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Cbs positioning & segmentation

This document provides an overview of marketing strategy and planning, with a focus on positioning, market segmentation, and target marketing. It discusses key topics like competitive positioning, market segmentation, identifying target markets, and competitive strategies. The document then summarizes a presentation on positioning versus segmentation, how to build a sustainable competitive advantage through positioning, and the risks of improper positioning. It also covers segmentation approaches like demographic, psychographic, behavioral, and motivational segmentation and frameworks like VALS 2.

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Marketing strategy and planning Positioning, market segmentation and target marketing Week 39 Jacob Holm Jacob.k.holm@gmail.com Tlf: 24 42 11 32 www.office2go.dk 1
The marketing management process Part 1:Marketing Strategy • Market –led strategic management – chapter 1 • Strategig marketing plannng Part 2: Competitive market analysis • The changing market environment – chapter 3 • Customer analysis – chapter 4 • Competitor analysis - chapter5 • Understanding the organizational resource base – chapter 6 • Forecasting future demand and market requirements – chapter 7 Part 3: Identifying current and future competitive positions • Segmentation and positioning principles – chapter 8 • Segmentation and positioning research – chapter 9 • Selecting target markets– chapter 10 Part 4: Competitive position strategies • Segmentation and positioning principles – chapter 11 • Competing through the new marketing mix – chapter 12 •Competing trough innovation– chapter 13 • Competing through superior service and customer relationship – chapter 14 Part 5: Implementing the strategy • Strategic customer management – chapter 15 • Strategic alliances and network – chapter 16 2 • CSR – chapter 18 www.Office2go.dk
Today subject 1. Positioning • A further discussion of the subject 2. Segmentation • Consumer markets • Business markets • Case: Office2go 3. Target marketing 3 www.Office2go.dk
Positioning >< segmentation Competitive positioning: Identifying the positioning of competitors to develop our own competitive strategy Market segmentation: Identifying the most productive bases for dividing a market identifying the customers in different segments and develop segment descriptions 4 www.Office2go.dk
Positioning Positioning • Positioning is the act of designing the company’s offering and image so that they occupy a meaningful and distinct competitive position in the target customers minds – Kotler 1997 • Companies >< brands What is needed to create a winning position ? 5 www.Office2go.dk
Positioning • Hvilke differentierings- kriterier er relevante • Hvilke er de vigtigste for det valgte segments forbrugere 6 www.Office2go.dk
Positional strategy – how can it help us?  Which position in the competitive marketplace do we have today.  Which position do we want tomorrow.  How do we create an perceptual position map  Which criteria do we use for the axes 7 www.Office2go.dk
How do we build a sustainable advantage ?  Build Barriers: • Physical: Price leader, superior quality, concession, monopoly • Perceptual: Brand value, design perception , Consumer orientation  Move position • Find a more attractive position – segment value, less competition, lower cost, easier to differentiate etc. 8 www.Office2go.dk
Winning positioning Create a monopoly! – This is done by differentiating their products/brands from other companies • Differentiation criteria should meet following criteria: 1. Importance 2. Distinctive and pre-emptive 3. Superior 4. Communicable 5. Affordable 6. Profitable 9 www.Office2go.dk
Position risk and error Under-positioning: When customers only have a vague idea about the company or its products and don’t perceive anything about it. Over-positioning: When customers have a to narrow understanding of the company’s product or brand. Confused positioning: When a company frequently changes and contradictory messages. Doubtful positioning: When the claims made for the company, brand or product is not accepted, whether or not it is true 10 www.Office2go.dk
Positional strategy – Markops 11 www.Office2go.dk
Positional strategy – Markops 12 www.Office2go.dk
Positional strategy – Markops 13 www.Office2go.dk
Positional strategy – Markops 14 www.Office2go.dk
Positional strategy – Markops 15 www.Office2go.dk
Positioning and Segmentation by President Bush 16 www.Office2go.dk
Market segmentation and target marketing Market Segmentation is the process by which a market is divided into distinct subsets of customers with similar needs and characteristics that lead them to respond in similar ways. Target Marketing requires evaluating the relative attractiveness of various segments – in terms of market potential, growth rate, competitive intensity etc. and the firms capabilities to deliver what each segments wants. This is in chapter 10 which is not in the syllabus this year. 17 www.Office2go.dk
Why is segmentation important 1. Increase in competition • Information technology • Transportation cost are reduced • Markets don’t develop in the same speed anymore • Usage of Brands for line extensions: Easy jet 2. Social and economic forces • Increase in disposable income • Higher education • Easier access to information 3. Trend toward microsegmentation • New technology • Unit cost down 18 www.Office2go.dk
Consumer Segmentation 19 www.Office2go.dk
Segmentation and target marketing process • Identify a homogenous segment that differ from other segments and specify criteria that define the segment • Determine segment size and potential – Financial figures in measurable characteristics • Check if the segment can be isolated from the remainder of the market. • Visualize the market for better understanding • Prioritize the segments • Target the segment or segments that you want to concur (target marketing) “The critical issue is to find an appropriate segmentation scheme that will facilitate target marketing, product positioning, and formulation and successful marketing strategies and programs” 20 www.Office2go.dk
Segmentation in homogeneous and heterogeneous markets Are markets homogeneous or heterogeneous? It is all in the mind of the customer !!!!! homogeneous heterogeneous Water Tap water Bottled water Tele communication 2G phoning 3G, “Blackberry”, IP- Phoning, skype Electricity Yes Or…….. Shipping It’s a container Speed, delivery, security White wall paint Yes Coverage, drying time, gloss 21 www.Office2go.dk
