• Author / Uploaded
• Rakesh Melangi

• Categories
• Segmentación de mercado
• Marca
• Demanda
• Mercado (economía)
• Microeconomía

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Market Segmentation: Market segmentation consists of dividing the market into different groups of customers known as market segments with distinct characteristics, needs and behaviors.The basis of segmentation is based on two important dimensions, which are 1. Segmentation based on benefits sought by the customers 2. Segmentation based on observable characteristics of customers. In order to understand the effects of various factors on customer’s behavior, we have tried to analyze the present market segmentation on basis of few factors within the framework mentioned above. Being a consumer product the market can be segmented into

1. Geographical segmentation

1) Location 2) Density 3) Distribution channels 4) Climate

2. Demographic segmentation 1) Age

2) Gender 3) Income 4) Lifestyle 5) Family life cycle

3. Psychological criteria 1) Psychographics

4. Behavioral criteria 1) End use 2) Benefits sought 3) Usage rates 4) Loyalty The entire analysis is based on above four criteria for three different products offered by Dettol. The products offered are 1. Dettol Antiseptic liquid 2. Dettol Antiseptic soap 3. Dettol hand-wash Geographical segmentation: Geographical segmentation is an important factor in success of any market strategy. It determines the efficiency in which the company can market its products and target the market in systematic, focused approach. The distribution channels is managed by a well structured sales force responsible for achieving sales for the entire product portfolio of more than 150 stock keeping units(SKUs). This determines the easy of availability of product on local markets hence acting as a most important determinant for growth. The location density and climate plays an important role in demand especially with that of Dettol soaps which are more suitable for high heat and humid places due to its anti bacterial positioning. Demographic Segmentation: Demographic segmentation plays an important role in determination of demand in the market for the products. The market demand for Dettol soaps and hand wash is heavily influenced by age, gender, income and lifestyle. Whereas the demand for antiseptic liquid is relatively inelastic due its multipurpose use in various household chores such as washing, cleaning, first aid. The demand for Dettol soaps is highly influenced by gender and age because of the fact that it is positioned as an anti bacterial soap rather than a beauty soap. Income plays an important role since it influences the willingness to buy costly beauty soaps and the inclination to use of hand washes. The divide is widely visible in rural and urban household, which are influenced by the buying capacity and brand awareness.

Psychological segmentation: The psychological approaches rely on the analysis of customer’s activities, interests and needs in order to understand consumer consumption patterns and behavior. The brand value and its effect on various customers play an important role on determining how customers perceive the product as a whole. Dettol antiseptic liquid is an established brand and is mainly viewed as an necessary rather than a luxury because of its versatility. The Dettol soap is perceived as a soap mainly used for a specific purpose such as to avoid bacterial problems but not for a regular use. Hand wash as of today is well position though in a competitive market but is perceived as a costly product in the rural households and hence market share in that market is very low.

Based on Behavioral Segmentation: The segmentation based on end use, benefits sought, and brand loyalty plays an important role in success of a product and brand in that market. The segmentation can be best captured by understanding what customers want which is as follows: Benefits that Customers seek in a antiseptic liquid: 1. Use with bathing water for a complete germ free bath 2. Use with mopping water to disinfect floors completely 3. Use in washing laundry to disinfect your clothes 4. Use for cuts and wounds and as a must have product for first aid 5. Can be used as a disinfectant in shaving Benefits that’s customers seek in a antiseptic soap 1. Anti bacterial protection 2. Moisturizing and skin care properties 3. Lower price for higher quality 4. Availability in different fragrances Benefits that customers seek in an hand wash: 1. Effective protection against germs 2. Price, availability in various packet sizes and refill packs 3. Gentle on skin and good fragrance 4. Moisturizing properties The above segmentation helps us to understand the market in a focused approach helping us to with positioning and targeting the market in a systematic and cost effective way.

Targeting: The most important step after segmentation of the market is targeting. The following strategies can be used for targeting the consumer market. They are 1. Single segment concentration 2. Selective specialization 3. Product specialization 4. Market specialization 5. Full market coverage The other two important strategies are undifferentiated marketing in which the firm ignores the market segmentation and targets the whole market with one market offer. It focuses on buyer requirements and needs rather than the differences in buyers of the product. On the other hand in differentiated marketing the firm operates in several markets segments and thus places its strategies and programs for each segment in isolation. Dettol has established it self as a market leader in the antiseptic liquid category, it continues to take up various initiatives to ensure that it retains the position. Various programs like “Surakshit Parivar”, nationwide “Healthy Hand Wash” programs have been carried out to spread awareness and also promote their products by understanding the needs and specific requirements of various segments. The entire customer base of Dettol can be divided in to Urban, Rural and Institutional buyers. Even though the list is not exhaustive it is diverse enough to warrant assumption of these three segments as three different markets. The firm may select a single segment concentration if the firm feels its product penetration in different markets is low and if the strategy is to consolidate the existing market share. This is demonstrated by the fact that hand-wash market, though highly competitive, is being targeted aggressively in urban and to Institutional buyers because of the fact that market in rural arrears is not well developed and the brand awareness is less resulting in long gestation period. Dettol follows selective specialization by targeting each market based on the market potential. There is little synergy among the segments but each segment is a potential moneymaker. This multi segment coverage strategy has a advantage of diversifying the firms risk. This is seen by the fact that Dettol antiseptic liquid follows a product specialization targeting because of RB market leader position and brand loyalty in that product. As far as Urban market is concerned the firms follows a market specialization approach since all the three products can be sold in the market. Hand wash is basically targeted mainly at both Urban and institutional buyers due to its lower product awareness in rural areas. Soap which has a stiff competition in Urban sector is being matched with lifebuoy which is a market leader in rural soap markets. The main aim of RB group is full market coverage there by increasing its market share and diversifying its risk and attaining higher market share.

