S-T-P Analysis Of Brands
Marketing choices are very significant elements of a strategic marketing business. Generally, referred to as S-T-P marketing, segmenting, targeting and positioning are the central components of marketing. To be precise, STP is a marketing process that connects the way to evaluate and select a target market for a particular product. There are six categories based on which market is generally segmented- demographic factors, psychographic profile, behavioural style, geographic variables, socioeconomic factors and benefits sought.
PRODUCT CATEGORY: SHOES
NIKE
Nike’s general target market is ‘all athletes’ and individuals
based on their age, gender and life cycle stage. The brand analyses its target
audience on size, reachability and behaviour. The final step, that is positioning,
Nike has done it brilliantly. It has positioned the brand as the leader in
sport gear market, and an ambitious company providing high quality and advanced
innovations.
USP- Just do it
Market Share- 35.6% approx.
Segmentation:
Nike running shoes has products for both men and women and
also the brand targets on high income level, and youth from 15 to 30 years of
age. People living in urban cities play more sports than rural people and they
are even willing to spend more on sports shoes. Women’s segment offers a
long-term potential of Nike shoes, that has created a safe and comfortable product
line for customers.
Targeting:
Nike targets both the genders with soft texture,
light-weighted but high-quality leather. It also comes in colours for both men
and woman. The brand targets individuals of ages 15-35, who like sports or do
not really like sports but are inclined towards sports fashion. They make
purchase decision based on the comfort, look and colour.
Positioning:
Nike has become one of the top sports brands in more than
two decades. The brand is positioned in the consumers’ mind as an expensive product
line that comes with good quality. 85% of the customers have reviewed the brand
to be comfortable, in trend and high-tech.
ADIDAS
Adidas is a Germany based multinational company, that
designs and manufactures shoes, clothing, and accessories. It is the second largest
sportswear brand in the world, after Nike.
USP- Impossible is nothing
Market Share- 15.7% approx.
Segmentation:
Adidas uses various way of segmentation to break a bigger market into small target-based market. It mainly targets the youth between 14-40 years of age group. The brand equity is not just limited to this segment, the brand is quite desired and is liked by consumers with mostly all age groups. Adidas also categorizes into different sub-brands like Adidas Originals, Adidas Neo, which targets different customer segments. It targets both genders and offers premium quality sports products. Adidas uses psychographic segmentation to target upper-middle-class consumers to affluent consumers and create a premium positioning with appropriate pricing strategy.
Targeting:
After segmentation, companies select the market segments
that they want to focus on and put in their future business strategy. Adidas target
its market on size, attractiveness and resources to operate their business,
sales and marketing activities. The premium pricing strategy and superior quality
helps in targeting their desired market segments.
Positioning -
Adidas sketches a picture of its brand as a Creator Sports
Brand. In 2018, Adidas launched its “Calling All Creators” campaign. They featured
roundtable stories from some of the world’s most influential personalities in sports
culture—Lionel Messi, Von Miller, James Harden, Raul Pogba. With its brand
positioning as “The Creator Sports Brand,” Adidas has seriously opened up the
playing field.
If you’re a shoe maniac like me, you would probably know that
there’s something that is common between Justin Bieber, Snoop Dog and Kim Kardashian,
that is they all own a pair of YEEZY Boost 750, a sneaker that was designed by
Kanye West and launched by Adidas. Sneakerheads, be it fans or celebrities, all
go crazy when Adidas drops a collection designed by West. That’s the kind of
positioning the brand has made.
ASICS
ASICS is a Japanese multinational company which produces a
varied range of footwear and sports gear.
USP- I am what I am
Market Share- 11.3%
Segmentation:
ASICS market is segmented on the basis of income and geographical factors. Tech savvy customers with high income are mostly attracted towards the brand. The company segments high income incomers into tech savvy customers and others. Based on geography, ASICS generally operates in the US, Australia, Europe and Middle East.
Targeting:
The marketing strategy is to target high income earners. Males and females with high income among the age group of 16+ are the target market here.
Positioning -
The brand has positioned itself as a premium sports brand
that provides comfortable and technologically advanced stylish sports item with
great performance.
PRODUCT CATEGORY: WATCHES
ROLEX
Rolex is a premium luxury watch brand based in Geneva, Switzerland.
It rose to fame when in 1926, it came up with the first waterproof watch.
USP- A crown for every achievement
Market Share- 22.2% approx.
Segmentation:
Rolex watches are meant for the high-income group individuals, and therefore it uses undifferentiated targeting strategy. The company uses psychographic segmentation strategy to understand the changing needs of the customers, that allows them to be ahead of other brands in the market.
Over the years, Rolex has created a niche segment of customers
belonging to upper-class income group, those who wear a wear as a status. These
are the customers are either well-known personalities or belong to business
family in the age group of 30-60 years.