How do we find these homogenous customer groups • Demographic segmentation •To define the target market • Geographic segmentation •To create a new view of the market • Behavioral segmentation •To position the product • Psychographic segmentation •To better communicate product • Individual segmentation attributes • Motivational segmentation 22 www.Office2go.dk
Is it possible to categories homogeneous customer segments ? • Before 1975: Demographic • 1975 -1995: Physiographic (lifestyle): VALS – RISK • 1995 - 2000: Minerva – segmenting • 2000 -> Motivational segmentation in the post-modernistic world and microsegmentation 23 www.Office2go.dk
Demographic segmentation • Age • Sex • Consumer life cycle • Income • Occupation • Education • Events • Race and ethical origin • Subcultures 24 www.Office2go.dk
Psychographic segmentation VALS 2 • The Values and Lifestyles System • Three Self-Orientations: – Principle orientation: Guided by a belief system – Status orientation: Guided by opinions of peers – Action orientation: Desire to impact the world around them • VALS Groups: - Actualizes (Innovators) – Successful consumers - Believers – have strong principles and favor proven with many resources, but are concerned with social issues brands and are open to change. - Fulfilleds – Satisfied, reflective and comfortable, - Strivers – Like achievers, but with fewer resources. practical and value functionality They are concerned about the approval of others - Achievers – Career-oriented and prefer predictability - Makers – Action oriented and tend to focus their over risk or self discovery energies on self-sufficiency and they will often repair their things themselves - Experiences – Are impulse, young and enjoy offbeat - Strugglers – Concerned of meeting the needs of the or risky experience moment….. 25 www.Office2go.dk
VALS 2 Segmentation System 26 www.Office2go.dk
VALS 2 Segmentation System Segment Lifestyle Characteristics Psychological Characteristics Consumer Characteristics Optimistic Successful, sophisticated Enjoy the "finer things" Self-confident Value personal growth Receptive to new products, technologies, Involved Wide intellectual interests distribution. Outgoing Innovators (8% of pop.) Varied leisure activities Skeptical of advertising Growth oriented Well informed, concerned with social issues Frequent readers of a wide variety of Open to change Highly social publications <established & emerging leaders in business & Politically very active Light TV viewers government> Little interest in image or prestige Mature Moderately active in community and politics Above average consumers of products for the Satisfied Leisure centers on home home Reflective Thinkers (11% of pop.) Value education & travel Like educational and public affairs Open-minded Health conscious programming on TV Intrinsically motivated Politically moderate and tolerant Read widely and often Value order, knowledge, and responsibility Look for value & durability Lives center on career & famly Moderate Attracted to premium products Have formal social relations Goal oriented Prime target for a variety of products Avoid excess change or stimulation Achievers (13% of pop.) Conventional Average TV watchers May emphasize work at the expense of Deliberate Read business, news, and self-help recreation In control publications Politically conservative Like the new, offbeat, and risky Extraverted Follow fashion and fads Like exercise, socializing, sports, and outdoors Unconventional Spend much of disposable income on Concerned about image Active socializing Experiencers (12% of pop.) Unconforming, but admire wealth, power, and Impetuous Buy on impulse fame Energetic Attend to advertising Politically apathetic Enthusiastic and impulsive Listen to rock music Buy American Respect rules and trust authority figures Traditional Slow to change habits Enjoy settled, comfortable, predictable existence Conforming Look for bargains Believers (16% of pop.) Socialize within family and established groups Cautious Watch TV more than average Politically conservative Moralistic 27 Read retirement, home and garden, and Reasonably well informed Settled general interest magazines www.Office2go.dk
VALS 2 Segmentation System Segment Lifestyle Characteristics Psychological Characteristics Consumer Characteristics Narrow interests Image conscious Easily bored Dissatisfied Limited discretionary income, but carry credit Somewhat isolated Unsure balances Strivers (13% of pop.) Look to peer group for motivation and Alienated Spend on clothing and personal care approval Impulsive products Unconcerned about health and nutrition Approval seeking Prefer TV to reading Politically apathetic Enjoy outdoors Shop for comfort, durability, value Practical Prefer "hands on" activities Unimpressed by luxuries Self-sufficient Spend leisure with family and close friends Buy the basics Makers (13% of pop.) Constructive Avoid joining organizations except unions Listen to radio Committed Distrust politicians, foreigners, and big Read auto, home mechanics, fishing, Satisfied business outdoors magazines Limited interests and activities Powerless Brand loyal Prime concerns are safety and security Narrowly focused Use coupons and watch for sales Survivors (14% of pop.) Burdened with health problems Risk averse Trust advertising Conservative and traditional Burdened Watch TV often Rely on organized religion Conservative Read tabloids and women's magazines 28 www.Office2go.dk
Behavioral segmentation Minerva (eller Kompas) Minerva-segmenteringen af Henrik Dahl opdeler forbrugerne i livsstils-segmenter som vist i figuren, hvor ordinaten i diagrammet skiller mellem det moderne og det traditionelle, men abscissen deler op mellem det fællesskabsorienterede og det individorienterede. 25 % 25 % 10 % 20 % 20 % 29 www.Office2go.dk
Minerva Engageret aktivitet: Selvtillid og forbrug: • Kvinder 40-49 • Mænd 20-39 • Stærkt gruppe orienteret • høj indk. & udd • Grønt værdisæt • KBH • Kultur og dokumentar program • Venstre og kons • SF & Rad. venstre • Teater, biograf • Ferie: storby & ski 25 % 25 % •Venste & Lib. Aliance 10 % Tradition, familie og det 20 % 20 % Stabilitet, tradition: nær miljø: • Mænd 15-19 år • Kvinde +50 • Arb. For at holde fri • Små byer & Landet • Ekstra bladet • ”den lille mand” • Følger Sport på TV • Mådehold & nøjsomhed • Rejser til Thailand og pakke • Højt medieforbrug – TV rejser • DF & Socialdemokratiet • DF, Fremskridtspartiel, Venstre, kons. 30 www.Office2go.dk
