1. GSK Horlicks is an iconic health drink for kids.

Over the years, the brand has

introduced several variants of Horlicks. What are segmentation and targeting?
Identify the type of segmentation done for each of the following:

1. Horlicks Chocolate for fussy children who like fun flavors

2. Mother’s Horlicks for pregnant women and lactating mothers
3. Junior Horlicks for newborns and infants
4. Horlicks Lite for calorie-conscious adults

Ans.1.

Market segmentation is the process of dividing buyers into different, measurable groups
and sharing similar wants and needs. Once the different segments have been identified,
marketers can decide on which target segments to focus on to help with corporate
strategy and growth.

For example, suppose your company produces high-performance athletic clothing.

Market segmentation first identifies everyone's interest and need for this type of
clothing. It then identifies groups in the market that share common needs. These may
include different sports-related groups, levels of athletic activity, brand loyalty, fashion
consciousness, price sensitivity, and so on. As a marketer, you analyze groups to
decide which ones you want to focus on and why.

Defining the market

It helps to understand the purpose and benefits of segmentation, looking back at the
moment and seeing the markets as a whole and how the segments can help you
understand the market. The market is a group of potential buyers with needs and
desires, as well as purchasing power that can meet those needs and desires. These
buyers can be individuals, groups, businesses or organizations. The "whole market"
includes all potential customers for a given product. Potential customers share a
common problem or business need that your product can solve, and they share other
features as well.

For the market to exist, the following five criteria must be met:

● A real need and / or need for a product, service or idea; This need can be
identified, unchecked or hidden.
● The individual / company must have the ability to pay for the product in ways that
are acceptable to the seller.
● The person / company must be ready to buy the product.
● The person / company should have the authority to purchase the product.
● The total number of individuals / companies that meet the previous criteria must
be large enough to be profitable to the seller.
If these criteria are not met, there may be no viable market for your product (s).

Sections of the market

Markets are usually large corporations that require considerable investment to operate
effectively. In fact, markets may be so large that it is impossible for a marketing
company to market their products effectively to all potential customers at once.

The answer to this question comes through market segmentation. Partitioning is a two-
step process:

Identify and classify people into homogeneous groups called segments

Determine which of these segments are target markets.

The marketing objectives of the division are:

● To improve the company's understanding of who their prospective customers are

and how to serve them.
● To reduce the risk of deciding where, when, how and to whom a product, service
or brand is being sold.
● Increase marketing efficiency by focusing on designated focusing on the target
market.
● Each product is suitable for every member of the entire market. For example, not
one shampoo is right for everyone on the planet. Not a single printer or cleaning
service is suitable for every company in the world. There are a variety of
requirements for buyers. The division accepts that different people and groups
have different needs. Successful marketers use segmentation to determine
which groups (or segments) of the market are best suited for the products they
offer. These groups have their target market.
● The target market should include only those segments of the market that are
profitable to serve and are likely to adapt to the products offered by a company.
The time, money and effort spent on marketing can be very effective when
focusing on this target audience. When companies do not identify the target
market, they dilute the effectiveness of their marketing resources because they
are spending money and effort trying to attract people who are not likely to
become profitable customers.

i. Horlicks Chocolate for fussy children who like fun flavors comes into the category
inside the psychographic segmentation that categorizes audiences and customers by
those factors that also relate to their personalities and characteristics.

Psychographic Market Segmentation Examples

● Personality traits
● Values
● Attitudes
 ● Interests
● Lifestyles
● Psychological influences
● Subconscious and conscious beliefs
● Motivations
● Priorities

ii. Mother’s Horlicks for pregnant women and lactating mothers comes into the
demographic segmentation is one of the most popular and commonly used types of
market segmentation. It refers to statistical data about a group of people.

Examples of Demographic market segmentation

1. Age
2. Gender
3. Income
4. Location
5. Family situation
6. Annual income
7. Read
8. Race

Another B2B example could be a brand that sells an enterprise marketing platform. This
brand can target women at middle-class families companies who have the ability to
make their fit and healthy.

iii. Junior Horlicks for newborns and infants comes into the category of geographical
segmentation is the simplest type of market segmentation. It classifies users based on
geographical boundaries.

Examples of geographic market segmentation

1. PIN code
2. City
3. Country
4. Radius around a certain place
5. Weather
6. Urban or rural

An example of a geographical divide is choosing an area where newborns and infants

rate is high and they also include demographic segmentation to know about the gender
and status of the family to target customers. The marketing platform can focus their
marketing efforts around the urban and urban centers where they are targeted.

iv. Horlicks Lite for calorie-conscious adults is the demographic and psychological divide
that focuses on who the customer is, and how the behavioral division focuses on how
the custom functions.

