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INTRODUCTION
DURABLE GOODS
'Durable Goods' or Consumer Durable Goods may be defined as item of consumption or merchandise which lasts for a very long duration of time even if they are used regularly i.e. the decline in the quality is gradual. They are also known as indestructible goods because they wear out very slowly in spite of regular utilization. Some Common examples of durable goods are vehicles (it may be self owned or on lease), or any other forms of tool for domestic usage. Other common household durable goods are Television, Microwave Oven, and Wardrobe etc.

NON DURABLE GOODS

In contrast to durable goods, a non durable goods is an equipment which are used or consumed for only a short span of time are called Non Durable Goods or Soft Goods. Though there is no definite time span as to how long a non durable goods will last but a general consensus has been reached that any goods, service or equipment either household or official, self owned or leased, which last for less than three years can be classified as a non durable goods. Some common examples of non durable goods are food items, apparels etc.Though in some cases apparels are considered as Semi Durable Goods as well.

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VALUE-MARKETING
The value of a product is the mental estimation a consumer makes of it. Formally it may be conceptualized as the relationship between the consumer's perceived benefits in relation to the perceived costs of receiving these benefits. It is often expressed as the equation:

Value = Benefits / Cost

Value is thus subjective (i.e., a function of consumers' estimation) and relational (i.e., both benefits and cost must be positive values). There are parallels between cultural expectations and consumer expectations. Thus pizza in Japan might be topped with tuna rather than pepperoni, as pizza might be in the US; the value in the marketplace varies from place to place as well as from market to market.

MARKET SEGMENTATION
Market segmentation provides a method to divide or segment the market into narrow Segments. A. Market Segmentation: Markets consist of buyers, and buyers differ in one or more ways. They may differ in their wants, resources, locations, buying attitudes, and buying practices. Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs. Companies today recognize that they cannot appeal to all buyers in the marketplace or at least not to all buyers in the same way. Buyers are too numerous, too widely scattered, and too varied in their needs and buying practices. Moreover, the companies themselves vary widely in their abilities to serve different segments of the market. Rather than trying to compete in an entire market, sometimes against superior competitors, each company must identify the parts of the market that it can serve best and most profitably.

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Thus, most companies are more selective about the customers with whom they wish to connect. Most have moved away from mass marketing and toward market segmentation and targeting identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each. Instead of scattering their marketing efforts firms are focusing on the buyers who have greater interest in the values they create best. B. Steps in Target Marketing: Figure shows the three major steps in target marketing. The first is market segmentation dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviors who might require separate products or marketing mixes. The company identifies different ways to segment the market and develops profiles of the resulting market segments. The second step is market targeting evaluating each market segment's attractiveness and selecting one or more of the market segments to enter. The third step is market positioning setting the competitive positioning for the product and creating a detailed marketing mix. We discuss each of these steps in turn. C. Levels of Market Segmentation: Because buyers have unique needs and wants, each buyer is potentially a separate market. Ideally, then, a seller might design a separate marketing program for each buyer. However, although some companies attempt to serve buyers individually, many others face larger numbers of smaller buyers and do not find complete segmentation worthwhile. Instead, they look for broader classes of buyers who differ in their product needs or buying responses. Thus, market segmentation can be carried out at several different levels. Figure shows that companies can practice no segmentation (mass marketing), complete segmentation (micromarketing), or something in between (segment marketing or niche marketing). LEVELS OF MARKETING SEGMENTATION a) Mass Marketing Companies have not always practiced target marketing. In fact, for most of the 1900s, major consumer products companies held fast to mass marketing mass producing, mass distributing, and mass promoting about the same product in about the same way to all consumers. Henry Ford

