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This document discusses segmentation, targeting, and positioning in global marketing. It covers identifying customer groups with common attributes, choosing which groups to target, segmenting those groups, and positioning brands in customers' minds. Key points include: - Market segmentation involves categorizing customer groups and countries based on attributes. - Targeting focuses marketing efforts on segments that can be reached effectively and profitably. - Positioning differentiates a brand based on attributes and benefits relative to competitors. - Demographic, psychographic, behavioral, and other variables can be used to segment markets. - Assessing market potential considers segment size, growth, competition, and compatibility with company goals.
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- 1. Global Marketing Global Edition Warren J. Keegan Mark C. Green Segmentation, Targeting, and Positioning Chapter 7 Copyright 2013, Pearson Education 8/7/2015 1 Global Marketing Warren J. Keegan Mark C. Green Global Marketing Warren J. Keegan Mark C. Green Segmentation, Targeting, and Positioning Chapter 7
- 2. Copyright 2013, Pearson Education Introduction • How to identify like groups of potential customers? • How to chose the groups to target? • How to segment those groups? • How to position the brand in the mind of the customer?
- 3. Copyright 2013, Pearson Education Market Segmentation • Represents an effort to identify and categorize groups of customers and countries according to common characteristics 77.5 million dogs are owned in the U.S. Who owns whom?
- 4. Copyright 2013, Pearson Education Targeting • The process of evaluating segments and focusing marketing efforts on a country, region, or group of people that has significant potential to respond • Focus on the segments that can be reached most effectively, efficiently, and profitably
- 5. Copyright 2013, Pearson Education Positioning • Positioning is required to differentiate the product or brand in the minds of the target market.
- 6. Copyright 2013, Pearson Education Global Market Segmentation • Defined as the process of identifying specific segments—whether they be country groups or individual consumer groups—of potential customers with homogeneous attributes who are likely to exhibit similar responses to a company’s marketing mix.
- 7. Copyright 2013, Pearson Education Contrasting Views of Global Segmentation • Conventional Wisdom – Assumes heterogeneity between countries – Assumes homogeneity within a country – Focuses on macro level of cultural differences – Relies on clustering of national markets – Less emphasis on within- country segments • Unconventional Wisdom – Assumes emergence of segments that transcend national boundaries – Recognizes existence of within-country differences – Emphasizes micro-level differences – Segments micro markets within and between countries
- 8. Copyright 2013, Pearson Education Global Market Segmentation • Demographics • Psychographics • Behavioral characteristics • Benefits sought Skiing became a sport in Norway where it was invented 4,000 years ago.
- 9. Copyright 2013, Pearson Education Demographic Segmentation • Income • Population • Age distribution • Gender • Education • Occupation What are the trends?
- 10. Copyright 2013, Pearson Education Demographic Facts and Trends • In India the number of people under the age of 14 is greater than the entire US population • In the EU, the number of consumers aged 16 and under is rapidly approaching the number of consumers aged 60-plus • Asia is home to 500 million consumers aged 16 and under • Half of Japan’s population will be age 50 or older by 2025
- 11. Copyright 2013, Pearson Education • A widening age gap exists between the older populations in the West and the large working- age populations in developing countries • In the European Union, the number of consumers aged 16 and under is rapidly approaching the number of consumers aged 60- plus • Asia is home to 500 million consumers aged 16 and under • Half of Japan’s population will be age 50 or older by 2025 Demographic Segmentation
- 12. Copyright 2013, Pearson Education Segmenting by Income and Population • Income is a valuable segmentation variable – 2/3s of world’s GNP is generated in the Triad but only 12% of the world’s population is in the Triad • Do not read into the numbers – Some services are free in developing nations so there is more purchasing power • For products with low enough price, population is a more important variable
