role of segmentation(1)

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Role of Segmentation, targeting and positioning in

the marketing a periodical

By

Abhishek Mishra

Rahul JogiRam Upadhyay

Ravi Shah

Tahjib Patel

Probatives Group

PGP/SS/ISBE-A/2010-12 (SB: 3)

PROBATIVES (ISBE-A) Page 1


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Acknowledgement

We take the opportunity, while presenting this project report and to express our

deep gratitude to all those who afford their valuable help and time to help us to

complete the project successfully.

Firstly, we would like to thank our honourable Prof. Pabitra Ranjan Chakravorty

for giving us the opportunity to work on such a project. We got a chance to put all

our classroom theories and practices for understanding the role of segmentation,

targeting and positioning and various other concepts.

Service marketing is an important subject as it deals with the marketing principles

and methods for services. And we express our immense pleasure in studying the

subject. Here, we would like to thank IIPM for giving us the opportunity to study this

wonderful subject

We would also like to convey our sincere most gratitude to Prof. Kaushik Das who

has given his views and opinions about our topic. We highly appreciate the efforts

put in by them so that we can cover our topic in the most optimistic manner.



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We would also like to thank all the respondents for sparing their precious time in

filling up the questionnaires and also giving us their valuable feedback about our

topic of the project.

Finally, we would like to thank all the members of the Probative group for their

constant support and valuable inputs. Thank you everyone. This would not have been

possible without you people.



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Preface

Service marketing is quite different from the marketing of a product. It can be

because of many reasons and also because of the main difference of features and

characteristics in both.

Targeting, segmentation and positioning are three very important aspects of

marketing a product or a service. In the case of marketing a periodical, it plays a

very significant role because the print media market in India has so many players,

and the competition is very tough.

In such a situation, it completely depends on the way a marketer defines this targetaudience, the segment, the class of people, the position it wants to achieve in the

market. It also depends on many other aspects.

But it is very important to understand especially the role these three aspects viz.

targeting, segmentation and positioning as far as the marketing of a periodical is

concerned.



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Table of contents

Declaration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 01

Acknowledgement . . . . . . . . . . . . . . . . . . . . . . . . . . . .02

Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 05

Segmentation, targeting and positioning . . . . . . . . . . . . 07

Indian magazine market overview . . . . . . . . . . . . . . . . 36

Emergence of new players . . . . . . . . . . . . . . . . . . . . . 61

Research methodology & Primary research . . . . . . . . . . . 66

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .



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Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . .

Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Objective This Project report, broadly, has been designed to familiarize with the

characteristics of services in periodically magazine and their stp., their

implications on design and delivery, and highlighting the role of marketing,human resources and operations for sustainable competitive advantage for

stp of magazine and their strategy for business in India.

This report is not a pure description of a stp of magazine but its for all

print media sector, but involves critical evaluation and/or identification of

key issues. This report uses the concepts evolved during the course, uses

them where appropriate. This report tries to address the following.

The objectives of the project study are as follows: -To do a service delivery study & analysis of magazine in India.To analyze the customers need, and want.To do a study and analysis of service positioning by magazine in thecompetitive market, study customer satisfaction, study and analyze human

resource management.

To study and evaluate the service processes design and the performancemeasurement and management.



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To study and evaluate the customer value provided by periodicallymagazine.

To identify and evaluate the key issues in the service delivery.To evaluate the reasons for the existence of service delivery gap.To use and apply the concepts of Service Marketing to analyze andminimize

the service delivery gap by doing Gap Analysis.

To analyze and evaluate the financial implications of improving theservices.



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Introduction :-

Print Media in India is more than a century old and a well-established industry. The print industry mainly comprises of newspaper and magazine publishing. Bookpublishing is smaller but significant in terms of revenue. Even though it's a matureindustry, new magazines are being launched every year. India has been one of the

fastest growing world economies since the past three years. Robust consumption and

rising income levels have helped the growth of print media. New titles that focus onniche topics continue to launch in the market. The revenue sources for a magazineare subscription, single copy sales and advertisement. Approximately 73 percent ofrevenue comes from advertising and 27 percent from circulation.

Challenging Times :-

The magazine industry is going through a tough phase in India just like in othercountries. Newspapers have added supplements to their main issue and infringed onthe content covered by magazines earlier. Television channels have launched indifferent genres that didn't exist a few years back. And with the increased

penetration and adoption of the Internet in the country, more people are now

consuming news and stories on different topics on the web and mobile. There is stilla demand for high quality print content and magazines need to deliver on that needto avoid losing market share to other mediums. In addition, they also need toexplore and distribute their content on the web and mobile platforms to give choiceto their subscribers to consume content from anywhere and at any time.

India has 49,000 publications, but annual revenues total just $1.1 billion. Most lacktechnology, marketing, and capital to grow which has resulted in a handful of

publications dominating the market with the Times of India Group being the marketleader. Distribution is critical for a magazine since it has to be readily available andmarketed to consumers. Big publications have strong distribution network set up.

Retail: magazines are available in retail outlets for sale. The retailer gets acommission on the sale price.

Subscription: publisher signs up subscribers directly or through partners anddelivers the issues in mail.



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Selective Distribution: Special sponsored copies are distributed in airplanes

and hotels.With the growth coming from Tier-2 and Tier-3 cities, magazines have to expandtheir distribution channel aggressively in those locations and localize content whereneeded.

The print industry in India is highly fragmented due to the large number of locallanguages. Regional language publications own 46 percent of the market share, Hindilanguage publications cover 44 percent and the remaining 10 percent is served byEnglish publications. The primary penetration of English language magazinescurrently is in metros and urban centres though the growth is widening to smallercities as the education and income levels increase among the middle class.

With the opening up of Foreign Direct Investment (FDI) policy, several international publishers are aggressively entering the market and this trend is expected tocontinue.

The Opportunity :-

There's little doubt about India's market potential. According to a national survey,248 million literate adults still don't read any publication. Readership of newspapersand magazines is up 15% since 1998 to 180 million. It's a reflection of a younger,more educated population, especially in smaller cities.

Now that the doors to foreign investors in print media have been thrown open, onecan expect activity to pick up in this sector. Companies such as Pearson, Haymarket,

Time India, News Corp., and Dow Jones have eyed India's big, English-readingmarket. ICICI Ventures, which holds stakes in three media companies, is quite bullishabout the industry's prospects.

Trade books offer the best openings, since a higher FDI has been permitted in them.Britain's Haymarket Publishing Group already has ties to Auto car India, with 80,000subscribers. Haymarket doesn't own a stake, but helps with research andmanagement. Now, it can invest, provide funds to print more copies, market morestrongly and use Auto car as a platform to bring its other brands. Bombay's TataInfomedia, a $30 million publisher of yellow pages and trade magazines, also hasalready started to solicit business with foreign companies. The Tata Group sold the

Indian edition of Reader's Digest magazine, making it the first publishing propertyoffered for sale since the government had scrapped the ban on foreign investment inthe print media.