Is it possible to categories homogeneous customer segments ? • Before 1975: Demographics • 1975 - 1995: Psychographics: Vals • 1995 - 2000: Behavioral: Minerva • 2000 -> Motivational segmentation in the post-modernistic world and microsegmentation Mere heterogenitet, mindre homogenitet Årsagen til den begrænsede præcision er i og for sig enkel at forklare. Vi - forbrugerne - er mere og mere os selv. Vi har råd til (i hvert fald meget mere end tidligere) at tilfredsstille vores egne mindste ønsker og tilbøjeligheder. Vi kan stadig inddeles i forholdsvis homogene grupper med hensyn til specifikke karakteristika. Men dels bliver fællestrækkene færre, dels bliver grupperne mindre og mindre. Vi motiveres af forskellige ting på forskellige tidspunkter af døgnet, måneden, året og livet – og segmenteringen går derfor i retning af hvad der motiverer os til at købe en bestemt vare eller service 31 www.Office2go.dk
Den postmodernistiske æra Eksempler: • Situationsbestemt forbrug (Institut for fremtidsforskning 2003) • Her tager mennesket ikke udgangspunkt i sig selv og den type man tilhører, men mere i den situation som man står i og den rolle man har i situationen. • Lad os kigge på et godt eksempel ØL! 32 www.Office2go.dk
Eksempel: øl og det situationsbestemte forbrug 33 www.Office2go.dk
Den postmodernistiske æra Eksempler: • Situationsbestemt forbrug (Institut for fremtidsforskning 2003) • Her tager mennesket ikke udgangspunkt i sig selv og den type man tilhører, men mere i den situation som man står i og den rolle man har i situationen. • DA segmenterne er situationsbestemte er det vanskeligt at lave homogene uafhængige grupper, da grupperne hele tiden bevæger sig! • CUBEical Thinking (Henrik Andersen & Thomas Ritter) • Her arbejdes med tre dimensioner: Kundetyper, Roller og Scener: • Kundetyper omfatter forbrugernes værdier og adfærd • Roller ses i forhold til andre mennesker og kan skifte flere gange om dagen • Scener er de fysiske forhold der giver anledning til et behov. Her arbejdes med Roller og Scener sammen med Kundetyper 34 www.Office2go.dk
Individual segmentation • Cellestørrelse: 100 * 100 meter • Antal celler I DK: 413.092 • Antal boligenheder: 2.661.210 • Antal forbrugere: 5.273.095 (99,85 % af befolkningen) • Antal livsstilstyper: 29 • Bygget på tilgængelig statistik Geomatic inddeler den danske befolkning i 29 forskellige typer, som beskriver segmenter af konsumenter og forbrugs- mønstre. Geomatic finder de områder hvor der er flest af de relevante adresser i klynger af 150, 100, 50 og helt ned til 20 husstande • Eks: Venstre, ISO, 35 www.Office2go.dk
Segmentation Kilde: Henrik Andersen & Thomas Ritter 36 www.Office2go.dk
Coffee break 37 www.Office2go.dk
Segmenting business markets 1. Background company characteristics • Industry type • Company size • Customer location • Company technology • Customer capabilities • Purchasing organization • Power structure 2. Attitudinal characteristics 3. Behavioral characteristics 38 www.Office2go.dk
Attitudional characteristics Gatekeeper Infuenten Bruger • Buyer – seller similarity • Buyer motivation • Buyer risk perception Beslutningstageren Indkøberen 39 www.Office2go.dk
Behavioral characteristics Can we predict our competitors moves? • Laid-back competitor: – TDC when Telmore was introduced • The selective competitor: – Kodak reacted when Fuji Film chance prices but not when digital cameras where introduced • The Tiger competition – P&G products • The Stochastic competitor – Typically small businesses without a formal marketing department 40 www.Office2go.dk
Demografisk Segmentering: 70038 70000 Office2go primære segment er virksomheder 60000 mellem 2-40 ansatte. Sekundært 40-200 ansatte 50000 40000 Antal ansatte 30000 20000 10867 10000 3818 2234 1344 1287 415 299 199 381 106 85 0 2 - 10 11 - 20 21 - 30 31 - 40 41 - 60 61 - 80 80 - 100 100 - 120 - 140 - 160 - 180 - 41 120 140 160 180 200 Antal ansatte www.Office2go.dk
Adfærds segmentering: Proces udvikling Store virksomheder: over 200 ansatte. Ca 1.000 Konsulenter Enkelthed Mellemstore virksomheder: 40 – 200 ansatte: 4.115 Små virksomheder: 2 – 40 ansatte: 87.000 Nystartede Virksomheder: ca 0 Pris 25.000 42 www.Office2go.dk
Attitudional characteristics Gatekeeper Infuenten Bruger Beslutningstageren Indkøberen 43 www.Office2go.dk
Target markets 44 www.Office2go.dk
A film about target marketing 45 www.Office2go.dk
Hvorfor er target marketing vigtigt: Omsætning og indtjening ”head & tail” % (kr) Oms 100% 82,6% Kunder 10 20 30 60 150 DB3 46 www.Office2go.dk
Market target model This model is adapted from Derek F. Abell’s work with segmentation. M arket segmentation The market can be divided into customers and products. How a homogeneous group of customers require products to cover their xx needs and what are the size of the different Product (need) segment. xx Identify a homogenous segments that differ from other segments and specify criteria that xx define the segment. This could be by demographic, geographic, behavioral, lifestyle, social, product and customer needs xx xx xx xx xx We also need to find which products that are Homogeneous segments of customers relevant to the market: 9 •The attractiveness is based on size, gross margin, the companies product range. • Competitive strength in the different segments 47 www.Office2go.dk
Market segmentation xx • Market size, segment size and growth rate Product (need) • Macro trends: PEST • Micro trends: Porters five forces xx • Company capabilities: Managerial, financial, employee, brand, R&D, manufacturing etc • Key drivers of consumers xx Homogeneous segments xx xx xx xx xx Homogeneous segments of customers 48 www.Office2go.dk
An example 49 www.Office2go.dk
Market – growth 2003 –> 2004 Private- Large- Local - Private- Prof. /Large Housing houses contractor Contractor/ industry housing association +(sommer Carpenter association houses) Renovation New Building Large- Local - Private- Prof. /Large Housing Private- contractor Contractor/ industry housing association houses Carpenter association +(sommer houses) 50 www.Office2go.dk
Market value Total value 5.405 mio kr. – 2003 data (Source: Byggemateriale Industrien: BI, maj 2004) 26% 74% Private- Large- Local - Private- Prof. /Large Housing houses contractor Contractor/ industry housing association +(sommer Carpenter association houses) 9,5% - 513 mkr. Renovation 3,5% - 189 mkr. 7% - 378 mkr. 2% - 108 mkr. 7% - 378 mkr. 32,4% 3% - 162 mkr. 21,0% - 1.135 mkr. 19% - 1.027 mkr. 13% - 703 mkr. 6% - 324 mkr. 3% - 162 mkr. 6% - 324 mkr. New building 67,7% Facts Est. Large- Local - Private- Prof. /Large Housing Private- contractor Contractor/ industry housing association houses Carpenter association +(sommer houses) 51 44% 56% www.Office2go.dk
