STRATEGIC MARKETING:

ASSIGNMENT NO: 3

NAME: FIZA AKHTER

CLASS ID: 102497
CLASS: MBA-4
DATE: 12-10-2019
SUBMITTED TO: PERVEZ GHAZI SHEIKH
QUESTION:1 What is market targeting and strategic positioning?
ANSWER: Market Targeting :
A market is segmented using age, gender, income, education, lifecycle, social status, social
class and many more. After identifying segmentation few segments are selected to reach
target customers. This process of evaluating and selecting market segments is known as
market targeting.

Market Targeting Process:

There are two steps of market targeting process, the first step is to evaluate market
segmentation and select those segments that suit the business. In the second step,
marketers select appropriate market targeting strategies.

Step1. Evaluation Market Segments:

The market targeting process involves assessing those segments marketers already
identified in the market segmentation. But when we talk about evaluating market segments,
it is based on certain criteria. Business owners and marketers must answer these questions
while assessing the market segments.

 What are the sizes of the segments I am looking for?

 What are the demographics of identified segments?
 What is the competition level of each segment?
 What is the growth potential in the segments?
 What segments can help to achieve company goals?
 How to best utilize company resources pursuing the segments?
These are not the only questions. The questions may vary according to industry, business
nature and the depth of research you conducted.

Step 2. Market Targeting Strategies

In today’s’ business environment every business needs market targeting strategies.
Targeting the right market is very important. Here we will discuss four types of market
targeting strategies with examples.

 Undifferentiated Market Targeting:

Undifferentiated market targeting strategy ignores market segmentation and goes after the
whole market. This strategy considers buyers as homogeneous group. Undifferentiated
marketing is also known as mass marketing. In this strategy, companies do not produce
different products for different market segments.This type of marketing strategy relies on
mass distribution and mass advertising. Companies aim to create superior image of the
product in the minds of consumers.

Company uses this strategy to appeal a wider audience based on common customer needs
and wants other than differentiated and concentrated strategies.
It has a narrow product line which leads to low advertising cost. Lack of segment marketing
reduces the costs of marketing research.

Example:

 Henry Ford adopted undifferentiated marketing strategy for T Ford Model. This
model was available in only black color in 1930s. Another example of
undifferentiated strategy is Hershey Company, few years back they have only one
chocolate candy bar for all.

 Differentiated Market Targeting:

In Differentiated market targeting strategy, a company opt to target multiple market
segments and design different and effective marketing mix for each market segment.
A Differentiated market targeting approach is likely to create more sales than does
undifferentiated marketing. But due to distinct marketing mix, the promotion cost also
increases. The increasing sales must be weighed with increasing costs.
Number of different companies adopted differentiated marketing strategies.

Example:
 The segmentation of Unilever generates more sales by achieving higher market
share through various detergent brands which they could not with just one brand.
 Another example is McDonalds; they have developed unique menus for local
consumers in many countries of the world. In India McDonald create a unique menu
for local consumers i.e. the McCurry Pan which a vegetarian dish. The Indian version
of Big Mac is called the Maharaja Mac “the Social Burger” makes with grilled
chicken, tomatoes and onions. Both products are according to the Indian religious
sensitivities as beef is not consumed.

 Concentrated Market Targeting:

In concentrated / niche market targeting strategy, resources are focused and target specific
market segments. Concentrated marketing strategies are effective for those small
companies having limited resources. Due to focused strategy they can perform better
compare to large businesses.
Due to better knowledge of specific segment’s needs, company can achieve a higher market
position. If company chooses the right segment at the right time, it can achieve lucrative
rate of return on investment.

Example:
 Pizza Hut successfully developed database of 9 million pizza lovers’ customers. By
using this database, Pizza Hut developed target market campaigns to reach its
consumers.

 Micromarketing Market Targeting:

Micromarketing strategy involves developing products, services and marketing programs
best match with individuals and locations. Small business owners can use micromarketing
strategy to target customers at personal level. Micromarketing includes local marketing and
individuals marketing.

Example:
 A good market targeting examples is Citibank, it offers different
services on branch level based on neighborhood demographics. Wal-
Mart and Sears Store customizes its inventory and promotion to meet
the requirements of specific clients.

 Individual marketing examples include hotel industry, clothing,

furniture and bicycle industry. This strategy is based on the preferences
on individual’s customers.

STRATEGIC POSITIONING:
A company’s relative position within its industry matters for performance. Strategic
positioning reflects choices a company makes about the kind of value it will create and how
that value will be created differently than rivals. Strategic positioning should translate into
one of two things:

1. A premium price

2. Lower costs for the company

Example: SHAMPOO MARKET

 Shampoo market is highly fragmented – overflowing with brands that promise:

- Body and control, - renewed life for dull hair, - elimination of split end, -avoidance
of dandruff.

