Pillars of marketing

PILLARS OF MARKETING – STPD Strategies

Marketing Management V.S.Ramaswamy and S. Namakumari

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Formulation of Marketing Strategy consists of four steps STPD

(b) Targeting

(a) Segmentation

Serves as a prelude to target market selection. It brings to fore the various possibilities lying in a heterogeneous market

The target market that is arrived through segmentation shows to whom the unit intends to sell the product

Process by which a market is divided into distinct subsets of customers with similar needs and characteristics that lead them to respond in similar ways to a particular product offering and marketing programme

Requires evaluating the relative attractiveness of various segments in terms of 1. market potential 2. growth rate 3. competitive intensity

Positioning shows how ---using what uniqueness the unit intends to sell the product

Entails designing product offerings and marketing programmes that collectively establish an enduring competitive advantage in the target market by creating a unique image or position in the consumers mind

(c) Positioning

(d) Differentiation

Positioning shows how ---using what uniqueness the unit intends to sell the product

Works on the principle that a firm can make its offer distinctive from all competing offers and win through distinctiveness

Targeting attractive market segments

The need for market segmentation and target marketing

Defining market segments

Choosing attractive market segments

Different targeting strategies

STRATEGIC CHALLENGES

(a) Segmentation

• Market segmentation is the process of dividing a market into Market segmentation is the process of dividing a market into sub-sets of consumers with common needs or characteristicssub-sets of consumers with common needs or characteristics

• Since most companies have limited resources, few companies Since most companies have limited resources, few companies can pursue all of the market segments identifiedcan pursue all of the market segments identified

What is market segmentation ?

Why segment the market ?

•Facilitates right choice of Target properly

•Facilitates effective tapping of the chosen market

•Makes the marketing effort more efficient and economic • Helps identify less satisfied segments and concentrate on them

PREMISES OF MARKET SEGMENTATION

IDENTIFICATION OF CUSTOMERS IN TERMS OF SOME IMOPORTANT CRITERIA

A

EACH MARKET SEGMENT CAN BE MEASUREDAND EVALUATED IN TERMS OF MARKET

ATTRACTIVENESS

B

ISOLATE THE SELECTED MARKET SEGMENTC

NEED FOR MARKET

SEGMENTATION

It identifies opportunities for new product

development

It helps in the design of marketing programmes

It improves the strategic allocation of marketing

resources

Bases for segmentation

Buying Behaviour Psychographics

Socio-culturalsDemographics

Geographics

MARKET SEGMENTATION

GeographicSegmentation

National Markets

Global Markets

Factors

Region State District Urban Rural

Continent Country Region

Climatic Zone

As long as there are clearly identifiable differences between one region and the other, with implications to marketing, geographic segmentation will be useful

Geographic Descriptors

METROSSMALL TOWNSRURAL AREAS

Hence segmenting markets on the basis of geographic locations as

..... sales potential ….. growth rates ….. customer needs ….. cultures ….. service needs ….. competitive structures

Different locations vary in

DemographicSegmentation

Race Religion Community Language Age Gender Marital Status Family size Occupation Income Purchasing capacity Educational level Social status

Demographic Descriptors

Age Nike’s clothes for children

Gender Advertising and events directed towards women

Advertising magazines targeting the rich

Products for working women

Travel, books, magazines, etc

Birthdays, anniversaries, weddings

Income

Occupation

Education

Events

Household lifecycle

Each stage differs in spending pattern

Socio-cultural Segmentation

Culture Social factors

Brings its own pattern of social

conduct

Which influences consumer behaviour

Manifests in the form of Symbols, heroes/icons, rituals

and values

Social groups of varying types exert influence on the consumers

A buyer is a member of several groups both formal and informal

Reference Groups : Intimate groups, Secondary groups, Opinion leaders,

Social class

Cultural Descriptors

Religion

Language

Education

Upbringing

Income

Occupation

Location of residence

Social Descriptors

Development son the global socio-cultural scene

--- The Techno Intoxication of consumer communities

--- Spread of consumerist culture and Americanization

--- Pace of life gets even more rapid

--- The new iGen and New Tweens

--- The advent of the next society

Psychographic Segmentation

Lifestyle Attitude Self-concept Value system

Based on

Facilitates grouping of consumers in such a manner that the group shares a common buying behaviour e.g. Coffee Cafes thrive on Lifestyle segments