- 13. Copyright 2013, Pearson Education Per Capita Income
- 14. Copyright 2013, Pearson Education 10 Most Populous Countries
- 15. Copyright 2013, Pearson Education Age Segmentation • Global Teens-between the ages of 12 and 19 – A group of teenagers randomly chosen from different parts of the world will share many of the same tastes • Global Elite–affluent consumers who are well traveled and have the money to spend on prestigious products with an image of exclusivity
- 16. Copyright 2013, Pearson Education Gender Segmentation • In focusing on the needs and wants of one gender, do not miss opportunities to serve the other • Companies may offer product lines for both genders – Nike, Levi Strauss
- 17. Copyright 2013, Pearson Education Psychographic Segmentation • Grouping people according to attitudes, values, and lifestyles – SRI International and VALS 2 • Porsche example – Top Guns (27%): Ambition, power, control – Elitists (24%): Old money, car is just a car – Proud Patrons (23%): Car is reward for hard work – Bon Vivants (17%): Car is for excitement, adventure – Fantasists (9%): Car is form of escape
- 18. Copyright 2013, Pearson Education Psychographic Segmentation • The Euroconsumer: – Successful Idealist–Comprises from 5% to 20% of the population; consists of persons who have achieved professional and material success while maintaining commitment to abstract or socially responsible ideals – Affluent Materialist–Status-conscious ‘up-and- comers’– many of whom are business professionals – use conspicuous consumption to communicate their success to others
- 19. Copyright 2013, Pearson Education Psychographic Segmentation • The Euroconsumer: – Comfortable Belongers • 25% to 50% of a country’s population • conservative • most comfortable with the familiar • content with the comfort of home, family, friends, and community – Disaffected Survivors • lack power and affluence • harbor little hope for upward mobility • tend to be either resentful or resigned • concentrated in high-crime urban inner city • attitudes tend to affect the rest of society
- 20. Copyright 2013, Pearson Education Psychographic Segmentation: Sony’s U.S. Consumer Segments
- 21. Copyright 2013, Pearson Education Behavior Segmentation • Focus on whether people purchase a product or not, how much, and how often they use it • User status • Law of disproportionality/Pareto’s Law–80% of a company’s revenues are accounted for by 20% of the customers
- 22. Copyright 2013, Pearson Education Benefit Segmentation • Benefit segmentation focuses on the value equation – Value=Benefits/Price • Based on understanding the problem a product solves, the benefit it offers, or the issue it addresses
- 23. Copyright 2013, Pearson Education Ethnic Segmentation • The population of many countries includes ethnic groups of significant size • Three main groups in the U.S. include African-Americans, Asian-Americans, and Hispanic Americans • Hispanic Americans – 50 million Hispanic Americans (14% of total pop.) with $978 billion annual buying power – “$1 trillion Latina” 24 million Hispanic women: 42% single, 35% HOH, 54% working
- 24. Copyright 2013, Pearson Education Assessing Market Potential • Be mindful of the pitfalls – Tendency to overstate the size and short-term attractiveness of individual country markets – The company does not want to ‘miss out’ on a strategic opportunity – Management’s network of contacts will emerge as a primary criterion for targeting
- 25. Copyright 2013, Pearson Education Assessing Market Potential • Three basic criteria: – Current size of the segment and anticipated growth potential – Potential competition – Compatibility with company’s overall objectives and the feasibility of successfully reaching the target audience
- 26. Copyright 2013, Pearson Education Current Segment Size and Growth • Is the market segment currently large enough to present a company with the opportunity to make a profit? • If the answer is ‘no,’ does it have significant growth potential to make it attractive in terms of a company’s long-term strategy?
- 27. Copyright 2013, Pearson Education Potential Competition • Is there currently strong competition in the market segment? • Is the competition vulnerable in terms of price or quality?
- 28. Copyright 2013, Pearson Education Feasibility and Compatibility • Will adaptation be required? If so, is this economically justifiable in terms of expected sales? • Will import restrictions, high tariffs, or a strong home country currency drive up the price of the product in the target market currency and effectively dampen demand?
