STP AND MARKETING MIX OF
By-Anju Rajbhar Roll No.23 PGDM-2016-18
1
Introduction
Market segmentation can be defned as: The process o splitting a market into smaller groups with similar product needs or identifable characteristics, or the purpose o selecting appropriate target markets. Targeting (or target market selection) reers to: An organiation!s proacti"e selection o a suitable market segment (or segments) with the intention o hea"il# ocusing the frm!s marketing o$ers and acti"ities towards this group o related consumers. And positioning (which is sometimes reerred to as product positioning) is: %ositioning is the target market!s perception o the product!s ke# benefts and eatures, relati"e to the o$erings o competiti"e products. &T% models There are two alternate models that help marketing students understand the &T% process. The introductor# model simpl# uses the three letters o &T% to highlight the core elements o the process, namel# segmentation, targeting and positioning. This approach is shown in the ollowing diagram and discussed in the 'asic &T% %rocess section.
hile this basic model is a good starting point or understanding the o"erall process, there are a number o smaller steps that should also be understood, which are outlined in the ollowing diagram and discussed in the *ull &T% %rocess. '# re"iewing this more detailed approach, students will gain a much greater understanding o this important marketing concept.
+
2.2Types of Marketi Segmentation Some basic segmentation methods will be discussed in order to identify alternatives for the following consideration, which is the most appropriate for the natural mineral water “Borjomi.” Geographic segmentation means to define customers according the location they live, for instance, European consumers. Geographical segmentation is very easy to define. t is easy for distribution system and establishing contacts with customers. But, the drawbac! of this !ind of segmentation, as "ouglas and #raig state in the boo! of “$rinciples of mar!eting” cited by %. Brassington and S. $ettite &'(()*, that concentrating only on the geographical area is not correct, because even in a small location customers can have diverse wants and needs. %or e+ample, in -, people consider hot chocolate as a substitute to the coffee or tea and the bedtime drin!. owever, %rench consumers see the hot chocolate as a nourishing brea!fast served with mil! for children. /herefore, in addition to that it is important to ma!e customer0focused segmentation. Demographic segmentation is deeper approach than geographic segmentation. t is concentrated on age, gender, race, income, occupation etc. "emographic segmentation is as easy to define as geographic. t is measurable as well and information can be accessible free. 1dvantage of demographic approach of segmentation, let us say age, is ease to ma!e a profile of an age segment and according to that decide which strategy of communication and creative approach will be the most appropriate. 2n the other hand, similar to geographic segmentation, not all the customers in the same demographic range necessarily have the same needs and wants. Geodemographic segmentation is a merger of above mentioned. %or instance, if the wine company is selling old drin!s in e+pensive price, company should !now that some areas are populated with inhabitants of high income and some areas are poor. Psychographic segmentation or lifestyle segmentation is more complicated segmentation method than mentioned above. %. Brassington and S. $ettitt &'(()* define lifestyle segment as it is not based on the product s best 3ualities and the same issues but it is oriented towards customer s emotional state, paying more attention on the benefits, which can be given to the customer. 1s Geoff 4ancaster et al. &5665*, describe psychographic and lifestyle segmentation it is about how individuals spend time and money based on the personality, attitudes, education, cultural and social bac!ground. 1uthors recognise early '()6s, 7./. $lummer s idea of identification of this phenomenon based on the ne+t measures8 • ow individuals spend their time on activities9 • /heir major interests 9 • /heir opinions about themselves and the world in general ‟
‟
‟
MARKETING MIX OF MYNTRA
Marketing in"ol"es fnding out what #our customers want and then me eting their re-uirements. To satis# its customers, a business must create a successul mi o: Motorola began lie as The /al"in Manuacturing 0orporation in 0hicago in 12. 3ts frst product was a batter# eliminator, enabling radios to operate rom mains electricit# rather than epensi"e batteries. 3n the 1+4s it produced car radios using the brand name 5Motorola5. The compan# later adopted Motorola as its name. The compan# is now known around the world or inno"ation and leadership in wireless and broadband communications. Motorola5s "ision is o &eamless Mobilit#, which the compan# defnes as helping users get and sta# connected easil# to the people, inormation, and entertainment that the# want and need. The compan# does this b# designing and deli"ering 5must ha"e5 products, 5must do5 eperiences and powerul networks. Appl#ing this "ision to mobile phones, Motorola has gone be#ond 6ust enabling users to make "oice calls or send tet messages. 7epending on the models chosen, users can: • • •
•
share music fles between the user5s %0 and their phone pla# that music easil# on stereo 'luetoothTM headphones in the car 8 as well as being able to use the phone with a hands8ree car kit, pla# music through the car stereo at home, pla# the music through #our stereo s#stem.
