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)