Segment, Target and Position

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Chapter 4

• Segment, Target and Position
• STP

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Gillette for Women

• Gillette for men had 2/3 of all of the wet shaves
  in the world
• Moved to women as a target
• 84 of women in the US remove body hair Germany
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• Targeted 15 to 24 year olds
• Gillette for Women Are You Ready?

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Gillette increased by 20 in Women

• Same products, different segment
• Moved from practical to the emotional
• Message for Men The Best the Man Can Get

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Potential for Segmentation
Position Brand A
Position Brand B
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The Whole Segment, the Target Segment

• Men and women
• Women
• Women only 15 to 24
• You only have so much money to use
• Position the brand with distinct value
• Position strategy key themes and concepts for
  communicating

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STP Marketing

• Segment
• Targeting
• Brand positioning

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Estee Lauder

• Estee Lauder -- Conservative
• Clinique no nonsense
• Bobbi Brown Essentials working mom
• MAC Very outgoing women and men dressed as woman

Ru Paul, drag queen,
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Going Beyond Gender and Age

• Attitudes
• Lifestyles
• Values
• Seventeen magazine

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Product Differentiation

• Appear to be different
• Its different in the consumers view
• Differentiate yourself, and your product, or
  lower price
• Arm and Hammer grittier, salty, not sweet
• 300,000 million dollar market

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Airbus A380
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Duty Free Lounge
First Class Sleeping Section
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Airbus proposed duty-free shopping courts and
restaurants aboard its new jumbo, unrealistic and
borderline-absurd ideas designed to stimulate
airline demand. From a business standpoint, this
"whole new way to fly" was nonsense. New York
Times. 5/19/06
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Why Would Marketers Pick this Product/Target
Audience?

• Aircraft were getting smaller, not larger.
• New technologies allowed long-range travel with
  great economies
• Passengers wanted direct flights offering more
  choices, more often.
• bureaucrats saw national pride at stake
• European industrial policy -- Government launch
  aid was good for one-third of development costs.

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Production Delays

• Delay of up to seven months for deliveries of the
  huge 555-seat airliner
• Extended its delivery deadline by some six months
  last year
• Value of shares in EADS, Airbus's parent company,
  fell by 26 on a single day, June 14th, wiping
  euro5.5 billion (6.9 billion) off the value of
  the firm.

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787 Buyer Wants

• Allow higher cabin pressure and humidity
• Adding to passengers' comfort
• More space for seating
• More cities point to point Chengdu to London
• FAA nearing completion of rules that effectively
  conclude that jetliners with two engines are as
  safe as those with three or four engines and
  should have the same flexibility in flying
  long-distance. -- WSJ

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Communications About the Company

• As EADS, Europe's leading aerospace group,
  plunges deeper into crisis, its dual management
  structure is once again under fire.
• Franco-German group
• Formal investigation into share disposals
• it should adopt a single management structure
  Financial Times, 6/23

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Identifying a New Market Segment

• Segment must be really useful
• Reachable with forms of promotions/communications
• Multiple variables to describe the market segment

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Demographic Segmentation/Usage Rates

• Mobile Oil
• Road Warriors, True Blues
• Generation Fe Homebodies and Price Shoppers
• Road Warrior 1200 year, buy snacks, drive
  25000 miles a year
• Price shoppers 2X, but 700, no loyalty

DATA/ Ethnographics
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Informative Trade Promotions

• Convention or trade shows
• Cooperative advertising
• Display support

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• Friendly Serve
• Buy sandwiches
• Clean WC
• Lighting
• More labor
• Better service

Road Warriors
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Segmented Age Group, but Segment of the Age Group

• Woopies well off older people
• Unprecedented wealth
• Partition segment 50-64, 65-74 75-84
• Health, outlook, motivation

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Geographic Segmentation

• Where people live
• Change in taste food, clothing
• Use in climate
• Global Geo-demographic
• Identifiable group based on product usage

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Overall Use Patters

• Non Users
• Brand loyal
• Heavy users
• Switches or variety seekers
• Emergent consumers
• Change in life style
• Use different products

