The document discusses consumer needs and market segmentation. It explains that marketers do not create needs but make consumers aware of unfelt needs. It identifies the major types of market segmentation as geographic, demographic, psychographic, and behavioral. It also discusses targeting market segments and describes five patterns of target market selection: single segment concentration, selective specialization, product specialization, market specialization, and full market coverage. The document then provides examples of specific fashion and lifestyle brands to analyze, including Hero MotoCorp bikes, Pepe Jeans clothing, Nakshatra diamond jewelry, Samsung mobile phones, and Bata footwear. For each brand, it discusses the company, products, market segmentation approach, targeting strategy,

1. 1. Introduction
Consumer needs are the basis of all modern marketing. Needs are the essence of marketing
concept. Marketers do not create needs, though in some cases they may make the consumers
more keenly aware of the unfelt needs. Marketing strategies are based on communicating with
consumer – directly, through advertisements, and individually through product appearance, price,
packaging and distribution channels. Marketers want their communications to be noted, believed,
remembered and recalled. For these reasons marketers are concerned with how individuals learn,
in their roles as consumers. [1]
Marketers need to understand the segment as well as their target customers in order to make
customers prefer their brands and to differentiate their products from competitive offering.
1.1 Segmentation
A market segment consists of a group of customers who share a similar set of needs and wants.
The major segmentation variables—geographic, demographic, psychographic, and behavioral
segmentation. [2]

Geographic Segmentation (nation, states, regions, cities, density, climate, etc.)

Demographic Segmentation (age, family size, gender, income, family life cycle,
occupation, religion)

Psychographic segmentation (lifestyle, personality)

Behavioral segmentation (occasions, benefits, user status, usage rate, loyalty status,
attitude towards product) [2]
1.2 Targeting
Once the firm has identified its market-segment opportunities, it has to decide how many and
which ones to target. Marketers are increasingly combining several variables in an effort to
identify smaller, better-defined target groups. In evaluating different market segments, the firm
must look at two factors: the segment's overall attractiveness and the company's objectives and
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2. resources. After evaluating different segments, the company can consider five patterns of target
market selection. [2]

Single – segment concentration: Through concentrated marketing, the firm gains a strong
knowledge of the segment's needs and achieves a strong market presence.

Selective specialization: A firm selects a number of segments, each objectively attractive
and appropriate.

Product specialization: The firm makes a certain product that it sells to several different
market segments.

Market specialization: The firm concentrates on serving many needs of a particular
customer group.

Full market coverage: The firm attempts to serve all customer groups with all the
products they might need. [2]
2. Brands Chosen
The Fashion and Lifestyle Brands that I have chosen for my assignment are:

Two Wheeler Bikes: Hero Moto Corp Ltd

Clothing: Pepe Jeans London

Jwellery: Nakshatra Diamond Jwellery

Mobile phone: Samsung

Footwear: Bata
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3. 3. Two Wheeler Bikes
A motorcycle (also called a motorbike, bike) is a
two wheeled motor vehicle. Motorcycles vary
considerably depending on the task they are
designed
for,
such
navigating congested
as long
distance travel,
urban
traffic
cruising, sport and racing, or off road conditions.
Motorcycles are one of the most affordable
forms of motorized transport in many parts of the
world and, for most of the world's population,
they are also the most common type of motor
vehicle. There
motorcycles
are
around
200
million
(including mopeds, motor
scooters, motorized bicycles, and other powered
two and three-wheelers) in use worldwide, or about 33 motorcycles per 1000 people. [3]
India, is the second largest producer of two-wheelers in the world. In the last few years, the
Indian two-wheeler industry has seen spectacular growth. The country stands next to China and
Japan in terms of production and sales respectively. Majority of Indians, especially the
youngsters prefer motorbikes rather than cars. Capturing a large share in the two-wheeler
industry, bikes and scooters cover a major segment. Bikes are considered to be the favorite
among the youth generation, as they help in easy commutation. The two-wheeler market in India
is the biggest contributor to the automobile industry with a size of Rs.100,000 million. The
motorcycle market share is about 81.5% of the total two wheeler market in India. Three-fourths
of the total exports in the two wheeler automobile industry are made in the motorcycle segment.
[4]
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4. 3.1 Hero Moto Corp Ltd
Hero
MotoCorp
Ltd.
formerly Hero
Honda is
an
Indian motorcycle and scooter manufacturer based in New Delhi,
India. Hero Honda started in 1984 as a joint venture between Hero
Cycles of India and Honda of Japan. The company is the largest two
wheeler manufacturer in India. In 2010, When Honda decided
to move out of the joint venture,[5] Hero Group bought the shares
Hero Group bought the shares held by Honda.
Subsequently, in August 2011 the company was renamed Hero MotoCorp with a new corporate
identity. Product range of Hero MotoCorp are: [6]