- 29. Copyright 2013, Pearson Education Feasibility and Compatibility • Is it advisable to source locally? Would it make sense to source products in the country for export elsewhere in the region? • Is targeting a particular segment compatible with the company’s goals, brand image, or established sources of competitive advantage?
- 30. Copyright 2013, Pearson Education Framework for Selecting Target Markets • Demographic information is a starting point but not the decision factor • Product-Market must be considered – Market defined by product category • Marketing model drivers must be considered – Factors required for a business to take root and grow • Are there any enabling conditions present? – Conditions whose presence or absence will determine success of the marketing model
- 31. Copyright 2013, Pearson Education 9 Questions for Creating a Product-Market Profile 1. Who buys our product? 2. Who does not buy it? 3. What need or function does it serve? 4. Is there a market need that is not being met by current product/brand offerings? 5. What problem does our product solve? 6. What are customers buying to satisfy the need for which our product is targeted? 7. What price are they paying? 8. When is the product purchased? 9. Where is it purchased?
- 32. Copyright 2013, Pearson Education Target Market Strategy Options • Standardized global marketing – Mass marketing on a global scale – Undifferentiated target marketing – Standardized marketing mix – Minimal product adaptation – Intensive distribution – Lower production costs – Lower communication costs
- 33. Copyright 2013, Pearson Education Target Market Strategy Options • Concentrated global marketing – Niche marketing – Single segment of global market – Look for global depth rather than national breadth – Ex.: Chanel, Estee Lauder • Differentiated global marketing – Multi-segment targeting – Two or more distinct markets – Wider market coverage – Ex.: P&G markets Old Spice and Hugo Boss for Men
- 34. Copyright 2013, Pearson Education Positioning • Locating a brand in consumers’ minds over and against competitors in terms of attributes and benefits that the brand does and does not offer – Attribute or Benefit – Quality and Price – Use or User – Competition
- 35. Copyright 2013, Pearson Education Positioning Strategies • Global consumer culture positioning – Identifies the brand as a symbol of a particular global culture or segment – High-touch and high-tech products • Foreign consumer culture positioning – Associates the brand’s users, use occasions, or product origins with a foreign country or culture Beer is associated with this German’s culture; the symbol on his shirt is not German!
- 36. Copyright 2013, Pearson Education Positioning Strategies • Local consumer culture positioning – Identifies with local cultural meanings – Consumed by local people – Locally produced for local people – Used frequently for food, personal, and household nondurables – Ex.: Budweiser is identified with small-town America Clydesdale = Which Beer?
- 37. Copyright 2013, Pearson Education Looking Ahead to Chapter 8 Importing, Exporting, and Sourcing
Editor's Notes
- As noted in earlier chapters, two decades ago Professor Theodore Levitt advanced the thesis that consumers in different countries increasingly seek variety, and that the same new segments are likely to show up in multiple national markets. Thus, ethnic or regional foods such as sushi, falafel, or pizza might be in demand anywhere in the world. Levitt suggested that this trend, known variously as the pluralization of consumption and segment simultaneity, provides an opportunity for marketers to pursue one or more segments on a global scale. Authors John Micklethwait and Adrian Wooldridge sum up the situation this way: The audience for a new recording of a Michael Tippett symphony or for a nature documentary about the mating habits of flamingos may be minuscule in any one country, but round up all the Tippett and flamingo fanatics around the world, and you have attractive commercial propositions. The cheap distribution offered by the Internet will probably make these niches even more attractive financially. Global market segmentation is based on the premise that companies should attempt to identify consumers in different countries who share similar needs and desires. A. Coskun Samli has developed a useful approach to global market segmentation that compares and contrasts “conventional” versus “unconventional” wisdom. This is shown on the next slide.