Market Growth Growth 2003 –> 2004 (Source: Byggemateriale Industrien: BI, maj 2004) 26% 74% Private- Large- Local - Private- Prof. /Large Housing houses contractor Contractor/ industry housing association +(sommer Carpenter association houses) Renovation 03/02: Turn/growth. -18,3% 03/02:Turn/growth. +10,2% 128 Mkr 353 Mkr 9,5% 3,5% 32,4% 04/03: Turn/growth. +5,2% 04/03: Turn/growth. +4,7% 7% 3% 7% 2% +4,8% 05/04: Turn/growth. +8,1% 05/04: Turn/growth. +2,2% 03/02: Turn/growth: -18,7% 03/02: Turn/growth: +6,5% New building 450 Mkr 570 Mkr 04/03: Turn/growth: -3,2% 04/03: Turn/growth: +3,4% 22,5% 05/04: Turn/growth. +3,6% 4,5% 05/04: Turn/growth. -3,2% 19% 13% 67,7% 3% 6% +0,5% Facts Est. Large- Local - Private- Prof. /Large Housing Private- contractor Contractor/ industry housing association houses Carpenter association +(sommer houses) 52 44% 56% www.Office2go.dk
Prioritizing of segments M arket Grow th Grow t h 2003 –> 2004 (Source: Byggemat eriale Indust rien: BI, maj 2004) 26% 74% Private- Large- Local - Private- Prof. / Large Housing houses contractor Contractor/ industry housing association +(sommer Carpenter association houses) Renovation 03/ 02: Turn/grow th. -18,3% 03/ 02:Turn/ grow th. +10,2% 128 M kr 353 M kr 9,5% 3,5% 32,4% 04/ 03: Turn/ grow th. +5,2% 04/ 03: Turn/ grow th. +4,7% 7% 3% 7% 2% +4,8% 05/ 04: Turn/ grow th. +4,1% 05/ 04: Turn/ grow th. +2,2% New building 03/ 02: Turn/grow th: -18,7% 450 M kr 04/ 03: Turn/ grow th: -3,2% 03/ 02: Turn/grow th: +6,5% 570 M kr 04/ 03: Turn/ grow th: +3,4% High 22,5% 05/ 04: Turn/ grow th. +4,9% 4,5% 05/ 04: Turn/ grow th. +3,2% 67,7% 19% 13% 3% 6% +0,5% Fact s Est . Large- Local - Private- Prof. / Large Housing Private- Maintenance Invest contractor Contractor/ industry housing association houses Carpenter association +(sommer houses) 12 44% 56% Company’s comp. position Company’s comp. position Seg1 • Capabilities and resources % af CM2 • Key driver 1 • Key driver 2 • Key driver 3 Leave Evaluate (relative compared to the competitors and documented through value curves) Seg3 % af CM2 Market attractiveness • Profitability Seg2 % af CM2 • Growth (short vs long-term) • Segment size Low Market attractiveness High 53 www.Office2go.dk
Market targeting xx Product (need) Single segment concentration xx “Porsche sport scars” xx xx xx xx xx xx Homogeneous segments of customers 54 www.Office2go.dk
Market targeting xx Product (need) Selective specialization xx “DR radio” xx xx xx xx xx xx Homogeneous segments of customers 55 www.Office2go.dk
Market targeting xx Product (need) Product specialization “Nikon camera” xx xx xx xx xx xx xx Homogeneous segments of customers 56 www.Office2go.dk
Market targeting xx Product (need) Market specialization xx “Mange prod til en kundegruppe” xx xx xx xx xx xx Homogeneous segments of customers 57 www.Office2go.dk
Market targeting xx Product (need) xx Full market Coverage “IBM” xx xx xx xx xx xx Homogeneous segments of customers 58 www.Office2go.dk
How do w e find these homogenous Segmentation process • Demographic segment at ion customer groups • To def ine t he t arget market • Geographic segment at ion • To creat e a new view of t he • Behavioral segment at ion market • Psychographic segment at ion • To posit ion t he product • Individual segment at ion • To bet t er communicat e product • Identify a homogenous segment that differ at t ribut es • M otivat ional segment at ion from other segments and specify criteria that define the segment • Determine segment size and potential 9 M arket Grow th – Financial figures Grow t h 2003 –> 2004 (Source: Byggemat eriale Indust rien: BI, maj 2004) 26% 74% Private- • Visualize the market for better understanding Large- Local - Private- Prof. /Large Housing houses contractor Contractor/ industry housing association +(sommer Carpenter association houses) Renovation 03/ 02: Turn/ growth. -18,3% 03/ 02:Turn/ growth. +10,2% 128 Mkr 353 Mkr 9,5% 3,5% 32,4% • Prioritize the segments 04/ 03: Turn/ grow th. +5,2% 04/ 03: Turn/ grow th. +4,7% 7% 2% 3% 7% +4,8% 05/ 04: Turn/ growth. +8,1% 05/ 04: Turn/ growth. +2,2% • Target the segment or segments that you 03/ 02: Turn/ growth: -18,7% 03/ 02: Turn/ growth: +6,5% New building 450 Mkr 570 Mkr 04/ 03: Turn/ grow th: -3,2% 04/ 03: Turn/ grow th: +3,4% 22,5% 05/ 04: Turn/ growth. +3,6% 4,5% 05/ 04: Turn/ growth. -3,2% 67,7% 19% 13% 3% 6% want to concur (target marketing) +0,5% Fact s Est . Large- Local - Private- Prof. /Large Housing Private- contractor Contractor/ industry housing association houses Carpenter association +(sommer houses) 25 44% 56% Prioritizing of segments M arket targeting Large- contractor Local - Contractor/ M arket Grow th Grow t h 2003 –> 2004 (Source: Byggemateriale Industrien: BI, maj 26% Private- industry Prof. / Large housing 74% Housing association 2004) Private- houses +(sommer houses) Carpenter association Renovation 03/02: Turn/growth. -18,3% 03/02:Turn/growth. +10,2% 128 M kr 353 M kr 9,5% 3,5% 32,4% 04/ 03: Turn/ grow th. +5,2% 04/ 03: Turn/ grow th. +4,7% 7% 3% 7% 2% +4,8% 05/04: Turn/growth. +4,1% 05/04: Turn/growth. +2,2% New building 03/02: Turn/growth: -18,7% 450 M kr 04/ 03: Turn/ grow th: -3,2% 03/02: Turn/growth: +6,5% 570 M kr 04/ 03: Turn/ grow th: +3,4% High xx 22,5% 05/04: Turn/growth. +4,9% 05/04: Turn/growth. +3,2% 4,5% 67,7% 19% 13% 3% 6% +0,5% Facts Product (need) Est . Large- Local - Private- Prof. / Large Housing Private- M aintenance Invest contractor Contractor/ industry housing association houses Carpenter association +(sommer houses) 12 44% 56% Company’s comp. position Company’s comp. position Seg1 Single segment concent rat ion • Capabilities and resources xx % af CM 2 “ Porsche sport scars” • Key driver 1 • Key driver 2 • Key driver 3 Evaluate xx Leave (relat ive compared to the compet it ors and document ed through value curves) Seg3 % af CM 2 M arket attractiveness Seg2 xx • Prof it abilit y % af CM 2 • Grow t h (short vs long-t erm) xx xx xx xx • Segment size Low M arket attractiveness High 59 Homogeneous segments of customers www.Office2go.dk 28 26
Case Week 43 60 www.Office2go.dk
Market segmentation modal M arket segmentation The market can be divided into customers and products. How a xx homogeneous group of customers Product (need) require products to cover their needs and what are the size of the xx different segment. • The attractiveness is based on xx size, gross margin, the companies product range. xx xx xx xx xx • Competitive strength in the Homogeneous segments of customers different segments 9 61 www.Office2go.dk
Nothing more for today 62 www.Office2go.dk

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Cbs positioning & segmentation

  • 1.
    Marketing strategy andplanning Positioning, market segmentation and target marketing Week 39 Jacob Holm Jacob.k.holm@gmail.com Tlf: 24 42 11 32 www.office2go.dk 1
  • 2.
