Market Segmentation Market Segmentation

DefinitionDefinition

Market segmentationMarket segmentation is the process of is the process of grouping a grouping a marketmarket into smaller subgroups. into smaller subgroups.

These smaller sub groups is a clustering These smaller sub groups is a clustering of people with similar needsof people with similar needs

Benefits Benefits

Distinguish one group from the otherDistinguish one group from the other In-depth study of the characteristics of the In-depth study of the characteristics of the

buyer buyer Can create a fine tuned product / service Can create a fine tuned product / service

offering offering Can price the product appropriatelyCan price the product appropriately Select the best distribution & Select the best distribution &

communications channelscommunications channels Makes marketing effort more efficient & Makes marketing effort more efficient &

economicaleconomical

Methods of Market SegmentationMethods of Market Segmentation

Geographic SegmentationGeographic Segmentation

The brand can operate in 1 or more The brand can operate in 1 or more geographical areas or in all geographical areas or in all

But it pays attention to local variationBut it pays attention to local variation

Demographic SegmentationDemographic Segmentation

Most popular for distinguishing customer groupsMost popular for distinguishing customer groups As consumer wants, preferences & usage rates As consumer wants, preferences & usage rates

are often associated with this variableare often associated with this variableEG : EG : Eddie Bauer clothing retailer tested a new Eddie Bauer clothing retailer tested a new

electronic electronic posterposter window display window displayA 50 inch plasma flat screen TV was usedA 50 inch plasma flat screen TV was used

EG. Morning display: older modelsEG. Morning display: older models Evening display: younger modelsEvening display: younger models9 weeks later sales at one location had risen by 9 weeks later sales at one location had risen by 59% from the previous 9 months59% from the previous 9 months

Demographic SegmentationDemographic Segmentation

Age & life cycleAge & life cycle are tricky variables are tricky variablesAge is a poor predictor of the timings of life Age is a poor predictor of the timings of life

events, a person’s interest, status,needs,etc events, a person’s interest, status,needs,etc Eg. Ford Motors designed its Mustang to Eg. Ford Motors designed its Mustang to

appeal to young people who wanted a appeal to young people who wanted a inexpensive sports car. But Ford found out inexpensive sports car. But Ford found out that Mustang was bought by older buyers. that Mustang was bought by older buyers. It’s target market was not the chronologically It’s target market was not the chronologically young but the psychologically young buyeryoung but the psychologically young buyer

Demographic SegmentationDemographic Segmentation

GenderGender : Men & women have different : Men & women have different attitudinal & behavioral orientationattitudinal & behavioral orientation

Women tend to take in more of the data in Women tend to take in more of the data in their immediate environment & are more their immediate environment & are more emotionalemotional

Men focus on things that will help them attain Men focus on things that will help them attain a goal, more rational a goal, more rational

Demographic SegmentationDemographic Segmentation

Clothing, hairstyling, cosmetics & magazines apply Clothing, hairstyling, cosmetics & magazines apply gender differentiationgender differentiation

EG. Virginia Slims cigarettes are addressed to EG. Virginia Slims cigarettes are addressed to women. They have appropriate flavor, packaging & women. They have appropriate flavor, packaging & advertising cues to reinforce female imageadvertising cues to reinforce female image

Automobile manufacturers are designing features Automobile manufacturers are designing features to appeal to women car owners but they stop short to appeal to women car owners but they stop short of advertising it as a woman’s carof advertising it as a woman’s car

Demographic SegmentationDemographic Segmentation

IncomeIncome : Automobiles, clothing, cosmetics & : Automobiles, clothing, cosmetics & travel travel

Income does not predict the best customerIncome does not predict the best customerEconomical cars are not bought by the really Economical cars are not bought by the really

poor but by those who think of themselves as poor but by those who think of themselves as poor relative to their status aspirationspoor relative to their status aspirations