- For example, conventional wisdom might assume that consumers in Europe and Latin America are interested in World Cup soccer while those in America are not. Unconventional wisdom would note that the “global jock” segment exists in many countries, including the United States. Similarly, conventional wisdom might assume that, because per capita income in India is about $820, all Indians have low incomes. Unconventional wisdom would note the presence of a higher-income, middle-class segment. As Sapna Nayak, a food analyst at Raobank India, noted recently, “The potential Indian customer base for a McDonald’s or a Subway is larger than the size of entire developed countries. The same is true of China; the average annual income of people living in eastern China is approximately $1,200. This is the equivalent to a lower-middle-income country market with 470 million people, larger than every other single country market except India.
- Today, global (multi-national) companies, and the research and advertising agencies that serve them, use market segmentation to identify, define, understand, and respond to customer wants and needs on a worldwide, rather than strictly local basis. As we have noted many times in this book, global marketers must determine whether a standardized or adapted marketing mix is required to best serve those wants and needs. By performing market segmentation, marketers can generate the insights needed to devise the most effective approach. The process of global market segmentation begins with the choice of one or more variables to use as a basis for grouping customers. This slide shows the most common segmentation categories. The following slides will discuss them more in-depth.
- By 2030, 20 percent of the U.S. population—70 million Americans—will be 65 years old or older versus 13 percent (36 million) today. America’s three main ethnic groups—African/Black Americans, Hispanic Americans, and Asian Americans—represent a combined annual buying power of $2.5 trillion. The United States is home to 28.4 million foreign-born residents with a combined income of $233 billion.
- Demographic changes can create opportunities for marketing innovation. In France, for example, two entrepreneurs began rewriting the rules of retailing years before Sam Walton founded the Wal-Mart chain. Marcel Fournier and Louis Defforey opened the first Carrefour (“crossroads”) hypermarket in 1963. At the time, France had a fragmented shop system that consisted of small, specialized stores with only about 5,000 square feet of floor space such as the boulangerie and charcuterie. The shop system was part of France’s national heritage, and shoppers developed personal relationships with a shop’s proprietor. However, time pressed, dual-parent working families had less time to stop at several stores for daily shopping. The same trend was occurring in other countries. By 1993, Carrefour SA was a global chain with $21 billion in sales and a market capitalization of $10 billion. By 2008, sales had reached $124 billion; today, Carrefour operates 9,630 stores in 32 countries. As Adrian Slywotzky has noted, it was a demographic shift that provided the opportunity for Fournier and Defforey to create a novel, customer-matched, cost-effective business design. After segmenting in terms of a single demographic variable—income—a company can reach the most affluent markets by targeting fewer than 20 nations: the European Union, North America, and Japan. By doing so, however, the marketers are not reaching almost 90 percent of the world’s population! A word of caution is in order here. Data about income (and population) have the advantage of being widely available and inexpensive to access. However, management may unconsciously “read too much” into such data. In other words, while providing some measure of market potential, such macro-level demographic data should not necessarily be used as the sole indicator of presence (or absence) of a market opportunity. This is especially true when an emerging country market or region is being investigated. As noted previously, for products whose price is low enough, population is a more important variable than income in determining market potential. As former Kodak CEO George Fisher commented a decade ago, “Half the people in the world have yet to take their first picture. The opportunity is huge, and it’s nothing fancy. We just have to sell yellow boxes of film.” Thus, China and India, with respective populations of 1.3 billion and 1 billion, represent attractive target markets. In a country like China, one segmentation approach would call for serving the existing mass market for inexpensive consumer products. (FYI, Kodak paralyzed their own growth by trying to suppress digital camera technology, even though they were the first to invent them, because of the fear their digital cameras would cannibalize their film business. They declared bankruptcy in 2012.) Procter & Gamble, Unilever, Kao, Johnson & Johnson, and other packaged goods companies are targeting and developing the China market, lured in part by the possibility that as many as 100 million Chinese customers are affluent enough to spend a few cents for a single-use pouch of shampoo.
