Market Segmentation - Targeting And Positioning- My Assignment Help

Develop a segmentation, targeting and positioning strategy for your firm's product. Ensurethat you discuss how you would segment the market for the product and which segmentation variables you would use; which segment(s) you would target, how and why; and what brand position you would recommend for the product to occupy; and how to target the recommended segment(s). It is imperative that you justify the recommended strategies. Market segmentation, targeting and positioning: The bread market in Australia needs to emphasize on fulfilling the demand of local regular resident in Australia. The below section will provide the details of the segmentation, targeting and positioning strategy for this bread market backed by theoretical approach: Market segmentation: Segmenting market means dividing a marketplace into distinctive grouping of buyers all the way through dissimilar requirements features as well as behaviour, which may have need of dissimilar products or marketing mixes. According to the literature related to segmentation, it is noted that there are five parameters for segmenting the market place, such as geographic variable, demographic variable, psychographic variable, behavioural variable and other aspects (Applegate and Johnsen, 2007). However, it is also true that no one single variable can be treated as the best fit for segmenting the market place. Reviewing the strategy adopted by market leaders in diversified industry, it can be said that it will be better to combine two or three variables that will support the organization to better define the target markets (Lamb, 2004). Therefore, from this point of view, it is recommended that the organization operated in the bread market in Australia, there is requiring combining the demographic variable with geographic variables. In specific, it can be said that the target market will be local residents [geographic variable] and middle and upper income category [geographic variable] groups. Target market: Targeting is all about evaluation of segmented market place. Here, the organization needs to evaluate the market segments as well as has to take a decision regarding which market place have to serve. The below figure will explore the details targeting strategy that considered all the segmented market places (Pelsmacker, Geuens and Bergh, 2004). Figure: Target market (Pelsmacker, Geuens and Bergh, 2004) Now, in this specific case before taking decision regarding what segment needs to be targeted, there is required to evaluate the market needs. The given information shows that several market operators cut the price of bread in an unconventional way. Under such circumstances, it is important to identify the appropriate market for targeting purpose. Since, the product itself clarifies that it is a daily needed product; the target market will be the known market place. In specific the switcher as well as loyal to other brand group will have to select here. In order do so, there is requiring implementing effective promotional strategy for the own products. However, it can be said that whatever, targeting strategy the organization will choose, it must be measurable, accessible, substantial, differentiable and actionable. Positioning: This the third stage of the segmenting, targeting and positioning or the STP strategy. It is noted that once the organization come across through segmenting as well as targeting strategy, it must have to decide in what position the organization will operate in the long run to occupy the targeted segmented market place. According to the literature, it can be noted that the product position is the stratagem through which the product is identified by customers on the basis of several imperative characteristics, such as the place the product lived in the consumers minds comparative to other organizations products. As identified by Semenik (2002), there are certain strategies commonly employed by the market leaders in several industry, such as product class, product attributes, benefits offered, usage occasions, users, against a competitors, and away from competitors. Below figure explored all such strategy: Figure: Positioning strategy (Semenik, 2002) Here, in case of bread market in Australia, the organization needs to select the positioning strategy, which will be best fit on given circumstances. It is the fact that cutting price will be the effective one to sustain in this market place (Wood, n.d.). Through several issues are there regarding such low pricing strategy, still the case example of Woolworths shows that it will be beneficial in the long run. So, keeping all these aspects in mind, the positing strategy will mainly emphasize on benefits offered to the consumer. However, in addition to this specified positioning strategy, the organization will also implement other promotional campaign to stay away from its competitors. Hence, to conclude this STP analysis, it can be said that the organization will target the switcher as well as loyal to other brand of the local as well as upper and middle income group of people through providing benefits. References Applegate, E. and Johnsen, A. (2007).Cases in advertising and marketing management. Lanham: Rowman Littlefield. Lamb, C. (2004).Marketing. Cape Town, S.A.: Oxford University Press. Pelsmacker, P., Geuens, M. and Bergh, J. (2004).Marketing communications. Harlow: Financial Times Prentice Hall. Semenik, R. (2002).Promotion and integrated marketing communications. Cincinnati, Ohio: South-Western Thomson Learning. Wood, M. (n.d.).The marketing plan handbook.