Presentation on market segmentation in foreign markets [autosaved]

p
Presented by: Neha Sharma
Presentation on Market
SegmentationIn Foreign
Markets

I. The related concepts of market segmentation , target
marketing .
II. The process of market segmentation , including its
benefits and conditions for use.
III. Bases for segmenting consumer and business
markets.
IV. The most frequently used methods of forecasting the
demand of market segments.
V. List of top Indian companies operating at global level
with market segmentation
VI. manufacturing industry of CHINA, Segmentation in
INDIA.
VII. Segmentation Of Nestle IN BANGLADESH.
VIII. Impact of different industries of foreign countries ,
on India's domestic market..
IX. Suggestions….

 Market segmentation is the process of
disaggregating the market into number of
distinctive subset of buyers each with
relatively homogeneous characteristics .

i. To reduce risk in declining where, when, how and
to whom a product ,service or brand will be
marketed.
ii. To increase marketing efficiency by directing effort
specifically toward the designated segment in a
manner consistent with that segment’s
characteristics.
iii. Market Segmentation helps the marketers to
devise appropriate marketing strategies and
promotional schemes according to the tastes of
the individuals of a particular market segment.
iv. To make marketing effort more efficient and
economic. And to identify less satisfied segment.

 It is the process of dividing the world market
into distinct subsets of customers that
behave in the same way or have similar needs
,or,
 it is the process of identifying specific
segments-wheather they be country groups
or individual consumer groups-of potential
customers –of potential customers with
homogeneous attributes who are likely to
exhibit similar buying behaviour.

 By tailoring marketing programmers to individual market
segments, any company can do a better marketing job and
make more efficient use of its marketing resources. focus
is specially important for small firm with limited
resources. Such a firm might compete very effectively in
one or two small market segments; however; it would
likely be overwhelmed by the competition it it aimed for a
major segment.
For example: the Hain celestial group, inc, is focusing on
various segments of the U.S and international markets for
organic and natural foods. Under one of its brands
,celestial seasonings , the firm markets specialty teas.
After water, tea is the most heavily consumed drink in the
world and Hain cekestial is developing new market and
distribution strategies to support new tea flavors for many
different market segments

 Is the process of evaluating the segments and
focusing marketing efforts on a country ,
region or a group of people that has
significant potential to respond .

 Segmentation basis
 Customer location
region
locations
 Customer type
Industry
Size
Organization structure
Purchase criteria
 Transaction conditions
Buying situation
Usage rate
Purchasing procedure
Order size
Service requirements
 Possible market segments
 South Asia, central America,
Atlantic seaboard
Single buying site, multiple buying
sites
 Selected NAICS codes
Sales volume, number of
employees Centralized or
decentralized, group or individual
decision
Quality, price, lead time
 Straight rebury, new buy
,modified buy
Nonuser, light user, heavy user
Competitive bidding ,lease
Small, medium, large
Light , moderate, heavy

 Markets are sometimes segmented intuitively ; that is marketer relies on
experience and judgment to make a decision about the segments that
exist in a market and how much potential each offers. Others follow the
lead of competitors or earlier market entrants .
 for example, Gatorade was invented by university of Florida scientists to
rapidly replenish the body fluids of the school’s football players. when it
was later introduced as a consumer product, it met the needs of a group
of beverage consumers that became known as the “ sports drink”
segment. As gatorade’s popularity grew, imitators such as powerade
from coca-cola and all sport from Pepsi was introduced. Each has taken
a small share of the market, but they did not unseat gatorade as the
brand with the largest share. And the future may get even rougher for
these imitators now that gatorade has been acquired by pepsi, and will
benefit from even broader distribution.
 Another alternative is to perform structured analysis ,usually supported
by some market research , in order to identify segments and measure
their potential .this approach even if done with a small budget ,often
produces insights and opportunities that would be overlooked
otherwise.

 Undifferentiated marketing
 Differentiated marketing
 Concentrated marketing
 Undifferentiated Marketing: Undifferentiated marketing is a strategy in
which market segments differences are ignored and one product or
service is offered to the entire market.
 Differentiated Marketing: Differentiated marketing is a type of
marketing strategy where a firm offers products or services to a number
of market segments and develops separate marketing strategies for
each.
 Example: As an example, the alcohol beverage brewer, Anheuser Busch,
makes the Bud Light brand of beers. As seen with the three
advertisements below, the company segments their marketing efforts
across several markets. In this example, we see advertisement
segmented for the following markets: same-sex couples, Hispanics, and
African American’s.
 Each market segment would need a separate market strategy.

