MARKET SEGMENTATION

Meaning In todays competitive business world, it is not possible to sell everything everyone. There are different types of customers, each with different needs and wants, tastes and preferences, different purchasing power and so on. For instance, the Mumbai markets do have various types of customers such as college student, office goers, retired people, higher income people, middle income people, lower income people, Maharashtrians, Gujarathis, Goans, etc. gain in each category of customers representing the most desirable market and accordingly make every possible effort to induce and encourage them to buy the goods or services. Thus, market segmentation enables a firm to frame different marketing mi!es for different groups of customers. Normally, the market is made up of people with: Different characteristics, Different needs and wants, Different purchasing power, Differences in the degree of willingness to buy. Differences in eligibility to buy. If marketers wish to do an effective marketing job in such diverse and heterogeneous markets, they must identify the differences in the different group of people in the market. This is because one marketing mi will not satisfy them. In other words, different marketing mi es have to be designed to satisfy different marketing groups. Thus, there is a need for market segmentation.

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1.

Heterogeneity:

The various groups of the consumers for the type of product which the firm is selling in the market must be different. In other words, potential customers characteristics and wants must be heterogeneous i.e., different from each other.
2.

Availability of data:

The information on the consumer variables must be easily available. The marketing manager must not find it difficult to collect the data. "onsumers, dealers and other must be willing to provide correct data. #therwise, marketing segmentation process may be of no use.
3.

Measurability:

The segment variables must be capable of measuring. It refers to the measurement of the si$e of the target market and also the purchasing power of the segment market. The other segment variables such as the age factors, use rate, etc. must be capable of measuring. In other words, the segments can be identified and compared in terms of relative attractiveness.
4.

Sustainability:

It refers to the degree to which the segments are large and&or profitable. The market segment must be suf ficient in si-e so as to design a suitable mi! to the satisfaction of target segment and at the same to enable the firm to earn sufficient profits. There is no sense in concentrating marketing efforts if the si-e of the market segment does not bring returns in form of profits. There must be at least one segment large enough to serve profitably.
5.

Approa !ability:

&t refers to the degree to which the segments can be effectively reached and served. The segment market must be located at a particular place and is e!posed to certain advertising media, and then only it can be effectively reached and served
6.

A tion ability:

It refers to the degree to which effective marketing programmes can be formulated for attracting and serving the customers. There is no sense in identifying several market segments, if the firms are not in a position to undertake marketing programmes to serve and satisfy the consumers.
7.

Responsiveness:

It refers to the degree to which the market segment responds to the marketing programmes adopted by the firm. 'or instance, the marketing firm may develop high (uality products for (uality products for (uality conscious people. They should react favo urably towards such products. &n other words, there should be a favourable response from the segment market.

"ASES O# MARKET SEGMENTATION

There are several ways or methods to segment a market. *uch ways or a method depends upon consumer characteristics and their responses to the products or services. + paradigm shift has taken place in the way the Indian corporate ,isviewing customers. There has been a shift from organi$ing by.products to organi$ing by.market segments. 'or e ample, /aruti is segmenting is customers on the basis of economic and premium class, which was not done previously.
I.

GEOGRA$HI% SEGMENTATION :

In geographic segmentation, the market is sub divided on the basis of area. "egion.

1egional segmentation is made because regional differences e ist in respect of demand for products. 'or e ample, buyers from south India are different from the buyers in north. %rban / "ural. There are differences in buying behavior of urban and rural customers. +ccordingly, marketing strategies must be designed depending upon their likes, dislikes, moods, preferences, and fashions and buying habits. 0ocality. "onsumer2s buying behavior is also reflected by the locality within a particular city. 'or instance, there are differences in terms of buying patterns of people residing at 3arel and 3arle, within a city like /umbai. &EMOGRA$HI% SEGMENTATION:

II.