Examples of Behavioral Market Segmentation

1. Eating Purchases
2. Eating cost
3. User status
4. Brand interactions

Behavioral segmentation requires you to be aware of your customer actions. These

activities may be related to how the customer interacts with your brand or other
activities that may take place away from your brand.

The B2C example in this section is the luxury items or brand targeting customers who
have purchased a high-end Horlicks over the past three

2. Describe your decision- making a journey for the following products: that are
the steps in the consumer decision-making

a. Sugar
b. Men’s aftershave lotion
c. Smartphone
Ans.2.

Consumer decision-making refers to the decision-making steps that consumers take

before, during, and after buying a product or service. We also know buyer decision
processes, buyer's buyer journey, buying cycle, buyer funnel, consumer buying process,
or buyer decision process.

Problem identification

Problem identification or need identification phase is the first and most crucial step.
If a consumer does not perceive a problem or need, they will not consider the purchase
of the product and move on. As a smart business owner or marketer, you should always
try to create a "need", which means your product or service needs recognition in your
customer's mind. Your job is to present your brand as the best choice.

Information Search
The information search process is a pre-purchase phase where the user searches
through internal and external sources, both online and offline.
Customers collect information on various products or services that address the problem
they identified in the previous step. The Internet and search engines have done a lot to
help users in their information search. Nowadays, users use the Internet to do their
primary research and use Google as their primary research tool.

Alternative evaluation

The next step is an alternative evaluation. Evaluation of the alternative phase means
that the consumer takes their time to test all the options available in the market to meet
their needs. At this stage, the user evaluates their different options based on factors
such as price, quality, quantity, and value-added features. They weigh their options
against comparable alternative products, services, or brands in the market. Every
customer wants to find the best option. They do their part in risk management by
devoting their time to evaluating alternatives.

The choice stage

The final purchase decision is interrupted by two main factors: the level of motivation to
follow or accept negative feedback and feedback from previous customers.
This negative feedback may include things like word of mouth of previous customers,
customer reviews/customer reviews, seller's reputation, input from family friends, peers,
and warranty period of the product. This may include the ease of the seller's position
and the pressure at any time associated with the purchase of the product or service.

Evaluation

The final step is the aftermarket evaluation phase. According to the Business Study
Notes article, the last step is to test or evaluate the product the consumer has
purchased. They assess the value of the product, the satisfaction provided from the
product, and the value of the product to meet the customer's needs.

Decision making for the followings product :

i. Sugar

i. The buying decision process begins when the buyer becomes aware of a need or
problem that is unsatisfactory. Problem identification is a critical step in the consumer
decision-making process because, without it, there is no deliberate search for
information. If the consumer does not perceive any difference between her / his current
state and the desired state, the current status of the relevant consumer is very
satisfactory and there is no need to make a decision. Sugar is widely used in every
home, as it has many uses for tea, coffee, sweets, etc.Use marketing automation to
assist your consumers through every stage of their customer journey. Consumers have
short attention spans, so using marketing automation is essential in the need
recognition stage and throughout the purchasing decision process.

ii. Men’s aftershave lotion

ii. Shaving products include products such as shaving soaps and creams, as well as
pre-shaving lotions, to help women and men shave, to help eliminate unwanted body
hair. The buying decision process begins when the buyer becomes aware of a need, so
there is a need for this product. Now the customer will think about the safety of the
product as it should not be allergic or should not be harmful. Therefore, it is the duty of
business owners that they do all they can to take advantage of these technologies to
create brand awareness for their business online.

These products usually contain alcohol to moisturize the skin and moisturize the skin.
Alcohol in aftershave lotions works by closing skin pores and preventing irritation,
commonly known as razor burn. The safety of aftershave lotions is established by the
selection of safe and convenient materials for this purpose. Additionally, aftershave
lotions assess their ability to cause skin or eye irritation or allergic reactions. Product
safety is also established despite adherence to the principles of Quality Assurance and
Good Manufacturing Practices. This includes testing the compatibility of the product with
packaging and shelf-life stability. Finally, they monitor the safety of products in the
market place to find out any reports of consumer injury.

iii. Smartphone

When we think about buying the smartphone various questions come into our mind and
some are like to whom you motivate to buy the smartphone, 51.22% of respondents
said they made their decision independently, while 31.71% of respondents said they
were influenced by the purchase of mobile phones by friends. This makes it clear that
younger consumers are more independent personal decision-makers, and in
comparison to the family (17.89%) they are more likely to be influenced by their friends,
as this generation of people hangs out with their friends.