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epitomized this marketing strategy when he offered the Model T Ford to all buyers; they could have the car in any color as long as it is black." Similarly, Coca-Cola at one time produced only one drink for the whole market, hoping it would appeal to everyone. The traditional argument for mass marketing is that it creates the largest potential market, which leads to the lowest costs, which in turn can translate into either lower prices or higher margins. However, many factors now make mass marketing more difficult. The proliferation of distribution channels and advertising media has also made it difficult to practice "one-size-fitsall" marketing. b) Segment Marketing A company that practices segment marketing isolates broad segments that make up a market and adapts its offers to more closely match the needs of one or more segments. Thus, Marriott markets to a variety of segments business travelers, families, and others with packages adapted to their varying needs. Segment marketing offers several benefits over mass marketing. The company can market more efficiently, targeting its products or services, channels, and communications programs toward only consumers that it can serve best and most profitably. The company can also market more effectively by fine-tuning its products, prices, and programs to the needs of carefully defined segments. The company may face fewer competitors if fewer competitors are focusing on this market segment. c) Niche Marketing Market segments are normally large, identifiable groups within a market for example, luxury car buyers, performance car buyers, utility car buyers, and economy car buyers. Niche marketing focuses on subgroups within these segments. A niche is a more narrowly defined group, usually identified by dividing a segment into sub segments or by defining a group with a distinctive set of traits who may seek a special combination of benefits. Whereas segments are fairly large and normally attract several competitors, niches are smaller and normally attract only one or a few competitors. Niche marketers presumably understand their niches' needs so well that their customers willingly pay a price premium.

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d) Micro marketing Segment and niche marketers tailor their offers and marketing programs to meet the needs of various market segments. At the same time, however, they do not customize their offers to each individual customer. Thus, segment marketing and niche marketing fall between the extremes of mass marketing and micro marketing. Micro marketing is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations. Micro marketing includes local marketing (Local marketing involves tailoring brands and promotions to the needs and wants of local customer groups cities, neighborhoods, and even specific stores. Citibank provides different mixes of banking services in its branches depending on neighborhood demographics) and individual marketing (tailoring products and marketing programs to the needs and preferences of individual customers). D. Segmenting Consumer Markets: There is no single way to segment a market. A marketer has to try different segmentation variables, alone and in combination, to find the best way to view the market structure. The major variables that might be used in segmenting are major geographic, demographic, psychographics, and behavioral variables. a) Geographic Segmentation Geographic segmentation calls for dividing the market into different geographical units such as nations, regions, states, counties, cities, or neighborhoods. A company may decide to operate in one or a few geographical areas, or to operate in all areas but pay attention to geographical differences in needs and wants. It is common to localize products, advertising, promotions, and sales efforts to fit the needs of geographical areas (regions, cities, and even neighborhoods). b) Demographic Segmentation Demographic segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, and nationality. Demographic factors are the most popular bases for segmenting customer groups.

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One reason is that consumer needs, wants, and usage rates often vary closely with demographic variables. Another is that demographic variables are easier to measure than most other types of variables. Even when market segments are first defined using other bases, such as benefits sought or behavior, their demographic characteristics must be known in order to assess the size of the target market and to reach it efficiently. Demographic variables are easier to measure than most other types of variables. KEY TERMS Market segmentation Dividing a market into smaller groups Market targeting Evaluating each market segment's attractiveness and selecting one or more of the market segments to enter Market positioning Setting the competitive positioning for the product Geographic segmentation Dividing the market into different geographical units Demographic segmentation Divides the market into groups based on variables such as age, Gender, family size, family life cycle, income, occupation, education, religion, race, and nationality. Behavioral segmentation Involves dividing a market into groups based on consumer knowledge, attitudes, uses, or responses to a product.

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a) Undifferentiated Marketing Using an undifferentiated marketing (or mass-marketing) strategy, a firm might decide to ignore market segment differences and go to the whole market with one offer. This mass-marketing strategy focuses on what is common in the needs of consumers rather than on what is different. The company designs a product and a marketing program that will appeal to the largest number of buyers. It relies on mass distribution and mass advertising, and it aims to give the product a superior image in people's minds. As noted earlier in the chapter, most modern marketers have strong doubts about this strategy. Difficulties arise in developing a product or brand that will satisfy all consumers. Moreover, mass marketers often have trouble competing with more focused firms that do a better job of satisfying the needs of specific segments and niches. b) Differentiated Marketing Using a differentiated marketing strategy, a firm decides to target several market segments or niches and designs separate offers for each. General Motors tries to produce a car for every "purse, purpose, and personality." Nike offers athletic shoes for a dozen or more different sports, from running, fencing, and aerobics to bicycling and baseball. By offering product and marketing variations, these companies hope for higher sales and a stronger position within each market segment. Developing a stronger position within several segments creates more total sales than undifferentiated marketing across all segments. Procter & Gamble gets more total market share with eight brands of laundry detergent than it could with only one. But differentiated marketing also increases the costs of doing business. A firm usually finds it more expensive to develop and produce, say, 10 units of 10 different products than 100 units of one product. Developing separate marketing plans for the separate segments requires extra marketing research, forecasting, sales analysis, promotion planning, and channel management. Trying to reach different market segments with different advertising increases promotion costs. Thus, the company must weigh increased sales against increased costs when deciding on a differentiated marketing strategy.