Demographic SegmentationDemographic Segmentation

GenerationGeneration: Each generation is influenced by : Each generation is influenced by the times in which it grows up – music, the times in which it grows up – music, movies, politics, etcmovies, politics, etc

Demographers call these groups Demographers call these groups cohortscohortsMembers of a cohort share the same major Members of a cohort share the same major

experiences, similar outlooks & valuesexperiences, similar outlooks & values7 groups distinguished by Meredith Schewe 7 groups distinguished by Meredith Schewe

& Karlovich -& Karlovich -

Demographic SegmentationDemographic Segmentation

1.1. The Depression CohortThe Depression Cohort – Shaped by hard times & the great – Shaped by hard times & the great depression, aged between 79-88 in 2000. This cohort lacked jobs depression, aged between 79-88 in 2000. This cohort lacked jobs when they were coming of age, financial security is one of their when they were coming of age, financial security is one of their core valuescore values

2.2. The World War 2 CohortThe World War 2 Cohort – Aged between 73-78 in 2000 & shaped – Aged between 73-78 in 2000 & shaped by the World War 2. This cohort focused on defeating a common by the World War 2. This cohort focused on defeating a common enemy, they are team oriented & patrioticenemy, they are team oriented & patriotic

3.3. The Post War Cohort – Shaped by optimism & prosperity of the The Post War Cohort – Shaped by optimism & prosperity of the post war era, aged between 55-72 in 2000. Expects stability & post war era, aged between 55-72 in 2000. Expects stability & prosperous times to continueprosperous times to continue

4.4. Leading – Edge Baby Boomer Cohort – Shaped by the assassins Leading – Edge Baby Boomer Cohort – Shaped by the assassins of Kennedy, Martin Luther King & the Vietnam war, aged between of Kennedy, Martin Luther King & the Vietnam war, aged between 46-54 in 2000. Champions causes (civil rights, women’s right) yet 46-54 in 2000. Champions causes (civil rights, women’s right) yet is hedonistic & self indulgentis hedonistic & self indulgent

Demographic SegmentationDemographic Segmentation

5.5. Trailing Edge Baby Boomer Cohort Trailing Edge Baby Boomer Cohort – Shaped by – Shaped by energy crisis, aged between 35-45 years. Less energy crisis, aged between 35-45 years. Less optimistic than the leading edge baby boomersoptimistic than the leading edge baby boomers

6.6. Generation X : Shaped by bad economic times, AIDS Generation X : Shaped by bad economic times, AIDS awareness, aged between 24-34 in 2000. Puts quality awareness, aged between 24-34 in 2000. Puts quality of personal life ahead of work life, not team players & of personal life ahead of work life, not team players & cynical about advertising cynical about advertising

7.7. Generation Y : Shaped by economic prosperity & the Generation Y : Shaped by economic prosperity & the Internet, aged 23 & under in 2000. More idealistic & less Internet, aged 23 & under in 2000. More idealistic & less cynical than Gen Xerscynical than Gen Xers

Demographic SegmentationDemographic Segmentation Schewe & Karlovich developed a framework called Schewe & Karlovich developed a framework called The The

Lifestage Analytic MatrixLifestage Analytic Matrix that combines life stages, that combines life stages, physiographic, emotional effects & socio economics to physiographic, emotional effects & socio economics to analyze a segment/individualanalyze a segment/individual

2 individuals from the same cohort may differ in :2 individuals from the same cohort may differ in : Life stages (getting married, getting divorced)Life stages (getting married, getting divorced) Physiographics (coping with hair loss, menopause)Physiographics (coping with hair loss, menopause) Emotional effects (nostalgia from the past, experiences instead Emotional effects (nostalgia from the past, experiences instead

of things)of things) Socioeconomics – (losing a job, receiving an inheritance)Socioeconomics – (losing a job, receiving an inheritance)

Use of this analysis leads to efficient targeting & Use of this analysis leads to efficient targeting & messages messages

