QUESTION short report to the MD advising him of;

QUESTION ONE:
In order to rescue A Close Shave brand you have been called in by the
Managing Director of B&G Shoprite Ltd. Write a short report to the MD
advising him of; the importance of market segmentation, targeting and
positioning for a branded product aimed at the consumer.

In
order to rescue A Close Shave
the organization needs to familiarize with the STP model and use it towards
achieving the organization objective. STP marketing model is a
three-step approach to building a targeted marketing plan. The “S”
stands for segmenting, the “T” for targeting and the “P”
for positioning.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Market segmentation is the initial stage where
the entire market is now divided into various niches with specific needs by
using different variables such as demographic, psychographic, geographic and
behaviour. All the
potential market segments that could be targeted for the product should be
listed at this stage and important characteristics of each segment should be
determined. For this case B&G Shoprite should segment their market for the
men who need to shave their beardinto various segments. These segments will then help them target a
market that will be interested in the A Close Shave.

Market targeting, this stage follows after the
entire market has been segmented into multiple and distinct segments. Different
marketing campaigns should be introduced that will appeal to each market
segment.  A market segment will now be
selected at this stage to target the organization’s upcoming campaign. Once the
marketers get the information on the targeted market, they will be able to
influence the marketing mix 4Ps which are product, price, promotion and place
in order to meet the customers’ needs.

Market positioning;atthis stage the company aligns
the brand or products in the target market. Generally the goal is to offer the
customers products of excellent quality, competitive price as well as excellent
service and that is how B& G has positioned itself in the industry.
Positioning serves as the company’s big picture-guide in building the marketing
campaign for the targeted market.

Thus
going through this process will allow
the organization’s marketing department to formulate a marketing strategy for
different market segments which will enable to meet the needs and wants of the
targeted market whose needs and wants are not being met.The following
are the importance of market segmentation, targeting and positioning;

Focus
on the right consumers; by
conducting this process B&G Shoprite will be able to target the consumer
population to be served. The marketing mix and way and way on how to serve
these customers will now be easily influenced and planned. This will help to
serve the targeted customers better rather trying to serve just any one.

Utilization
of resources efficiently and effectively;using the STP model will enable the B&G Shoprite  use its resources in the best way possible
since the consumers are split into different groups and the company will focus
on the targeted ones. In turn this will reduce waste and result to optimum
utilization of the available resources.

Better
and increased knowledge of the market;by using the STP the company will have a better understanding of the
market because during segmentation marketing managers will have to study the
characters of each segment including their needs, wants and preferences. As a
result this will reduce the risk in deciding exactly where, when, how and to
whom the product should be served to. Efficiency in marketing will also
increase.

Creates
strong buyer loyalty; by using
STP model through market positioning the company will be able to create a good
status for itself which differentiate it with other companies. By doing so this
creates a lasting effect and impression on the market for B&G Shoprite.

Assess
competitors; by using STP
model through market segmentation the company will be able to know if the
market segments are served well with competitors. This will help to know their
strength and weakness of the competitors and as result the company will be able
to know which market segments to concentrate on and which ones to let go.

Identifying
market opportunities; with the
STP model B&G Shoprite will be able identify other market opportunities
aside from the targeted market after the market segmentation process. The
company can use the information gained in the process to create other products
in the industry or improve the existing ones to meet the needs of other
segments.

QUESTION TWO:How
B&G Shoprite might consider segmenting the market for A Close Shave.

There is no single way to
segment a market. A marketer has to try different segmentation variable, alone
and in combination. Suppliers must look for broad classes of consumers who
adapt in their products or services needs and buying habits (Kotler&
Armstrong, 2008). B&G Shoprite can segment the market by using the following
variables;

Demographic
segmentation;this implies the study of the population.
Demographic segmentation is based on variables such as age, income, education,
ethnicity, sex, marital status, place of residence and so on.Demographic
segmentation explains who the customer is. Thus from these variables B&G
Shoprite can create the following market segments; men aged 18 to 30, men
with higher purchasing power and men with low purchasing power.

Psychographic
segmentation;market researchers explain that psychographic
tries to describe the human character of consumers which has influence on their
responses to products, packaging, advertising and public relations effort of
the company. Psychographic characteristics include; personality, lifestyle and
attitude. Psychographics help to explain why the customer buys the product.
Thus with this variable B&G can create the following market segments; men
who are masculine conscious, men who are status keepers, men who are pleasure
seekers, men who are plan people and men with sensitive skin.

Geographic
segmentation; this is among the commonly used method. It
involves the division of the market into different geographical units such as
countries, regions, cities and many more of the like. Depending on the
different tastes and preferences for products in different from customers in
different geographical locations, marketers can segment these markets and be
able to choose which market will be suitable for them.B& G launched can
assess different parts of England and be able to see the characteristics of
each segment thus be able to see which the product will be able to fit in and
thus target that market.

Behavioural
segmentation; this segmentation divides the population
basing on the usage of the product by customers, desired benefits from the
product, brand loyalty and life style. This segmentation is only possible if
you have captured some sort of user behaviour. Therefore with this method
B&G Shoprite can segment the markets into men who are loyal to the B&G
Shoprite brand, intense users of shaving products and light users of shaving
products.

QUESTION
THREE: Some possible parameters by which A Close Shave might be
positioned.

Market
positioning involves the creation of an image or identity of the company and
its products in the mind of the customers. Once B&G Shoprite has selected
its target market the company needs to position its self before it can decide
on the marketing mix of the product.

Product quality based
positioning; this strategy ensures that the product quality is being represented well
and that the quality is promised is the same as the quality delivered.
Therefore B& G can position the A Close Shave using product quality
based parameter by ensuring that the quality delivered is maintained like all
of his other products. This will influence customers with desires to get the
best results out of the products be satisfied.

Cost driven or low
pricepositioning; this parameter explores how much quality can be
provided at a rate lower than the competitors. It is aimed at consumers who need
a cheaper alternative that they can still derive maximum satisfaction from.
B&G may choose to position the A
Close Shave using this parameter by establishing a lower priced
compared to other existing shaving foams and maintaining the best quality. This
will work well with price sensitive segments.

Competitor based
positioning; this parameter is applied by making comparisons between what the brand
offers and what the competition is offering. The aim is to be the best provider
of the product or service. This parameter will influence brand switchers and
brand loyal customers in making their purchasing decisions.

High price or Value
positioning; this strategy is applied using the perceived value and quality of the
goods and services being offered. The brand should be represented as a provider
of high luxury products that are not necessarily for all members of the public.
There should be an exclusive factor to the clients. This parameter can be used
by B&G Company to influence luxury seekers.

x

Hi!
I'm Dominick!

Would you like to get a custom essay? How about receiving a customized one?

Check it out
x

Hi!
I'm Dominick!

Would you like to get a custom essay? How about receiving a customized one?

Check it out