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The McDonalds
The story of McDonalds started in 1954, when its founder Raymond Kroc saw a hamburger stand in San Bernardino, California and envisioned a nationwide fast food chain. Kroc proved himself as a pioneer who revolutionized the American restaurant industry. Today McDonalds is the California worlds largest fast food chain serving 47 million customers daily. McDonalds is now one of the most valuable brands globally, worth more than $25 billion. The Golden Arches and its mascot Ronald McDonald have gained universal recognition. Though the company has roots in the US, McDonalds today has become an accepted citizen of the world. Year Events

1955 Ray Kroc opens his first restaurant. McDonalds Corporation is created 1957 Quality, Service, Cleanliness and Value (QSC & V) becomes company motto 1963 Ronald McDonald makes debut

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1965 The company goes public 1968 Big Mac is introduced` 1974 Happy Meal is launched 1996 McDonalds opens in India, the 95th country Franchise Model Only 15% of the total number of restaurants are owned by the Company. The remaining 85% is operated by franchisees. The company follows a comprehensive framework of training and monitoring of its franchises to ensure that they adhere to the Quality, Service, Cleanliness and Value propositions offered by the company to its customers. Product Consistency, By developing a sophisticated supplier networked operation and distribution system, the company has been able to achieve consistent product taste and quality across geographies. Act like a retailer and think like a brand , McDonalds focuses not only on delivering sales for the immediate present, but also protecting its long term brand reputation.

McDonalds in INDIA
McDonalds entered India in 1996. McDonalds India has a joint venture with Connaught Plaza Restaurants and Hard Castle Restaurants. Connaught Plaza Restaurants manages operations in North India whereas Hard Castle Restaurants operates restaurants in Western India. Apart from opening outlets in the major metros, the company is now expanding to Tier 2 cities like Pune and Jaipur. CHALLENGES IN ENTERING INDIAN MARKETS Regiocentricism: Re-engineering the menu - McDonalds has continually adapted to the customers tastes, value systems, lifestyle, language and perception. Globally McDonalds was known for its hamburgers, beef and pork burgers. Most Indians are barred by religion not to consume beef or pork. To survive, the company had to be responsive to the Indian sensitivities. So McDonalds came up with chicken, lamb and fish burgers to suite the Indian palate.

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The vegetarian customer, India has a huge population of vegetarians. To cater to this customer segment, the company came up with a completely new line of vegetarian items like McVeggie burger and McAlooTikki. The separation of vegetarian and non-vegetarian sections is maintained throughout the various stages. SEGMENTATION, TARGETING AND POSITIONING McDonalds uses demographic segmentation strategy with age as the parameter. The main target segments are children, youth and the young urban family. As shown above, kids reign supreme in FMCG purchase related to food products. So to attract children McDonalds has Happy Meal with which toys ranging from hot wheels to various Walt Disney characters are given (the latest in this range is the toys of the movie Madagascar). For this, they have a tie-up with Walt Disney. At several outlets, it also provides special facilities like Play Place where children can play arcade games, air hockey, etc. This strategy is aimed at making McDonalds a fun place to eat. This also helps McDonalds to attract the young urban families wanting to spend some quality time while their children have fun at the outlet. To target the teenagers, McDonalds has priced several products aggressively, keeping in mind the price sensitivity of this target customer. In addition, facilities like Wi-Fi are also provided to attract students to the outlets like the one at Vile Parle in Mumbai. Mc Donalds mein hai kuch baat