As expected, there have been various anti-FDI lobbies, which are strongly voicingprotests against foreign investment in Indian Print Media. Their major contention is



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that foreign forces might begin dominating the content of Indian publications, whichis detrimental to national interests. An extreme view given by a former Indian PrimeMinister is that powered by their immense finances and goaded by an ambition tocontrol the emerging Indian market, the foreign monopolies will impose their ownagenda of ultimately controlling Indian politics. But there is more than meets theeye. The English-language media, fearing competition from players with deeper

pockets, has been resisting this move by the Government. And from a marketingpoint of view, the English press reaches the most lucrative segment of society - the300-million-strong middle class. International players are seen as a threat to marketshare.

The opening up of the print media sector to foreign investment is a bold decision bythe Government, considering the unwillingness of so many past Governments to dothe same. It is a policy decision that could have a very positive impact on the sector,

provided the Indian publications generate enough interest and exhibit their truepotential to the overseas investors. It could enrich the quality of the magazines andother publications.

Recent Developments :-

There were several niche titles that were launched in 2008 and 2009. A slewof foreign players launched their India editions.

The most notable magazine launched was Forbes India in May 2009 byNetwork18 and Forbes Media.

RPG Group's 'Open', a weekly magazine aimed at evolved Indian readerswho are well informed, well travelled and identify themselves as

global citizens. It is available in 12 cities.

Pathfinder Publishing's maiden title Career 360, a monthly publicationfocusing on career advice.

Technology Review, a technology magazine launched in India jointly by

MIT's Technology Review magazine and CyberMedia India Ltd.

Hearst Corporation's Harper's Bazaar, a fashion and beauty magazine inpartnership with India Today.



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The re-launch of Delhi Press' The Caravann, a fortnightly magazine that

covers politics, culture, arts and literature.

Images Group's FNL and Salon and Living etc., an Indian edition ofinternational homes magazine.

Gill India Communications' What Women Want, a woman's magazine forwomen aged between 20 and 45 years and 'Lifestyle Living', a lifestylemagazine dedicated to those with a creative lifestyle.

The trend for foreign magazines to launch their India edition isexpected to continue in 2010 as well, with BBC's Lonely Planetmagazine having launched recently.

Newspapers and publications have reduced the number of pages to cut printand production cost. Magazines have discontinued supplements, which wereearlier distributed free of cost with the main product.

Foreign Investment in Indian Print Media - Role of Government :-

The process of economic liberalization in India, which began more than a decade

ago, has taken another significant step by opening up the print media sector. Withthe UPA Government scoring an emphatic win in the LokSabha elections, the mediaindustry got an open-minded Information & Broadcast Minister in Ambika Soni whohas sent positive signals to the industry. Earlier in 2009, the Government gave itsnod to an increase in Foreign Direct Investment (FDI) in facsimile editions of foreignnewspapers. The Government also announced customs duty exemption on newsprint.

In December 2008, the Indian Government unveiled a set of guidelines to allowIndian editions of foreign news and current affairs magazines 26 per cent FDI as longas all key executives and editorial staff are Indian. The Ministry of Information &Broadcasting has for the first time given approval for the publication of the

facsimile edition of foreign newspapers by allowing The Wall Street Journal and

The Wall Street Journal Asia in India. Wall Street Journal India Publishing Pvt Ltd,a wholly owned subsidiary of Dow Jones and Company Inc, would bring out thesenewspapers. The government has announced customs duty exemption on newsprint

for the newspaper and magazine publishing industry. These concessions were



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announced in February 2009 in view of the economic slowdown and the highnewsprint cost which spiralled close to 25%.

Advertisement Revenue

Breakdown by Region :-

North: 23%

South: 38%

East: 9%

West: 26%

National: 4%

The ad revenue sources are national, local, classified, pre-printed (inserts) andadvertorials. The CPM rate for magazines is lower than television and the audienceis more targeted.

Ad Industry Size in India

Year 2006Ad Industry Amount ($ Million)TV 1,655Print 1,650 Magazine 300 Radio 125OOH 250 Internet 40 Total 4,020

Year 2011 (Projected)Ad Industry Amount ($ Million)TV 3,075Print 3,250



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Ad Industry Amount ($ Million)Magazine 573

Radio 425OOH 538Internet 238Total 8,098

Key Players

Top 25 English Magazines in India :-

India Today

Readers Digest

General Knowledge Today

Competition Success Review

Filmfare

Wisdom

Stardust

Outlook

Diamond Cricket Today

Business Today

Femina

The Sportstar

Competition Refresher

Health & Nutrition



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The Week

Auto Car

Outlook Business

Woman's Era

Business India

Champak

Outlook Traveller

Business World

Digit

Society

Frontline

Top English Magazines by Segment :-

Current Affairs, Culture & Politics

Outlook

The Week

India Today

Frontline

Tehelka

Reader's Digest



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Society & Women

Femina

India Today Plus

Woman's Era

Verve Online

Desh Videsh

Teens Today

India Line

Little India Overseas India Magazine

South Asian Life

Entertainment

Filmfare

G Magazine

Screen

Chitralekha

Music Today - India Today Publication

Deccan Chronicle - Cinema News

Bollywood Online



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Planet Bollywood Gossip

Bollywood News Daily

Stardust

Sports

Sport Star

ESPN

Cricket Info

Khel

Diamond Cricket Today

Fashion

Vogue (UK)

Cosmopolitan

Cosmo Girl

Fashion Planet

Glamour

Harper's Baza

Business & Financial



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Capital Market (Stock Market)

Business Today

Business Standard

Economic Times

Financial Express

Commercenet India

Trade India

India Vibes Online

Sourcing Hardware

Business India

Outlook Business

Computer & Electronics

PC Quest

Electronics For You

Dataquest

PC World

Popular Science

Popular Mechanics

Computer World



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Cyber India Online

Informatics

Silicon India

Voice & Data

Travel & Leisure

Budget Travel

Discover India Magazine

Gourmet Travel

Outlook Traveler

Travel Plus

Wanderlust

Lonely Planet

Conde Nast Traveller

Children

Amar Chitra Katha

Spiderman

Competition Master

Odyssey Magazine



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Competition Success Review

Wisdom

Fashion & Lifestyle

i-D

Another Magazine

M Magazine

Vogue

Dazed and Confused

View Point

Literature

Darpan

India Star

Raga Net

Meghdutam

Average Issue Readership (AIR) Analysis (2008 vs. 2009) :-

The Average issue readership numbers have been on a decline due to increasedcompetition from free content on the Internet and Mobile platforms.

