Market Segmentation DOC

1. MARKET
SEGMENTATION





-By
Aabhas Rustogi
Ashish Babaria
Sandeep Satishchandra
Shalini Mukerji

2. 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

3. 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" car—one 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

4. industry. Like Ford, he also viewed his product as being the only one that
consumers needed. His initial mass-marketing 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 retailers—national 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.

5. 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: Soho’s — 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.

6. 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

7. 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 the subdividing of a market into
distinct subgroups of customers, where any subgroup can be
selected as a target market to be met with a distinct marketing
mix. - CIMA

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.

8. 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.

9. 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

10. 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 don’t 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:

11. 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 drives conversion and avoids erosion.


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.

12. The Process of Segmentation:























Identify the total market
Determine the segmenting dimensions
Profile each segment
Assess segment attractiveness
Select target market
Determine (marketing mix) for
each segment

13. .
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.

14. 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

15. 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.

16. 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
young, single people not living at
home
Newly Married
Couples
young, no children
Full Nest I youngest child under six
Full Nest II youngest child six or over
Full Nest III
older married couples with
dependent children
Empty Nest I
older married couples, no children
living with them
Empty Nest II
older married couples, retired, no
children living at home
Solitary Survivor I in labour force
Solitary Survivor II retired

4. Income:

17. 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
PDI’s of USA and India. Levi-Strauss launched premium lines such as
Levi’s Capital E to upscale retailers Bloomingdales and Nordstrom,
and the less expensive Signature by Levi’s Strauss & Co. lines to mass
market retailers Wal-Mart and Target. Signature was positioned as
apparel targeted at the middle bracket. Whereas Levi’s 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

18. 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

19. 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

20. 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

21. 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

22. 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 person’s 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.

23. 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-
evaporated’to ‘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.
Tetley’s 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

24. 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 one’s salt and to one’s 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.

25. Ghari Detergent did the Nirma Act
Recently Ghari detergent has surpassed several multinational brands
to become the second largest-selling 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 let’s
have a look on some industry statistics to gain a better
understanding

27. 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 country’s 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 company’s
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

28. 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 Ghari’s
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

29. 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

30. 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

31. 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 ice-cream 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 café.

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

32. 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 super-premium 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

33. 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

34. 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

35. 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, socio-cultural 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

36. 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.

37. - 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

38. accessibility for the elite - focus for this segment has moved away
from actual cafes where they may be tempted by the non-low 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 café to the
attention with which they serve, the Haagen-Dazs 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

39. 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 co-branding 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

40. 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 café. 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

41. 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 café 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

42. 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 19-inch 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 company’s 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.

43. 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

44. 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

45. 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.

46. 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.

47. 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)

48. Psychographic segmentation: (Examples)
Innovators:
They’re 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 we’re 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:

They’re mature, satisfied, and reflective people motivated by ideals
and who value order, knowledge, and responsibility. They seek
durability, functionality, and value in products. Here we’re
considering Mont-Blanc.
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.

49. Mont-blanc’s classic fountain pen, the Meisterstück 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 Meisterstück fountain pen to desk
accessories, hand-crafted Meister-Bütten paper, fine leather and
jewellery and the new Meisterstück watch collection - they are the
results of traditional craftsmanship which confers a sense of
eternity on their owners.


Achievers:
They’re 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.

50. Experiencers:
They’re 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:
They’re 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
world’s 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:

51. They’re 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:
They’re 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:
They’re elderly, passive people concerned about change and loyal to
their favourite brands. Parle Products has been India's largest

52. 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.