Market Segmentation Apple

8/12/2019 Market Segmentation Apple

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MARKET SEGMENTATION

Meaning

In todays competitive business world, it is not possible to sell

everything everyone. There are different types of customers, each

with different needs and wants, tastes and preferences, different

purchasing power and so on. For instance, the Mumbai markets do

have various types of customers such as college student, office

goers, retired people, higher income people, middle income people,

lower income people, Maharashtrians, Gujarathis, Goans, etc. gain

in each category of customers representing the most desirable

market and accordingly make every possible effort to induce and

encourage them to buy the goods or services. Thus, market

segmentation enables a firm to frame different marketing mi!es for

different groups of customers.

Normally, the market is made up of people with:

Different characteristics,

Different needs and wants,

Different purchasing power, Differences in the degree of willingness to buy.

Differences in eligibility to buy.

If marketers wish to do an effective marketing job in such diverse and

heterogeneous markets, they must identify the differences in the different

group of people in the market. This is because one marketing mi will not

satisfy them. In other words, different marketing mies have to be designed

to satisfy different marketing groups. Thus, there is a need for market

segmentation.

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"#$%&"#M#'T( )F #FF#*T&+# M"#T (#GM#'TT&)'

1. Heterogeneity:

The various groups of the consumers for the type of product which the

firm is selling in the market must be different. In other words, potential

customers characteristics and wants must be heterogeneous i.e.,

different from each other.

2. Availability of data:

The information on the consumer variables must be easily available. The

marketing manager must not find it difficult to collect the data.

"onsumers, dealers and other must be willing to provide correct data.

#therwise, marketing segmentation process may be of no use.

3. Measurability:

The segment variables must be capable of measuring. It refers to the

measurement of the si$e of the target market and also the purchasing

power of the segment market. The other segment variables such as the

age factors, use rate, etc. must be capable of measuring. In other words,

the segments can be identified and compared in terms of relative

attractiveness.

4. Sustainability:

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It refers to the degree to which the segments are large and&or profitable.

The market segment must be sufficient in si-e so as to design a

suitable mi! to the satisfaction of target segment and at the same

to enable the firm to earn sufficient profits. There is no sense inconcentrating marketing efforts if the si-e of the market segment

does not bring returns in form of profits. There must be at least one

segment large enough to serve profitably.

5. Approa!ability: &t refers to the degree to which the segments can be effectively

reached and served. The segment market must be located at a

particular place and is e!posed to certain advertising media, and

then only it can be effectively reached and served

6. Ation ability:

It refers to the degree to which effective marketing programmes can be

formulated for attracting and serving the customers. There is no sense

in identifying several market segments, if the firms are not in a

position to undertake marketing programmes to serve and satisfy

the consumers.

7. Responsiveness:

It refers to the degree to which the market segment responds to the

marketing programmes adopted by the firm. 'or instance, the marketing

firm may develop high (uality products for (uality products for (uality

conscious people. They should react favourably towards such

products. &n other words, there should be a favourable response

from the segment market.

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"ASES O# MARKET SEGMENTATION

There are several ways or methods to segment a market. *uch ways or a

method depends upon consumer characteristics and their responses to the

products or services.+ paradigm shift has taken place in the way the Indian corporate is-

viewing customers. There has been a shift from organi$ing byproducts to

organi$ing bymarket segments. 'or eample, /aruti is segmenting is

customers on the basis of economic and premium class, which was not

done previously.

I. GEOGRA$HI% SEGMENTATION :

In geographic segmentation, the market is sub divided on the basis of area.

"egion

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1egional segmentation is made because regional differences eist in

respect of demand for products. 'or eample, buyers from south India are

different from the buyers in north.

%rban / "ural

There are differences in buying behavior of urban and rural customers.

+ccordingly, marketing strategies must be designed depending upon their

likes, dislikes, moods, preferences, and fashions and buying habits.

0ocality

"onsumer2s buying behavior is also reflected by the locality within a

particular city. 'or instance, there are differences in terms of buying

patterns of people residing at 3arel and 3arle, within a city like /umbai.

II. &EMOGRA$HI% SEGMENTATION:

Demography refers to study0about the different aspects of population.

/arkets can be divided on demographic factors like age, gender, education

etc. The various demographic factors are:

ge

The primary method of analy$ing markets by age is to divide the total

population into age groups and analy$e the wants and needs of each

group.

