Question: 

What is the Target market and what are the 3 Target marketing strategies ?

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BeingSkilled's picture

Target market is where a set of buyers sharing common needs or characteristics that the company serves. It is important to have target markets in order to understand the consumers behavior, how they take decisions, what are different attributes of customers.

 

No company has unlimited resources and therefore a marketer needs to prepare Targeting strategy in order to target the niche market well suited for the product being marketed

 

There are 3 Target marketing strategies which we will use:

1.Undifferentiated or Mass Marketing Strategy:

a.     We will be selling to public at large. The common benefit which will be promoted to the audience is Good effects of Green Chai on Health of a person.

b.     Since Health and well being is very personal, when we will target masses, people might buy Green Chai for themselves or their dear ones.

c.      This is great for market at mature stage which is the case as Green Tea has been there for about 5 years.

2.Concentrated Marketing Strategy

a.     In this, we will target a niche market is a small share in a large market. This will also help in engaging with customers better, understand their buying and usage pattern.

b.     This will help us get strong market position and leader in the segment. Also we will acquire great reputation in the market as we will have more understanding of the target customers.

c.      This strategy will help us achieve spcialisation in production, distribution and promotion which will give us high ROI from marketing activities.

3.Differentiated Marketing Strategy –

a.     Differentiated products helps us target different set of audience which increases potential size of target audience. It also helps us develop a stronger position within the segment.

b.     Description: Macintosh HD:Users:bohemianme:Downloads:chaigreen_grande.jpgIn our case, we have differentiated our product in 2 ways:

                                               i.     Flavors – Green Chai will be available in two flavours  i.e. lemon and honey. Depending upon the taste of the audience, different age group, they may choose one over another. Further more investigation on pattern of sales and demand, feedback, we may improve more flavours.

                                              ii.     Packaging – Every customer has certain requirements. While individuals might prefer to buy small packages of 10,20 units pack size, Joint families, businesses will buy large packs of 30,50 units pack size which will save them good amount of money.

 

Positioning Strategy for Green Chai:

Positioning helps us develop the company’s products, services and also the image to gain a differentiated place in the minds of target audience.

The key objective is to have an unique place in the customer’s mind which helps in brand recognition and recalling.

 

For Green Chai, following will be Positioning strategy:

1.     Positioning by product attribute: Green Chai has got antioxidants which helps reduce the harmful effects that stress and pollution has on the body. Since this is not common among all competitors and is beneficial to end users, it is worthy for customers to remember.

2.     Positioning by use / application of product – By drinking Green Chai twice a day, customers will reduce the risk of dangerous diseases caused by stress drastically. This  will stay in minds of customers that to stay healthy while drinking tea, Green Chai is the perfect solution.

3.     Positioning against competitors – Tea generally are source of High blood pressure and is addictive while Green Chai is essentially Herbal Green Tea which is full of antioxidants and therefore competitors don’t have a chance to compare themselves. This makes Green Chai an obvious choice.

Positioning by quality or value – We will project that Green Chai is the highest quality product and each leaf is carefully chosen, processed under air sealed environment, is untouched by human being. This makes the product distinguishable easily and stays in mind of target customers. Also, for health and hygiene conscious people, it becomes the first choice