This document provides an overview of marketing segmentation strategies used by Cadbury and Parle. It discusses how Cadbury segments based on product size, geography, and occasion. Cadbury targets all age groups with different product sizes and celebration packs. Parle also targets all ages and socioeconomic groups with Parle-G, distributing widely through a large network of wholesalers and retailers. Both companies use mass marketing approaches to target the broad market affordably.

1. Marketing
Segmentation

2. Contents
• Evolving marketing strategies
• Product variety
• Target marketing
• Requirement of marketing segment
• Marketing segmentation
• Benefits and limitations
• Why segmentation
• Segmentation in Cadbury
• Segmentation in parle

3. Evolving Marketing Strategies
• Mass Marketing :The term mass market refers to a large,
undifferentiated market of consumers with widely varied backgrounds.
Products and services needed by almost every member of society are
suited for the mass market. Such items as electric and gas utilities, soap,
paper towels and gasoline, for example, can be advertised and sold to
almost anyone, making them mass market goods
• Mass Marketing –
• An attempt to appeal to an entire market with one basic marketing
strategy utilizing mass distribution and mass media. Also called
undifferentiated marketing.
• The appeal of mass marketing is in the potential for higher total profits.
Companies that employ the system expect the larger profit to result from
(1) expanded volume through lower prices and (2) reduced costs through
economies of scale made possible by the increased volume.
• Henry Ford applied the concept in the automobile industry. His Model T
was conceived and marketed as a "universal" car—one that would meet
the needs of all buyers.

4. Product Variety
• After the mass marketing strategy another
strategy with similar characteristics but
overcoming its predecessor’s shortcomings came
into existence. That is product variety strategy.
• An attempt to appeal to the entire market with a
huge variety of products produced in mass is
made.
• However, like Mass marketing in this case also the
customers needs & wants are not taken into
account while developing the product.

5. Target Marketing
• Is a market segmentation and market coverage
strategy whereby a product is developed and
marketed for a very well-defined, specific
segment of the consumer population.
• Target marketing is particularly effective for small
companies with limited resources because it
enables the company to achieve a strong market
position in the specific market segment it serves
without mass production, mass distribution, or
mass advertising. It enables firms to capitalize on
the respective serve market share

6. Requirements of Market Segments
In addition to having different needs, for
segments to be practical they should be
evaluated against the following criteria:
• Identifiable: the differentiating attributes of
the segments must be measurable so that
they can be identified.
• a

7. • Accessible: the segments must be reachable
through communication and distribution
channels.
• Measurable: It has to be possible to
determine the values of the variables used for
segmentation with justifiable efforts. This is
important especially for demographic and
geographic variables. For an organization with
direct sales (without intermediaries), the own
customer database could deliver valuable
information on buying behaviour (frequency,
volume, product groups, mode of payment
etc).

8. • Substantial: the segments should be
sufficiently large to justify the resources
required to target them.
• Unique needs: to justify separate offerings,
the segments must respond differently to the
different marketing mixes.
• Durable: the segments should be relatively
stable to minimize the cost of frequent
changes.

9. Market Segmentation
• Market Segmentation is the sub-dividing
of customers into homogenous sub-set of
customers where any sub-set may
conceivably selected as market target to
be reached with distinct Marketing Mix –
• Philip Kotler

10. • Segmentation is essentially the
identification of subsets of buyers within a
market that share similar needs and
demonstrate similar buyer behaviour. The
world is made up of billions of buyers with
their own sets of needs and behaviour.
Segmentation aims to match groups of
purchasers with the same set of needs and
buyer behaviour. Such a group is known as
a 'segment'.

11. Benefits and Limitations
Benefits:
• The Organisation gets to know its customers better.
• Provides guidelines for resource allocation.
• It helps focus the strategy of the organisation.
Limitations:
• Targeting multiple segments increases marketing costs.
• Segmentation can lead to proliferation of products.
• Narrowly segmenting a market can hamper the
development of broad-brand equity.

12. Why Segmentation?
• To develop marketing activities
• Increase marketing effectiveness
• Generate greater customer satisfaction
• Create savings
• To identify strategic opportunities and niches
• Allocation of marketing budget
• Adjustment of product to the market need
• To estimate the level of sales in the market
• To overcome competition effectively
• To develop effective marketing programmes
• To contribute towards achieving company goals

14. Bases for segmenting consumer
market

15. Psychographic segmentation

16. • Segmentation is used mainly to target a
certain group from within a population.
Psychographic segmentation is one which uses
peoples lifestyle, their activities, interests as
well as opinions to define a market segment.
Psychographic segmentation is quite similar to
behavioral segmentation. But psychographic
segmentation also takes the psychological
aspects of consumer buying behavior into
accounts

17. Here are some factors which help
divide a population based on
psychographic segmentation.

18. • Lifestyle – There are various segments which have
become popular in retail but one of the most popular
segments is the lifestyle segment. Everyone has
different clothing habits based on their lifestyle. The
customer might be school going, college going, office
going or other. Thus by lifestyle we mean, where does
the customer stand in his life cycle. Similarly, the
lifestyle of a rural area customer might be different
from urban areas. That is how automobiles carry out
promotions. More of BTL promotions are carried out in
rural areas where rugged automobiles are more in
demand and ATL promotions are carried out in urban
areas where esteem and buying power plays a major
role. Thus a consumers lifestyle can put him in one
separate segment as per the marketer.