Psychographic SegmentationPsychographic Segmentation Buyers are divided into different groups based on lifestyle / Buyers are divided into different groups based on lifestyle /

personality / valuespersonality / values Buyers from the same demographic group can exhibit different Buyers from the same demographic group can exhibit different

psychographic profilespsychographic profilesLifestyle Lifestyle : People differ in attitudes, interests & activities & these affect : People differ in attitudes, interests & activities & these affect

goods & servicesgoods & services Shaped by whether consumers are Shaped by whether consumers are time constrainedtime constrained or or money money

constrained constrained Time constrained consumers are prone to multi task – doing 2 Time constrained consumers are prone to multi task – doing 2

things at a time. Make calls while eating, pay others to perform things at a time. Make calls while eating, pay others to perform tasks because time is more important than moneytasks because time is more important than money

Companies aiming to serve this group need to create convenient Companies aiming to serve this group need to create convenient services eg. ICICI bank, Bank of Baroda -8 to 8 workingservices eg. ICICI bank, Bank of Baroda -8 to 8 working

Psychographic SegmentationPsychographic Segmentation Companies aiming to serve money constrained individuals Companies aiming to serve money constrained individuals

need to create lower cost products & services eg. Maruti 800 need to create lower cost products & services eg. Maruti 800 & Alto entry level cars, Tata Motors planning to make a car & Alto entry level cars, Tata Motors planning to make a car in Rs 1 Lakhin Rs 1 Lakh

Cosmetics, alcoholic beverages & furniture segment on Cosmetics, alcoholic beverages & furniture segment on lifestylelifestyle

Personality Personality : Marketers endow their products with a brand : Marketers endow their products with a brand personality that corresponds to a target consumer personality personality that corresponds to a target consumer personality

Exciting – NikeExciting – Nike Beauty – LuxBeauty – Lux Freshness – LirilFreshness – Liril Rugged, rebellious, youthful – Levi’sRugged, rebellious, youthful – Levi’s Product features, services & image reflect the product’s Product features, services & image reflect the product’s

personalitypersonality

Psychographic SegmentationPsychographic Segmentation Companies aiming to serve money constrained individuals need Companies aiming to serve money constrained individuals need

to create lower cost products & services eg. Maruti 800 & Alto to create lower cost products & services eg. Maruti 800 & Alto entry level cars, Tata Motors planning to make a car in Rs 1 entry level cars, Tata Motors planning to make a car in Rs 1 LakhLakh

Cosmetics, alcoholic beverages & furniture segment on lifestyleCosmetics, alcoholic beverages & furniture segment on lifestylePersonality Personality : Marketers endow their products with a brand : Marketers endow their products with a brand

personality that corresponds to a target consumer personality personality that corresponds to a target consumer personality Exciting – NikeExciting – Nike Beauty – LuxBeauty – Lux Freshness – LirilFreshness – Liril Rugged, rebellious, youthful – Levi’sRugged, rebellious, youthful – Levi’s Product features, services & image reflect the product’s Product features, services & image reflect the product’s

personalitypersonality

Psychographic SegmentationPsychographic SegmentationValuesValues : Segment by core values, the belief systems that underlie : Segment by core values, the belief systems that underlie

consumer attitudes & behaviorconsumer attitudes & behavior 6 global value segments though they differ in degree country 6 global value segments though they differ in degree country

wisewise Strivers : More likely to be men than women, place high emphasis on Strivers : More likely to be men than women, place high emphasis on

material & professional goals . 1 in 3 people in Asia is a Strivermaterial & professional goals . 1 in 3 people in Asia is a Striver Devout : More women than men, tradition & duty are very important to Devout : More women than men, tradition & duty are very important to

them.them. Altruists: Interested in social issues & welfare of the society. More Altruists: Interested in social issues & welfare of the society. More

women than men with an average age of 44 yearswomen than men with an average age of 44 years Intimates :Value close personal relationships & family above all.Both Intimates :Value close personal relationships & family above all.Both

men & womenmen & women Fun seekers : Young group with a male female ratio of 54 to 46Fun seekers : Young group with a male female ratio of 54 to 46 Creative : Strong interest in education, knowledge & technology Creative : Strong interest in education, knowledge & technology

