The document discusses segmentation strategy as a pillar of marketing. It describes identifying market segments and targets by segmenting consumer markets based on various criteria like geography, demography, psychography, and behavior. Effective segmentation criteria should be measurable, substantial, accessible, differentiable, and actionable. The document provides examples of how Hindustan Unilever Ltd segmented consumer markets in India in 2004 by offering different brands that catered to different consumer segments and their needs.

1. Segmentation Strategy
One Pillar of marketing

2. Identifying Market
Segments
and Targets

3. Segment Marketing
Targeting a group of customers
who share a similar set of
needs and wants.

4. Customerization
Combines operationally drivenmass
customization with customized
marketing in a way that empowers
consumers to design the product and
service offering of their choice.

5. Segmenting Consumer Markets
Geographical
Demographical
Psychographic
Behavioral

6. Bases of segmentation
1.Geographic region, city, density, climate
2.Demographic age, sex, marital status, family size, income
3.Psychological need-motivation, personality, perception, attitude
4.Psychographic lifestyle
5.Socio-cultural culture, religion, language, family life-cycle
6.Use-related usage rate, awareness status, brand loyalty
7.Use-situation time, objective, location, person
8.Benefit
9.Hybrid mix of other bases of segmentation

7. Demographic Segmentation
Age and Life Cycle
Life Stage
Gender
Income
Generation
Social Class

8. Behavioral Segmentation
Decision Roles Behavioral Variables
• Initiator • Occasions
• Influencer • Benefits
• Decider • User Status
• Buyer • Usage Rate
• User • Buyer-Readiness
• Loyalty Status
• Attitude

9. Patterns of Target Market Selection

10. …

11. …

12. Effective Segmentation Criteria
Measurable
Substantial
Accessible
Differentiable
Actionable

13. In 2004, HLL (Now HUL) was the
largest FMCG company in India.
It was present in many
segments.HUL is a highly consumer-
focused company with different
brands catering to different
consumer segments with different
needs and purchasing power
Surf high-end consumers
Rin mid-market segment
Wheel lower end market
Axe men
Ponds & Rexona women
Elle 18 (Lakme) early teens & young adults
Sunsilk(shampoo) hair expert
Clinic plus healthy hair (anti-dandruff)

14. Defining market segmentation
• The process of dividing the market on various criteria like age, sex,
region, culture, etc.
• Segmentation can take place at various levels –
– Segment marketing : dividing the market into large homogeneous
segments on the basis of variables like common needs, purchasing
power, region, or age. Lakme cosmetics, for e.g., caters to the basic need
of women to look good.
– Niche marketing: is a specialized market segment, niches are quite
small and have much less competition. E.g., magazines targeted at
specific sports like golf (Golf Digest).
– Local marketing : involves customizing the global products to
suit local tastes. E.g., McDonald’s McAloo Tikki and McVeggie.
– Individual marketing : is the highest level of customization, where each
product or service is tailor-made for an individual consumer. E.g.,
designer cars by DilipC habria (DC)