CD 100

Passion

Passion Plus

CD 100 SS

CBZ

Karizma

Splendor

CD Dawn

Ambition

Splendor +

CBZ Star

Ambition 135

Impulse

Acheiver

Pleasure

Street

Hunk

Joy

Glamour

CD Deluxe
Segmentation
Hero MotoCorp caters to a wide consumer base. It has segmented its market based on income
and age. It caters to youth (male) of all income groups. Its highest selling bike Splendor is a
favorite in sub urban and rural India. It potrays itself as the most efficient bike range to cater to
Indian Roads.
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5. Targeting
Hero MotoCorp follows selective specialization. It has a wide range of bikes from Rs 37,000 to
Rs 95, 000. Each product has multiple optional features. The USP that it uses are: strong, sturdy
and powerful, greater mileage, low maintenance cost, safe to ride, ease and comfort. Its target
market includes lower middle class consumer to upper middle class consumer. It is affordable,
available and acceptable by all.
Consumer Motivation
The need that bike fulfills is transportation and has a lower capital investment during purchase.
Hero bike uses advertisements to stimulate the latent needs of its target customers. Hence hero
bike satisfies the esteem needs of an individual.The Desh ki Dharkan Advertisement campaign
and Hum Me Hai Hero Advertisement campaign are used to arise the dormant cognitive needs of
its target customers to be a hero. The celebrity endorsement of Hero is such that its target
customers can relate themselves to the celebrity. So the target customers feel like a superstar and
want to associate themselves with celebrity. So customers are motivated to buy Hero bikes in
order to satisfy their social needs.
Customers feel empowered due to higher quality and service and some customization. Hero has
bike available in various price range and cc, so customers feel the bikes to be customized for
their need. Hero has the largest market share in two wheeler category. As Hero has bikes catering
to a large customer segment, it has highest industry coverage. So brand recall is high. Hence
customers are motivated to prefer Hero bikes over all other bikes.
Consumer Learning
The customers go through a process of cognitive learning. Before making their purchases,
customers gain full information about the bike. They acquire knowledge about the mileage, price
and serviceability. They use various sources of information in order to acquire knowledge about
the product. They gather information from internet, friends and relatives; carefully evaluates
them in order to make the best decision.
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6. 4. Clothing
Clothing is fiber and textile material worn on the body.
The wearing of clothing is mostly restricted to human
beings and is a feature of nearly all human societies. The
amount and type of clothing worn depends on physical,
social and geographic considerations. [7]
Physically, clothing serves many purposes: it can serve
as protection from the elements, and can enhance safety
during hazardous activities such as hiking and cooking.
It protects the wearer from rough surfaces, rash-causing plants, insect bites, splinters, thorns and
prickles by providing a barrier between the skin and the environment. Clothes can insulate
against cold or hot conditions. [7]
4.1 Pepe Jeans London
In 1989 when the brand established itself in India, the jeans
wear market was in its nascent stages. The concept of jeans
being a comfortable everyday wear was unheard of and those
who wore jeans imported them from other countries. [8]
Pepe Jeans is a global, fashion brand and sells everything one would associate with casual wear
like jeans, t-shirts, shirts, jackets, casual pants, capries, shorts and accessories such as duffel
bags, caps, wrist bands, wallets, belts etc. [8]
Pepe Jeans London was started as a jeans wear brand that became a best seller in London. It soon
expanded to also become a denim wear brand with numerous styles in top wear like, denim
jackets, shirts etc. along with jeans. [8]
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7. Segmentation
Primary target audience for Pepe youth (both male and female) collection are 16-25 year olds
belonging to SEC A+ and SEC A section. They are the English speaking brand and fashion
conscious individuals.
Informed of the latest trends, they prefer to carry an individualistic style. While grooving to the
latest in music, they demonstrate equal interest in sports as well. Consumers above this age
group too are becoming fashion conscious and take extra efforts to keep up with the trends.
Pepe is experiencing target segment spill over to age groups above the main target group too.
Recently, Pepe has started to target the 10 to 16 year old teenagers also as there was an
opportunity and absence of branded apparel player in this segment.
Targeting
Pepe offers casual wear and has product specialized targeting. It targets people of high income
group. It targets people who love casual dressing. It has endorsed many Hollywood stars. So it
targets customers who love street fashion at the same time they want to look good and attractive
in what they wear. The two are the most important an apparel is its fit and quality. So pepe
targets people who want to look fashionable without compromising on the fit and quality of the
denim.
Customer Motivation
Pepe jeans satisfies psycologicalneeds of its target customers. The key to retain customers is to
give them value for money. When the customer is satisfied with the quality and the offering of
the product, he definitely comes back for more. Pepe Jeans London offers fashion that can best
be described as, young cool, extrovert and casual. An attitude that sets you apart from the group
is the characteristic of every garment of Pepe Jeans London. Customers say that Pepe has a great
fit, it’s also know in the market that ‘Pepe fits like a glove’. So Pepe attracts customers based on
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8. word of mouth. Majority of its customers are loyal. Pepe also has celebrity endorsements in
order to create a psychological impact in the mind of customers.
Consumer learning
Majority of Pepe customers are loyal. They prefer Pepe over other competitors. They are
psychologically attached to Pepe’s merchandise. They like a few features of Pepe which they
find better than other competing brands. So they purchase from here and gradually get so
accustomed to Pepe’s merchandise that they get converted to loyal customers. So the customers
undergo classical conditioning.
5. Jewellery
Jewellery or jewelry is a form of personal adornment,
such
as brooches, rings, necklaces, earrings,
and bracelets. With some exceptions, such as medical
alert bracelets or military dog tags, jewellery normally
differs from other items of personal adornment in that
it has no other purpose than to look appealing, but
humans have been producing and wearing it for a long
time – with 100,000-year-old beads made from
Nassarius shells thought to be the oldest known jewellery.
Jewellery may be made from a wide range of materials, but gemstones, precious metals, beads,
and shells have been widely used. Depending on the culture and times jewellery may be
appreciated as a status symbol, for its material properties, its patterns, or for meaningful symbols.
Jewellery has been made to adorn nearly every body part, from hairpins to toe rings.
The word jewellery itself is derived from the word jewel, which was anglicized from the Old
French "jouel", and beyond that, to the Latinword "jocale", meaning plaything. [9]
8