Gender

/arketers devote much attention to male and female differences in

purchasing. Today, marketers segment female groups into college girls,working women, housewives, etc. +gain, male groups can be further

classified.

&ncome

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5uying patterns depends on income of the consumers. No two individuals

or families spend money in eactly the same way. If a researcher knows a

person2s income, he can predict with some accuracy wants and needs of

that person and how those wants are likely to be satisfied.

#ducation

/arket can be segmented on the basis of education 6 matriculation or less,

under graduates, graduates, postgraduation, etc. /ost studies show that

the highly educated people spend more than the poorly educated in respect

of housing, clothing, recreation, etc.

Family (i-e

The consumption patterns of certain products definitely vary with the

number of people in the household. /anufacturers of certain products such

as icecream market family packs.

Family 0ife *ycle

The market can be segmented as bachelors, newly married couples,

married with grown up children, older married couples, etc. 'or selling tours

and vacations, 7ife Insurance policies etc., this segmentation is of use.

"ace and "eligion

"onsumption patterns of certain products differ on the basis of religion and

race, such as alcohol and meat products.

III. SO%IOGRA$HI% SEGMENTATION:

The market can be segmented on the basis of sociological factors such as :

*ultural &nfluences

The marketer must consider cultural influences while segmenting markets.

3eople in urban areas are influenced to a certain etent by western culture,

whereas, many people in villages follow more or less traditional culture.

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"ulture is influenced by our sociocultural institutions like family, religion,

language, education, and so on.

&nfluence of (ocial *lass5uying behaviour is reflected by the influence of social class to which the

consumers belong. The social class can be segmented as 6 lower lower,

middlelower, upperlower, lowermiddle, middlemiddle, uppermiddle, and

lowerupper, middleupper and upperupper. 'irms dealing in clothing,

home furnishing, automobiles, etc. can design products for specific social

class.

&nfluence of "eference Groups

+ reference group may be defined as a group of people who influence a

person2s attitudes, values and behaviour. "onsumer behaviour is

influenced by the small groups to which they belong or aspire to belong.

These groups include family, religious groups, a circle of close friends or

neighbours, etc. 9ach group develops its own set of attitudes and beliefs

that serve as guidelines for members2 behaviour.

IV. $S'%HOGRA$HI% SEGMENTATION:

It refers to individual aspects like life style and personality.

0ife1(tyle

*ellers study the lifestyles of the consumers. 'or eample, a manufacturer

of readymade garments may design his clothes differently matching

different life styles of collegestudents more fashionable-, officegoers

more sober- and so on.

2ersonality

3ersonality characteristics such as leadership, independence, masculine,

impulsive, ambitious,etc., do influence buying behaviour.


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V. "EHA(IO)RA*SEGMENTATION:

In this case, buyers are divided into groups on the basis of their response

to the product 6 usage rate, user status, loyalty status, buying motives, andso #n.

%sage "ate

#ne possible way to define target market is by product usage. There can

be heavy users, medium users, light users, and nonusers. Targeting on this

basis may be useful to the sellers who want to increase consumption by

present users and to convince and induce nonusers to become users.

%ser (tatus/arket can be segmented on the basis of user status such as: nonuser,

euser, potential user, firsttime user, regularuser, ; so on.

"eadiness (tage

/arket can be segmented on the basis of people2s readiness to buy the

product. *ome people are well informed and are interested to buy the

product. *ome other may be well informed but not interested to buy the

product.

3uying Motives

5uyers buy the product with different buying motives such as economy,

convenience, prestige, etc. +ccordingly promotional appeals can be

directed to the target audience.


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(#GM#'T&'G 3%(&'#(( M"#T(

5usiness markets can be segmented on the basis of geographic location,

type of organi$ation, customer si$e, product use, demographic factors, and

usage rate benefits sought.

Geographic location

The demand for business products varies considerably from one

geographical area to another as a result of differences in climate. Terrain,

natural resources or similar factors. It is basically used for serving

industries that are concentrated in certain location.

Type of organi-ation

+nother basis for segmenting organi$ation market is the type of

organi$ation in that market. Different types of organi$ation often re(uire

different product features, distribution system and price structures. =ence

due to these variations in needs, a marketer may decide to concentrate on

a single segment with one marketing mi or may focus on several

segments with multiple mies.

