MARKET

SEGMENTATION

-By
Aabhas Rustogi
Ashish Babaria
Sandeep Satishchandra
Shalini Mukerji
Contents

Market Segmentation
What is segmentation?
Why Segmentation?
What are the requirements for market
segments?
Process of segmentation
Benefits & Limitations of Segmentation
Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioural

Case Illustrations

Target marketing Strategies:

Mass Market- The term mass market refers to a large,

undifferentiated market of consumers with widely varied
backgrounds. Products and services needed by almost every
member of society are suited for the mass market. Such items
as electric and gas utilities, soap, paper towels and gasoline,
for example, can be advertised and sold to almost anyone,
making them mass market goods.

Mass Marketing 1. An attempt to appeal to an entire

market with one basic marketing strategy utilizing mass
distribution and mass media. Also called undifferentiated
marketing. Mass marketing is a market coverage strategy in
which a firm decides to ignore market segment differences and
go after the whole market with one offer. It is type of marketing
(or attempting to sell through persuasion) of a product to a
wide range of consumers. The approach results in a single
marketing plan with the same mix of product, price, promotion,
and place strategies for the entire market. The appeal of mass
marketing is in the potential for higher total profits. Companies
that employ the system expect the larger profit to result from
(1) Expanded volume through lower prices and
(2) Reduced costs through economies of scale made possible
by the increased volume. In order for the system to work,
however, certain conditions must exist. One is that the product
must have broad appeal and a few features that distinguish it
from competing products. Another is that it must lend itself to
mass production. In addition, the opportunity must exist, and
the marketer must have the ability to communicate and
distribute to the aggregate market. Two of the most widely
recognized examples are Ford and Coca-Cola. Henry Ford
applied the concept in the automobile industry. His Model T was
conceived and marketed as a "universal" carone that would
meet the needs of all buyers. By adopting mass-production

techniques and eliminating optional features, he was able to

reduce costs and sell his product at an affordable price. The
combination catapulted the Model T to the top of the market.
Also Candler was equally successful at using mass marketing in
the softdrink industry. Like Ford, he also viewed his product as
being the only one that consumers needed. His initial massmarketing efforts focused on an extensive national advertising
campaign. As product recognition grew, he established a
network of bottling operations throughout the county to
facilitate sales and distribution. No product in history has
matched Coca- Cola's total sales. Other mass marketers of this
era achieved success by focusing on one aspect of the
approach. Manufacturers such as Quaker Oats, Proctor and
Gamble, and Eastman Kodak used refined mass-production
techniques to establish consistent product quality. Still other
manufacturers, such as Singer Sewing Machine, developed
integrated distribution systems to ensure reliable delivery to
the market. In general merchandise retailing, Sears and
Montgomery Ward developed a mass-marketing niche through
mail order. Grocery retailer A&P, on the other hand, established
its mass market through private branding and systematic
operation of multiple stores. Mass marketers continued their
domination in major industries well into the 1960s. Many of
them maintained essentially the same mix, while others
expanded their use of the strategy. Sears and Montgomery
Ward, for example, added store retailing in the 1920s. In the
1930s, supermarkets appeared with a different emphasis than
previous grocery retailersnational brands. Over the next
several decades, large discount stores came into prominence
with a format similar to the supermarkets.

Differentiated Marketing- Is a market segmentation and

market coverage strategy whereby a product is developed and
marketed for a very well-defined, specific segment of the
consumer population. The marketing plan will be a highly
specialized one catering to the needs of that specific consumer

segment. Concentrated marketing is particularly effective for

small companies with limited resources because it enables the
company to achieve a strong market position in the specific
market segment it serves without mass production, mass
distribution, or mass advertising. It enables firms to capitalize
on the respective serve market share.

Niche Marketing- The strategy of developing a single

marketing mix aimed at one target market (niche) is called
focused marketing or niche marketing. For example- Marketing
and promoting a book to a specific group of buyers, such as
people in a certain geographical region, or people with a
specific hobby or interest. Books published for a niche market
may be sold nationally, but mainly are sold through specialized
retail outlets. Here is another example of niche marketing: a
brand new print magazine, called Magazine Soho. The
publication targets not small business a broad category to be
sure. No, it targets a segment of small business: Sohos small
office, home office workers and with a particular geographic
emphasis on southeastern Wisconsin, USA.
Customised Marketing- A type of marketing method whereby
an advertiser tries to customize the message to the unique
needs of a specific customer or specific subset of customers.
Custom marketing is usually targeted toward a high net worth
niche. A fascinating development in marketinng in recent years
has been the introduction of mass customization in consumer
markets. This is the marketing of highly individual products on
scale. Car companies like Audi, BMW, Mercedes Benz and
Renault have the capacity to build to order where cars are
manufactured only when there is an order specification from a
customer. Dell builds customized computers ordered online.

Market
segmentation
Today the market is not a single homogenous group.
Mass markets are breaking up into dozens of mini
markets each with its own special needs .This is known
as segmentation. It involves using separate marketing
programs to sell to different market segments.
Definition:1. Market Segmentation is the sub-dividing of
customers
into
homogenous
sub-set
of
customers where any sub-set may conceivably
selected as market target to be reached with
distinct Marketing Mix Philip Kotler
2.Market Segmentation consists of taking the
total heterogeneous market for a product &
dividing into several sub-market of segments,
each of which tends to be homogenous in full
significant aspects William Stanton

3. Segmentation is essentially the identification

of subsets of buyers within a market that share
similar needs and demonstrate similar buyer
behaviour. The world is made up of billions of
buyers with their own sets of needs and
behaviour. Segmentation aims to match groups
of purchasers with the same set of needs and
buyer behaviour. Such a group is known as a
'segment'.
4.The process of defining and subdividing a large
homogenous market into clearly identifiable
segments having similar needs, wants, or
demand
characteristics
is
called
Segmentation. Its objective is to design a
marketing mix that precisely matches the
expectations of customers in the targeted
segment.
5. Market Segmentation is the marketing process
of identifying and breaking up the total market
into groups of potential customers with similar
motivations, needs or characteristics, who are
likely to exhibit homogeneous purchase
behaviour. Undertaking this process allows
marketing efforts to be targeted at select
groups.
6.Market segmentation involves
of a market into distinct
customers, where any subgroup
as a target market to be met
marketing mix. - CIMA

the subdividing
subgroups of
can be selected
with a distinct

7.Market segmentation is a technique based on

the recognition that every market consists of

potential buyers with different needs and

different buying behaviour. These different
customer characteristics may be sub grouped
(or segmented) and a different marketing mix
applied by an organisation to each target
market segment. CIMA

8 A marketing term referring to the aggregating

of prospective buyers into groups (segments)
that have common needs and will respond
similarly to a marketing
action. Market
segmentation enables companies to target
different categories of consumers who perceive
the full value of certain products and services
differently from one another.
9. Market Segmentation is the process of
splitting customers, or potential customers, in a
market into different groups, or segments,
within which customers share a similar level of
interest in the same or comparable set of needs
satisfied by a distinct marketing proposition.
10. Market segmentation is the process of
dividing the whole market of a good or service in
groups of people with similar needs. By making
this division there is a high chance that each
group responds in favour to a specific market
strategy.
Segmentation is a form of critical evaluation rather
than a prescribed process or system, and hence no
two markets are defined and segmented in the same
way. However there are a number of underpinning
criteria that assist us with segmentation:

Is the segment viable? Can we make a profit from

it?

