Segmentation, Targeting & Positioning

The STP process demonstrates the link between an overall market and how the company chooses to compete in that market. The goal of the STP process is to guide the organization to the development and implementation of an appropriate marketing mix, as highlighted in the following diagram - 

Segmentation, targeting and positioning comprise of a 3 stage process –

1. Segmentation- The needs, wants and aspirations of all the people in the population may not be the same. Someone may prefer taste over health while some other person may compromise on the taste of an item for its health benefits. In the process of segmentation, marketers divide the entire market into groups on the basis of the types of customers that exist. They identify and profile distinct groups of buyers who might prefer a particular product over the other. This profiling is carried out by examining demographic, psychographic and behavioral differences among buyers.

For my product, Sunfeast Farmlite Health Cookies, a segmentation analysis can be done to analyze the type of consumers targeted by the brand.

      2. Targeting – After identifying the market segments, the marketer decides which segment will provide the greatest opportunities which become its target markets. Target markets are chosen on the basis of how competitors are serving the existing segments, the size of the segment and its growth prospects and the analysis of how the company’s offering will serve the consumer’s needs.

      For Sunfeast Farmlite Biscuits, the target market can be– 

     Closet Snackers - This group was chosen as the primary target market due to their positive disposition towards biscuits and crackers. They also have the positive trait of being a heavy usage group even though they are a relatively small percentage of the snacker market. It is believed that the younger females within this segment will be more adventurous to try out a new product with these unusual ingredients.

    Healthy Snackers - This group is seeking something that is nutritious and low in artificial additives. These are recognized qualities of the product. They are better educated and may be more receptive to an educational program explaining the health benefits of the product.

     3. Positioning - The final step of the process includes implementing the targeting. It involves the target market’s perception of the product’s key benefits and features, relative to the offerings of competitive products.

   Sunfeast Farmlite Biscuits have been positioned as a tasty and nutritious snack. The company differentiates itself on the basis of taste, and because of that it has two variants. Competitors such as Britannia do not have variants in the oats biscuit category.