STP AnalysisSegmentation Targeting Positioning

Miss. Nisha Agarwal

& Miss Nikita Dhoot

Department of Management Studies,

DKTE’S Textiles & Engineering Institute, Ichalkaranji-Kolhapur-Maharashtra

Strategic Market Planning Process

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S- Segmentation

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MARKET SEGMENTATION •Markets consist of buyers. These buyers may differ in their wants, resources, locations, buying attitudes, and buying practices. •Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more effectively with products and services that match their unique needs. • Partition of the market with the purpose of selecting one or more market segments which the organization can target through the development of specific marketing mixes that adapt to particular market needs.• Selection of those segments for which a firm might be particularly well suited to serve by having competitive advantages relative to competitors in the segment, reducing the cost of adaptation in order to gain a niche.

• Segmenting Consumer Markets There is no single way to segment a market. Marketers must try different

segmentation variables, alone and in combination, to find the best way to view the market structure. 1. Geographic segmentation2. Demographic segmentation3. Psychographic segmentation 4. Behavioral segmentation

T- Targeting

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• Target Marketing involves breaking a market into segments and then concentrating your marketing efforts on one or a few key segments.

• Target marketing can be the key to a small business’s success.

• The beauty of target marketing is that it makes the promotion, pricing and distribution of your products and/or services easier and more cost-effective.

• Target marketing provides a focus to all of your marketing activities.

P - Positioning

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• After selecting target markets the strategist should develop positioning objectives to then develop them into a detailedmarketing mix• Positioning is "the part of the brand identity and value proposition that is to be actively communicated to thetarget audience and that demonstrates an advantage over competing brands.• Kotler (1994) refers “to it as the unique selling proposition.”• Explained in other words, the positioning statement is the point where the bundle of attributes join to form one conceptwhich aims at capturing the essence of that which the target audience seeks in the product category.

STP OF Reliance Communications

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SEGMENTATION STRATEGY OF RELIANCE COMMUNICATIONS In the words of Dhirubhai Ambani himself,

“My vision is to provide the latest telecommunication facilities to every Indian at the price of a post card”.

Market Segmentation Strategy Reliance has always been known for its “unconventionalism” in dealing with various activities of the management, from advertisement and promotion to identifying potential customers to the actual selling of the product. It was also instrumental in increasing the mobile phone penetration in India to grow from 0.25 percent in early 2001 to about 7.53 percent till date.

Segmentation

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Measurable, Accessible, Substantial, Differentiable and Actionable Market

• Reliance estimated that there are around 320 million [people in] households with an annual income of Rs 1.5 lakh (US$3,333) [and above]. Of that, half are in rural areas with similar purchasing power. And this segment is expected to grow to 500 million by 2008 and to 602 million by 2010. This presented a substantial chunk of potential buyers for Reliance products.• Besides, the segment was also easily accessible, that is, it could be easily sought and encouraged to buy Reliance mobiles considering their extremely economical cost. • On a broader note, Reliance has segmented the market on the following major criteria:

1. Geographic Segmentation • On the basis of geography Reliance Communication has always believed in uniting India as a whole and considering it as a single entity and consequently divided it’s services under two major broad categories schemes --- National and International. • One of the best examples in this context is that of the ONE India Plan which allows you to call any phone, anywhere in India for just ONE RUPEE per min. • Other plans include: National and international roaming plans, STD and world calling cards & Prepaid Reliance STD Calling Card

Contd…

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2. Demographic Segmentation: • Age, gender, income group, occupation, etc. • It has come up with a variety of plans such as the JOY PLANS &ON –NET TALKTIME PACK

3. Psychographic Segmentation: • Different people have different value systems, varying personality traits, beliefs, attitudes, separate self image or self concept and an altogether different way to look at life (lifestyle). • As a result their needs and preferences also differ accordingly. • Reliance Communication has kept this aspect in mind while designing it’s wide range of mobile phones to appeal to different audiences and in a way suit their self – image (self concept). • From lower end simple and sober handsets like the CLASSIC series to the little stylish multimedia enabled handsets such as LG, Kyocera and Nokia to the ultra – stylish UT Star PPC and TELESON handsets, Reliance offers something for everyone.

Contd…

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Behavioral Segmentation • Reliance was quick to realize different behavioral patterns & different perceptions about different products hence tried to segment the market on the basis of the behavioral patterns of its customers.

Here they looked at

1.whether there was increased buying during special occasions,

2.whether a substantial chunk of population looked for a specific class of benefits to be derived from its products,

3.what was their user status

4.how heavily or lightly was a specific product used (usage rates),

5.loyalty towards a particular category or product,

6.readiness to adapt to new technology and the general attitude towards the product.

TARGETING

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TARGETING FULL MARKET COVERAGE

• Today Reliance Communications has established itself as one of the top telecom service providers in India offering a wide range of services such as CDMA and GSM services in both prepaid and postpaid flavours.

• Broadband services through R – Connect, Reliance Hello schemes, Reliance PCO, interactive TV, Data Center, etc.

• Because of the enormous gamut of services offered across various product categories, (be it selling mobile phones or new connections or broadband services) and market segments (both high end commercial usage to lower end individual use), the Strategic Business (SBU) Units caters to almost all product categories across all market segments.

