MARKET

TARGETING
Session 14
For all business builders with insights drawn from
collective experience of 45 years in building more
than 30 brands
Target geographical market WB
Durga Pujo- Tanishq
Mimi Chakraborty- brand ambassador of
Tanishq for the East region
■ ‘EkotaiShundor, EkotaiShokti’, is an ode to the
resilient spirit of Bengal and Bengalees
■ The campaign intended to kick start the season
of celebration and encouraged people to come
together while adhering to safety norms.
Targeting during pandemic times
Salon industry
■ DIY wax kits
■ Single use kits such as cartridge wax
■ Mani-pedi-mono-dose kits
■ Revised threading techniques to ensure beautician can
render service with mask on
■ Home salon services for those uncomfortable stepping out
New trends in market targeting
Packaged tea brands target footfalls with offline tea
lounges
■ Earlier, ‘café culture’ found its way into Indian consumers’ lives
■ The glamorous frothy caffeinated beverage now has
competition from the humble Indian chai – filled with fragrant
tea leaves and flavorful spices
■ Tea brands are going beyond selling tea leaves on grocery store
counters and are diversifying into offering offline tea drinking
experiences
Society Tea’s Tea Terminal
Wagh Bakri tea runs 13 tea lounges in
Ahmedabad, Mumbai, Delhi, Pune and Goa

■ Taj Mahal Tea House

■ San Cha Tea Boutique
Viu targets Telugu-speaking markets with
original content
■ The OTT service has partnered
with Annapurna Studios,
Tamada Media and Whacked
Out! Media for customised
Telugu content

■ Vuclip launched Viu two short

form original shows titled
'Munching with Mahathalli'
and 'Cinema Pichollo' in
Telugu
Wipro out with Giffy, a fruit & vegetable
wash
■ Wipro Consumer Care and
Lighting launched of Giffy
Fruit & Vegetable Wash with
100% naturally derived
formulation
■ While there are clear
guidelines around washing
hands, wearing face masks and
social distancing, there are
none when it comes to keeping
fruits and vegetables hygienic
and safe for consumption.
PRARTHANA - CHENNAI
Revival of a NICHE

■ Drive – in-theatre at Chennai on East Coast Road

■ Started in 1991
■ Enjoy experience apart from movie watching
■ Food ordered from a canteen nearby
■ Use of speed bumps as pillows
■ Hanging out with family/friends
■ Renewed buzz during pandemic
■ Social distancing/big screen
■ Removal of irritant of mask/can eat food
UNLOCK 4.0

■ Open air theatres operated with 100 people from

September 21, 2020
■ PVR to launch new one at BKC in October
■ Conversion of car parking lots into open air theatre
■ Sanitizations
■ Customers in car only
■ Q R code /payment on line
Critical issues

■ Marketer need to know the content to be played

■ Brand presence a MUST
■ Studio collaboration is essential
■ Warner Bros/Viacom/Disney
■ Question over long term future – post COVID
Market targeting

■ Shot gun approach ■ Spray and Pray

■ Rifle approach

■ For class or

■ For mass
Target/select a market is not complete..

■ First segment the market

■ Choose ALL?- full market coverage
■ Choose FEW?-multiple segments specialization
■ Choose ONE?- single segment concentration
■ Usually a marketer chooses a few
■ Coupled with segmentation- product differentiation
Risk involved in choosing too many
segments
■ Brand proliferation ■ Choose FEW segments
■ May lead to cannibalization of own ■ Southwest Airlines
brands
■ Definition of T G
■ Tendency to choose ever increasing
■ “those who travel”
number of new segments
■ Objective- move car driving to cities
■ TITAN – exception
to air travel
■ Many segments/many price
points/de-risking of business
Titan

■ Ending five years J V with Montblanc

■ Decision to focus on primary business and proprietary brands
■ During this challenging times, primary business must take precedence
Measurable-Cinkara from Hamdard-
T G-multi tasking super mom

■ Size
■ Purchasing power
■ Characteristics
■ Segments do not remain static
■ Need reassessing
Substantial-reposition – behind the mask
essential
■ Large and profitable enough to serve-
decorated empty nest-Pune-
PILANTU

■ Possible homogeneous group worth

targeting with a tailored program

■ Car for midgets in India- not worth

Accessible-Germ kill can be "gentle", says Dettol in an
ad for new soap variant, targeting moms

■ Must be effectively reached and

served
■ wanting to delight 'millennial
moms', who are the strictest critics,
which is why Dettol decided to co-
create a proposition with them."
(Dettol is a Reckitt Benckiser, or
RB, product.)
Differentiable

■ Segments must be conceptually distinguishable and respond differently to different

marketing mix elements and programs

■ Similar response to a deo by both- married and a bachelor

■ No different segments then
Actionable-Ola eyes 'corporates returning to work'