Certain cars are sold on lifestyle segment

Psychographic Descriptors

Attitude

--- Timid--- Outgoing--- Aggressive--- Traditional--- Modern

Lifestyle

Buyer Behaviour Segmentation

… Usage status

… Benefits sought from the product

… Volume of purchase/degree of use

… Purchase occasion

… Buyers attitude towards the product

… Their loyalty to the brand

Usage based segmentation

Currently users of the brand

Currently users of competitors brands

Currently non- users of the category as such

Sustain them and make them use more of the brand

To succeed here , he should be able to convince those users about the superiority of the brand

The marketer would attract this segment towards its brand

Benefit segmentation

Segmenting market on the basis of benefits expected by the consumer

Marketer provide value in the form of benefits

Helps the marketer identify segments that are presently less satisfied and are experiencing a big gap between the benefit sought and benefit available

E.g.“Calorie watchers” and “health seekers”

PEPSI : Diet Pepsi Horlicks : Diet Horlicks Mother Dairy : Low calorie ice cream Bread : Whole wheat/Brown bread

BENEFIT SEGMENTATION

TOOTH PASTE

GENERAL BENEFITS THAT CONSUMERSSEEK ARE CLEANLINESS AND HYGENE

IN ALL SEGMENTS.

FLUORIDE HERBALCOSMETIC

Protection Against FoulSmell, Modernity &

Cosmetic Value

COLGATE CLOSE-UPPRUDENT

Family Health, ExtraProtection For

Children

COLGATE FLUORIDECIBACA FLUORIDE

Family Health and Welfare. Traditionally

Good For Health

NEEMDABUR

VAJRADANTI

PERCIEVED BENEFITS

MOTOR CYCLE

BRANDS

PERCIEVED BENEFITS

ENFIELD STURDY VEHICLEFOR OUR ROAD CONDITIONS, GOOD FOR LONG RIDES AND HIGH RESALE VALUE

HERO-HONDA FUEL EFFICIENT, HIGH PICK UP AND STYLISH

KAWASAKI BAJAJ

HIGH PICK UP SLEEK MODEL

SCOOTER BRANDS

PERCIEVED BENEFITS

BAJAJ CHETAK FUEL EFFICIENT, LONG LIFE , HIGH RESALE VALUE

KINETIC HONDA ELECTRONIC IGNITION, EASY TO RIDE, TROUBLE FREE

Volume segmentation

Quantity of purchase --- actual or potential is the base for volume segmentation

… Bulk buyers … Small-scale buyer … Regular buyers … One-time buyers

Purchase occasion segmentation

… Regular buyers… Occasion based buyers

Attitude towards the product segmentation

… Enthusiastic … Indifferent… Negative

Loyalty to the brand

Extent of brand loyalty on the part of consumers could be a segmentation base under buying behaviour

Behavioral Descriptors

Consumer

needs

Benefits sought

Choice criteria

Toothpaste

….. Fresh breath….. Sparkling white teeth….. Ayurvedic

Washing machines

….. Front loading ….. Top loading ….. Automatic ….. Semi-automatic

Consumer

needs

Organizational markets

Product performance in different situations

Computers

….. On time delivery….. Credit terms….. Economy….. Spare parts….. Availability….. Training

Industrial Products

Product related


Product usage

Loyalty

Purchase predisposition

Purchase influence

Heavy usersKey

accounts

Patronage of a particular product

Loyal customers

Knowledgeable non users

Likely to become future users

WifeHusband - wifeChildrenFriendsDoctors

Children‘s products drugs ,etc.

