1. PILLARS OF MARKETING – STPD Strategies
Marketing Management
V.S.Ramaswamy and S. Namakumari
2. SEGMENTATION
TARGETING
POSITIONING
PILLARS OF MARKETING
DIFFERENTIATION
3. Formulation of Marketing Strategy consists of four steps STPD
(a) Segmentation
Process by which a market is divided into distinct subsets of customers with similar needs
and characteristics that lead them to respond in similar ways to a particular product offering
and marketing programme
Serves as a prelude to target market selection. It brings to fore the various possibilities lying
in a heterogeneous market
(b) Targeting
The target market that is arrived through segmentation shows to whom the unit intends to
sell the product
Requires evaluating the relative attractiveness of various segments in terms of 1.
market potential 2. growth rate 3. competitive intensity
(c) Positioning
Entails designing product offerings and marketing programmes that collectively establish an
enduring competitive advantage in the target market by creating a unique image or position
in the consumers mind
Positioning shows how ---using what uniqueness the unit intends to sell the product
(d) Differentiation
Works on the principle that a firm can make its offer distinctive from all competing offers and
win through distinctiveness
Positioning shows how ---using what uniqueness the unit intends to sell the product
4. Targeting attractive market segments
The need for market segmentation
and target marketing
Defining market segments
STRATEGIC
CHALLENGES
Choosing attractive market
segments
Different targeting strategies
6. What is market segmentation ?
• Market segmentation is the process of dividing a market into
sub-sets of consumers with common needs or characteristics
• Since most companies have limited resources, few companies
can pursue all of the market segments identified
Why segment the market ?
•Facilitates right choice of Target properly
•Facilitates effective tapping of the chosen market
•Makes the marketing effort more efficient and economic
•
Helps identify less satisfied segments and concentrate
on them
7. PREMISES OF MARKET SEGMENTATION
A IDENTIFICATION OF CUSTOMERS IN TERMS OF
SOME IMOPORTANT CRITERIA
EACH MARKET SEGMENT CAN BE MEASURED
B AND EVALUATED IN TERMS OF MARKET
ATTRACTIVENESS
C ISOLATE THE SELECTED MARKET SEGMENT
8. It identifies opportunities It improves the strategic
for new product allocation of marketing
development resources
NEED FOR
MARKET
SEGMENTATION
It helps in the design of
marketing programmes
10. Region
National
State
Markets
District
Urban
Continent
Geographic Global
Segmentation Markets Country
Rural
Region
Factors Climatic Zone
As long as there are clearly identifiable differences between one region
and the other, with implications to marketing, geographic segmentation
will be useful
11. Geographic Descriptors
Different locations vary in
..... sales potential
….. growth rates
…..
customer needs
….. cultures
….. service needs
Hence segmenting markets on the basis of
….. competitive structuresas
geographic locations
METROS
SMALL TOWNS
RURAL AREAS
12. Race
Religion
Community
Demographic
Segmentation Language
Age
Gender
Marital
Status
Family size
Occupation
Income
13. Demographic Descriptors
Age Nike’s clothes for children
Advertising and events directed towards
Gender
women
Income Advertising magazines targeting the rich
Occupation Products for working women
Education Travel, books, magazines, etc
Events Birthdays, anniversaries, weddings
Household Each stage differs in spending pattern
lifecycle
14. Socio-cultural Segmentation
Culture Social factors
Manifests in the form of A buyer is a member of several groups
Symbols, heroes/icons, rituals both formal and informal
and values