Techniques Techniques Popularly known as “The Value & Lifestyle Segmentation”Popularly known as “The Value & Lifestyle Segmentation” Used widely in IndiaUsed widely in India It helps to :It helps to : Identify whom to target and find niche markets much more easily.Identify whom to target and find niche markets much more easily. Locate where concentrations of your target group lives.Locate where concentrations of your target group lives. Gain insight into why the target group acts the way it does.Gain insight into why the target group acts the way it does. Improve and introduce products that speak to customers' values.Improve and introduce products that speak to customers' values. Target marketing and advertising campaigns much more Target marketing and advertising campaigns much more

effectively and much more accurately.effectively and much more accurately. Position products much more accurately in the marketplace.Position products much more accurately in the marketplace.

VALS – The Indian ContextVALS – The Indian Context The Self-Driven MaterialistsThe Self-Driven Materialists : People who are : People who are ambitiousambitious and and

practical. practical. Striving to achieve success in terms of Striving to achieve success in terms of materialisticmaterialistic possessions as possessions as

well as well as social recognitionsocial recognition. Money is more important to them than job . Money is more important to them than job satisfaction and success to them is defined in terms of moneysatisfaction and success to them is defined in terms of money

They think logically and They think logically and rationalizerationalize every action in the light of the every action in the light of the manner that they are benefited from it. manner that they are benefited from it.

They like to spend Sundays with their family and a movie with the They like to spend Sundays with their family and a movie with the family is their idea of entertainment. They watch Hindi movies and like family is their idea of entertainment. They watch Hindi movies and like to listen to Hindi pop. to listen to Hindi pop.

These are the people who would be receptive to advertisements aired These are the people who would be receptive to advertisements aired during commercial breaks of Hindi movies, before and after Hindi during commercial breaks of Hindi movies, before and after Hindi movie related programs and even commercials appearing in Hindi movie related programs and even commercials appearing in Hindi movies. Newspapers do not influence their behavior. movies. Newspapers do not influence their behavior.

They idolize people in higher social circles and are constantly trying to They idolize people in higher social circles and are constantly trying to emulate them, hence celebrity endorsements of products appeal to emulate them, hence celebrity endorsements of products appeal to them. As consumer they are them. As consumer they are reluctant to be extravagantreluctant to be extravagant and do not and do not indulge themselves..indulge themselves..

VALS – The Indian ContextVALS – The Indian Context The Independent ExplorerThe Independent Explorer : Fiercely : Fiercely independentindependent people, broadminded, people, broadminded,

loyalistsloyalists,, not excessively ambitious, and not excessively ambitious, and unorthodox unorthodox in their behavior. in their behavior. Not materialistic in their approach to life they equate success with job Not materialistic in their approach to life they equate success with job

satisfaction. satisfaction. Their general approach to life is slightly casual and relaxed.. Generally Their general approach to life is slightly casual and relaxed.. Generally

nonnon--conformistsconformists they constantly try to form their own opinions on issues. they constantly try to form their own opinions on issues. This trait is manifested in their buying behavior. Family and friends do not This trait is manifested in their buying behavior. Family and friends do not

influence the choice of brands they purchase and celebrity endorsements influence the choice of brands they purchase and celebrity endorsements too do not make an impact on them. They prefer newspapers to television too do not make an impact on them. They prefer newspapers to television as sources of information. They are more likely to watch television as sources of information. They are more likely to watch television channels like Star World and Star Movies.channels like Star World and Star Movies.