Is the segment accessible? How easy is it for us to

get into the segment?

Is the segment measurable? Can we obtain

realistic data to consider its potential?
There are many ways that a segment can be
considered. For example, the auto market could be
segmented by: driver age, engine size, model type,
cost, and so on.

WHY SEGMENTATION?

According to the Peter Francese a consultant to Ogilvy

& Mather an advertising megalith, & the author of the
research report 2010 America
There is no more Average American." Fifty years
ago, the concept of John Doe, an average American in a
relatively even society where vast numbers of people
had similar consumer needs, was real. A societal
uniformity existed that has not been equalled since.
The 2010 census results will put a nail in that coffin.
America, or for that matter most of the developed
countries, are multicultural nations. In the US no race or
ethnicity comprises a majority of the population
anymore. No segment forms a majority in their 10
largest cities. Also family life has diversified. Twenty
five years earlier, two-thirds of the population consisted
of married couples. However same is not the case
today, as more & more no. of people prefers living
alone.
All this has resulted in a diverse population which
makes it almost impossible to sell a product by mass
marketing .The right market for your product needs to
be selected before making any other move.
Choosing the right markets is one of the most
important strategic decisions you can make for your
business. Resources spent on choosing the wrong
markets are resources not spent on choosing the right
markets.
Grouping customers into market segments is standard
business practice. The more a market suffers from over
supply and under demand - the new status quo in a

relentlessly globalizing economy for both hi tech and

low tech goods and services the more vital it becomes
to identify, and perhaps help create attractive sub
markets and provide tailor value propositions for them.
That is what apple has done with the iPod and iTunes
under Steve Jobs leadership. The iPod and iTunes have
not only boosted Apples bottom line, and quite
separately increased the sales of its Macintosh
computers, but have also accelerated the growth of the
mp3 player market as a whole.
Segmentation is both a science and an art. It demands
a high degree of insight into customers and
competitors. You can not do it well using only methods
based on simple demographics. How, for example,
would you segment the dog food market? You might
start of, as some have done, on the basis of type of dog
old dogs versus small dogs, big dogs versus little
dogs. But think how much greater insight you might
gain from examining the relationship between owner
and dog, and the emotional relationship embodied in
the owners choice of dog food: dog as grand child
( indulgence), dog as child (love), dog as best friend
(health and nutrition) and dog as dog (cheap/
convenient fuel).
When we accept the fact that average consumers and
average people dont exist, we can use market and
consumer segmentation to:

increase marketing effectiveness,

generate greater customer satisfaction,

create savings,

And to identify strategic opportunities and niches.

Even when a company can afford to target an entire
market, it is more successful if products and
communications are adapted to individual segments.
A company has to evaluate each segment based upon
potential business success. Opportunities will depend
upon factors such as: the potential growth of the
segment the state of competitive rivalry within the
segment how much profit the segment will deliver how
big the segment is how the segment fits with the
current direction of the company and its vision.

Segmentation
erosion.

drives

conversion

and

avoids

Requirements of Market Segments

In addition to having different needs, for segments to
be practical they should be evaluated against the
following criteria:

Identifiable: the differentiating attributes of the

segments must be measurable so that they can be
identified.

Accessible: the segments must be reachable

through communication and distribution channels.

Substantial: the segments should be sufficiently

large to justify the resources required to target them.

Unique needs: to justify separate offerings, the

segments must respond differently to the different
marketing mixes.

Durable: the segments should be relatively stable

to minimize the cost of frequent changes.
A good market segmentation will result in segment
members that are internally homogenous and
externally heterogeneous; that is, as similar as
possible within the segment, and as different as
possible between segments.

The Process of Segmentation:

Identify the total
market

Determine the segmenting

dimensions

Profile each

Assess segment
attractiveness

Select target
market

Determine (marketing
mix) for each segment

Benefits of Segmentation:
The Organisation gets to know its customers better.
Provides guidelines for resource allocation.
It helps focus the strategy of the organisation.

Limitations of the Segmentation:

Targeting multiple segments increases marketing
costs.

Segmentation can lead to proliferation of products.

Narrowly segmenting a market can hamper the
development of broad-brand equity.

Bases for Segmentation in Consumer

Markets
Consumer markets can be segmented on the following
customer characteristics.

Geographic

Demographic

Psychographic

Behavioural

Geographic Segmentation
The following are some examples of geographic
variables often used in segmentation.

Region: by continent, country, state, or even

neighborhood

Size of metropolitan area: segmented according to

size of population

Population density: often classified as urban,

suburban, or rural

Climate: according to weather patterns common to

certain geographic regions

Demographic Segmentation:
Demographic segmentation divides the market into
groups based on demographic variables including
age, gender, family size and life cycle.
The following four variables are examples of
demographic factors used in market segmentation:
1. Age: Consumer needs and wants change with age.
The marketing mix may therefore need to be adapted
depending on which age segment or segments are
being targeted.
2. Gender: Dividing a market into different groups
based on sex, has long been common for many

products including cosmetics, clothing and

magazines. In the 1960's car companies such as
Toyota began to realise the purchasing power of
women, creating marketing campaigns, and then cars,
specifically targeted at the female market. Many
suggest that the range of interior and exterior colours
schemes, and emphasis placed on safety factors by car
manufacturers today, is due to in no little part to their
desire to market cars to women, as well as men.

3. Life-cycle stage: Dividing a market into

different groups based on which stage in the
life-cycle, presented in the table below,
reflects the fact that people change the goods
and services they want and need over their
lifetime.

Life-cycle stages
Bachelor
Stage
Newly
Married
Couples
Full Nest I
Full Nest II

young, single people not

living at home
young, no children

youngest child under six

youngest child six or over
older married couples with
Full Nest III
dependent children
older married couples, no
Empty Nest I
children living with them
older married couples, retired,
Empty Nest II
no children living at home
Solitary
in labour force
Survivor I
Solitary
retired
Survivor II
4. Income:
Income segmentation is a long standing practice in
such categories such as automobiles, clothing,
cosmetics, financial services and travel. However,
income does not always predict tehe best customer for
the products.
For example, there is a considerable amount of
difference in the PDIs of USA and India. Levi-Strauss
launched premium lines such as Levis Capital E to
upscale retailers Bloomingdales and Nordstrom, and
the less expensive Signature by Levis Strauss & Co.
lines to mass market retailers Wal-Mart and Target.
Signature was positioned as apparel targeted at the

middle bracket. Whereas Levis Strauss & Co. launched

Signature (now Denizen) in India and positioned it as
apparel targeted at the upper bracket youth in India.
This example clearly illustrates the effect of income in
different countries with different levels of personal
disposable income.
5. Race and Culture:
Multicultural Marketing is an approach that different
ethnic and cultural segments have sufficiently different
needs and wants to require targeted marketing
activities. Race has little importance in India. India
however is a country of Multiple Ethnicities.
Multicultural Marketing is still in its nascent stages.

Some other demographic segmentation variables

include:

Family size

Generation: baby-boomers, Generation X, etc.