 Concentrated Marketing : Concentrated
marketing is a type of marketing strategy
where a firm chooses to focus its marketing
efforts on one particular market segment.

strategy Description example
Undifferentiated Sending the same
promotional message to
everyone
Promoting the city as a
historic destination by
placing ads in widely
read newspapers
differentiated Designing a promotional
message that
communicates the
benefits desired by a
single specific segment
Promoting the city as
historic by targeting
elderly members of
historical societies by
placing ads in their
newsletters
concentrated Designing more than one
promotional message,
with each communicating
different benefits
Also targeting families by
communicating a
promotional message
about the importance of
children learning history

 The marketer carefully examines the market to determine
the specific needs being satisfied by current offerings, the
needs current offerings fail to adequately satisfy, and the
needs that may not yet be recognized. This step may
involve interviewing and/or observing consumers or firms
to determine their behaviour, levels of satisfaction and
frustrations.
 SECOND STEP: In this step the focus is on what prospectus,
who share a particular want have in common to distinguish
them from other segments in the market that have
different wants. from the result of this step , potential
marketing mixes ( including product ideas) for the various
segments can be designed. These alternatives can be
further analyzed.
 THIRD STEP : The final step is to estimate the potential
sales of each segment, the urgency of the need , and the
strength of the competition

 Forecasting is essential in evaluating possible target segments. it involves
estimating the demand of the market. Management usually estimates the total
sales that could be expected under ideal conditions for all firms comprising the
industry-market potential –and for its particular product-sales potential.
 Basic Forecasting Terms:
A. Market Share:
I. a term used frequently in business as a performance measure, market share
is the proportion of total sales of a product during a stated period in a specific
market that is captured by a single firm.
I. The base for calculating market share can refer to entire industries , segments
of industries can also apply to past, present or future periods.
I. Example: the steel industry has 95% market share for canned – food
containers ,is working to prevent a recurrence of the inroads in food
packaging made by the aluminium makers in the market for beverage cans,.
So awareness of the base and time period used in computing market share is
essential to correctly interpreting the statistic.

 Market Factor:
a) A market factor is something that : (1) exists in a market.
(2) is a measurable .(3) is related to the demand for a
product in a known way.
a) Example at global level : In segmenting world markets
geographically ; McDonald’s at one time used population ;
per capita income and the number of people per store in
the U.S as market factors to obtain a rough forecast of the
no of stores a country could support.
a) Example at the domestic level: no of cars three years older
is a market factor for the demand of replacement tires. it
is a market factor because the no of replacement tires
that can be sold changes as the no of older cars changes.

 Market potential:
is the total sales volume that all the
organizations selling a product during a
stated period of time in a specific market
could expect to achieve under ideal
conditions.
 Sales potential:
is the portion of market potential that a
specific company could expect to achieve
under ideal conditions .

 The final step in estimating demand is a sales
forecast ,indicating probable sales or the
company’s brand of a particular product in future
time period and with a specified marketing
program. The forecasting normally covers one
year.
 Survey of buyer intentions
 Sales-force composite
 Past sales and trend analysis
 Test marketing
 Executive judgment
 Market factor analysis

 Tata Group ( $ 15.37 billion brand value)
 Bharti Airtal ( $ 4.92 billion)
 State Bank Of India ($ 6.5 billion)
 Life Insurance Corporation ( 4.52 Billion brand
value)
 Reliance Industries Limited ( 3.66 billion)
 Indian Oil Corporation ($ 28.3 billion)
 Infosys(3.41 billion)
 Larsen & Toubro($ 3.23 billion)
 HCL($3.14 Billion )
 ONGC ( $ 2.89 billion)

COMPANY NAME REVENUE( in US D
million)
RANKING(2015) PREVIOUS YEAR
RANKING
TATA STEEL 27,739 401 370
ONGC 30,746 357 361
TATA MOTORS 34,575 314 359
STATE BANK OF
INDIA
36,950 285 292
HINDUSTAN
PETROLEUM
38,885 267 336
BHARAT
PETROLEUM
44,582 225 272
RELIANCE
INDUSTRIES
76,119 99 134
INDIAN OIL 86,016 83 98