 Effective marketers understand the value of establishing a solid position in the

minds of consumers.

"Strategy should reflect a distinctive value chain that configures all key business processes
and operations (operations, HRM, marketing, service delivery, etc.) in a unique way that is
difficult for competitors to imitate (Porter, 2001)."

EXISTING PRODUCTS NEW PRODUCTS

EXISTING MARKET PRODUCT

MARKETS PENETRATION DEVELOPMENT

NEW MARKET
MARKETS DEVELOPMENT DIVERSIFICATION

PORTER : STRATEGIC POSITIONING

 COST LEADERSHIP:

Outperform competitors by producing at the lowest cost, consistent with the quality
demanded by the consumer.

 DIFFERENTIATION:

Create value for the customer through product innovation, product features,
customer service, etc. for which the customer is willing to pay.
QUESTION:2 What is Wall Marts Brand positioning and targeting strategy?

ANSWER: BRAND POSITIONING:

The first step for any new business is to ponder how to occupy space inside a target
consumer’s mind, which is called ‘Brand Positioning’.

BRAND POSITIONING OF WALMART:

For fifteen years (Before Wal-Mart), Sam had been running a chain of independent
variety stores in smaller towns. Those stores gave the revenues of $1.4 million by
1960s. Things appeared fine. But Sam felt otherwise. He and his team had been
working very hard but the business itself appeared to be of limited growth. He could
not push the sales beyond a limit. He felt that he had to find an idea with a better
payoff for all their efforts.

“It takes all the running you can do, to keep in the same place.” -Through The Looking-
Glass.

Research -Observe, Observe, Empathize — Sam visited nearby

towns, did detailed research and found out that the future appeared to be headed
towards ‘discounting stores’. He saw that some larger stores were doing revenues of
more than $2 million from each store while his fifteen stores together generated only
$1.4 million.

Sam then visited more discounting stores all around the country and studied the
concept in-depth. It was clear for him that discounting would go and dominate the
market. “Buy it low, stack it high, sell it cheap” was the guiding principle of
discounting. Sam had only two choices — Stay in the variety store business which
would be going to be hit hard by the discounting wave of future or open a discount
store. He wisely chose the second option.

Wal-Mart has long been positioned as the low-price leader. Wal-Mart is an incredibly
strong brand. It has very high awareness and an exceptionally clear positioning. Wal-
Mart stands for low prices. The company is relentlessly focused on reducing costs and
giving consumers the lowest prices. Just a few weeks ago Wal-Mart changed their
positioning statement…and there’s an important lesson here for all of us. For years
Wal-Mart’s positioning statement, has been “Low prices…Always low prices!” It
appeared on their stores, in their ads and on their website. But earlier this month
they quietly changed their slogan to, “Save money. Live better”. This is a small but
beautiful change. In fact, it’s brilliant. It defines a clear benefit “live better”.
WALMART’S TARGET CUSTOMERS:
Before positioning your business, we need to freeze the target customer segment.
Focus on a particular need, work on it, make your product/service distinctive
(Positioning) and dominate the market.

Sam thought a lot about the type of customers he had to target, where the
competition would be weak and where he would have enough strengths to gain the
market share. He had been running ‘Variety stores’ in small towns where the
population was around 6000. Sam lived as one among his consumers in that small
community. His everyday interaction with the people of the town gave him a sound
knowledge of the User behavior, their needs, desires, and wants. It was his strength.
He pondered how he could apply that strength to the most promising opportunity?

Weak Market Forces — Sam observed every competitor in the discounting

business. Kmart and other bigger retailers were not going to towns below 50,000
populations. Other medium-size brands like Gibson did not go to towns below 12,000
populations.

Nobody was ready to provide products at discounted prices to the people living in
small towns. But people in smaller towns were well aware of the ‘discounting stores’
as they had friends and relatives in the cities and some of them had even visited those
stores. The awareness was there.

Thus, Sam Walton decided to open Walmart stores in small towns having a population
of around 5000.

VALUE PROPOSITIONS:

 Always Lowest Price — Having lived among people of smaller towns

and having run fifteen variety stores for the last fifteen years in those small
towns, Sam Walton figured out one major requirement from the customers.
They always buy products from a place where it would be priced lower than
other places. At that time, retailers were selling products with higher margin
— A retailer would sell a product costing 80 cents for $1.20. Sam, during one
of his research work, found out that by pricing the product at $1.00, a retailer
could sell 3 times the volume and the profits would be much higher. This tip
changed Sam Walton’s idea about retail and his life. His motto became “We
Sell For Less — 20% less than the competition”. Discount everything the Wal-
Mart carries.
  Customer-Centric — Sam learned the importance of ‘Customer Service’
while running the ‘Variety stores’ for 15 years in those small towns. In those
years, he and his associates built a strong relationship with customers, who
would keep coming back. Loyalty drove the business. The people lived there
as a community and most of them knew each other well. Sam wanted to
extend the same concept of ‘Best Customer Service’ to Wal-Mart’s customers
too. To provide the best service, he encouraged his employees to think and
acts like the customers. Even while arranging the merchandise, he would ask
his employees to act as a customer and see how it would improve their
experience.