Occupation

Education

Ethnicity

Nationality

Social class

Psychographic Segmentation
Psychographic segmentation groups customers
according to their lifestyle. Activities, interests, and
opinions (AIO) surveys are one tool for measuring
lifestyle. Some psychographic variables include:

Activities

Interests

Opinions

Attitudes

Values

Psychographics is the science of using psychology and

demographics to better understand consumers.
Segmentation- buyers are divided into groups on the
basis of psychological/personality traits, lifestyle or
values.
By psychographic variables we refer to any attributes
relating to personality, values, attitudes, interests, or
lifestyles. They are also called AIO variables (for
Activities, Interests, and Opinions). Psychographics
provide a useful supplement to demographics.
Psychographics focus on general buyer habits, social
class, lifestyles, and attitudes as they might relate to a
specific product class. Lifestyle is concerned with the
activities, interests, and opinions concerning leisure
time, work and consumption of the buyer alone or with
other with respect to both general behaviour and the

specific product class. For example, the buyers of Isuzu

Motors line of trooper sport utility vehicles tend to be
more environmentally conscious and outdoor minded
than other consumers.
One of the most common psychographic profiling
schemes is the VALS, developed by SRI International,
INC. VALS defined adult consumers into eight
segments. They are
1. Innovators
2. Thinkers
3. Achievers
4. Experiencers
5. Believers
6. Strivers
7. Makers
8. Survivors
Psychographic
considers
a
number
of
potential influences on buying behaviour, including the
attitudes, expectations and activities of consumers. If
these are known, then products and marketing
campaigns can be customised so that they appeal more
specifically to customer motivations.
The main types of psychographic segmentation are:
Lifestyle different people have different lifestyle
patterns and our behaviour may change as we pass
through different stages of life. For example, a family
with young children is likely to have a different lifestyle

to a much older couple whose children have left home,

and there are, therefore, likely to be significant
differences in consumption patterns between the two
groups. One of the most well-known lifestyle models,
the sagacity lifestyle model, identifies four main
stages in a typical lifestyle:
Dependent (e.g., children still living at home with
parents);
Pre-family (with their own households but no children);
Family (parents with at least one dependent child); and
Late(parents with children who have left home, or older
childless couples).
Each group is then further subdivided according to
income and occupation.
Opinions, interests and hobbies this covers a huge
area and includes consumers political opinions, views
on the environment, sporting and recreational activities
and arts and cultural issues. The opinions that
consumers hold and the activities they engage in will
have a huge impact on the products they buy and
marketers need to be aware of any changes. Good
recent examples include the growth of demand for
organic foods or products that are (or are perceived
to be) environmentally friendly.

Behavioural Segmentation
Behavioural segmentation is based on actual customer
behaviour toward products. Some behavioralistic
variables include:

Benefits sought

Usage rate

Brand loyalty

User status: potential, first-time, regular, etc.

Readiness to buy

Occasions: holidays and events that stimulate

purchases
Behavioural segmentation has the advantage of using
variables that are closely related to the product itself. It
is a fairly direct starting point for market segmentation.
Behavioural segmentation divides customers into
groups based on the way they respond to, use or know
of a product.
Behavioural segments can group consumers in terms
of:
Occasions
When a product is consumed or purchased. For
example, cereals have traditionally been marketed as a
breakfast-related product. Kelloggs have always
encouraged consumers to eat breakfast cereals on the
"occasion" of getting up. More recently, they have tried
to extend the consumption of cereals by promoting the
product as an ideal, anytime snack food.

Usage
Some markets can be segmented into light, medium
and heavy user groups.
Loyalty
Loyal consumers - those who buy one brand all or most
of the time - are valuable customers. Many companies
try to segment their markets into those where loyal
customers can be found and retained compared with
segments where customers rarely display any product
loyalty. The holiday market is an excellent example of
this. The "mass-market" overseas tour operators such
as Thomson, Air tours, JMC and First Choice have very
low levels of customer loyalty - which means that
customers need to be recruited again every year.
Compare this with specialist, niche operators such as
Laskarina which has customers who have travelled with
the brand in each of the last 15-20 years.
Benefits Sought
It is an important form of behavioural segmentation .
Benefit segmentation requires Marketers to understand
and find the main benefits customers look for in a
product. An excellent example is the toothpaste market
where research has found four main "benefit segments"
- economic; medicinal, cosmetic and taste.

GEOGRAPHIC SEGMENTATION:
CASE STUDY
TATA SALT
The Maine desh ka namak khaya hai TATA
advertisement campaign in 2002 offered viewers an
instant connection. In India, salt and loyalty have been
associated from time immemorial. Namak halal and
Namak Haram are commonly used terms for honoest
and dishonest people respectively. According to cultural
connotations, after consuming salt at a persons house
the one who has consumed the salt should not cheat
his/her host. The campaign connected with the
consumer at an emotional level.
TATA Chemicals Ltd (TCL) started manufacturing salt in
1939 after establishing a solar salt works at Mithapur,
Gujarat. It pioneered the concept of iodized and
vacuum-evaporated salt in India in the early 1980s and
created a need that was not felt by consumers before.
Interestingly, the opportunity came accidentally, when
in 1983, the company needed fresh water for its boilers
that produced soda ash at its Mithapur plant in Gujarat.
As fresh water was scarce in the area, the company
began processing sea water. Salt of high quality was
the by-product. Estimated to be worth Rs.10 billion,
TATA has a 21% share in the packaged iodized salt
industry in India. According to A.C. Neilson in Brand
Track 2002-03, 90% of the people surveyed across the
country had tried TATA salt at least once. The salt
market is pegged at five million tones out of which 1.5

million tones are of the branded variety. TATA salt leads

the market with a 40% share. According to analysts,
TATA was able to get the leadership position in the
category as it had the first mover advantage. Some
competing brands include Annapurna from HLL, Dandi
from Kumwar Ajay industries, Shudh from the Mirma
Group, Captain Cook from DCW Home foods, Ashiwaad
from the ITC stable, besides some international brand
likeCargil and Congra. From vaccum-evaporatedto
iodized from free flow to danedar, one does not see
much brand differential among competitive brands,
hence the need for a strong and memorable advertising
plank and better packaging. One finds vigorous
advertising by major players in the mass media.
Looking at the overseas potential, TATA, according to
industry buzz, is exploring the Middle East market and
those of neighboring countries like Nepal and
Bangladesh.
Tetleys overseas distribution network could come in
handy for marketing the salt in these countries. In order
to expand the user base, TATA salt that is priced at Rs 8
per kilogram, against un-branded salts at Rs 3-4 per kg.
The company has launched its economy brand
Samundar at Rs 5 per kg. Purity, trust, and value have
been the planks of its communication strategy. The
earlier catch-line, Namak ho TATA ka, TATA namak,
was changed when more competitors came into the
market, and the need for an emotional bond was felt.
Besides an aggressive approach to branding, the
company improved packaging, sales, and supply chain

management. Figure 1.11 (see plate 2) shows its new

packaging. According to company sources, consumer
research by TATA Chemicals in June 2002 revealed that
people had a sense of insecurity and disgust for
corruption, which they thought were eroding Indian
democracy. The insights that the research provided
helped in tapping patriotic and nationalist fervour. TATA
took the opportunity to be associated with the universal
theme of remaining true to ones salt and to ones
country. This was the philosophy behind the Meine
desh ka namak khaya hai tagline. The new packaging,
with the visual of delectable cuisine, backed this.
Vacuum evaporated and iodized were clearly written
on the pack a plank that other competitors also used.
The advertisement with the visual of a banana leaf and
a pinch of salt in a corner (a traditional serving in south
India) with the headline (figure 1.12): To Indian
housewives, our salt always comes first and the
catchline Meine desh ka namak khaya hai was
considered by analysts as amongst the greatest
advertisements when it appeared. In order to connect
with communities, TATA salt has used public relations to
sustain the brand on a long term basis. Since the lauch
of the Desh ka namak campaign in 2002, during some
specified months, a small percentage of money that
accurues from the sale of TATA salt is set aside for
economcically disadvantaged children. In the twoyears
since the lauch, 25,000 children have been provided
with one year of education.