 7 Indian companies are:
Indian Oil Corporation (161st), Reliance Industries (215th), Tata
Motors (226th), State Bank of India (232nd), Bharat Petroleum
(358th), Hindustan Petroleum (367th) and Rajesh Exports (423rd).
 Global top 10 companies:
Wal-Mart (1st), State Grid (2nd), China National Petroleum (3rd),
Sinopec Group (4th), Royal Dutch Shell (5th), Exxon Mobil (6th),
Volkswagen (7th), Toyota Motor (8th), Apple (9th) and BP (10th).
 The world’s 500 largest companies generated collectively generated
27.6 trillion dollars in revenues and 1.5 trillion dollars in profits in
2015.
 Together, 2016 Fortune Global 500 companies employ 67 million
people worldwide and are represented by 33 countries.

 China’s president “Xi Jinping”
 The most significant strength of IT in China
is its full support from Chinese government.
 china maintains a number of preferential policies for high-tech
investments, including tax holidays and refunds.
 China's population is above 1.2 billion and it is estimated that it will
grow at a rate of 17 million annually. The potential customer base
means huge demand. To keep up with this momentum and customer
demands, the IT industry will be treated as a priority sector by the
government with preferential policy and heavy investment.

 China major exports are to India :
 Export growth has been a major component supporting China's rapid economic expansion. In
the last 2 years, the exports declined due to weaker global demand but China's proportion of
global exports rose to 13.8 percent in 2015 from 12.3 percent in 2014.
 Exports from China declined by 4.4 percent year-on-year to USD 184.73 billion in July of 2016,
following a 4.8 percent drop in the preceding month and market consensus of a 3.0 percent
drop. Exports in China is reported by the General Administration of Customs.
 Mechanical and electrical products (41 percent of total exports), high tech products (20
percent),
 Labor-intensive industries like: clothing, textiles, footwear, furniture, plastic products and
ceramic (16 percent), motors and generators (5 percent) and integrated circuits (5 percent).
 China’s main export partners are the United States (18 percent of total exports), Hong Kong
(15 percent), the European Union (16 percent, of which Germany, the UK and the Netherlands
account for 3 percent each), ASEAN countries (12 percent, of which Vietnam accounts for 3
percent), Japan (6 percent), South Korea (4 percent) and India (3 percent).

 China’s imports from India :
 Indian Exports to China is an integral part of the bilateral trade relations between
the two Asian countries, India and china. Indian Exports to China focus on mainly
primary products.
 In 1984, India and China signed a trade agreement, providing for Most Favored
Nation treatment, to foster greater cooperation between each other.
 Moreover, the year 2006 was celebrated as Friendship Year between India and
China.
 The principal items of Indian exports to China comprise of ores, slag and ash,
iron and steel, plastics, organic chemicals, and cotton . At present, iron ore
constitutes about 53% of the total Indian exports to China. The other items that
have potentials are marine products, oil seeds, salt, inorganic chemicals, plastic,
rubber, optical and medical equipment, and dairy products.

great potential exists in areas like biotechnology, IT and ITES, health, education,
tourism, and the financial sector - all of which will contribute to the services and
knowledge based sectors.

 China has experienced spectacular economic growth, quadrupling its GDP to become the second largest
economy in the world based on its purchasing power parity (CIA Fact book, 2005). Much of this growth is driven
by manufacturing.
 China is the most competitive manufacturing Nation Index studies, China is again ranked as the most
competitive manufacturing nation in 2016, but is expected to slip to second position
 China has become the manufacturing centre of the world. Exports of manufactured goods have risen at a rate of
15 percent per year to about $730 billion.
 China now makes 50 percent of the world's telephones, 17 percent of refrigerators, 41 percent of video
monitors, 23 percent of washing machines, 30 percent of air conditioners, and 30 percent of colour.
 The Chinese electronics industry has become the leading export industry in China, and has a significant
presence globally across a wide spectrum of electronics products, from household electrical appliances to
semiconductors. Today China makes $60 billion worth of consumer electronics goods a year.
 China is also fast becoming an important source of automotive electronics for the global market. According to
figures by Chinese supplier Asimco Technologies, in 2005, China exported $1.49 billion worth of automotive
electronics and electrical instruments.
 The combination of preferential government policies, foreign direct investment, great infrastructure, and human
capital has contributed to the success in Chinese electronics and automotive component manufacturing.

