Tag: product segmentation

total quality management

Everything you Need to Know Before Developing a Product Segmentation Strategy

 What is product segmentation? 

A product segmentation strategy helps businesses identify ways to sell variations of their products in such a manner that it appeals to different markets. How is this different from a marketing segmentation? Marketing segmentation involves identifying various target markets for creating different messages for selling the same product to each group. The primary aim of a product segmentation strategy becomes evident when you realize that by slightly changing your product, the potential to increase sales becomes higher.

How to undertake a product segmentation strategy

Analyze the market

An ideal product marketing strategy must include methods to identify factors that make people want to purchase a particular product. For instance, brands can take the help of focus groups or surveys to find out what people like about their product and the scope of improvement that would make it much more desirable and eventually prompt them to purchase. The needs of each target groups of customers might be different. It is essential for businesses to identify the ones which are viable and incorporate the same into their offerings.Get More Info

Use marketing segments

Brands can use various types of product segmentation to appeal to customers, one of the best ways to do it is to focus on the already existing customer segments of the business. This also helps to identify market segments that aren’t buying from the business and formulate different product variations that could induce a purchase from them.  If the company sells products via the Internet, then it becomes much easier for them to offer customization options of products to the customers in order to meet the needs of different groups better.

banner IR

Use distinctive marketing communication

Brands must ensure that they adjust their marketing messages accordingly to suit the product that they intend to promote. For instance, the marketing strategies used for selling a children’s snack should be different from the strategies used to promote snacks that are healthy and recommended for adults.             

Types of product segmentation strategy 

product segmentationMass market strategy

This is one of the easiest types of product segmentation wherein a common offering is made throughout by the brand irrespective of their target customers or difference in geographic locations. One of the key advantages of this product segmentation strategy is that the company receives a great economy of scale advantages since its factories are manufacturing the same product with the same materials and no additional customizations are required.

Large segment

Large segment product segmentation strategies are more specific and require a significant investment to compete successfully in every available market at the same time. A company can specialize in making one type of product which allows them to eliminate an unprofitable segment or target the segment where it has the greatest advantage.

Multi-segment

In this product segmentation strategy, a company targets more than one market segment. For instance, A chemical brand can make many brands of detergent just by changing the concentration of the chemicals used for each specific market. The company runs a separate advertising campaign for each product, and customers in a different region may not even know that these products are made by the company. This method is intentionally used by some companies to protect the reputation of their higher-end brands.

Niche strategy

Niche segmentation is one of the popular types of product segmentation wherein the company’s products are made to suit the needs of a specific and highly specialized target customer group. This is one of the most effective types of product segmentation that can be used by a smaller firm to compete with larger counterparts in the market. Though a niche forms only a small part of the market, higher-end products are sold to this segment which compensates for this factor.


Facing trouble formulating the right product segmentation strategies for your business?  

Contact US

IR29

Product Segmentation Engagement: A Case Study on How a Ceramic Coating Manufacturer Improved Product Launches and Enhanced Brand Awareness

The global ceramic coating market is anticipated to reach a value of $10 Billion by 2020.

Typically, ceramic coating promotes increased heat resistance coupled with fewer emissions to the atmosphere. Such factors are likely to supplement the growth prospect of the ceramic coating market in the coming years. Additionally, these products are gradually finding applications on metal parts in vehicles owing to its suitable properties of corrosion and abrasion resistance along with it being an excellent thermal barrier. Furthermore, with growing R&D activities, ceramic coating manufacturers have started venturing into broader application segments. Presently, transportation and automobile are expected to be the largest application segments for ceramic coatings. IR_RFPHowever, with further product innovations, ceramic coating is likely to have a larger application share than its counterparts such as conventional coatings in the coming years.

The Business Challenge

  • The client: A ceramic coating manufacturer

The client, a manufacturing major specializing in ceramic coating, wanted to analyze the regulations and investment options in the chemical industry space to secure potential customers. As a result, the client wanted to categorize their potential competitors and their product positioning strategies. Additionally, the client wanted to gain improved transparency into the chemical industry space and devise robust strategies to enhance sales performance.

Want more information about our product segmentation engagement for ceramic coating manufacturers?
Ask an analyst

The Journey

To help the ceramic coating manufacturer profile key target segments, the product segmentation specialists at Infiniti carried out a comprehensive research comprising interviews and discussions with leading stakeholders in the chemical industry. The specialists also compiled information from a wide array of sources such as paid industry databases, company presentations, and industry forums.