General Behaviour


Lifestyle Social class

Reflected by

Activities Interests Opinions

Includes

Helps to infer what types of products & services appeal to particular groups and how to communicate with individuals in

the group

Status groups based on

Income Education

Occupation

Helps to infer certain behaviour concerning a given product


Organizational/Firm

Purchasing Structure Buying Situation

Centralized Purchasing

Decentralized Purchasing

Global basis Cost saving Minimum risk

Product quality Quick delivery Less cost conscious

1. Straight rebuy: routine situation2. Modefied rebuy: change in some element3. New buying situation: requires considerable situation & evaluation of alternative suppliers

Realities of the market place which necessitate market segmentation

First

Second

…. Population growth has slowed down …. More product markets are maturing …. More intense competition …. Firms seek growth via market share/brand extension

…. Expanding disposable income …. Higher educational levels …. Greater awareness …. Sophisticated needs, tastes & lifestyles

ThirdNew technology such as computer aided designs has enabled many firms to mass customize many products …. Different models of cars on the same production line

FourthEasier to implement sharply focused marketing programmes by more sharply targeting their own services ….. Magazines, TV channels

HOW ARE MARKET SEGMENTS DEFINED

Demographic Descriptors

Geographic Descriptors

Geodemographic Descriptors Behavioral Descriptors

Segmentation Criteria

CHOOSING ATTRACTIVE

MARKET SEGMENTS

(The NIKE Case)

CHOOSING ATTRACTIVE MARKET SEGMENTS

STEP 1 Select market attraction & Competitive –position factors

Market attract-iveness factors

… Consumer needs & behaviour

… Market or market segment growth size

… Macro trends..favourable ?

… Opportunity for competitive advantage

… Firm and competitor capabilities & resources

… Attractiveness of industry in which to compete

Competitive – position factors

STEP 2 Weigh each factor

Assign numerical weight to each factor indicate its relative importance in the overall assessment…. (NIKE)

Weight Rating(0 – 10 scale

Total

MARKET ATTRACTIVENESS FACTORS

Customer needs & behaviour .5 10 5.0

Segment size & growth rate .3 7 2.1

Macro trends .2 8 1.6

TOTAL: 1.0 8.7

COMPETITIVE- POSITION FACTORS

Opportunity for competitive advantage .6 7 4.2

Capabilities & resources .2 5 1.0

Industry attractiveness .2 7 1.4

TOTAL 1.0 6.6

STEP 3 Rate segments on each factor; Plot results on matrices

Collect qualitative & quantitative data ( through marketing research) to objectively assess each of the criteria identified in step 1… ( NIKE )

Market Attractiveness

High ( 8 – 10)

Moderate ( 4 – 7)

Low ( 0 – 3)

Company’s Competitive Position

High ( 8 – 10)

Moderate ( 4 – 7)

Low ( 0 – 3)

.

STEP 4 Project future position of each segment

Determine how market’s attractiveness is likely to change over the next 3 to 5 years by assessing

…. Shifts in consumer needs & behavior …. Entry or exit of competitors…. Changes in their strategies

…. Changes product/process technology…. Shifts in economic climate…. Impact of social political trends…. Shifts in bargaining power of customers

MARKET SEGMENT FOR CARS

A / Entry level/Budget segment

B / Compact segment

C / Family/Mid segment

D / Premium/Executive Sedan segment

E / Super luxury segment

CAR SEGMENT ATION BASED ON LIFESTYLE

CORSA ..”The Achtung Baby”In “C” Segment GM tapped the lifestyle oriented Indians – the rich, successful, young and sophisticated termed “Yuppie Indians” who were keen to make a statement bout their position. It built a lifestyle oriented image for CORSA

FORD IKON ..”The Josh Machine Baby”In “C” Segment FORD targeted the “Yuppie Indians” and classified it as the “Young at heart” segment and incorporated a number of attributes that would appeal to this segment . It was a car with best of looks and good vehicle dynamics

MARUTI S X 4MARUTI’s lifestyle pitch :Pure power, Pure muscle, Pure adrenaline, Pure style, Pure man. The new S X 4 - the man amongst the cars -- is here