9. 5.1 Nakshatra Diamond Jwellery
Launched in 2000 Nakshatra reached the
iconic stage. The Nakshatra Collection has
unique floral designs with multiple diamonds
encircling a single large diamond to signify the
constellation effect. Special Packaging and its
own guarantee certificate promising the purity
and sparkle of Diamond. [10]
It’s offered in superior quality diamonds of 4
Different Grades certified by the most reputed
International
Gemmological
Institute.
Nakshatra is synonymous with trust and purity
in a category that is fraught with questionable
practices. It epitomizes the expression of love
and affection in women’s life. Nakshatra has
established itself as an ethical player in the
market as it comes with its certificates of
authenticity and assuring transparency in the
buying decision of the consumers. Overt
Nakshatra brand values include beauty,
radiance,class, elegance and quality. Amongst the symbolic values are feminity, celestial
splendour and mystery. [10]
Nakshatra is one of the most respected and most preferred brand jewellery brands in based
in Mumbai, Maharashtra. It is a part of multi billion Gitanjali Group. The jewellery range
includes rings, earrings, neck sets and bracelets in novel designs. It is India’s largest and fastest
growing
jewellery
brand
in
India. Nakshatra
is
a
brand
owned
by
the Gitanjali
Group (DTC), with manufacturing, distribution and marketing rights held by done by Brightest
Circle Jewellery.[11]
9