Brings its own pattern Reference Groups : Intimate groups,
of social Secondary groups, Opinion leaders,
conduct Social class
Which influences consumer Social groups of varying types exert
behaviour influence on the consumers
15. Cultural Descriptors Social Descriptors
Religion Income
Language
Occupation
Education
Location of
Upbringing residence
Development son the global socio-cultural scene
--- The Techno Intoxication of consumer communities
--- Spread of consumerist culture and Americanization
--- Pace of life gets even more rapid
--- The new iGen and New Tweens
--- The advent of the next society
16. Psychographic
Segmentation
Based on Lifestyle
Attitude
Self-concept
Facilitates grouping of
Value
consumers in such a manner
system that the group shares a
common buying behaviour
e.g. Coffee Cafes thrive on Lifestyle segments
Certain cars are sold on lifestyle segment
17. Psychographic Descriptors
--- Timid
--- Outgoing
Attitude --- Aggressive
--- Traditional
--- Modern
Lifestyle
18. … Usage status
… Benefits sought from the product
… Volume of purchase/degree of use
Buyer
Behaviour … Purchase occasion
Segmentation
… Buyers attitude towards the product
… Their loyalty to the brand
19. Usage based segmentation
Currently users Sustain them and make them use more of the
brand
of the brand
Currently users To succeed here , he should be able to
convince those users about the superiority of
of competitors the brand
brands
Currently non-
The marketer would attract this segment
users of the
towards its brand
category as such
20. Benefit segmentation
Segmenting market on the basis of benefits expected by the consumer
Helps the marketer identify segments that are presently less satisfied and
are experiencing a big gap between the benefit sought and benefit
available
Marketer provide value in the form of benefits
E.g.
“Calorie watchers” and “health seekers”
PEPSI : Diet Pepsi
Horlicks : Diet Horlicks
Mother Dairy : Low calorie ice cream
Bread : Whole wheat/Brown bread
21. BENEFIT SEGMENTATION
TOOTH PASTE
GENERAL BENEFITS THAT CONSUMERS
SEEK ARE CLEANLINESS AND HYGENE
IN ALL SEGMENTS.
COSMETIC FLUORIDE HERBAL
Protection Against Foul Family Health and
Family Health, Extra
Smell, Modernity & Welfare. Traditionally
Protection For
Cosmetic Value Good For Health
Children
COLGATE NEEM
COLGATE FLUORIDE
CLOSE-UP DABUR
CIBACA FLUORIDE
PRUDENT VAJRADANTI
22. PERCIEVED BENEFITS
MOTOR CYCLE PERCIEVED BENEFITS
BRANDS
ENFIELD STURDY VEHICLEFOR OUR ROAD CONDITIONS, GOOD
FOR LONG RIDES AND HIGH RESALE VALUE
HERO-HONDA FUEL EFFICIENT, HIGH PICK UP AND STYLISH
KAWASAKI HIGH PICK UP SLEEK MODEL
BAJAJ
SCOOTER PERCIEVED BENEFITS
BRANDS
BAJAJ CHETAK FUEL EFFICIENT, LONG LIFE , HIGH RESALE VALUE
KINETIC HONDA ELECTRONIC IGNITION, EASY TO RIDE, TROUBLE FREE
23. Volume segmentation
Quantity of purchase --- actual or potential is the base for volume segmentation
… Bulk buyers
… Small-scale buyer
… Regular buyers
… One-time buyers
Purchase occasion segmentation
… Regular buyers
… Occasion based buyers
Attitude towards the product segmentation
… Enthusiastic
… Indifferent
… Negative
Loyalty to the brand
Extent of brand loyalty on the part of consumers
could be a segmentation base under buying
behaviour
25. Computers
Product performance in
different situations
Consumer Organizational
markets Industrial Products
needs ….. On time delivery
….. Credit terms
….. Economy
….. Spare parts
….. Availability
….. Training
26. Behavioral Descriptors
Product Key
Heavy users accounts
usage
Patronage of a Loyal
Loyalty
particular product customers
Product
Likely to
Purchase Knowledgeable
related become
predisposition non users
future
users
Wife
Husband - wife Children‘s
Purchase
Children products
influence
Friends drugs ,etc.