To analyze how much consumers are impacting their lifestyle, two survey questions
were integrated. The upper-class, middle-class, and lower-class families are required to
give their opinion on the average household income and, at the same time, their
average monthly expenses. They were asked about their spending habits and their
personal opinion on the average household income of lower, middle, and upper-class
families.They need to know that they have found the best deal or consumer choice
possible to satisfy their needs. This stage is critical for risk management and to help the
consumer arrive at the best logical conclusion for their purchase decision.
3. a. Explain the different adopter categories in the Innovation adoption process,
taking the example of any innovative product of your choice.

a.

Innovators

These represent the first 2.5 percent of the total adopters. These innovators are those
people who are young risk runners, rich, better educated, more cosmopolitan, but less
integrated with local groups. They are the forerunners and important to the victory of
new products so introduced.

Examples :

The electronics company LG introduced a new type of screen that is so flexible that it
rolls up like a newspaper. It is one of the clearest or safest invention and innovation
examples as it solves the problem of portability.

Early adopters

These represent the next 13.5 percent of the total adopters. These are the people who
are adopted in the per groups and act as taste-makers or opinion leaders in their local
groups. Generally these types of the people are wealthier and better educated and have
greater technical knowledge of the innovation.

As they are integrated with the community, they exert influence. Others turn to them for
their advice the moment they come in contact with these persons.

Example: For example, the first iPhone, launched in 2007, came with a $600 price tag.
And after two months , Apple lowered the price to $400; in June 2009, the price fell
again to $200 and the phone offered twice the storage. Nonetheless, early adopters
camped out in front of Apple stores and other retailers in 2007 to get their hands on the
first version.

The initial majority

This group accounts for the next 34 percent of the total adopters. It constitutes that
portion of the people who are average people in terms of income, education, age, and
occupations. As they are middle class , they have found more cautious before adopting
normally waiting until its benefits and other features have been clearly demonstrated
well before adoption. The early majority, however, is much more likely to wait for the
$200 version and might only purchase it after personally hearing stories from innovators
and early adopters who have used the product.

Late Majority

This group represents the next 34 percent of the total adopters. These people are more
conservative, less educated, and older with limited purchasing power. The reason for
their adoption is that the majority of the people have adopted or the product is within
their purchasing power now. The last majority rarely provide any kind of thought
leadership in a field. They wait for the product price to fall.

Backward organizations

This last chunk accounts for the remaining 16 percent of the total adopters. This group
considers adopting as the last resort as there is no alternative. The features of this
group are not available because very less is known about this group.

3. b. What are membership groups and symbolic groups? Discuss 1 membership

group and 1 symbolic group from your life.

3.b.

Membership groups can be divided into primary or secondary and informal or official. If
a person is in regular contact with certain people, such as family, friends, etc., they form
a primary group. If group members are less familiar with themselves, they form a
secondary group, such as shopping groups and sports clubs. This is a simple and self-
explanatory classification. The membership group belongs to one. Non-affiliated groups
are non-members.

Marketers are interested in studying the basic group when it comes to helping develop
product beliefs, interests, and preferences, and directly influence a person's buying
behavior. Research shows that members of groups with great contact are more likely to
buy the same brands under different circumstances.

For example : I have a membership group with my friends in which we name that
friendsclub and that group's main motto is to help the poor children of the area to
provide free education. Our group works on the weekends and see if there are any
problems with the childrens or not. I have a membership group in my families too in
which we regularly hold mini functions for the meetings.

Symbolic Groups: Hopefully the groups you belong to and want to join in the future.
These are known as antiseptic aspiration groups. We also have symbolic aspiration
groups attached to a person, but not belonging to them. These are professional sports
groups or some other elite group. Marketers use the symbolic group by using celebrities
to advertise products. The above figure shows the classification of groups. It is
important for marketers to study the behavior of groups and develop strategies
accordingly. Users use these groups as references at different times. Primary groups
have a greater and more direct impact on purchase behavior, and advertisers use family
settings and family events as an advertising tool to influence consumers.

For example, for youngsters cricketers like Sachin Tendulkar, Sourav Ganguly etc. may
form a symbolic group. They try to identify with these players by imitating their
behaviour like the style or sometimes by purchasing specific brands of bat, gloves,
dress, ball etc and so on and in this way I am attached with the MRF lover group.