10. Segmentation
Nakshatra caters to females who blend Indian tradition with contemporary glamour. Its
customers are women who have an income of above 50 thousand per month and are highly
educated. Nakshatra diamonds caters to women who have passion, attitude and are independent.
Targeting
Nakshatra offers jewellery and so it follows product specialization method of targeting. The
diamond jewelry sold by the brand has been priced from Rs 15,000 upwards. Its target market
includes middle class consumer to upper middle class consumer. It is affordable, available and
acceptable by them. Nakshatra has endorsed Katrina Kaif as its brand ambassador. So it wants to
target women who want to look glamorous and sexy. It targets women who want to be a
recognizable figure.
Customer Motivation
Owing diamond jewellery is the acquired need. These needs have cognitive arousal i.e. its
creates the desire amongst women to look sparkling, glamorous and sexy. Nakshatra satisfies the
esteem needs of women. Women want to be adored, look different and want to be noticed. So the
beautifully cut and shiny jewels motivates women to feel good about themselves.
Customer Learning
Customers go through cognitive learning process for buying Nakshatra for the first time. They
look for online blogs, read magazines and also take the advice of friends and relatives before
buying. Once the customers buy, they experience a good shopping as well as the products are of
the best quality and latest designs. So this makes psychological change in the customers which
makes them like the brand, its products. The customers become loyal. So customers undergo
both cognitive and behavioral learning process.
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11. 6. Mobile Phone
A mobile phone (also known as a cellular phone, cell phone and
a hand phone) is a device that can make and receive telephone
calls over a radio link while moving around a wide geographic area.
It does so by connecting to a cellular network provided by a mobile
phone operator, allowing access to the public telephone network. [12]
In addition to telephony, modern mobile phones also support a wide
variety of other services such as text messaging, MMS, email,
Internet access, short-range wireless communications, business
applications, gaming and photography. Mobile phones that offer
these and more general computing capabilities are referred to as smart phones. [12]
The first hand-held mobile phone was demonstrated by John F. Mitchell and Dr Martin
Cooper of Motorola in 1973, using a handset weighing around 2.2 pounds (1 kg).In 1983,
the Dyna TAC 8000x was the first to be commercially available. From 1990 to 2011, worldwide
mobile phone subscriptions grew from 12.4 million to over 6 billion, penetrating about 87% of
the global population and reaching the bottom of the economic pyramid. [12]
6.1 Samsung
Samsung Telecommunications is one of five
business
units
within Samsung
Electronics,
belonging to the Samsung Group, and consists of
the
Mobile
Communications
Division,
Telecommunication Systems Division, Computer
Division, MP3 Business Team, Mobile Solution Centre and Telecommunication R&D Centre.
Telecommunication Business produces a full spectrum of products from mobiles and other
mobile devices such as MP3 players and laptop computers to telecommunication network
infrastructure. Headquarters is located in Suwon, South Korea. [13]
11

12. Samsung cell phones are generally in the clamshell/flip form factor. There are both CDMA and
GSM Samsung cell phones and, generally, GSM Samsung cell phones can accept custom
ringtones and graphics in a free do-it-yourself manner, but it's not always the case of CDMA
Samsung phones. Samsung also occasionally manufactures PDA phones.[14]
Segmentation
Samsung mobile phone uses geographic, demographic as well as psychographic method of
segmenting its target customers. It targets youth from both rural and urban area. Both men and
women are its target customers. For youth in urban India it targets youth who are tech savvy,
want a compatible and user friendly gadget in hand that performs multi tasking. For youth in
rural India, it caters to youth who use mobile phones for its essential purpose i.e. making and
receiving phone calls.
Targeting
Samsung uses selective specialization for targeting. Samsung offers mobile phones starting from
Rs 1,000 to Rs 40,000. So it caters to lower segment, middle segment and higher segment of
society. It caters to both high tech savvy and low tech savvy people. It endorsed Amir Khan as its
brand ambassador to reach out to masses.
Customer Motivation
The technological advancements and the need of faster communication has let to a revolution in
the cell phone world. Having a Samsung mobile phone has become the acquired need of the
people. These are needs that an individual experiences at a particular time which are activated by
specific cues of status, connectivity and being technologically updated. Owing a Samsung phone
has today become a basic necessity and it satisfies the social needs also. No segment of
customers in India are without mobile phones. So, Samsung cell phones are designed for all
12

13. target groups and it has created a Band Wagon effect amongst people of all segments which
motivates them to buy Samsung mobile phones.
Customer Learning
The target customers go though cognitive learning process before buying Samsung mobile
phone. They want value for money, good serviceability and a good brand name. So the
customers who buy for the first time gather information from internet and from friends and
relatives. If they are buying mobile phone for the second or third time, they gather information
from internet, friends and relatives, and also from their own past experiences.
7. Footwear
The footwear sector is a very significant segment
of the leather industry in India; rather it is the
engine of growth for the entire Indian leather
industry. [15]
India is the second largest global producer of
Footwear after China, accounting for 13% of global footwear production of 16 billion pairs.
India produces 2065 million pairs of different categories of footwear (leather footwear - 909
million pairs, leather shoe uppers - 100 million pairs and non-leather footwear - 1056 million
pairs). India exports about 115 million pairs. Thus, nearly 95% of its production goes to meet its
own domestic demand. [15]
The major production centers in India are Chennai, Ranipet, Ambur in Tamil Nadu, Mumbai in
Maharastra, Kanpur in U.P., Jalandhar in Punjab, Agra, Delhi, Karnal, Ludhiana, Sonepat,
Faridabad, Pune, Kolkata, Calicut and Ernakulam. About 1.10 million are engaged in the
footwear manufacturing industry. Footwear exported from India are Dress Shoes, Casuals,
13

