Fruit Juice Case Study

Indian Market Segmentation For Fruit Juice Company
The following sequential steps present a useful framework, brand managers use for the purpose of market segmentation:

1. Establish Segment Attractiveness And Business Strength Factors
The attractiveness of a market segment can be evaluated based on the company’s current business strengths and market potential assessment.
Determining the segment attractiveness requires, first of all, the degree of unmet or partially met consumer needs. It also includes the marketer’s estimation of the segment size, growth rate and the influence of various macro environmental factors that influence the demand in the market segment.

2. Assessing Each Factor To Identify Segment Attractiveness
Each of the factors

Rate Market Segment On Each Factor
This step requires quantitative and qualitative data to make an objective assessment on each criteria identified. It is extremely important to make a detailed analysis of major competitors with respect to their objective, strategy, resources, and marketing programmes. Another aspect to be carefully assessed is the evidence that, b entering the segment, the company cane more completely satisfy the unmet customer needs in the targeted segment and gain competitive advantages.

4. Assessing Segment Profitability
The facts that a segment has positive attraction factors and the company has desired strengths does not necessarily mean that the segment can be served profitably. Many segments are large and the market is growing, but the consumer’s seek low prices and the competing companies have a chance of making profits only by airtight control on their costs. (Very much similar to the current Indian market scenario) it would be advantageous to enter a smaller segment if the consumers are prepared to pay a price premium for a product or service for which the cost differentiation is less than the premium charged.

5. Plotting Future Position For Each

A company may decide to enter a segment that otherwise does not currently appear to be positive under certain conditions, such as when there is belief among the managers that the segment’s attractiveness or the company’s business strengths is likely to improve in the coming few years, or they believe such segments would offer opportunity to enter more attractive markets in coming years.
There are three basic targeting strategies:

• Undifferentiated Mass Marketing: This strategy involves ignoring any differences among consumers and offer one product to entire market segment. This strategy of mass marketing focusses on what is common in the needs of consumers rather than what is different.

• Differential Multiple Segment Marketing: The marketer decides to enter several market segments and develops separate offers for each. Differentiated marketing strategy increases costs