(i-e of customer

The market may be segmented on the basis of si$e of the customer to be

served. +ccordingly marketers employ different marketing practices to

reach various customer groups.

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2roduct use

Depending upon product use the markets can be segmented as products

use for production, research or other business operations.

%sage rate

*egmenting business market on the basis of usage rate includesheavy

users, light users or nonusers.

#ther factors include:

*egmentation on the basis of purchasing criteria (uality, service,price-

*egmentation on the basis of purchasing function decentrali$ed and

centrali$ed-

*egmentation on the basis of loyalty.

(T#2( &' T4# M"#T (#GM#'TT&)'

The following are the steps or procedures in developing a segmentation

strategy:

+, &efine t!e relevant -ar.et:

5efore making an attempt to define market segments, a company should

define its relevant market. 'or eample, a company that produces a softdrink is in the soft drink market, and a company that is selling sports cars is

in the sports car market. + proper definition of relevant market will keep the

company on the right track.

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/, Analy0e !arateristis and 1ants of potential usto-ers:

+fter defining its relevant market, the company should collect data that

describe the characteristics and wants of the potential customers. This data

can be collected from secondary research collecting and using data that is

already available in published form-. The data can also be collected from

primary sources by conducting a field survey.

2, Identifying bases for seg-entation:

The company can proceed to identify bases for segmenting the market.

The bases include geographic, demographic, sociographic, psychographic

and behavioural. The company may identify all bases or one or two bases.

*pecific segmentation variables, based on the data collected might includeage, se, occupation, lifestyle, brand loyalty, etc.

3, &efine and desribe -ar.et seg-ents:

+fter identifying possible segmentation variables, the company can

proceed to define the various market segments. This can be done by

developing market segment profiles which describe the characteristics and

wants of the people in each market segment.

The people in one segment will be highly similar to each other in terms of

their characteristics and wants. =owever, they will be different from the

people in other segments in terms of their characteristics and wants. Thus,

a company in the soft drink market can define market segments as fitness

conscious, fun loving college students, occasional sippers, sociable, and

the like.

4, Analy0e o-petitors5 positions:

+fter defining and describing the market segments, the company proceeds

to identify the major competitors in each of the segments. #ne approach is

to survey a sample of consumers in each of the segment and determine as

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to how they rate various brands in terms of features, price, taste, etc. and

find out the reasons as to why they prefer a particular brand over others.

6, Evaluate -ar.et seg-ents:

The company must conduct cost benefit analysis of serving a particular

market segment. *erving a market segment profitably re(uires that the cost

of the marketing effort be less than the sales revenues reali$ed from

serving it. 9valuating the market segments in terms of the generation of

sales revenue and the cost of marketing efforts helping ranking the

segments in terms of relative attractiveness.

7, Selet -ar.et seg-ents:

+fter identifying the various market segments and evaluating their relative

attractiveness, the company must select the market segment that it intends

to serve. @hile selecting the market segment, the company must consider:

#verall company2s objective.

1esources and capabilities of the firm.

The level of competition.

The strengths and weaknesses of competitors.

The epected competitors2 reaction to the firm2s entry into one or

more segments.

8, #inali0ing t!e -ar.eting -i9:

+fter selecting market segment, the company must then finali$e the

marketing mi appropriate for specific market segment. In other words, thecompany has to make decisions in respect of the product, price, promotion

and distribution efforts. It is to be noted that each segment needs a

separate marketing mi, because consumers in each segment are different

from those of other segments.

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5+'TG#( )F M"#T (#GM#'TT&)'

+, &eter-ination -ar.et opportunities:

/arket segmentation enables to identify market opportunities. The

marketers can study the needs of each segment in the light of current

offerings by the competitors. 'rom such study, the marketer can find out

the current satisfaction of customers. *egments with low level of

satisfaction from present offering may represent ecellent market

opportunities.

'or instance, customers may not be satisfied with the current offering of

water purifiers in terms of product or aftersale service. *uch situation will

enable a marketer to launch a new range of water purifiers and marketthem well.