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Tesco Club Card
12 million Britons for its Clubcard program
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Actual Use of Product

• Discount in exchange for personal information,
  name
• Asian herbs, cooking oil and other ethnic foods
  in neighborhoods with many Indians and Pakistanis
  
• Data showed affluent Europeans bought same goods
  expanded program

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"The way people like to think they eat, and the
way they actually eat is usually very
different," Puzder said.
Hardee's and Carl's Jr. unveiled a jumbo-sized
cheeseburger smothered in sliced steak.
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The company said both versions taste and feel
to the mouth much like real meat, but are much
healthier. For example, a hybrid burger dubbed
the "Better Burger" by Solae has two-third the
calories and half the fat and saturated fat as a
burger of comparable size.
St. Louis-based Solae LLC is a 1 billion food
innovation company that specializes in soy
protein the company has more than a 50 percent
share of the world's isolated soy protein food
ingredient market.
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Psychographics

• Age, gender, home address, education wasnt
  enough
• Focus on consumer activities, interests, and
  opinions
• Lifestyle segmentation
• Psycho graphic segmentation

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Value and Life Style Segmentation VALS

• Segment people within a closed population
• Activities,
• Way they look at the world
• Desire for goods, services and experience

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• Chase Grabbits
• Functional feeders
• Down-home Stokers
• Careful Cooks
• Happy Cookers

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Business to Business to Markets

• Where to start?
• Users purchase finished products, like
  computers, machine tools
• Manufacturers, processors, assemblers
• Resellers
• Service organizations
• Institutions, including government

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Data Bases

• SIC Standard Industrial Classification
• Size of organization
• Geographic segmentation

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Benefit Segmentation

• Toothpaste
• White teeth
• Healthy gums
• Reduce cavities
• Reduce sensitivity
• Breath freshening

Consumer has specific need
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Business to Business

• Users
• Manufacturers
• Re sellers
• Services
• Institutions

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Data

• SIC Standard Industrial Classification
• Size of organization
• Geographic segmentation

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Business Segments

• End users
• OEM Original Equipment Manufacturer
• After market seller
• Horizontal and Vertical Segmentation

VERTICLE
HORIZONTAL
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Prioritizing Segments

• Do you have the people and the ability to do the
  job
• Is the segment large enough. Will it last?
• Competition will see the move.
• Niche marketing -- can you find the people?

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Formulating a Position

• Substantive value
• Consistency
• Simplicity

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Brand Positioning Themes

• Benefit to the user
• Focus on the user people just like you!
• Competitive positioning
• Compare to the other brands

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Substantive Value
Customers pay for what they want Expensive Inexpen
sive Keep the promise
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Consistency

• Brand consistent in regular use
• Consistent over time
• Promote the idea in message
• Show the consistent use in operation

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Simple and Distinctive
VALUE
CONSISTENT
Distinctive
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Brand PositioningProduct Positioning
Use a single idea Whats different
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Benefit Positioning

• Kheils NY, original store 1851
• Seattle Khiles LOreal Store

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User Positioning

• Distinctive life style of a group of people

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Competitive Positioning

• Beecham Group, sell a large part of its non-cola
  soft drinks business to a complex joint venture
  between Pepsico and three British companies
  Bass, Allied-Lyons and Whitbread Company.
• Meanwhile, Cadbury Schweppes announced that its
  planned joint venture with Coca-Cola would begin
  operations by Feb. 2.
• Under the Beecham agreement, which will take
  effect in January, Beecham will sell its Corong,
  Quosh, Tango, Top Deck, Idris and Hunts brands
  for about 120 million pounds, or 170.4 million
  at current exchange rates. NYT, April 12, 2007

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Repositioning Brands

• Arthur Andersen
• Orderly dissolution of the company
• US Supreme Court overruled the lower court
• Accenture survives, but it was an earlier spin
  off

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Key Terms

• Market segments
• Positioning
• STP Marketing
• Product differentiation
• Heavy user
• Nonuser
• Switcher
• Lifestyle segmentation

• Benefit segmentation
• Market niche
• Benefit positioning
• Competitive positioning