They They are receptive to new ideasare receptive to new ideas and do not mind experimenting or trying and do not mind experimenting or trying out a new thing. They believe that branded products offer more benefits out a new thing. They believe that branded products offer more benefits than unbranded products. They prefer stability but also crave for some than unbranded products. They prefer stability but also crave for some amount of excitement. They have courage of conviction, are amount of excitement. They have courage of conviction, are socially socially responsibleresponsible, environmentally conscious and have a forgiving nature. , environmentally conscious and have a forgiving nature. They are They are expressiveexpressive. . ProgressiveProgressive people in tune with the times, these people in tune with the times, these consumers are not averse to embracing the western culture.consumers are not averse to embracing the western culture.

VALS – The Indian ContextVALS – The Indian Context The Passive TraditionalistsThe Passive Traditionalists :Epitomize tradition and :Epitomize tradition and

conservatismconservatism Indian values as well as belief in the Indian Indian values as well as belief in the Indian system is strongly embedded in these people.system is strongly embedded in these people.

They prefer job security to progress in career or job They prefer job security to progress in career or job satisfaction and are satisfaction and are averse to riskaverse to risk.. They are They are complacentcomplacent and and do not make an effort to change the way things are at present. do not make an effort to change the way things are at present.

These people prefer to These people prefer to work in groupswork in groups and do not like to take and do not like to take responsibility. Not adaptive of new technology, people of this responsibility. Not adaptive of new technology, people of this group are group are suspicious suspicious of new products. of new products.

They are They are family orientedfamily oriented and most of their leisure activities and most of their leisure activities are centered on the home. These people do not generally form are centered on the home. These people do not generally form any strong opinions themselves and prefer to go with the flow. any strong opinions themselves and prefer to go with the flow. Newspapers influence their opinions and they believe more Newspapers influence their opinions and they believe more in in regional language regional language newspapers and entertainment in regional newspapers and entertainment in regional languages appeals to them. As a consumer they prefer to buy languages appeals to them. As a consumer they prefer to buy brands that their families bought and are not open to brands that their families bought and are not open to purchasing any purchasing any foreign brands ( nationalistsforeign brands ( nationalists)). .

Not experimentative, they generally plan their purchases and Not experimentative, they generally plan their purchases and do not indulge in impulse buying.do not indulge in impulse buying.

VALS – The Indian ContextVALS – The Indian Context The Enthusiastic ExperimentersThe Enthusiastic Experimenters : Individuals belonging to this : Individuals belonging to this

group are group are enthusiasticenthusiastic in nature. in nature. These people are ardent followers of These people are ardent followers of fashion, trends and fad (in fashion, trends and fad (in

voguevogue)).. They are the consumers who are ever ready to try out They are the consumers who are ever ready to try out new new brands and productsbrands and products. (. (experimentative)experimentative)

These are the kind of people who would shop in supermarkets or These are the kind of people who would shop in supermarkets or make their purchases via teleshopping/E-commerce. They are more make their purchases via teleshopping/E-commerce. They are more likely to be seen at a McDonalds or a Pizza Hut rather than at a likely to be seen at a McDonalds or a Pizza Hut rather than at a roadside pav-bhaaji stall.roadside pav-bhaaji stall.

Impulsive peopleImpulsive people, they like to indulge themselves through excessive , they like to indulge themselves through excessive buying-purchases usually comprising of designer brand names. buying-purchases usually comprising of designer brand names. Being financially better off, their needs are mainly for Being financially better off, their needs are mainly for social social recognitionrecognition as well as social acceptance. as well as social acceptance.

They try to satisfy these needs through membership of exclusive They try to satisfy these needs through membership of exclusive clubs. clubs. IImage mage therefore is important to them not as an expression of therefore is important to them not as an expression of power or in materialistic terms, but as an expression of taste and power or in materialistic terms, but as an expression of taste and sophisticationsophistication. .

They are focused on meeting their needs and it is these ends that They are focused on meeting their needs and it is these ends that matter more than the means to arrive there.matter more than the means to arrive there.