Doctors
27. Behavioral Descriptors
General Behaviour
Includes
Lifestyle Social class
Reflected by Status groups based on
Activities Income
Interests Education
Opinions Occupation
Helps to infer what types of Helps to infer certain behaviour
products & services appeal to concerning a given product
particular groups and how to
communicate with individuals in
the group
28. Behavioral Descriptors
Organizational/Firm
Purchasing Structure Buying Situation
1. Straight rebuy: routine
Centralized Decentralized situation
Purchasing Purchasing 2. Modefied rebuy: change
in some element
3. New buying situation:
requires considerable
Global basis Product quality situation & evaluation of
Cost saving Quick delivery Less alternative suppliers
Minimum risk cost conscious
29. Realities of the market place which necessitate market segmentation
…. Population growth has slowed down
…. More product markets are maturing
First …. More intense competition
…. Firms seek growth via market share/brand
extension
…. Expanding disposable income
Second …. Higher educational levels
…. Greater awareness
…. Sophisticated needs, tastes & lifestyles
New technology such as computer aided designs has enabled
Third many firms to mass customize many products
…. Different models of cars on the same production line
Easier to implement sharply focused marketing programmes
Fourth by more sharply targeting their own services
….. Magazines, TV channels
30. HOW ARE MARKET SEGMENTS DEFINED
Segmentation Criteria
Demographic Geographic
Descriptors Descriptors
Geodemographic
Descriptors Behavioral Descriptors
32. CHOOSING ATTRACTIVE MARKET SEGMENTS
… Consumer needs & behaviour
… Market or market segment
Market attract-
growth size
iveness factors
… Macro trends..favourable ?
STEP 1
Select market
attraction
& Competitive –position … Opportunity for competitive
factors advantage
Competitive – … Firm and competitor capabilities
position factors & resources
… Attractiveness of industry in
which to compete
33. STEP 2 Assign numerical weight to each factor
Weigh each indicate its relative importance in the overall
factor assessment…. (NIKE)
Weight Rating Total
(0 – 10
scale
MARKET ATTRACTIVENESS FACTORS
Customer needs & behaviour .5 10 5.0
Segment size & growth rate .3 7 2.1
Macro trends .2 8 1.6
TOTAL: 1.0 8.7
COMPETITIVE- POSITION FACTORS
Opportunity for competitive advantage .6 7 4.2
Capabilities & resources .2 5 1.0
Industry attractiveness .2 7 1.4
TOTAL 1.0 6.6
34. STEP 3 Collect qualitative & quantitative data
Rate ( through marketing research) to objectively
segments on each assess each of the criteria identified in step 1… (
factor; Plot results NIKE )
on matrices
High
(8–
10)
.
Market Moderate
Attractiveness ( 4 – 7)
Low
( 0 – 3)
Low Moderate High
( 0 – 3) ( 4 – 7) (8–
10)
Company’s Competitive Position
35. STEP 4
Project future position of each segment
Determine how market’s attractiveness is likely to change over the
next 3 to 5 years by assessing
…. Shifts in consumer needs & behavior
…. Entry or exit of competitors
…. Changes in their strategies
…. Changes product/process technology
…. Shifts in economic climate
…. Impact of social political trends
…. Shifts in bargaining power of customers
36. MARKET SEGMENT FOR CARS
A / Entry level/Budget segment
B / Compact segment
C / Family/Mid segment
D / Premium/Executive Sedan segment
E / Super luxury segment
37. CAR SEGMENT ATION BASED ON LIFESTYLE
CORSA ..”The Achtung Baby”
In “C” Segment GM tapped the lifestyle oriented Indians – the rich,
successful, young and sophisticated termed “Yuppie Indians” who were
keen to make a statement bout their position. It built a lifestyle oriented
image for CORSA
FORD IKON ..”The Josh Machine Baby”
In “C” Segment FORD targeted the “Yuppie Indians” and classified it as
the “Young at heart” segment and incorporated a number of attributes
that would appeal to this segment . It was a car with best of looks and
good vehicle dynamics
38. MARUTI S X 4
MARUTI’s lifestyle pitch :
Pure power, Pure muscle, Pure adrenaline, Pure style, Pure man. The new
S X 4 - the man amongst the cars -- is here
