SEGMENTATION, TARGETING AND POSITIONING (STP MARKETING)

                        

Segmentation:

            Segmentation is the division of the market into various homogenous groups with similar needs and wants. The market can be segmented based on

• Geographical factors.
• Demographic factors.
• Psychographic factors
• Behavioral factors.

 Geographic Factors:

Region	South, East, North, West.
City	Tier  1 and Tier 2 cities with population more than 1 million.
Rural and Semi- Urban areas	Rural and semi Urban area where population less than (20,000-50,000).

Demographic Factors:.

Age	5-35 years
Family Size	Young Married with no children, Married with children,
Gender	Male, female.
Income	Lower Middle, class (40,000-80,000 P.a) Middle class (80,000-1,00,000 p.a), Upper Middle Class(1,20,000- 3,00,000). Affluent Class(above 3,00,000)
Ocupation	Workers, small scale business owners, Industrialists, Professionals,
Education.	School/ College  Students , Graduate/Nongraduate or post graduate.

           

Psychographic Factors:

Lifestyle	Cult ure Oriented, Sports Oriented, Outdoor Oriented,
Personality	Compulsive, Gregarious ,  Specific towards taste.

Behavioural Factors:

Occassions	Regular , Special, Snack time
Benefits	Quality, service( availability)
User Status	Non user, Repeated User, 1st time user, Loyal Users.
Usage rate	Heavy
Loyality Status	Strong
Attitude towards buying	Positive attitude

Targeting:

            Targeting is the next step carried out by the organization after the segmentation process are being carried out. The organisation now focuses on the what customers to target in order to sell their product.

 The various criteria that must is necessary for the market segmentation to take place are:

•   It must be scable enough to measure.
•   It must be large enough to earn profit.
•   It musbe stable.
•   It must reach potential customers, via the organisation promotion and distribution   channel.
•   It is internally homogenous.

            Lay’s  targets a majority people among the whole population. Their targeted customers mainly include the working class who are very busy and always wanted to have a tasty snack on the go. A large number of  young teenagers  from schools, colleges are also a part of lays target customers. Teenagers tend to enjoy tasty snacks which are easily affordable.

            Baked lay’s chips are targeted towards old age people who are either health conscious and /or weight conscious who are willing to have a tasty snack but are restricted towards it because of health problems.

           

 Positioning:

            Positioning refers to where the product has been placed in the market compared to others which provide similar products or services in the market place as well as in the mids of the customer.

             A good positioning makes a product unique and makes the users consider using it as a distinct benefit to them. A good position gives the product a USP (Unique selling proposition). A good position in the market also allows a product and its company to ride out bad times more easily. A good position is also one which allows flexibility to the brand or product in extensions, changes, distribution and advertising.

            Lays despite of its competitors in the market  has the maximum market share in the chips category. It provides seasonal and limited flavours which is available in almost all the shops in the rural and the urban areas.