1: %roduct
• • •
Motorola is a global leader in wireless and broadband communications technologies and related electronic products. 3t has signifcant operations in the 9 emplo#ing approimatel# ,44 people. 3t co"ers a number o businesses. Mobile phones are among the most amiliar products to consumers and the mobile phone is seen b# man# as an essential item. 3t can perorm a number o unctions, including being: an essential means o communication a ashion statement a source o entertainment such as music and "ideo games ;
•
• • • •
•
a saet# precaution (e.g. to tell people where #ou are). The mobile phone market has risen dramaticall# in sie. 3n April 44;, the market research compan# Mintel produced fgures which showed that 24< o the #outh market in the 9 has a mobile phone, and that o"er =1 million people subscribed to an airtime contract. The market is a "er# competiti"e one with a range o companies competing to pro"ide mobile phone ser"ices. ith a +/ or A%8enabled phone, customers can browse special 3nternet sites, which means the# can look at ootball scores, search cinema mo"ie times, or li"e8chat with riends. Motorola has partners such as MT>, with high -ualit# sites pro"iding di"erse and entertaining content. +/ (third generation) phones o$er much more e$ecti"e access to music and "ideo downloads, because the networks the# work on pro"ide aster connections or downloading content than pre"ious generations o phones. Tet, %icture and >ideo messaging is phenomenall# popular and is likel# to become more so. Motorola mobile phones are increasingl# being used to capture and share eperiences, in addition to making arrangements, tell 6okes, and ?irt without the personal nature o a ace8to8ace or "oice8to8"oice contact. 3n creating products, Motorola concentrates on: attracti"e design ecellent call8-ualit# ease o use "alue8added eatures including music pla#er, games, camera, and "ideo eatures high -ualit#, reliable products.
3n order to remain competiti"e, the compan# continuall# seeks to inno"ate 8 or eample b# building phones that are slim and well designed. This is particularl# important or one group or segment o the mobile market. An eample o this is the Motorola @A@ phone. The Motorola @A@ >+i is the thinnest clam8shell phone currentl# a"ailable (as at Banuar# 44=), 6ust 1+.mm thin. The casing is made rom aircratgrade allo#, and the outer screen rom glass, as no con"entional plastic materials were strong enough. 3t has a built8in camera with C oom and -uick eposure controls. This also lets #ou watch and record "ideo clips in ull colour. Dou can also en6o# #our a"ourite ring tones, music clips and games with a state8o8the8art pol#phonic speaker sound and an integrated +7 graphics engine.
: %rice
%rice is the one element o the marketing mi which creates sales re"enue 8 all the others are costs. *or companies like Motorola, price is a ke# element in the marketing mi. 3t is a critical selling point. 5/etting the price right5 is a "ital part o building relationships with customers. As with other companies, prices charged b# Motorola are linked to the product =
lie c#cle. hen a new product is launched prices will t#picall# be -uite high. This is because a lot o product and market research has gone into producing the product. 3t usuall# takes time or large numbers o consumers to purchase new products. *or eample, +/ phones are onl# 6ust beginning to sell in large -uantities. As a product matures and sales increase, it is possible to reduce costs. Economies o scale are important. These come in when a frm is able to produce on a large scale. ith high outputs o production, costs o research and de"elopment, sotware engineering and in"estment in plant (manuacturing machiner# and tooling) can be spread. &tate8o8the art products are sold at premium prices re?ecting the high -ualit# o the items and their inno"ati"e nature. The costs to the users o Motorola mobile phones are kept down because the# are subsidised b# the network pro"iders such as >odaone. Fetwork pro"iders want as man# people as possible to subscribe to their network. The# thereore like to link with the producers o the best designed phones which eature the most eciting and e$ecti"e technologies. %hone retailers will oten suppl# ree accessories with a mobile phone to make it more useul to phone users and to encourage them to bu#.
+: %lace
Though fgures "ar# widel# rom product to product, roughl# a fth o the production cost o an item goes on getting it to the customer. The term 5place5 deals with "arious methods o transporting and storing goods and then making them a"ailable to the customer.