S X 4 – MEN ARE BACK
MARUTI ALTO VX
In “B” Segment Maruti built lifestyle imagery around ALTO. Its themes
were ;
“It is the hottest thing” and “ALTO for the couple”
40. Market targeting
• Is selecting one or more of the segments identified for the
company to pursue
• A target market is a group of people or organizations for which
a company designs, implements, and maintains a marketing
mix intended to meet the needs of the group resulting in
mutually beneficial and satisfying exchanges
41. Steps in choosing the target market
Illustration of Bath Soaps
Quick analysis : of the bath soap market will reveal two
broad segments:
Step-1 i)The premium segment
ii)The popular segment
The firm has to decide which segment to enter. It has to
evaluate the segments, assess their compatibility with the
firms ambition, resource and capabilities
Evaluating the two segments:
i)Is it sizeable
ii)Is it growing
Step-2
iii)Is it profitable
iv)Is it accessible
v)Is it compatible with the firms ambitions, resources and
capabilities
42. PATTERNS OF TARGET MARKET SELECTION
… Concentrated marketing Small Car
…Strong Market
Single Segment knowledge of the segment’s
Concentration needs
… Achieves strong Sports Car
market presence Market
… Enjoys operating economies through
specialization in production, distribution,
promotion
… Number of segments
… Each objectively attractive
and Radio
Selective
appropriate Broadcasting
specialization
… Each promises to be a
money
maker
… Advantage of diversifying the risk
43. PATTERNS OF TARGET MARKET SELECTION
The firm makes a product that sells to
all the segments
e.g.
Product … University Microscopes
specialization … Government
… Commercial laboratories
The firm makes variations of the same
product for different consumer groups
The firm concentrates on serving
many needs of a particular customer
group Products
Market required by
specialization The firm gains a strong reputation in university
serving this customer group and laboratories
becomes a channel for additional
products the customer group can use
44. Full Market Coverage
The firm attempts to serve all customer groups
with all the products that they might need
IBM General Motors Coca-Cola
(Computers) (Vehicle Market) (Drink Market)
Large firms can cover a whole market in two
broad ways
Undifferentiated Differentiated
marketing marketing
45. Undifferentiated marketing
The firm ignores segment differences and goes after the
whole market with one offer
It designs a product and marketing programme that will
appeal to the broadest number of buyers
The firm ignores segment differences and goes after the
whole market with one offer
It relies on mass distribution and mass advertising
It aims to endow the product with a superior image in
people’s mind
The narrow product line keeps down costs of:
R&D Transportation
Advertising Marketing
Research
Production
Product
Inventory Management
46. Differentiated marketing
Firm operates in different market segments and designs
different products for each segment
General Motors produces cars for;
Purse
Purpose
Personality
IBM offers many hardware and software packages for
different segments in the computer market
47. Targeting failures
It had defined its target market as college students in the age
group of 15 to 25 years
Levi’s had assumed that a sizeable group of this description
would be able to afford the price tag of Rs. 999 to Rs.2,295
Levi’s willing to buy the jeans at those prices
The number of consumers who could afford the price tag
was far less then they had assumed
Levi’s failed to define correctly what constituted its target
market and what constituted its size.
48. Targeting failures
Reebok entered India, aiming at the segment with
Rs.5,00,000 plus annual income that was generally referred
to as high end segment of the Indian footwear market with
the price tag between Rs.1300 to Rs.6,500. Volumes were not
Reebok forthcoming.
Reebok shifted to the next lower segment and introduced its
new range CLASSIC, at a comparatively more affordable
price of Rs.900 per pair. Sales picked up.
