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Discussion on different brands in a product category and the segments to which they are targeted;
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Discussion on different brands in a product category and the segments to which they are targeted;

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Toothpaste consumer segments

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Firms that sell chips for cell phones (this are called DSPs) segment the market like this:

But what benefits are big and small firms looking for. It turns out that this market can be segmented (at the level of the application) as follows:

Cell phoneconsumer segments

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COCA-COLA

Coca-Cola’s research found that children of working class parents prefer to GULP their drinks. Coca-Cola, and other carbonated beverages, are difficult to gulp.Segmentation response: MELLO YELLOW - THE FASTEST DRINK IN THE WEST

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Auto market

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. However the more general bases

include:

by geography - such as where in the world was the product

bought.

by psychographics - such as lifestyle or beliefs.

by socio-cultural factors - such as class.

by demography - such as age, sex, and so on.

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The Segmentation Matrix Business Battlemap is a useful segmentation tool. There are two bases for segmentation. Here we use beer brand versus ages groups. The various products are then plotted on the matrix. The result is a 'battlemap'.

THE SEGMENTATION MATRIX BUSINESS BATTLEMAP

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Another example

• Originally Lite by Meisterbrau aimed at ladies - light users.

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7 - 9

Positioning

• Value propositions represent the full positioning of the brand

• Possible value propositions:– More for more – More for the same – More for less– The same for less – Less for much less

Topics

Goal 4: Discuss how companies position their products

• Identifying possible competitive advantages

• Choosing the right competitive advantage

• Choosing a positioning strategy

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Another example the rest of the story…

• Miller bought the brand and repositioned it for men - Heavy users.

• They fought - less filling - great taste

• And drank a lot of it!

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On the following scale please place a check on the position that describes your beliefs about the brand:

Miller

Heavy taste Light taste|--------------------|--------------------|--------------------|--------------------|

Dark color Light color

|--------------------|--------------------|--------------------|--------------------| Budweiser

Heavy taste Light taste|--------------------|--------------------|--------------------|--------------------|

Dark color Light color

|--------------------|--------------------|--------------------|--------------------|

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On the following scale please place a check on the position that describes your beliefs about the brand:

Miller

Heavy taste Light taste|--------------------|--------------------|--------------------|--------------------|

-10 -5 0 5 10

Dark color Light color

|--------------------|--------------------|--------------------|--------------------| -10 -5 0 5 10

Budweiser

Heavy taste Light taste|--------------------|--------------------|--------------------|--------------------|

-10 -5 0 5 10

Dark color Light color

|--------------------|--------------------|--------------------|--------------------| -10 -5 0 5 10

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What segment is being

targeted?

What is the positioning?

Marketing in Action7 - 13

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Exercise 1 - Use of Descriptive Variables in Segmentation

Richardson Vicks

The number of young adults age 20-24 who have skin problems now exceeds the number of teenagers with blemishes.

Segmentation response: CLEARSIL ADULT CARE

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Williams-Sonoma

15 percent of its cookware customers are male. The company has been considering what to do to boost the sales of its catalogs.

Segmentation response: ______________________________________________

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Heavy tasteD

ark

Co

lor

Light taste

Lig

ht co

lor

o Budweiser

O MILLER LITE

O MILLER BEER

O GUINESS STOUT

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High price/oz.

Lo

w in

cal

ori

es

Low price/oz.

Hig

h in

calories

Product & Brand Positioning

(a) Product-positioningmap

(breakfast market)

Expensive

Slo

w

Inexpensive

Qu

ick

Baconandeggs

Pancakes Instantbreakfast

Coldcereal

Hotcereal

b) Brand-positioningmap

(instant breakfast market)

Brand C

Brand B

Brand A

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High price/oz.

Lo

w in

cal

ori

es

Low price/oz.

Hig

h in

calories

Product & Brand Positioning

(a) Product-positioningmap

(breakfast market)

Expensive

Slo

w

Inexpensive

Qu

ick

Baconandeggs

Pancakes Instantbreakfast

Coldcereal

Hotcereal

b) Brand-positioningmap

(instant breakfast market)

Brand C

Brand B

Brand A

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What position does this one occupy?

• The Night Time cough medicine

• Why --- it originally was 25% alcohol

• Antihistamines + alcohol = unconsciousness