Week 5 - Segmentation, Targeting, Differentation and Positioning Examples

Last week, I sought to better understand the definitions and explanations for Market Segmentation, Targeting and Positioning. I wanted to give myself some time to think about and observe some key examples of how companies have done this with various products. I have chosen two examples which I feel provide insight into differentiation in the marketplace, and that have had the most recent impact on my own experience and perception with products.

Comes in convenient multi-purpose
dry sheets.

Laundry detergent: If one thinks about the purpose of laundry detergent, it is very basic – overall, consumers want a product that is going to do the job of cleaning clothing in the most value added way.  Given that all detergents on the market essentially meet this basic need, why would consumers choose one brand over another? Thus, companies have invested heavily into determining how to differentiate their product from the competition and what influences various consumers. Throughout the years, we have seen basic detergents evolve into specific cleaning purposes (formulated especially for bright colors, or for use with hard water, etc.), more concentrated versions of detergent for the cost conscious consumer (more loads per amount used), liquid vs. powder vs. tablets, claims of superior cleaning ability and other distinctions. For myself, the scent of the laundry detergent carries great weight in my choice – even if a particular brand is the best value for the money, if I don’t like how it smells (especially considering one has to wear it all day), I won’t buy it.  I have recently chosen a new brand due to my expat assignment in the UK, due to the way the washing machines work here. Purex has laundry detergent and fabric softener in the form of a dry sheet, which I can toss into the load very conveniently (and the scent is tolerable as well).

DVDs: A market segmentation that I have not liked as well is the DVD industry. Did you know that DVD’s are formatted by geographical region, so that DVD’s released in the US do not work with players in Europe, etc.? Presumably, this is to allow the marketers to differentiate pricing and maximize promotional activities with release timing in each of the regions (heaven forbid that a person in the UK be able to buy a copy of “John Carter” at the same time as someone in the US, it would just ruin the profitability of the film!). However, for someone who brought a substantial collection of US DVD’s with her to Europe only to have the US DVD player fail 4 months into the assignment, I am frustrated at the inconvenience of not being able to readily procure a player that is compatible. One thing I can assure the industry is that I will NOT be buying replacement DVD’s in the Euro market as a result of this setback – I will figure out a way to utilize that which I already have, or not watch them at all.

In my opinion, the segmentation strategy for the DVD market does not seek to enhance customer value at all, but only to maximize profit for the industry. This is a key difference to the example of the laundry soap market, which is more representative of obsession on the consumer and what is valued in the product offered.