STP Analysis in Marketing | STP Model with Examples | Market & Consumer Analysis | Management Talks

Summary

The video script from 'Management Talks' explains the STP model—Segmentation, Targeting, and Positioning—crucial for modern marketing. It outlines how Volkswagen Group, the world's largest car manufacturer, applies this model across its 12 brands to cater to diverse market segments. The script details segmentation methods, targeting strategies, and the importance of positioning in creating a brand's unique identity in consumers' minds, using examples from Unilever, Colgate, and Amazon to illustrate the concepts.

Takeaways

• 🚗 Volkswagen Group is the world's largest automobile manufacturer, with a record-breaking annual vehicle sales of 10.97 million units.
• 👑 The success of Volkswagen is partly attributed to their strong STP (Segmentation, Targeting, Positioning) model in marketing.
• 🔍 Segmentation involves dividing the market into distinct groups based on consumer characteristics such as geographic, demographic, psychographic, and behavioral factors.
• 🌍 Geographic segmentation is exemplified by Unilever's market division by country, with different brands available in the USA and India.
• 👶 Demographic segmentation is shown by Colgate's different products for children and adults, and Unilever's strategy for different income groups.
• 🧐 Psychological segmentation is illustrated by RIN targeting consumers with self-dependent and confident personalities.
• 🛍️ Behavioural segmentation is crucial for online businesses, like Flipkart, which segment their market based on consumer behavior during festive seasons.
• 🎯 Targeting is about selecting which market segments to focus on with a comprehensive marketing program.
• 🌐 There are three targeting strategies: undifferentiated, single-segment, and multi-segment targeting, with companies like Coca-Cola and P&G adopting different approaches.
• 🏷️ Positioning is about ensuring a brand occupies the right spot in the minds of consumers, as shown by Thums Up's 'Taste the Thunder' positioning for adventurous youngsters.
• 🌟 Volkswagen's multi-segment targeting strategy allows them to target a broad range of consumers with brands like Volkswagen, Audi, and Porsche for various market segments.
• 📈 The STP model is crucial for businesses to differentiate themselves and provide consumers with reasons to choose their products or services.

Q & A

What is the significance of the STP model in marketing?

The STP model is significant in marketing as it helps businesses to segment the market into distinct groups, target specific segments with tailored marketing strategies, and position their products or services effectively in the minds of consumers.

How does Volkswagen Group utilize the STP model to its advantage?

Volkswagen Group uses the STP model to segment the market based on various consumer characteristics, target different segments with brands tailored to those segments, and position each brand uniquely to appeal to specific consumer needs and preferences.

What are the four main types of market segmentation mentioned in the script?

The four main types of market segmentation are geographic, demographic, psychographic, and behavioral segmentation.

Can you provide an example of how Unilever uses geographic segmentation?

Unilever uses geographic segmentation by offering different brands in different countries. For example, they have brands like Nexxus, Nexzema, and Ben & Jerry's in the USA, while in India, they offer brands like Lifebuoy, Comfort, and Pepsodent.

How does Colgate demonstrate demographic segmentation in its product offerings?

Colgate demonstrates demographic segmentation by offering different products for children, such as Colgate Kids, and for adults, they have regular Colgate toothpaste, catering to the specific oral care needs of different age groups.

What is an example of psychological segmentation in the market?

An example of psychological segmentation is RIN's advertisement targeting consumers who are self-dependent and have a confident personality.

How does behavioral segmentation benefit online businesses like Flipkart?

Behavioral segmentation benefits online businesses by allowing them to understand and target consumers based on their behavior, such as shopping patterns during festive seasons, enabling them to offer relevant sales and promotions.

What are the three targeting strategies mentioned in the script?

The three targeting strategies are undifferentiated strategy, single-segment targeting (also known as concentrated or niche targeting), and multi-segment strategy.

Why did Coca-Cola adopt an undifferentiated targeting strategy?

Coca-Cola adopted an undifferentiated targeting strategy because they offer the same product to the entire market, aiming to appeal to a broad consumer base without focusing on specific segments.

How does P&G use a multi-segment strategy with its laundry detergent brands?

P&G uses a multi-segment strategy by offering different laundry detergent brands like Tide and Ariel, where Tide is initially positioned for hand washing and Ariel for machine washing, allowing them to target multiple market segments.

What is the purpose of positioning in the STP model?

The purpose of positioning in the STP model is to ensure that a brand occupies the right spot in the minds of target consumers, differentiating it from competitors and giving consumers a reason to choose that brand.