Demography refers to study0about the different aspects of population. /arkets can be divided on demographic factors like age, gender, education etc. The various demographic factors are: ge. The primary method of analy$ing markets by age is to divide the total population into age groups and analy$e the wants and needs of each group. Gender. /arketers devote much attention to male and female differences in purchasing. Today, marketers segment female groups into college girls, working women, housewives, etc. +gain, male groups can be further classified. &ncome.
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5uying patterns depends on income of the consumers. No two individuals or families spend money in e actly the same way. If a researcher knows a person2s income, he can predict with some accuracy wants and needs of that person and how those wants are likely to be satisfied. #ducation. /arket can be segmented on the basis of education 6 matriculation or less, under graduates, graduates, post.graduation, etc. /ost studies show that the highly educated people spend more than the poorly educated in respect of housing, clothing, recreation, etc. Family (i-e. The consumption patterns of certain products definitely vary with the number of people in the household. /anufacturers of certain products such as ice.cream market family packs. Family 0ife *ycle. The market can be segmented as bachelors, newly married couples, married with grown up children, older married couples, etc. 'or selling tours and vacations, 7ife Insurance policies etc., this segmentation is of use. "ace and "eligion. "onsumption patterns of certain products differ on the basis of religion and race, such as alcohol and meat products.

III.

SO%IOGRA$HI% SEGMENTATION:

The market can be segmented on the basis of sociological factors such as : *ultural &nfluences. The marketer must consider cultural influences while segmenting markets. 3eople in urban areas are influenced to a certain e tent by western culture, whereas, many people in villages follow more or less traditional culture.
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"ulture is influenced by our socio.cultural institutions like family, religion, language, education, and so on. &nfluence of (ocial *lass. 5uying behaviour is reflected by the influence of social class to which the consumers belong. The social class can be segmented as 6 lower .lower, middle.lower, upper.lower, lower.middle, middle.middle, upper.middle, and lower.upper, middle.upper and upper.upper. 'irms dealing in clothing, home furnishing, automobiles, etc. can design products for specific social class. &nfluence of "eference Groups. + reference group may be defined as a group of people who influence a person2s attitudes, values and behaviour. "onsumer behaviour is influenced by the small groups to which they belong or aspire to belong. These groups include family, religious groups, a circle of close friends or neighbours, etc. 9ach group develops its own set of attitudes and beliefs that serve as guidelines for members2 behaviour.
IV.

$S'%HOGRA$HI% SEGMENTATION:

It refers to individual aspects like life style and personality. 0ife1(tyle. *ellers study the life.styles of the consumers. 'or e ample, a manufacturer of readymade garments may design his clothes differently matching different life styles of college.students ,more fashionable-, office.goers ,more sober- and so on.

2ersonality. 3ersonality characteristics such as leadership, independence, masculine, impulsive, ambitious,.etc., do influence buying behaviour.

V.

"EHA(IO)RA* SEGMENTATION:

In this case, buyers are divided into groups on the basis of their response to the product 6 usage rate, user status, loyalty status, buying motives, and so #n. %sage "ate. #ne possible way to define target market is by product usage. There can be heavy users, medium users, light users, and nonusers. Targeting on this basis may be useful to the sellers who want to increase consumption by present users and to convince and induce nonusers to become users. %ser (tatus. /arket can be segmented on the basis of user status such as: non.user, e .user, potential user, first.time user, regular.user, ; so on. "eadiness (tage. /arket can be segmented on the basis of people2s readiness to buy the product. *ome people are well informed and are interested to buy the product. *ome other may be well informed but not interested to buy the product. 3uying Motives. 5uyers buy the product with different buying motives such as economy, convenience, prestige, etc. +ccordingly promotional appeals can be directed to the target audience.

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5usiness markets can be segmented on the basis of geographic location, type of organi$ation, customer si$e, product use, demographic factors, and usage rate benefits sought.

Geographic location. The demand for business products varies considerably from one geographical area to another as a result of differences in climate. Terrain, natural resources or similar factors. It is basically used for serving industries that are concentrated in certain location. Type of organi-ation. +nother basis for segmenting organi$ation market is the type of organi$ation in that market. Different types of organi$ation often re(uire different product features, distribution system and price structures. =ence due to these variations in needs, a marketer may decide to concentrate on a single segment with one marketing mi or may focus on several segments with multiple mi es. (i-e of customer. The market may be segmented on the basis of si$e of the customer to be served. +ccordingly marketers employ different marketing practices to reach various customer groups.
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2roduct use. Depending upon product use the markets can be segmented as products use for production, research or other business operations.