The Solution and the Business Impact

The ceramic coating manufacturer was able to leverage the use of demographic parameters to segment their target audience effectively with the help of Infiniti’s product segmentation engagement. The client also understood customer personality traits, values, attitudes, interests, and opinions. This helped them divide a broad target segment into subsets with similar desires and needs. Furthermore, the client improved product launches and enhanced brand awareness.

The Future

Incumbent ceramic coating manufacturers must prepare for further encroachment of commoditization and erosion of their historical advantages when attackers from developing markets gain more experience and become increasingly technologically savvy. Additionally, the value-add potential of many chemical industry conglomerates will be challenged more intensely than ever, and so will their questionable claim that they can upgrade their portfolio in a way that generates value for shareholders.


Why leverage product segmentation strategies?

Our analysis of the global chemical industry shows that ceramic coating manufacturers are facing challenges in terms of:

  • Growing competition: Staying ahead of the competitors becomes challenging for ceramic coating manufacturers as the threat of new entrants in the chemical industry is relatively high. Moreover, the chemical industry is also witnessing competition from non-traditional sectors including the utilities, energy, and mining. These factors are pressurizing firm to become agile and stay in the competition.
  • Stringent regulations: Today, the chemical industry is witnessing strict regulations right from manufacturing, labeling, and handling to the supply and storage of their end products. These regulatory fluctuations are driving leading firms to migrate toward the cloud to meet the mandates of the governments.

To address these challenges mentioned above, it is essential for ceramic coating manufacturers to utilize product segmentation solutions. Product segmentation solutions help firms devise robust segmentation strategies to meet the preferred traits of respective markets. These solutions also assist companies in profiling the right customers and channel their resources and efforts accordingly.


A must-read case study for strategy specialists and decision makers looking to develop a better understanding of the chemical industry

IR_RFP


cosmetics industry

Product Segmentation Engagement helps a Patient Monitoring System Manufacturer to Devise Effective Product Strategies and Improve Sales Performance

Patient monitoring

LONDON: Infiniti Research, a global market intelligence solutions provider, has announced the completion of their latest product segmentation engagement for a patient monitoring system manufacturer. The patient monitoring system market is expected to achieve significant growth since these devices are extensively used in the healthcare industry. Market growth of the patient monitoring system is mainly due to factors such as growing elderly population size, rising incidences of an unhealthy lifestyle, and technological developments like the portability of equipment.

 

“Patient monitoring system manufacturers are expanding their customer base from hospitals and finding application in clinical settings, rehab centers, and even in patient’s homes. With the help of robust segmentation engagements, companies in the medical devices space can profile the right customers and channelize their efforts and resources accordingly.” says an expert at Infiniti Research.

 

Request a FREE proposal today!

The solution offered helped the patient monitoring system manufacturer devise an effective marketing plan to effectively distribute their products across the potential segments. The solution also helped the client showcase new products and penetrate niche market segments.

Additional Benefits of the Product Segmentation Engagement

 

  • Improve product launches and enhance brand awareness
  • Identify the potential competitors and the product positioning strategies to fine-tune offerings
  • To know more, request a free proposal

To know more about how our product segmentation engagement solution helped the patient monitoring system manufacturer

Ask an analyst


Related Posts 

ir11

Leveraging Infiniti’s Product Segmentation Strategy for a Prominent Paints and Coatings Manufacturer

Anticorrosive protection, nano-coatings, and low-VOC content coats are a few of the newly developed concepts available in the present market for paints and coatings.

Paints and coatings act as a shield that safeguards products from wear and tear during their lifespan. They also enhance the texture and appearance of products and make them more durable and aesthetically pleasing. Paints and coatings are used virtually everywhere from homes and offices, furniture and corridors to cars and toys.

The paints and coatings manufacturing segment is one the most highly regulated industries in the world. The regulations pertaining to the manufacture of paints and solvents have forced manufacturers to adopt low-solvent and solventless technologies. The demand for paints and coatings is fueled by its growing utilization in end-user sectors such as marine, automotive, and construction.