VALS – The Indian ContextVALS – The Indian Context

The Opinionated Realists :The Opinionated Realists : These people are These people are self-centeredself-centered and and consider no one else but themselves. consider no one else but themselves.

They are They are loners,loners, very uncomfortable in groups. very uncomfortable in groups. (indifferent(indifferent)) They are broadminded only when it concerns issues, which don’t They are broadminded only when it concerns issues, which don’t

have an immediate effect on their lives as individuals. have an immediate effect on their lives as individuals. They believe in fending for themselves and are They believe in fending for themselves and are stubbornstubborn regarding regarding

certain issues.certain issues. They feel that newspapers are more credible than Television and go They feel that newspapers are more credible than Television and go

through advertisements in newspapers consciously. through advertisements in newspapers consciously. They watch television without any particular preference. For these They watch television without any particular preference. For these

people, commercials during programs are a welcome break. people, commercials during programs are a welcome break. (not (not experimentative) experimentative) They are not quick to accept new media/ product/ They are not quick to accept new media/ product/ ideas. They do not experiment much but believe that branded ideas. They do not experiment much but believe that branded products do offer better products do offer better quality quality than unbranded ones. Education is than unbranded ones. Education is of low priority. of low priority.

They believe more in They believe more in hard workhard work to achieve their goals. to achieve their goals.

VALS – The Indian ContextVALS – The Indian Context

The Mature SensiblesThe Mature Sensibles : : This group believes in This group believes in traditionatraditional values l values and systems like joint families and are religious though they do not and systems like joint families and are religious though they do not follow rites and rituals regularly. follow rites and rituals regularly.

They are polite well-mannered people who prefer a They are polite well-mannered people who prefer a formal formal work work environment. environment. They have a high degree of respect for institutions of They have a high degree of respect for institutions of authority authority and and social decorum. social decorum.

They stick to their They stick to their moralsmorals and principles like equality and honesty. and principles like equality and honesty. They are not fast to accept new ideas and look for the finer things in They are not fast to accept new ideas and look for the finer things in life like a 'world of beauty'.life like a 'world of beauty'.

As consumers they are not easily influenced and as a result are not As consumers they are not easily influenced and as a result are not reciprocative to discounts and sales. reciprocative to discounts and sales.

They are very They are very cautiouscautious and logical in their approach. They are not and logical in their approach. They are not biased towards products that are branded, insist on biased towards products that are branded, insist on value for value for moneymoney, and yet are quality conscious. , and yet are quality conscious.

They appreciate the value of education. Commercials generally do They appreciate the value of education. Commercials generally do not appeal to them. Radio is still of relevance to them not appeal to them. Radio is still of relevance to them

Behavioral SegmentationBehavioral Segmentation Based on knowledge of, attitude towards, use of, response to Based on knowledge of, attitude towards, use of, response to

productproduct Rated to be the best starting points for market segmentationRated to be the best starting points for market segmentationOccasions :Buyers can be differentiated according to the occasion

when they need, use, purchase a product Occasions can be used to expand the market

Eg. Cadbury chocolates attempting to replace traditional mithai on auspicious days

Benefits : Classified according to the benefit they seek People vary in seeking the benefits from the same product

Mobil found out that car drivers stopping for gas seek different benefitsMobil found out that car drivers stopping for gas seek different benefits

Behavioral SegmentationBehavioral Segmentation Mobil identified 5 different benefit segments :Mobil identified 5 different benefit segments :

Road Warriors – Premium products & quality service (16%)Road Warriors – Premium products & quality service (16%) Generation F – Fast fuel, fast service & fast food (27%)Generation F – Fast fuel, fast service & fast food (27%) True Blues – Branded products & reliable services (16%)True Blues – Branded products & reliable services (16%) Home Bodies – Convenience (21%)Home Bodies – Convenience (21%) Price Shoppers –Low price (20%)Price Shoppers –Low price (20%)

Though gasoline is a commodity product, price shoppers were Though gasoline is a commodity product, price shoppers were only 20%.only 20%.