%sage rate. *egmenting business market on the basis of usage rate includes.heavy users, light users or non.users. #ther factors include: *egmentation on the basis of purchasing criteria ,(uality, service, price *egmentation on the basis of purchasing function ,decentrali$ed and centrali$ed *egmentation on the basis of loyalty.

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The following are the steps or procedures in developing a segmentation strategy: +, &efine t!e relevant -ar.et: 5efore making an attempt to define market segments, a company should define its relevant market. 'or e ample, a company that produces a soft drink is in the soft drink market, and a company that is selling sports cars is in the sports car market. + proper definition of relevant market will keep the company on the right track.

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/, Analy0e !ara teristi s and 1ants of potential usto-ers: +fter defining its relevant market, the company should collect data that describe the characteristics and wants of the potential customers. This data can be collected from secondary research ,collecting and using data that is already available in published form-. The data can also be collected from primary sources by conducting a field survey. 2, Identifying bases for seg-entation: The company can proceed to identify bases for segmenting the market. The bases include geographic, demographic, sociographic, psychographic and behavioural. The company may identify all bases or one or two bases. *pecific segmentation variables, based on the data collected might include age, se , occupation, lifestyle, brand loyalty, etc. 3, &efine and des ribe -ar.et seg-ents: +fter identifying possible segmentation variables, the company can proceed to define the various market segments. This can be done by developing market segment profiles which describe the characteristics and wants of the people in each market segment. The people in one segment will be highly similar to each other in terms of their characteristics and wants. =owever, they will be different from the people in other segments in terms of their characteristics and wants. Thus, a company in the soft drink market can define market segments as. fitness conscious, fun loving college students, occasional sippers, sociable, and the like.

4, Analy0e o-petitors5 positions: +fter defining and describing the market segments, the company proceeds to identify the major competitors in each of the segments. #ne approach is to survey a sample of consumers in each of the segment and determine as
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to how they rate various brands in terms of features, price, taste, etc. and find out the reasons as to why they prefer a particular brand over others. 6, Evaluate -ar.et seg-ents: The company must conduct cost benefit analysis of serving a particular market segment. *erving a market segment profitably re(uires that the cost of the marketing effort be less than the sales revenues reali$ed from serving it. 9valuating the market segments in terms of the generation of sales revenue and the cost of marketing efforts helping ranking the segments in terms of relative attractiveness. 7, Sele t -ar.et seg-ents: +fter identifying the various market segments and evaluating their relative attractiveness, the company must select the market segment that it intends to serve. @hile selecting the market segment, the company must consider: #verall company2s objective. 1esources and capabilities of the firm. The level of competition. The strengths and weaknesses of competitors. The e pected competitors2 reaction to the firm2s entry into one or more segments. 8, #inali0ing t!e -ar.eting -i9: +fter selecting market segment, the company must then finali$e the marketing mi appropriate for specific market segment. In other words, the company has to make decisions in respect of the product, price, promotion and distribution efforts. It is to be noted that each segment needs a separate marketing mi , because consumers in each segment are different from those of other segments.
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+, &eter-ination -ar.et opportunities: /arket segmentation enables to identify market opportunities. The marketers can study the needs of each segment in the light of current offerings by the competitors. 'rom such study, the marketer can find out the current satisfaction of customers. *egments with low level of satisfaction from present offering may represent e cellent market opportunities. 'or instance, customers may not be satisfied with the current offering of water purifiers in terms of product or after.sale service. *uch situation will enable a marketer to launch a new range of water purifiers and market them well. /, Ad:ust-ents in -ar.eting appeals: *ellers can make best possible adjustments of their product and marketing appeals. Instead of one marketing program aimed to draw in all potential buyers, sellers can create separate marketing programs designed to satisfy the needs of different customers. 3roper advertising and sales promotional appeals can be made depending upon the target audience. 2, &eveloping -ar.eting progra-s: "ompanies can develop marketing programmes and budget based on a clearer idea of the response characteristics of specific market segments.
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They can budget funds to different segments depending upon their buying response. 3, &esigning produ t: /arket segmentation helps in designing product that really match the demands of the target audience. 3roducts with high market potential can be designed and directed to meet the satisfaction of the target market. 4, Ti-ing of -ar.eting efforts: It helps in setting the timing of the promotional efforts so that more emphasis is placed during those periods when response is likely to be at its peak. 'or instance, consumer goods can be heavily advertised to "hristians during "hristmas season and to =indus during Diwali time.