Positioning -
Rolex has established its brand name to be an insignia of
luxury, class and prestige that has more than 100 years of experience in being
the timeless masterpiece that it is. This luxury watchmaker brand has been
ranked the 64th most powerful brands in the world in 2016.
OMEGA
Omega is another Swiss luxury watchmaker founded in 1848,
that has taken over the watchmaking innovations and advanced technology to make
Omega a premium brand in the watch industry.
USP- Exact time for life
Market Share- 9 % approx.
Segmentation:
OMEGA has segmented its market firstly based on demographics
and then on, psychographics. These watches are for both genders as well as employees
and employers or entrepreneurs. OMEGA has a brand image of sporting and
pioneering spirit so sports inclined or tech savvy customers fall into their target
market.
OMEGA has five different ranges which include Constellation,
Seamaster, Speedmaster, De Ville and Specialities series. All the ranges are designed
for different customers with different demands. For example, the Constellation watch series
are diamond studded, mainly for people who pursue status and style. Seamaster
and Speedmaster, on the other hand, are curated for customers who love outdoor activities.
Positioning -
OMEGA is one of those brands who create unique features to set its product class apart. The brand image is such that when a customer wears an OMEGA watch they are fashionable. Features such as co-axial chronograph is an exclusive technology that makes OMEGA watches unique.
TAG HEUER
TAG Heuer is a luxury watch brand based in Switzerland and
founded in 1860. The company designs, manufactures and markets watches, eyewear
and fashion accessories.
USP- Swiss avant-garde since 1860
Market Share- 3.9% approx..
Segmentation:
TAG Heuer segments luxury sports watches across the globe,
among individuals belonging to high-income group.
After segmenting the market, companies focus on targeting the
market in that segment. TAG Heuer targets young males and females, especially from
high income group.
Positioning -
TAG Heuer has positioned its brand image among the luxury and
prestige sports watch segment with classic designs.
PRODUCT CATEGORY: BEAUTY
L'Oréal PARIS
L'Oréal Paris is a French cosmetic company that manufactures a variety of beauty products such as makeup, skin care, hair care, hair colour, etc. It is one of the ruling brands in the world of beauty and personal care.
USP- Because I’m worth it.
Market Share- 29.4% approx.
Segmentation:
The company first segmented the population into male and female. Even though, the brand originally catered to the women, it has now carved a niche market for men as well. Based on demographics, L’Oréal LUXE was launched for upper middle and upper-class customers who wear beauty as their identity.
Targeting:
Implementing the right business strategy, L’Oréal serves the customers with salon and spa services under the flagship of the brand. In retail segment, it targets the young adults with upper- and lower-income group within the age group of 20-45 years.
Positioning -
L'Oréal hired personalities like Blakely Lively and Deepika Padukone to create an image of the company, not just as a brand but as a beauty statement for women. The brand has successfully captured the loyalty of its customers by providing better quality products to the rising middle class. L’Oréal group has been continuously ranked in Fortune 500 list for 23 years.
ESTEE LAUDER
Estée Lauder is an New York based multinational manufacturer
and marketer of prestige skincare, makeup, fragrance and hair care products.
USP- More defined. More conditioned. More beautiful lashes.
Market Share- 12.8% approx.
Segmentation:
Estée Lauder segments its market on the basis of their
behaviour with depends on multi-faceted factors such as age, gender, income,
lifestyle, etc. The company has mostly restricted its business to upper middle
class to wealthy women.
Estée Lauder mostly targets the opulent working women in the
age group of 25-50 years.
Positioning -
High-end beauty products work mostly on brand loyalty and
word of mouth, as opposed to pricing. Estée Lauder positions itself as a brand
that cherishes the women’s uniqueness and celebrate womanhood. The brand is mainly
used by the classes and not the masses.
PROCTER & GAMBLE
P&G is one of the largest multinational companies in the world which began its journey by making and selling soaps. Now, it is among the largest consumer goods corporation, manufacturing various beauty and grooming products such as Head and Shoulders, Pantene, Herbal Essence and Olay.
USP- Touching lives, improving lives
Market Share- - 9% approx.
Segmentation:
P&G has segmented the market on the basis of age. They have different lines of products catering to different age groups and genders such as Pampers for kids, Olay, Herbal Essence, Pantene, Whispers for women and Gilette for men.
Targeting:
P&G's overall marketing process involves strategic target
marketing, a weapon to evaluate the segments the company has developed and
selecting one or more segments for a product. Since the brand cater to variety
of consumers, it needs to do careful analysis of the target market as well.
Positioning:
P&G extensively markets its brand and aims to develop
unique market position for their products. The company positions its brand
image such that customers can easily distinguish their products from others
competitive brands.
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