Below Shave aimed at the consumer. Market Segmentation,

Below
is a report on the the importance of market segmentation, targeting
and positioning for a branded product that is A
close Shave
aimed at the consumer.

Market
Segmentation,
Targeting and positioning
are tools to align with the right product for they play an important
role to get to the right customer. They allow the marketer to deliver
a product within the target audience needs and wants (Pickton and
Broderick, 2005: 373). It is a necessity to establish the needs and
values of the target customers within each segment, in order for
companies to promote their products, brands or services
appropriately.

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In
this context :
Segmentation:
Dividing the market or customers into groups basing on similar
characteristics. Example: demographically, behavior, geographically
etc. Kotler and Armstrong define market segmentation as “dividing a
market into distinct groups of buyers who have distinct needs,
characteristics, or behaviour and who might require separate products
or marketing mixes” (Armstrong and Kotler, 2005: 54).

Targeting:
After segmenting, its is not likely to reach to reach every customer
in the market therefore a target audience is selected. The marketer
distinguishes among a variety of market segments, chooses one or more
of the segments and then develops products and marketing mixes
customised to each segment (Gunter and Furnham, 1992: 2).

Positioning:
Basically it means building a brand image in the mind of the
customer. Where does your product stand in the minds of the customer
and the marketplace.

Why
are Market
Segmentation,
Targeting and Positioning
important?
Segmentation
splits buyers into groups with similar needs and wants to best
utilize a firm’s finite resources through
buyer based marketing.
Example by Market Segmenting according to age; A Close Shave can
group three age groups (Group A: Age 18-25, Group B: 26-33, Group C:
34-41) these three group will have completely different lifestyles
and behavioral patterns, Group A may find the product desirable
because its a young group with less or no economical obligations,
Group B maybe an insecure group where most men if single want to
appear manly so may not care for putting face cream on and Group C
have economical obligations but may need the product since it does
not require a shave it saves time. Different age groups have
different opinions on the product basing on their buying pattern and
behavior. Attract
the right
customer.
By seeing the customers’ attitudes toward a brand or product the
company will get a comprehensive view of the market. The right
customer knows what he/ she needs specifically and will have the
right attitude toward A
close shave. It
would increase customer delight because B&G Shoprite will
concentrate on a specific target audience.
Reduce
risk in
deciding where, when, how, and to whom a product will be marketed.
The decision of production are risky because with one wrong decision
the product will flop in the market. It is crucial to segment, target
and position the market so as to achieve the best result in the
marketplace.
Increase
marketing efficiency by
directing effort specifically toward the designated segment in a
manner consistent with that segment’s characteristics. When all
efforts are directed to the right customers, it is easier to improve
on all production functions so as to ensure customer satisfaction. It
would also reduce the cost of the company by not marketing A
Close Shave
where it is not required.

Recommendation:

In
order to save A close Shave it is important to align the product with
the right customers and Market Segmentation, Targeting and
Positioning are the correct tools to be used to rescue it. The
product will not only be a success in the market place but it would
draw the right target audience and efficiently use the B
Shoprite resources.

Question
2.

B
Shoprite may consider segmenting the market for A
Close Shave as
shown below:
Demographics
segmentation;
with this a market is acknowledged basing on shared demographic or
disposition qualities. With this A close Shave can specifically be
introduced to specific demographic parameters such as age, marital
status, income, occupation and education. Different parameters behave
differently.
Age:
The
consumer’s needs and wants change with age. Therefore approximately
companies use phase and life-cycle segmentation, where age and the
life-cycle determine the marketing approach. Furthermore the age and
life-cycle segmentation are associated with behavioural
characteristics and buying patterns.

Marital
Status: single people have a tendency of purchasing new items due to
the fact that they have no other economic obligations. This is
opposed to married people, who have a large economic obligation and
thereby they prioritize their economy differently.
Income
segmentation divides the market into different income groups. It is
used in automobiles, clothing, cosmetics, financial services and
travel. Many companies within the mentioned categories seek to target
the high-income customers. Others seek to target the customers with a
lower income in order to gain consumer loyalty and lessen the
competitive pressures. Conversely, companies must consider the fact
that the income does not continuously predict the most suitable
customers for a given product due to the fact that some customers may
have other preferences and prioritize their money different (Kotler
and Keller, 2009: 258).

Lifestyles
plus psychographics segmentation
is classification that places highlighting on the collective
activities, interests and behaviors of particular customers. Along
with activities, existence segmentation is driven by physiognomies
such as shared interests, opinions, attitudes and values of
customers. A fishing desirability and tackle shop would likely streak
customers founded on their similar interests and audacities toward
fishing, for instance. This approach makes more intelligence given
widespread demographic personalities among fishing and outdoor
enthusiasts.

Geographic’s
segmentation: One
of the humblest and most common segmentation policies for small
businesses is based on geography. If you have a broad customer base
gathered in a local, regional, national or international location, it
makes sense to invest in geographic marketing. Size, population
compactness and climate factors are traits of geographic
segmentation, along with region or location. Targeting a rural market
of 10,000 customers is much different than targeting an urban market
of 100,000 customers, for instance.
Behavioristic
segmentation:
With a behavioristic segmentation strategy, you target customers
based on their interest or understanding with your company or
products. With this strategy, your market segments have shared
knowledge with your products. Benefits sought, usage, loyalty,
prospect or customer status are communal characteristics. One of the
paybacks of this segmentation is it targets a broad market looking
for different benefits, such as economy, performance, luxury or
status. Targeting new prospects is also distinct from targeting
brand-loyal customers.

Question
3
Possible
parameters to A Close Shave be positioned

Market Positioning
What
is market position? In marketing strategy, market position refers to
the consumer’s perception of a brand or product in relation to
competing brands or products. Market positioning refers to the
process of establishing the image or identity of a brand or product
so that consumers perceive it in a certain way.
For
example, A close shave may position itself as a fresh status symbol.

Positioning
of a close shave:
The
positioning of a brand or product is a strategic process that
involves marketing the brand or product in a certain way to create
and launch an image or identity inside the concentrations of the
customers in the target market. Market arranging of a brand or
product must be maintained over the life of the brand or product.
Doing this requires continuing marketing initiatives intended to
reinforce the target market’s perceptions of the product or brand.

Relocation
a brand or product means altering its place in the minds of the
consumer, or essentially shifting the brand’s or product’s image
or identity. When you are repositioning, or trying to change the
consumers’ perception of a brand or product after it has previously
been solidified, may complicate or alienate clienteles in the target
market. This is important for A Close Shave to give it a new look in
the market since the first strategy flopped.

Broad
categories of market position: cost management and differentiation.
Cost management and differentiation market positioning strategies are
applicable to any business and any industry. A business can choose to
position itself using a cost leader strategy or a differentiation
business strategy.

Cost
Lead Strategy: B&G
Shoprite using a cost frontrunner strategy attempts to position
itself in the minds of the consumers as a company that provides
products the consumers want at a price that is lower than competing
products available in the marketplace. Consumers expect basic
products with no bells and whistles from a company using a cost
leader strategy. Instead, consumers just suppose the products to
encounter their needs and nobody more or less.

Differentiation Business Strategy:
B&G
Shoprite
using a differentiation business strategy attempts to position itself
in the minds of the consumers as a company that provides unique
products that consumers will recompense more for because they cannot
find comparable products or product features everyplace else in the
marketplace. Consumers expect more from a differentiated product and
therefore are enthusiastic to pay a premium for a differentiated
product. This is true as long as the unique features of the product
add some value to the product that makes it more valuable to the
consumer, whether a functional feature or an aspect of image or
prestige that enhances the perception of the product.