6, Effi ient use of resour es: 5y tailoring marketing program to individual market segments, management can do a better marketing job and make more efficient use of marketing resources. 'or e ample, a small firm can effectively use its limited resources 6 money, sales force, etc. 6 in one or two segmented markets rather than unsuccessfully, aiming at a wider market. 7, "etter servi e to usto-ers: /arket segmentation enables the company to concentrate its marketing effort in a particular market area, thereby, providing a better service to the target customers. 3roper marketing segmentation cans facilitate customer satisfaction. 8, Helps to fi9 pri es: The marketing segmentation also enables to fi prices of the goods and services. *ince different market segments have different price perceptions, it is necessary to adopt different pricing strategies for different markets. 'or
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instance, the prices for lower income groups will have to be lower and accordingly the product and promotional efforts are adjusted. ;, Assist in distribution strategies: If you have a specific market segment you2re trying to reach, you can decrease your distribution channels, targeting those outlets that have the highest amount of traffic from your desired customers. #nce you learn where your main target customer shops, you can focus your sales and promotions budgets in those outlets. +<,Media sele tion: It helps in selection of advertising media more intelligently and in allocation funds to various media. The funds are allocated to various media depending upon the target audience, impact of the media, competitors advertising etc.

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6. *onservative attitude of management. In India, there are companies that adopt a conservative attitude towards marketing. They do not give much importance to marketing activities. They fail to reali$e the benefits of market segmentation. 'or such conservative managements, it does not make meaning to segment the market and adopt different marketing mi es.

/, &e eptive variables:

There are certain consumer elements that are deceptive. 'or instance, the income of the consumers. It is often felt that the lu ury items such as cars,
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sophisticated watches, etc., are purchased only by the rich class. =owever, now.a.days, a large number of customers belonging to the middle class do purchase such items. Therefore, it is difficult to strike a line between the rich and the near rich.

2, )npredi table onsu-er be!avior:

It is (uite difficult to judge precisely the behavior of the customers. They may have different perceptions about product, its features, price, etc. such perceptions do change at different times. Today, the customer may be price consciousA tomorrow he may be (uality conscious, then he may again be price conscious. Thus, it is very difficult to judge consumer behavior.

3, Inade=uate -ar.et infor-ation:

The marketing manager may not be able to get the e act market information to base his decisions on market segmentation. This may be due to wrong information supplied by the consumers in respect of their income, and other aspects or the market data collectors may be ineffective to collect the right data. +s such the decisions on market segmentation may be based on inade(uate, incorrect, and outdated information.

4, >rong :udg-ent:
/arketing people may wrongly interpret the marketing data. To a great the (uality of market segmentation depends upon the (uality of marketing people their imagination, intelligence, maturity and e perience.

6, %!anging environ-ent:
The changing market environment may also throw the process of market segmentation out of gear. Imported goods may flood the market as a result

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of market liberali$ation policies. In such instance, the market segments may not respond to the marketing mi es designed by the Indian firms.

7, &iversity of Indian -ar.et:

The diversity of Indian markets like rural.urban, rich.poor, etc., poses a problem to have a systematic segmentation of market. +gain, e cessive market segmentation amount to market fragmentation and this may not be profitable to the company.

8, Ti-e onsu-ing and e9pensive pro ess:

*egmenting markets involves lot of time, effort, and money on the part of the firm. +t time, there may a waste of time, effort and money, especially when the market situation changes considerably before implementation of the market segment strategy.

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$OSITIONING
The term BpositioningC was made popular in !>:% by two marketing e pert. +l 1ies and Dack Trout. They contended that marketing is more a battle of perceptions than of products. 3ositioning is the most fundamental concept or tools in marketing. The product or brand must register in the buyer2s mind. =ow strongly it does so, would decide its position in the market place. 3ositioning starts with a product. + piece of merchandise, a service, a company, an institution or even a person. 5ut positioning is not what you do to a product. 3ositioning is what you do to the mind of the respect. That is, you position the product in the mind of the prospect.

