Target the right TG

Once the market is segmented, the right segment has to be targeted. The Target Group or TG is really significant for success of any product, because every product is meant to cater to the needs of a specific group of people. But identifying the TG is not enough, as the later have to be communicated that there’s a product specifically for them.

Kellogg’s is now a leading brand in breakfast cereal. Kellogg’s came to India almost two decades back and introduced itself as the only product in the category. As such, brand building was more of category building for Kellogg’s.

Kellogg’s targeted the middle class and definitely the upper class for its product. It introduced it as an easy to make, highly nutritious breakfast, that was to be consumed with cold milk. As Indians prefer hot milk for breakfast, Kellogg’s badly missed out in terms of consumer preference. Also, Kellogg’s communicated that small quantity is enough for good amount of nutrition that was contrary to the Indians’ habit of eating a parathas with lots of butter, or a good no. of idlis and as such, its utility in terms of traditional Indian filling diet was limited. Also, Kellogg’s were supposed to be consumed with plain milk, while Indians preferred sugared milk. As such, Kellogg’s completely missed out in its marketing communication.

Understanding the essence of sweetened milk, they introduced sugar-coated Chocos. Also they tried to target kids by introducing various flavors. They even introduced biscuits to build brand awareness among middle class or common Indian people. But the strategy that worked for Kellogg’s is introduction of Iron-Shakti that is good for fledgling minds.

Now the target was middle class mothers who are very particular about their kids’ career and as such, wants to supplement them with nutrients required for better development of their brain and thereby career.

As such, right TG is really significant for every product and brand.   

Essence of Segmentation

·         The world of brands really fascinates me, and  I feel that creation of a brand is full of fantasies. Every time the marketers work on a brand, they come out with strategies, that are just beyond the scope of thinking of common people. To transform a product in to a brand, there are certain prerequisites, the first being the right Segmantation, as only the right consumer segment can appreciate your product and also your brand, thereby building the brand.

·        Segmantation is a process of bringing like-minded people together, so that your brand can cater to thier needs, which are more or less homegenous. Marketers cannot sell everything to everyone. As such, segmentation is the key, where you segment the population on various criteria and parameters, and then target the segment that can be best served by your product. 

Segmantation can be demographic as well as geographic. The marketers generally follow Socio-Economic classification to segment the population. The various Socio-Economic classes (SECs) differ in terms of education, occupation, income and various related parameters. There are five SECs namely A,B,C,D and E. Also, segmentation can be on the basis of social status and as such, there are seven segments like upper upper class,upper middle class,lower middle class, upper lower class and so on.Each of these classes (segments) have different characteristcis and require specific products to fulfill thier needs and expectations.    

 Segmantation is a necessary step in order to target the right customer, and thereby fulfill the sole aim of a business which is sales and henceforth the profits.

 

Why do brands get commoditised?

Every organisation wants to build its brand, as in this competitive era, when an array exists for every product, brand name becomes the differentiating factor. As such, in real sense, The essence of a brand is greater than the respective product. Brands do come, bloom and continue to enhance their effect and influence over time. But their have been brands that fade with time. They become more like a commodity, that is they loose the basis of thier existence as brand, that is, Differentiation. Such brands are called commoditised brands.

All brands are vulnerable to commoditisation and as such, its crucial to beat brand commoditisation. To know more on the topic, I carried out a research on it, and came out with the following article.

Commoditization or comodification is the transformation of a brand into a commodity, which is a product without qualitative differentiation. Brand commoditization, is a situation when a brand becomes a commodity, i.e., a brand becomes an undifferentiated product and needs a serious brand rethink. Terms like brand identification become irrelevant. This situation is advantageous to consumers as the price of the product goes down as a part of traditional strategy to sustain in a saturated market, but it has an adverse affect on the organizations.

The main reason why a brand gets commoditized is...

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