Segmentation,Targeting and Positioning

Market segmentation implies identifying homogenous groups in the market and thus dividing the customers into segments based on similar needs.

Why use segmentation?

Benefits to customers:

-       Tailored products

-       Relevant offers

-       Personalised experience

Benefits to brands:

-       Identification of unfulfilled needs

-       Increased customer satisfaction

The major segmentation variables are as follows:

Geographic segmentation: Dividing the market into geographical units like nations,states,cities,regions etc. There are considerable differences in terms of product preferences and requirements across different geographical regions.

Demographic variables: Age and life cycle stage,life stage(getting married,deciding to buy a home,marrying off children etc.),gender,income,generation,Socio economic classification(SEC).

Psychographic Segmentation: Dividing buyers into different groups based on psychological/personality traits,lifestyle or values.

 Behavioral Segmentation: Dividing buyers into groups on the basis of their knowledge of,attitude towards,use of,or response to the product.

 Kissan Jam targets the kids as consumers and the mothers as customers,thus keeping the age and life cycle stage in mind. Kids are always on the look out to eat something quick and tasty ,most often than not consuming junk food. Thus, mothers are targeted to bring about the tasty and nutritious factor combined in Kissan Jam, as at this stage mothers are concerned about the eating habits of kids. Further, when Kissan jam introduced the new low calorie fruit kick spreads, it was further segmenting the customers based on their attitudes and behaviors i.e teenagers becoming health conscious.

Targeting  involves evaluating and selecting the market segments. A brand can either specialise in one segment with a variety of products or it can specialise in one product across different segments.

Product positioning is the place the product occupies in the consumers’ mind i.e the way the product is defined by consumers on important attributes.

The brand can decide what does it wants to promote about the product,keeping in mind the product attributes and benefits,competitors and product class.

Kissan positions itself as ‘ deliciously wholesome products for kids to grow’ by targeting mothers as customers.