04_MS_Week1_s6-7_Application Assignment

Sandeep Kumar Raina B54. Roll no 27

We will follow the Method of STP (Segmentation Targeting and Positioning and
answer the above Application Assignment)
1. For any product/ service offered by your organization, segment the entire market.

SEGMENTATION:
Here we will take up SPEED Petrol offered by Bharat Petroleum, Speed Petrol
is a high Performance Branded Premium Petrol with Multifunctional
Additives that Keeps Engine Clean. The Product Priced at Rs. 2 More than
Unbranded Petrol. It positions itself as a first branded product in India offering
Improved Performance &efficiency, Reduced emissions, Better Driveability, Lower
maintenance Cost.
Petroleum Market can be classified into following Segments:
Segment

Retail

Selling

Price Sensitivity

Need

for

Need

for

Environment

Need

for

Output

Driving

Consciousne

Low

(Mileage/

Experience

ss

Maintena

Performance)

nce Cost

Bikers-Employees
Bikers-

High
Low

High
High

Low
High

Medium
High

Medium
High

Youth/Students
Cars- Employees
Cars- Youth/Students
Auto- Owner driven
AutoNon-owner

Medium
Low
Medium
High

High
High
High
High

Low
High
Medium
Low

Medium
High
Medium
Low

Medium
High
High
Medium

Driven
The above matrix has been derived based on various customer surveys, Dealer
feedbacks and Field Experience. Accordingly following Segments highlighted in
green above are easy to Target as price Sensitivity is the first barrier towards
selling speed.

04_MS_Week1_s6-7_Application Assignment
Sandeep Kumar Raina B54. Roll no 27

2. Which of the above segments will you target and why? Your answer should take into account the
attractiveness of your segment and your competitive advantage.

TARGETING
Going by the above matrix it is most prudent to focus on below three segments
Segment

Retail Selling

Output

Driving

Environmen

Mainten

Price

(Mileage/

Experie

ance

Sensitivity

Performan

nce

Consciousn

Cost

Bikers-

Low

ce)
High

High

ess
High

High

Youth/Students
Cars- Youth/Students
Auto- Owner driven

Low
Medium

High
High

High
Mediu

High
Medium

High
High

m
The reason is clear from the above matrix as price sensitivity is the first barrier
towards selling Speed (Since SPEED is Rs. 2 More priced than Unbranded Petrol)
The Above three Segments-Bikers-Youth/Students, Cars-Youth/Students, AutoOwner Driven- are looking beyond selling price and looking especially for better
driving experience, are environment conscious and want low maintenance cost.
As against it the non-owners of Auto have little accountability towards
maintenance cost and are indifferent towards Environment. However they are
highly price conscious as it is linked to their direct savings. They take Autos on a
rental basis from owners. Similar pattern has been shown by Bikers-Employees
and Cars-Employees.
ATTRACTIVENESS AND COMPETITIVE ADVANTAGE:
We will evaluate the attractiveness of the segments using three Parameters:
1. Segment Size 2. Growth Potential 3. Competition
I have taken reference of Varanasi Sales area where I am posted.
Segment
Bikers-

SEGMENT SIZE
Over
60%
of

Petrol

GROWTH POTENTIAL
This segment is registering a

Youth/Students

customers in Varanasi are

growth of 8% in Urban and upto

Bikers.

20% in Rural India

04_MS_Week1_s6-7_Application Assignment
Sandeep Kumar Raina B54. Roll no 27
Cars- Youth/Students

Auto- Owner driven

Only

15%

of

Petrol

Although the Growth rate of this

Customers are Cars but

segment

due to high fill size they

annum however the high sales

contribute to 40% of the

contribution due to high fill size

volumes.
Balance 25%

make them attractive.

The three wheeler segment is

are

Auto

Drives running on Petrol.

growning

With public tpt not in

annum

place

this

segment

is

by

around

over

5%

11%

per

per

is

constantly increasing.

Competitive Advantage Matrix (POSITIONING):

Feature
HPCL

BPCL

IOCL

BPCL with a strategy to

YOUTH CONNECT ICON

focus on youth has tied

up

with

Narayan

Karthikeyan , Indians no1

Formula

position

Racer

the

to

product

among youth

CLEANS ENGINE FROM

Only BPCL Multifunctional

INSIDE
ENVIRONMENT

Additive has this property

FRIENDLY

SPEED as least emission

Only BPCL has positioned

fuel

due

to

High

Efficiency

Hence it is easy to Target this segment of Bikers-Youth/Students, CarsYouth/Students, Auto-Owner Driven . Also since these segments are of
considerable

size

and

growth

segments will be profitable also.

potential

hence

targeting

these

04_MS_Week1_s6-7_Application Assignment
Sandeep Kumar Raina B54. Roll no 27

3. Write a positioning statement for one of the above segments.

To write a Good Positioning Statement we should follow the below rule:

For (Target Market) the (Brand Name) is the (Point of Differentiation) among all
( frame of Refrence) because ( Reason to Believe)
So Positioning Statement for each Segment will be as below:
Segment
Bikers-

Positioning Statement
For the Youngistan which likes Speed and thrill,

Youth/Students

Petroleum unleashes SPEED Petrol with an Unmatched

Bharat

Performance in the Industry, Tough on Performance and Soft

on Environment, you will get a driving experience like never
before without troubling your pocket money, Trusted by the
Cars- Youth/Students

Best- Narayan Karthikeyan

For the Young Energetic Nation Builders, Bharat Petroleum
unleashes SPEED Petrol with an Unmatched Performance in
the

Industry,

Tough

on

Performance

and

Soft

on

Environment, you will get a driving experience like never

Auto- Owner driven

before, Trusted by the Best- Narayan Karthikeyan

For the hardworking Workers of India, who drive the
country, Bharat Petroleum offers SPEED Petrol , which adds
life

to

engine,

saving

your

hard

earned

money

by

guaranteeing lowest maintenance Cost, trusted by the

finest Engine Mechanics.