19. • Activities interests and opinions – A subset of lifestyle, activities interests
and opinions also affect consumer buying behavior.
• Values attitudes and lifestyle – Another concept which is a subset of the
lifestyle segment is values attitudes and lifestyles .
• Social class – Different consumers fall in different social
classes. This depends mainly on their buying power. The
buying power is affected by the background of the customer,
his income as well as his spending habits. The customer will
always buy to maintain his social class. Thus premium brands
like gucci, longines or others always target the Sec A segments
because they know that these would be the classes capable of
buying their products. These brands have to keep in mind
both – Lifestyle as well as social class.

20. • Personality – Personality in psychogaphic
segmentation is dependent on both – lifestyle as well
as social class. A person will have a rich personality
only if he has high buying power as well as the taste in
clothes to maintain such a lifestyle. Thus the term
“Brand personality” came into effect. The reason for
that is that different brands target different
personalities. A simple example would be if i ask you
what comes in mind if i talk about a “Harley davidson
biker” more commonly known as Hogs. They would be
people unshaven, tall, manly who like to live a rough
lifestyle. That’s the personality built for harley over
time. Thus brands target their customers even based
on their personality.
• Overall, these factors are intangible in nature and need
in depth market research to determine which lifestyle
or social class to target. There are companies which are
dedicated to the art of psychographic segmentation.

21. Segmentation in

22. cCompany ’s Profile

23. Distribution Strategy
• Factory
Wholesaler
Customers
Retailer

24. Segmentation
• Psychographic segmentation: Cadbury dairy milks
product segmentation is done on the basis of
‘size’ as bars, small blocks, large blocks.
• Geographic segmentation: rural, urban and semi
urban.
• Behavioral Segmentation: for eating then and
there (“khane walo ko khane ka bahana
chahiye”as its tagline) and for gifting it to
someone(“celebration pack”)

25. Target
• When logically analyzing, we tend to deduce
that CADBURY DAIRYMILK targeted only the
children aged between 4 to 16.
• But it is worth admiring that how beautifully
Cadbury dairy milk stretched its perspective
target group into an infinite age group

26. Positioning
• According to the companies website its
positioning “Delivering recipes for life’s upbeat
occasions- i.e no matter what your humour or
the ocassion, Cadbury dairy milk will provide
the best accompaniment.
• The above point proves true to us as we find
products for different ocassions like Rakhi
Celebration packs and Diwali celebration
packs getting unpacked before us.

27. Marketing
mix
Product
PlacePrice
Promotion

28. Price

29. Product Mix
• Dairy milk product runs under the label brand
of ‘Cadbury’
• Its packaging is very beautiful and attractive to
a child's eye.

30. Place
• Cadbury products is produced in Brimingham
at bournville .
• In India it has its sales offices at Mumbai
Kolkata Delhi and Chennai.

31. PROMOTION

32. Segmentation in

33. About

34. Distribution Strategy

35. Parle Target
• • Parle goods are consumed by people of all ages, from
the rich to the poor, living in cities & in villages. • While
some products are used for breakfast, •For some it is a
complete wholesome meal. •For some it's the best
accompaniment for tea, •While for some it's a way of
getting charged whenever they are low on energy.
Parle company practices mass marketing for Parle- G
which appeals to masses. It is a product liked by
everyone and does not cater only to a specific group or
part of the whole market. Thus it is mass production,
mass distribution and mass promotion of Parle for all
buyers.

36. Segmentation
• • Parle is consumed by people of all ages,
from the rich to the poor, living in cities & in
villages. • While some have it for breakfast,
for others it is a complete wholesome meal. •
For some it's the best accompaniment for tea
• While for some it's a way of getting charged
whenever they are low on energy.

39. Price mix
• • Parle has adopted the Market Penetration
strategy i.e. low price along with capturing of
a large market
• • Also they focus on providing good quality
products at the same time, which means it
uses the value pricing method.
• • Profit margin for distributors is 4% and for
retailers is 10-12%

40. Place mix
• • The extensive distribution network, built
over the years, is a major strength for Parle
Products.
• • Parle has nearly 1,500 wholesalers, catering
to 4,25,000 retail outlets directly or indirectly.
A two hundred strong dedicated field force
services its huge wholesalers & retailers
network.

41. Promotion mix
• Advertising - It was advertised mainly through
press ads. The communication spoke about the
basic benefits of energy and nutrition.
• • The next level of communication associated the
brand with the positive values of life like honesty,
sharing and caring. Just a few months back a
reminder TV commercial was launched for Parle-
G where the product is being called ‘hindustan ki
takat’
• • Recently Parle has started the use of celebrity in
their advertisements

42. Product Mix
• Established in 1929 1st brands – Parle Glucose
and Parle Monaco Market leader in many
products Won acclaim at the Monde selection
since 1970 35% share of the total biscuit market
15% share of the total confectionery market
14 manufacturing units for biscuits & 5
manufacturing units for confectioneries Parle
has largest such manufacturing units in India
Annual turnover 2000 crores It has provided its
products to the mass with the affordable range.

43. THANK YOU