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STARBUCKS;
Starbucks is the leading retailer and roaster for brand specialty coffee in the world. It has over 7,500 stores located worldwide. As Starbucks continues to expand, it will encounter all sorts of new product markets, with new and demanding customers for unique and appealing products. Starbucks has begun by introducing an extension of the Frappuccino line targeted to the noncoffee drinker. Entering this new market, Starbucks faces many challenges from having to compete to retain brand recognition of its primary products, yet increase awareness of its new product line. Our analysis and research of the market have resulted in keys findings as follows: The new Frappuccino blended beverages, also known as the Summer Drink flavors will help Starbucks reposition itself in the developing non-coffee iced-beverage market; Starbucks will also need to enhance the product perception to maintain the perceived high quality. Customers of this segment are sensitive to taste and quality of food product and nutritional data. With this new line extension, Starbucks will be facing many new competitors such as Jamba Juice, Orange Julius and other local non-coffee iced-beverage providers. Special care must be implemented to

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maintain Brand equity for its primary product, and not become to diversified the current customers seek alternatives. Based on our research, we found that the married couples age 25-54 with children to be the primary potential target market. Additionally, we have concluded generating awareness about the product via a Web Campaign would be highly advisable. A Secondary approach would be Network TV or Print Media such as magazines, journals, and newspapers Managerial Problem Starbucks strategic goal is to increase market share of the non-coffee drinker; they have begun by introducing an extension of a product line targeted to this segment. To ensure market growth, Starbucks has repositioned one of its current products, the Frappuccino line, this product has been extended to include 3 new flavors; Double Chocolate Chip Crme, Vanilla Bean Crme, and Strawberries & Crme, introduced throughout the summer months. Faced with the challenge of entering a new competitive market Starbucks must compete to retain brand recognition of its primary products, yet increase awareness of its new product line.

CUSTOMER SEGMENTATION
At first only yuppies went to Starbucks, but now it attracts a much wider demographic of customers including people of different ethnic backgrounds and ages. Today, Starbucks has the striking number of 25 million people visitors in its stores each week. This success is due to the combination of high quality drinks and friendly environment with good music, comfortable chairs, and good services. This creates the Starbucks experience which customers can relate to that lead to brand loyalty. In addition, Starbucks needs to deal with customers cultural preferences in all its worldwide locations to maintain customers loyalty. Segmentation One dimension of segmentation will be demographics (age and household status). We have selected married couples age 25 54 with children to be our primary target market. According to our data in figure 5, we found that these households spend more than other households on nonalcoholic beverages away from home. We also like this segment because the children can consume the coffee-free Frappuccino as well. We expect such events as parents buying the child a Frappuccino as a treat for a soccer game victory, or on a family trip to the beach. We anticipate

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the exciting summertime experience, will remain in the childs mind and will influence their purchase decisions as they mature.

DOVE BEAUTY BAR

Dove is a personal care brand owned by Unilever.It started in 1957 The brand came to India in 1995. It is imported and marketed by Hindustan Unilever Limited (HUL). By the end of the dove firming Real Women Campaign, dove has become a national talking point and was ranked number three in the body lotions market, ahead of Loreal, Garnier, Neutrogena and Olay. In the year 2004, Unilever won the marketer of the year award for its brand Dove

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4 Ps OF MARKETING PRODUCT STRATEGY A combination of moisturizer and softness so as to satisfy the particular need which was earlier not met. Focused on women (non-models), beautiful in their own way. Based on global study on perceptions and attitudes of women with regard to personal beauty and well-being. Point of differentiation-moisturizer and pH =O and also met consumer needs. Strong personal emotional connection between brand and consumers. PRODUCT RANGE Dove soaps PRICING STRATEGY With the entry in Indian market in 1995 it was priced at Rs.50, NOT SATISFACTORY FOR THE CONSUMERS People with higher income level did not consider it worth buying. DOVE then changed its strategy and lowered its price to Rs.28,thereby attracting the upper middle class Indian consumer. Works --- WHY NOT PAY A LITTLE EXTRA IN ORDER TO HAVE GOOD MOISTURISER AND NOURISHMENT. PLACE STRATEGY The distribution channels used is no different that of HUL except Kwality Walls. Competition with home products like, Lux, Pears, Competitive advantage, using 1 distribution channel to provide their various products to retailers. More popular in Metropolitan cities. DISTRIBUTION CHANNELS HUL's products are distributed through a network of 2500 redistribution stockiest covering around one million retail outlets. The general trade comprises grocery stores, chemists, wholesale, kiosks and general stores. HUL provide tailor made services to each of its channel