S X 4 – MEN ARE BACK

MARUTI ALTO VXIn “B” Segment Maruti built lifestyle imagery around ALTO. Its themes were ; “It is the hottest thing” and “ALTO for the couple”

TARGETING STRATEGIES

Market targetingMarket targeting

• Is selecting one or more of the segments identified for the Is selecting one or more of the segments identified for the company to pursuecompany to pursue

• A target market is a group of people or organizations for which A target market is a group of people or organizations for which a company designs, implements, and maintains a marketing a company designs, implements, and maintains a marketing mix intended to meet the needs of the group resulting in mix intended to meet the needs of the group resulting in mutually beneficial and satisfying exchangesmutually beneficial and satisfying exchanges

Steps in choosing the target marketSteps in choosing the target marketIllustration of Bath SoapsIllustration of Bath Soaps

Step-1

Quick analysis : of the bath soap market will reveal two broad segments:i)The premium segmentii)The popular segmentThe firm has to decide which segment to enter. It has toevaluate the segments, assess their compatibility with thefirms ambition, resource and capabilities

Step-2

Evaluating the two segments: i)Is it sizeableii)Is it growingiii)Is it profitableiv)Is it accessiblev)Is it compatible with the firms ambitions, resources and capabilities

PATTERNS OF TARGET MARKET SELECTIONPATTERNS OF TARGET MARKET SELECTION

Single Segment Concentration

Selective specialization

… Number of segments … Each objectively attractive and appropriate … Each promises to be a money maker … Advantage of diversifying the risk

… Concentrated marketing …Strong knowledge of the segment’s needs … Achieves strong market presence … Enjoys operating economies through specialization in production, distribution, promotion

Small Car Market

Sports Car Market

Radio Broadcasting

PATTERNS OF TARGET MARKET SELECTIONPATTERNS OF TARGET MARKET SELECTION

Product specialization

Market specialization

The firm makes a product that sells to all the segments e.g.

… University … Government

… Commercial laboratories The firm makes variations of the same product for different consumer groups

Microscopes

Products required by university laboratories

The firm concentrates on serving many needs of a particular customer group

The firm gains a strong reputation in serving this customer group and becomes a channel for additional products the customer group can use

Full Market Coverage

The firm attempts to serve all customer groups with all the products that they might need

IBM(Computers)

General Motors(Vehicle Market)

Coca-Cola(Drink Market)

Undifferentiated marketing

Differentiated marketing

Large firms can cover a whole market in two broad ways

Undifferentiated marketing

The firm ignores segment differences and goes after the whole market with one offer

It designs a product and marketing programme that will appeal to the broadest number of buyers

The firm ignores segment differences and goes after the whole market with one offer

It relies on mass distribution and mass advertising

It aims to endow the product with a superior image in people’s mind

The narrow product line keeps down costs of:

R & D

Advertising

Production

Inventory

Transportation

Marketing Research

Product Management

Differentiated marketing

Firm operates in different market segments and designs different products for each segment

General Motors produces cars for;

PursePurpose

Personality

IBM offers many hardware and software packages for different segments in the computer market

Targeting failuresTargeting failures

Levi’s

It had defined its target market as college students in the age group of 15 to 25 years

Levi’s had assumed that a sizeable group of this description would be able to afford the price tag of Rs. 999 to Rs.2,295 willing to buy the jeans at those prices

The number of consumers who could afford the price tag was far less then they had assumedLevi’s failed to define correctly what constituted its target market and what constituted its size.


Reebok

Reebok entered India, aiming at the segment with Rs.5,00,000 plus annual income that was generally referred to as high end segment of the Indian footwear market with the price tag between Rs.1300 to Rs.6,500. Volumes were not forthcoming.

Reebok shifted to the next lower segment and introduced its new range CLASSIC, at a comparatively more affordable price of Rs.900 per pair. Sales picked up.


