Segmentation, Targeting and Positioning of Daraz Bangladesh

The method of segmentation, targeting, and positioning (STP) is an important concept in the
study and work of marketing. STP is an acronym that stands for segmentation, targeting, and
positioning. The STP mechanism shows the interdependence of an in the general market and
how the business decides to invest in that market.

Market Segmentation of Daraz Bangladesh

Geographic Segmentation:
Daraz Bangladesh initially segmented their industry as a whole, with the entire country as a
segment. When Daraz Bangladesh began operations in 2013, it concentrated on the entire market
and is attempting to capture the lion's share of the market. However, it later segmented its market
by city to make operations simpler. They focused on mainly Dhaka, Chittagong, Rangpur,
Rajshahi and other divisional and major city as well.

Demographic Segmentation:

Age, generation, wages, and family life cycle are the variables in Demographic Segmentation. In
terms of age, they are specifically targeting the younger generation in order to sell electronic
devices. Often, since this generation is concerned with fashion and technology, they are now in
the spotlight. However, we can see on the Daraz website that they have all kinds of products for
all kinds of people. In addition to baby products, they also provide products for the elderly. This
clearly indicates that Daraz Bangladesh does not want to confine them to a single generation, but
rather has chosen to reach out to all segments. In terms of family and wealth, they choose to
select people from all walks of life. Because it sells products ranging in price from moderate to
very high, it can be said that it wishes to reach out to all members of the family, from upper
middle class to upper class. It wishes to reach out to those who can at least afford an internet
connection and have access to the online portal.

Targeting of Daraz Bangladesh

Daraz employs differentiated marketing, also known as segmented marketing. They started with
Dhaka. They will progressively broaden their customer base throughout the world. In terms of
demographic segmentation, they targeted the younger generation as well as the middle to upper
income bracket. They also took into account lifestyle and personality. Their target audience
consists of fashion-conscious individuals. They sometimes employ Behavioral variables such as
occasion. They had special deals on occasions such as Valentine's Day, Pahela Baishakh, Bengali
New Year, Independence Day, and so on.
Positioning of Daraz Bangladesh
Daraz Bangladesh's positioning claims include "best price in Bangladesh," "convenient
shopping," "best service in Bangladesh," and "100% authenticity, real, and branded product."
Daraz provides its customers with the opportunity to get the same product at a lower price. They
sell the same product as a physical store, a retailer hub, or a rival website, but at a lower price. It
is important to the majority of their customers. The price is not the same as in other online stores.
They have a specific brand relationship with several brands/companies, so they can deliver huge
discounts up to 90 percent. Discount vouchers for damaged goods, the use of Debit/Credit Cards,
the ability to ship products to any part of the country, a knowledge structure, and a commitment
to transparency have propelled them to the forefront of the country's e-commerce industry.