Demographic characteristics:

Demographic characteristics of the consumer segmentation can be divided into four divisions to better understand the requirements and product utility. The four divisions, which our consumer analysis was based on, are Urban Households: The Dettol antiseptic liquid is used for various purposes such as cleaning, laundry and plays a major role of disinfecting liquid. The major consideration of the urban household is the quality and availability of the product and Dettol has become a common household item. Price can be consideration for the lower middle class but the quality aspect plays a major role in Dettol’s reign as a market leader. Rural Households: The penetration of Dettol in rural areas is less than adequate even after being a major player. The main problem faced by Dettol is not the completion from other players but lack of brand awareness and the potential benefits of the products. Hence as of today rural market is a untapped market but is growing steadily with the rise in income, education and communication technology. Institutional Buyers: The various establishments such as schools, clinics and restaurants are one of the major markets even though the market demand is less in this segment due to various factors. The availability of stronger versions, bulk requirements and customized ordering is a major obstacle for the growth in this segment. Dettol Soap: Being a market leader and a household name Dettol has been associated with cleaning and disinfecting and has become a synonym with anti bacterial protection. Dettol soap is place in a segment and branded as an antiseptic soap and has a competition from Savlon , Lifebuoy and safeguard. It also faces some completion from medicated soaps that are being sold in the market. Benefits that Customers seek: Customers seek a soap which not only protects them from germs but also takes care of the skin care and beauty quotient. Even though the soap has a clinical smell it does provide the customers with a clean and healthy feeling. The major drawback is the customers brand awareness of being only a antiseptic soap. 5. Anti bacterial protection 6. Moisturizing and skin care properties 7. Lower price for higher quality 8. Availability in different fragrances Demographic characteristics: Urban household: The urban households are mostly attracted by high-end beauty soaps then that of anti bacterial soaps. This has limited the market growth potential of Dettol hence donning the role of a market follower rather than that of market leader. The company has brought in different variations of the soap such as Dettol skin care, Dettol cool soap, Dettol fresh soap etc. Due to its high brand awareness as being a disinfectant maker the market for

the same as been stagnant. The major demand for the product is during summers and for athletes because of its anti-bacterial properties. Rural Households: The major factor is the price and durability of the soap. The beauty soap market though has a presence the market is dominated by lifebuoy and other low cost high durable soaps. Dettol soaps unlike the liquid product has been growing rapidly in the rural market because of its durability, cost and unique fragrance. Even though lifebuoy has dominated the segment the fragrance advantage has tilted the market demand in favor of Dettol . The improving communication has also acted as a major determinant in the market growth. Institutional users: There is very in significant presence in the market because of the growth in use of hand washes and other antiseptic liquids thus reducing the market share of soaps. Dettol Hand-wash: Dettol has introduced its hand-wash products in various segments such as original handwash, skincare handwash, sensitive handwash, sensitive handwash, and fresh handwash. The constant innovation such as No-Touch hand wash has drastically improved it market share in handwash maret which has been dominated by lifebuoy. Benefits that Customers seek: 5. 6. 7. 8.

Effective protection against germs Price, availability in various packet sizes and refill packs Gentle on skin and good fragrance Moisturizing properties

Different segments: Urban Households: The growth of the market has been very high the urban market. The brand awareness of Dettol as being a antiseptic market leader has propelled the buying pattern of the customers. The market is characterized by high competition from lifebuoy and other products. Hence high differentiation in terms of product offering and price is imperative for the growth and development in this market. Rural Household: This market is still in nascent stage and the lack of awareness is a hindering factor for the growth. Even though income levels are growing in India’s rural household the market is extremely price sensitive. Institutional Buyers: This segments also has a high competition from lifebuoy and other lower priced products. The main important factor is the availability of low price and customized bulk deliverable options.

Dettol Antiseptic liquid is a well known product across the country and is a market leader with 87% market share only rivaled by savlon which has a market share of 13%. Dettol soap is an new entrant and is riding on the brand loyalty of antiseptic