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partners. 2,000 suppliers and 2000 distributors serve HULs 37 factories reaching 6.3 million outlets. PROMOTION STRATEGY Positioned as REAL BEAUTY and is considered to be good for people of all ages. Various promotional awareness:DOVE Self esteem fund in 2006 AD commercials on TV by doing comparison with other products of same range REAL beauty campaign in 2008 Promotion with the help of study VOICE. The promotional video of dove was seen by over 30 lakhs internet user on the youtube. SEGMENTATION Dove segments the market on the basis of: Demographic segmentation Psychographic segmentation Demographic segmentation: Gender: females (working women) Income: high income groups & upper middle class Psychographic segmentation: it tries to change the psychology of an average looking women that she can look equally beautiful.

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Targeting Targets girls and women of all ages, shapes and sizes. Especially targets the working women as they have busy schedules and cannot take out time for themselves so by using one soap they can get the benefits of soap as well as a moisturizer. Targets on the higher income groups because they are the only people who can afford a soap which is priced at a premium rate (Rs. 28).Dove uses the market specialization concept. Positioning Dove is positioned as a personal care brand. Dove soap positions itself not as a soap but as the mildest bathing bar containing the moisturizer. Points of differentiation: Maximum moisturizing content. As the add campaign of dove says that use it on half of your face and see the difference. Image differentiation: it is now considered as a moisturizing bar and beauty bar. Product life cycle stage: Dove is currently at its growth stage. Price quality inferences: A consumer perceives high prices as an indicator of quality. Dove products are priced at a premium. Product quality leadership: high levels of perceived qualities with price just high enough not to be out of customers. Line stretching: dove launched its soap in 1995 in India and there after launched a range of its beauty products. Product bundling pricing: dove offers a pack of three soaps or so providing a certain amount of discount. Dove offers a set of its product range as a gift pack.

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FRESIN FRIES:
Consumer expenditures for fast food in Singapore rose during the end of the year 2000, followed by the recovery of Singapore's economy. The increasing number of new establishments such as fast food franchises, fancy restaurants and gourmet bakeries around Singapore has shown a significant growth in this sector. Food spending is around 56% of total consumer expenditures in Singapore, and consumer spending on leisure and recreation made up of 13% of total consumer spending. A much broader appeal exists for weekend slots because those are the days when most of otheir core target market enjoys the mall going activities.

Age; Youngsters, single, currently enrolled in college and high school. Family unit; they also appeal to families (young families) with children. Gender; they are targeting both sexes, with a slight skew for males due to their lower attention to dietary concerns.

Income; they are appealing to the medium income individuals and to all in the lower medium income bracket. They have a concept which will have very broad appeal. It is their goal to be the hip destination for fast food cravings. According to a recent public survey of people 15 - 45 years old, 80% of those interviewed like fast food. 90% of them like fast food on a regular basis, and 10% of them claimed that they like

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fast food "very much," or "love" fast food. The survey also provided the following particular reasons for the increasing popularity of fast food:

People have 52 weekends and three long holidays a year. Most of Singaporeans love to window shop, and when they do strolling around the shopping district, they need a quick bite to accommodate their activities.

White-collar workers in offices have stopped bring lunch, and enjoy chicken, hamburger, pizza or other fast food joints in the vicinity.

Parents give more money to kids and students to buy lunch. Fast food is naturally their first choice, because of the brand building effort that heavily targets their age group.

Eating out still remains as Singaporeans' common habit of life. They do not perceive fast food is a luxury, and they enjoy it by bringing their family, especially if they have smaller kids, in the environment of the western-style fast food outlets.

