Chipsim STP Model.

Chipsim is the only local potato chips manufacturer in the market since 2014. As it is founded

only 3 years ago, international companies like Frito Lay and dau have already captured the

ample part of the market shares. At recent years, the market size has grown considerably and in

the meantime the demand for chips products has increased also. Today, Chipsim has expanded

and kept 25% of market shares at its hands with applying the right strategies such as extending

diverse product lines, having lower prices and meeting the needs and wants of consumers. So,

the market is highly attractive on the basis of intense needs for snacks among all segments. The

company mainly has focused on the young people who have ages between 16 and 28.

Consequently, all class of society in terms of income have a significant demand to chips

products.

The objectives and resources of the company should be consistent with the purpose of market

segmentation. The goal of Chipsim is to produce various products in order to catch the attention

of people who belong to different segments. The company would follow both the segment

marketing and mass marketing strategy. Differentiation strategy will allow to increase the profit

margin, hence having diverse tastes and lower prices than competitors with the same quality will

make the brand more favorable. In addition, implementing the mass marketing strategy would

attract all age groups including kids. Unlike to competitors, Chipsim would produce more spicy

and thicker chips for the taste of consumers who live in Middle East. Moreover, adding new taste

(keshnish) to potato chips, which is not available at competitors would have a favorable

impression on customers minds. Furthermore, Chipsim would use various packaging strategies

such as adding halal sign and selecting cover photo for different markets to create a value for

target market effectively. In order to keep a significant place in an international market, the
company should bridge the gap and evaluate correctly the behavior of targeted customers. Since,

in domestic market, Chipsim follow the strategy of market leader (Frito Lays) with setting up

price slightly lower than it. However, entering international market would result in having new

competitors as well such as dau, which dominates the market in Belarus. There are significant

factors that influence the formulation of market segmentation, which are listed below:

Market Segmentation:

Geographic:

Regional integration (Middle East and CIS countries)

The citizens who live in urban and rural areas in the country

Demographic:

Young people who have 16-28 ages

Kids under ages of 10
Parents and rational people
Majority of consumers are males

Psychographic:

Middle Class (the lower and upper)

The rational people
Eating potato chips is the lifestyle or habit of some people

Behavioral:

People who want healthy and high quality chips

People who do not like traditional chips
Those who are aware of side effects of traditional chips
Taste:

Keshnish,
Shashlik,
Spicy
Paprika

Targeting:
When it comes to targeting, Chipsim has mainly focused on the behavior of customers

purchasing power in an international market. The target of the company is the ones who have

busy life styles such as employees and students. Targeting customers who seek the quality and

nutritional value with the distinct kinds of taste is an important way to increase the revenue.

Another issue in the targeting process is to take into consideration the different preferences of

kids and adults for the same product. Consequently, children prefer the products, which have

gifts inside of the packet or just they look at the shapes of the products. The quality of product

does not bother them. Nevertheless, for adults the quality of products and nutritional values are

important reasons to buy them. Over 20 years aged people are the conscious and rational

consumers. At a result, the company should concentrate on whether their target group is kids or

adults. Since, Chipsim has decided to reach targeted group of adults primarily and the parents of

kids using various advertisement methods and campaigns.

Positioning:
Positioning strategy is the way of delivering chosen brand position to customers. The strategy of

Chipsim is lower price offerings that will exceed the competitors product quality and services.

In domestic market, the company reached its goals in terms of product satisfaction. Consumers

prefer Chipsim because of affordable prices comparing with other brands. Also, adding new

Azerbaijani flavors to potato chips let the company deliver the values to more people. The

upcoming goal of the company is to create a brand essence in the minds of people in the global
market. To sum up, Chipsim adds specific taste in chips and product has some exclusive

characteristics that would assist the company to obtain position in the minds of the customers.

Chipsim contains such kind of advantage or features that would meet its customer satisfaction.