Ghari Detergent did the Nirma Act

Recently Ghari detergent has surpassed several
multinational brands to become the second largestselling detergent in the country. Three years ago, Ghari
had a share of 10 per cent which now stands at 17%,
second largest in Indian market. Out of Rohit
Surfactants (Parent Company) Rs 1,940-crore turnover
in 2009-10, Ghari contributed as much as Rs 1,825
crore.

Question arises how Ghari Detergent, a Kanpur based

brand with low advertising and promotional activities
managed to defeat brands such as Tide and Nirma.
The answer lies in beautifully carfted strategy, but
before that lets have a look on some industry statistics
to gain a better understanding

What Ghari Did (The Strategy):

1.

Select a Profitable and Force Concentration:

In military terminology Force concentration is the
practice of concentrating a military force, so as to
bring to bear such overwhelming force against a
portion of an enemy force that the disparity between
the two forces alone acts as a force multiplier, in
favour of the concentrated forces. Ghari also realized
that it can not beat Giants like HU and P&G due to
their financial muscle. So it selected Uttar Pradesh,
with a population of 167 million (highest in India) and
accounts for over 12% of the countrys FMCG sales.
Ghari also implemented extensive dealer network
throughout the state. Thus, of the 3,000 Ghari dealers
in the country, 900 are in Uttar Pradesh 25 of them
in Kanpur alone. Furthermore, nine of the companys
18 manufacturing units are in Uttar Pradesh

2.

Know your consumer and reason to people

consumer your product: Ghari focused on
housewives in small town and villages which are
extremely value conscious buyer and willing to switch
brands. Ghari realized that the only differentiating
factor it can offer is the value of money. To offer value
for money Ghari management settles the net profit
margin of 9% against the industry standard of 12 to
13% for the premium brands. What may work in
Gharis favour is the higher profit margin of 9% the
company offers its dealers; rivals seldom offer better
than 6% or 7%

3.

Be innovative in reaching the consumers:

With only 35 crores of budget allotted to Marketing
and promotional activities. Ghari detergent goes to
train.

4.
1.

The first campaign was the Ghari Detergent

Express (a summer special) in 2008 that ran between
Lucknow and Guwahati for two months

2.

Taking the cue from there, Ghari has now

advertised in Pushpak Express that runs between
Lucknow and Mumbai. The brand can also be seen on
railway crossings in West Bengal and Uttar Pradesh.
Advertisements also being displayed inside the bogies
of Swarna Jayanti Express (from Trivandrum to Hazrat
Nizamuddin in Delhi) last year that cuts across three or
four states in south India

In addition, Rohit Surfactants promotes Ghari at

roadside shows, magic shows and exhibitions in smaller
towns and cities. Customers are unlikely to see other
brands at these places an innovative idea to break
the clutter. The magic shows have given Ghari good

visibility in cities like Jaipur, Indore, Kota, Alwar and

Kanpur. About 30 company-owned vehicles are used for
out-of-home advertising. Of late, the company has
taken some tentative steps towards the popular media.
It has sponsored a show, Rakt Sambandh, on NDTV
Imagine.
Case of Ghari detergent highlights that how a mediocre
brand can compete successfully with big brands with a
clear strategy and vision.
But in the same time sacrificing your margin and
competing on the basis of price alone are not the part
of sustainable competitive advantage and journey
ahead is not going to be a cakewalk for Ghari Detergent

DEMOGRAPHIC SEGMENTATION: (Age)

Case Study Haagen-Dazs
INTRODUCTION:

Haagen-Dazs were the pioneers in the market for

creating distinctive and indulgent taste experiences by
marketing to an untapped segment - the adult ice
cream lovers. The Haagen-Dazs brand quickly
developed a loyal following. Its early success was
created by word of mouth and praise. Without the
benefit of advertising the story of an incredibly rich and
creamy confection spread rapidly. At first, it was only
available at gourmet shops but soon distribution
expanded In 1983 Haagen-Dazs was sold to The
Pillsbury Company, which remained committed to the
tradition of superior quality and innovation on which
Haagen-Dazs was founded. Since then, it has become a
global phenomenon. Ice Cream lovers the world over
now recognize the unique Haagen-Dazs logo as
synonymous with the ultimate super-premium ice
cream. However, for the company to reach where it is
today, a sincere marketing effort was undertaken from
its early days to understand customers and their needs.
Since the beginning, Haagen-Dazs has kept a keen
focus on developing an internal & external marketing
orientation. They obtained their current competitive
strengths to establish premium pricing from:
*Developing the brand with an attached history of
perfection and luxury *Using the finest ingredients to
deliver product excellence *Invested in consumer
research to understand tastes and preferences of
customers *Used selective distribution and did not
mass market until the minimum critical mass of opinion
leaders were established *Did not change their
objectives
in
between
*Used
creativity
and
innovativeness to support brand identity This report will
discuss in detail the evidence that Haagen-Dazs does,
indeed, practise the marketing concept of keeping
customers needs as a priority for the rest of the

business

to

follow.

COMPETITOR ANALYSIS Year by year, new products and

their competing items has entered into the field and
has successfully created a slot for them. This
phenomenon is greatly supported by the open down
policy of the local government to the people coming
from other lands for settlement and tourism. Ice creams
are a product that has not seen their prime in the U.A.E.
Its potential is tapped in a meagre form. Not that the
commodity is in short supply. There is ample ice-cream
available even at the moment. But, there is great scope
of habitualising the inhabitants of this place to
consume more of the product, by exploiting the U.A.E.
climate to its best potential. The United Arab Emirates
has an ice cream market of Dh140 million, yet it has
one of the lowest consumption (6.00 per capita/ pints)
of ice-cream when compared to Australia which
consumes 36.87 per capita / pints and USA 30.04
pints . In spite of these low figures, Haagen-Dazs began
its Middle East venture by opening its outlet in Al Diyafa
Street in Satwa and from then on rapidly opened up
cafes in Deira City Centre, Rigga Street, Palm Strip
Shopping Mall and Thunderbowl. However, prior to their
entry into this market, a proper industry analysis was
undertaken, similar to the one described below using
the
Porter's
Industry
Analysis.
Rivalry in the Industry - Medium Rivalry is strong due to
a number of factors. Ben & Jerry's and Haagen-Dazs
dominate the global super-premium ice cream market.
Each of these competitors has approximately 42% of
the market, with the remaining 15% being divided up
between a numbers of smaller firms that compete on
either a local or national basis. However, within the
U.A.E., Haagen-Dazs made its entry while Ben & Jerry's
were
still
concentrating
on
Europe.