 India’s manufacturing sector has lagged behind those of China,
Thailand, Malaysia, and Mexico. The main reasons multinational
companies have not invested in India results from the lack of
infrastructure including electricity, roads, and sea and air ports as
well as government regulation and corruption.
 Despite these obstacles to growth, electrical and electronic
components manufacturers ABB, Honeywell, and Siemens and
automotive manufacturers DaimlerChrysler and Toyota Motor have
started operations in India.
 India needs to continue to take steps to improve its infrastructure
and government regulation in order to increase FDI flows. A further
examination of the electronic components and automotive
manufacturing sectors will provide insight on what factors are
spurring growth in these sectors and what government regulations
need to be leveraged to increase growth.

 Lenovo Group Ltd. /lɛnˈoʊvoʊ/ is a Chinese multinational technology
company with headquarters in Beijing, China, and Morrisville, North
Carolina, United States.
 CEO: Yang Yuanqing (Feb 5, 2009–)
 Stock price: 0992 (HKG) HK$ 5.47 +0.07 (+1.30%)
15 Aug, 4:09 PM GMT+8 - Disclaimer
 Headquarters: Morrisville, North Carolina, United States
 Founder: Liu Chuanzhi
 Founded: 1984, Beijing, China

 Competitors : apple, sony, samsung, microsoft corporation, Dell Inc, hawlett-packard company, and many
other companies.
 Mission statement:
 is to become one of the world’s great personal technology companies .we aspire to achieve this objective
by leading in three key areas:
 Personal Computers:
Lead in PCs and be respected for our product innovation and quality…..
 Convergence :
Lead the industry with an ecosystem of devices , services applications and content for people to seamlessly
connect to people and web content!...........
 Culture:
become recognized as one of the best most trusted and most well respected companies to work for and
do business with!.........
 The products of Lenovo are known to be dependable and reliable. As we are focusing on the
Lenovo laptops the range it includes or the laptops it offers are as follow:

 vision : is that Lenovo will create personal devices more people are inspired to
own a culture more people aspire to join and an enduring trusted business that is
well respected around the world! this vision guides us in pursuit of our mission
to become one of the world’s greatest personal technology companies…..

 The Lenovo also focused on the customers with new concepts and high level educations.
There are four market segmentation have been used in the market for the computer industry
to push the product to the people.
Demographic segmentation:
• Purchasing habit of women can’t be overlooked in
PC’s market, because most women buyers the
stylish appearance and lightweight portable design
rather than the computer performance.
GENDER
•Tweens and teens usually use their computer for study and
online game, while Generation X use their computer for
work and social contact. The Idea Pad design marked a
deviation from the business-oriented ThinkPad laptops,
towards a more consumer-focused look and feel
AGE
•because the income directly determine the purchasing
power of consumer, Lenovo PC products are distributed
across low end market, mid-range market and high end
market.
INCOME AND
EXPENDITURE

 Lenovo divided the overall market based on mature market and emerging market.
 Lenovo gave up this method of market segmentation, while Lenovo divided the global market into
four parts: Chinese market, North American market, EMEA market (Europe, Middle East and Africa
market) and Asia Pacific - Latin American market
 Lenovo sells its laptops to almost every country in the world but has major consumers in China
and India. Lenovo computers are the second largest selling computer brand in the world after
having bypassed Dell and Acer.
 Executive headquarters: New York
 Principle Operations: Beijing, Singapore
 Sales Headquarters: Beijing, Singapore, New York, Paris
 Manufacturing Centre’s : China, India
 Lenovo operates 46 world-class labs, including research centres in Yokohama, Japan;
Beijing, Shanghai, Wuhan and Shenzhen, China; and Morrisville, North Carolina, U.S.
They have a luxury problem in some ways, the brand is not well known, yet Lenovo’s
sales grew 35% ending 2015.Lenovo has had great success in enterprise and B2B market
segments. The company enjoys large market shares, dominating both business and
industrial segments in China and India.