49. Targeting failures
The brand image strongly associated with exclusive apparel
the targeting became totally faulty. It was a super luxury
apparel brand
It misconstrued the well to do among the Indian middle class
as its target
Pierre The middle class dare not look at a gown that costs Rs.2000
Cardin plus, the super affluent found the price too low for their
status
The very idea of a classy French Label at affordable prices –
was a contradiction in terms, a contradiction with the brands
perceived luxury position
51. Positioning
Is developing a distinct image for the product or service in
the mind of the consumer, an image that will differentiate the
offering from competing ones and squarely communicate to
consumers that the particular product or service will fulfill
their needs better than competing brands
51
52. Positioning-principles
• 1) Communicating the benefits that the product will provide
rather than the product’s features (consumers do not buy drill
bits-they buy ways to make holes)
• 2) Because there are many similar products in any market
place, an effective positioning strategy must develop and
communicate a ‘unique selling proposition’
• 3) Most new products introduced by marketers( new flavors,
sizes) fail to capture a significant market share and are
discontinued because they are perceived by consumers as ’me
too’ products lacking a unique image or benefit
53. MARKET POSITIONING
SINCE CONSUMERS USE
AFTER IDENTIFYING
IMAGES WHILE PURCHASING
THE TARGET MARKET
A PRODUCT/SERVICE
THE MARKETER POSITIONS BRANDS HAVE A POWERFUL
THE PRODUCT/SERVICE IN INFLUENCE ON CONSUMERS’
THE TARGET CONSUMERS MINDS
MIND
BY CREATING AN IMAGE IN
THE CONSUMERS MIND OF
THE PRODUCT/SERVICE
ADVERTISING IS USED TO
THE MARKETER GENERALLY MOULD AND REINFORCE
USES ADVERTISING TO BUILD THE BRAND CORPORATE
A BRAND/CORPORATE IMAGE IMAGE
54. POSITIONING STRATEGIES
COMPLETE PLANNED
COMPLAN FOOD
“THE GREAT
HORLICS NOURISHER” WITH
EXTRA CALCIUM
HEALTH
DRINK
“HEALTH STRENGTH &
ENERGY” CONTAINS MARKET
BOURNVITA
PROTEINS, VITAMINS
MINERALS CARBOHYDRATES
BOOST ENERGY AH ENERGY
VIVA “DOUBLE ACTION DRINK”
55. APPROACH TO POSITIONING STRATEGIES
Sl. POSITIONING DEFINITION ADVERTISING CLAIMS
No STRATEGY
1. POSITIONING IT ASSOCIATES A THE STRATEGY IS
CUSTOMER BRAND/PRODUCT WITH MORE COMMON IN ALL
BENEFITS CUSTOMER BENEFITS THE PROIDUCT
CATAGORIES.
ADVERTISING CLAIMS A
BENE FIT
2 POSITIONING BY A PRODUCT OR ADVERTISING CLAIMS
PRICE, QUALITY SERVICE IS VALUE FOR MONEY
HIGHLIGHTED IN
TERMS OF SERVICE,
FEATURES OR
PERFORMANCE – A
HIGHER PRICE TO
COMMUNICATE THAT
THEY PROVIDE
QUALITY
56. APPROACH TO POSITIONING STRATEGIES
3 POSITIONING BY ASSOCIATING THE ADVERTISING
APPLICATION PRODUCT OR SERVICE CLAIMS THE USE OR
WITH A USE OR APPLICATION OR
APPLICATION SERVICE
4. POSITIONING BY ASSOCIATING THE OR ADVERTISING
PRODUCT USER SERVICE WITH A USER CLAIMS THAT CINE
OR CLASS OF USERS STRARS OR SPORTS
STARS ARE USING
THE PRODUCT
57. APPROACH TO POSITIONING STRATEGIES
5. POSITION BY ASSOCIATING THE ADVERTISING CLAIMS
PRODUCT CLASS PRODUCT OR SERVICE WORLD CLASS
IN A PARTICULAR PRODUCTS
PRODUCT CLASS
6. POSITIONING BY ASSOCIATING ADVERTISING CLAIMS AS
CULTURAL CULTURAL SYMBOLS ROYAL
SYMBOLS WITH THE PRODUCT OR
SERVICE TYO
DIFFERENTIATE FROM
COMPETITORS
7. POSITIONING BY ASSOCIATING WITH ADVERTISING CLAIMS
COMPETITOR COMPARES WITH
COMPETITOR
COMPETITORS BRANDS
PRODUCT BRAND BY
COMPARISION
58. DETERMINING THE COMPETITIVE POSITIONING
STRATEGY
STEP-I IDENTIFY THE STRATEGIC GROUP
COMPETING IN THE MARKET
UNDERSTAND THE PERCEPTION OF
STEP-II
COMPETITIVE BRANDS OF STRATEGIC
GROUP
STEP III DETERMINE CUSTOMER’ NEEDS AND
ASPIRATIONS
DEVELOP TWO OR MORE POSITIONING
STRATEGIES AND SELECT THE BEST
STEP- IV ONE FOR ADVERTISING CAMPAIGN
STEP- V PERCEPTUAL MAPPING
59. Perceptual Map of Eight Leading Brands of Toilet Soaps
. Personal soap
.