Although the global paints and coatings industry is proliferating, several challenges are restricting their growth prospects. A few factors include:

  • Increase in raw material prices- Commodity costs are very important for manufacturers of paints and coatings, as it is a raw material intensive industry. More than 50% of the operational costs are allocated to raw materials. A rise in the prices of raw materials, therefore, affects the final pricing of the products.
  • Quality audits- Players in the chemical industry have to abide by numerous government and regulatory compliance. Therefore, it is essential to carry out quality audits and ensure data traceability across the business platforms.

Challenges such as these are driving leading paints and coatings manufacturers across the globe to leverage the use of Infiniti’s product segmentation strategies. With the help of our product segmentation strategy, IR_RFPcompanies can gain a holistic view of the latest trends and identify opportunities to capture additional shares in the market.

The Business Challenge

The client: A prominent paints and coatings manufacturer

Objective: Assisted the paints and coatings manufacturer to reduce the cost of developing radically different products.

The client, a global paints and coatings manufacturing firm in the US, wanted to lower their marginal production costs. As such they were looking at increasing their overall market share in the US while decreasing the cost of developing radically different products. They also wanted a detailed report on the latest trends in the chemical industry, their business process, management tools, and linkages to internal organizational touch points to increase the effectiveness of the resources and achieve their business objectives.

Result: The product segmentation strategy enabled the client to identify potential market segments and focus on specific groups to increase sales.

Product Segmentation

Want more information about our product segmentation strategy solutions for the chemical industry?

Ask an analyst

The Journey

Infiniti’s product segmentation experts carried out extensive research comprising interviews and discussions with leading stakeholders in the paints and coatings industry space to help the client achieve an integrated customer development process. The experts also compiled information from a wide array of secondary sources such as paid industry databases, company presentations, and industry forums.

The Solution and the Business Impact

Infiniti’s product segmentation strategy enabled the client to improve product sales while lowering their overall production costs. Leveraging product segmentation also helped them evaluate the profitability of individual items within the product family. Moreover, the product segmentation solution assisted them in further refining their segmentation model.


The Future

The growth in technology and a rise in regulatory compliances in the global paints and coating industry has resulted in the development of low VOC products. Manufacturers across the globe have also made use of such developments to improve their paints and coatings in multiple ways.

Owing to the ongoing focus on research and development and product innovation, many of the greener alternatives manufactured, exceed traditional high-VOC products. Moreover, significant developments in water-based technology have positively impacted the future growth opportunities in this market.


A must-read case study for strategy specialists and decision makers looking to develop an understanding of the chemical industry.

IR_RFP


Related Posts:

Market Entry Strategies

Product Segmentation Engagement to Devise Effective Product Strategies and Improve Sales Performance for a Patient Monitoring System Manufacturer

The global patient monitoring system market is estimated to reach $26 billion by 2022.

Globally, the patient monitoring system market is expected to achieve significant growth since these devices are extensively used in the intensive care unit (ICU) and other areas of the hospital, home outpatient treatment locations, and patient transport venues. Market growth of the patient monitoring system is mainly due to growing elderly population size, rising incidences of unhealthy lifestyle, and technological developments like portability of equipment. Vital signs monitors transmit data wirelessly directly to the electronic patient record, generating alerts if the data is outside preset parameters. Additionally, patient monitoring system manufacturers are also expanding their user base in the hospital and finding application in rehab centers, clinical settings, and homes.

Although the patient monitoring system market around the globe is proliferating, several challenges are restricting the growth prospects of the market. A few of them include:

  • Increased complexity of medical devices and equipment: Today, the increasing complexity of patient monitoring system results in difficult diagnosis and repair processes and spurs the cost of field service. This is subsequently raising the cost of training field service technicians.
  • More demanding and diverse customer base: Customers of today have more choices and are demanding superior patient monitoring system and medical devices in today’s dynamic environment. They are also trying to get more out of their reduced capital and expense budgets by demanding higher incentives.

Such challenges are compelling patient monitoring system manufacturers to leverage the use of robust product segmentation engagements. With the help of robust segmentation engagements, companies in the medical devices space can profile the right customers and channelize their efforts and resources accordingly. These solutions also help companies to IR_RFPidentify opportunities to discontinue specific products that are not performing well in the market; thereby, reducing excess costs.

