Segmentation, targeting, and positioning strategy are important because it provides the information the business needed about the market and the consumers out there. By segmenting the market, the company can know about what each market segment needs and wants. Then they analyze whether the company’s resources are enough to meet those needs and wants. Resources are limited, and this will help the company to carefully target to the right market segment. Positioning helps the company to analyze competitor’s performance, and then the company can place itself in the right position. Once they know their place, they can identify the competitive advantage that might be possible to achieve and also the disadvantages.
By using an aid of a product from a personal grooming and health care industry, I will discuss about the application of STP strategy and the marketing mix of the product. The product I chose is The New Body Butter Duo from The Body Shop. This company, which is known by its natural based product, launched a new product which gives double benefits for the consumers. Unlike the other body butter product, Body Butter Duo provides two types of cream in one pot. The lighter colored cream is for where skin needs less hydration, while the darker colored cream is for the drier skin part, such as elbows and knees. It comes with four different variants; Sweet Pea, Vanilla, Floral Acai, and Macadamia. Each of them gives different sensation and scent with the same benefits.
Part 1: Segmentation, Targeting, Positioning Strategy
1.1 Market Segmentation
The first step to do in STP strategy is segmenting the market. Market segmentation is when the market is divided into different groups of consumers based on their similarity. Marketers should be able to identify different groups of customers and pick the right strategy or marketing mix for each group.
There are several most common ways of segmenting the market according to their common similarity. 1. Geographic segmentation
The market is divided according to where they are located, can be based on the countries, nations, states, regions, cities, density, and climate. By segmenting the market by its geographic location, the company can localize its product. The Body Shop targeted its market at urban areas with both cold and hot climate. It first operated in UK in 1976 and now has expanded its market by operating over 2,500 outlets in more than 60 countries in 5 different continents all over the world. It divides the market into four parts: 1. Americas; 2. Europe, Middle East, Africa; 3. UK and Republic of Ireland; 4. Asia Pacific including Australia and New Zealand. People in different countries may have different skin tones. The Body Shop provides different types of face powder with different shades that will be more suitable for different skin tones of the customers.
2. Demographic segmentation
The market is grouped by their similar characteristics, such as age, gender, family size, family life cycle, income, occupation, education, religion, race, and nationality. Age: Basically, The Body Shop products are targeted at consumers at all ages. Most of the products, including Body Butter Duo are targeted at teenagers and adults in the range of age about 15 years old to 60’s years old. For older aged female consumers, The Body Shop provides Wise Woman product series which help to protect firmness and elasticity, and also to reduce fine lines in the face. There are also products which were made especially for babies, such as Buriti Baby Body Wash, Shampoo, Body Butter, Body Lotion, and several bath accessories.
Gender: Most of The Body Shop products can be used for both men and women. And it is no doubt that women are the major customers of The Body Shop. Body Butter Duo is targeted at both women and men. The Body Shop realized that men’s type of skin may be different from women’s. So, they also made products which are...
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