STE$S IN $RO&)%T $OSITIONING

+, Identifies o-petitive differen es: The marketer should identify the competitive differences of his product or service. The differences can be: a- 3roduct differences such as features, design, packaging, etc. b- *ervice differences such as delivery, after.sale.service, etc. c- 3ersonnel ,sales people, service technicians, etc.- differences such as competence, nature&manners, etc. d- Image differences such as the goodwill of the producers, brand name, brand price, brand advertising, etc.

/, Sele ting i-portant differen es:

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The marketer must select the most important differences that would differentiate it from that of the competitor. 'or e ample, if marketers of TE sets claim that they provide ) years guarantee and if a particular marketer provides : years guarantee, then this could be an important difference which the firm offers.

2, &eveloping positioning strategy:

The marketer should then make effort to develop positioning strategy. The marketer may position the brand by following any of the following positioning strategy: a- Fsing specific product feature b- 3ositioning by 3rice c- 3ositioning by use d- 3ositioning by competitors, etc.

3, %o--uni ating t!e o-pany5s positioning:

The marketer should select proper media to communicate the company2s positioning. The right media must be selected to communicate the image of the brand. 'or e ample, an e pensive watch like 1ole communicates its image by associating with the @imbledon Tennis Tournament 1ole @atches may not be able to communicate the rich image of the rich image of the brand if it sponsors sport like cricket which is played by few countries and that too liked by masses.

4, #ollo1 up positioning:

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The marketer may try to follow up the positioning of the brand. This can be done by undertaking research, or by analy$ing the sales of the brand. If the positioning strategy is not successful, the marketer may re.position the brand with alternative strategies, so as to create a distinct image in the minds of target customers.

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2)(&T&)'&'G (T" T#G&#(

The adviser can adopt different positioning strategies in order to develop or reinforce a particular image for the brand in the mind of the audience. The various positioning strategies are: +, )sing spe ifi produ t features: The most popular positioning strategy is to highlight specific product features that would benefit the customer. +t times, a new product can be positioned with respect to product features that competitors have ignored. It would be advisable to highlight a specific but important feature rather than positioning along several features. /, $ositioning by pri e and =uality: In many product categories, the price (uality feature is so important that it needs to be considered in any positioning decision. The adviser may position the product as (uality product that is worth the money. #ther may
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position the product as (uality product but still at a reasonable&affordable price. 2, $ositioning by use: The brand can be positioned by associating it with a use or application. The adviser may e tend the use of the brand 3, $ositioning by user ategory: The brand may be associated with a user or a class of users. The advertiser makes use of famous personalities or models to influence the audience. 4, $ositioning by produ t lass: *ome advertisers highlight the product class association. The toilet soap Dove positioned itself apart from the soap category as a cleansing cream product for women with dry skin. 6, $ositioning by ultural sy-bols: *ome advertisers may use cultural symbols to differentiate their brands from competitors. photos

7, $ositioning by o-petitors: In some cases, a reference may be made directly or indirectly to one or more competitors. 3erhaps the most famous positioning strategy of this type was that from +vis.

8, $ositioning by produ t5s benefits:

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The advertiser can position the product on the basis of special benefit of the product. 'or e ample: Bfast to cook, good to eatC of /aggie Noodles. ;, $ositioning by orporate i-age of identity: The most common base for positioning is corporate image or identify. *cores of products or brands use their corporate names to position themselves. 3roduct ranging from health care and cosmetics to consumer durables and computers use this type of positioning.