    The marketing managementprocess Part 1:Marketing Strategy • Market –led strategic management – chapter 1 • Strategig marketing plannng Part 2: Competitive market analysis • The changing market environment – chapter 3 • Customer analysis – chapter 4 • Competitor analysis - chapter5 • Understanding the organizational resource base – chapter 6 • Forecasting future demand and market requirements – chapter 7 Part 3: Identifying current and future competitive positions • Segmentation and positioning principles – chapter 8 • Segmentation and positioning research – chapter 9 • Selecting target markets– chapter 10 Part 4: Competitive position strategies • Segmentation and positioning principles – chapter 11 • Competing through the new marketing mix – chapter 12 •Competing trough innovation– chapter 13 • Competing through superior service and customer relationship – chapter 14 Part 5: Implementing the strategy • Strategic customer management – chapter 15 • Strategic alliances and network – chapter 16 2 • CSR – chapter 18 www.Office2go.dk
  • 3.
    Today subject 1. Positioning • A further discussion of the subject 2. Segmentation • Consumer markets • Business markets • Case: Office2go 3. Target marketing 3 www.Office2go.dk
  • 4.
    Positioning >< segmentation Competitive positioning: Identifying the positioning of competitors to develop our own competitive strategy Market segmentation: Identifying the most productive bases for dividing a market identifying the customers in different segments and develop segment descriptions 4 www.Office2go.dk
  • 5.
    Positioning Positioning • Positioning is the act of designing the company’s offering and image so that they occupy a meaningful and distinct competitive position in the target customers minds – Kotler 1997 • Companies >< brands What is needed to create a winning position ? 5 www.Office2go.dk
  • 6.
    Positioning • Hvilke differentierings- kriterier er relevante • Hvilke er de vigtigste for det valgte segments forbrugere 6 www.Office2go.dk
  • 7.
    Positional strategy –how can it help us?  Which position in the competitive marketplace do we have today.  Which position do we want tomorrow.  How do we create an perceptual position map  Which criteria do we use for the axes 7 www.Office2go.dk
  • 8.
    How do webuild a sustainable advantage ?  Build Barriers: • Physical: Price leader, superior quality, concession, monopoly • Perceptual: Brand value, design perception , Consumer orientation  Move position • Find a more attractive position – segment value, less competition, lower cost, easier to differentiate etc. 8 www.Office2go.dk
  • 9.
    Winning positioning Create a monopoly! – This is done by differentiating their products/brands from other companies • Differentiation criteria should meet following criteria: 1. Importance 2. Distinctive and pre-emptive 3. Superior 4. Communicable 5. Affordable 6. Profitable 9 www.Office2go.dk
  • 10.
    Position risk anderror Under-positioning: When customers only have a vague idea about the company or its products and don’t perceive anything about it. Over-positioning: When customers have a to narrow understanding of the company’s product or brand. Confused positioning: When a company frequently changes and contradictory messages. Doubtful positioning: When the claims made for the company, brand or product is not accepted, whether or not it is true 10 www.Office2go.dk
  • 11.
    Positional strategy –Markops 11 www.Office2go.dk
  • 12.
    Positional strategy –Markops 12 www.Office2go.dk
  • 13.
    Positional strategy –Markops 13 www.Office2go.dk
  • 14.
    Positional strategy –Markops 14 www.Office2go.dk
  • 15.
    Positional strategy –Markops 15 www.Office2go.dk
  • 16.
    Positioning and Segmentationby President Bush 16 www.Office2go.dk
  • 17.
    Market segmentation andtarget marketing Market Segmentation is the process by which a market is divided into distinct subsets of customers with similar needs and characteristics that lead them to respond in similar ways. Target Marketing requires evaluating the relative attractiveness of various segments – in terms of market potential, growth rate, competitive intensity etc. and the firms capabilities to deliver what each segments wants. This is in chapter 10 which is not in the syllabus this year. 17 www.Office2go.dk
  • 18.
    Why is segmentationimportant 1. Increase in competition • Information technology • Transportation cost are reduced • Markets don’t develop in the same speed anymore • Usage of Brands for line extensions: Easy jet 2. Social and economic forces • Increase in disposable income • Higher education • Easier access to information 3. Trend toward microsegmentation • New technology • Unit cost down 18 www.Office2go.dk
  • 19.
    Consumer Segmentation 19 www.Office2go.dk
  • 20.
    Segmentation and targetmarketing process • Identify a homogenous segment that differ from other segments and specify criteria that define the segment • Determine segment size and potential – Financial figures in measurable characteristics • Check if the segment can be isolated from the remainder of the market. • Visualize the market for better understanding • Prioritize the segments • Target the segment or segments that you want to concur (target marketing) “The critical issue is to find an appropriate segmentation scheme that will facilitate target marketing, product positioning, and formulation and successful marketing strategies and programs” 20 www.Office2go.dk
  • 21.
    Segmentation in homogeneousand heterogeneous markets Are markets homogeneous or heterogeneous? It is all in the mind of the customer !!!!! homogeneous heterogeneous Water Tap water Bottled water Tele communication 2G phoning 3G, “Blackberry”, IP- Phoning, skype Electricity Yes Or…….. Shipping It’s a container Speed, delivery, security White wall paint Yes Coverage, drying time, gloss 21 www.Office2go.dk
  • 22.
    How do wefind these homogenous customer groups • Demographic segmentation •To define the target market • Geographic segmentation •To create a new view of the market • Behavioral segmentation •To position the product • Psychographic segmentation •To better communicate product • Individual segmentation attributes • Motivational segmentation 22 www.Office2go.dk
  • 23.
    Is it possibleto categories homogeneous customer segments ? • Before 1975: Demographic • 1975 -1995: Physiographic (lifestyle): VALS – RISK • 1995 - 2000: Minerva – segmenting • 2000 -> Motivational segmentation in the post-modernistic world and microsegmentation 23 www.Office2go.dk
  • 24.
    Demographic segmentation • Age • Sex • Consumer life cycle • Income • Occupation • Education • Events • Race and ethical origin • Subcultures 24 www.Office2go.dk
  • 25.
    Psychographic segmentation VALS 2 • The Values and Lifestyles System • Three Self-Orientations: – Principle orientation: Guided by a belief system – Status orientation: Guided by opinions of peers – Action orientation: Desire to impact the world around them • VALS Groups: - Actualizes (Innovators) – Successful consumers - Believers – have strong principles and favor proven with many resources, but are concerned with social issues brands and are open to change. - Fulfilleds – Satisfied, reflective and comfortable, - Strivers – Like achievers, but with fewer resources. practical and value functionality They are concerned about the approval of others - Achievers – Career-oriented and prefer predictability - Makers – Action oriented and tend to focus their over risk or self discovery energies on self-sufficiency and they will often repair their things themselves - Experiences – Are impulse, young and enjoy offbeat - Strugglers – Concerned of meeting the needs of the or risky experience moment….. 25 www.Office2go.dk
  • 26.