/, Adust-ents in -ar.eting appeals:

*ellers can make best possible adjustments of their product and marketing

appeals. Instead of one marketing program aimed to draw in all potential

buyers, sellers can create separate marketing programs designed to satisfy

the needs of different customers. 3roper advertising and sales promotional

appeals can be made depending upon the target audience.2, &eveloping -ar.eting progra-s:

"ompanies can develop marketing programmes and budget based on a

clearer idea of the response characteristics of specific market segments.

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They can budget funds to different segments depending upon their buying

response.

3, &esigning produt:

/arket segmentation helps in designing product that really match the

demands of the target audience. 3roducts with high market potential can

be designed and directed to meet the satisfaction of the target market.

4, Ti-ing of -ar.eting efforts:

It helps in setting the timing of the promotional efforts so that more

emphasis is placed during those periods when response is likely to be at its

peak. 'or instance, consumer goods can be heavily advertised to"hristians during "hristmas season and to =indus during Diwali time.

6, Effiient use of resoures:

5y tailoring marketing program to individual market segments,

management can do a better marketing job and make more efficient use of

marketing resources. 'or eample, a small firm can effectively use its

limited resources 6 money, sales force, etc. 6 in one or two segmentedmarkets rather than unsuccessfully, aiming at a wider market.

7, "etter servie to usto-ers:

/arket segmentation enables the company to concentrate its marketing

effort in a particular market area, thereby, providing a better service to the

target customers. 3roper marketing segmentation cans facilitate customer

satisfaction.

8, Helps to fi9 pries:

The marketing segmentation also enables to fi prices of the goods and

services. *ince different market segments have different price perceptions,

it is necessary to adopt different pricing strategies for different markets. 'or

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instance, the prices for lower income groups will have to be lower and

accordingly the product and promotional efforts are adjusted.

;, Assist in distribution strategies:

If you have a specific market segment you2re trying to reach, you can

decrease your distribution channels, targeting those outlets that have the

highest amount of traffic from your desired customers. #nce you learn

where your main target customer shops, you can focus your sales and

promotions budgets in those outlets.

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sophisticated watches, etc., are purchased only by the rich class. =owever,

nowadays, a large number of customers belonging to the middle class do

purchase such items. Therefore, it is difficult to strike a line between the

rich and the near rich.

2, )npreditable onsu-er be!avior:

It is (uite difficult to judge precisely the behavior of the customers. They

may have different perceptions about product, its features, price, etc. such

perceptions do change at different times. Today, the customer may be

price consciousA tomorrow he may be (uality conscious, then he may again

be price conscious. Thus, it is very difficult to judge consumer behavior.

3, Inade=uate -ar.et infor-ation:

The marketing manager may not be able to get the eact market

information to base his decisions on market segmentation. This may be

due to wrong information supplied by the consumers in respect of their

income, and other aspects or the market data collectors may be ineffective

to collect the right data. +s such the decisions on market segmentation

may be based on inade(uate, incorrect, and outdated information.

4, >rong udg-ent:

/arketing people may wrongly interpret the marketing data. To a great the

(uality of market segmentation depends upon the (uality of marketing

people their imagination, intelligence, maturity and eperience.

6, %!anging environ-ent:

The changing market environment may also throw the process of market

segmentation out of gear. Imported goods may flood the market as a result

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of market liberali$ation policies. In such instance, the market segments

may not respond to the marketing mies designed by the Indian firms.

7, &iversity of Indian -ar.et:

The diversity of Indian markets like ruralurban, richpoor, etc., poses a

problem to have a systematic segmentation of market. +gain, ecessive

market segmentation amount to market fragmentation and this may not be

profitable to the company.

8, Ti-e onsu-ing and e9pensive proess:

*egmenting markets involves lot of time, effort, and money on the part of

the firm. +t time, there may a waste of time, effort and money, especiallywhen the market situation changes considerably before implementation of

the market segment strategy.

photos

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$OSITIONING

The term BpositioningC was made popular in !>% by two marketing epert.+l 1ies and ack Trout. They contended that marketing is more a battle of

perceptions than of products.

3ositioning is the most fundamental concept or tools in marketing. The

product or brand must register in the buyer2s mind. =ow strongly it does so,

would decide its position in the market place.

3ositioning starts with a product. + piece of merchandise, a service, a

company, an institution or even a person. 5ut positioning is not what youdo to a product. 3ositioning is what you do to the mind of the respect. That

is, you position the product in the mind of the prospect.

