Segmentation, targeting and positioning strategy for HAFER

HAFER

Group 6 Marketing Management DAJAL

Marketing Management Project

Segmentation, Targeting and Positioning strategy for HAFER

Group 6

Ankit Uttam

Ayush

Anjali Chauhan

Jaskaran

Divya Marvah

Lizzie

Jerin George

HAFER


Introduction

DAJAL is a Global Company Committed to Building Long-Term Growth in Volume and

Profit and to Enhancing its Worldwide Leadership Position by providing Nutritious Food

Products of Superior Value”

VALUES

Accountability – we feel ownership for driving results

Integrity – we act with the highest ethical behaviour

Pragmatism – we are practical and action oriented

Collaboration – we encourage openness and candour

People – we foster a culture of engagement and passion to excel

DAJAL bets on innovation and growing demand to see off increasing competition on the

breakfast table.

Multinationals DAJAL, PepsiCo's Quaker, GlaxoSmithKline, Nestle and Dr Oetker, and

large domestic food companies Marico, Britannia, ITC Foods, Bagrrys and MTR Foods are

all now fighting for a pie of the Rs 2,000-crore breakfast category, which includes oats,

cornflakes, muesli, dalia and mixes of traditional breakfast like idli and upma.

Product

HAFER-Oat Bran Flakes

Company: DAJAL International corporation

HAFER


STP

In marketing, STP stands for market segmentation, targeting (or target market selection) and

product positioning.

Most marketing textbooks will show the STP as three broad steps. In the following diagram, the three foundation stages of segmentation, targeting and positioning

Segmentation

It means grouping consumers by some criteria, such that those within a group will respond

similarly to a marketing action and those in a different group will respond differently.

Geographical

Metro Size: The product segmentation for our product will be based on Metro and the

future growth prospect of it.

Climate: HAFER-Oat bran flakes have long shelf life. Also there are no specific

storage issues with this product as far as the climate is concerned.

Geo

grp

ahic

al

Metro Size

Climate

Dem

ogr

aph

ic

Age

Income

Occupation

Psyc

ho

grap

hic

Social class

Lifestyle

Personality

Beh

avio

ura

l

Benefit

Loyalty Status

HAFER


Demographic

Age: The consumers are segmented based on the ages, e.g., Kids, Working couple and

Old people.

Income: The customers are mainly segmented into two groups; middle class and

affluent.

Occupation: The occupation based segmentation is done job profiles of the working

couple and their needs of high fibre and nutritious breakfast.

Psychological

Social Class: The customers mainly people with high social index and aspirations

Lifestyle: The lifestyle based segmentation is yields customers that believe in fast and

efficient life and hence crave for a synonymous breakfast alternative

Personality: The customers are independent and high self worth people.

Behavioural

Benefits: The benefits are health benefits and fast preparation.

Loyalty Status: The customers that are not much loyal to other brands and looks for

new alternatives.

Targeting Strategy

After the most attractive segments are selected, a company should not directly start targeting

all these segments -- other important factors come into play in defining a target market. Four

sub activities form the basis for deciding on which segments will actually be targeted.

Out of Differentiated, Concentrated and Undifferentiated Strategy our targeting strategy will

be concentrated strategy since HAFER-Oat Bran Flakes is for a niche group of customers and

by using this strategy we will be able to target working couples and growing kids.

HAFER


Positioning:

When the list of target markets is made, a company might want to start on deciding on a good

marketing mix directly. But an important step before developing the marketing mix is

deciding on how to create an identity or image of the product in the mind of the customer.

Every segment is different from the others, so different customers with different ideas of

what they expect from the product

We will position the product with the tagline “SWEALTH WAY OF LIFE” i.e. sweet

and healthy.

The HAFER-Oat bran flakes will be a sweet for the kids as they like sweet stuff but

this stuff is healthy which would be beneficial to their health. For the adults, the

benefits of this particular brand outweigh the benefits offered by other cereals in the

market.

This in turn would sway the customers from the regular brands to HAFER-Oat bran

flakes and even small kids and teenagers would like it and ask their parents to buy

them HAFER-Oat bran flakes

Further the only competitor in the market is Baggry's whose oats are not tasteful

which would also position our product as tasty

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Product Benefits:

Benefits of Oat Bran

Every Time You Add Oats to your Diet, It may help in improving your Health

Oat is a whole grain like wheat, barley, corn and is called “jai” or “javi” in Hindi. Oat is

natural and one of the superior sources of fibre. It is a heart friendly grain, containing Zero

Cholesterol and Zero Trans fatty Acids

Heart Friendly Oats

As a part of healthy lifestyle, 3g of soluble fibre daily from oats in diet low in Saturated fat

and cholesterol may reduce the risk of heart disease.