Pierre Cardin

It misconstrued the well to do among the Indian middle class as its target

The brand image strongly associated with exclusive apparel the targeting became totally faulty. It was a super luxury apparel brand

The middle class dare not look at a gown that costs Rs.2000 plus, the super affluent found the price too low for their status

The very idea of a classy French Label at affordable prices – was a contradiction in terms, a contradiction with the brands perceived luxury position

POSITIONING STRATEGIES

PositioningPositioning

Is developing a distinct image for the product or service inIs developing a distinct image for the product or service in

the mind of the consumer, an image that will differentiate thethe mind of the consumer, an image that will differentiate the

offering from competing ones and squarely communicate tooffering from competing ones and squarely communicate to

consumers that the particular product or service will fulfillconsumers that the particular product or service will fulfill

their needs better than competing brands their needs better than competing brands

5151

Positioning-principlesPositioning-principles

• 1) Communicating the benefits that the product will provide 1) Communicating the benefits that the product will provide rather than the product’s features (consumers do not buy drill rather than the product’s features (consumers do not buy drill bits-they buy ways to make holes)bits-they buy ways to make holes)

• 2) Because there are many similar products in any market 2) Because there are many similar products in any market place, an effective positioning strategy must develop and place, an effective positioning strategy must develop and communicate a ‘unique selling propositiocommunicate a ‘unique selling proposition’n’

• 3) Most new products introduced by marketers( new flavors, 3) Most new products introduced by marketers( new flavors, sizes) fail to capture a significant market share and are sizes) fail to capture a significant market share and are discontinued because they are perceived by consumers as ’me discontinued because they are perceived by consumers as ’me too’ products lacking a unique image or benefit too’ products lacking a unique image or benefit

MARKET POSITIONING

AFTER IDENTIFYINGTHE TARGET MARKET

THE MARKETER POSITIONSTHE PRODUCT/SERVICE IN THE TARGET CONSUMERS

MIND

BY CREATING AN IMAGE INTHE CONSUMERS MIND OF

THE PRODUCT/SERVICE

SINCE CONSUMERS USE IMAGES WHILE PURCHASING

A PRODUCT/SERVICE

BRANDS HAVE A POWERFULINFLUENCE ON CONSUMERS’

MINDS

THE MARKETER GENERALLYUSES ADVERTISING TO BUILDA BRAND/CORPORATE IMAGE

ADVERTISING IS USED TOMOULD AND REINFORCE THE BRAND CORPORATE

IMAGE

POSITIONING STRATEGIES

HEALTHDRINK

MARKET

COMPLANCOMPLETE PLANNED

FOOD

HORLICS“THE GREAT

NOURISHER” WITH EXTRA CALCIUM

BOURNVITA

“HEALTH STRENGTH & ENERGY” CONTAINSPROTEINS, VITAMINS

MINERALS CARBOHYDRATES

BOOST ENERGY AH ENERGY

VIVA “DOUBLE ACTION DRINK”

Sl.

No

POSITIONING STRATEGY

DEFINITION ADVERTISING CLAIMS

1. POSITIONING CUSTOMER BENEFITS

IT ASSOCIATES A BRAND/PRODUCT WITH

CUSTOMER BENEFITS

THE STRATEGY IS MORE COMMON IN ALL THE PROIDUCT CATAGORIES. ADVERTISING CLAIMS A BENE FIT

2 POSITIONING BY PRICE, QUALITY

A PRODUCT OR SERVICE IS HIGHLIGHTED IN TERMS OF SERVICE, FEATURES OR PERFORMANCE – A HIGHER PRICE TO COMMUNICATE THAT THEY PROVIDE QUALITY