India Today is the highest read English magazine in the county with anAIR of 1,955,000, which is an 8.7 percent decline in its readership.



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Readers Digest has seen a 2.1 percent drop in its AIR and is now at1,327,000.

General Knowledge Today has dropped by 8.5 percent, and is now at1,121,000.

Competition Success Review has an AIR of 766,00 and has seen a 3.5percent drop.

Outlook with an AIR of 533,000 has seen a 7 percent drop.

Filmfare is the new entrant in the top ten lists with an AIR of 490,000.

Wisdom has seen a 4.6% drop with an AIR of 455,000.

Stardust has slipped down the list with an 11.4 percent decrease. Thecurrent AIR is at 388,000.

Diamond Cricket today has an AIR of 378,000, which is a 5.5 percentdecline.

Competition Refresher has increased by 37.3% and its AIR is now at335,000.

The Week has dropped by 4.2 percent and the AIR is 322,000.

Femina has dropped by 4 percent and now has an AIR of 309,000.

Business Today has dropped by 12 percent in its AIR down to 287,000.

Health & Nutrition has an AIR of 250,000, which is a 11.3 percentdecline.

The Sportstar has seen 14.8 percent drop in its AIR and now stands at242,000.

Business India stands at 222,000, which is a 7.5 percent decline in itsAIR.



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Womans Era has seen an AIR of 200,000, which is a 4.8 percentdecline.

Auto Car had a 13.1 percent growth to an AIR of 199,000.

Champak has seen a 4 percent decrease with an AIR of 193,000.

Business India has an AIR of 166,000, which is a decline of 18.6 percent.

Business World has an AIR of 165,000.

Outlook Traveller has seen an AIR of 146,000.

Digit has seen a 5.8 percent decline.

Society has seen a growth of 1.7 percent.

Frontline has seen a 20.8 percent decline.

Tinkle Amar Chitrakatha is one of the few who have seen a 0.9percent growth.

Femina Girl saw a growth of 6.2 percent.

Auto India like many others has seen a 18.7 percent decline in its AIR.

P C Quest and Outlook Money have both seen a decline of 17.4 percentand 24.3 percent respectively.

Business and Economy has seen a 6.5 percent growth with an AIR of82,000.

Inside Outside has seen a 17.3 percent while Cosmopolitan has seen a61.4 percent growth.

Overdrive has dropped by 23.7 percent.

The Telegraph in Schools has grown by 72.5 percent with an AIR of69,000.



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New Woman has seen a drop of 9.2 percent while Magic Pot has an AIRof 58,000.

Time has seen a growth of 3.6 percent.

Cine Blitz has dropped by 5.7 percent while Elle and Savvy have grownby 29.7 percent and 13 percent respectively.



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Emergence of new players

(Reuters) - When Conde Nast launched its premium lifestyle magazine 'Vogue' inIndia last year, it carried a whopping 168 pages of advertisements of a total 400

pages.

Now, the publisher is preparing to launch its luxury men's magazine GQ and expectsa similar rush of advertisers in Asia's third-largest economy, where rising incomesand growing literacy are boosting readership and revenues of magazines andnewspapers.

From specialist magazines on whisky, golf and parenting, to regional-language

newspapers and financial dailies, new titles are coming thick and fast in one of the few markets in the world where advertising and readership for print media areexpanding.

"It's a fast growing economy and with consumption so robust and with incomes rising,it's a fertile ground for the print media," said Vivek Couto, executive director ofHong Kong-based research firm Media Partners Asia.

"There is also buoyancy in print advertising that is encouraging new launches andniche publications in particular."

Print publication advertising revenues in India generated 94 billion rupees ($2.4billion) in 2007, or 48 percent of all of the country's media advertising revenues,

PriceWaterhouseCoopers (PWC) said in a recent report. TV ads generated 41 percent.With the economy having grown at an average rate of 8.75 percent in the last fouryears, middle class incomes have raised, boosting demand for niche magazines onhealth, leisure and finances.

Growing prosperity in rural areas is also encouraging demand for publications inIndia's more than 20 official regional languages.

Revenue for newspapers and magazines in India, where reading at least onenewspaper in the morning is sacrosanct, grew at an average rate of 15 percent in thelast four years, higher than anywhere in the world, PWC said.

The growth is helped by a young demographic, more working women, rapid

urbanization and smaller households, PWC added in its report.

The print publication boom in India contrasts sharply with more mature markets inthe West where circulation figures and advertising revenues are down as readersmove to the Internet.



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BOOM :-India in 2005 allowed 100 percent foreign investment in non-news publications,keeping the cap for news at 26 percent.

Early investments included Independent News and Media's 26 percent stake innewspaper publisher Dainik Jagran, Pearson Plc's 14 percent in Business Standardnewspaper, Henderson Ventures' investment in HT Media and BBC Worldwidemagazine venture with Bennett, Coleman & Co.

More recently, private equity firm Blackstone Group put $150 million in regionalpublisher Ushodaya Enterprises, Warburg Pincus moved $33 million into the DainikGroup and DE Shaw invested $39 million in Amar Ujala Publications, according toresearch firm Venture Intelligence.

News Corp, which has a content alliance for The Wall Journal with HT Media'sbusiness daily, is keen on more launches. Pearson, which has sold its BusinessStandard stake, is reported to be in talks for a new venture.

"There's huge investor interest in the growth potential, because the segment is stillquite under-penetrated," said Atul Phadnis, chief executive of consultancy Mediae2e.

Local firms are also seizing the opportunity: Business Standard and Bennett,Coleman's Economic Times have launched Hindi and Gujarati-language editions oftheir financial dailies.

Deccan Chronicle Holdings has launched a business daily to compete with five others,and new regional-language and city papers are hitting the stands nearly every day.

The boom in advertising revenue is not limited just to print. As new media growsand controls are eased in television, these will attract greater investments andadvertising revenues.

Specialist publications have a better chance of scoring with advertisers and readersin the increasing clutter, Phadnis said.

"Niche publications are almost immediately profitable: Advertising more than makesup for lower subscriptions, and there are easy synergies with other verticals, like

radio or Internet."



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GLUT :-

But it's not all good news. The large number of players jostling in the market place

could lead to a drop off in advertising revenues in the coming years, analysts say."One of the worries is that publishers are taking ad revenues for granted," Phadnissaid.

"Everyone thinks it will keep rising, but as early as 2009 we are going to see a glut ininventory in TV, print and the Internet because of so many players. We will seeintense price competition, and smaller firms may be forced out," he said.