 Lenovo's marketers quantify aspects of consumers' personalities and
lifestyles to create goods and services for a target market.
 For example, Lenovo products advertisements are different in Mainland
China and India. Because consumers in China focus on the performance of
the product while Indian consumers focus on the spirit that the product
convey. Furthermore, most Chinese PC consumers like comparing goods
before taking money from their wallet, while European consumers prefer to
pursue high-quality product and to make decision quickly.

In the psychographic segmentation emphasize is on the lifestyle and interest
of Lenovo’s customers. Some children have more interest in playing the
videos games on the laptop and some people prefer to watch the movies on
the laptop.

The benefit segmentation is related with the design and delivers
the product to the consumer by offering the relevant service
to the consumers It includes: ..................
Customer Segmentation
•Lenovo Company for business design the idea
pad S, idea pad U and Think pad R
General Business
Purpose
•For student group Lenovo mainly makes idea pad
Y series.
College Students
•For advance games Lenovo offers 3000 series
and Lenovo yoga
Advanced Gamers

 Provides customer call and chat services in 15 different languages.
 Lenovo divided the overall market based on :
(1) mature market and (2) emerging market.
 Lenovo covers low level, medium level, and high-level products,
targeting various users ranging from individuals to large enterprises.
 Additionally, Lenovo is a market follower after Dell and HP and this
pricing strategy can allow them to ensure values as well as the optimal
price of the products.
 In contrast, Lenovo attack emerging market, such as Kenyan market,
with cheap PCs, Furthermore, The Group's PC business across the
mature markets are facing challenges in the retail channel due to
significant slowdown in consumer demand.. Overall, Lenovo’s target
market will be considered when making decision about the four
marketing mix variables.

Differentiation Strategy:
 A differentiation strategy is based upon persuading customers that a product is superior to that
offered by competitors. The major benefits to Lenovo of a successful differentiation strategy are:
 (1) Its products will command a premium price.
 (2) Demand or its product will be less price elastic than that for competitors‟ products.
 (3) Above average profits can be earned.
 (4) It creates an additional barrier to entry new business wishing to enter the industry.
 Lenovo is seeking to differentiate itself which will organize its value chain activities to help create
differentiated products and to create a perception among customers that these offering are worth
a higher price.
Pricing Strategy:
 . Lenovo has been very aggressive in its pricing strategy with its different series of laptops and
respective models. Lenovo initially followed IBM’s pricing policy. This can be considered skimming
done by a company which wants to earn as much as possible.
 Based on different levels of consumers, Lenovo developed different prices, by creating
differentiated products to meet different consumer groups, formulating differential price
discrimination.

 Lenovo's production line is continuity, so prices of their products are also of continuity, from
more than 10,000 Yuan to more than 2000 Yuan. Almost every 500 Yuan there are two products
to serve the different needs and purchasing power of consumers. Lenovo now has 19 species,
200 various models of products; Lenovo's exports and diversified product enable it to avoid
involvement in domestic plague of the price war impact of its competitors.
 Lenovo's price strategy can according to products in accordance with the best performance of
the physical value, brand value, the value of service and other form of value make Lenovo
establish an independent retailer.
 Cognitive value in the eyes of consumers, which can be the base of the price of Lenovo products
and achieve the relatively independent cognitive value system. This awareness of the value
system is not set up like the prices can be as simple imitation. Such an independent value and
the price of Lenovo model are built on years of accumulated brand and the concept of service.
This created a core competitiveness of Lenovo brand and Lenovo is still invincible in the fierce
competition.
. Lenovo Laptops prices are in the range of Rs.24500 to Rs.54000.There are several high end models
also which cost more than Rs. One Laths. Dell is the market leader which offers an AMD Athlon
processor in its lowest costing desktop worth 16000Rs.In the same category, Lenovo introduced the
3000Hseries-a P4 processor for Rs 18000/-.Lenovo has always maintained a product mix such as
bread and butter products like 3000H series and high end products like ThinkPad and Think centre

 The Lenovo’s competent advantage is developed from differentiation and cost saving
through value chain. It’s main focus on:
 Improved supply chain;
 A cheaper price through lower transaction costs;
 Convenience and twenty-four-hour access;
 Good reputation among customers;
 Quick and efficient search capability;
o The personality of the service;
 Wide selection and one-stop shopping;
 First mover in the market stronger than average and well-known
•Lenovo famous brand names makes Lenovo stay well in the fierce market
competition, Lenovo’s lot of advertising budgets provided a strong guarantee for
the material in order to maintain the competitiveness of Lenovo brand. Over the
years, Lenovo brand and Lenovo advertising leave a deep impression in people’s
minds, enhancement of brand recognition, is actually the acceptance of Lenovo
cultural diffusion.