Source: US FDA

Oats and Weight Management

Oats are good source of dietary fibre. Research shows that high intake of dietary fibre may

help in weight management

DAJAL Marketing Strategy for HAFER-Oat Bran Flakes

Well-constructed objectives are SMART objectives. They must be:

Specific

Measurable

Achievable or Agreed

Realistic

Time-related.

HAFER


Each of the objectives set by DAJAL is clear, specific and measurable. The objectives were

considered to be achievable and were communicated to all staff. This made sure that all staff

agreed to follow certain actions to achieve the stated aims. The objectives were set over a

realistic time-period of three years. By setting these objectives DAJAL set a direction that

would take the business to where it wanted to be three years into the future.

Marketing Strategy

Having created an aim and set objectives, DAJAL put in place a process of planning to

develop a strategy and a series of actions. These activities were designed to meet the stated

aim and range of business objectives.

1. Supporting improved food labelling

In the area of food labelling, DAJAL introduced the DAJAL GDAs to its packaging, showing

the recommended Guideline Daily Amounts. These GDAs allow consumers to understand

what amount of the recommended daily levels of nutrients is in a serving of DAJAL food.

2. Sponsoring swimming programmes

For many years DAJAL has been working to encourage people to take part in more physical

activity. The company started working with the Swimming Federation of India (SFI) as far

back as 1997, with whom it set some longer term objectives. More than twelve million people

in the India swim regularly.

HAFER


DAJAL plans to become the main sponsor of swimming in India. This ensured that DAJAL

sponsorship reached all swimming associations so that swimmers receive the best possible

support. DAJAL sponsors the SFI Awards Scheme with more than 1.8 million awards

presented to swimmers each year. This relationship with the SFI has helped DAJAL

contribute in a recognisable way to how individuals achieve an active healthy balanced

lifestyle. This reinforces its brand position.

Promoting exercise

Working with the SFI helped DAJAL set up links with a number of other bodies and partners.

For example, Hero is the India's leading sustainable transport organisation. Hero looks at the

different ways that individuals can meet their transport needs in a way that reduces

environmental impact. It is the co-ordinator of the National Cycle Network.

This provides more than 10,000 miles of walking and cycle routes on traffic- free paths

throughout the India. To meet its business objective of encouraging and supporting physical

activity DAJAL is developing a promotion for a free cyclometer which will be advertised on

television in 2014.

Walking is one of the easiest ways for people to look after themselves and improve their

health. To encourage people to walk more often, DAJAL has supplied a free pedometer

through an offer on All-Bran so that individuals can measure their daily steps.

During 2013 more than 675,000 pedometers were claimed by consumers. From a research

sample of 970 consumers, around 70% said they used the pedometer to help them walk

further. DAJAL Corn Flakes Great Walk 2012 raised more than £1 million pounds for charity

on its way from Mumbai’s Gateway of India.

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STRATEGY 2

Communicating the strategy

Effective communication is vital for any strategy to be successful. DAJAL success is due to

how well it communicated its objectives to consumers to help them consider how to 'Get the

Balance Right'. It developed different forms of communication to convey the message 'eat to

be fit' to all its customers.

External communication

External communication takes place between an organisation and the outside world. As a

large organisation, DAJAL uses many different forms of communication with its customers.

The company has also produced a series of leaflets for its customers on topics such as eating

for health and calcium for strong bones. These are available on its website.

Internal communication

Internal communication takes place within an organisation. DAJAL uses many different ways

to communicate with its employees. For example, DAJAL produces a house magazine which

is distributed to everybody working for DAJAL. The magazine includes articles on issues

such as getting the balance of food and exercise right. It also highlights the work that DAJAL

has undertaken within sport and the community.

To encourage its employees to do more walking, DAJAL supplied each of its staff with a

pedometer. Such activities have helped DAJAL employees to understand the business

objectives and why the business has created them. It also shows clearly what it has done to

achieve them.

Research undertaken by DAJAL as part of the 2013 Family Health Study emphasised that a

balanced diet as well as regular exercise were essential for good all round health and

wellbeing.

HAFER


DAJAL is demonstrating good corporate responsibility by promoting and communicating this

message whenever it can and by investing money in the appropriate activities. This was the

broad aim. To achieve this aim, DAJAL set out measurable objectives.

