Brand Market Analysis and Strategic Segmentation Process

Process of identifying distinct, relevant, market needs that can be best served separately than through a generic strategy

More commonly known as STP Segmentation Targeting and Positioning

What is the definition of segmentation

Process of dividing the market in fragments or

parts that have similar needs These segments are deemed to be better served separately rather than by one product or strategy

The Marketing Management Process

Assessment ends and where Segmentation

begins for new products getting into the new category For old products, a review of the current market and an assessment of the product range that covers each relevant segment. (conduct the usual market audit)

How does segmentation REALLY EVOLVE

Demystifying all the myths about this process

Once upon a time in LaLa Land

The guru discovered, during a hot summer

day, that by placing dark colored cellophane in his eyes, it made his eyes. So he went back to his lab and tinkered and placed colored cellophane on his glasses. And viola!!!! Sunglasses!!!!
Am I a genius or what. =) - Guru

Business person yata si guru

He made one model and sold the model to

everyone in the market. Everybody loved the product and everybody bought the new GURU shades (me tagline pa. To be a guru, you have to look like one =P naks!)

The sales were brisk and Guru made a fortune

Next time makita nyo si Guru palibre kayo. =D

But there were greedy people from the LaLa Land

and is envious of Guru Shades. One of them is Mr.Clean

Mr. Clean was studying carefully

I have two options To come up with a better designed pair of shades Or to come up with a shades that is cheaper. He went up to 5th floor library for two years and

thought about his idea.

But lo and behold

Fairy Godmother Ming was joyfully flying

through the halls of LaLa Land and saw Mr. Clean, problematic, pragmatic and in deep thought. FGM landed and asked MC what his problem is. FGM simply said that in a market with a new product, there would always be space for everyone.

BLING!
MC is now enlightened

MC decided to attack
Target the same market as Guru shades but I

would price my product a bit lower. This would enable MC to capture market share
Naks low price strategy si MC me lahing

Chinese din pala

MC did earn his share. He is the owner of 35% the market Guru Shades is left with 65%

And the plot thickens

MC is aggressive Guru is upset . (umuusok ang ilong at umiitim

ulit ang buhok) And more people are looking into the category as the summer heats up!!!
New player comes in with lots of cash to

dispense and lots of wits..

Sister Shades!!!!!!
How did Sister Shades got the idea?

Simple
Guru Shades and Clean Shades looks the same.

With minimal marketing strategy know how, they thought one product could fit all Sister Shades tried the Guru shades and Clean shades and she was disappointed. Hindi sya beauty sa shades na yun. =P

CheCheng!!!
Idea came from her own that there is a space in

the market that would appreciate better looking shades and this would be the female market Mas kikay Mas beauty

And then there were others

Shades for the elite

Shades for the yuppies

Shades for babies Shades for oldies (mataas ang grado at baduy)

wehehehe

The end of it all.

Gurus share is now only 2% and the shades market is cluttered by as much as 500 market players

Segmentation Process EXISTING PRODUCTS

Integrate ideas in Consumer Behavior Analysis.

Draw out market sizing and existing competitor

profile in each segment Formulate a SWOT analysis based on the relevant market segments

Three Approaches in Market driven strategy

Mass Marketing Cater to all Target Marketing Select segment or group of segments that has the same needs and wants Niche Marketing Select one segment and choose to compete strongly (usually a very small segment)

Corned Beef Example

Argentina caters to the mass market Class A, B, C and D The product and the brand appeals to a very

broad range of consumers Marketing efforts are concentrated in appealing to the masses And below the line efforts are used to target specific segments

Niche Marketing
Choosing a segment and specializing in it

Kink Cakes chose to specialize on special

event pastries Goldilocks and Red Ribbon competes for the mass market specifically A, B and C Jonis goes for the C and D Julias Bakeshop targets and lower C and D

Profiling
Process of identifying market segment user

characteristics User segment can be DESCRIBED IN 3 WAYS

DEMOGRAPHIC BEHAVIORAL PSYCHOGRAPHIC

Demographic
Segmentation based on their personal statistics
Age Gender Social economic class Occupation

Example
Gun market Hunters Police Hobbyists Hobbyist could further be segmented into the

following

Young Old Rich Richer

Behavioral Segments
How the consumers use the product or the rate

they use it.

Rate of usage User state Place of usage Type of industry

Example
SmokerDrinkers
Heavy drinkers Social drinkers Non drinkers

Smokers
Chain smokers Social smokers Pretending to be smokers

Psychographic
What they think of themselves when they use the

product What are they thinking prior to purchase What they think of themselves in relation to the product

Examples
Weight conscious

Health conscious
Critical In Discriminate taste

Example of a Market Driven Segmentation Approach

Entry level drinkers Advanced drinkers Teenagers Adventurous, individuality search More money to spend, pre disposed to try. Social Drinker

Yuppies

Sophisticated

Executives

Care about image. Ego

Want to enjoy life with good health through healthy lifestyle

Health Drinkers

Retirees

Market Segmentation Process for NEW PRODUCTS

Find the most dominant segmentation base

drivers
Cars = Socio economic segmentation Clothes = demographics -> economic

Description of segments through other brand

segmentation bases
Demographic => Behavioral / Psychographic

Step #2: SWOT for each

Analyze the segments by formulating a SWOT

analysis for each segment Implement a CPM for each segment

A Brand B

Next Steps
Choose the segments where you would have the

best chance of winning Target that segment for the following reasons

Best chance to win Most profitable Most strategic Stop gap measure

Targeting is a decision.
Market Targeting is a process of allocation of

company effort and resources towards a certain market segment. Targeting is a match between the companys products and services and the inherent NEEDS AND WANTS characteristics of the target segment WRONG TARGET. LOW PROBABILITY OF SUCCESS.