 Lenovo also advertise its products on radios and television throughout the
world to spread the awareness about their products and latest additions to
people. Lenovo also use various search engines and official sites to advertise
its latest laptops. Lenovo made ThinkPad as the bridge to increase the brand
value in international market. Very strong strategy used by Lenovo was in
2008 for Olympics.
 Television: Advertisement will be released on free-to-air channel like ABC,
Channel 7, Channel 9, Channel 10 and SBS, and subscription broadcasting,
 Radio: Radio is a nearly ubiquitous medium in Australia and has strong
potential as an advertising medium. Advertisement will be released on some
music channel like b105 in Brisbane.
 Lenovo should build various communication mixes so that it can connect to
its key group.

The company is acknowledged as one of the leading
companies in the FMCG sector with “ Top rated wealth
creators of India”
It is progressively evolving into food, beverage, nutriton
,health, wellness and touching lives of people.
Nestle India has strong brands like Maggi, Nescafe,
Cerelac, Lactogen, kit Kat polo, Milo and Polo.
It has set up “café nescafe” and “coffee corners” in mini
metros.
Nestle is leveraging the vast consumer base in India.
There has been continuous focus on values.

Henri o nestle
Nestle was founded in 1867 in Geneva,
Switzerland by Henri Nestle. Nestle's first
product was "Farine Lactee Nestle", an
infant cereal. In 1905, Nestle acquired the
Anglo-Swiss Condensed Milk Company.
Nestle's relationship with India started in
1912. It began trading as The Nestlé Anglo-
Swiss Condensed Milk Company (After
India's independence in 1947, the economic
policies of the Indian Government
emphasised the need for local production.
Nestlé responded to India's aspirations by
forming a company in India and set up its
first factory in 1961 at Moga, Punjab.

Nestlé India’s first production facility, set up in 1961 at Moga
(Punjab), was followed soon after by its second plant, set up at
Choladi (Tamil Nadu), in 1967. Consequently, Nestlé India set
up factories in Nanjangud (Karnataka), in 1989, and Samalkha
(Haryana), in 1993. This was succeeded by the commissioning
of two more factories - at Ponda and Bicholim, Goa, in 1995 and
1997 respectively. The seventh factory was set up at Pantnagar,
Uttarakhand, in 2006.
The 8th Factory was set up at Tahliwal, Himachal Pradesh, in
2012.

 Nescafe employs a “think globally ,act
locally” strategy NESCAFE coffee is
marketed as global brand even
through advertisement messages and
product formulation very to suit
cultural .
 Nestle uses the most suitable
language for advertising in different
countries .

Helps reinforce the message
and the recognition of the
brand
White on a contrast
background color which can be
slightly altered to suit the
packaging of any product
N’s stroke covers
all the rest of the
letters to create
unity
Letter style is strong and bold
representing the strength of its quality
Also implies sophistication of its taste
through the use of Serif font.
The little stroke above
the letter E suddenly
makes the word café
be seen as one
separate word
The words “NESTLE”
combines with the sense
of fun and warmth of a
“CAFÉ”

WITH SUCH A STRONG CULTURE OF TEA
PRODUCTION AND CONSUMPUTION AND COFFEE
CULTURE JUST EXISTIONG ON A FRINGE , A
CAMPAIGN BY NESFACE TO ENCOURAGE
BANGLADESHI CONSUMERS TO HAVE “ MY FIRST
CUP” OF NESCAFE INSTANT COFFEE. AT THE TIME
OF ITS STUDY THEY CAPYTURED THE IMAGINATION
OF STUDENTS

 Nestlé’s basic strategy is to cover only the urban area of
Bangladesh. That’s why they are doing their activities in
main and metropolitan cities of Bangladesh.
 They want to keep babies and children healthy and
ensure their proper nutrition. That’s why majority of their
products are baby food products. They also target new
generation to build a strong relationship by providing
various food products.
 They want to move customers toward their products.
That’s why they are offering new products continuously.
They also arrange many social competitions for babies to
enter their mind.

