Segmentation, Targeting, 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 Amul. 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.

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

Hollistic Marketing

A marketing strategy that is developed by thinking about the business as a whole, its place in the broader economy and society, and in the lives of its customers. It attempts to develop and maintain multiple perspectives on the company’s commercial activities.

“A holistic marketing concept is based on the development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and interdependencies. Holistic marketing recognizes that ‘everything matters’ with marketing and that a broad, integrated perspective is necessary to attain the best solution. Four main components of holistic marketing are: relationship marketing, integrated marketing,  internal marketing, and socially responsible marketing.”

GCMMF is not just another organisation growing profitably, it has played a major role in supplementing the income of its producer- members, in empowering women and in providing comprehensive health care for both human beings and animals. they believe in helping the local farmers in not only giving jobs but to increase overall development.

Organization Buying

Organization buying: 

Organization buying is the bulk buying that an organization does for resale or manufacturing purposes.
In Amul,Dairy Cooperatives in Gujarat have created an economic network that links more than 3.1 million village milk producers with millions of consumers in India. These cooperatives collect on an average 9.4 million litres of milk per day from their producer members. Since the raw material for dahi is milk, this is the only item that is bulk bought.
Another example  are the retailers that buy Amul Dahi in bulk to sell in their shop. Bulk buying helps in getting the buyer better and cheap prices for that product.

Also it helps Amul because they sell large volumes of butter. For example: Amul sells its small 200gm packs to airlines or railways in huge numbers, hence it helps Amul in terms of volume, it also helps the buyer because since they require only small quantity, these packs are perfect for them. Overall its a win-win situation.

Sales Management

SALES MANAGEMENT

Sales management can involve any of the following activities: 

(1) formulation of sales strategy through development of account management policies, sales force compensation policies, sales revenue forecasts, and sales plan,

 (2) implementation of sales strategy through selecting, training, motivating, and supporting the sales force, setting sales revenue targets, and

 (3) sales force management through development and implementation of sales performance, monitoring, and evaluation methods, and analysis of associated behavioral patterns and costs.

For Amul, sales are typically in the retail stores. The consumer just has to ask for that particular Amul product in the retail shop or if its a super market he just has to locate it and buy it.

Amul also has some franchisee shops that offer typically only Amul products.

Distribubution Channels

Distribution Channels

f we mention in a single sentence the distribution channel is nothing but it is a process of transfer the products or services from Producer to Customer or end user

Types of Distribution Channels

1.Intensive distribution - Where the majority of resellers stock the 'product' (with convenience products, for example, and particularly the brand leaders in consumer goods markets) price competition may be evident.
2. Selective distribution - This is the normal pattern (in both consumer and industrial markets) where 'suitable' resellers stock the product.

3. Exclusive distribution - Only specially selected resellers or authorized dealers (typically only one per geographical area) are allowed to sell the 'product'.

IMC, ATL , BTL

  

Integrated Marketing Communications

Integrated Marketing Communications is a simple concept. It ensures that all forms of communications and messages are carefully linked together.
At its most basic level, Integrated Marketing Communications, or IMC, as we'll call it, means integrating all the promotional tools, so that they work together in harmony.
As defined by the American Association of Advertising Agencies, integrated marketing communications " ... recognizes the value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines advertising, public relations, personal selling, and sales promotion and combines them to provide clarity, consistency, and maximum communication impact."

Benefits of IMC
Although Integrated Marketing Communications requires a lot of effort it delivers many benefits. It can create competitive advantage, boost sales and profits, while saving money, time and stress.
IMC wraps communications around customers and helps them move through the various stages of the buying process. The organisation simultaneously consolidates its image, develops a dialogue and nurtures its relationship with customers.

ATL and BTL 

Above the line (ATL), below the line (BTL), in organizational business and marketing communications, are advertising techniques, or different strategies companies use to sell their products.

In a nutshell, while ATL communications use media that are broadcast and published to mass audiences, BTL communications use media that are more niche focused. While both ATL and BTL communications can be used to either build brand awareness or drive sales through specific offers (promotions), it is BTL communication that gives the marketer the ability to tailor their messaging in a more personal manner to the audience

ATL advertising uses mass media as a medium to promote brands and reach out to target consumers. this kind of advertising is usually aimed towards a large number of audiences and is much more effective, when the target group is very large and difficult to define.

BTL advertising follows an unconventional and direct form of marketing communication. these include activities such as distribution of pamphlets, handbills, stickers etc. this form of advertising is more direct.

Amul uses a varied form of ATL advertising such as billboards and TV ads

Pricing Decisions

PRICING DECISIONS

Pricing is the process of determining what a company will receive in exchange for its products.

Traditionally Price has been a major determinant of a buyers choice.

Consumer Buying Psychology: 

Reference Prices:  Consumers have fairly good idea of the price range of a product, but rarely do they recollect the exact price. When examining a product, consumers often employ Reference Prices, where the compare the observed price to an internal reference price. 

For example  : Britannia curd is priced at Rs. 40/- for 400gm and Amul dahi  is priced at Rs. 35/- for 400 gms. So the price range that a buyer will have in his mind will be somwhere in between 30 and 40. Hence the company has to price the product in this range, taking into consideration the competition, its profits etc.

Price- Quality inferences: Many consumers use price as an indicator of quality. Some brands adopt exclusivity and scarcity as a means to signify uniqueness and justify premium pricing. For ex:

Watches, perfumes etc.

Price cues: Many sellers believe that prices should end in an odd number because for example: many customers see an amplifier priced 2999/- in the range of 2000/- rather than rounding it off to

3000/-

But prices ending in 5 or 0 are easier for the customer to process and retrieve from memory.

Also the sign of SALE next to a price is shown to spur demand if not over done. Even limited availability (3 days only) is seen to have spurred sales.

Pricing for Amul Dahi

At the time Amul was formed, consumers had limited purchasing power, and modest consumption levels of milk and other dairy products. Thus Amul adopted a low-cost price strategy to make its products affordable and attractive to consumers by guaranteeing them value for money.Despite competition in the high value dairy product segments from firms such as Hindustan Lever, Nestle and Britannia, GCMMF ensured that the product mix and the sequence in which Amul introduces its products is consistent with the core philosophy of providing butter at a basic, affordable price to appeal the common masses. This helped AMUL DAHI to create its brand image in the household sector of the society.

400gm

• Cup - Rs. 29.00

• Pouch - Rs. 16.00

200gm

• Cup - Rs. 15.00

• Pouch - Rs. 09.00