Segmentation, Targeting and Positioning

Segmentation:

Market Segmentation is identifying and categorizing of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. Generally three criteria can be used to identify different market segments:

1.   Homogeneity (common needs within segment)

2.   Distinction (unique from other groups)

3.   Reaction (similar response to market)

    

Hair oil category is aimed at consumers in both segments- urban and rural regions as it is a weekly used, essential product. Parachute has its market base in India as well as international markets in South-East Asia, Gulf, Bangladesh, UAE and Egypt. It focuses explicitly on middle aged and young women. In order to penetrate the rural market, Parachute came up with bottle shaped Re 1 sachets. Also, variations of bottle sizes are easily available too.

Targeting:

Targeting refers to direct all activities, campaigns and energy towards a specific market segment or a section of people. Following are the types of market targeting:

1.   Mass Target Marketing

2.   Individual Target Marketing

3.   Differentiated Target Marketing

4.   Product Specialized Marketing

5.   Market Specialized Marketing

6.   Niche Target Marketing

Initially,  the target market was females of all age groups who used coconut oil. However, Parachute has expanded its target audience had has now extended its product line for kids (Parachute Starz) and for people with fair fall problems (Parachute Therapie) or people who seek fragrant oils (Parachute Advansed Jasmine).

Positioning:

Positioning is a marketing strategy that aims to make a brand occupy a distinct position, and differentiate itself from other brands in the customer’s eyes. Companies apply this strategy either by emphasizing the distinguishing features of their brand (what it is, what it does and how, etc.) or they may try to create a suitable image (inexpensive or premium, utilitarian or luxurious, entry-level or high-end, etc.) through advertising. It is said that once a brand is positioned, it is very difficult to re-position it without destroying its credibility.

Parachute has always established itself as a natural product for healthy hair. Parachute hair oils have been positioned as everyday use hair care products. Parachute has been able to leverage this position as Parachute is a pioneer and hardly had any competitors earlier.Parachute always sticks to its core values and position of being a coconut hair oil brand that offers purity and quality. Building on that credibility, Parachute keeps pivoting around its position and modernizes its appeal according to the demand.