■ Effective programs can be formulated

for attracting and serving the
segments
■ All drivers wear masks, undergo
regular temperature checks, cars
cleaned before every ride and
fumigated thrice a week
■ There's a protective screen between
drivers and riders; part of Ola's five
layers of safety.
Market targeting
Targeting- courses for retired military
personnel
■ Must decide how many and which ones to
target. Marketers are increasingly combining
several variables in an effort to identify smaller,
better-defined target groups
■ Thus, a bank may not only identify a group of
wealthy retired adults but within that group
distinguish several segments depending on
current income, assets, savings, and risk
preferences. This has led some market
researchers to advocate a needs-based market
segmentation approach.
Porter’s five forces
Threat of Rivalry

Threat of
Threat of Substitutes
New Entrants

Threat of Buyer Threat of Supplier

Bargaining Power Bargaining Power
Evaluating and selecting target markets
■ Overall attractiveness of a segment
■ Company objectives and resources
■ Objectives :- volume or value, sales or profitability or customer
satisfaction
■ Parameters of attractiveness- size/growth/profitability/scale
economies/low risk
■ Firm’s objectives , competencies, resources
■ Segment maybe attractive/not in sync with objectives of a company
Evaluating & Selecting the Market
Segments
■ Figure 9.4: Possible Levels of Segmentation
Full market coverage

■ Serve all customers with all products they might need

■ Microsoft /Coca- cola/General Motors
■ Approach- differentiated –different products to all differentiated segments of market
■ Hall Mark cards
■ Creation of more sales than undifferentiated marketing
■ Downside- increase in cost of doing business
ADVANTAGES OF FULL MARKET
COVERAGE
■ LARGE POTENTIAL MARKET
■ LOWER COST
■ LOWER PRICES OR HIGHER MARGINS
■ UNDIFFERENTIATED COMMUNICATION PROGRAM REDUCES PROMOTION
COST
■ Undifferentiated marketing ( mass marketing)- ignore segment differences ; product
with a superior image to appeal broadest number of buyers
■ Mass distribution
■ Mass communications
■ For OnePlus, it is one-market-one-
TV mantra for now and for India this
is 55-inch OnePlus QLED 4K TV
Multiple segment specialization
■ With selective specialization, a firm selects a subset
of all the possible segments, each objectively
attractive and appropriate.
■ There may be little or no synergy among the
segments, but each promises to be a moneymaker.
Keeping synergies in mind, companies can try to
operate in supersegments rather than in isolated
segments. A supersegment is a set of segments
sharing some exploitable similarity
■ SYMPHONY ORCHESTRA TARGETING TO
PEOPLE WITH BROAD CULTURAL
INTEREST RATHER THAN THOSE WHO
REGULARLY ATTEND ORCHESTRA
Product specialization

■ Firm sells a certain product to several different segments

■ Electronic weighing machine of 1 kg
■ University laboratory
■ Bullion traders
■ Pharma industries
■ Research institutes
■ Strong reputation in a specific product area
Market specialization

■ Firm concentrates on serving many

needs of a particular customer group
■ Channel for additional products
■ Urban Company
■ With single-segment concentration, the firm
markets to only one particular segment.
■ Through concentrated marketing, the firm gains deep
knowledge of the segment’s needs and achieves a
strong market presence. It also enjoys operating
economies by specializing its production, distribution,
and promotion.
Niche

■ Captures segment leadership

■ High return on its investment
■ A niche is a more narrowly defined customer group
seeking a distinctive mix of benefits within a segment
■ Marketers usually identify niches by dividing a
segment into sub-segments
Niche - delicate blossom helps tourism bloom &
business boom

■ Sakura ( cherry blossom )

■ 3 million international visitors in
Japan posted 20 million pictures
and/or videos in 2017 getting other
visitors, both international and
domestic
■ Japan’s top tourism magnet
Niche

■ Systematic efforts of any product or service manufacturer to occupy a

specific place in the minds of the customer, through some big value
addition
• March Tee. ...
• Mr Button. ...
• Lenskart. ...
• Zivame. ...
• Caratlane.
SEGMENTS OF ONE- TATA SKY-
OWN PACKAGE
■ DATA COLLECTION AND ANALYTICS –
CATALYZER
■ INFORMATION ABOUT
CUSTOMERS,SUPPLIERS,DISTRIBUTORS
,RETAILERS
■ INDIVIDUALISING OF MARKET
OFFERING,MESSAGE,MEDIA
■ INDIVIDUALLY DESIGNED
PRODUCTS,SERVICES,PROGRAMS
One-to-one marketing
Identify your prospects and customers

Differentiate customers in terms of their needs and

value to your company

Interact to improve your knowledge about customers’

needs and to build relationships

Customize products, services,

and messages to each customer
Identification of prospects & customers
Customize message
Financial services

■ Insight-driven personalization
■ Customer attribution
■ Data management platforms
■ FinTech-enabled architecture
■ Working relationship two formerly independent
concepts: information retrieval and service delivery.