SEGMENTING, TARGETTING, AND

POSITIONING
1. SEGMENTATION: Segmenting
means dividing total market into
different parts or Groups.

Companies are grouping the

Rural Customers in different
segments.

Segmentation is done for Similar

customers.

Companies have specialized

products & Services for each group.

 - Companies concentrated in Urban

Market as their segment which
comprises of 25% population but
contributing 75% of the revenue.
- Now there is saturation in urban
market in recent years.
- There is a growing demand in
Rural Markets.
- Rural market is increasing fast.

 - Thus, the Rural Market is important

segment for Companies or Marketers.
Example: HUL v/s Nirma
- HUL launched detergents SURF
and was market leader till 1980.
- In 1980, a small firm NIRMA
Chemicals
Launched detergent powder for
Middle and lower-income customers.

 NIRMA- Washing PowderNIRMA, was the lowest priced

branded washing powder available in
every grocery & Cooperative Stores.
It was liked by middle-class
housewives and were happy with
results of NIRMA.
Nirma captured good market within
short period against SURF. Nirma had
an impact on higher-income families
also.

 Then, in 1984 HUL conducted Market

Research across the country.
Research revealed that different incomegroups of customers had varying
expectations from detergents & Washing
powders.
HUL launched Three Varieties:

1. Sunlight
(yellow in colour),

2. Wheel
(Green in colour),
and

3. Rin
(Blue in colour).

For different market segments

(regions) these products were
launched. Part of lost market was
re-captured by HUL.
When economy develops,
Consumer choice and their
requirements also increases.
In this situation, the Segmenting,
the Targetting and the Positioning
should be done by the
Marketers/Companies.

Rural Markets in India started growing

rapidly from 1990s (after LPG).
For penetrating Rural Markets the
Marketers/Companies need to develop
different strategies for different customers.
CONCEPT OF SEGMENTATION:
For attracting customers, three key
decisions are involved :1. Segmenting the Customers, (dividing
class of customers).

2. Targetting the Customers, (means

aiming at particular group/class of
customers, and
3. Positioning the Customers (means
proper place to keep the product for
customers.
SEGMENTING THE CUSTOMERS:
Rural area have various basis for
segmenting people living in Rural area.
- I-Category: Farmers Segment:
(i) Big Farmers (ii) Medium Farmers
(iii) Small Farmers (iv) Marginal Farmers

 (v) Agriculture Labourers.

Their income level, life styles and
Behaviour are different from each other.
II Category: NON-FARMERS: (25% of
Rural Population):
(i) People doing Non-Farm Activities.
(ii) Self-Employed Farmers
(iii) Salaried Employees
(iv) Micro Entrepreneurs (v) Traders.

 III- Category: Rural families living

in Urban area. They have different
life-style, behaviour and buying
decisions.
Thus, different category of farmers
and the segment of Rural Market
have different Behaviour, Income
level and Buying decision. The
Marketers have to study these
customers thoroughly before
launching any product in Rural

HETEROGENEITY IN RURAL
MARKET:
- Rural Market is Heterogeneous in
Nature (different type not similar).
- Heterogeneous means diverse in
Character i.e. composed of diverse
elements.
- Thus, Rural Market is of many
type or different kind.
- Different Region with different
Socio-culture (different caste-based
population).

 - Different size of Population & different

density of population.
- Different infrastructural
Developments: There are BIMARU States v/s. others
- Different Media exposure levels :
(a) Media Dark regions
(b) Media Grey regions
(c) Media-Green regions

 - There is variation in Literacy levels

(Bihar v/s Kerala)

- Difference in income-levels and
patterns of Income flow (farmer v/s. Daily
wage earners or Salary Earner)
- Family Structure (Large Joint family v/s
Small nuclear families).
- Variation in climate (Hot & Cold
climate)
Hot-climate in South India- Talcum
powder & Deo market, and Chyanprash
in winter in cold climate

 - Difference in Food-habits:
South India Rice& Coffee are
liked
Eastern India Low milk
availability:
Powder Milk can be marketed there.
- Less Supply of Electricity :- (East
India)
Sale of Flashlights, Batteries,
Torch-cell is possible.

Pre-requisites for Effective

Segmentation
1. Measurable:
- Size of Rural Market should be known
- Purchasing Power of Rural Market
should

be known
- Profiles of Rural Consumers should be
known
Monthly income can be measured in Urban
area but in rural areas it cannot be
measured directly due to a non-uniform
income pattern and multiple sources of

 2. Accessible:( Connectivity)
- Reaching Rural Consumer is
important.
- Now development of Roads &
Telecommunication is taking place,
hence reach to rural area is possible.

 3. Differentiable:- (Rural v/s

Urban)
- Response of urban market and
rural market are different, for some
products.
For Example for buying Motor
Cycle- Rural Consumers give
importance to (i) Sturdiness,
(ii) Mileage, and

 Whereas , urban consumer look for : (i) Style, Shape

(ii) Power, and Mileage
(iii) Beauty/Look/appreciation by
others.
4. Substantial:- (value &
existence)
The segment of market should be
Homogeneous and Large so as to
give profit to the Marketing Company.

Pre requisites for effective

segmentation
1.
2.
3.
4.

Market
Market
Market
Market

should
should
should
should

be
be
be
be

Measurable
Accessible
Differentiable
Substantial

1. Measurable Segment
Size of rural market should be
known
Purchasing power of rural
population should be known (income
level)
Profiles of rural consumers should
be known. (Details of families)
Then on the basis of these points a
rural market can be divided or
segmented for launching a product.

2. Accessible Segment
Reaching rural consumer is important
With Development of roads and
telecommunications reach is possible
Earlier Mobile-vans were used.
Distributors and retailers can be
reached easily
Hence, now rural market is accessible.
Big Village, Towns, Big Towns, District
level market are well connected by Roads.

 The effective means of reaching rural

folk is possible by participation in
HAATS
organized weekly almost in all areas.
Several Companies are
attending HAATS to display their
product in Rural Areas.

3. Differentiable
Response of rural and urban markets
are different, for some products.
For example :
Urban market is brand oriented
Rural market is utility and need
oriented.

 Another Example can be regarding

Buying Wrist watches. The Rural
consumers differ with urbans. Rural
buyers are more worried about the
Value for money and weigh the
watch in hand to know how heavy it
is.

On the contrary, urban

consumers prefer light ones with
latest technology.

4. Substantial (profitable):
The segment of market should be
homogenous and large so as to give
profit to the marketing company.
The attitude , views ,education,
language and preferences of
consumers, thinking should be
similar. It is available in urban
market but it is not similar in Rural
Market.