. .
Liril
.
Camay
Cinthol
Lux Evita
Value for
.
Luxurious
money
.
Rexona .
Moti
Le Sancy
Family soap
60. PERCEPTUAL MAP FOR SOFT DRINKS
COLA
DIET PEPSI COCA-COLA
TAP PEPSI
DIET NON DIET
FRESCA SPRITE
DIET 7-UP 7 UP
NON COLA
61. MARUTI’S STP FOR ZEN
Executive class in the cities as a distinct
segment among passenger car buyers
This group formed the core of the compact car
Segmentation segment
& Targeting
It was owner driven segment, mostly
It looked for driving comfort much better than
what was provided by Maruti 800
62. MARUTI’S STP FOR ZEN
Positioning Maruti positioned Zen as “an executive car for
city drive”
It tried to provide in the car what this segment
The offer looked for– mainly a good driving positioning
lending to smooth driving and a good pick up to
acceleration
An example of effective STP
Maruti ensured that the three STP steps connected rightly and that the
offer marched the STP Strategy . It ensured that the value proposition too
matched the STP and the offer actually offered on the value proposition
and the communication conveyed the adequately
63. HUNDAI’S STP FOR SANTRO
Hundai proceeded with its STP Strategy more or
less in the same way as Maruti did
Hundai found that the executive group within the
Segmentation compact segment, was a good target to aim at
& Targeting It also found that the segment matched its own
capabilities and ambitions
64. HUNDAI’S STP FOR SANTRO
Positioning Hundai positioned Santro as a “safe high proof ,
executive car for city drive with revvy engine
Hundai saw to it that its offer not only matched
the Zen, but delivered better than Zen on certain
vital parameters
…Upgraded technology
The offer … Superior power and fuel efficiency
… More modern design High roof (the tall
boy) … Higher ground clearance
… More spacious interiors
… The safest car in its category
An example of effective STP
The STP had smoothly led to the value proposition and the offer delivered
on the value proposition. The buyers did perceive it as a good city car as
its torque was nicely matched to the speeds envisaged on city drives. The
good revvy nature of the engine contributed to superior performance
67. PRODUCT DIFFERENTIATION
PRODUCT
DIFFERENTIATION
STRATEGY FOR
RETAINING CUSTOMERS SHAPING DEMAND IN
THEIR FAVOUR
THROUGH ADVERTISING & SALES PROMOTION
OFFERING DIFFERENT VERSIONS OF THE SAME PRODUCT
68. DIFFERENTIATION – ORIENTED STRATEGY
Differentiation – Oriented Strategy with Emphasis on
Product
Differentiation – Oriented Strategy with Emphasis on
Distribution
Differentiation – Oriented Strategy with Emphasis on
Promotion
71. DIFFERENTIATION ORIENTED STRATEGIES WITH EMPHASIS ON
Functionality (Microsoft)
Microsoft is synonymous with computer operating systems. It commands
70 % of the revenue generated world wide simply because of its product
design and functionality
The ongoing windows family commenced with Windows 98, moved on to
Windows 2000, Windows XP and now to Windows Vista
Every new version carried substantial improvements/new features and
gave vastly improved feature to the computer user
