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DESCRIPTION
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Discussion on different brands in a product category and the segments to which they are targeted;
Toothpaste consumer segments
Firms that sell chips for cell phones (this are called DSPs) segment the market like this:
But what benefits are big and small firms looking for. It turns out that this market can be segmented (at the level of the application) as follows:
Cell phoneconsumer segments
COCA-COLA
Coca-Cola’s research found that children of working class parents prefer to GULP their drinks. Coca-Cola, and other carbonated beverages, are difficult to gulp.Segmentation response: MELLO YELLOW - THE FASTEST DRINK IN THE WEST
Auto market
There are many ways that a segment can be considered. For
example, the auto market could be segmented by: driver age, engine
size, model type, cost, and so on. However the more general bases
include:
by geography - such as where in the world was the product
bought.
by psychographics - such as lifestyle or beliefs.
by socio-cultural factors - such as class.
by demography - such as age, sex, and so on.
The Segmentation Matrix Business Battlemap is a useful segmentation tool. There are two bases for segmentation. Here we use beer brand versus ages groups. The various products are then plotted on the matrix. The result is a 'battlemap'.
THE SEGMENTATION MATRIX BUSINESS BATTLEMAP
Another example
• Originally Lite by Meisterbrau aimed at ladies - light users.
7 - 9
Positioning
• Value propositions represent the full positioning of the brand
• Possible value propositions:– More for more – More for the same – More for less– The same for less – Less for much less
Topics
Goal 4: Discuss how companies position their products
• Identifying possible competitive advantages
• Choosing the right competitive advantage
• Choosing a positioning strategy
Another example the rest of the story…
• Miller bought the brand and repositioned it for men - Heavy users.
• They fought - less filling - great taste
• And drank a lot of it!
On the following scale please place a check on the position that describes your beliefs about the brand:
Miller
Heavy taste Light taste|--------------------|--------------------|--------------------|--------------------|
Dark color Light color
|--------------------|--------------------|--------------------|--------------------| Budweiser
Heavy taste Light taste|--------------------|--------------------|--------------------|--------------------|
Dark color Light color
|--------------------|--------------------|--------------------|--------------------|
On the following scale please place a check on the position that describes your beliefs about the brand:
Miller
Heavy taste Light taste|--------------------|--------------------|--------------------|--------------------|
-10 -5 0 5 10
Dark color Light color
|--------------------|--------------------|--------------------|--------------------| -10 -5 0 5 10
Budweiser
Heavy taste Light taste|--------------------|--------------------|--------------------|--------------------|
-10 -5 0 5 10
Dark color Light color
|--------------------|--------------------|--------------------|--------------------| -10 -5 0 5 10
What segment is being
targeted?
What is the positioning?
Marketing in Action7 - 13
Exercise 1 - Use of Descriptive Variables in Segmentation
Richardson Vicks
The number of young adults age 20-24 who have skin problems now exceeds the number of teenagers with blemishes.
Segmentation response: CLEARSIL ADULT CARE
Williams-Sonoma
15 percent of its cookware customers are male. The company has been considering what to do to boost the sales of its catalogs.
Segmentation response: ______________________________________________
Heavy tasteD
ark
Co
lor
Light taste
Lig
ht co
lor
o Budweiser
O MILLER LITE
O MILLER BEER
O GUINESS STOUT
High price/oz.
Lo
w in
cal
ori
es
Low price/oz.
Hig
h in
calories
Product & Brand Positioning
(a) Product-positioningmap
(breakfast market)
Expensive
Slo
w
Inexpensive
Qu
ick
Baconandeggs
Pancakes Instantbreakfast
Coldcereal
Hotcereal
b) Brand-positioningmap
(instant breakfast market)
Brand C
Brand B
Brand A
High price/oz.
Lo
w in
cal
ori
es
Low price/oz.
Hig
h in
calories
Product & Brand Positioning
(a) Product-positioningmap
(breakfast market)
Expensive
Slo
w
Inexpensive
Qu
ick
Baconandeggs
Pancakes Instantbreakfast
Coldcereal
Hotcereal
b) Brand-positioningmap
(instant breakfast market)
Brand C
Brand B
Brand A
What position does this one occupy?
• The Night Time cough medicine
• Why --- it originally was 25% alcohol
• Antihistamines + alcohol = unconsciousness