STE$S IN $RO&)%T $OSITIONING

+, Identifies o-petitive differenes:

The marketer should identify the competitive differences of his product orservice. The differences can be:

a- 3roduct differences such as features, design, packaging, etc.

b- *ervice differences such as delivery, aftersaleservice, etc.

c- 3ersonnel sales people, service technicians, etc.- differences such

as competence, nature&manners, etc.

d- Image differences such as the goodwill of the producers, brandname, brand price, brand advertising, etc.

/, Seleting i-portant differenes:

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The marketer must select the most important differences that would

differentiate it from that of the competitor. 'or eample, if marketers of TE

sets claim that they provide ) years guarantee and if a particular marketer

provides years guarantee, then this could be an important differencewhich the firm offers.

2, &eveloping positioning strategy:

The marketer should then make effort to develop positioning strategy. The

marketer may position the brand by following any of the followingpositioning strategy:

a- Fsing specific product feature

b- 3ositioning by 3rice

c- 3ositioning by use

d- 3ositioning by competitors, etc.

3, %o--uniating t!e o-pany5s positioning:

The marketer should select proper media to communicate the company2s

positioning. The right media must be selected to communicate the image of

the brand. 'or eample, an epensive watch like 1ole communicates its

image by associating with the @imbledon Tennis Tournament 1ole

@atches may not be able to communicate the rich image of the rich image

of the brand if it sponsors sport like cricket which is played by few countries

and that too liked by masses.

4, #ollo1 up positioning:

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The marketer may try to follow up the positioning of the brand. This can be

done by undertaking research, or by analy$ing the sales of the brand. If the

positioning strategy is not successful, the marketer may reposition the

brand with alternative strategies, so as to create a distinct image in theminds of target customers.

photos

2)(&T&)'&'G (T"T#G(

The adviser can adopt different positioning strategies in order to develop or

reinforce a particular image for the brand in the mind of the audience. The

various positioning strategies are:

+, )sing speifi produt features:

The most popular positioning strategy is to highlight specific product

features that would benefit the customer. +t times, a new product can be

positioned with respect to product features that competitors have ignored. It

would be advisable to highlight a specific but important feature rather than

positioning along several features.

/, $ositioning by prie and =uality:

In many product categories, the price (uality feature is so important that it

needs to be considered in any positioning decision. The adviser may

position the product as (uality product that is worth the money. #ther may

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position the product as (uality product but still at a reasonable&affordable

price.

2, $ositioning by use:

The brand can be positioned by associating it with a use or application. The

adviser may etend the use of the brand

3, $ositioning by user ategory:

The brand may be associated with a user or a class of users. The

advertiser makes use of famous personalities or models to influence the

audience.

4, $ositioning by produt lass:

*ome advertisers highlight the product class association. The toilet soap

Dove positioned itself apart from the soap category as a cleansing cream

product for women with dry skin.

6, $ositioning by ultural sy-bols:

*ome advertisers may use cultural symbols to differentiate their brands

from competitors.photos

7, $ositioning by o-petitors:

In some cases, a reference may be made directly or indirectly to one or

more competitors. 3erhaps the most famous positioning strategy of this

type was that from +vis.

8, $ositioning by produt5s benefits:

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The advertiser can position the product on the basis of special benefit of

the product. 'or eample: Bfast to cook, good to eatC of /aggie Noodles.

;, $ositioning by orporate i-age of identity:

The most common base for positioning is corporate image or identify.

*cores of products or brands use their corporate names to position

themselves. 3roduct ranging from health care and cosmetics to consumer

durables and computers use this type of positioning.

photos

CASE STUDY

Apple Inc .

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INTRODUCTION

pple &nc., formerly pple *omputer, &nc., is an +merican multinational

corporation head(uartered in "upertino, "alifornia that designs, develops,

and sells consumer electronics, computer software and personal

computers. Its bestknown hardware products are the /ac line of

computers, the i3od music player, the iphone *martphone, and the ipad

tablet computer. Its consumer software includes the #*

G and i#* operating systems, the iTunes media browser, the *afari web

browser, and the i7ife and iwork creativity and productivity suites.