Thus, Wal-Mart’s positioning strategy was ‘Low Price’ and ‘Satisfied Customer
Service’ which included a Wide assortment of good quality merchandise, friendly
service, convenient hours and pleasant shopping experience.

As per Porter’s definition of Strategy, Walmart was offering both value and low price
to customers.

TARGETING STRATEGY OF WALMART:

Undifferentiated targeting strategy is used by the giant to capture the market
globally. Everyone is a propect for Walmart so it does not use differentiation to a
major advantage. The price of products is the major differentiator for Walmart.
Low pricing strategy can be used for the complete masses.

Walmart segmentation, targeting and positioning is the core focus of Walmart

strategic marketing. Segmentation refers to dividing population into groups according
to certain characteristics, whereas targeting is associated with choosing specific
groups identified as a result of segmentation to sell products. Positioning refers to
the selection of the marketing mix the most suitable for the target customer
segment.

Walmart uses mono-segment type of positioning and accordingly, Walmart marketing

management appeals to single customer segment who place greater value on the
price attribute of products compared to other attributes.
It is important to specify that although Walmart attempts to target customers of all
ages via its marketing communication messages, particular attention is paid to young
consumers, dubbed as generation X due to the strategic importance of achieving the
loyalty of young consumers for long-term perspectives. Along with the promise of
cheap prices, Walmart attracts Millemials via effective integration of social media
marketing into its marketing communications strategy. This strategy is proving to be
effective so far. As it is illustrated in figure below, Millennials favor Walmart over
stores including Target, Costco, Trader Joe’s, and Whole Foods in North America

Target market for Wal-Mart:

The success of every marketing strategy depends on proper definition of the target
market and the performance of every product in the market is determined by four
variables of the marketing mix namely; people, product, place, promotion and price.
Since Wal-Mart was founded, the company has struggled to offer products to
customers at very low prices in order to increase sales and maximize profits. This has
remained the company’s marketing strategy for quite a long time. The strategy has
proved famous among Wal-Mart’s customers because it allows both the poor and
middle-class in the society to purchase products that will satisfy their needs.
Generally, Wal-Mart’s target market is simply a group of people: males, females and
children, who are interested in saving money. These customers are located in all
geographic areas where the company’s stores are located. These customers work
hard to obtain income that they will use to purchase Wal-Mart’s products at
relatively low prices. These customers are pleased with the quality products that Wal-
Mart offers to them. The hardworking middle and lower class customers are grateful
that they can purchase quality products from Wal-Mart’s stores located in several
nations worldwide. Customers, who need cloths, groceries, car parts, and household
cleaners, save time and money by seeking to obtain them from Wal-Mart stores. The
lower and middle-class appreciate Wal-Mart’s efforts of making them feel part of the
company. To date, Wal-Mart is still driving more and more people who want to save
money to its stores. Retailers keep coming back to Wal-Mart stores because of their
low pricing.
QUESTION:3 Write an essay TCS Pakistan’s No.1 courier company. Discuss its
history and progress today?

ANSWER: INTRODUCTION:
Pakistan's leading logistics company has tried to innovate in the face of stiff
competition but has floundered in recent years. The pace of change can sometimes
overtake even the best companies, including those that have achieved the coveted
“verb status”. In most of urban Pakistan, when people want to say “send it by
courier” they often say “just TCS it”, even if they are using a different courier service.
A company with that kind of stature in the eyes of its customer base can usually
count on a safe, reliable future flow of business.

But all is not well with TCS, with tumultuous management changes, stiff competition,
and even allegations of suffering customer service quality and financial performance.
What has gone wrong with this storied Pakistani brand? And will it rise again or is this
the final blow for the company?

VISION STATEMENT:
"Delivering Beyond Customer Expectations".