I. GEOGRAPHIC SEGMENTATION
 Weather: Nestlé Bangladesh Limited
segmented its market for Nescafe Ice based
on the geographic weather: hot and cold.
 Nescafe Ice: A coffee which can be consume
with ice. During hot season consumers
consume this coffee with normal or cold water
with ice cube to bring freshness in their mind.

 products Cerelac, Lectogen, Koko Krunch, Nido, Nestle
divided the market segment for baby and children of
different ages.
A. Nido: It is nutritious milk specially formulated for children 2 years
onwards. It contains 25 minerals and vitamin D which helps child’s
growth.
A. Cerelac: Nestle also offers cerelac for new born baby. It contains milk
and rice mixed for under one year’s baby. It fulfills baby’s proper
nutrition.
B. Nesquick, Koko Krunch: Both are chocolate milk for children.Nesquick
and Koko krunch maintain child’s proper growth. It’s very delicious
and also contains vitamin protein, mineral.
C. Lactogen: Nestle Bangladesh brings full cream milk powder in our
country. It gives baby proper nutrition .Lactogen 1 is for babies whose
age less than 7 months and lectogen 3 is for babies whose age is
below 12 months.

 Occupation: Nestle segmented the market based on their customer’s occupation.
1. They have also various products for various occupied peoples. For example
their product KEYLOGGS CORNFLAKES are produced aimed at people who
doesn‟t have much time for preparing breakfasts for themselves and their
family because of the work load arises from their occupation. Another example
is Nescafe classic.
1. Nescafe classic: This product is for those who work hard and needs more
freshness. Both the male and female who need more caffeine Nescafe classic is
for them.
 Income: Nestle segmented their market based on customer’s income in an
effective way.
1. Some products of Nestle are aimed at people of relatively high income group
such as Kitkat Chocolate, Cornflakes
1. And some products are aimed at people of low income level such as Maggie
Shaad-E Magic. Another example is Lectogen.
1. Lectogen: Nestle charge tk 800 for per 900 gm Lectogen 12 milk powder.
They also charge tk 1000 for 900 gm Lectogen 3 milk powder pack. Middle
income and low income people are not able to buy these products for their
babies.

OCCUPATION
 StudentsAge: 15-23
 Lifestyle: Busy
Denstiy: Urban
Personality:
Ambitious, outgoing
Occasion: Seasonal
(at exam times)
Benefits: Convenience
User Status: Potential
user, regular user,
first-time user
User rate: Light user
Loyalty Status:
Medium
ProfessionalsAge:
23-31
Lifestyle: Western
Denstiy: Urban
Personality:
Inspired, outgoing
Occasion: In the
mornings
Benefits: Quality
User Status: Regular
user
User rate: Medium
user
Loyalty Status:
None, medium, strong
 ManagersAge: 46-
60
 Family Life Cycle:
Married w/children
 Lifestyle: Hard-
worker
 Denstiy: Urban
 Personality:
Ambitious
 Occasion: Regular
 Benefits: Speed
 User Status: Regular
user
 User Rate: Heavy
user

 Life style and personality: Nestle Bangladesh
provides KIT KAT these people who really want to
enjoy chocolate.
 Nescafe 3 in 1 is for exclusively those customer’s
who are really busy and do not have enough time.
They can save their time by taking Nescafe 3 in
1.All the things sugar, milk and coffee remain
mixed.