- Young consumers may not yet have conformed to cultural norms; indeed, they may be rebelling against them. This fact, combined with shared universal wants, needs, desires, and fantasies (for name brands, novelty, entertainment, trendy, and image-oriented products), make it possible to reach the global teen segment with a unified marketing program. This segment is attractive both in terms of its size (about 1.3 billion) and its multi-billion dollar purchasing power. The U.S. teen market represents roughly $200 billion in annual buying power; the United Kingdom’s 7.5 million teens spend more than $10 billion each year. Coca-Cola, Benetton, Swatch, and Sony are some of the companies pursuing the global teenage segment. The global elite is normally associated with older individuals who have accumulated wealth over the course of a long career, it also includes movie stars, musicians, elite athletes, and others who have achieved great financial success at a relatively young age.
- In 2000, Nike generated $1.4 billion in global sales of women’s shoes and apparel, a figure representing 16 percent of total Nike sales. Nike executives believe its global women’s business is poised for big growth. To make it happen, Nike is opening concept shops inside department stores and creating free-standing retail stores devoted exclusively to women. In Europe, Levi Strauss is taking a similar approach. In 2003, the company opened its first boutique for young women, Levi’s for Girls, in Paris. As Suzanne Gallacher, associate brand manager for Levi’s in Europe, the Middle East, and Africa, noted, “In Europe, denim is for girls.”
- Data are obtained from questionnaires that require respondents to indicate the extent to which they agree or disagree with a series of statements. Psychographics is primarily associated with SRI International, a market research organization whose original VALS and updated VALS 2 analyses of consumers are widely known. A psychographic study showed that, demographics aside, Porsche buyers could be divided into several distinct categories. Top Guns, for example, buy Porsches and expect to be noticed; for Proud Patrons and Fantasists, however, such conspicuous consumption is irrelevant. Porsche used the profiles to develop advertising tailored to each type. As Richard Ford, Porsche vice president of sales and marketing, noted: “We were selling to people whose profiles were diametrically opposed. You wouldn’t want to tell an elitist how good he looks in the car or how fast he could go.” The results were impressive; Porsche’s U.S. sales improved nearly 50 percent after a new advertising campaign was launched.
- The following characteristics come from a research team at D’arcy Massius Benton & Bowles. They focused on Europe and produced a 15-country study entitled: “The Euroconsumer: Marketing Myth or Cultural Certainty?” They identified four lifestyle groups which are highlighted here and on the next slide.
- Behavior segmentation focuses on whether or not people buy and use a product, as well as how often, and how much they use or consume. Consumers can be categorized in terms of usage rates: for example, heavy, medium, light, and non-user. Consumers can also be segmented according to user status: potential users, non-users, ex-users, regulars, first-timers, and users of competitors’ products. Nine country markets generate about 80 percent of McDonald’s revenues. This situation presents McDonald’s executives with strategy alternatives: Should the company pursue growth in the handful of countries where it is already well known and popular? Or, should it focus on expansion and growth opportunities in the scores of countries that, as yet, contribute little to revenues and profits?
- Marketers of health and beauty aids also use benefit segmentation. Many toothpaste brands are straightforward cavity fighters, and as such they reach a very broad market. However, as consumers become more concerned about whitening, sensitive teeth, gum disease, and other oral care issues, marketers are developing new toothpaste brands suited to the different sets of perceived needs. The European pet food market represents $30 billion in annual sales. Nestlé discovered that cat owners’ attitudes toward feeding their pets are the same everywhere. In response, a pan-European campaign was created for Friskies Dry Cat Food. The appeal was that dry cat food better suits a cat’s universally recognized independent nature. Likewise, many Europeans are concerned with improving the health and longevity of their pets. Accordingly, Procter & Gamble is marketing its Iams brand premium pet food as a way to improve pets’ health.