ADVERTISING CLAIMS VALUE FOR MONEY

APPROACH TO POSITIONING STRATEGIES


3 POSITIONING BY APPLICATION

ASSOCIATING THE PRODUCT OR SERVICE

WITH A USE OR APPLICATION

ADVERTISING CLAIMS THE USE OR APPLICATION OR SERVICE

4. POSITIONING BY PRODUCT USER

ASSOCIATING THE OR SERVICE WITH A USER OR CLASS OF USERS

ADVERTISING CLAIMS THAT CINE STRARS OR SPORTS STARS ARE USING THE PRODUCT


5. POSITION BY

PRODUCT CLASS

ASSOCIATING THE PRODUCT OR SERVICE

IN A PARTICULAR PRODUCT CLASS

ADVERTISING CLAIMS WORLD CLASS

PRODUCTS

6. POSITIONING BY CULTURAL SYMBOLS

ASSOCIATING CULTURAL SYMBOLS WITH THE PRODUCT OR SERVICE TYO DIFFERENTIATE FROM COMPETITORS

ADVERTISING CLAIMS AS ROYAL

7. POSITIONING BY COMPETITOR

ASSOCIATING WITH

COMPETITOR PRODUCT BRAND BY COMPARISION

ADVERTISING CLAIMS COMPARES WITH COMPETITORS BRANDS

DETERMINING THE COMPETITIVE POSITIONING STRATEGY

STEP-I IDENTIFY THE STRATEGIC GROUP COMPETING IN THE MARKET

STEP-IIUNDERSTAND THE PERCEPTION OF COMPETITIVE BRANDS OF STRATEGIC GROUP

STEP III DETERMINE CUSTOMER’ NEEDS AND ASPIRATIONS

STEP- IV

DEVELOP TWO OR MORE POSITIONING STRATEGIES AND SELECT THE BEST ONE FOR ADVERTISING CAMPAIGN

STEP- V PERCEPTUAL MAPPING

Personal soap

Family soap

LuxuriousValue for money

.Cinthol.Liril

Lux.Camay.

. Evita

Le Sancy

Moti

Rexona .. .

Perceptual Map of Eight Leading Brands of Toilet Soaps

PERCEPTUAL MAP FOR SOFT DRINKS

COLA

NON COLA

DIET NON DIET

DIET PEPSI

TAP

FRESCA

DIET 7-UP

SPRITE

7 UP

COCA-COLA

PEPSI

MARUTI’S STP FOR ZEN

Segmentation & Targeting

Executive class in the cities as a distinct segment among passenger car buyers

This group formed the core of the compact car segment

It was owner driven segment, mostly

It looked for driving comfort much better than what was provided by Maruti 800

MARUTI’S STP FOR ZEN

Positioning Maruti positioned Zen as “an executive car for city drive”

The offer

It tried to provide in the car what this segment looked for– mainly a good driving positioning lending to smooth driving and a good pick up to acceleration

An example of effective STP

Maruti ensured that the three STP steps connected rightly and that the offer marched the STP Strategy . It ensured that the value proposition too matched the STP and the offer actually offered on the value proposition and the communication conveyed the adequately

HUNDAI’S STP FOR SANTRO

Segmentation & Targeting

Hundai proceeded with its STP Strategy more or less in the same way as Maruti did

Hundai found that the executive group within the compact segment, was a good target to aim at

It also found that the segment matched its own capabilities and ambitions

HUNDAI’S STP FOR SANTRO

Positioning Hundai positioned Santro as a “safe high proof , executive car for city drive with revvy engine

The offer

Hundai saw to it that its offer not only matched the Zen, but delivered better than Zen on certain vital parameters

…Upgraded technology … Superior power and fuel efficiency … More modern design High roof (the tall boy) … Higher ground clearance … More spacious interiors … The safest car in its category

An example of effective STP

The STP had smoothly led to the value proposition and the offer delivered on the value proposition. The buyers did perceive it as a good city car as its torque was nicely matched to the speeds envisaged on city drives. The good revvy nature of the engine contributed to superior performance

(d) Differentiation

DIFFERENTIATION STRATEGIES

PRODUCT DIFFERENTIATION

STRATEGY FOR

SHAPING DEMAND IN THEIR FAVOUR

RETAINING CUSTOMERS

THROUGH ADVERTISING & SALES PROMOTION

OFFERING DIFFERENT VERSIONS OF THE SAME PRODUCT

PRODUCT DIFFERENTIATION

DIFFERENTIATION – ORIENTED STRATEGY

Differentiation – Oriented Strategy with Emphasis on Product

Differentiation – Oriented Strategy with Emphasis on Distribution

Differentiation – Oriented Strategy with Emphasis on Promotion

Differentiation – Oriented Strategy

with Emphasis on Product

DIFFERENTIATION ORIENTED STRATEGIES WITH EMPHASIS ON PRODUCT

Product Attributes

Functionality

Packaging Convenience

Service

Experience

DIFFERENTIATION ORIENTED STRATEGIES WITH EMPHASIS ON

Functionality (Microsoft)