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CASE STUDY

Apple Inc.
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INTRODUCTION pple &nc., formerly pple *omputer, &nc., is an +merican multinational corporation head(uartered in "upertino, "alifornia that designs, develops, and sells consumer electronics, computer software and personal computers. Its best.known hardware products are the /ac line of computers, the i3od music player, the iphone *martphone, and the ipad tablet computer. Its consumer software includes the #* G and i#* operating systems, the iTunes media browser, the *afari web browser, and the i7ife and iwork creativity and productivity suites. The company was founded on +pril !, !>:8, and incorporated as +pple "omputer, Inc. on Danuary ), !>::. The word H"omputerH was removed from its name on Danuary >, %??:, the same day *teve Dobs introduced the i3hone, reflecting its shifted focus towards consumer electronics. +pple is the worldIs second.largest information technology company by revenue after *amsung 9lectronics, and the worldIs third.largest mobile phone maker after *amsung and Nokia. Fortune maga$ine named +pple the most admired company in the Fnited *tates in %??<, and in the world from %??< to %?!%. =owever, the company has received criticism for its contractorsI labor practices, and for +ppleIs own environmental and business practices. +s of /ay %?!), +pple maintains 0?< retail stores in fourteen countries as well as the online +pple *tore and iTunes *tore, the latter of which is the worldIs largest music retailer. +pple is the largest publicly traded corporation in the world by market capitali$ation, with an estimated value of F*J0!4 billion as of /arch %?!). +s of *ept %> %?!%, the company had :%,<?? permanent full.time employees and ),)?? temporary full.time employees worldwide. Its worldwide annual revenue in %?!% totaled J!48 billion. In /ay %?!), +pple entered the top ten of the 'ortune 4?? list of

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companies for the first time, rising !! places above its %?!% ranking to take the si th position.

Mission Statement HTo make a contribution to the world by making tools for the mind that advance humankind.H

+pple "omputer is committed to protecting the environment, health and safety of our employees, customers and the global communities where we operate. @e recogni$e that by integrating sound environmental, health and safety management practices into all aspects of our business,we can offer technologically innovative products and services while conserving and enhancing recourses for future generations. +pple strives for continuous improvement in our environmental, health and safety management systems and in the environmental (uality of our products, processes and services. Vision and values +pple is committed to bringing the best personal computing e perience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.

PHOTOS

Foundin and inco!po!ation

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+pple was established on +pril !, !>:8, by *teve Dobs, *teve @o$niak and 1onald @ayneK!L to sell the +pple I personal computer kit, a computer single handedly designed by @o$niak. The kits were hand.built by @o$niakK%0LK%4L and first shown to the public at the =omebrew "omputer "lub.K%8L The +pple I was sold as amotherboard ,with "3F, 1+/, and basic te tual.video chips-, which is less than what is today considered a complete personal computer.K%:L The +pple I went on sale in Duly !>:8 and was market.priced at J888.88 ,J%,8>? in %?!) dollars, adjusted for inflation-.K%<LK%>LK)?LK)!LK)%LK))L +pple was incorporated Danuary ), !>::,K8L without @ayne, who sold his share of the company back to Dobs and @o$niak for J<??. /ulti. millionaire /ike /arkkulaprovided essential business e pertise and funding of J%4?,??? during the incorporation of +pple. K)0LK)4L During the first five years of operations, revenues doubled every four months, an average growth rate of :??M. The +pple II, also invented by @o$niak, was introduced on +pril !8, !>::, at the first @est "oast "omputer 'aire. It differed from its major rivals, the T1*.<? and"ommodore 39T, due to its character cell.based color graphics and an open architecture. @hile early models used ordinary cassette tapes as storage devices, they were superseded by the introduction of a 4 !&0 inch floppy disk drive and interface, the Disk II.K)8L The +pple II was chosen to be the desktop platform for the first Hkiller appH of the business world, Eisi"alc, a spreadsheet program.K):L Eisi"alc created a business market for the +pple II and gave home users compatibility with the office, an additional reason to buy an +pple II. K):L +pple was a distant third place to "ommodore andTandy until Eisi"alc came along.K)<LK)>L 5y the end of the !>:?s, +pple had a staff of computer designers and a production line. The company introduced the +pple III in /ay !><? in an attempt to compete withI5/ and /icrosoft in the business and corporate computing market.K0?L
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Dobs and several +pple employees, including Def 1askin, visited Gero 3+1" in December !>:> to see the Gero +lto. Gero granted +pple engineers three days of access to the 3+1" facilities in return for the option to buy !??,??? shares ,<??,??? split.adjusted shares- of +pple at the pre.I3# price of J!? a share.K0!L Dobs was immediately convinced that all future computers would use a graphical user interface ,NFI-, and development of a NFI began for the +pple 7isa.K0%L #n December !%, !><?, +pple went public at J%% per share, K0)L generating more capital than any I3# since 'ord /otor "ompany in !>48 and instantly creating more millionaires ,about )??- than any company in history. K00L
Branding