Globally, Haagen-Dazs was competing for a larger slice

of what was a shrinking pie. The ice-cream sector has
been stagnating in the recent years. In addition to this,
new government labelling regulations, a rise in
consumer price sensitivity, and other factors have led
to further slow growth. In the U.A.E. however, the major
competitor at the time was the highest priced icecream at that stage, namely Baskin Robbins. Baskin
Robbins ice-cream parlours are still not considered
direct competitors because they do not portray the
image and class associated with a Haagen-Dazs caf.
Further, industry lead times for copying a new flavour
are lowering, making it harder to maintain a
competitive advantage in this area. Haagen-Dazs has
been facing intense competition from a relatively
similar priced entrant 'London Dairy' which has
positioned itself as a premium ice-cream but still made
itself accessible at every petrol station and
convenience store in town. Haagen-Dazs quite readily
imitated them and are now available in select petrol
pumps
and
supermarkets.
Threat of new entrants - Weak Though there are a
significant number of competitors in the market, the
largest firms still have such large market shares that
they are somewhat "insulated" against smaller
competition. Barriers to entry into this market are
relatively low, especially since a firm that already
competes in the premium or standard ice cream market
could easily convert to the super-premium market
(though not with guaranteed success). There is not a
significant threat for a new firm to enter the market and
establish it as a rival to the main competitors though
brands like Unikai, Kwality and London Dairy have been
introducing ice creams to attract this market.

Substitute Products - Weak this is not a significant

force, even though there are a number of substitute
products for this market. Because this is the superpremium ice cream and yogurt market, and the
products have prices that reflect this super-premium
standard, the buyer who is interested in this type of
product is probably going to be an ice cream lover that
is willing to pay the extra price to receive the higher
level of quality. One of the driving forces in this industry
is the ability to produce a range of flavours, and to keep
introducing new ones. Many sales could be attributed to
the buyer attempting to satisfy a craving for some
unconventional flavour of ice cream. Such a buyer
would probably not be satisfied with a substitute
product. Though there is sure to be some competition
from products such as high quality cakes and
cheesecakes, other frozen dessert products, and other
snack products such as chips and dips, these products
are not a significant factor to this super-premium ice
cream
market.
Power of Suppliers - Weak this force is also weak since,
in some cases, Haagen-Dazs is paying well above
market prices in an effort to stay true to their mission
of producing super-premium quality ice-cream and
exotic flavours. Should the need arise; it would be quite
easy for them to find a new supplier for any of its
products. The advantage the Haagen-Dazs and Baskin
Robbins have over the smaller producers are that since
they purchase on a global scale, being such a large
buyer, gives them more power in the supplier/buyer
relationship.
Power of Buyers - Strong this is obviously not a product
that is necessary to the consumer. There is a declining
level of the price elasticity of demand. This puts more

of the power in the relationship into the hands of the

consumer. Producers in this market must respect this
and be sensitive to consumer attitudes concerning their
products or face declining sales. Most of this revolves
around flavours that they produce and for this reason,
Haagen-Dazs is continuously innovating on newer and
more exotic flavours to keep their customers
continuously
attracted
to
them.
FOCUS
ON
CUSTOMER
NEEDS
Haagen-Dazs
continuously researches its market because this is
exactly what got them into the business in the first
place. Effective marketing is based on three key
elements, the marketing philosophy, and market
segmentation and consumer behaviour. Haagen-Dazs
has been noted to practise the consumer-driven
philosophy whereby they rely on research to discover
consumer preferences, desires and needs before
production actually begins. This philosophy stresses the
need for marketing research to be conducted in order
to better understand where or who a market is and to
develop a strategy targeted toward that group. The
core business they are in is production of ice-cream.
This industry primarily focuses on consumer tastes and
preferences and only research can help identify these.
However, it is not enough that research is conducted
only prior to production of a particular flavour. They
need to constantly research the movement of this
flavour in the market and get feedback from customers
about this. Market research has given Haagen-Dazs
many advantages, such as, *Unique environmental
insight, which they used to spot opportunities others
overlooked - Reuben Mattus found a segment in the
market he believed to be un-served, namely, the adult
ice-cream lover segment. While other companies
focussed on enticing kids with ice cream, Mattus

decided to tap the older, mature segment that had the

disposable
income
to
'indulge'
them.
*Are proactive to competitor moves by following them
closely - Haagen-Dazs quite readily met all of
competitors' Ben & Jerry's moves by continuously
introducing new flavours focussing on their niche while
others lost focus and were mass marketing heir ice
creams. This helps makes them fiercely competitive
constantly
striving
to
defend
their
turf.
*Identify customer wants thus focussing energies on
giving them exactly what they want - research helped
them realise that Japanese love tea and hence
introduced the Green Tea flavour which was an instant
success
in
that
market
.
They are not the only ones undertaking market
research. The UK Super Premium ice cream market had
a retail value of 56 million in the UK in February 2000.
Ben & Jerry's accounted for fully 83 per cent of the
overall growth in the UK Super Premium market in
2000. Multiple grocers account for 70 per cent of all
Super Premium ice cream sold in the UK, and in
September 2000 Ben & Jerry's secured parity with
Haagen-Dazs in terms of sales through this channel,
with Ben & Jerry's securing a 52 per cent share of the
market as against 48 per cent for Haagen-Dazs . In the
U.A.E. though, despite being of reasonably higher price,
the brand established itself quite comfortably as a
'must try' product among the elite and middle-class.
This is exactly what Haagen-Dazs had hoped to achieve
when it first came here. The management were
counting on the expat population of the U.A.E. who
were already familiar with the brand to spread word of
mouth about its high quality, unique flavours and
prestige
associated.

MARKET SEGMENTATION As simple as it looks; every

little detail of the ice cream is meticulously planned for
the final consumer to buy the product. Of the money
that goes into paying for the ice cream, nearly 80% is
returned into marketing costs for the company. The rest
of the 20% represents the actual production costs.
Consumers are an integral part of the industry and the
market research helps identify the core market
segments
that
Haagen-Dazs
caters
to.
Market segmentation is the process of identifying a
specific set of characteristics that differentiate one
group of consumers from the rest. In respect to ice
creams, although many people eat them, the market
can quite easily be segmented on bases of taste and
price. Some individuals prefer high-quality ice cream
made with real sugar and cream because of its taste
while others cannot tell the difference in quality and
would buy primarily based on price and availability.
Lower-priced competitors are into mass marketing while
premium priced ice creams makers have followed a
niche strategy to target that one single segment
consisting of affluent upper-middle to upper class
segment.
Haagen-Dazs uses a few main segmentation bases for
dividing their market, namely, demographic, sociocultural and psychographic. Under demographic
segmentation, they focus on the income bracket of
consumers. Their products are mainly aimed at the
affluent with higher disposable income to spend on
frivolous luxuries like super-premium ice cream.
Although they do not segregate flavours by gender
they do tend to highlight he romantic and sensuous
image of ice-cream by featuring couples in all their
international adverts. They tend to link their ice creams