Investors are also chasing only a handful of large media firms, he said, nudging upalready high valuations: Deccan Chronicle shares trade at 10.3 times forecastearnings, while Jagran Prakashan trades at 19.3 times and Mid-Day Multimediaquotes at 19.7 times forecast earnings.

Rising newsprint prices are also bumping up production costs.

Still, Conde Nast expects Vogue will break even in its first or second year ofoperation compared to an average break-even period of five or six years in moremature markets, said Alex Kuruvilla, managing director in India, referring to Europeand the United States.

"We are optimistic and bullish," he said of the potential. "But also cautious: In thismarket, you have to be smart."

Attracting the attention of vendors who hawk magazines at traffic lights and gettingspace on shelves in overcrowded newsstands across Mumbai is not easy for newentrants.

"I am already running out of space," said K.B. Singh, pointing to a low wooden benchon a busy sidewalk piled high with dozens of glossy magazines and newspapers.

"Where will I put the new ones?"



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MARKET SEGMENTATIONMARKET SEGMENTATION

INTRODUCTIONINTRODUCTION: -: - The market for any product is normally made up of severalsegments. A market after all is the aggregate of consumers of a given product.And, consumer (the end userthe end user), who makes a market, are of varying characteristicsand buying behaviour. There are different factors contributing for varying mind setof consumers. It is thus natural that many differing segments occur within a market.

In order to capture this heterogeneous market for any product, marketers usuallydivide or disintegrate the market into a number of sub-markets/segments and the

process is known as market segmentationmarket segmentation.

Thus we can say that market segmentation is the segmentation of markets intohomogenous groups of customers, each of them reacting differently to promotion,

communication, pricing and other variables of the marketing mix. Market segmentsshould be formed in that way that difference between buyers within each segment isas small as possible. Thus, every segment can be addressed with an individuallytargeted marketing mix.

The importance of market segmentation results from the fact that the buyers of aproduct or a service are no homogenous group. Actually, every buyer has individualneeds, preferences, resources and behaviours. Since it is virtually impossible tocater for every customers individual characteristics, marketers group customers tomarket segments by variables they have in common. These common characteristicsallow developing a standardized marketing mix for all customers in this segment.

Through segmentation, the marketer can look at the differences among thecustomer groups and decide on appropriate strategies/offers for each group. This is

precisely why some marketing gurus/experts have described segmentation as astrategy ofdividing the markets for conquering them.dividing the markets for conquering them.

MARKETING STRATEGY AND MARKET SEGMENTATION:MARKETING STRATEGY AND MARKET SEGMENTATION: -- When it comes tomarketing strategies, most people spontaneously think about the 4P (Product, Price,Place, Promotion) maybe extended by three more Ps for marketing services(People, Processes, Physical Evidence).

Market segmentation and the identification of target markets, however, are animportant element of each marketing strategy. They are the basis for determiningany particular marketing mix. Basic steps in marketing strategy are as follows:-



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ATTRIBUTES OF EFFECTIVE SEGMENTATIONATTRIBUTES OF EFFECTIVE SEGMENTATION:-:-

Market segmentation is resorted to for achieving certain practical purpose. Forexample, it has to be useful in developing and implementing effective and practicalmarketing programmes. For this to happen, the segments arrived at must meetcertain criteria such:-

a. IdentifiableIdentifiable:: The differentiating attributes of the segments must bemeasurable so that they can be identified.

b. AccessibleAccessible:: The segments must be reachable through communication anddistribution channels.

c. SizeableSizeable: The segments should be sufficiently large to justify the resourcesrequired to target them. A very small segment may not serve commercialexploitation.

d. ProfitableProfitable:: - There is no use in locating segments that are sizeable but notprofitable.

e. Unique needsUnique needs: To justify separate offerings, the segments must responddifferently to the different marketing mixes.

f. DurableDurable: The segments should be relatively stable to minimize the cost offrequent changes.

g. MeasurableMeasurable: The potential of the segments as well as the effect of a specificmarketing mix on them should be measurable.

h. Compatible:Compatible: - Segments must be compatible with firms resources andcapabilities.



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REASONS FOR MARKET SEGMENTATIONREASONS FOR MARKET SEGMENTATION:-:-

Segmentation is the basis for developing targeted and effective marketing plans.Furthermore, analysis of market segments enables decisions about intensity ofmarketing activities in particular segments.

A segment-orientated marketing approach generally offers a range of advantages forboth, businesses and customers.

1. Facilitates proper choice of target marketingFacilitates proper choice of target marketing::-

Segmentation helps the marketers to distinguish one customer group fromanother within a given market and thereby enables him to decide which segment

should form his target market.

2. Higher ProfitsHigher Profits:: -

It is often difficult to increase prices for the whole market. Nevertheless, it ispossible to develop premium segments in which customers accept a higher pricelevel. Such segments could be distinguished from the mass market by features likeadditional services, exclusive points of sale, product variations and the like. Atypical segment-based price variation is by region. The generally higher price levelin big cities is evidence for this. When differentiating prices by segments,organizations have to take care that there is no chance for cannibalization betweenhigh-priced products with high margins and budget offers in different segments. Thisrisk is the higher, the less distinguished the segments are.

3.3. Facilitates tapping of the market, adapting the offer to theFacilitates tapping of the market, adapting the offer to thetarget:-target:-

Segmentation also enables the marketer to crystallize the needs of targetbuyers. It also helps him to generate an accurate prediction of the likelyresponses from each segment of the target buyer. Moreover, when buyers arehandled after careful segmentation, the responses for each segment will be

homogeneous. This in turn, will help the marketer develop marketingoffer/programmers that most suited to each groups. He can achievespecialization that is required in product, distribution, promotion and pricing formatching the particular customer group and develop offers and appeals for thesegmented group.



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4.4. Stimulating Innovation: -Stimulating Innovation: -

An undifferentiated marketing strategy that targets at all customers in the totalmarket necessarily reduces customers preferences to the smallest commonbasis. Segmentations provide information about smaller units in the total marketthat share particular needs. Only the identification of these needs enables a

planned development of new or improved products that better meet the wishesof these customer groups. If a product meets and exceeds a customersexpectations by adding superior value, the customers normally is willing to pay ahigher price for that product. Thus, profit margins and profitability of theinnovating organizations increase.

5. Makes the marketing effort more efficient and economicMakes the marketing effort more efficient and economic: -: -

Segmentation ensures that the marketing effort is concentrated on well definedand carefully chosen segments. After all, the resources of any firm are limitedand no firm can normally afford to attack and tap the entire market without anydelimitation whatsoever. It would benefit the firm if the efforts wereconcentrated on segments that are more profitable and productive ones.

Segmentation also helps the marketer assess as to what extend existing offer

from competitors match the needs of different customer segments. Themarketer can thus identify the relatively less satisfied segments and succeedby concentrating on them and satisfying their needs.