+pple has been building up a very big reputation and a very strong brand, I suppose that +pple is within the most e pensive brands on earth. 9verybody associates automatically +pple with innovation, design, (uality, being different, etc. +pple cannot deliver products that are not innovative, well designed or top.notch (uality, they would only destroy their own brand and reduce sales figures dramatically. Innovation and (uality are related with high price, the high price guarantees the customer that he is buying an e cellent product, this is psychologically as well as from the business side, a typical business model. The human psychology says that the higher the price, the better the product and otherwise. "heap +pple bo es would mean low (uality and a desperate need for cash, which would hurt the +pple brand in good times and maybe in a long term, be more dangerous than just trying to survive the hard times. If your break the association of +pple and (uality, which is been given by the price, you ruin your segment and deposition yourself, a catastrophic failure.
- Positioning

+pple has positioned itself to a certain type of customer, wealthy people, innovators, people with good jobs, good lifestyle, etc. If +pple targets the poor man type, the trendy guys will stop buying +pples, because everybody
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can and +pple is not the 3orsche of the computers anymore, this would hurt more the brand than maybe the increasing sales because of lower prices, and in good times, where everybody has more money, +pple would have the problem that they cannot rise prices, because everybody e pects a cheap +pple ,the macroeconomics deflation problem-.

2resence in india
+pple has seen increased success in India and is looking to significantly e pand its presence in the country. The 9conomic Times, a daily Indian newspaper, is reporting that +pple plans to triple its e clusive stores ,+pple 3remium 1esellers- from over 84 to about %?? by %?!4 and e pand the use of multi.brand stores vs. previously being focused on selling through carriers and premium resellers. Oey Takeaway: India is such a large market with a growing middle class that +pple can grow significantly. It has recently ramped its efforts and is seeing success. =owever it is late to focus on this country so *amsung ,market share of about )<M- and others have established themselves. @hile the smartphone market share is about !?M in India due to their costs, given the potential growth and si$e of the Indian smartphone market ,ID" estimates it could grow from !> million units in %?!% to !?< million in %?!8- all the major players will be very focused on this opportunity. +pple has increased its share significantly over the past nine months. It is estimated that the company2s revenue market share was ).>M in the Duly to *eptember (uarter and grew to !4.8M in the #ctober to December (uarter. +pple started an advertising campaign that promotes an upfront payment of 4,?48 rupees ,J>)- for an i3hone 4 vs. the total cost of about J<0?. The /obile*tore, an Indian retail chain which says it sells !4M of i3hones in the

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country, tripled its i3hones sales from December to Danuary which it attributed to the payment plan. +nother indication of +pple2s recent gains is an +pple premium reseller saying that its sales have gone from 1s )4,??? lakh ,J84,???- a month to 1s % crore ,J):?,???- a month per store. Due to India2s re(uirement that )?M of a product be sourced in India it will be difficult if not impossible for +pple to open any of its own stores in the country.

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p"otos

"ases for Seg-entation:

"onsumer markets can be segmented on the basis of following customer characteristics. !. Neographic

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%. Demographic ). 3sychographic 0. 5ehavioral Geographic. 5emographic. ge. NestlP segmented market for its major products based on the age. 'or the products "erelac, 7ectogen, Ooko Orunch, Nido, Nestle divided the market segment for baby and children of different ages. &ncome:
Nestle segmented their mar et !ased on "#stomer$s in"ome in an e%%e"ti&e 'a(.

)ccupation:
Nestle segmented the mar et !ased on their "#stomer$s o""#pation.

2sychographic.

3ehavioral: 3enefits:

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Target Mar.eting: /arket segmentation reveals the firm2s market opportunities. Then the firm sort market targeting by evaluating the various market segments and deciding which and how many segments it will target. +pple Inc evaluated the various market segments on the basis of segment si$e and growth, segments, structural attractiveness, and company objectives and resources and decided to launch their operation all over the country. +pple separate their target market because of having uni(ue need and wants. +pple Inc selected their target market into two market coverage strategies: )ndifferentiated: +pple has offered several products such as Nescafe ) in ! /aggi noodles, and Oit Oat to the people of the whole 5angladesh without differentiating the market segment. &ifferentiated: +pple also selects the differentiated marketing. It offers different product for different segments based on different age, occupation, season and climate.

