Segmentation, Targeting and Positioning

Earlier, the world wasn’t very crowded nor complicated. The population was growing very slowly, overall progress of nations and kingdoms were slow as well. But things changed quite dramatically once the concept of capitalism was introduced. People started demanding more better products and more specialized ones. The behavior patterns changed of every individuals dividing them into sets of informal groups who do the same things, follow the same topics, and have similar hobbies etc.

Therefore a need came to focus products on these groups to gain maximum advantage and to earn maximum revenues. This is not to say that other groups are left out. Its just that while marketing a product, the marketer’s focus is only on the selected group or technically known as the Target Market.

Markets may be segmented into geographic, demographic, psychographic & behavioral segments. Basis of segmentation depends on the attributes of the product. For example, if its an ice cream, then it would probably work well in regions where temperatures are high. A very basic example, but the best one to explain.

Lipton Ice tea, have divided their Targets into two sets, one who are the consumers on the go, that is, students, professionals etc who lead a busy life. Two, who are more health conscious.

They have position the drink as a healthy alternative to other cold drink. Also that its tasty and refreshing. they have maintained this positioning in India ever since their arrival, whereas abroad they have changed it overtime.

Their main targets are people between the age of 18-30, who are mostly Millennial's.