14. Moccasins, Sport Shoes, Horrachies, Sandals, Ballerinas, Boots, Sandals and Chappals made of
rubber, plastic, P.V.C. and other materials.[15]
7.1 Bata
Since its foundation in 1894, Bata has been at the forefront
of innovation; not only in the production and design of new
styles, but in the creation of business models that permit a
quick response to the ever-changing wants and needs of
our customers. As a result, Bata enjoys a long
history as a leading manufacturer and retailer of quality footwear, and proudly serves some one
million customers each day. Bata is positioned to deliver an unparalleled combination of
selection, quality, and service to customers around the globe. Bata's reach is worldwide; its
presence is local. The international manufacturing structure allows Bata facilities around the
globe to respond to the unique needs and wants of local customers. [16]
For over 13 decades, Bata has been on the leading edge of footwear design. Today, professionals
in Bata's Shoe Innovation Centres around the world continue the tradition of innovation as they
dedicate themselves to discovering new shoe materials, developing modern shoe technologies,
and creating fresh footwear that marries style with comfort. [16]
Segmentation
The target customers for Bata are men, women and children. Bata targets to people earning Rs
15,000 above per month. It caters to all age groups. It caters to people who are brand conscious
and believes in quality of the product and does not want to compromise on the aesthetics. Bata
portrays itself as a consumer-friendly shoe brand, which offers variety of casual footwear
[men,women,kids] with good quality, comfort and style at low prices.
14

15. Targeting
Bata has casual, formal, semi- formal and sports shoes along with sandals for men and women. It
also has sports shoes and sandals for kids. So Bata follows selective specialization for targeting.
The price of Bata footwear ranges from Rs 200 to Rs 2000. It targets lower middle and middle
customers.
Customer Motivation
Foot wear fulfills the basic necessity of protection. Bata footwear satisfy the safety and social
needs of its target customers. Bata Shoes lies in the category of High Involvement, Feeling
Product where customers usually follow the pattern of FEEL-LEARN-DO, i.e. first they feel
about the product or brand, then learn about it features and benefits and then take action
(purchase/ no purchase). The comfort and durability are the two most important factors that
motivates customers to buy Bata footwear. Customers are motivated to buy Bata products
because of the following reasons:

Convenient denominations

6 months validity

Redeemable on all Bata products

Acceptable at over 800 Bata stores across India
Customer Learning
Customers undergo classical conditioning learning process while buying Bata footwear. They are
brand loyal and prefer Bata over all other footwear. The customers have been using Bata
footwear for a long period of time and do not prefer switching over to any other brand. Hence
repetitive learning is involved.
15

16. 8. References
1. Leon G. Schiffman and Leslie Lazar Kaunk, Consumer Behavior (Pearson Education,
Ninnth Edition).
2. Philip Kotler, Marketing Management (Pearson Education, Eleventh Edition).
3. http://en.wikipedia.org/wiki/Motorcycle (assessed on 10.2.2013)
4. www.slideshare.net/vikasmisar/advertising-two-wheeler-industry-ppt/download (assessed
on 10.2.2013)
5. http://en.wikipedia.org/wiki/Bajaj_Auto (assessed on 10.2.2013)
6. http://en.wikipedia.org/wiki/Hero_MotoCorp (assessed on 10.2.2013)
7. http://en.wikipedia.org/wiki/Clothing (assessed on 11.2.2013)
8. http://www.pepejeans.com/en/home.html (assessed on 11.2.2013)
9. http://en.wikipedia.org/wiki/Jewellery#Native_American (assessed on 11.2.2013)
10. http://www.superbrandsindia.com/images/brand_pdf/consumer_3rd_edition/Nakshatra.pd
f (assessed on 12.2.2013)
11. http://en.wikipedia.org/wiki/Nakshatra_Jewellery (assessed on 12.2.2013)
12. http://en.wikipedia.org/wiki/Mobile_phone (assessed on 12.2.2013)
13. http://en.wikipedia.org/wiki/Samsung_Telecommunications (assessed on 13.2.2013)
14. http://www.google.co.in/url?sa=t&rct=j&q=general%20information%20about%20samsu
ng%20mobile%20phones&source=web&cd=1&cad=rja&ved=0CEsQFjAA&url=http%3
A%2F%2Fcellphones.about.com%2Fod%2Fsamsung%2Fa%2Fsamsung.htm&ei=m4Ec
Ua7vB6TPmgXiiYCoBg&usg=AFQjCNE8AZRI1Na2GluJGIUTGNUg4LgvYA
(assessed on 13.2.2013)
15. http://www.leatherindia.org/products/footwear.asp (assessed on 13.2.2013)
16. http://www.bata.com/about-bata.php (assessed on 13.2.2013)
16