Mobil decided to roll out Friendly Serve : Cleaner property, Mobil decided to roll out Friendly Serve : Cleaner property, bathrooms, better lighting, well stocked stores & friendly bathrooms, better lighting, well stocked stores & friendly personnel'spersonnel's

Mobil charged 2 cents more per gallon than its competitors but its Mobil charged 2 cents more per gallon than its competitors but its sales increased by 20-25%sales increased by 20-25%

Behavioral SegmentationBehavioral SegmentationUser StatusUser Status : segmented into non users, ex-users, potential, first time : segmented into non users, ex-users, potential, first time

users & regular users.users & regular users. Leading brands focus on attracting potential usersLeading brands focus on attracting potential users Smaller brands focus on attracting current users away from the Smaller brands focus on attracting current users away from the

leading brandleading brand Potential users are customers who will become users at some life Potential users are customers who will become users at some life

stage/life eventstage/life event Usage rate : Light, medium & heavy product usersUsage rate : Light, medium & heavy product users Heavy users are a small percentage of the market but account for Heavy users are a small percentage of the market but account for

high percentage of total consumptionhigh percentage of total consumption Eg. Heavy beer drinkers account for 87% of the beer consumed Eg. Heavy beer drinkers account for 87% of the beer consumed

almost 7 times as much as a light beer drinkeralmost 7 times as much as a light beer drinker Marketers would rather attract 1 heavy user than several light Marketers would rather attract 1 heavy user than several light

users users Heavy users are either loyal to one brand or keep changing for low Heavy users are either loyal to one brand or keep changing for low

priceprice

Behavioral SegmentationBehavioral SegmentationLoyalty Status : Varying degrees of loyalty exist

Hard core loyals : Consumers who buy one brand all the time

Split loyals : Loyal to 2 or 3 brands Shifting loyals : Shift easily from one brand to another Switchers : No loyalty to any brands Buyer Readiness : A market is made up of different

stages of readiness Some are unaware, some are informed, some

interested, etc

Targeting Multiple SegmentsTargeting Multiple Segments

Motorola : In 1999, based on a 25 nation Motorola : In 1999, based on a 25 nation research it created 4 sub brands for its mobile research it created 4 sub brands for its mobile phones phones Accompli – For customers seeking leading edge Accompli – For customers seeking leading edge

wireless technology. Large touch screen, office wireless technology. Large touch screen, office assistant & software enabledassistant & software enabled

Timeport – Java based phone with internet browsing Timeport – Java based phone with internet browsing software & desktop organizer. Focused on the software & desktop organizer. Focused on the business userbusiness user

V – Targets status seeking phone users with the V – Targets status seeking phone users with the latest styles as well as high end technologylatest styles as well as high end technology

Talkabout – Standard phones at good valueTalkabout – Standard phones at good value

Targeting SegmentsTargeting Segments

Levi’s : Measure-to-fit women’s jeans under Levi’s : Measure-to-fit women’s jeans under Personal Pair brandPersonal Pair brand

In-store customization concept called In-store customization concept called Original Spin which offers more options & Original Spin which offers more options & features features

DeBeers : Design “your own engagement DeBeers : Design “your own engagement ring program”ring program”

Choose from within 189 unique designs Choose from within 189 unique designs

Flexible Market Offering Flexible Market Offering

Flexible marketing offering rather than a Flexible marketing offering rather than a standard offering to the segmentstandard offering to the segment

2 parts :2 parts : Naked Solution – All segment members appreciateNaked Solution – All segment members appreciate Discretionary Option – Only some segment members Discretionary Option – Only some segment members

valuevalue

Eg. Delta Airlines offers Economy passengers a Eg. Delta Airlines offers Economy passengers a seat, food & soft drink. Alcoholic beverages & seat, food & soft drink. Alcoholic beverages & ear phones are charged extraear phones are charged extra