6. Benefits the customer as well:Benefits the customer as well: -

Segmentation brings benefits not only to the marketer, but to the customer aswell. When segmentation attains higher levels of sophistication and perfection,customers and companies can conveniently settle down with each other, as atsuch a stage, they can safely rely on each others discrimination. The firm cananticipate the wants of the customers and the customers can anticipate the

capabilities of the firm.

7. Sustainable customer relationships in all phases of customer lifeSustainable customer relationships in all phases of customer lifecycle: -cycle: -



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Customers change their preferences and patterns of behavior over time.Organizations that serve different segments along a customers life cycle can

guide their customers from stage to stage by always offering them a specialsolution for their particular needs. For example, many car manufacturers offer a

product range that caters for the needs of all phases of a customer life cycle:first car for early teens, fun-car for young professionals, family car for youngfamilies, etc. Skin care cosmetics brands often offer special series for babies,teens, normal skin, and elder skin.

8. Targeted communication: -Targeted communication: -

It is necessary to communicate in a segment-specific way even if productfeatures and brand identity are identical in all market segments. Such a targeted

communications allows stressing those criteria that are most relevant for eachparticular segment (e.g. price vs. reliability vs. prestige).

9. Higher market SharesHigher market Shares:: --

In contrast to an undifferentiated marketing strategy, segmentation supports thedevelopment of niche strategies. Thus marketing activities can be targeted athighly attractive market segments in the beginning. Market leadership inselected segments improves the competitive position of the whole organizationin its relationship with suppliers, channel partners and customers. It strengthens

the brand and ensures profitability. On that basis, organizations have betterchances to increase their market shares in the overall market.



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MARKET TARGETINGMARKET TARGETINGINTRODUCTIONINTRODUCTION:: - There was a time when finding the best customers was likethrowing darts in the dark. Target marketing changed all that...Today's savvymarketers know that finding their best prospects and customers hinges on wellthought out targeted marketing strategies.

Defining a target market requires market segmentation, the process of pulling apartthe entire market as a whole and separating it into manageable, disparate unitsbased on demographics. Target marketTarget market is a business term meaning the marketsegment to which a particular good or service is marketed. It is mainly defined byage, gender, geography, socio-economic grouping, or any other combination ofdemographics. It is generally studied and mapped by an organization through listsand reports containing demographic information that may have an effect on themarketing of key products or services.

Target MarketingTarget Marketing:-its involves breaking a market into segments and thenconcentrating your marketing efforts on one or a few key segments. Targetmarketing can be the key to a small businesss success.

The beauty of target marketing is that it makes the promotion, pricing anddistribution of your products and/or services easier and more cost-effective. Targetmarketing provides a focus to all of your marketing activities.

Market targetingMarket targeting simply means choosing ones target market. It needs to be clarified

at the onset that marketing targeting is not synonymous with market segmentation.Segmentation is actually the prelude to target market selection. One has to carryout several tasks beside segmentation before choosing the target market.

Through segmentation, a firm divides the market into many segments. But all thesesegments need not form its target market. Target market signifies only thosesegments that it wants to adopt as its market. A selection is thus involved in it.

In choosing target market, a firm basically carries out an evaluation of the varioussegments and selects those segments that are most appropriate to it. As we knowthat the segments must be relevant, accessible, sizable and profitable. Theevaluation of the different segments has to be actually based on these criteria and

only on the basis of such an evaluation should the target segments be selected. PROCESS OF CHOOSING THE TARGET MARKETPROCESS OF CHOOSING THE TARGET MARKET:-:-

TThe process of choosing the target Market are:-



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Choosing the target market is related to, but not synonymous with, marketChoosing the target market is related to, but not synonymous with, market segmentation.segmentation.

Segmentation is the means or the tool; choosing the target market is theSegmentation is the means or the tool; choosing the target market is the purpose.purpose.

Segmentation can also be viewed as the prelude to target market selection.Segmentation can also be viewed as the prelude to target market selection.

Choosing the target market usually follows multi-level segmentation usingChoosing the target market usually follows multi-level segmentation using different bases.different bases.

Choosing the target market involves several other tasks in addition toChoosing the target market involves several other tasks in addition to segmentation.segmentation.

Looking at each segment as a distinct marketing opportunity.Looking at each segment as a distinct marketing opportunity.

Evaluating the worth of each segment (sales/profit potential).Evaluating the worth of each segment (sales/profit potential).

Evaluating whether the segment is:Evaluating whether the segment is: Distinguishable.Distinguishable. Measurable.Measurable. Sizable.Sizable. Accessible.Accessible. Growing.Growing. Profitable.Profitable. Compatible with the firms resources.Compatible with the firms resources.

Examining whether it is better to choose the whole market, or the only a fewExamining whether it is better to choose the whole market, or the only a fewsegment, and deciding which ones should be chosen.segment, and deciding which ones should be chosen.

Looking for segments, which are relatively less satisfied by the current offers inLooking for segments, which are relatively less satisfied by the current offers in the market from competing brands.the market from competing brands.

Checking out if the firm has the differential advantage / distinctive capabilityChecking out if the firm has the differential advantage / distinctive capabilityfor serving the selected segments.for serving the selected segments.

Evaluating the firms resources and checking whether it is possible to put in theEvaluating the firms resources and checking whether it is possible to put in the marketing programmes required for capturing the spotted segments with thosemarketing programmes required for capturing the spotted segments with those resources.resources.

Finally selecting those segments that are most appropriate for the firm.Finally selecting those segments that are most appropriate for the firm.

FACTORS TO BE CONSIDERED WHILE TARGET MARKET SELECTIONFACTORS TO BE CONSIDERED WHILE TARGET MARKET SELECTION:-:-



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Target marketing tailors a marketing mix for one or more segments identified bymarket segmentation. Target marketing contrasts with mass marketing, which offersa single product to the entire market.

Two important factors to consider when selecting a target market segment are theattractiveness of the segmentattractiveness of the segment and the fit between thethe fit between the segment and the firm'ssegment and the firm's objectives, resources, and capabilitiesobjectives, resources, and capabilities.

Attractiveness of a Market SegmentAttractiveness of a Market Segment:-:-The following are some examples of aspects that should be considered whenevaluating the attractiveness of a market segment:

Size of the segment (number of customers and/or number of units).Size of the segment (number of customers and/or number of units).

Growth rate of the segment.Growth rate of the segment.

Competition in the segment.Competition in the segment.

Brand loyalty of existing customers in the segment.Brand loyalty of existing customers in the segment.

Attainable market share given promotional budget and competitors' Attainable market share given promotional budget and competitors'expenditures.expenditures.

Required market share to break even.Required market share to break even.