    VALS 2 SegmentationSystem 26 www.Office2go.dk
  • 27.
    VALS 2 SegmentationSystem Segment Lifestyle Characteristics Psychological Characteristics Consumer Characteristics Optimistic Successful, sophisticated Enjoy the "finer things" Self-confident Value personal growth Receptive to new products, technologies, Involved Wide intellectual interests distribution. Outgoing Innovators (8% of pop.) Varied leisure activities Skeptical of advertising Growth oriented Well informed, concerned with social issues Frequent readers of a wide variety of Open to change Highly social publications <established & emerging leaders in business & Politically very active Light TV viewers government> Little interest in image or prestige Mature Moderately active in community and politics Above average consumers of products for the Satisfied Leisure centers on home home Reflective Thinkers (11% of pop.) Value education & travel Like educational and public affairs Open-minded Health conscious programming on TV Intrinsically motivated Politically moderate and tolerant Read widely and often Value order, knowledge, and responsibility Look for value & durability Lives center on career & famly Moderate Attracted to premium products Have formal social relations Goal oriented Prime target for a variety of products Avoid excess change or stimulation Achievers (13% of pop.) Conventional Average TV watchers May emphasize work at the expense of Deliberate Read business, news, and self-help recreation In control publications Politically conservative Like the new, offbeat, and risky Extraverted Follow fashion and fads Like exercise, socializing, sports, and outdoors Unconventional Spend much of disposable income on Concerned about image Active socializing Experiencers (12% of pop.) Unconforming, but admire wealth, power, and Impetuous Buy on impulse fame Energetic Attend to advertising Politically apathetic Enthusiastic and impulsive Listen to rock music Buy American Respect rules and trust authority figures Traditional Slow to change habits Enjoy settled, comfortable, predictable existence Conforming Look for bargains Believers (16% of pop.) Socialize within family and established groups Cautious Watch TV more than average Politically conservative Moralistic 27 Read retirement, home and garden, and Reasonably well informed Settled general interest magazines www.Office2go.dk
  • 28.
    VALS 2 SegmentationSystem Segment Lifestyle Characteristics Psychological Characteristics Consumer Characteristics Narrow interests Image conscious Easily bored Dissatisfied Limited discretionary income, but carry credit Somewhat isolated Unsure balances Strivers (13% of pop.) Look to peer group for motivation and Alienated Spend on clothing and personal care approval Impulsive products Unconcerned about health and nutrition Approval seeking Prefer TV to reading Politically apathetic Enjoy outdoors Shop for comfort, durability, value Practical Prefer "hands on" activities Unimpressed by luxuries Self-sufficient Spend leisure with family and close friends Buy the basics Makers (13% of pop.) Constructive Avoid joining organizations except unions Listen to radio Committed Distrust politicians, foreigners, and big Read auto, home mechanics, fishing, Satisfied business outdoors magazines Limited interests and activities Powerless Brand loyal Prime concerns are safety and security Narrowly focused Use coupons and watch for sales Survivors (14% of pop.) Burdened with health problems Risk averse Trust advertising Conservative and traditional Burdened Watch TV often Rely on organized religion Conservative Read tabloids and women's magazines 28 www.Office2go.dk
  • 29.
    Behavioral segmentation Minerva (eller Kompas) Minerva-segmenteringen af Henrik Dahl opdeler forbrugerne i livsstils-segmenter som vist i figuren, hvor ordinaten i diagrammet skiller mellem det moderne og det traditionelle, men abscissen deler op mellem det fællesskabsorienterede og det individorienterede. 25 % 25 % 10 % 20 % 20 % 29 www.Office2go.dk
  • 30.
    Minerva Engageret aktivitet: Selvtillid og forbrug: • Kvinder 40-49 • Mænd 20-39 • Stærkt gruppe orienteret • høj indk. & udd • Grønt værdisæt • KBH • Kultur og dokumentar program • Venstre og kons • SF & Rad. venstre • Teater, biograf • Ferie: storby & ski 25 % 25 % •Venste & Lib. Aliance 10 % Tradition, familie og det 20 % 20 % Stabilitet, tradition: nær miljø: • Mænd 15-19 år • Kvinde +50 • Arb. For at holde fri • Små byer & Landet • Ekstra bladet • ”den lille mand” • Følger Sport på TV • Mådehold & nøjsomhed • Rejser til Thailand og pakke • Højt medieforbrug – TV rejser • DF & Socialdemokratiet • DF, Fremskridtspartiel, Venstre, kons. 30 www.Office2go.dk
  • 31.
    Is it possibleto categories homogeneous customer segments ? • Before 1975: Demographics • 1975 - 1995: Psychographics: Vals • 1995 - 2000: Behavioral: Minerva • 2000 -> Motivational segmentation in the post-modernistic world and microsegmentation Mere heterogenitet, mindre homogenitet Årsagen til den begrænsede præcision er i og for sig enkel at forklare. Vi - forbrugerne - er mere og mere os selv. Vi har råd til (i hvert fald meget mere end tidligere) at tilfredsstille vores egne mindste ønsker og tilbøjeligheder. Vi kan stadig inddeles i forholdsvis homogene grupper med hensyn til specifikke karakteristika. Men dels bliver fællestrækkene færre, dels bliver grupperne mindre og mindre. Vi motiveres af forskellige ting på forskellige tidspunkter af døgnet, måneden, året og livet – og segmenteringen går derfor i retning af hvad der motiverer os til at købe en bestemt vare eller service 31 www.Office2go.dk
  • 32.
    Den postmodernistiske æra Eksempler: • Situationsbestemt forbrug (Institut for fremtidsforskning 2003) • Her tager mennesket ikke udgangspunkt i sig selv og den type man tilhører, men mere i den situation som man står i og den rolle man har i situationen. • Lad os kigge på et godt eksempel ØL! 32 www.Office2go.dk
  • 33.
    Eksempel: øl ogdet situationsbestemte forbrug 33 www.Office2go.dk
  • 34.
    Den postmodernistiske æra Eksempler: • Situationsbestemt forbrug (Institut for fremtidsforskning 2003) • Her tager mennesket ikke udgangspunkt i sig selv og den type man tilhører, men mere i den situation som man står i og den rolle man har i situationen. • DA segmenterne er situationsbestemte er det vanskeligt at lave homogene uafhængige grupper, da grupperne hele tiden bevæger sig! • CUBEical Thinking (Henrik Andersen & Thomas Ritter) • Her arbejdes med tre dimensioner: Kundetyper, Roller og Scener: • Kundetyper omfatter forbrugernes værdier og adfærd • Roller ses i forhold til andre mennesker og kan skifte flere gange om dagen • Scener er de fysiske forhold der giver anledning til et behov. Her arbejdes med Roller og Scener sammen med Kundetyper 34 www.Office2go.dk
  • 35.