- From a marketing point of view, these groups offer great opportunity. Companies in a variety of industry sectors, including food and beverages, consumer durables, and leisure and financial services are recognizing the need to include these segments when preparing marketing programs for the United States. In the two-year period 1999-2000, new-vehicle registrations by Hispanics in the United States grew 20 percent, twice the overall national growth rate. Honda, Toyota, and other Japanese automakers have been courting U.S. Hispanics for years and have built up a great deal of brand loyalty. Ford and GM are playing catch up, with mixed results; despite large increases in advertising targeting Hispanics, GM’s market share is slipping. Sales of Corona Extra beer in the United States have grown dramatically recently, thanks in part to savvy marketing to the Hispanic segment. In lower-income neighborhoods, imported premium beer brands represent “affordable luxuries.” Although a six-pack of Corona typically costs at least a dollar more than Budweiser at a local bodega, it is usually priced lower than Heineken. Marketers must understand, though, that many Hispanic Americans live in two worlds; while they identify strongly with the United States, there is also a sense of pride associated with brands that connect to their heritage.
- After segmenting the market by one or more of the criteria just discussed, the next step is to assess the attractiveness of the identified segments. This part of the process is especially important when sizing up emerging country markets as potential targets. It is at this stage that global marketers should be mindful of several potential pitfalls associated with the market segmentation process.
- India is the world’s fastest growing cell phone market. The industry is expanding at a rate of 50 percent annually, with 5 to 6 million new subscribers added every month. By mid-2008, India had 261 million cell phone users; that number approached 900 million by the end of 2011. 1.3 million cars sold annually, 3 million within 10 years, world’s largest car market. 75% of India’s population is under age 35, increasing affluent and looking for designer brands. Even so, barriers originating in the political and regulatory environments have shackled private-sector growth. From the perspective of a consumer packaged goods company, for example, low incomes and the absence of a distribution infrastructure offset the fact that 75 percent of India’s population lives in rural areas. The appropriate decision may be to target urban areas only, even though they are home to only 25 percent of the population. Visa’s strategy in China perfectly illustrates this criterion as it relates to demographics: Visa is targeting persons with a monthly salary equivalent to $300 or more. The company estimates that currently 60 million people fit that description; by 2010, the number could include as many as 200 million people.
- Over the past several decades, for example, Japanese companies in a variety of industries targeted the U.S. market despite the presence of entrenched domestic market leaders. Some of the newcomers proved to be extremely adept at segmenting and targeting; as a result, they made significant inroads. In the motorcycle industry, for example, Honda first created the market for small-displacement dirt bikes. The company then moved upmarket with bigger bikes targeted at casual riders whose psychographic profile was quite different than that of the hardcore Harley-Davidson rider. In document imaging, Canon outflanked Xerox by offering compact desktop copiers and targeting department managers and secretaries. Similar case studies can be found in earth-moving equipment (Komatsu versus Caterpillar), photography (Fuji versus Kodak), and numerous other industries. Germany’s DHL tried to enter the U.S. package-delivery market in 2003; to achieve scale, DHL acquired Airborne Express. However, management underestimated the dominance of the entrenched incumbents FedEx and UPS. DHL finally withdrew from the United States market in 2008 after losses totaled about $10 billion.
- If a market segment is judged to be large enough, and if strong competitors are either absent or deemed to be vulnerable, then the final consideration is whether a company can and should target that market. The feasibility of targeting a particular segment can be negatively impacted by various factors. For example, significant regulatory hurdles may be present that limit market access. This issue is especially important in China today Other marketing-specific issues can arise; in India, for example, three to five years are required to build an effective distribution system for many consumer products. This fact may serve as a deterrent to foreign companies that might otherwise be attracted by the apparent potential of India’s large population.
- Finally, it is important to address the question of whether targeting a particular segment is compatible with the company’s overall goals, its brand image, or established sources of competitive advantage. For example, BMW is one of the world’s premium auto brands. Should BMW add a minivan to its product lineup? As former BMW CEO Helmut Panke once explained, “There is a segment in the market which BMW is not catering to and that is the minivan or MPV segment. We don’t have a van because a van as it is in the market today does not fulfill any of the BMW group brand values. We all as a team said “no.”