The company was founded on +pril !, !>8, and incorporated as +pple"omputer, Inc. on anuary ), !>. The word H"omputerH was removed

from its name on anuary >, %??, the same day *teve obs introduced the

i3hone, reflecting its shifted focus towards consumer electronics.

+pple is the worlds secondlargest information technology company by

revenue after *amsung 9lectronics, and the worlds thirdlargest mobile

phone maker after *amsung and Nokia. Fortunemaga$ine named +pple

the most admired company in the Fnited *tates in %?? %?!%, the company had

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companies for the first time, rising !! places above its %?!% ranking to take

the sith position.

Mission Statement

HTo make a contribution to the world by making tools for the mind that

advance humankind.H

+pple "omputer is committed to protecting the environment, health and

safety of our employees, customers and the global communities where we

operate. @e recogni$e that by integrating sound environmental, health andsafety management practices into all aspects of our business,we can offer

technologically innovative products and services while conserving and

enhancing recourses for future generations. +pple strives for continuous

improvement in our environmental, health and safety management systems

and in the environmental (uality of our products, processes and services.

Vision and values

+pple is committed to bringing the best personal computing eperience to

students, educators, creative professionals and consumers around the

world through its innovative hardware, software and Internet offerings.

PHOTOS

Foundin and inco!po!ation

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+pple was established on +pril !, !>8, by *teve obs, *teve

@o$niakand 1onald @ayneK!L to sell the +pple Ipersonal computer kit, a

computer single handedly designed by @o$niak. The kits were handbuilt

by @o$niakK%0LK%4L

and first shown to the public at the =omebrew "omputer"lub.K%8LThe +pple I was sold as amotherboardwith "3F, 1+/, and basic

tetualvideo chips-, which is less than what is today considered a

complete personal computer.K%LThe +pple I went on sale in uly !>8 and

was marketpriced at J888.88 J%,8>? in %?!) dollars, adjusted for

inflation-.K%LK)?LK)!LK)%LK))L

+pple was incorporated anuary ), !>,K8Lwithout @ayne, who sold his

share of the company back to obs and @o$niak for J


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obs and several +pple employees, including ef 1askin, visited Gero

3+1"in December !>> to see the Gero +lto. Gerogranted +pple

engineers three days of access to the 3+1" facilities in return for the

option to buy !??,??? shares


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can and +pple is not the 3orsche of the computers anymore, this would

hurt more the brand than maybe the increasing sales because of lower

prices, and in good times, where everybody has more money, +pple would

have the problem that they cannot rise prices, because everybody epectsa cheap +pple the macroeconomics deflation problem-.

2resence in india

+pple has seen increased success in India and is looking to significantly

epand its presence in the country. The 9conomic Times, a daily Indian

newspaper, isreporting that +pple plans to triple its eclusive stores+pple

3remium 1esellers- from over 84 to about %?? by %?!4 and epand the use

of multibrand stores vs. previously being focused on selling through

carriers and premium resellers.

Oey Takeaway: India is such a large market with a growing middle class

that +pple can grow significantly. It has recently ramped its efforts and is

seeing success. =owever it is late to focus on this country so *amsung

market share of about )


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%. Demographic

). 3sychographic

0. 5ehavioral

Geographic

5emographic

ge

NestlP segmented market for its major products based on the age. 'or theproducts "erelac, 7ectogen, Ooko Orunch, Nido, Nestle divided the market

segment for baby and children of different ages.

&ncome:

Nestle segmented their maret !ased on "#stomer$s in"ome in an e%%e"ti&e 'a(.

)ccupation:

Nestle segmented the maret !ased on their "#stomer$s o""#pation.

2sychographic

3ehavioral:

3enefits:

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Target Mar.eting:

/arket segmentation reveals the firm2s market opportunities. Then the firmsort market targeting by evaluating the various market segments and

deciding which and how many segments it will target.

+pple Inc evaluated the various market segments on the basis of segment

si$e and growth, segments, structural attractiveness, and company

objectives and resources and decided to launch their operation all over the

country. +pple separate their target market because of having uni(ue need

and wants.

+pple Inc selected their target market into two market coverage strategies:

)ndifferentiated:

+pple has offered several products such as Nescafe ) in ! /aggi noodles,

and Oit Oat to the people of the whole 5angladesh without differentiating

the market segment.