Microsoft is synonymous with computer operating systems. It commands 70 % of the revenue generated world wide simply because of its product design and functionality

The ongoing windows family commenced with Windows 98, moved on to Windows 2000, Windows XP and now to Windows Vista

Every new version carried substantial improvements/new features and gave vastly improved feature to the computer user

Windows Vista carried:

Windows Defender & Firewall Instant Search Internet Explorer 7 Aero Desktop Experience Windows Flip 3D Live Thumbernails Mobility Centre for Laptops tablet PC Support Meeting Space Media Centre Extenders Fax & Scan

Packaging Convenience : Firms capture new segments with Chotta Size


A bite of Cadburys at Rs.1

One dose of Nescafe at Rs.2

One spoon of Sunsilk at Rs.0.75

Chotta Coke at Rs.5

Chota Cooklite (200 ml) – Godrej at Rs.13

Strategic objective

--- Enhance the market penetration by capturing new segments --- Ramp up volumes --- Play a combination of differentiation and price oriented strategy COKE increased its customer base from 16 crores to 24 crores between 2003 and 2005; Sachets constitute more than 70 % of the total sales of the shampoo industry

Service---- Kingfisher Airlines


Kingfisher differentiates itself on service. Some of the special services on which Kingfisher bases its claim to uniqueness is highlighted below:

SERVICE AT THE AIRPORT

SERVICE ON BOARD

SERVICE ON REACHING THE DESTINATION

AT THE AIRPORT

Valet assistance

Available from the time you reach the airport till the time you check-in and on arrival at the destination airports

Check-in

Delay handling

Roving agents

.. Multiple check-in counters .. Presence of efficient staff

Translates into ..less waiting time at counters .. on time departures

… Efforts are made to minimize the inconvenience … Refreshments are offered in case the delay is more than one hour … Meals are offered in case of longer delays

Trained roving agents take care of check-in so that passengers need not wait at the check-in counter a

ON BOARD EXPERIENCE

In-flight entertainment

Guests have the option of Live TV, Fun TV, 10 Audio Channels, with choices appealing to each segments experience

Meal options

… Guests have the choice of opting for vegetarian or non vegetarian meals … Menus are designed considering the guest feedback and are frequently changed

World class crew

The crew undergoes rigorous training in safety, first aid, service delivery and personality development before they are cleared to take on the role of hosts on board

ON REACHING THE DESTINATION

Baggage delivery

… Endeavour the checked-in baggage with the passenger immediately on arrival at the destination

… Their representatives are available at the arrival lounge should their assistance be needed on account of bulky baggage

Delayed/missed baggage

In a situation of misrouted baggage, effort is made to locate and deliver the baggage as soon as possible and deliver is made at the airlines expense

Experience– The New Generation Coffee Cafes


The two main elements of the strategy adopted by the Coffee Cafes are:

(i) They choose the lifestyle oriented, well to do, urban consumers as their target, with youth/students as the dominant part.

(ii) They make coffee an experience and provide special “experience” to the chosen segment

(iii) The customers of these cafes do not see the coffee as a product or beverage, but as an experience

(iv) The integrate the ambience of the place with the coffee experience

Café Coffee Day Barista Coffee

Costa Coffee Barnie’s Coffee

Starbucks

Differentiating the experience in many innovative ways

They give the youths/students an impression that something is always happening in the coffee joints and they should be apart of it

Play music of their choice

For those focused on coffee proper, the innovation comes through product

The cafes nuance the coffee experience suiting the climate


with Emphasis on Distribution

Differentiation – Oriented Strategy with Emphasis on DistributionITC’s e-Choupal

ITC’s e-Choupal is a village internet Kiosk serving 3 purposes

---- Provides information to farmers on crops/weather/prices ---- Sells a variety of products to them ---- Buys various farm products from them for ITC’s use