• Thus the company targets the full Telecom Industry market rather than any specific segment leaving no segment untargeted. Hence we can safely conclude that the market segment targeted by the SBU is that of FULL MARKET COVERAGE.

Positioning for Competitive Advantage

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•It is the way the product is defined by the consumers on important attributes•It is the place the product occupies in consumers’ minds relative to competing products.• It involves implanting the brand’s unique benefits and differentiation in customers’ minds. •To simplify the buying process, consumers organize products, services, and companies into categories and “position” them in their minds. • Marketers must plan positions that will give their products the greatest advantage in selected target markets, and then must design marketing mixes to create these planned positions.

Positioning Strategy

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• Reliance Communications has believed in introducing innovative techniques and practices in all its marketing strategies --- be it segmenting, targeting or positioning itself in the market.

• Reliance has always believed in making its services affordable to the people while not compromising on the services offered and at the same time getting substantial profit margins to sustain its growth.

• This principle forms the primary basis of Reliance Communications product’s positioning strategy.

• Among the major positioning strategies adopted by Reliance are:

1.Product Differentiation

2.Service Differentiation

3.Personnel Differentiation

4.Channel Differentiation

5.Image Differentiation

History of maggi

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• Maggi is an over 100-year-old Nestlé brand of instant soups, stocks, bouillons, ketchups, sauces, seasonings and instant noodles.

• The original company came into existence in 1872 in Switzerland, when Julius Maggi took over his father's mill. Marked the beginning of the Maggi® brand and its lines of convenient food products.

• In 1882, the Swiss Public Welfare Society commissioned Maggi to create a vegetable food product that would be quick to prepare and easy to digest to help with the problem of women having less time to prepare meals as more and more worked outside the home.Maggi merged with Nestlé in 1947.

Maggi as an international culinary brand

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• Worldwide leader in flavor and meal enhancement.

• Internationally as the trusted brand in consumer and professional kitchens.

• Almost 89 percent of chefs in Hong Kong-the center of Chinese culinary excellence-use Maggi products in their meal creations.

•The market leader in People's Republic of China, Philippines, India, Vietnam, Malaysia and Thailand.

Maggi-INDIA

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• NESTLE introduced maggi brand in INDIA in 1982.

• With the launch of maggi noodles, NUL created a new food category in Indian packaged food market.

• Over in India, maggi became a popular snack food product.

•In fact, "Maggi" has become a generalized name for instant noodles in India and Malaysia.

STP of maggi

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SEGMENTATION:• Segmented the market on the basis of lifestyle and eating habits of the Indian consumer.

• Focus mainly on age and appetite of the urban families.

TARGETING

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• Target audience are Kids , YouthWorking women

• It helps mothers with the promise of fast to cook and good to eat snacks.‘convenience savvy time misers’

• Taglines like 'Mummy, bhookh lagi hai'

(Mom, I'm hungry), 'Bas 2-Minute,

(Only 2 minutes) and 'Fast to Cook Good to Eat' effectively communicated the product's benefits to target consumers

POSITIONING

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• Positioned their product with the well known slogan

“2minute noodles”

“taste bhi health bhi”

“Easy to cook, good to eat”

• Positioned their product as to get fast relief from hunger.

Brief About Nokia

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Type: Public Limited Company Industry: Telecommunication, Internet & Software Headquarters: Espoo, Finland Products: Mobile Phones, Smart Phones, Mobile Computers & Networks Founded in: 1871Establishment in India: 1995 Financial Position (as on Q3 2010) Revenue: € 42.45 billion Operating Income: €2.070 billion Net income: €1.850 billion Total Assets: €39.12 billion Total Equity: €16.23 billionEmployees: 132,430 in 120 countriesSubsidiaries: Nokia Siemens Network, Navteq, Symbian, Vertu, Qt Development FrameworkBranches in India: Gurgaon, Mumbai, Kolkatta, New Delhi, Bangalore, Hyderabad & Ahmadabad

STP Analysis of Nokia

Segmentation & Targeting:1.Entry level (Rs. 1,200 – 3,000): Lower Income group & first time mobile buyers2.Classic series (Rs. 7,000 – 17,000): Decent People3.N gage Series (Rs. 8,000 – 16,000): Game Lovers4.N-Series (Rs. 7,000 – 35,000): Young Generation- New technologies5.E-Series (Rs. 10,000 – 60,000): Business People- targeted computing need 6.Xpress Music Series (Rs. 6,000 – 20,000): Music Lovers7.Premium Series (Rs. 80,000 – 1,50,000): Shows Visual Status

STP Analysis

Positioning:

1. Nokia Logo

2. Slogan

3. Standard Ringtone

4. Standard message tone

5. Long battery backup

6. User friendly mobiles

About MBA-DKTE……

DKTE’s Textile & Engineering Institute enjoys a unique

and prominent place amongst the institutions that are

engaged in education, training, research & consultancy.

Capitalizing on our experience and goodwill in textile

and engineering, the department of management studies

was set up. Currently it offers Two Years full time MBA

course with specialization in areas such as Marketing,

Finance, HR, Systems and Production and Textile

Management.

Document prepared by,

The Department of Management Studies, DKTES Ichalkaranji. Dist. Kolhapur. 0230-2421300

Ext. 316

Mail your valuable feedback at niki_dhoot89@yahoo.in

Brief Profile of The Institute

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