directly to sex in order to highlight that the indulgence

and pleasure felt is similar in both cases and just as
fulfilling for inner desires. This leverage gives it
extreme importance among the adult population as
they can understand this feeling and hence relate
consumption of this product directly to this feeling.
The socio-cultural segmentation looks at various
cultures and nationalities and their preferences. Certain
cultural groups tend to have similar needs especially
when it comes to food, confectionery and drinks. For
this, Haagen-Dazs has taken into account various
national tastes and preferences in their innovative
product line by introducing flavours like Cheesecake ice
cream for the UK, Green Tea ice cream for Japan,
Belgian chocolate for those in East Europe, and so on.
Finally, probably the most important type of
segmentation bases in this case is the psychographic
segmentation. To be attracted to eating super-premium
ice cream, people need to be part of a particular
lifestyle segment. They should technically be among
those that enjoy the luxury and indulgence associated
with the brand. Haagen-Dazs has been portrayed to be
a reflection of pleasure and for this reason, the brand
creates an ambience behind its cafes too by ensuring
that furniture is cosy and in deep shades of browns,
burgundy and red to add a feeling of cocooning and
intimacy
.
Using these segmentation means, Haagen-Dazs has
narrowed down its business to cater to specifically two
main target markets, namely, *Affluent, pleasure
seeking adults who are generally brand conscious,
innovators & trend followers *Health conscious, young
adults who are interested in desserts but prefer natural

ingredients and low fat substitutes By identifying only

two target segments and focussing on a small but
profitable segment of the market, Haagen-Dazs is
practising a niche market strategy. They have been
fairly successful in identifying and catering to this
segment and this can be determined by their growth
from gourmet stores in New York City to its global
presence now in over 54 countries. Identification which
segments is profitable to market to be not enough.
Companies need to design a marketing mix to cater to
each of these segments. The next section discusses
Haagen-Dazs current marketing mix for the mentioned
segments.
MARKETING
MIX
INDULGENT
&
AFFLUENT
ADULTSHEALTH CONSCIOUS ADULTS PRODUCT - All
products made with exotic ingredients to add to the
luxury and fine taste by sourcing nuts from Hawaii,
vanilla from Madagascar, and chocolate from Belgium,
etc.
- Ice cream flavours ranging from Bailey's Irish Cream
and Blueberry Cheesecake to Cherry Vanilla and
Chocolate Caramel, etc. Velvety Gelato in flavours from
Cappuccino to Raspberry. Ice cream, sorbet, gelato bars
for the adult palate in all flavours of the tubs - Frozen
yoghurts where the fat content is derived directly from
fresh cream and fresh egg-yolk. Sorbets are sweetened
only with 'pectin' which is derived from fruit sugar thus
ensuring no extra artificial sweeteners - All low-fat bars
& tubs are marked with accurate calorie counts and fat
content on the packaging to ensure that this segment
knows exactly what it's eating PRICE - premium priced
at AED 7-10 a scoop while regular ice-creams are only
priced at a maximum of AED 5 per scoop - no price
discounts or special offers to keep in line with the
luxury and prestige associated with the brand - for the

health conscious, Haagen-Dazs have not reduced price

to try and attract them simply because this segment
already exists and they are willing to pay the same
amount and purchase the product PROMOTION although initially advertising was only through word of
mouth, today Haagen-Dazs uses its print adverts to
entice customers worldwide. Due to regulations in the
Middle East region, they have refrained from linking
their product attributes to sex, intimacy, alcohol, etc.
and have focussed on highlighting the pleasure of
eating ice cream made from the finest ingredients in
the world - advertising for this segment has focussed
on the fact that you can still maintain a great body and
still treat yourself to an occasional ice-cream and not
add on pounds for it - in store displays of the actual
number of calories in each scoop and endorsements
from fitness conscious stars are evidence enough of
how Haagen-Dazs is continuously trying to attract
people from this segment.
PLACE - cafes with comfortable seating for couples, bar
stools, dim lighting, rich colours all help to create an
ambience of intimacy & love - all cafes are located on
prime streets or malls where young adults tend to hang
out or socialise thus enabling maximum accessibility for
the elite - focus for this segment has moved away from
actual cafes where they may be tempted by the nonlow fat products and towards supermarkets, petrol
pumps and other convenient areas where they can pick
a
scoop
while
there
on
go.
The current marketing mix does quite effectively meet
the needs of the target segment and my only
recommendation to Haagen-Dazs would be to start
targeting emerging segments such as the affluent
teenage segment that would have more time to spend

in cafes and who would be more easily convinced to

experiment
with
flavours.
Haagen-Dazs major success factor was the way it
positioned itself in the minds of the consumer. It took a
strategic marketing outlook to achieve this positioning.
All said and done, Haagen-Dazs core business is still in
the production of ice cream. However, differentiation
using the finest products and developing of a premium
ice cream brand was the positioning they portrayed.
The next section will look into how they achieved this.
POSITIONING Superior flavour and texture are principal
to Haagen-Dazs and their definition of quality extends
much further. From the ingredients they choose to the
recipes they develop, from the packaging materials
they select to the care with which they deliver the ice
creams, from the ambience of each Haagen-Dazs caf
to the attention with which they serve, the HaagenDazs brand quite obviously signifies its commitment to
perfection. However, it is not enough that they believe
they have done this. At the end of the day, the
customers would base their decision on the tangible
aspects of the brand such as the taste of the products,
the quality of service offered at the cafes and so on.
Product-wise, Haagen-Dazs ensures to maintain the
high quality and luxurious taste associated with the
brand by using best-selected ingredients from around
the world and ensuring that fresh cream is used for a
rich creamy flavour, fresh skimmed milk for body and
texture and fresh egg yolk for delicate flavour As a
matter of differentiation, they advertise that their ice
cream is ALL ICE CREAM by ensuring that the ice cream
is perfectly rich because it contains no excess air.
Further, unlike mass marketed brands, no artificial

flavourings or colours are used. Haagen-Dazs prefers to

find better natural alternatives and make sure that their
customers
know
about
this.
Although most companies limit their product quality
testing only within their manufacturing process,
Haagen-Dazs takes it a step further to ensure that
quality tests take place at every stage of production by
visiting and testing ingredients suppliers, checking
manufacturing processes and equipment daily, tasting
ice cream in-store on a regular basis for temperature
and taste.