MISSION STATEMENT:
"To direct all their organizational efforts at building upon the existing organizational
strengths and brand recognition to achieve enhanced levels of profitable growth in
the core business, and diversify into new areas that complement and supplement the
core business, with the diversification aimed at achieving excellence and industry
leader status in the new areas. The TCS People will however be encouraged to be
open to unconventional ideas and services and recognize new trends at very early
stages"
HISTORY OF TCS COURIER COMPANY:
TCS (Tranzum Courier Services) is a courier service started in 1983, headquartered
in Pakistan, with over 2,000 locations in Pakistan and a presence in 5 continents with
3500+ locations worldwide. The company has an airline for cargo purposes which
operates from many of the airports in Pakistan. It also operates with 853 Express
Centers and has over 375 satellite-tracked delivery vehicles and a team of 4,000
couriers. There is recently a Business Partnership of TCS & UPS. This is the largest
such network in the country, larger than the multinational giants that operate in
Pakistan, the likes of DHL and FedEx.
TCS has a total of 14 businesses including Express and Logistics, Mail Management
Solutions, Air Freight Solutions, and Visa Delivery, to name a few; it covers 3,500
international destinations through partners. The company’s state-of-the-art facilities
make it capable of printing up to 2 million impressions and 600,000 stuffed envelopes
in less than a day. When it comes to courier services in Pakistan, TCS is still very much
the Goliath. And it got there by being an early pioneer in its field.As we tell you the
story of TCS, you will notice a few consistent themes: innovation in its field, aspiration
towards global quality, and an owner who is remarkably open to giving outside
managers control over the company’s day-to-day affairs. The company’s owners,
however, have always struggled with succession planning, though not for lack of
trying. And for all the founders’ efforts to run the business like a professional
organization, family issues can sometimes get in the way of business decision-making.

The company’s founder, Khalid Awan, started his career as a flight engineer at
Pakistan International Airlines (PIA). In 1983, at age 35, he left the airline and decided
to get into the logistics business with his elder brother Sadiq, who was 23 years older
than him. The two brothers started a joint venture with DHL, the international courier
service owned by the German post office.
It was a struggle in the early years to even get regulatory approval for the service.
Under the Post Office Act of 1898, it was illegal for any entity other than the post
office to deliver “letters” though the term “letters” was not clearly defined in the law.
TCS was able to argue that it should be allowed to deliver “business-related
documents” and that its partner DHL should be allowed to deliver packages and mail
from Pakistan to other countries.

T0DAY PROGRESS:

SERVICES:
TCS has been assigned machine readable passports (MRPs) delivery services by the
government, and Visa application submission and delivery services by embassies such
as Indian Embassy and others. TCS Hazir service has launched to take the parcels from
the home.

 TCS Passport Service: The new service involving delivery of passports

at residences has been launched in collaboration with TCS courier service.
Under the new service called TCS Passport Express, the courier will receive
passports from the passport office and deliver them to applicants on the
address given at the time of registration, within a time frame quoted by the
issuing authority. In order to ensure security and reliability, the postal
companies will only handover the passport to the applicant or a
representative mentioned in the application.

 Hazir Service: TCS has launched TCS Hazir, an advanced courier service
designed to respond to the customer right at the doorstep – within 60
minutes, according to a press release. Customers can call TCS Hazir and book
documents and parcels of up to 25 kg, enabling them to save precious time.
Initially available in Karachi, Lahore, Islamabad and Rawalpindi, TCS Hazir
guarantees pick up of documents and parcels within 60 minutes from
anywhere and at any time. Expressing his views at the launch, TCS Marketing
and Public Affairs Director Naiyar Saifi said, “Launch of TCS Hazir will enable
customers to save precious time and book their parcels from the comfort of
their homes.” Published in The Express Tribune, December 31st, 2014.

 Voice of Customer: In order to consistently enhance customer service,

they strive to stay connected to their customers, and encourage two-way
communication through Voice of Customer. They understand that
customers are the pulse of any successful business, and it is only through the
cultivation of their feedback, regardless of whether it is positive or negative,
that they can discover and develop new ways to provide ease and
convenience to their customers. VOC is the research and consumer insights
department at TCS that defines its prime focus as enhancing customer
satisfaction. The key purpose is to stay connected to customers and promote
a two-way communication with them. The function helps in gathering
 structured feedback from customers for all major touch points. Based on this,
they produce a meticulous set of customer wants and needs, organized into a
hierarchical structure, and then prioritized in terms of relative substance and
satisfaction. The feedback received is utilized for qualitative and quantitative
research. The sample size is decided through scientific ways and different
research techniques are used to gather information from customers.

 Domestic Express: Express is the flagship product of TCS Consumer

division and they facilitate walk-in customers that exceed 40,000 every
day visiting their 800+ express centers available in more than 380 cities
nationwide. The various services offered under the Express division
include: Red Box, Express Flyers, Overnight, Economy Express, Same Day
Delivery, Student Express, Supplementary Services, Self Booking and
Time Choice deliveries.

 International Express: TCS began international operations in the year

1999, by providing parcel and package delivery services to over 3,500
destinations worldwide. These services were offered to all clientele including
walk-in customers and corporate clientele who needed to move their
documents and parcels around the world in a rapid and efficient manner.
With a well-developed infrastructure backed by TCS’s credibility and
experience, the TCS international division plays a vital role in connecting
Pakistan to the rest of the world, offering its massive customer base with the
convenience and facility to move their deliveries to destinations across the
world.