Windows Vista carried:
Windows Defender & Firewall Instant Search Internet Explorer 7
Aero Desktop Experience Windows Flip 3D Live Thumbernails
Mobility Centre for Laptops tablet PC Support Meeting Space
Media Centre Extenders Fax & Scan
72. DIFFERENTIATION ORIENTED STRATEGIES WITH EMPHASIS ON
Packaging Convenience :
Firms capture new segments with Chotta Size
A bite of Cadburys at Rs.1
One dose of Nescafe at Rs.2
One spoon of Sunsilk at Rs.0.75
Chotta Coke at Rs.5
Chota Cooklite (200 ml) – Godrej at Rs.13
Strategic objective
--- Enhance the market penetration by capturing new segments
--- Ramp up volumes
--- Play a combination of differentiation and price
oriented strategy
COKE increased its customer base from 16 crores to 24 crores between
2003 and 2005; Sachets constitute more than 70 % of the total sales of
the shampoo industry
73. DIFFERENTIATION ORIENTED STRATEGIES WITH EMPHASIS ON
Service---- Kingfisher Airlines
Kingfisher differentiates itself on service. Some of the special services on
which Kingfisher bases its claim to uniqueness is highlighted below:
SERVICE AT THE AIRPORT
SERVICE ON BOARD
SERVICE ON REACHING THE DESTINATION
74. AT THE AIRPORT
Valet Available from the time you reach the airport till the time
assistance you check-in and on arrival at the destination airports
Translates into
.. Multiple check-in counters ..less waiting time at
Check-in
counters
.. Presence of efficient staff .. on time
departures
… Efforts are made to minimize the inconvenience
Delay … Refreshments are offered in case the delay
handling is more than one hour
… Meals are offered in case of
longer delays
Roving Trained roving agents take care of check-in so that
passengers need not wait at the check-in counter a
agents
75. ON BOARD EXPERIENCE
Guests have the option of Live TV, Fun TV, 10
In-flight
Audio Channels, with choices appealing to each
entertainment
segments experience
… Guests have the choice of opting for
Meal options vegetarian or non vegetarian meals
… Menus are
designed considering the guest feedback and are
frequently changed
The crew undergoes rigorous training in safety,
World class first aid, service delivery and personality
crew development before they are cleared to take on
the role of hosts on board
76. ON REACHING THE DESTINATION
… Endeavour the checked-in baggage with the
passenger immediately on arrival at the
destination
Baggage
delivery … Their representatives are available at the
arrival lounge should their assistance be needed
on account of bulky baggage
In a situation of misrouted baggage, effort is
Delayed/missed made to locate and deliver the baggage as soon
baggage as possible and deliver is made at the airlines
expense
77. DIFFERENTIATION ORIENTED STRATEGIES WITH EMPHASIS ON
Experience– The New Generation Coffee Cafes
Café Coffee Day Barista Coffee
Costa Coffee Barnie’s Coffee
Starbucks
The two main elements of the strategy adopted by the Coffee Cafes are:
(i) They choose the lifestyle oriented, well to do, urban consumers as
their target, with youth/students as the dominant part.