From this we can see how Haagen-Dazs positioning is

based primarily on product & image differentiation. For
this to be understood by customers, Haagen-Dazs has
tried to convey this through every available
communication vehicle such as the deep maroon &
gold logo, to the Scandinavian name and lettering, and
the seductive adverts mentioning the various exotic
flavours.
The only possible aspect that they need to modify with
regards to their positioning would be to start cobranding the product in the U.A.E. with luxury events,
shows, etc. Although currently premium ice creams like
Godiva and Haagen-Dazs are served at all the major
five-star hotels in town, they have not really ventured
into sponsoring or conducting events. Locally held
international-level fashion shows, horse races and golf
tournaments are splendid opportunities to link the
brand
with
the
'best
of
the
best'.
Being primarily based on an actual product and its
augmented offerings, Haagen-Dazs has not been very

successful in differentiating its products from its

services. The next section will look at this in further
detail.
SERVICE VS. PRODUCT ASPECTS Haagen-Dazs product
aspects have already been discussed and this section
will now concentrate on the services that they offer that
acts as evidence of their marketing orientation.
Haagen-Dazs has a global website that offers customer
information on all the newest flavours, special recipes,
current promotions, events, links to other Haagen-Dazs
international websites and even access to their loyalty
programme called REWARDS. This is a free membership
to all their loyal customers who like to enjoy the
uncompromising quality and indulgent taste of their
products. This gives customers VIP access to all
Haagen-Dazs sponsored events, fashion and art shows,
early announcement of all new products, trial coupons
and free gift vouchers. An excellent means to keep their
customers coming back to them time and time again.
The website also gives investors information on how to
open a franchise outlet and company highlights which
gives a better understanding of the company's early
beginnings.
The primary mode of service at Haagen-Dazs was
through their numerous high-street cafes. The website
is a feature that was established of late but to actually
receive the welcoming, customer-friendly service, one
must visit a caf. All Haagen-Dazs cafes are staffed
with well-trained staff whose primary concern is to keep
their customers feel relaxed in the cosy ambience of
the outlet. The staff are always impeccably dressed in
fine uniforms and are sure to be there at every
customer's beck and call whether asked for or not. The
feeling is almost as if being served in a five star hotel.
Even within the various cafes, club memberships are

offered for all regular customers. These customers get

free privileges like attending flavour launches, sample
testing and focus group meetings. All these features
help Haagen-Dazs continuously cater to its niche
affluent segment who are willing to pay that extra
premium for this high grade of service. Extra services
offered at the cafes are the free 'love' postcards and
mugs that are given as giveaways to promote the
feeling of love, intimacy, sensuousness and passion
that the brand is directly linked to.
CONCLUSION Haagen-Dazs' main challenges will be
faced from the growing media effect on consumer
preferences and tastes. New segments are emerging
constantly and they need to continuously innovate and
broaden their target market to incorporate these. In the
1980s, the premium brands were faced with intense
competition from consumers changing preferences to
low-fat, fat free and light ice-creams. Now, the media is
actually convincing people that they deserve to indulge
and this has resulted in many ice cream marketers to
come up with products that are both indulgent, yet not
high in calories. Currently, Haagen-Dazs just has frozen
yoghurts and sorbets to cater to this segment, but they
need to come up with newer recipes and ideas for
getting this segment to eat more of their ice-cream.
Haagen-Dazs need to realize that the world is moving
to a general economic trend of higher earnings, more
disposable income and leisure time and they need to
understand that its not just the affluent that are eating
their ice-creams but also those of the lower and upper
middle-income segments. They have focussed on
capturing the innovators in the market but need to start
developing their marketing strategies to include the
early and late majorities into this segment because

they pose as a larger market. The brand has

repositioned itself from being exclusive to being
accessible yet high-class and quality. This needs to be
further capitalised on by convincing the market move it
from being something to be eaten at the caf to
something in all family fridges to indulge in when
important guests come for dinner. Their clear marketing
orientation has given them an established brand. They
managed to educate their customers on how they
should indulge themselves occasionally even if it
means buying a relatively more expensive ice-cream.
Now they need to change focus to monitor international
tastes and trends to better predict changing customer
tastes and preferences.
The pivot of its India strategy is the introduction of
products designed for the country. Take Power TV, a
light and compact range of LCD TVs that profess lower
power consumption. Starting at Rs 10,000 for a 19inch screen, it goes on to a little over Rs 20,000 for the
32-inch variant. The prices have been kept
significantly low to achieve the ambitious target of
capturing 10 per cent market share by 2012 and 15
per cent by 2015. We want to get closer to consumers
at the earliest as competition is getting intense, Wu
Tengguo, director, digital products, Toshiba India, says.
In this market Toshiba will fight with the likes of Sony,
LG and Samsung.
The second new product from the companys stable is a
first of its kind glasses-free 3D laptop, the Qosmio F750
3D, that is able to display 3D and 2D content on one
screen at the same time. Priced at Rs 85,000, it is far
from cheap but the company hopes its unique features
will drive demand and help it reach its target of 10 per
cent PC market share by 2013. Some other products
that will be launched soon include a tablet PC and a

range of 3D TVs. We are determined to provide a

broad array of high-value products that reflect the
changing lifestyles in India and address market
requirements, adds Tengguo.
Toshiba is planning to establish an R&D centre in
Gurgaon (near Delhi) to localise its new products for
India. Some part of the manufacturing may also happen
locally. The company will expand its network of
exclusive stores to 6,000 from the current 3,500.
The company has planned an aggressive marketing and
advertising strategy to support the new products. It will
drive visibility with billboards and print ads; there will
also be two new TV commercials featuring cricket icon
and brand ambassador Sachin Tendulkar. Ito says,
Even at the peak of his career, Sachin strives for more.
Likewise Toshiba also strives for innovation and better
quality. So he was a natural choice.
The tag line, ready for more, signifies the company is
ready to take competition by the horns. Choosing not to
disclose the advertising budget, Tengguo says, You will
be able to guess (the spends) when you see our scale.
By August this year, you will see us practically
everywhere.

Behavioural Segmentation: (Examples)

Occasion:
Diwali & Rakhi :
Cadbury special combo packs for Diwali.
Beautifully decorated and with a lot of options to
choose from.

Cadbury India Pvt. Ltd is unwrapping a new

advertising, branding, product and retail strategy to
position its Cadbury.
Celebrations gift range on the broader usage plank of
year-round gifting, including social visits.
Until now, this brand has been narrowly focused on
festivals and occasions. The Celebrations gift range
exists under the Cadbury Celebrations brand portfolio.
The chocolate market is valued at more than Rs1, 600
crore, and growing at 18-20% per annum. By
broadening its gifting proposition, Cadbury hopes to
outpace category growth. Cadbury India executives say
Cadbury as a whole currently commands 70% of the
chocolate market in value, and the entire Celebrations
range market share is 6.5%.
To increase its usage width, the Celebrations gift
range has been launched in different package
sizes, priced between Rs145 and Rs155. The
Celebrations gift range is now also called panned
chocolate, since it contains nuts, etc. It will be sold at
premium food stores and modern trade formats to
achieve differential visibility,
The communication for Celebrations earlier
concentrated on occasions like Diwali and
Rakshabandhan.
Over the last seven to eight years, the brand emerged
as a good gift proposition for occasions and enabled
people to come closer. Research done by Cadbury also
suggested that we extend the plank of occasion-based
gifting to social gifting. It is our endeavour to provide
our consumers with all-year-round gifting options. We
came up with new packaging for the panned
chocolate as we feel that it was significant to

refresh and revitalize in terms of aesthetics and

graphics.
A few facts and figures

We make and sell three kinds of confectionery:

chocolate, gum and candy

We operate in over 60 countries. John Cadbury

opened for business in 1824 - making us nearly 200
years young

We work with around 35,000 direct and indirect

suppliers

We employ around 50,000 people

Every day millions of people around the world

enjoy our brands

23 June 2008

Brand Loyalty: Johnson & Johnson

Everybody knows we think of baby products and only
one brand pops up J&J.

J & J has a very strong hold on its customers. They

believe that the product is best of quality.As no mother
would want anything less than the best for her child.