    Individual segmentation • Cellestørrelse: 100 * 100 meter • Antal celler I DK: 413.092 • Antal boligenheder: 2.661.210 • Antal forbrugere: 5.273.095 (99,85 % af befolkningen) • Antal livsstilstyper: 29 • Bygget på tilgængelig statistik Geomatic inddeler den danske befolkning i 29 forskellige typer, som beskriver segmenter af konsumenter og forbrugs- mønstre. Geomatic finder de områder hvor der er flest af de relevante adresser i klynger af 150, 100, 50 og helt ned til 20 husstande • Eks: Venstre, ISO, 35 www.Office2go.dk
  • 36.
    Segmentation Kilde: Henrik Andersen & Thomas Ritter 36 www.Office2go.dk
  • 37.
    Coffee break 37 www.Office2go.dk
  • 38.
    Segmenting business markets 1. Background company characteristics • Industry type • Company size • Customer location • Company technology • Customer capabilities • Purchasing organization • Power structure 2. Attitudinal characteristics 3. Behavioral characteristics 38 www.Office2go.dk
  • 39.
    Attitudional characteristics Gatekeeper Infuenten Bruger • Buyer – seller similarity • Buyer motivation • Buyer risk perception Beslutningstageren Indkøberen 39 www.Office2go.dk
  • 40.
    Behavioral characteristics Can we predict our competitors moves? • Laid-back competitor: – TDC when Telmore was introduced • The selective competitor: – Kodak reacted when Fuji Film chance prices but not when digital cameras where introduced • The Tiger competition – P&G products • The Stochastic competitor – Typically small businesses without a formal marketing department 40 www.Office2go.dk
  • 41.
    Demografisk Segmentering: 70038 70000 Office2go primære segment er virksomheder 60000 mellem 2-40 ansatte. Sekundært 40-200 ansatte 50000 40000 Antal ansatte 30000 20000 10867 10000 3818 2234 1344 1287 415 299 199 381 106 85 0 2 - 10 11 - 20 21 - 30 31 - 40 41 - 60 61 - 80 80 - 100 100 - 120 - 140 - 160 - 180 - 41 120 140 160 180 200 Antal ansatte www.Office2go.dk
  • 42.
    Adfærds segmentering: Proces udvikling Store virksomheder: over 200 ansatte. Ca 1.000 Konsulenter Enkelthed Mellemstore virksomheder: 40 – 200 ansatte: 4.115 Små virksomheder: 2 – 40 ansatte: 87.000 Nystartede Virksomheder: ca 0 Pris 25.000 42 www.Office2go.dk
  • 43.
    Attitudional characteristics Gatekeeper Infuenten Bruger Beslutningstageren Indkøberen 43 www.Office2go.dk
  • 44.
    Target markets 44 www.Office2go.dk
  • 45.
    A film abouttarget marketing 45 www.Office2go.dk
  • 46.
    Hvorfor er targetmarketing vigtigt: Omsætning og indtjening ”head & tail” % (kr) Oms 100% 82,6% Kunder 10 20 30 60 150 DB3 46 www.Office2go.dk
  • 47.
    Market target model This model is adapted from Derek F. Abell’s work with segmentation. M arket segmentation The market can be divided into customers and products. How a homogeneous group of customers require products to cover their xx needs and what are the size of the different Product (need) segment. xx Identify a homogenous segments that differ from other segments and specify criteria that xx define the segment. This could be by demographic, geographic, behavioral, lifestyle, social, product and customer needs xx xx xx xx xx We also need to find which products that are Homogeneous segments of customers relevant to the market: 9 •The attractiveness is based on size, gross margin, the companies product range. • Competitive strength in the different segments 47 www.Office2go.dk
  • 48.
    Market segmentation xx • Market size, segment size and growth rate Product (need) • Macro trends: PEST • Micro trends: Porters five forces xx • Company capabilities: Managerial, financial, employee, brand, R&D, manufacturing etc • Key drivers of consumers xx Homogeneous segments xx xx xx xx xx Homogeneous segments of customers 48 www.Office2go.dk
  • 49.
    An example 49 www.Office2go.dk
  • 50.
    Market – growth2003 –> 2004 Private- Large- Local - Private- Prof. /Large Housing houses contractor Contractor/ industry housing association +(sommer Carpenter association houses) Renovation New Building Large- Local - Private- Prof. /Large Housing Private- contractor Contractor/ industry housing association houses Carpenter association +(sommer houses) 50 www.Office2go.dk
  • 51.
    Market value Total value 5.405 mio kr. – 2003 data (Source: Byggemateriale Industrien: BI, maj 2004) 26% 74% Private- Large- Local - Private- Prof. /Large Housing houses contractor Contractor/ industry housing association +(sommer Carpenter association houses) 9,5% - 513 mkr. Renovation 3,5% - 189 mkr. 7% - 378 mkr. 2% - 108 mkr. 7% - 378 mkr. 32,4% 3% - 162 mkr. 21,0% - 1.135 mkr. 19% - 1.027 mkr. 13% - 703 mkr. 6% - 324 mkr. 3% - 162 mkr. 6% - 324 mkr. New building 67,7% Facts Est. Large- Local - Private- Prof. /Large Housing Private- contractor Contractor/ industry housing association houses Carpenter association +(sommer houses) 51 44% 56% www.Office2go.dk
  • 52.
    Market Growth Growth 2003 –> 2004 (Source: Byggemateriale Industrien: BI, maj 2004) 26% 74% Private- Large- Local - Private- Prof. /Large Housing houses contractor Contractor/ industry housing association +(sommer Carpenter association houses) Renovation 03/02: Turn/growth. -18,3% 03/02:Turn/growth. +10,2% 128 Mkr 353 Mkr 9,5% 3,5% 32,4% 04/03: Turn/growth. +5,2% 04/03: Turn/growth. +4,7% 7% 3% 7% 2% +4,8% 05/04: Turn/growth. +8,1% 05/04: Turn/growth. +2,2% 03/02: Turn/growth: -18,7% 03/02: Turn/growth: +6,5% New building 450 Mkr 570 Mkr 04/03: Turn/growth: -3,2% 04/03: Turn/growth: +3,4% 22,5% 05/04: Turn/growth. +3,6% 4,5% 05/04: Turn/growth. -3,2% 19% 13% 67,7% 3% 6% +0,5% Facts Est. Large- Local - Private- Prof. /Large Housing Private- contractor Contractor/ industry housing association houses Carpenter association +(sommer houses) 52 44% 56% www.Office2go.dk
  • 53.
