customers
Buyers are divided on the basis of :
Personality :Endow brands with a personality
A brand also has a personality
Enfield indicates masculinity, impulsive ,alert
personality
Lifestyle : cosmetics (water proof eyeliners for
working women), furniture, apparel , consumer
durables
Values : belief system, social awareness
campaigns, family planning , patriotism
Some brands promote that a part of the revenue
would be directed towards upliftment of
underprivileged sections in the society
Behavioral segmentation
Buyers are divided on the basis of :
occasions they develop a need to use a
product
E.g: Thomas cook serves a group of
people who fly to a vacation destination.
Mother’s day , Father’s day were
promoted to increase sale of candy ,
flowers.
Buyers are divided on the basis of ‘
benefits ‘ they seek from the product
Travel for fun / adventure etc .
Behavioural segmentation…
Buyers are divided on the basis of usage
rate
Non users, ex –users, potential users,
first time users, regular users
loyalty status-hard core loyals, split
loyals , shifting loyals , brand switchers
light users /medium/heavy users
Benefits of Segmentation
More fine tuned products/service for the
target audience
Choice of channels of distribution becomes
easier.
May combat competition or face competitors
in a better way
“Different marketing mix may be used for
different segments”
Targeting
Selecting one or more market segments and
developing a product to be offered to these
segments
Targeting strategies
Single segment concentration-risky ,e.g : Sports car
Selective specialization- Multisegment coverage, diversify your risk
Product specialization: a product can be offered to many segments
E.g: Aqua fresh – three segments –sparkling white teeth , fresh
breath ,anti cavity protection
Market Specialization : Serve many needs of a market .
Full market coverage : a product for every purse ,purpose and
personality
Positioning
Al Ries and Trout -1960
Creating and offering an image distinctive in
the minds of the customers.
If you do something to the product –
differentiation
If you attempt to do something to the
customer’s mind - positioning
Positioning
USP –Unique Selling Proposition( Rooser
Reeves) Maggi : 2 minutes
Knorr : Instant soups
Whirlpool: fastest cooling
Mercedes: great engineering
Double benefit positioning
Triple benefit positioning
HUL-Pepsodent :’10 nahi to bas nahi’
Positioning strategies
Attribute-10 Downing street pub - largest
Benefit: tasy experience-Essel World
Competitor: More Wild animals in Ranthambore
sanctuary than Salim Ali bird sanctuary
,Bharatpu
Application: last minute revision-Navneet 21
Users: thrill seekers in a water park
Quality /price: Bajaj ‘Value for money for years’
Project
Study of Market segmentation- Targeting
and positioning
Marketing mix variables
A- Pizzeria / Restaurant / leading
hospital /Beauty Parlour /Hotel
B-Cosmetics / Magazines /Tractors /
Laptops/ Apparel / tourism
Choose one each from A or B
Modus operandi
A report – compulsory ( 10 marks )
Presentation of Randomly called upon students in each
class ( 5 marks )
Cover page with the Instt name , title , roll no , Division,
year
Profile of the marketer
Details abt how market segmentation has been done .
Marketing mix variables in detail
Key learnings
Pictures /illustrations would add value to your effort !
DEADLINES :
UNCOMPROMISED!!
Report Submission on 10 Sept 2009
before 3.30 pm in the box kept in the
faculty cubicle.
No calls / requests shall be entertained for
deadlines .
Two students only ( per group)