It developed a business strategy that engaged DAJAL in a series of activities and

relationships with other organisations. The key was not just to create a message about a

balanced lifestyle for its consumers. It was also to set up activities that helped them achieve

this lifestyle.

FUTURE TRENDS

In a rapidly changing and competitive business environment, it is not easy to predict:

Future trends in consumer tastes and preferences

Competitors' actions

Market conditions.

Brand managers aim to develop a long-term strategy to meet a range of objectives such as:

Growing market share

Developing a unique market position

Creating consumer or brand loyalty

Generating a targeted level of profit.

Competitors:

Major publicly-traded competitors of DAJAL include Baggrys and Kellogs.

TRENDS IN OATS SEGMENT

INDIAN BREAKFAST FOODS MARKET SCENARIO

According to reliable market research analysts, the Indian branded breakfast foods market is

now estimated at around $A100 million approximately. In

volume terms the total market size for all breakfast foods put together is in the vicinity of

14,000 tonnes of which rolled oats account for 4,000 tonnes per annum. The market for oats

HAFER


alone accounts for more than 30% in volume and 18% in value next only to corn flakes

(which represents nearly 60 % of the total

demand).

The Indian breakfast market assumes significance because of growing

“health consciousness”,especially amongst the Indian middle classes in excess of 330 million.

DOMESTIC DEMAND

According to reliable market analysts, annual demand for imported oats by the breakfast

foods manufacturing industry ranges from 4,000 to 5,000 tonnes

Local production up in the Himalayan ranges in India and Bhutan is insignificant and is

predominantly used as a cattle fodder in that region. As a result, India imports oats from

Australia and other sources to meet the entire requirements of the breakfast foods

manufacturing segment. Demand projections are expected to far exceed the current annual

growth rate of over ten percent during the last two years in tandem with the Indian economic

growth. According to a major Indian market player –BAGRRYS –the oats market growth has

been phenomenal and rapid because of perceived health benefits. Beta glucan found only in

oats helps lower cholesterol and blood pressure. It also helps diabetics by lowering post

meals glucose levels.

With the increasing spread of diabetic and coronary diseases in India, oats is a category

expected to record rapid growth rates in the years to come as the Indian

consumers get increasingly health conscious with improvement in living standards. It is not a

niche category any longer. Although pricing is a factor, this category is now witnessing a

dynamic and positive growth.

Based on statistical data, based on the Indian Ministry of Commerce oats imports into India

from various sources of supply are:

April 2012/March 2012 April 2013/ March 2013

Country of

origin

Total Quantity

imported

(tonnes)

Value of

imports. (in US

$ million)

Total quantity

imported. ( in

tonnes)

Value of imports

( US $Million)

Australia 2978 2.04 5781 2.61

Germany 25 .02

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UAE 11

UK 10 11

USA 1

Total 3000 2.05 5817 2.64

INDIAN CONSUMER BASE

India is now undergoing significant demographic and socio-economic shifts which are

transforming the makeup and nature of its consumer base. India has not only the second

largest population next to China in the world but also one of the youngest. It is estimated that

56 %of the population is less than 25 years of age and only 13 %above 50 years. Almost one-

quarter of the population is between 20-34 years.

.

CONSUMER CLASSES BASED ON INCOME

The Indian consumer market can be divided into four classes based on household income.

They vary in size and their different characteristics will impact on the growth and preferences

of each class.

Consumer

Class

Very rich. Less than 2% of households. Mainly work in large metros as senior professionals

in Government and private sector companies Live in big houses or apartments

and own cars, computers (including Laptops), and colour television similar to

western counterparts. Large disposable incomes. Geographic spread and small

group make them rather difficult for retailers to profitably target.

Middle

Class

Just under 25 % of households. Mainly graduates who are now middle managers

or small business owners. Live in apartments and own colour television sets,

computers, refrigerators, washing machines, telephones, mobiles, motorized two

wheelers or small cars. Enjoy shopping in modern retail outlets with their

families

although loyal to their neighbourhood stores.

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Aspiring

middle

class

About 40 %of households. Occupations include shop workers and farmers. Live

in small apartments. About half own colour television sets and their own

refrigerators and telephones. Very price conscious and shop in traditional, retail

outlets or quasi super markets.

poor Above 40 %of households mainly rural and farmers Shops in traditional wet

markets and neighbourhood stores. Low disposable income.