Sales potential for the firm in the segment.Sales potential for the firm in the segment.

Expected profit margins in the segment.Expected profit margins in the segment.

Market research and analysis is instrumental in obtaining this information. Forexample, buyer intentions, sales force estimates, test marketing, and statisticaldemand analysis are useful for determining sales potential. The impact of applicablemicro-environmental and macro-environmental variables on the market segmentshould be considered.

Note that larger segments are not necessarily the most profitable to target sincethey likely will have more competition. It may be more profitable to serve one ormore smaller segments that have little competition. On the other hand, if the firmcan develop a competitive advantage, for example, via patent protection, it may

find it profitable to pursue a larger market segment.

Suitability of Market Segments to the FirmSuitability of Market Segments to the Firm :-:-Market segments also should be evaluated according to how they fit the firm'sobjectives, resources, and capabilities. Some aspects of fit include:

Whether the firm can offer superior value to the customers in the segmentWhether the firm can offer superior value to the customers in the segment

The impact of serving the segment on the firm's imageThe impact of serving the segment on the firm's image



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Access to distribution channels required to serve the segmentAccess to distribution channels required to serve the segment

The firm's resources vs. capital investment required to serve the segmentThe firm's resources vs. capital investment required to serve the segment

The better the firm's fit to a market segment and the more attractive the marketsegment, the greater the profit potential to the firm.

TARGET MARKET STRATEGIESTARGET MARKET STRATEGIES:-:-

There are several different target-market strategies that may be followed.Targeting strategies usually can be categorized as one of the following:

Single-segmentSingle-segment strategystrategy - Also known as a concentrated strategy. Onemarket segment (not the entire market) is served with one marketing mix. Asingle-segment approach often is the strategy of choice for smaller companieswith limited resources.

Selective specializationSelective specialization- This is a multiple-segment strategy, also known as adifferentiated strategy. Different marketing mixes are offered to differentsegments. The product itself may or may not be different - in many cases onlythe promotional message or distribution channels vary.

Product specializationProduct specialization- The firm specializes in a particular product andtailors it to different market segments.

Market specializationMarket specialization- The firm specializes in serving a particular marketsegment and offers that segment an array of different products.

Full market coverageFull market coverage - The firm attempts to serve the entire market. Thiscoverage can be achieved by means of either a mass market strategy in whicha single undifferentiated marketing mix is offered to the entire market, or bya differentiated strategy in which a separate marketing mix is offered to eachsegment

The following diagrams show examples of the five market selection patternsgiven three market segments S1, S2, and S3, and three products P1, P2, and P3.

SingleSingle

SegmentSegment

SelectiveSelective

SpecializationSpecialization

ProductProduct


MarketMarket


FullFull

CoverageCoverage



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SS11 SS22 SS33 SS11 SS22 SS33

PP11

PP22

PP33

SS11 SS22 SS33

PP11

PP22

PP33

SS11 SS22 SS33

PP11

PP22

PP33

SS11 SS22 SS33

PP11

PP22

PP33

A firm that is seeking to enter a market and grow should first target the most

attractive segment that matches its capabilities. Once it gains a foothold, it canexpand by pursuing a product specialization strategy, tailoring the product fordifferent segments, or by pursuing a market

Specialization strategy and offering new products to its existing market segment.

Choosing the target market is a part of marketing strategy formulation, the othertwo parts being positioning and marketing mix formulation. Without right targeting,the firm cannot formulate an effective strategy. It is through careful segmentationand targeting that firm pick up right group of consumers. Also, it is through this

process that the firm gain vital knowledge about the need and buying behavior ofthe consumer in each segment and the differences between one segment and the

other. And, it is by using this knowledge that the firm develops marketingprogrammes that match the specific requirement of different segments. In otherwords, segmentation and targeting help the firm not only the characteristics of eachof the segments but also the distinctive excellence that is required for catering tothe specific needs of the consumers in each of them.Another strategy whose use isincreasing is individual marketing, in which the marketing mix is tailored on anindividual consumer basis. While in the past impractical, individual marketing isbecoming more viable thanks to advances in technology.



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POSITIONINGPOSITIONING

INTRODUCTION:INTRODUCTION: -- Positioning is a concept in marketing which was first popularized byAl Ries and Jack TroutAl Ries and Jack Trout in their bestseller book Positioning - aPositioning - a battle for your mindbattle for your mind". According to them Positioning is what you do to mind of the

prospect. They iterate that any brand is valued by the perception it carries in theprospect or customer's mind. Each brand has thus to be 'Positioned' in a particularclass or segment. Example: Mercedes is positioned for luxury segment, Volvo is

positioned for safety.

The position of a product is the sum of those attributes normally ascribed to it by

the consumers its standing, its quality, the type of people who use it, its

strengths, its weaknesses, any other unusual or memorable characteristics it may

possess, its price and the value it represents.

Although there are different definitions of Positioning, probably the most commonis: "A product's position is how potential buyers see the product", and is expressedrelative to the position of competitors. Positioning is a platform for the brand. It

facilitates the brand to get through to the mind of the target consumer.

The position of the brand has thus to be carefully maintained and managed.Example: when Marlboro cut down its prices, its sales dropped immediately, as itbegan being associated with the generic segment. Watches like Rolex are positionedas luxury segment watches, thus they being one of the most expensive have becomea symbol for accomplishment in life. If Rolex reduces its prices, it loses its perceivedimage and hence is in danger of losing its customers. This differs slightly from thecontext in which the term was first published in 1969 byAl Ries andJack Troutinthe paper "Positioning" is a game people play in todays me-too market place" in the

publication

Industrial Marketing, in which the case is made that the typical consumer isoverwhelmed with unwanted advertising, and has a natural tendency to discard allinformation that does not immediately find a comfortable (and empty) slot in theconsumers mind. It was then expanded into their ground-breaking first book,"Positioning: The Battle for Your MindPositioning: The Battle for Your Mind", in which they define Positioning as "an

http://en.wikipedia.org/wiki/Al_Rieshttp://en.wikipedia.org/wiki/Jack_Trouthttp://en.wikipedia.org/wiki/Jack_Trouthttp://en.wikipedia.org/wiki/Al_Ries


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organized system for finding a window in the mind. It is based on the concept thatcommunication can only take place at the right time and under the rightcircumstances."

POSITIONING CONCEPTS:POSITIONING CONCEPTS: -- Generally, there are three types of positioningconcepts:

Functional positionsFunctional positions :-:-

Solve problems.

Provide benefits to customers.

Get favourable perception by investors (stock profile) and lenders.

Symbolic positionsSymbolic positions :-:- Self-image enhancement.

Ego identification.

Belongingness and social meaningfulness.

Affective fulfilment.