    Prioritizing of segments M arket Grow th Grow t h 2003 –> 2004 (Source: Byggemat eriale Indust rien: BI, maj 2004) 26% 74% Private- Large- Local - Private- Prof. / Large Housing houses contractor Contractor/ industry housing association +(sommer Carpenter association houses) Renovation 03/ 02: Turn/grow th. -18,3% 03/ 02:Turn/ grow th. +10,2% 128 M kr 353 M kr 9,5% 3,5% 32,4% 04/ 03: Turn/ grow th. +5,2% 04/ 03: Turn/ grow th. +4,7% 7% 3% 7% 2% +4,8% 05/ 04: Turn/ grow th. +4,1% 05/ 04: Turn/ grow th. +2,2% New building 03/ 02: Turn/grow th: -18,7% 450 M kr 04/ 03: Turn/ grow th: -3,2% 03/ 02: Turn/grow th: +6,5% 570 M kr 04/ 03: Turn/ grow th: +3,4% High 22,5% 05/ 04: Turn/ grow th. +4,9% 4,5% 05/ 04: Turn/ grow th. +3,2% 67,7% 19% 13% 3% 6% +0,5% Fact s Est . Large- Local - Private- Prof. / Large Housing Private- Maintenance Invest contractor Contractor/ industry housing association houses Carpenter association +(sommer houses) 12 44% 56% Company’s comp. position Company’s comp. position Seg1 • Capabilities and resources % af CM2 • Key driver 1 • Key driver 2 • Key driver 3 Leave Evaluate (relative compared to the competitors and documented through value curves) Seg3 % af CM2 Market attractiveness • Profitability Seg2 % af CM2 • Growth (short vs long-term) • Segment size Low Market attractiveness High 53 www.Office2go.dk
  • 54.
    Market targeting xx Product (need) Single segment concentration xx “Porsche sport scars” xx xx xx xx xx xx Homogeneous segments of customers 54 www.Office2go.dk
  • 55.
    Market targeting xx Product (need) Selective specialization xx “DR radio” xx xx xx xx xx xx Homogeneous segments of customers 55 www.Office2go.dk
  • 56.
    Market targeting xx Product (need) Product specialization “Nikon camera” xx xx xx xx xx xx xx Homogeneous segments of customers 56 www.Office2go.dk
  • 57.
    Market targeting xx Product (need) Market specialization xx “Mange prod til en kundegruppe” xx xx xx xx xx xx Homogeneous segments of customers 57 www.Office2go.dk
  • 58.
    Market targeting xx Product (need) xx Full market Coverage “IBM” xx xx xx xx xx xx Homogeneous segments of customers 58 www.Office2go.dk
  • 59.
    How do we find these homogenous Segmentation process • Demographic segment at ion customer groups • To def ine t he t arget market • Geographic segment at ion • To creat e a new view of t he • Behavioral segment at ion market • Psychographic segment at ion • To posit ion t he product • Individual segment at ion • To bet t er communicat e product • Identify a homogenous segment that differ at t ribut es • M otivat ional segment at ion from other segments and specify criteria that define the segment • Determine segment size and potential 9 M arket Grow th – Financial figures Grow t h 2003 –> 2004 (Source: Byggemat eriale Indust rien: BI, maj 2004) 26% 74% Private- • Visualize the market for better understanding Large- Local - Private- Prof. /Large Housing houses contractor Contractor/ industry housing association +(sommer Carpenter association houses) Renovation 03/ 02: Turn/ growth. -18,3% 03/ 02:Turn/ growth. +10,2% 128 Mkr 353 Mkr 9,5% 3,5% 32,4% • Prioritize the segments 04/ 03: Turn/ grow th. +5,2% 04/ 03: Turn/ grow th. +4,7% 7% 2% 3% 7% +4,8% 05/ 04: Turn/ growth. +8,1% 05/ 04: Turn/ growth. +2,2% • Target the segment or segments that you 03/ 02: Turn/ growth: -18,7% 03/ 02: Turn/ growth: +6,5% New building 450 Mkr 570 Mkr 04/ 03: Turn/ grow th: -3,2% 04/ 03: Turn/ grow th: +3,4% 22,5% 05/ 04: Turn/ growth. +3,6% 4,5% 05/ 04: Turn/ growth. -3,2% 67,7% 19% 13% 3% 6% want to concur (target marketing) +0,5% Fact s Est . Large- Local - Private- Prof. /Large Housing Private- contractor Contractor/ industry housing association houses Carpenter association +(sommer houses) 25 44% 56% Prioritizing of segments M arket targeting Large- contractor Local - Contractor/ M arket Grow th Grow t h 2003 –> 2004 (Source: Byggemateriale Industrien: BI, maj 26% Private- industry Prof. / Large housing 74% Housing association 2004) Private- houses +(sommer houses) Carpenter association Renovation 03/02: Turn/growth. -18,3% 03/02:Turn/growth. +10,2% 128 M kr 353 M kr 9,5% 3,5% 32,4% 04/ 03: Turn/ grow th. +5,2% 04/ 03: Turn/ grow th. +4,7% 7% 3% 7% 2% +4,8% 05/04: Turn/growth. +4,1% 05/04: Turn/growth. +2,2% New building 03/02: Turn/growth: -18,7% 450 M kr 04/ 03: Turn/ grow th: -3,2% 03/02: Turn/growth: +6,5% 570 M kr 04/ 03: Turn/ grow th: +3,4% High xx 22,5% 05/04: Turn/growth. +4,9% 05/04: Turn/growth. +3,2% 4,5% 67,7% 19% 13% 3% 6% +0,5% Facts Product (need) Est . Large- Local - Private- Prof. / Large Housing Private- M aintenance Invest contractor Contractor/ industry housing association houses Carpenter association +(sommer houses) 12 44% 56% Company’s comp. position Company’s comp. position Seg1 Single segment concent rat ion • Capabilities and resources xx % af CM 2 “ Porsche sport scars” • Key driver 1 • Key driver 2 • Key driver 3 Evaluate xx Leave (relat ive compared to the compet it ors and document ed through value curves) Seg3 % af CM 2 M arket attractiveness Seg2 xx • Prof it abilit y % af CM 2 • Grow t h (short vs long-t erm) xx xx xx xx • Segment size Low M arket attractiveness High 59 Homogeneous segments of customers www.Office2go.dk 28 26
  • 60.
    Case Week 43 60 www.Office2go.dk
  • 61.
    Market segmentation modal M arket segmentation The market can be divided into customers and products. How a xx homogeneous group of customers Product (need) require products to cover their needs and what are the size of the xx different segment. • The attractiveness is based on xx size, gross margin, the companies product range. xx xx xx xx xx • Competitive strength in the Homogeneous segments of customers different segments 9 61 www.Office2go.dk
  • 62.
    Nothing more fortoday 62 www.Office2go.dk