MARKET SEGMENTATION They are targeting young Singaporeans as their primary market. Orchard Road is the place to meet and hang out after school. Due to heavy extra-curricular activities among Singapore's youth, it is common for high scholars to have lunch inside shopping malls, and not at home. They tend to flock to fast food joints inside shopping malls across Orchard Road. Their secondary market segment is the "Working Singaporeans." With so many shopping malls in the vicinity, Orchard Road is the haven for shoppers and job seekers alike. In the new Paragon Shopping Centre, there are more than 8,000 workers currently working as sales persons and boutique staff. There are more than 10 major shopping malls across Orchard

Road, including Ngee Ann City, the biggest shopping mall in the nation, employing more than 50,000 workers. Lastly, Orchard Road is also the destination for tourists staying in the area. The Meritus Mandarin, Crown Prince Hotel, the Hilton, and Popular Hotel are a few of the biggest accommodations in Singapore. Tourists will stroll Orchard Road, hunting for the latest trend in fashion and have no time to stop for a full meal during shopping. Fresin Fries is the alternative for a quick bite while shopping the fancy boutiques in the area.

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Target Market Segment Strategy Fresin Fries intends to cater to the bulk of teenagers and youngsters in Singapore. They have chosen this group for several important reasons. It is their goal to be "the extraordinary fast food place" and they believe that the age group from 15 to 25 is the primary age where brand building efforts could take place. They are on limited or fixed incomes and seek a value/price relationship that will not stretch their budgets. Their secondary target is between the ages of 25 and 37, which are a heavy lounge/restaurant user group. They are more flexible in budgets and seek more than a value/price relationship. Their lunch strategy is dual purposed. First, there are featuring fresh fries to fill Singapore's craving for fast food as most ideas of lunch is a quick bite not a heavy meal. Second, they want to keep the price point at lunch as fair as possible to keep us in competition with other fast food outlets. At S$4.00 for a medium size fries, we are only slightly above the segment, but they are offering much more excitement than the rest of the competition. Our main competitors in this segment are any food outlets within the 300 meter radius along the Orchard Road. In our location, there are Tori-Q, Pizza Walker, Starbucks, Bread Talk, and Rotiboy.

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Tori-Q Tori-Q is locally owned franchise who sells Japanese BBQ skewers. Established in 1998, Tori-Q had expanded its operation into neighboring countries, Indonesia, Malaysia, and Thailand. ToriQ is popular among local teenagers as it offers fast service to its customers. Commonly, Tori-Q outlets are rather small, and can only serve a maximum of 6 guests. It is a choice for those who are in a hurry and would like to grab a quick lunch on the way. PizzaWalker Pizza Walker is a joint venture positioned as gourmet pizza joint in Singapore. Most of its retail outlets are decorated with welcoming ambience, such as flowers and see-through kitchens. Pizza Walker is a good place to hang out, and the place is always full during lunch hour. It has more than enough tables to serve a maximum of 55 guests. Its specialty is all-you-can-eat pizza! Starbucks Starbucks' strategy entering the lunch market had made some impact in Singapore. Usually, a lunch menu in Singapore consists of "fried and BBQ stuff" such as roast pork with rice or the Big Mac. Starbucks is one of the first food retailers that popularized "light and healthy" alternatives such as salad or lean sandwich as an options for Singapore's lunch accommodations. BreadTalk As the most successful franchiser in Singapore, Bread Talk is surely becoming a threat for most food retailers. Bread Talk not only rented most of the retail space along Orchard Road, but now they are doing delivery to offices and apartments nearby. Bread Talk outlets usually consist of a huge see-through kitchen, and bread trays ready for pick-up by customers, with three or four cashiers at front, to speed up the queue. Rumor has it that Bread Talk sold more than 35,000 breads each day in just one of their retail outlets. Rotiboy A Malaysian franchise. Rotiboy is quite popular in the region as it is now expanding into several cities in Indonesia, Vietnam, Thailand, and the Philippines. Rotiboy offers simplicity for quick lunch franchiser, and often considered alternatives for its long queuing rivals.

