SESSION 15:SEGMENTATION, TARGETING AND POSITIONING

SEGMENTATION

A market segment consists of a group of customers who share a similar set of needs and wants. The marketer’s task is to identify the appropriate number and nature of market segments and decide which one(s) to target. The major segmentation variables are —geographic, Demographic, psychographic, and behavioural segmentation. For segmentation in the Indian Context factors such as below are followed:

1.     Geographic Regions – India is a varied country in terms of consumer base. North is different than south in buying patterns so is west & east India. No particular sub - region even in one region has the same consumer characteristics in terms of buying and selling.

2.     City Size & Density – The population in a particular city or the density are also a basis on which the segmentation is done.

3.     Family Life Cycle & Gender – Family Life Cycle (FLC) & Gender are also taken into consideration when segmentation of a market is carried out.

4.     Income & Occupation – Income & Occupation are also taken into account. The income levels and the occupation the individual is in is also form a basis for segmentation.

5.     Education – Education levels of individuals are also taken into account. Whether the consumer is a school pass - out, in college, graduate, post graduate or a professional has a direct effect on the consumer buying pattern for the individual.

6.     Religion – Religious factors also play a big role in multi – cultural diverse country like India. Marketers carry out the segmentation of the market also on the socio – cultural & religious factors.

MARGET SEGMENTATION OF LUX:

Gender: female

Age- 16 to 40

Income- Middle income group 

Highest selling soap in both urban and rural areas

Affordable

Targetting 

Once segmentation of a market is done, targeting that group with the company’s product is essential. Target Market operates at four main levels – Mass Market, Multiple Segments, Single (or Niche) segment, and individuals. 

A mass market targeting approach is adopted only by the biggest companies like Lux. Many companies target multiple segments defined in various ways such as various demographic groups who seek the same product benefit. Multiple Segments are those segments which can be targeted by the companies to get a wider consumer base. Niche targeting is a recent phenomenon. Companies & Marketers have now realized that there exists a segment which is willing to buy products of a premium level provided the services offered are of a luxury level. An individual is now becoming more important to marketers as  now companies have realized that even an individual now has the potential to create or mar an image of the product by talking on new age mediums like social networking sites. Companies are now approaching individuals to consult them on the innovation which can be brought in the products. 

POSITIONING

To develop an effective positioning, a company must study competitors as well as actual and potential customers. Marketers need to identify competitors’ strategies, objectives, strengths, and weaknesses.
A company should also pay attention to latent competitors, who may offer new or other ways to satisfy the same needs. A company should identify competitors by using both industry- and market-based analyses.

Points-of-difference are those associations unique to the brand that are also strongly held and favourably evaluated by consumers. Points-of-parity are those associations not necessarily unique to the brand but perhaps shared with other brands. Category point-of-parity associations are association’s consumer’s view as being necessary to a legitimate and credible product offering within a certain category. The key to competitive advantage is relevant brand differentiation— consumers must find something unique and meaningful about a market offering. These differences may be based directly on the product or service itself or on other considerations related to factors such as employees, channels, image, or services. Although small businesses should adhere to many of the branding and positioning principles larger companies use, they must place extra emphasis on their brand elements and secondary associations and must be more focused and create a buzz for their brand.

Lux has created a good position in market, where it has become a synonym to soap. its continuous effort  of innovation has made it a market leader.