/etting the right product to the right place at the right time in"ol"es the distribution s#stem. 7istribution is the process o mo"ing goods and ser"ices to the places where the# are wanted. G
There are a number o wa#s in which Motorola distributes its phones. 3 #ou want to bu# a Motorola mobile phone there are a number o distribution channels that #ou can use. Man# people like to bu# phones rom independent retailers such as 0arphone arehouse. These can o$er ad"ice about a "ariet# o di$erent phones and suggest the one best suited to #our needs. A second source is a retail outlet belonging to a network pro"ider such as >odaone. Fowada#s, increasing numbers o people bu# through the 3nternet. This is an eample o e8commerce. The great thing about bu#ing online is that #ou can spend as long as #ou like and eamine a lot o inormation. Dou can bu# a Motorola phone rom the Motorola website. 3t will tell #ou about di$erent models o phones, their prices and eatures etc. An ad"antage o bu#ing online is that prices are t#picall# cheaper because #ou are cutting out the middle person. The site is managed or the compan# b# a third part# who processes the orders and deli"ers the mobile phonesHaccessories to customers. The place where #ou are able to bu# sometimes depends on the product. &ome companies like Motorola oten gi"e eclusi"e o$ers to certain retailers. *or eample, when Motorola frst introduced the pink @A@ in the 9, it was eclusi"el# a"ailable through 0arphone arehouse. 3n contrast, +/ phones, are mainl# sold through retail outlets o +/ networks. The reason or this is that the product fts closel# with the distribution channel.
: %romotion
%romotion includes all o the techni-ues that a compan# uses to communicate with other indi"iduals and organisations. 0ompanies like Motorola send communications and consumers recei"e them. An important a"enue or communication is ad"ertising. Ad"ertising is reerred to as 5abo"e the line5 promotion. Ither t#pes o promotion such as special o$ers and discounts are reerred to as being 5below the line5. The t#pe o promotion that is used depends on the stage in the product lie c#cle. *or eample, when a new product is launched, such as the @A@, it makes sense to make people aware. Ad"ertising will communicate the desirabili t#, emotional benefts and eclusi"e eatures o the product. Motorola works in close partnership to promote its phones with retailers. %romotion costs are shared with retailers. The more retailers sell 8 the more Motorola is able to help them
2
M#ntra is an 3ndian e8commerce compan# o ashion and casual liest#le products, head-uartered in 'engaluru, arnataka, 3ndia. The compan# was ounded in 44G b# 3ndian 3nstitute o Technolog# graduates with a ocus on personalisation o git items. '# 414, M#ntra shited its ocus to the online retailing o branded apparel. 3n Ma# 41, M#ntra.com merged with *lipkart to compete against Amaon which entered the 3ndian market in Bune 41+ and other established oJine retailers like *uture /roup, Adit#a 'irla /roup and @eliance @etail
%arent 0ompan# 0ategor# &ector TaglineH &logan 9&% &egment Target /roup %ositioning &trengths
eaknesses Ipportunities
MYNTRA *lipkart Ecommerce Inline @etail8Apparel, *ootwear and more 3ndia!s largest online ashion store Kigh ashion appeal at a$ordable rates STP *ashion conscious customers who belie"e in shopping rom home *ashion conscious, medium income, #oung online shoppers >ibrant ashion store at a$ordable rates SWOT Analysis 1.Merger with ?ipkart has increased its strength and capacit# . @etention o its independence e"en ater merger. +.I$ering o more than 1.; lakhs products with o"er 1444 brands . ELcient suppl# chain and deli"er# capabilit# helps it to cater to 4,444 locations. .NEnd o season saleN Oa huge success, @s.4 crore worth o goods sold ;./ood ad"ertising and marketing campaigns on T>, internet and print 1. 3ntense competition means limited market share growth 1. &elling pri"ate labels can increase their margin .%artmership with celebrit# designers, boll#wood mo"ies can increase its ashion appeal. +.'ridal collection to tap the big wedding market in 3ndia
Threats
0ompetitors
. Epansion into global markets can boost business 1./lobal competitors like Amaon slowl# making its ora# . *ashion segment is becoming popular leading to increased competition +. Economic ?uctuations and una"orable go"t policies . Adding to its niche proposition is its app onl# business decision and closing website might pre"ent it rom capturing the growing online space. 0ompetition 1. Babong .Pimeroad +. Amaon . DepMe
14
