Below minds of the customer and the marketplace. Why

Below
is a report on the the importance of market segmentation, targeting
and positioning for a branded product that is A
close Shave aimed at the
consumer.

Market
Segmentation,
Targeting and positioning
are tools to align with the right product for they play an important
role to get to the right customer. They
allow the marketer to deliver a product within the target audience
needs and wants (Pickton and Broderick, 2005: 373). It is a necessity
to establish the needs and values of the target customers within each
segment, in order for companies to promote their products, brands or
services appropriately.

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In
this context :

Segmentation:
Dividing the market or customers into groups basing on similar
characteristics. Example: demographically, behavior, geographically
etc. Kotler and Armstrong define market segmentation as “dividing a
market into distinct groups of buyers who have distinct needs,
characteristics, or behaviour and who might require separate products
or marketing mixes” (Armstrong and Kotler, 2005: 54).

Targeting:
After segmenting, its is not likely to reach to reach every customer
in the market therefore a target audience is selected. The marketer
distinguishes among a variety of market segments, chooses one or more
of the segments and then develops products and marketing mixes
customised to each segment (Gunter and Furnham, 1992: 2).

Positioning:
Basically it means building a brand image in the mind of the
customer. Where does your product stand in the minds of the customer
and the marketplace.

Why
are Market Segmentation,
Targeting and Positioning important?

Segmentation
splits buyers into groups with similar needs and wants to best
utilize a firm’s finite resources through
buyer based marketing.
Example by Market Segmenting according to age; A Close Shave can
group three age groups (Group A: Age 18-25, Group B: 26-33, Group C:
34-41) these three group will have completely different lifestyles
and behavioral patterns, Group A may find the product desirable
because its a young group with less or no economical obligations,
Group B maybe an insecure group where most men if single want to
appear manly so may not care for putting face cream on and Group C
have economical obligations but may need the product since it does
not require a shave it saves time. Different age groups have
different opinions on the product basing on their buying pattern and
behavior. Attract
the right
customer.
By considering the customers’ attitudes toward a brand or product
the company will get a wide-ranging view of the market. The right
customer knows what he/ she needs specifically and will have the
right attitude toward A
close shave. It
would increase customer delight because B&G Shoprite will
concentrate on a specific target audience.

Reduce
risk in
deciding where, when, how, and to whom a product will be marketed.
The decision of production are risky because with one wrong decision
the product will flop in the market. It is crucial to segment, target
and position the market so as to achieve the best result in the
marketplace.

Increase
marketing efficiency by
directing effort specifically toward the designated segment in a
manner consistent with that segment’s characteristics. When all
efforts are directed to the right customers, it is easier to improve
on all production functions so as to ensure customer satisfaction. It
would also reduce the cost of the company by not marketing A
Close Shave
where it is not required.

Recommendation:

In
order to save A close Shave it is important to align the product with
the right customers and Market Segmentation, Targeting and
Positioning are the correct tools to be used to rescue it. The
product will not only be a success in the market place but it would
draw the right target audience and efficiently use the B
Shoprite resources.

Question
2.
B
Shoprite may consider segmenting the market for A
Close Shave as
shown below:

Demographics

Demographics
segmentation is a common strategy where you identify market segments
based on shared demographic or personality qualities. Specific
characteristics often used in demographics segmentation include age,
gender, race, marital status, income, education and occupation. A
mobile device tech provider might target a market of male consumers
age 18 to 24 who are in college or who have a college degree and a
salary ranging from $35,000 to $60,000.

Lifestyles
and Psychographics

Lifestyles
and psychographics segmentation is an approach that places emphasis
on the shared activities, interests and behaviors of particular
customers. Along with activities, lifestyle segmentation is driven
by characteristics such as shared interests, opinions, attitudes and
values of customers. A fishing bait and tackle shop would likely
target customers based on their similar interests and attitudes
toward fishing, for instance. This approach makes more sense given
widespread demographic traits among fishing and outdoor enthusiasts.

Geographics

One
of the simplest and most common segmentation strategies for small
businesses is based on geography. If you have a broad customer base
congregated in a local, regional, national or international
location, it makes sense to invest in geographic marketing. Size,
population density and climate factors are traits of geographic
segmentation, along with region or location. Targeting a rural
market of 10,000 customers is much different than targeting an urban
market of 100,000 customers, for instance.

Behavioralistic

With
a behavioralistic segmentation strategy, you target customers based
on their interest or experience with your company or products. With
this strategy, your market segments have shared familiarity with
your products. Benefits sought, usage, loyalty, prospect or customer
status are common characteristics. Car companies often use benefits
segmentation to target a broad market looking for different
benefits, such as economy, performance, luxury or status. Targeting
new prospects is also distinct from targeting brand-loyal customers.

Question
3
Possible
parameters to A Close Shave be positioned