Johnson's Baby is the trusted brand of skin care

products for mothers the world over. It owes its
strength to the trust of mothers, the long heritage of
safe and pure superior quality products. Being
specially designed for babies, it has earned the trust
the trust of professionals who continue to endorse
these products. Johnson's Baby Care products helps
build the special loving bond between a mother and
her baby through the unique set of values that
Johnson's Baby stands for.
All products are made from mild ingredients, which are
suited to the delicate skin of babies. Most of the
Johnson's baby products are clinically proven to be
mild. This seal of CPM (Clinically Proven Mildness)
ensures that the mother and the health care
professionals trust our products for her delicate baby.

Image-seekers

Enhance your mouth and jaw muscles with the Happy

Smile Trainer and create the perfect smile. Just by
biting on the mouthpiece once a day for five minutes
improves the angles and balance of your face and
cheeks, strengthening your gums and teeth.

The Happy Smile Trainer features:

Use once a day for five minutes

Size: 8.5 x 5.5 x 3cm (3.3 x 3.3 x 1.2")

Materials: silicone

Includes case and exercise book (Japanese)

Weight: about 11g

Made in Japan

From the makers of our sleeper hit, the Beauty Lift High
Nose, comes the latest beauty gadget to draw attention
not only for its very unusual design, but also its simple
yet effective functionality. Just slip the Facial Lift At
Once into your mouth once a day for three minutes
and you will feel the electric buzzing work on your
cheeks, chin, lips, mouth and even nose. The pulsing

will come in four different levels of strength and in a

complete 360-degree spread, pushing and working on
your facial muscles little by little every time.

Not only will this give your face a boost "at once", exercise and
training couldn't be easier than with this gadget. All you do is put on
the mouth cover, pop it in your mouth and it does the hard work for
you! If only running a marathon could be as easy!

The Facial Lift At Once features:

Size: 7 x 7.5cm (2.8 x 3")

Materials: ABS, elastomer

Power: AAA batteries x2

Automatic 3-minute timer

4 levels of strength at random

Use only in mouth

Do not place between teeth

Note this product is not waterproof

Manual: Japanese (but self-explanatory)

Psychographic segmentation:
(Examples)
Innovators:
Theyre usually successful, sophisticated, active, take
charge people with a high self esteem. Purchases
often reflect cultivated tastes for relatively upscale,
niche oriented products and services.
Here were
considering the niche market of upscale segmentation
by technology adaptation.
For example, let us consider the Apple's iPad. It
represents a new mainstream market segment for the
technology
industry,
which
will
experience
considerable growth over the next few years, it has
been claimed. Apple's product strategy is a study in
market segmentation. In contrast to merely trying to
stuff a product, burrito-style, with as many different
features as possible, they target specific user
experiences, and build the product accordingly.

Thinkers:

Theyre mature, satisfied, and reflective people

motivated by ideals and who value order, knowledge,
and responsibility. They seek durability, functionality,
and value in products. Here were considering MontBlanc.
For nearly one hundred years the name Mont-blanc has
stood for the art of writing, while the snow-covered
peak of Mont Blanc has symbolised the high quality
status of the brand with the distinctive white star.
Mont-blancs classic fountain pen, the Meisterstck
first produced in 1924, has become a cult object. Not
only because of its timeless design, but also because
of the unmistakable values which are so characteristic
of the entire Montblanc collection. They are
established values that take on a new and greater
significance as modern life develops faster and faster;
values such as tradition, fine craftsmanship and an
appreciation of the need to take time for the essentials
- for reflection, feelings, beauty and culture.
Every Mont-blanc product created over the years bears
witness to these values. From the classic Meisterstck
fountain pen to desk accessories, hand-crafted
Meister-Btten paper, fine leather and jewellery and
the new Meisterstck watch collection - they are the
results of traditional craftsmanship which confers a
sense of eternity on their owners.

Achievers:
Theyre successful, goal oriented people who focus on
career and family. They favour premium products that
demonstrate success to their peers. In this segment we
can consider most of the premium timeless luxury
watches, such as Rolex, TAG Huer, and Omega. Neil
Armstrong gave Omega speed master the ultimate
endorsement when he wore it on his historic moon walk
in 1969.

Experiencers:
Theyre the young enthusiastic, impulsive people who
seek variety and excitement. They spend a
comparatively high proportion of income on fashion,
entertainment, and socializing. For example, we
consider, Fossil watches, handbags, wallets and
clothing. Founded in 1984, Fossil introduced watches
which were trendy as well as The Fossil brand was
founded in 1984 and its main focus is on bringing
fashion to functionality. Fossil offers separate watch
ranges for men as well as ladies. You will come across
watches in varied looks and styles such as classic,
adventure, acetate, wood, stainless steel and so on.
The Fossil watch range is offered in categories such as
sports watches, dress watches, digital watches, trend
watches, mechanical watches, Stark Watches and so
on.

They are preferred by men who wish to portray a trendy

look and profile. They can check out rugged watches,
watches with dials in reverse colours, straps in
polycarbonate material and even formal watches.

Believers:
Theyre conservative, conventional, and traditional
people with concrete beliefs. They prefer familiar,
Indian made products and are loyal to established
brands. Here we consider Bisleri. As one of the worlds
most trusted brands. Bisleri is leading the way in
bringing about positive change in our daily lives. They
believe in being a part of a meaningful movement
called the Aqua Green Revolution.

Strivers:
Theyre trendy fun loving people who are resource
constrained. They favour stylish products that emulate
the purchases of those with greater material wealth.
Considering Pierre Cardin- It is the first couturier to
bring fashion into the street, revolutionize men's style,
apply a brand licensing system in 1960, set up
operations throughout the world, and get notable in
Japan, China and Russia.
Pierre Cardin is known for avant-garde style and space
age designs. It prefers geometric shapes and motifs,
often ignoring the female form. It advances into unisex
fashions, sometimes experimental, and not always
practical. Pierre Cardin's empire rapidly expanded past

fashion frontiers to accessories, furniture, art and

environment. With 900 licenses spread out through 140
countries, the Pierre Cardin trademark is considered
one of the most powerful in the world. Pierre Cardin
offers fashion and style without sacrificing function,
durability and customer service.
Makers:
Theyre practical, down to earth, self sufficient people
who like to work with their hands. They seek Indian
made products with a practical or functional purpose.
Here we take the example of Amul. Amul was set up in
1946 and its full form is Anand Milk- producers Union
Ltd. The Brand Amul is a movement in dairy
cooperative in India. The management of the brand
name is done by the Gujarat Co- operative Milk
Marketing Federation Ltd (GCMMF) which is a
cooperative organization.

Survivors:
Theyre elderly, passive people concerned about
change and loyal to their favourite brands. Parle
Products has been India's largest manufacturer of
biscuits and confectionery for almost 80 years. Makers
of the world's largest selling biscuit, Parle-G, and a host
of other very popular brands, the Parle name
symbolizes quality, nutrition and great taste. With a
reach spanning even to the remotest villages of India,
the company has definitely come a very long way since
its
inception.

Many of the Parle products - biscuits or confectioneries,

are market leaders in their category and have won
acclaim at the Monde Selection, since 1971. With a
40% share of the total biscuit market and a 15% share
of the total confectionary market in India, Parle has
grown to become a multi-million dollar company. While
to the consumers it's a beacon of faith and trust,
competitors look upon Parle as an example of
marketing brilliance.