SEGMENTATION, TARGETING AND POSITIONING
The term segmentation was first introduced into marketing literature by Alderson (1937). In 1950s, Smith conceptualized and provided a definition of segmentation as we know it today. Market segmentation may be defined as subdividing a heterogeneous market into more homogeneous subgroups based on some common customer characteristics, such as age, location, time of purchase or purchase frequency. Segmentation strategy has been expanded into several forms, such as niche, multi-segment and across-the-board targeting strategies (Alderson, 1957; Kotler, 1980; McCarthy, 1978). SEGMENTATION
Table : Demographic Segmentation of Lacoste1
Gender: More male (57%*) than female (43%*) buy from Lacoste. Income: Above 12.5 lakh per annum. The people with incomes from 6 to 10 lakh (21.6%*) and 10 to 15 lakh (21.6%*) are keener to buy Lacoste. Occupation: Business (51.4%*), Corporate and Service (16.2%*) Social Class: Upper Middle Class, Upper class, SEC Class A
Generation: Generation X, Generation Y
Lacoste targets people from the age of 18-44 since its a brand that targets the youth as well as older people. It produces clothes within a wide range with basic silhouettes but different colors and prints which can be for the youth. Since Lacoste started out as a menswear brand, a majority of their target group is male. However, of late their global strategy has shifted to focus more on women as well. This happened because they noticed that more and more women across the world are buying Lacoste. Within India, people who fall in upper middle class and upper class are the ones who buy Lacoste. This is apparent from the salary of the target group for Lacoste. The lifestyle that Lacoste is suited for is found more amongst Business class and people in corporate sector. PSYCHOGRAPHICS
Needs and Motivation: On the hierarchy of needs, the customer who purchases Lacoste would ideally be on the 4th level where the esteem needs become the motivation for buying the product. Lacoste is an aspirational lifestyle brand which the consumers purchase in order to be a part of the higher society. Perception: Low risk – Lacoste produces mostly fashion basic merchandise such as polo t-shirts in various colors and designs, basic shirts and sweaters. Purchasing Lacoste merchandise doesn’t entail much risk for the buyer. A Lacoste customer is quality (43.2% people said good quality3) and value oriented as opposed to price oriented. Since Lacoste prices are super premium, the people should be willing to pay it for the quality they receive. Personality: The Lacoste customer comes in the segment of early adopters since these people like to keep up with the happenings in the world of activewear and Lacoste happens to be the market leader in this category. Novelty seekers – They are exploratory in nature.
Involvement: The Lacoste buyers are highly involved with the product because Lacoste has a niche in the market that cannot be matched by any other brand. Lifestyle:
Activities: Work (Business and Corporate), Hobbies (Casual Sports, Laidback weekends), Sports, Vacation (Beaches, Laidback) Interests: Job, Home, Family, Tennis, Recreation
Opinions: Economy and business, Social, Family values
Consumer Awareness: People are generally aware of Lacoste2 even if they don’t buy from it. Benefits sought: The Lacoste customer is trying to fulfil social need by using Lacoste products. Buying/Usage Frequency: Heavy product users. People who buy Lacoste tend to use it often and account for a significant portion of the revenue for the brand. The people who buy from Lacoste wear it mostly on for casual outings (70.3%4). Loyalty status: About 70% hardcore loyals. 30% split loyals (TNN, 2004). Usually people prefer buying it at full price (62.2%4) Attitude: People who use Lacoste are positive about the product. People who don’t use Lacoste aspire to use it or are...
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