Segmentation, Targeting, And Positioning Strategy of Daraz

Daraz is an International brand mostly popular in South Asia and Southeast Asian countries.
It’sa digital platform where buyer and seller are engaged in trading, most of the marketing
strategyand marketing activities are performed digitally.
 
The method of segmentation, targeting,
and positioning (STP) is an important concept within the marketing research and work. The l
ettersSTP exists for segmentation, targeting, and positioning. The STP strategy of
Daraz is quitedifferent from other offline business.As my assigned country is Pakistan
and Bangladesh and I choose Daraz because it operates
its business in both countries as well as needs digital involvement. Another reason is both are
Muslim country so there are some similarities among both
countries.I n   t h i s   r e p o r t ,   I   w i l l   s h o w   h o w   D a r a z   i s   D o i n g   t h e i r   S T P  
i n   B a n g l a d e s h   a n d   P a k i s t a n respectively-
3.2 Market Segmentation of Daraz Bangladesh:
Daraz Bangladesh segmented its market in the dierent market variable which discussed in
the below-5 |P a g e

 
3.2.1 Geographic variables:Initially Daraz Bangladesh segmented its market with the
whole country. In 2013 when DarazBangladesh started its operation they were
trying to capture the largest market share of the E-commerce sector in
Bangladesh. However, to make the operation easier, it later divided themarket
based on the city. They concentrated primarily on Dhaka, Chittagong, Comilla, Rajshahi,and
other big, major cities. Just because of online and digital activities Daraz is
successful tograb the whole country and serving the whole nation very efficiently.3.2.2
Demographic variables:A component in the Demographic segment is age,
employment, gender, family-life cycle. Interms of age, they concentrate on selling
electronic devices primarily to the younger
generation.A l s o ,   t h e   y o u n g   g e n e r a t i o n s   a r e   n o w   c o n s c i o u s   o f   t r e n d s  
a n d   t e c h n o l o g y ,   t h e y   a r e   n o w demanding these types of products. However, on
the Daraz website I saw they have all kinds of  products and services for kinds of people.
They’ve got baby products for the elderly. It indicatesthat Daraz doesn’t not want to choose
one single segment rather they want to choose all types of segmentation. They choose all
types of individuals, in terms of family and income. Therefore,since it offers all
sorts of items from a modest budget to a very large budget, it can be assumedthat from the
upper middle class to high-income people it aims to meet all the families. The aimsof the
Daraz is to reach out the people who don’t have any internet connection.3.2.3 Psychographic
variables:This company's psychographic component is of social status, lifestyle,
temperament. It alsowants to branch out from the upper higher class to lower social class
men. two things related toone's purchasing decision. Lifestyle, taking of risk, leadership
characteristics are considered byDaraz Bangladesh. Therefore, as Daraz is a digital
marketplace, it also puts significant focus onits demographics to clarify 'who' the customer is,
psychographics tells you 'why' the buyer buys.However, it put special focus on internet
users such as Facebook, Twitter, mail users as itsimportant buyer of the goods.3.2.4
Behavioral variables:The ability, advantages, customer level, use levels, engagement level,
readiness period, andattitude toward the commodity is a behavioral factor. Daraz Bangladesh
uses purchasing
6 |P a g e
 
 behavior, use of goods, benefit sought and heavy, medium-light users.
[ CITATION Dar201 \l 1033 ]
 It does not just address heavy consumers, as this may allow possible segments to be missed.
3.3 Targeting Strategy of Daraz Bangladesh:
Daraz Bangladesh uses differentiated  marketing strategy, that is also kn
o w n   a s   s e g m e n t e d marketing. Dhaka was their first targeted city. Gradually
they have increased their customer inthe whole country. In demographic
 
segmentation, they targeted the young generation and middlet o h i g h e r i n c o m e g r o u p s
because in Bangladesh most of the internet users are the
y o u n g generation, A study showed that about 88% of users in Bangladesh is the
young generation.
[CITATION MdT18 \l 1033 ]
 They also
 
considered lifestyle and personality. Their target is certainfashion-conscious people.
They often use these periodic behavioral factors. Every year Darazintroduced all
day’s special deals including in Pahela Boishak, Valentin day, Black Friday, Eidfestival, and
so on.
3.4 Positioning strategy of Daraz Bangladesh