(ii) They make coffee an experience and provide special “experience” to
the chosen segment
(iii) The customers of these cafes do not see the coffee as a product or
beverage, but as an experience
78. Differentiating the experience in many innovative ways
They give the youths/students an impression that something is always
happening in the coffee joints and they should be apart of it
Play music of their choice
For those focused on coffee proper, the innovation comes through
product
The cafes nuance the coffee experience suiting the climate
80. Differentiation – Oriented Strategy with Emphasis on Distribution
ITC’s e-Choupal
ITC’s e-Choupal is a village internet Kiosk serving 3 purposes
---- Provides information to farmers on crops/weather/prices
---- Sells a variety of products to them
---- Buys various farm products from them for ITC’s use
ITC developed the e-Choupal model to tackle the distribution challenge
and prohibitive distribution costs arising out of
---- fragmented farms
---- weak infrastructure
---- involvement of numerous intermediaries
By utilizing the scope of IT, e-Choupal linked the firm directly with the
ultimate buyer virtually eliminating wasteful intermediation and multiple
handling and reducing transaction costs significantly
81. E-Choupal managed
by Local farmers
(Village
Sanchalaks)
Sanchalak aggregates
the demand for
various products
E-mails the order to
ITC
Items are picked up by Or it is delivered to the
the Sanchalak at the villagers by the local
ITC warehouse hub middleman (Samyojak)
and supplied to the co-opted by ITC
consumers
The Sanchalak
collects cash payment
and remits it to ITC
83. L’OREAL
The worlds biggest company in cosmetics also
L’OREAL : selling Maybelline cosmetics, Garnier
Shampoos, Lancome perfumes
… The L’Oreal range has premium position and
is marketed through high power advertising
… Garnier is promoted using celebrity
advertising
… Aishwarya Rai has been the Brand
PROMOTION Ambassador
STRATEGY … The campaigns are aired during prime time on
channels like Zee and Star
… The ads/message do not list out any product
attributes; instead splashing the beautiful hair
the celebrity film star just says “Because you are
worth it”
84. DINESH SUITINGS
DINESH
Dinesh is not marketed on any utility or price
SUITINGS plank
… The differentiation is built around ‘prestige’
and high power advertising
… In its advertising campaign, an aura is built
PROMOTION around the brand by using Sunil Gavaskar as the
model.
STRATEGY
… The brand and the prestige of the models are
nicely combined in the ads.
… The punch line reads; “Dinesh suitings…. the
world in your stride”
85. REID & TAYLOR
REID &
In the same product category of suitings
TAYLOR
… Reid & Taylor also uses the ‘Prestige’
approach for differentiation, with even more
telling effect
… Here James Bond is the prestige endorser
… The ad message links the prestige of Bond
and the brand
PROMOTION --- Reid & Taylor…. The legend of a cloth
STRATEGY
--- James Bond …. The legend of a man
--- Luxury Suitings….. Bond with the best
The suiting is a legend like the endorser, not a
piece of cloth
86. COCA-COLA
Provides a classic example of a differentiation
COCA-COLA oriented marketing strategy. It has a great sway
on the minds of millions of consumers round the
globe
… The company has carried out a sustained high
budget promotion effort over the decades
… Top rung film stars and sportsmen were
consistently used inn its campaigns run through all
possible media – TV, print, outdoors and events – to
sustain the image built around the brand and keep it
contemporary
PROMOTION … Coke was positioned as a welcome image rather
STRATEGY than a drink
-- Coca-Cola makes good things better
--- Things go better with coke
--- It’s the real thing
Coke is presented more as a sensation than a product
87. PEPSI
Like Coke, Pepsi gives maximum thrust to
PEPSI
promotion
… To counter the leader, new themes will figure
from time to time in the promotion campaigns
… Pepsi is heavily banking on celebrity
advertising and sponsorship of world sports
PROMOTION events as its major marketing weapon
STRATEGY … Pepsi cashes in on the cricket frenzy using the
cricketers and film stars to project their brand
image
Neither Coke nor Pepsi pitch on the properties of
their respective colas
88. NIKE
The marketing is built wholly around brand name
NIKE and promotion
… Kike has been projecting the image of a
winner and high performer by using sports stars
from Michael Jordan and John McEnroe in 1970s
till Roger Federrer today
… Nike and success go together. That is the
equation between the brand and whoever uses it
… You are made to feel that by wearing Nike, you
PROMOTION are in the league of those very special sports
STRATEGY personalities you admire
In addition to regular high budget ad campaigns,
Nike puts its logo, the swoosh on every possible
medium/vehicle--- MP3 players, watches, walkie
talkies, and even portable heart monitors