Experiential positionsExperiential positions :-:-

Provide sensory stimulation.

Provide cognitive stimulation.

APPROACHES OF POSITIONING :-APPROACHES OF POSITIONING :-

The mainThe main positioning strategy is to either developing or reinforcing a particular

image for the brand in the mind of the customer. The main approaches to

positioning strategy are:-

Customer benefits approach.Customer benefits approach.

The price-quality approach.The price-quality approach.

The use or application approach.The use or application approach.

The product user approach.The product user approach. The product class approach.The product class approach.

The cultural symbol approach.The cultural symbol approach.

The competitor approach.The competitor approach.

http://en.wikipedia.org/wiki/Stock_profilehttp://en.wikipedia.org/wiki/Stock_profile


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1. Customer benefit approachCustomer benefit approach: -

This is an important positioning strategy. It involves putting the brand abovecompetitors, based on specific brand attributes and customer benefit. In the

automobiles sector we can see many car manufacturer give emphasis on

different technical aspects such as fuel efficiency, safety, engine performance,

power windows etc. Generally marketers identify positioning in respect of

product characteristics that have been ignored by the competitor. Often we can

see that firms attempts to position their brands along with two or more

characteristic simultaneously, this is done to give an extra edge to the product

from its rival and also helps increase the

Products life cycle: Thus a single product can solve many problem is the main

theme behind the product. Example:: Procter & Gambles Head & shoulderProcter & Gambles Head & shoulder

shampoo functions as anti dandruff and anti hair fall shampooshampoo functions as anti dandruff and anti hair fall shampoo.

Head & Shoulder positioned as both anti-dandruff & anti-hair fall shampooHead & Shoulder positioned as both anti-dandruff & anti-hair fall shampoo



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2. Price quality approachPrice quality approach: -: -Sometimes brands attempts to offer more in term of service, feature, quality,

or performance. Manufacturer of such brands charge higher prices partly tocover the cost and partly to communicate the fact that they are of high

quality. In fact in the same product category there are brands, through

comparable in qualities, which appeal on the basis of price. For example brands

like Rado andTimexuse quality and price positioning technique respectively.

Rado competes for quality and Timex competes for price. It is difficult to use

both quality and price positioning together because there is a risk that high

quality-low price positioning technique may infer the image of the product in

the mind of the consumer.

Rado Original ChronographRado Original Chronograph

Priced at USD 6516.00Priced at USD 6516.00



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Timex luxury watch priced around Rs.1800Timex luxury watch priced around Rs.1800

Example of price quality approachExample of price quality approach

3. The use and application approachThe use and application approach: -: - In this strategy the product ispositioned with a use or application approach. For example: - Largest Mobile

manufacturer in the world Nokia positioned its few variant of N-series mobiles

as music phones with enhanced memory and multimedia capabilities.

Nokia N-70 Music edition Nokia N-73 Music editionNokia N-70 Music edition Nokia N-73 Music edition

With 1GB memory with 1GB memoryWith 1GB memory with 1GB memory



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4. The product user approachThe product user approach:-:- In this approach, the brand identifies anddetermines the target segement for which the product will be positioned. Many

brand uses a model or a celebrity to position their product. The expectation arethat a model or a celebrity is likely to influence the products image by

reflecting their own image to it. For example:- Dabur Chyvanprash is

positioned for all age groups.

5. The product class approachThe product class approach:-:- This approach is use so that the brand isassociated with a particular product category. This is generally used when a

category is too crowded. For example:- HLL has positionedDove toilet soap as

a cleansing cream product for young womwn with dry skin and its is positioned

as a premium segment toilet soap.

6. The cultural symbol approachThe cultural symbol approach:-:- The positioning strategy is based ondeeply entrenched cultural symbol. The use of cultural symbol can help to

differentiate the brand from competitors brands. For example:- The positioning

technique ofMarlboroMarlboro cigarettes use the image of typical American cowboy .



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Marlboro gives its cigarette brand a American cowboy imageMarlboro gives its cigarette brand a American cowboy image Example of cultural symbol approachExample of cultural symbol approach

7. The competitor approachThe competitor approach:-:- Many brands use competitor as a dominantplank in their campaign. These brands are positioned following its competitor.

This is an offensive strategy.

DIFFERENT POSITIONING PLANKS / BASESDIFFERENT POSITIONING PLANKS / BASES:-:- Different types of positioningplanks /bases are used by the marketers are:-

1. EconomyEconomy:-:-Product positioned toward a particular segment keeping in mind it

economy.Example-Maruti 800, Tata Nano, NirmaMaruti 800, Tata Nano, Nirma detergent powder etc are

positioned for the economy segment

2. BenefitBenefit:-:- Product positioned with some beneficial features. Example-ColgateColgate

total, Clinic plustotal, Clinic plus etc.

3. Gender:Gender:- Product positioned for a particular segment. Example- Scooty Pep,Scooty Pep,

Titan RagaTitan Raga.

4. Luxury and exclusiveness :- Product or services positioned toward luxury

segment. Example-Taj group of hotel, Mercedes Benz E-class etc.Taj group of hotel, Mercedes Benz E-class etc.



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Mercedes Car-- symbol of luxury and exclusiveness

5. Fashion for elite classFashion for elite class:-:- Product positioned for fashionable elite class or

member of the society, who always want to stay ahead in term of fashion and

demands exclusive products only. Example Peter England, Van Heusen,Peter England, Van Heusen,

Raymond etcRaymond etc.

6. Technology and value added featuresTechnology and value added features:-:- Positioning of a product according to

its technological advancement and value added features. Example:-

Microsofts positioning of its recent operating system Windows Vista asMicrosofts positioning of its recent operating system Windows Vista as

the advanced operating system, Sony with various elecronic goods, LG etcthe advanced operating system, Sony with various elecronic goods, LG etc



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Preview of Microsofts window Vista operating systemPreview of Microsofts window Vista operating system

POSITIONING PLANNINGPOSITIONING PLANNING:-:-

Positions are described by variables and within parameters that are important to the

customers. Common examples are price, supporting services, quality, reliability, and

value for money. Often, customers position a product in relation to a brand or

product that is especially visible to them. This could be the market leader or any

other offer with a high media exposure and an above average marketing budget.

Therefore, it is advisable to use in-depth market research to determine relevant

parameters in order to understand how customers rate different products andmarketing variables.

The number of relevant parameters is normally low. Most often, they can be

described with a two- or three-dimensional matrix. This tool to visually depict

customers perceptions of a product and its position is called perceptual mapping.

E.g. Position in relation to price and quality



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Quality

Price

Normally, most suppliers in a market or in a market segment will be positioned

along the diagonal. This diagonal is called the Value-Equivalence-Line (VEL), since

value and price are balanced there.

