Friday, 4 October 2013

Segmentation, Targeting and Positioning (STP) and Marketing Strategies

Any Brands creates its marketing strategy based on expected customer behavior. And in order to know the customer and its expected buying behavior and use it in forming the right marketing strategy, a proper process of segmenting, positioning and targeting is needed

A market segment consists of a group of customers who share a similar set of needs and wants. The marketer’s task is to identify the appropriate number and nature of market segments and decide which one(s) to target.

The major segmentation variables are:

Geographic segmentation:  Kissan, as it’s a part of HUL, which has a huge distribution setup which helps it to reach the masses and rural areas better than the other brands present in the market. It has both width and breadth in marketing.

Demographic segmentation: Primarily for Kissan jam and jelly the company considers children to be the most lucrative customers. Kissan ketchup has a different take on the type of customers.

Behavioral segmentation: Kissan provides special offers during festivals to attract more people towards their product. Offers in special social festival allow a large number of consumers to experience and enjoy the Kissan products

Proper Targeting is very important in order to make the brand successful, it’s not only about targeting the right people but also targeting them in the most appropriate way. So far Kissan Jam has been very successful in targeting the right consumers. However they should further develop on their communication so that the risk of threat from new entrant is restricted and therefore gain a full market coverage.

 Positioning is done after segmentation is done and target markets have been identified, the brand needs to position its products/ services in the most suitable manner to the product/service as well to the target consumers. Positioning is done by following POD and POP methods, in POD (Point of difference) you create a product or service in an existing category but it’s different from the other offerings by competitors and in POP (Point of Parity) you create a product or a service which is very similar to that of the market leaders offering to the consumers. Kissan Jam, follows POD method and has always created a unique taste for its consumers which can be easily identified and along with the introduction of the Squeezo, which is an upside down plastic bottle and is the first of its kind in the country. The packs innovative format is much more convenient to use versus a glass bottle. The new pack is easy to hold and squeeze.The launch was led by the Communication idea of “khud banaao khaana dilchusp” . It has received an awardfor the most innovative packaging.

Kissan was the leader in the ninetees unless Maggi overtook it after that. Maggi is the biggest competitor of kissan in this segment other than Heinz and other local brands.Maggi has the current market share of 32% with Kissan at 27% and the remaining is shared by Heinz and other local brands. Kissan lost its position due to its over confidence and neglecting the brand and quality. But now it has again started to take positive and aggressive measures to regain its position of No.1 in the market by modifying its marketing and strategy. It has launched sachets of jams to add new and small customers to this segment and who can buy according to their demand. Kissan is the only company to have sachet in jam category.
 Kissan is the market leader in the Jam Segment with 65% of market share. The competitors of Kissan in this segment are Druk and other local competitors. Kissan jams are available in various flavours and sizes. By doing so, a customer has more choice.
The brand realized that it wanted to enter a new market and Kissan wanted to tap that section of the society with a product that would help the brand to acquire a part of that market. Butter has saturated fats, monotonous taste, high calories, whereas jam is sweet. For health conscious people, jam was any day a better choice.


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