- Global marketing expert David Arnold has developed a framework that goes beyond demographic data and considers other, marketing-oriented assessments of market size and growth potential. Instead of a “top-down” segmentation analysis beginning with, say, income or population data from a particular country, Arnold’s framework is based on a “bottom-up” analysis that begins at the product-market level. After marketing-model drivers and enabling conditions have been identified, the third step is for management to weigh the estimated costs associated with entering and serving the market with potential short- and long-term revenue streams. Does this segment or country market merit entry now? Or, would it be better to wait until, say, specific enabling conditions are established? The term product-market refers to a market defined by a product category; in the automotive industry, for example, phrases such as “luxury car market,” “SUV market,” and “minivan market” refer to specific product-markets. By contrast, phrases such as “the Russian market” or “the Indian market” refer to country markets. Marketing model drivers are key elements or factors required for a business to take root and grow in a particular country market environment. The drivers may differ depending on whether a company serves consumer or industrial markets. Does success hinge on establishing or leveraging a brand name? Or, is distribution or a tech-savvy sales staff the key element? Marketing executives seeking an opportunity must arrive at insights into the true driving force(s) that will affect success for their particular product-market. Enabling conditions are structural market characteristics whose presence or absence can determine whether the marketing model can succeed. For example, in India, refrigeration is not widely available in shops and market food stalls. This creates challenges for Nestlé and Cadbury Schweppes as they attempt to capitalize on Indians’ increasing appetite for chocolate confections. Although Nestlé’s KitKat and Cadbury’s Dairy Milk bars have been reformulated to better withstand heat, the absence or rudimentary nature of refrigeration hampers the companies’ efforts to ensure their products are in saleable condition.
- A niche is simply a single segment of the global market. In cosmetics, the House of Lauder, Chanel, and other cosmetics marketers have used this approach successfully to target the upscale, prestige segment of the market. Similarly, Body Shop International PLC caters to consumers in many countries who wish to purchase “natural” beauty aids and cosmetics that have not been tested on animals. Stolichnaya produces three brands of Russian vodka, each targeted at a different market segment: superpremium Stolichnaya Cristal, the premium “base” brand Stolichnaya, and low-priced Privet (the name means “greetings” in Russian). In the cosmetics industry, Unilever NV and Cosmair Inc. pursue differentiated global marketing strategies by targeting both ends of the perfume market. Unilever targets the luxury market with Calvin Klein and Elizabeth Taylor’s Passion; Wind Song and Brut are its mass-market brands. Cosmair sells Tresnor and Giorgio Armani Gio to the upper end of the market and Gloria Vanderbilt to the lower end. Mass marketer Procter & Gamble, known for its Old Spice and Incognito brands, also embarked upon this strategy with its 1991 acquisition of Revlon’s EuroCos, marketer of Hugo Boss for men and Laura Biagiotti’s Roma perfume. In the mid-1990s, P&G launched a new prestige fragrance, Venezia, in the United States and several European countries. Conversely, in 1997 Estee Lauder acquired Sassaby Inc., owner of the mass-market Jane brand. The move marked the first move by Lauder outside the prestige segment.
- The S001 is the flagship of Bridgestone’s Potenza tire line. The S001 is featured as original equipment on exotic automobiles from Ferrari and other manufacturers. In the replacement tire market, Bridgestone targets car enthusiasts who own high-performance cars and drive them under both wet and dry conditions. The S001 is positioned as a premium sports tire that performs well at high driving speeds. In this ad from Brazil, the headline Aproveite um Novo Limite (“Enjoy the New Limit”) underscores the S001’s performance qualities. More broadly, the tagline “Your Journey, Our Passion” supports Bridgestone’s core brand message of “supporting individuals.”
- Global consumer culture positioning: “United Colors of Benetton” means the unity of humankind. High-tech: MP3 players, cell phones, luxury cars, financial services, Canon cameras, Adidas. High-touch: Nescafe coffee.