In our example, product A is positioned unfavourably. It is too expensive for themass market and its quality is not good enough for the premium segment. In

general, there are the following strategies for repositioning; however, their

feasibility will depend on the particular situation.

Change the relation of price and quality for the existing brand; e.g. product re-Change the relation of price and quality for the existing brand; e.g. product re-

launch with improved characteristics.launch with improved characteristics.

Change the relation of price and quality by introducing a new brand; e.g.Change the relation of price and quality by introducing a new brand; e.g.

introduction of clone under a cheap brand or a retailers own brandintroduction of clone under a cheap brand or a retailers own brand Alter believes about the brand; e.g. image campaign, creation of a hypeAlter believes about the brand; e.g. image campaign, creation of a hype

Alter believes about competitive brands; e.g. comparing advertisementsAlter believes about competitive brands; e.g. comparing advertisements


Economy

Mass Market

Premium Market

Luxury Market


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Alter customers rankings of important factors; e.g. focus on additional featuresAlter customers rankings of important factors; e.g. focus on additional features

and characteristics (example: car manufacturers focus on very different productand characteristics (example: car manufacturers focus on very different product

characteristics in their commercials, for instance security, fuel consumption,characteristics in their commercials, for instance security, fuel consumption, image, luxury interior, fun)image, luxury interior, fun)

Introduction of new or neglected attributes; e.g. product re-launch with newIntroduction of new or neglected attributes; e.g. product re-launch with new

features that are new for the whole market segment.features that are new for the whole market segment.

When planning such activities it is critical to think about possible reactions of

competitors. A shift of a product into a more favourable position in the price-

quality-map above the diagonal (e.g. into position B) will normally lead to in shift of

market shares in favour of this product. Competitors could react with a reduction of

general price level, thus moving the VEL to the left. Product B would lose itssuperior position.

Moreover, it is advisable to keep in mind that customer and their individual

preferences of a price-quality-combination are not distributed equally along the

VEL. Neglecting the distribution of customers could lead to the following problems:

Positioning in a segment with very few potential customers (e.g. positioning in a

middle-segment in a market where customers prefer either the budget-product

or the premium product)

Positioning in a too low or too high price-value-combination (segments a and b in

our example). This product does not appeal to a large proportion of the market,

since customers either expect a higher quality (a) or are not willing to pay that

high price.

STEPS FOR POSITIONING A PRODUCTSTEPS FOR POSITIONING A PRODUCT:-:-

Dibb et al recommend the following steps for determining and implementing the

positioning of a product. Although they focus on new product development, thesesteps are applicable to a re-launch with new features or for a repositioning of an

existing product too.



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1.1. Define the segments in a particular market.Define the segments in a particular market.

2.2. Decide which segments to target.Decide which segments to target.

3.3. Understand what the target consumers expect and believe to be the mostUnderstand what the target consumers expect and believe to be the most important considerations when deciding on the purchase.important considerations when deciding on the purchase.

4.4. Develop a product (or products) that cater specifically for these needs andDevelop a product (or products) that cater specifically for these needs and

expectations.expectations.

5.5. Evaluate the positioning and images, as perceived by the target customers, ofEvaluate the positioning and images, as perceived by the target customers, of

competing products in the selected market segments.competing products in the selected market segments.

6.6. Evaluate the market leaders position; leading brand that occupies a specialEvaluate the market leaders position; leading brand that occupies a special position in the consumers mind (position in the consumers mind (cadburyscadburys in chocolates); other brands have toin chocolates); other brands have to

necessary relate themselves in some wayto the leaders position; they cannotnecessary relate themselves in some wayto the leaders position; they cannot

ignore the position of the leader, nor wish it away.ignore the position of the leader, nor wish it away.

7.7. Select an image that sets the product apart from the competing products, thusSelect an image that sets the product apart from the competing products, thus

ensuring that the chosen image matches the aspirations of the target customers.ensuring that the chosen image matches the aspirations of the target customers.

8. Inform target customers about the product (promotion).Inform target customers about the product (promotion).



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Research methodology and Primary research

Methods used for study: -

1) PRIMARY METHOD: By interviewing and interacting withmanagement and employees and friends working at various mediacompany.

2) SECONDARY METHOD: By use of companies official website and other

medias of communication used by the Company like newspapers, company

brochure , research paper and so on so forth



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Time spent for reading magazines

Less than 30min 36

30 to 60 min 39

60 to 120 min 16More than 2

hr 9

Age of people who are reading magazines



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less than 15 12

15 to 25 22

25 to 45 48

more than 45 18

Occupation of people who read magazines:

Businessman 32

Student 16



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House wife 3

Retired 9

Job/ Service 16

proffessional 24

Languages of magazines which are prefer to read:

English 63

Gujarati 12

Hindi 16

Others 9

Other Languages

Tamil 4

Marathi 5



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Category

Overviewof PrimaryResearch

Age 48 25 to 45

Occupation 32 Businessman

Income level 42 10000 to 40000

Time spend 39 30 to 60 min

Language 63 English

Types of Magazine 43 Economy and Business

Service Satisfaction 39 Strongly Agree

Place for read 42 Home

Delivery time 37 Excellent

Strongly agree 33

agree 12

Not sure 5

Disagree 39

Strongly Disagree 11



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Strongly agree 33

agree 12

Not sure 5

Disagree 39


Strongly agree 17

agree 37

Not sure 6

Disagree 26




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Focus Group Discussion: -

FGD 1:

CONDUCTED BETWEEN SIX PEOPLE ABOUT BUSINESS

MAGAZINE:

1. All agree with quality of content.

2. But disagree with service delivery.

3. Maximum people want supplements and would like get them with

every copy of the magazine.

FGD 2:

CONDUCTED BETWEEN SIX PEOPLE ABOUT ENTERTAINMENT &

SOCIAL MAGAZINE:

1. HERE, THEY WANT MORE DETAILED CONTENT.

2. THEY are happy with the quality of service but would like more articles

on specific cultures.

They would also appreciate if they get some interactive media and gift

vouchers with the magazine



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Personal Interviews:

At Central Mall At Iscon Mall



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At Central Mall At IIPM College

Conclusion: -

Most of the customers are dissatisfied with the quality of service and

quality of content.

So the companies have to focus on this aspect and to improve the

quality with respect to the content and service so as to retain present

customers and build up a trust-worthy organization.

Recommendation: -

Improve follow up on sales lead

Built customer loyalty



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Enter in to strategic alliances with companies that have customer base

similar to yours

Outsource business Get read of underperforming employees

Consider hiring a public relation firm

Make sure that you are getting the most off your advertising expenses

Ask for referrals

Create incentives

role of segmentation(1)

Documents