MARKET TARGETTING

BY GROUP 9: ABHIGNU SANTOSH VAIBHAV GOWTHAM SAQUIM PAVAN

EVALUATING MARKET SEGMENTS

In evaluating different market segments , a firm must look at three factors namely: Segment size and growth

Segment structural attractiveness

Company objectives and resources The company will be interested in the segments that has the right size and growth characteristics. Smaller companies may lack the skills and resources needed to serve the larger

segments as they find these segments too competitive.

 The company also needs to examine major structural factors that affect long run segment attractiveness.

The relative power of the buyers also affects segment attractiveness.

Even if the segment has the right size and growth , the company
must consider its own objectives and resources.

A company must enter into segments which it can create superior customer value and gain advantages over competitors.

SELECTING TARGET MARKET SEGMENTS

Target market:
A target market is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise towards .

Set of buyers sharing common needs or characteristics that the company decide to serve.

UNDIFFRENTIATED MARKETING:
The undifferentiated marketing strategy is one in which an organization defines an entire market for a particular product as its target market, designs a single marketing mix, and directs it at the entire market.

The underlying assumption is the needs of the target market for specific
kinds of product are very similar; thus the business can satisfy most customers with a single marketing mix. There are two requirements for effective use of this approach. The market must be homogeneous, meaning that a large proportion of customers have similar needs for the product. The organization must be able to develop and maintain a single marketing mix that satisfies customers needs.

Hindustan Unilever Limited

A Product Of Every Customer

HUL Acknowledged that India is a country of diverse and different Cultures Religions Values Traditions and Spending habits and capabilities

And they designed the strategy accordingly

HUL manufactures about four Million tons of products. It has a turnover of over Rs. 1,43,670 Million approximately 3,481 Million in 2007. HUL is the leader in Home and personal care products and food and beverages categories in India. Its 35 brands in 20 distinct consumer categories meet the everyday needs of 700 Million Indian consumers for Nutrition Hygiene and Personal care HUL helps people to Feel good Look good and Get more out of life

 HUL has a reach from remote village in the north east to the deserts of Rajasthan and from the crowded capital of the country to the scenic Kerala in south India.

HUL touches the lives of Indian consumers through its brands, right from their morning cup of tea to their brushing routine at bedtime.

Be it for bathing or for washing clothes, HUL has something to offer for the everyday needs of every consumer, rich or poor.

 HUL is also one of the largest exporters.

HUL are manufactured in over 40 factories cross India.

The operation involve over 2000 suppliers and associates.

Its distribution network, which is considered to be one of the best in the country, comprises about 4000 stockistis and covers 6.3 Million retail outlets to reach the entire urban population ,and about 250 million rural consumers.

 HUL product mix and product lines clearly indicate that it has the number of products for the same purpose with different price tags for different kinds of consumers. For instance, In brook bond range of teas HUL offers green label for people with preference for the flavor of tea. Red label for the people who like their tea strong. Taaza for the mass market. HULs strategy of offerings a brand for every need of the consumer had apparently worked wonders for HUL and is responsible for the companys large market share in India.

HUL has several brands spread across the following categories

Personal wash: Lux, Lifebuoy, Dove, Breeze, Pears, Rexona, Hamam, Liril. Hair care: Sunslik and Clinic. Skin care: Fair and Lovely, Ponds, Vaseline. Oral care: Pepsodent, Close up. Deodorants: Axe and Rexona. Laundry: Surf Excel, Rin, Wheel, Sunlight. Colour cosmetics: Lakme. Ayurveic personal and health care: Ayush. Ice cream: Walls. Tea: Lipton, Brook Bond Red Label and Green Label, Taj Mahal and Tazza. Coffee: Brook Bond Bru. Foods: Kissan, Annapurna, Knorr, Modern.

Advertisement and sales promotion

HUL has a company spends heavily on advertisement and brand promotions.

For example,
LUX its beauty soap always had top Bollywood actresses as model for its promotion, be it Meena Kumari and Vaijayanti in the 60s , Hema Malini and Rekha in the 70s or Aishwarya Rai and Priyanka Chopra in the new millennium.

DIFFRENTIATED MARKETING
A differentiated marketing or mass marketing is a strategy in which an organization targets two or more segments by developing a marketing mix for each segment. Advantages: A business can increase its sales in a total market by focusing on more than one segment. Sales to additional market segments may absorb excess production capacity. Disadvantages: A greater number of production processes, materials, and skills mean higher production costs. Several distinct promotion plans and distribution methods are required , resulting in higher marketing costs.

CONCENTRATED MARKETING
A concentrated marketing strategy is a strategy in which an organization targets a single market segment using one marketing mix. Advantages Specialization gives the organization an opportunity to carefully analyze the characteristics and needs of a distinct customer group and then focus all marketing efforts into satisfying that groups needs. A firm can generate large sales volume by reaching a single segment. A firm with rather restricted resources is able to compete with much larger organizations. Disadvantages If the segments demand for the product declines, the companys financial strength also declines. Success in one segment may preclude entry into another segment

MICROMARKETING

Micromarketing is a practice of tailoring products

and marketing programme to suit the taste of specific individual and location.

It includes local marketing and individual marketing.

LOCAL MARKETING
Local marketing involves tailoring brands and promotions to the needs and wants of local
customer groups cities ,neighbourhood and even specific stores. Advances in communication technology have given rise to location based marketing. By coupling mobile phone services with gps device ,now target customers wherever they are with what they want.

Ex: Starbucks recently launched a store locator services for mobile devices in US.
Which allows the people to use their phones and in car GPS system to search nearest Starbucks store

Drawbacks:
Drive up marketing and manufacturing cost. Logistics problems as companies try to meet varied requirement of different regional and local market Most important brand overall image might diluted if the product and massage vary too much from place to place.

INDIVIDUAL MARKETING
Individual marketing is tailoring products and marketing programmes to the need and preferences of the local customer . Also known as one to one or customized marketing.

Advantages Design products and services tailor made to meet the need of individual customer Ex: Dell creates custom configured computers. Hockey stick maker braches sticks give two dozen options to choose Made relationship with customer more important than ever before. Mass production was marketing principle of past century ,interactive marketing is for twentyfirst century.

CHOOSING A TARGET STRATEGY

Depends on company resource

Degree of product variability

Products life cycle