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ALI CAF:
The art of segmentation - Ali Cafe / Power root It would seem that a Chinese company has managed to corner the Malay coffee market indicates the power of segmentation. The Power root company has used a powerful marketing mix that decided to focus on the Malay (largest segment in Malaysia) by introducing a host of products that uses the Tongkat Ali and Kacip Fatimah ingredients to differentiate themselves from the Market Leader - Nestle with their flagship product Nescafe. It would seem that the promotional mix was also a key factor that allowed Ali Cafe / Power Roor to catch up with the market leader and establish itself as a true Malay based company - it used the celebrity endorsements (local stars and singers - very cheap). They had also decided to FOCUS on 2 segments only - Malay Male and Malay Female - excellent move. Now if we look at the market leader - what is their approach to the situation? They have a one now one Nescafe campaign - very catchy but then it tells people to drink coffee since Nescafe is another name for coffee now. The kick start campaign - aimed at catching the teens - lost cause since the cost involved does not generate the loyalty required, especially since the younger generation now considers Nescafe is an older generation drink (same situation faced by Coke-Cola when Pepsi attacked it)
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The range of new products that have been launched under the Nescafe brand name coffee powder, original, mocha, gold, premium, can coffee drink, host of others that just to complicate to go on with, 3 in 1 coffee mixes, rich, light, breakfast Now this is getting pretty confusing to the customers already.

DANONEs Entry into The Irish Market

In 1997 Danone brought its worldwide expertise in health and nutrition to the Irish market.At that time, despite our agricultural heritage, Irish consumption of fresh dairy products was remarkably low in comparison to Western Europe. Even today, consumption of fresh dairy produce in Ireland is only 10.2 kilos per capita in comparison to 33.2 kilos pre capita in France. Danone realised that there was enormous potential to increase the consumption of fresh dairy products among Irish consumers. It set about fulfilling this goal with a market entry strategy that involved a number of activities: Developing an understanding of market segmentation in the fresh dairy market in Ireland Identifying gaps in the market by identifying unfulfilled consumers needs Introducing Danones unique range products of healthy and tasty brands to deliver new benefits to Irish consumers

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MARKET SEGMENTATION
In order to maximize their ability to satisfy consumers, marketers divide up or segment the market for their products according to different consumer needs and preferences. There are many different ways or bases to segment a market and these include: Geographic Segmentation: Segmenting consumers according to their geographic location. Irish consumers were found to consume less dairy produce than their European counterparts. Demographic Segmentation: Marketers frequently segment their market according to some demographic criteria such as age, gender, occupation, religion or even marital status Psychographics Segmentation: Consumers are segmented according to the different lifestyles or according to their social class groupings or different personality types. In Ireland for example, research into young consumers between the ages of 18 and 24 years of age found that they could be segmented according to different lifestyle groups. Behavioral Segmentation: This involves segmenting consumers according to their knowledge of a product or the way in which they react towards a product. One such way is by grouping consumers according to the benefits that they look for or the occasion on which they use a product. By looking at the breakfast market Danone could see a gap for its ACTIMEL brand. Danone has, through its advertising, highlighted the benefits of a yogurt each morning, thus changing some traditional perceptions of yogurt as only for dessert. Danone also adapted advertising messages to suit different European market expectations. In France, yogurt is typically sold as a plain yogurt, a symbol of good health. Fruit and flavorings come later as advertising emphasizes the health logic. In the UK, the product is often associated with indulgence. Fruits add to the pleasure of eating yogurt. In Spain or Portugal, where fruit is abundant, consumers prefer plain yogurt, eaten as much by children as by adults. In Italy, consumers prefer blended yogurt, while flavored varieties are positioned for very young children. Advertising messages are therefore adjusted accordingly to reflect theses preferences.

