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u Markets consist of buyers. These buyers may differ in their wants, resources, locations,
buying attitudes, and buying practices.
u 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.
u 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.
u 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.

u 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 segmentation
2. Demographic segmentation
3. Psychographic segmentation 
4. Behavioral segmentation
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u Target Marketing involves breaking a market into segments and then
concentrating your marketing efforts on one or a few key segments.
u Target marketing can be the key to a small business͛s success.
u 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.
u Target marketing provides a focus to all of your marketing activities.

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

V
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SEGMENTVTION STRVTEGY OF RELIVNCE COMMUNICVTIONS
In the words of Dhirubhai Vmbani himself,
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Reliance has always been known for its ͞unconventionalism͟ 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.


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u 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. Vnd 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.
u 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.
u On a broader note, Reliance has segmented the market on the following major criteria:


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u On the basis of geography Reliance Communication has always believed in uniting India as
a whole and considering it as a single
 
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((( National and International.
u 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.
u Other plans include: National and international roaming plans, STD and world calling cards
& Prepaid Reliance STD Calling Card
 

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u Vge, gender, income group, occupation, etc.
u It has come up with a variety of plans such as the JOY PLVNS &ON ʹNET TVLKTIME PVCK


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u 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).
u Vs a result their needs and preferences also differ accordingly.
u Reliance Communication has kept this aspect in mind while designing it͛s wide range of
mobile phones to appeal to different audiences and in a way suit their self ʹ image (self
concept).
u From lower end simple and sober handsets like the CLVSSIC series to the little stylish
multimedia enabled handsets such as LG, Kyocera and Nokia to the ultra ʹ stylish UT Star
PPC and TELESON handsets, Reliance offers something for everyone.

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u 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.

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u Today Reliance Communications has established itself as one of the top telecom
service providers in India offering a wide range of services such as -#@ and |@
services in both prepaid and postpaid flavours.
u Broadband services through / -
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u Because of the
 
 
offered across various product categories,
(be it selling mobile phones or new connections or broadband services) and 



  (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.
u 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 *+,,@ -.



      !!

u It is the way the product is defined by the consumers on important

attributes
u It is the place the product occupies in consumers͛ minds relative to
competing products.
u It involves implanting the brand͛s unique benefits and differentiation in
customers͛ minds.
u To simplify the buying process, consumers organize products, services, and
companies into categories and ͞position͟ them in their minds.
u 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.



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u 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.
u Reliance has always believed in making its services !
to the people while  
   

 
offered and at the same time 
!   
 to sustain its growth.
u This principle forms the primary basis of Reliance Communications product͛s
positioning strategy.
u Vmong the major positioning strategies adopted by Reliance are:
1. Product Differentiation
2. Service Differentiation
3. Personnel Differentiation
4. Channel Differentiation
5. Image Differentiation

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

u 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.

u 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.


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u Worldwide leader in flavor and

meal enhancement.
u Internationally as the trusted brand
in consumer and professional
kitchens.
u Vlmost 89 percent of chefs in Hong
Kong-the center of Chinese culinary
excellence-use Maggi products in
their meal creations.
uThe market leader in People's
Republic of China, Philippines, India,
Vietnam, Malaysia and Thailand.

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u NESTLE introduced maggi brand in INDIV in 1982.

u With the launch of maggi noodles, NUL created a new food
category in Indian packaged food market.
u Over in India, maggi became a popular snack food product.
uIn fact, "Maggi" has become a generalized name for instant
noodles in India and Malaysia.

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u Segmented the market
on the basis of lifestyle
and eating habits of the
Indian consumer.

u Focus mainly on age and

appetite of the urban
families.


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u Target audience are Kids , Youth
Working women

u It helps mothers with the

promise of fast to cook and good
to eat snacks.



 
 
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u Taglines like
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(Mom, I'm hungry),
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(Only 2 minutes) and
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effectively communicated the
product's benefits to target
 
consumers
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u Positioned their product with

the well known slogan
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u Positioned their product as to
get fast relief from hunger.

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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: 1871
>Establishment in India: 1995
> *  
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> Revenue: Φ 42.45 billion
> Operating Income: Φ2.070 billion
> Net income: Φ1.850 billion
> Total Vssets: Φ39.12 billion
> Total Equity: Φ16.23 billion
>Employees: 132,430 in 120 countries
>Subsidiaries: Nokia Siemens Network, Navteq, Symbian, Vertu, Qt Development
Framework
>Branches in India: Gurgaon, Mumbai, Kolkatta, New Delhi, Bangalore, Hyderabad & M
Vhmadabad
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first time mobile buyers
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1. Nokia Logo

2. Slogan

3. Standard Ringtone

4. Standard message tone

5. Long battery backup

6. User friendly mobiles

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