ITC developed the e-Choupal model to tackle the distribution challenge and prohibitive distribution costs arising out of

---- fragmented farms ---- weak infrastructure ---- involvement of numerous intermediaries

By utilizing the scope of IT, e-Choupal linked the firm directly with the ultimate buyer virtually eliminating wasteful intermediation and multiple handling and reducing transaction costs significantly

E-Choupal managed by Local farmers

(Village Sanchalaks)

Sanchalak aggregates the demand for

various products

E-mails the order to ITC

Items are picked up by the Sanchalak at the ITC warehouse hub and supplied to the

consumers

Or it is delivered to the villagers by the local

middleman (Samyojak) co-opted by ITC

The Sanchalak collects cash payment

and remits it to ITC


with Emphasis on Promotion

L’OREAL

L’OREAL :The worlds biggest company in cosmetics also selling Maybelline cosmetics, Garnier Shampoos, Lancome perfumes

PROMOTION STRATEGY

… The L’Oreal range has premium position and is marketed through high power advertising

… Garnier is promoted using celebrity advertising

… Aishwarya Rai has been the Brand Ambassador

… The campaigns are aired during prime time on channels like Zee and Star

… The ads/message do not list out any product attributes; instead splashing the beautiful hair the celebrity film star just says “Because you are worth it”

DINESH SUITINGS

PROMOTION STRATEGY

… The differentiation is built around ‘prestige’ and high power advertising

… In its advertising campaign, an aura is built around the brand by using Sunil Gavaskar as the model.

… The brand and the prestige of the models are nicely combined in the ads.

… The punch line reads; “Dinesh suitings…. the world in your stride”

DINESH SUITINGS

Dinesh is not marketed on any utility or price plank

REID & TAYLOR

… Reid & Taylor also uses the ‘Prestige’ approach for differentiation, with even more telling effect

… Here James Bond is the prestige endorser

… The ad message links the prestige of Bond and the brand

--- Reid & Taylor…. The legend of a cloth

--- James Bond …. The legend of a man

--- Luxury Suitings….. Bond with the best

The suiting is a legend like the endorser, not a piece of cloth

PROMOTION STRATEGY

REID & TAYLOR

In the same product category of suitings

COCA-COLA

… The company has carried out a sustained high budget promotion effort over the decades

… Top rung film stars and sportsmen were consistently used inn its campaigns run through all possible media – TV, print, outdoors and events – to sustain the image built around the brand and keep it contemporary

… Coke was positioned as a welcome image rather than a drink

-- Coca-Cola makes good things better

--- Things go better with coke

--- It’s the real thing

Coke is presented more as a sensation than a product

PROMOTION STRATEGY

COCA-COLAProvides a classic example of a differentiation oriented marketing strategy. It has a great sway on the minds of millions of consumers round the globe

PEPSI

PEPSI Like Coke, Pepsi gives maximum thrust to promotion

… To counter the leader, new themes will figure from time to time in the promotion campaigns

… Pepsi is heavily banking on celebrity advertising and sponsorship of world sports events as its major marketing weapon

… Pepsi cashes in on the cricket frenzy using the cricketers and film stars to project their brand image

Neither Coke nor Pepsi pitch on the properties of their respective colas

PROMOTION STRATEGY

NIKE

NIKE

PROMOTION STRATEGY

… Kike has been projecting the image of a winner and high performer by using sports stars from Michael Jordan and John McEnroe in 1970s till Roger Federrer today

… Nike and success go together. That is the equation between the brand and whoever uses it

… You are made to feel that by wearing Nike, you are in the league of those very special sports personalities you admire

In addition to regular high budget ad campaigns, Nike puts its logo, the swoosh on every possible medium/vehicle--- MP3 players, watches, walkie talkies, and even portable heart monitors

The marketing is built wholly around brand name and promotion

Documents

Pillars of marketing