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Market Segmentation in the Fresh Dairy Market The fresh dairy market has three major product types yogurts, fromage frais and chilled desserts. Using this segmentation by product type as a basis, Danone studied the Irish market and segmented its brands according to the different benefits that could be delivered to Irish consumers. They identified where their brands were best targeted within the seven key segments in the market Delivering a Unique Range Of Benefits Danone examined the needs of consumers in these segments and concluded that its range of brands could deliver a range of nutritional and taste benefits, which had not previously been available in Ireland. It set about delivering these benefits to three core segments that were underutilized, namely, 1. The Natural Health Segment 2. The Diet Segment 3. The Children Segment. Delivering nutritional benefits to the Natural Health Segment The Natural Health Segment is the fastest growing segment within the fresh dairy product market. Irish consumers are increasingly moving towards products that provide key health benefits. Danone has been instrumental in developing growth within this segment by bringing natural health products to Irish consumers such as Danone Actimel and Danone Activia. In effect Danones entry into this segment has created an increased market for dairy products. Rather than competing with other companies for a market share Danone was instrumental in increasing the actual size of the market itself. Danone Actimel was first launched on the Irish market in 1997 introducing a totally new concept of probiotic yogurt drinks. It contains the unique culture of L.CASEI IMUNITASS which has been shown to help strengthen the bodys natural defenses. As such it is strongly positioned within the Natural Health Segment and appeals to consumers looking for a healthy

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lifestyle. Danone Actimel has grown rapidly to become the number one fresh dairy brand in Ireland with a market share of 14.8%* Danone Activia is one of the fastest growing brands within the Danone product portfolio, and is currently the number two player in the Natural Health segment. Danone Activia contains another unique culture, BIFIDUS ESSENSIS, which helps to improve digestion and keep the body healthy. Bringing new nutritional benefits to the Childrens Segment The unique Danone Gervais range, which includes Danone Gervais Baby and Danone Gervais Toddler, is positioned in the childrens segment. Danone Gervais is the only dairy range specifically formulated to meet babies nutritional needs from the age of 4 months and upwards and is available as a fromage frais and yogurt drink. Delivering important nutrients to the Diet Segment Danone Vitalinea is a range of fat free yogurts enriched with 6 essential vitamins, fiber, and calcium and phosphorous. Because dieting can result in the loss of important nutrients Danone Vitalinea has been designed to replenish important nutrients in a tasty format in both yogurt and a unique adult fromage frais. Success the Danone Way Danones entry into Ireland has acted as a key driver of growth within the overall fresh dairy market due to its heavy emphasis on probiotic yogurts and yogurt drinks. Not only have Danone driven an increase in focus on the health benefits of yogurt, the activities of Danone have rejuvenated interest in the whole fresh dairy market. The market grew by 22.3% in the year 2001 and is currently valued at over 150 million. Growth is expected to continue over the next five years and turnover within the category is expected to exceed 240 million by 2005.

Over the past three years Danone has been the fastest growing player commanding 25.6%* in the market and 74%* in the natural health market. Danone is also the highest spender in the Dairy sector on advertising and delivers some 60% of advertising spend in this sector. In 2002, through its extensive Consumer Relationship Marketing programmed Danone will further consolidate its

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contribution to the fresh dairy market by establishing direct relationships with some 150,000 Irish households.

CONCLUSION:
We know that marketing is to create value that is greater than the value created by the compititors.Value for the customer can be increased by expanding and improving product or service benefits by a combination of these elements that is dove in India has reduced its product price since the premium customers are not feeling worth of it, by then it targeted middle class people by reducing cost. Whereas starbucks has provided wifi in terms of service to attract youth in USA. Mc Donalds has re positioned the product from beef to chicken and vegetarian products for Indian customers. where as Fresin fries has concentrated on teenagers and middle income groups in order to maintain value/price relationship.ali caf has segmented as Malay male and Malay female simple segmentation in order to compete the well known brands like Nescafe and not but not the least, Danone is changing Irish consumers perception of the fresh dairy market. It has injected growth into what was a slow growing market through the provision of a variety of high quality, great tasting brands with health benefits specifically tailored around consumers needs. This has led the Irish consumer to re-appraise yogurt, look for additional health benefits from products and increase their overall consumption of fresh dairy products in general. In this way market segmentation has always been to create a unique value offer to as many customers as possible in terms of product, price, ASP or the distribution of product in global market.

INTERNATIONAL MARKETING