&ifferentiated:

+pple also selects the differentiated marketing. It offers different product for

different segments based on different age, occupation, season and climate.

*oncentratedThrough concentrated marketing, +pple achieves a strong

market position because of its greater knowledge of consumer needs. In

the niches it serves and special reputation it ac(uires. +pple speciali$es inproducing baby foods. It offers nutritious milk powder 7ectogen ! for babies

whose age is less than months and lectogen ) for babies whose is under

!% month. It also offers baby nutrition cerelac for baby less than ! year.

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2ositioning (trategy

5y creating product, service, channel, people and image differentiation

apple reach the consumer touch point more effectively ; efficiently in

comparing with their competitors in the highly competitive food processing

sector.

2roduct 5ifferentiation:

apple brings a lot of product for target customers. They provide %4 types of

minerals in Nido for children. It also provides "erelac and 7actogen! ;) for

newly born baby eclusively. Now the doctors prescribe these products for

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babies to their parents for high nutrition Nescafe is a product which

contains 0 types of categories. They offer Nescafe ice for hot weather,

classic for all ) in ! for those who are busy. They provide /aggi including

/aggi instantA /aggi % minutes which contain various minerals, vitaminsand nutritions. /aggi also provide magi healthy soup and /aggi corn soup

but charge the same price.

*hannel 5ifferentiation

Nestle reach their products to the customers through their epert market

salesman and transportation. *o that their products are much available to

their respective customers.

&mage differentiation:

NestlP2s logo is totally different from its competitors that are greatly

accepted by its customers. 'or that reason customer easily identify them in

the market which is another effective advantage for Nestle.

2eople differentiation

Nestle has a large number of employees that are highly educated and

trained. In 5angladesh, 0?? employees are working in market "ompany

chairmanA 3eter 5rakeck 7etmathe and "9# 3aul 5ulcke are highly

educated, wise and eperienced people. They are running this business

successfully for a long time.

*ervice differentiation:

+nother advantage for this company is better service for its respective

customers from its competitors. They provide %0 hours hot line service.

=igh (uality checking is maintaining for its customers. Its marketing dept.

and 31 public relation- dept. are working for finding out customer2s new

demands and response toward their products.

(electing an overall positioning strategy

)%


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The full positioning of a brand is called the brands value propositionThe

full mi of benefits up Kon which the brand is differentiated and positioned.

More for more:

/ore for more positioning involves providing the most upscale product or

service and charging a higher price to cover the higher cost. 9actly Nestle

is doing that. NestlP2s products provide more benefit and for that Nestle

charge higher price than other competitors. Nido ensure nutrition and

charge %4? tk for 0?? gm. 5ut 'resh, /arks do not ensure nutrition and

charge less than that of Nido. 1espectively Nescafe, /aggi noodles ensure

(uality for high price, rather than competitors.

2ositioning (tatement

3aby 2roducts:

To babies who are deprived of proper nutrition, Nido, "erelac, 7actogen

are the nutritious milk 3roduct that give you more nutrition than any other

brand because these contain different types of vitamin, mineral etc.

'escafe:

To busy people who drink coffee and have little time for taking rest,Nescafe is the coffee that gives you more energy than any other brand

because it has the highest level of caffeine,

Maggi:

To people, noodles and soup consumer who seek better (uality, /aggi

noodles and healthy soup that gives you proper nutrition than any other

brand because it has the best (uality.

Their motto for business is BG))5 F))5 G))5 0&F

))


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CONC#USION

Nestle has seen a strong start to 2))*+ partl( thans to its strateg( o% in"reasing prod#"t

pri"es ,#i"l( in line 'ith "ommodit( pri"e in"reases. Thro#gh internal resear"h and

de&elopment at Nestl- there ha&e also !een signi%i"ant ad&an"es in the en&ironmental

impa"t o% re%rigerants and pa"aging. itho#t "ompromising prod#"t ,#alit( there 'as a

red#"tion o% 3/2 ))) tonnes o% pa"aging material !et'een 1//1 and 2))*. 0&iden"e sho's

that Nestl- ad&ertised and still ad&ertises its %orm#la as a ris%ree s#!stit#te or e&en a

pre%era!le alternati&e to its prod#"ts+ res#lting in in"reased #se.

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$I$#IO%RA&'Y

Documents

Market Segmentation Apple