GROUP 4, MBA (S 3) CONSUMER BEHAVIOUR Low Assignment 1 High Resources Resources 1.

Under which circumstances and for what types of products should a marketer segment the market on the basis of (a) awareness status, (b) brand loyalty, and (c) usage situation? Awareness Status: The following circumstances will utilize awareness status segmentation: New entrant in market (benefit awareness). Any changes in existing products attributes (product line extention via umbrella branding/family of name branding/multi branding)

Examples of awareness status of segmentation are: Health products, supplements or FMCG will try to make consumers aware of the benefits of their products and the potential dangers of not changing the existing purchase behaviors. For eg: o Iodized salt was introduced with making consumers aware of the dangers of low iodine diets. o Minute maid pulp was a new entrant which made users aware of the fact that their product contained real fruit pulp. o Maggi atta noodles focused on making the consumers aware of the quick and healthy snack options as an option to traditional snacks/other noodles available in market. Brand Loyalty: When an organization is looking for maintenance strategy as a part of its marketing exercise, it will try to segment the market as its brand loyal. Examples of brand loyalty of segmentation are: Airlines & banks offering loyalty points to their regular customers. Mobile companies (Docomo & Uninor) offering extra talktime to old customers. Usage Situation: When an organizations is creating products suitable only for that particular occasion, i.e. it cannot or is preferred not to be used in other times, the organization segments the market accordingly for marketing of its products: Examples of brand loyalty of segmentation are: Special occasion (valentine day, new year/Christmas, rakhi/diwali) cards, gifts & decorations sold by various companies like Hallmark, Archies, Nestle Cadburys etc. Separate line of office & home furniture by Godrej Interio.

Group Members: Rahul Mukherjee, Rajat Goel, Bharathi D R & Sonam Kejriwal

2. For each of the following products, identify the segmentation base that you consider best for targeting consumers: (a) Coffee, (b) Soups (c) Cell phones, and (d) Designer sunglasses. Explain your choices. Coffee: Segmentation base: Geographic segmentation: South Indians prefer coffee than north Indians. (loose filter coffee, Indian coffee house chain) Lifestyle basis: Status seekers will prefer imported premium coffee compared to domestic beverages available for general mass. (Starbucks, Arabia etc) Benefit segmentation: Coffee flavours and health aspects are used to target benefit seekers. (flavored instant coffee mix, de-caffeinated coffee). Soups: Segmentation base: Use-related Segmentation (awareness status): Making consumers aware of the healthy aspects of soup consumptions Cell Phones: Segmentations: Benefit Segmentations: Convenience to consumers due to size, weight, ease of use etc. Eg. I ball making special phones targeting women which allow SOS calls to a number even with zero talk time. Use situation: Biz phones are targeted to executives. Eg. Phones with projector facility, blackberrys etc. Status Seekers: Special limited edition luxury cell phones are made keeping in mind the elite social class who would seek status from owning the phones. Eg: Gold plated Samsung, vertu etc. Designer Sunglass: Segmentation: Status seekers: Designer sunglasses are targeted to elite social class. Eg. VOGUE , Bvlgari, PRADA, Burberry, Salvatore Ferragamo, Versace, Dolce & Gabbanas.

GROUP 4, MBA (S 3) CONSUMER BEHAVIOUR 3. How can a marketer for a chain of health clubs use the VALS TM segmentation profiles to develop an advertising campaign? Which segments should be targeted? How should the health club be positioned to each of these segments? The VALS profile in this case is as follows: VALS Segment Pros Cons Possible Campaign Innovators Receptive to new products Skeptical of advertising Finer qualities of a healthy life style Thinkers Read widely Low interest in image Educational health related Achievers Attracted to premium products Average TV watchers Highlight premiumness of health club Experiencers Follow fashion Attend to advertising Buy on impulse Action oriented, highly fashionable Health club approach Believers Watch tv more than avg. Slow to change habits Hype health as a habit Strivers Spend on personal care Limited discretionary income Highlight personal care aspect coupled with reasonableness of charges. Mention payment option flexibility Group Members: Rahul Mukherjee, Rajat Goel, Bharathi D R & Sonam Kejriwal

Makers Shop for value Read specific magazines only Explain value additions in life after joining Survivors Brand loyal, trust advertisements Least resources Only to be pitched if very reasonable charges The segments to be targeted (in order of preference) & the respective positioning are as follows: Maker: as they look at value additions and are essentially outdoor people would be comfortable with payment. Health club would be positioned a lifetime membership home comforts personal attention and basic regular health packages. Advertisement visualization: a person who is instructed by a personal coach in swimming, then explains about complete body exercise in large comfortable uncluttered surroundings. Achievers: As they are attracted towards the premium class of the club, the health club would be positioned as a chain brand with premium offerings on various health related activities. Advertisement Visualization: a personal pampering session at the club Experiencers: As they are action oriented and ready to try new things also would have the income to support club membership, health club to be pitched as a hot and happening place where all fashion icons come to get in shape. Advertisement Visualization: Celebrity endorsement to be used Strivers: as they spend the most on the personal care even at the cost of taking credit, health club to be positioned as a complete personal care centre. Advertisement Visualization: before and after experience sharing Actualisers: As they have the most resources and would be drawn to any exclusivity of the club, the positioning should be to hype the luxury and the exclusivity.

GROUP 4, MBA (S 3) CONSUMER BEHAVIOUR Advertisement Visualization: health club luxury video.

Group Members: Rahul Mukherjee, Rajat Goel, Bharathi D R & Sonam Kejriwal