The Business Challenge

  • The client: A patient monitoring system manufacturer

The client, a renowned patient monitoring system manufacturer, was facing predicaments in profiling the key product segments. Consequently, they wanted to gain better transparency into the market space and devise effective strategies to improve sales performance. The patient monitoring system manufacturer also wanted to identify their potential competitors and their product positioning strategies to fine-tune their offerings.

Want more information about our product segmentation engagement for patient monitoring system manufacturers?
Ask an analyst

The Journey

The product segmentation experts at Infiniti carried out extensive research comprising interviews and discussions with leading stakeholders in the medical device space to help the client fine-tune their offerings. The experts also compiled information from a wide array of sources such as paid industry databases, company presentations, and industry forums.

The Solution and the Business Impact

With the help of Infiniti’s product segmentation engagement, the patient monitoring system manufacturer was able to devise an effective marketing plan to distribute their product offerings effectively across the potential segments. Additionally, the client leveraged innovations to improve product launches and enhance brand awareness. This further helped them showcase new products and penetrate niche market segments.

The Future

The future of patient monitoring and medical device connectivity is all about empowering people of all ages to be more in control of their health — and, with that, their lives. Wireless technologies that eliminate the need for bedside transmitters are part of that future as that is one less device that needs to be carried around or managed. Additionally, more mobile apps that integrate seamlessly into people’s daily routines and give them the freedom to go about living their lives with more confidence and less worry are expected to proliferate


A must-read case study for strategy specialists and decision makers looking to develop a better understanding of the latest medical devices trends

IR_RFP


Related Posts:

cosmetic packaging

Product Segmentation Assists a Cosmetic Packaging Client Profile their Potential Customers

Cosmetic packaging supplies: An overview

The cosmetic packaging industry is witnessing a high degree of competition with numerous competitors relying on innovations to stay ahead of their competitors in the packaging space. With packaging becoming more of a necessity, its importance is growing broadly in line with the global economy. To identify the potential target segments and enhance their offerings in the market, leading businesses in the cosmetic packaging space are relying on product segmentation strategies. Though product segmentation, consumers can profile the right customers and channelize their efforts and resources accordingly. Also, with the help of such solutions, various cosmetic packaging companies can increase market shares, improve revenues, and further reduce costs. Product segmentation can also be leveraged to identify opportunities to discontinue specific products that are not performing well in the market.

Request Proposal

Request a FREE proposal to know how our solutions will help you enhance your business growth.

To identify the products that resonate with the target market, leading businesses in the cosmetic packaging space are approaching companies like Infiniti. With expertise in offering a plethora of solutions, Infiniti’s product segmentation solution helps companies in the cosmetic packaging space devise robust segmentation strategies to meet the preferred traits of each market. Furthermore, organizations can further understand the demand-supply parameters to achieve economies of scale.

The Business Challenge

A renowned client in the cosmetic packaging industry with a considerable number of manufacturing units spread across the globe was facing predicaments profiling the key segments. The client wanted to analyze the regulations and investment options in the cosmetic packaging space to secure potential customers. Also, the client wanted to gain better transparency into the market space and devise effective strategies to improve sales performance. Also, the client wanted to identify their potential competitors and their product positioning strategies.

IR- Product segmentation

Want moAsk an analystre information about our product segmentation study?

 

Our Approach

To get the desired information on the cosmetic packaging space, the industry specialists carried out extensive research comprising interviews and discussions with leading stakeholders in the market space. Also, to profile the key target segments, the client compiled information from a wide array of sources such as paid industry databases, company presentations, and industry forums.

Product Segmentation Solution Benefits:

  • Focused the marketing efforts on the most promising groups
  • Leveraged the use of demographic parameters to segment the target effectively
  • Understood the customer values, personality traits, interests, and attitudes of the customers
  • Divided broad target segments into subsets of consumers with similar desires and needs
  • Predicted the likeliness of the customers buying patterns in the future
  • Cultivated better relationship with the customers

Benefits of Our Integrated Approach

With the help of the product segmentation solution, the cosmetic packaging client was able to showcase new products and penetrate across niche market segments. Also, the engagement helped the clients devise a marketing plan to distribute their products effectively across the potential markets. Furthermore, the client was able to leverage innovations to improve product launches and enhance brand awareness.

A must-read case study for strGet More Infoategy experts and decision makers looking to develop an understanding of the cosmetic packaging industry.