*oncentrated. Through concentrated marketing, +pple achieves a strong market position because of its greater knowledge of consumer needs. In the niches it serves and special reputation it ac(uires. +pple speciali$es in producing baby foods. It offers nutritious milk powder 7ectogen ! for babies whose age is less than : months and lectogen ) for babies whose is under !% month. It also offers baby nutrition cerelac for baby less than ! year.

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2ositioning (trategy. 5y creating product, service, channel, people and image differentiation apple reach the consumer touch point more effectively ; efficiently in comparing with their competitors in the highly competitive food processing sector. 2roduct 5ifferentiation: apple brings a lot of product for target customers. They provide %4 types of minerals in Nido for children. It also provides "erelac and 7actogen! ;) for newly born baby e clusively. Now the doctors prescribe these products for
)!

babies to their parents for high nutrition Nescafe is a product which contains 0 types of categories. They offer Nescafe ice for hot weather, classic for all ) in ! for those who are busy. They provide /aggi including /aggi instantA /aggi % minutes which contain various minerals, vitamins and nutritions. /aggi also provide magi healthy soup and /aggi corn soup but charge the same price. *hannel 5ifferentiation. Nestle reach their products to the customers through their e pert market salesman and transportation. *o that their products are much available to their respective customers. &mage differentiation: NestlP2s logo is totally different from its competitors that are greatly accepted by its customers. 'or that reason customer easily identify them in the market which is another effective advantage for Nestle. 2eople differentiation. Nestle has a large number of employees that are highly educated and trained. In 5angladesh, 0?? employees are working in market "ompany chairmanA 3eter 5rakeck. 7etmathe and "9# 3aul 5ulcke are highly educated, wise and e perienced people. They are running this business successfully for a long time. *ervice differentiation: +nother advantage for this company is better service for its respective customers from its competitors. They provide %0 hours hot line service. =igh (uality checking is maintaining for its customers. Its marketing dept. and 31 ,public relation- dept. are working for finding out customer2s new demands and response toward their products. (electing an overall positioning strategy.

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The full positioning of a brand is called the brands value proposition.The full mi of benefits up Kon which the brand is differentiated and positioned. More for more: /ore for more positioning involves providing the most upscale product or service and charging a higher price to cover the higher cost. 9 actly Nestle is doing that. NestlP2s products provide more benefit and for that Nestle charge higher price than other competitors. Nido ensure nutrition and charge %4? tk for 0?? gm. 5ut 'resh, /arks do not ensure nutrition and charge less than that of Nido. 1espectively Nescafe, /aggi noodles ensure (uality for high price, rather than competitors. 2ositioning (tatement 3aby 2roducts: To babies who are deprived of proper nutrition, Nido, "erelac, 7actogen are the nutritious milk 3roduct that give you more nutrition than any other brand because these contain different types of vitamin, mineral etc. 'escafe: To busy people who drink coffee and have little time for taking rest, Nescafe is the coffee that gives you more energy than any other brand because it has the highest level of caffeine, Maggi: To people, noodles and soup consumer who seek better (uality, /aggi noodles and healthy soup that gives you proper nutrition than any other brand because it has the best (uality. Their motto for business is BG))5 F))5 G))5 0&F

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CONC#USION
Nestle has seen a strong start to 2))*+ partl( than s to its strateg( o% in"reasing prod#"t pri"es ,#i" l( in line 'ith "ommodit( pri"e in"reases. Thro#gh internal resear"h and de&elopment at Nestl- there ha&e also !een signi%i"ant ad&an"es in the en&ironmental impa"t o% re%rigerants and pa" aging. .itho#t "ompromising prod#"t ,#alit( there 'as a red#"tion o% 3/2 ))) tonnes o% pa" aging material !et'een 1//1 and 2))*. 0&iden"e sho's that Nestl- ad&ertised and still ad&ertises its %orm#la as a ris 1%ree s#!stit#te 2or e&en a pre%era!le alternati&e3 to its prod#"ts+ res#lting in in"reased #se.

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