Segmentation, Targeting & Positioning

Segmentation:


Market segmentation involves grouping your various customers into segments that have common needs or will respond similarly to a marketing action. Each segment will respond to a different marketing mix strategy, with each offering alternate growth and profit opportunities.




Wimco had segmented its market as follows:


1. Those who use matches to light a stove in their homes

2. Smokers - Rural & Urban

3. People who pray and light agarbattis




Targeting:


Wimco has applied a sort of undifferentiated targeting towards Ship as a brand. Ship sells throughout India, in most parts of India and for the same price. Its buyers include everyone from a small retail shop to smokers across India. 




Positioning:




Ship is positioned as a multipurpose matchbox. It operates in conditions that are akin to perfect competition and thus its positioning is of little relevance. The positioning of a product is relevant when it is recognized by its brand name. Matchboxes are such a commodity that have no brand recall for 99% of its customers and that makes positioning extremely difficult.