Essay Example on STP analysis segmentation targeting Positioning









Introduction As the indian market surveys show and recent tradition of and behavior of the people that barely 20 of adult Indians own a watch and about 90 of them own a single watch So as to sustain and strive in this scenario a company has to market itself well Among those marketing strategy applied by the companies STP analysis segmentation targeting positioning Here STP analysis is done for a company which has got the highest market share in the watch market of India and it is TITAN As the world's sixth largest manufacturer brand of watches the company's products attract the classes and masses both Growth Rate Titan is maintaining a growth rate of 30 35 Future Plans Titan is planning to roll out its own Swiss made premium watches brand Xylys by August 2007 in order to lure the watch market Xylys would be competing with premium international brands including Tissot and Rado Titan is aiming to be a 1 billion company by 2010 Rs 4 700 crore hence acquiring a three fold growth As indian market and the environment of the recent market condition comprises of different consumers possessing innumerable tastes habits and preferences It's totally depending on their marketing approach and the nature of the products marketers can adopt different levels of segmentation The levels of market segmentation are Segment Marketing Individual Marketing Niche Marketing Local Marketing 

A SEGMENT MARKETING Main focus of Marketers target more than one segment when it is not economically feasible to design products and services for individual segments The focus of segmenting the market will be on providing enhanced service to the customer by offering customized we have to make sure that products that will satisfy the needs and wants of customer in that particular segment to a large extent Segmentation is also sometimes identifying capturing and retaining potential new markets TITAN PERSPECTIVE Titan has segmented its business into three main categories Mass Mid premium luxury A INDIVIDUAL MARKETING Individual Marketing is the extreme level of segmentation in which marketers focus on individual customers TITAN PERSPECTIVE Titan has not applied this for its marketing B NICHE MARKETING A niche is more narrowly defined group typically a small market whose needs are not well served Marketers usually identify niches by dividing a segment into sub segments or defining a group seeking a distinctive mix of benefits 

TITAN PERSPECTIVE In a study conducted to study the customers of watch market it is revealed that 42 of them are youth So TITAN tried to target this by introducing FAST TRACK price offering from Rs 500 affordable watches with style statements A LOCAL MARKETING Marketing programs being tailored to the needs and wants of local customer groups The prominence of local marketing has also become very dominant TITAN PERSPECTIVE All the products of TITAN are addressed to all the customers as a whole Localized products are not available But some products which are available in UK have some pictures of eminent personalities on their Dial like M K Gandhi Mr Jawaharlal Nehru etc so that the customers can identify the product with those dignitaries CRITERIA FOR SEGMENTING CONSUMER MARKET Markets are mostly segmented on the basis of geographic demographic and psychographic factors Geographic segmentation It calls for dividing the market into different geographic units such as nations states regions countries and cities Demographic segmentation In this the market is divided into groups on the basis of variables such as age family size life cycle gender income occupation education religion race generation nationality social class These variables are the most popular basis for distinguishing customer groups The following are some of the demographic variables used to segment the market Market size for fastrack Market worth rs 50 00000 Growth rate 15 25 

Market penetration 42 Student constituent the largest segment 30 of the total sales of tata watches Organize player control 40 of market Unorganized player rest constituent 60 of the market The size of the watch market currently is estimated to be around 40 to 45 million pieces annually The organized sector alone contributes up to 30 the other 70 is contributed by the unorganized grey sector In dollar terms the estimated annual market size is around USD 195 million despite the fact that the penetration of watches is the lowest compared globally The average growth in the size of the market is slated to be around 10 15 percent per year Segmentation It is segmented on basis of multiple proportions such as price benefits and types of watches The price of the watches is a major motive in the minds of the customer Accordingly three segments can be identified here namely low priced Less than500 medium priced Rs 500 Rs 1500 and high priced watches Above 1500 Target customer With the world second largest population India will be home to the largest domestic higher education market by 2025 and would become world youngest country in 2025 according to a study from the British Council The research shows that India will have the largest 18 to 30 year old population in 10 years 119 million PRICING The price of the models of Fastrack ranged from Rs 550 to Rs2 430 and was designed exclusively keeping in mind the Generation X of the subcontinent Titan s primary pricing objective is to kill Competition Being an Indian manufacture and in fusing the advantages of the Indian market with the dynamics of the western market the company has carved itself a place difficult to achieve by foreign players

Write and Proofread Your Essay
With Noplag Writing Assistance App

Plagiarism Checker

Spell Checker

Virtual Writing Assistant

Grammar Checker

Citation Assistance

Smart Online Editor

Start Writing Now

Start Writing like a PRO