 Benefits: Based on benefits Nestle Singapore
segmented their market in an efficient way. So they
make available Cerelac for those customers who
want moreÂ profit from the product. Cerelac
includesÂ a high nutrition for baby's whose age is
less than 1 year. Two very important things rice
and milk remain added in cerelac. On the other
part, cerelac includes vitamin, more mineral and all
major useful nutritious elements for babies.Â

 Nestle Bangladesh Ltd evaluated the various market
segments on the basis of segment size and growth,
segments, structural attractiveness, and company objectives
and resources and decided to launch their operation all over
the country. Nestle separate their target market because of
having unique need and wants.
 Nestle Bangladesh Ltd selected their target market into two
market coverage strategies:
 Undifferentiated: Nestlé has offered several products such
as Nescafe 3 in 1 Maggi noodles, and Kit Kat to the people
of the whole Bangladesh without differentiating the market
segment.
 Differentiated: Nestle also selects the differentiated
marketing. It offers different product for different segments
based on different age, occupation, season and climate.

 Nescafe 3 in 1: Coffee for people who are busy.
 Koko Krunch, Nesquick: Chocolate milk who want to
get taste of chocolate.
 Nescafe Ice: Cold coffee for the people in hot weather.
 Concentrated: Through concentrated marketing,
Nestlé achieves a strong market position because of its
greater knowledge of consumer needs. In the niches it
serves and special reputation it acquires. Nestlé
specializes in producing baby foods. It offers nutritious
milk powder Lectogen 1 for babies whose age is less
than 7 months and lectogen 3 for babies whose is
under 12 month. It also offers baby nutrition cerelac
for baby less than 1 year.

 Product Differentiation: Nestle brings a lot of product for target
customers. They provide 25 types of minerals in Nido for children. It also
provides Cerelac and Lactogen1 &3 for newly born baby exclusively. Now
the doctors prescribe these products for babies to their parents for high
nutrition Nescafe is a product which contains 4 types of categories. They
offer Nescafe ice for hot weather, classic for all 3 in 1 for those who are
busy. They provide Maggi including Maggi instant; Maggi 2 minutes
which contain various minerals, vitamins and nutritions.Maggi also
provide magi healthy soup and Maggi corn soup but charge the same
price.
 Channel Differentiation: Nestle reach their products to the customers
through their expert market salesman and transportation. So that their
products are much available to their respective customers.
 Image differentiation: Nestlé’s logo is totally different from its
competitors that are greatly accepted by its customers. For that reason
customer easily identify them in the market which is another effective
advantage for Nestle.

 People differentiation: Nestle has a large number of
employees that are highly educated and trained. In
Bangladesh, 400 employees are working in market
Company chairman; Peter Brakeck- Letmathe and CEO Paul
Bulcke are highly educated, wise and experienced people.
They are running this business successfully for a long time.
 Service differentiation: another advantage for this company
is better service for its respective customers from its
competitors. They provide 24 hours hot line service. High
quality checking is maintaining for its customers. Its
marketing dept. and PR (public relation) dept. are working
for finding out customer’s new demands and response
toward their products.
 Selecting an overall positioning strategy:
The full positioning of a brand is called the brands value
proposition-The full mix of benefits up[on which the brand
is differentiated and positioned. The value proposition table
shows the product position of Nestle in the following:

 Baby Products: To babies who are deprived of proper
nutrition, Nido, Cerelac, Lactogen are the nutritious milk
Product that give you more nutrition then any other brand
because these contain different types of vitamin, mineral
etc.
 Nescafe: To busy people who drink coffee and have little
time for taking rest, Nescafe is the coffee that gives you
more energy than any other brand because it has the
highest level of caffeine,
 Maggi: To people, noodles and soup consumer who seek
better quality, Maggi noodles and healthy soup that gives
you proper nutrition than any other brand because it has
the best quality.
 Their motto for business is “GOOD FOOD GOOD LIFE”

 The advent of consumer food products has brought a
immense
 change in the field in the consumers food habit. Nestle
has done well to enhance its customers loyalty
operating as a market challenger in its industry. Nestle
is one of the largest food processing company. Their
products and quality mainly depends on their
experience and efficiency. Nestle believe on quality
that leads to good business and good development. It
has segmented the market based on certain clustered
preferences deploying multi-stage segmentation
approach to meet individual needs of the customers.
Offering new products would also close its existing
products gaps to a great extend ensuring satisfaction
and loyalty.

Presentation on market segmentation in foreign markets [autosaved]

More Related Content

What's hot (20)

Viewers also liked (15)

Similar to Presentation on market segmentation in foreign markets [autosaved] (20)

Recently uploaded (20)

Presentation on market segmentation in foreign markets [autosaved]