Q16 Market segmentation refers to dividing a market into several groups of
buyers on the basis of similar needs, characteristics or behaviors.
A new health drink is being launched in Punjab, the variables or strategies involved in market segmentation are- Geographic Segmentation – This refers to dividing a market into different geographical units like states, regions, countries, here, for the health drink the geographic segmentation is the State of Punjab and the various cities and districts in it. Demographic Segmentation – This refers to dividing the market into segments based on variables like age, gender, income, occupation, education, religion etc. For the company launching the New Health Drink, the various demographic segments would be age or generation (Focus more on the youth who are into working out and maintaining a certain protein and healthy diet), Gender (the segments could be health drinks for women, men or gender neutral), Income (Can have a wide range of Drinks for various income groups). Psychographic Segmentation- Psychographic or lifestyle segmentation targets customer hobbies and interests. This segmentation strategy caters to the most niche markets, where attractiveness, quality, and brand recognition are more important than price. The company launching the New Health Drink, should segment its market in a way that consumers with similar interests of having a healthy and fit lifestyle are the target market. Behavioral Segmentation- This means the market is divided into segments based on the consumers uses, knowledge, attitudes or responses to a product.
Market Positioning refers to associating and developing a mental
position in the public consciousness about your brand and its products and services. It means being able to occupy a clear, distinctive and desirable place relative to the competing products in the minds of the target consumers. Identifying possible value differences and competitive advantage- There are already plenty health drinks in Punjab, the company will have to identify and state its unique selling proposition that helps it gain a competitive advantage. The USP could be either the pricing of the drink or the taste of the drink or more protein count in the drink. Choosing the right competitive advantage- The company should study the market its entering and wisely choose the competitive advantage. It should also look at various ways to promote its drink. Selecting an overall positioning strategy – The full positioning of a brand (Value Proposition) 1) More for More – the company can provide the most upscale health drink and charge a high price to cover its high cost. 2) More for the same – the company can provide the upscale health drink for the same price as its competitors. 3) The same for less- The company can provide its regular health drinks for a discounted price. 4) More for less- the winning value proposition. The company can offer its best Health Drinks for a discounted or low price.