Types of target market

Multiple segments
Especially if the needs are homogenous

Single segment Primary target market (PTM)

Main focal point of all marketing programs

Secondary target market (STM)

Used only as a consideration for marketing

programs

After Targeting..
POSITIONING!!!!!!!!!!!!

Positioning Preface
Conjoint Analysis
Measurement of importance attributes relative to

category
Competitive Importance Attributes Analysis
Drawing of perceptual map per product attribute

analysis
Positioning

Conjoint Analysis Example

Ballpens Attributes deemed as important Point sharpness Smoothness in writing Ink color how dark is the ink Barrel and design
Positioning should be based on an attribute that is

solely your brands

Positioning
Main strategic point of the marketing management process

Own a word in the consumers mind

Promil? Gifted Colgate = Flouride Polo = Mint with a hole KFC = Chicken Volvo = Safety

How is positioning done

After choosing the target segment Evaluate competition Choose a USP (Unique Selling Proposition) - the

difference you choose to communicate to your market. Missing word is Sustainable Coin this into a positioning statement Generate a slogan (work of the ad agency)

Why is Positioning important?

Create a distinction between our brand and its

competitors Reason for buying Serves as a guide for marketing mix execution

Examples:
Flouride and healthy teeth for the family

White teeth, fresh breath for the young

Cheap

Global brand

What happens if you are not differentiated?

What happens if you are too differentiated?

Not mass market Differentiated and focused market

What is Positioning?
Creating a distinct and relevant differentiation

between the brand and its competitors Key words

Distinct being different Relevant difference being important

Distinct
Does not resemble another brands position
Based on actual product or corporate

differentiation and core competence Advantage should be sustainable and cannot be copied by competitors Advantage means that the company can do it best.NO OTHER BRAND CAN DO IT BETTER Not based on a basic product promise
Lasang Orange Talaga tagline for Orange juice Natural -- BETTER!

RELEVANCE
The advantage / positioning should be:
Important to the target market Wanted by your target market It is would be bought by your target segment due to

this positioning Intention to buy is important

Positioning alternatives
Price We are cheaper

Product attribute What the product has or

what they can do (Colgate with 2 flouride) Product category Were a different animal Product Source coming from a place where it is known (Pampanga Tocino) User Segment we belong to a different market (Gatorade Sports Drink) Benefit what they can get from the product Against competition

Cheaper Positioning

Not necessarily cheaper but best value for money

Product Attribute

At first it was differentiated according to the beer having less calories Then all the brands followed.

Product Category

Now it is differentiated as a whole new category But within this category, they still have to position among themselves

Product Source
Or you brands that gloats with New Zealand Milk, American made, German sausages, Batangas beef etc The Philippines has a very strong Ice Cream equity

User Segment
Where celebrities work out

For the people who know. Sa mga nag tagumpay Can be used as a snob appeal

Benefit

Whiter Skin

Younger Skin

Mintee
Mint Candy (obvious ba)

Last for 16 hours in your mouth

Dries fast (recyclable) No sugar Good for your teeth dental supplement

attributes Slogan making contest

Samples
Its mint to be

Pwedeng ibulsa hanggang bukas

Mintee Ngayon at Bukas

Slogan winning entries

G. Alfaro and J. Santos Laquian and Carandang Cabrera and Ong Sexy, Fresh, Have it All Huang and Eia Santos, Impossible to be Real Dator and Javier Sinless Mint

Complete with justification and rationale Not the correctness of the positioning but the

route towards the correct slogan

The right positioning route

Segment the market y studying consumers

extensively Analyze the competition and the environment Choose a position that is unique and valued by competition Communicate this differentiation

Top 5 answers are on the board

Each pertains to the brand with various

associations Based on a survey conducted on 100 people Here are the results

SPRITE

Clear Sweet Fun

54 39 17

Sunsilk

 Girl

52

Power / Success
Affordale / Cheap

Black / Colored

35 10 7

Assumption / Assumptionista

Sosyal / rich English Speaking

27

25 Smart / Intimidating 20 Party / Fun 15

Case: Assumption Natives

Products: Turon Bibingka Puto Etc

Consumer Segments and description

College
Looks sosyal and snobish Age range from 17 to 23 Budget is not a concern Good taste and patronizes the products that taste

good rather than the brand Price conscious

High school
Impulse buyers

Rich kids
Brand conscious Limited time to go to canteen and eat Used to grand lifestyle Fun loving Quite proud of being Assumptionistas

Grade School
Limited budget

Limited time
Rich kids Product loyal and brand loyal Friends are the best influencers

Task..
Provide the target market and positioning of this

product Name your product - Brand Make a product description of your brand Study the competitors of your target segment Make a positioning proposal