In this essay the attention will be focused upon market segmentation, targeting and positioning. Market segmentation is the phenomenon of fragmentation of it depending on certain variables, criteria or models of segmentation. Market segmentation is represented by buyers, which are different in many ways. They may differ from the experience of buying, through the buying attitudes, by what they want to buy. Market segmentation is the process that consists of dividing all the portions small and homogeneous, presenting needs, preferences and tastes apparently common for products and services. Strategy aggregate market sees the whole market as a whole. Segmented market strategy sees the whole market as being composed of small segments, many and homogeneous. Market segmentation can be done in several strategies, several products or several segments. Basically, aggregation and market segmentation will be based on analysis of market phenomena, which are observable or unnoticed. Those observable are the sales, market share, profits, and ways of buying. While the unseen are the attitudes, perceptions, claims and personality. The target market is one or more market segments on which the company focuses its marketing actions and core target customers are owners or buyers. Positioning is related to two important things: the target audience and product differentiation. Positioning starts with a product or service. But it is not what you produce. Positioning is what you do with the consumer's mind is a battle going on for your brand to conquer that one place on the map of the mind of the consumer.
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The main discussion of this essay will be about two important toilet tissue manufacturers, Kleenex Cottonelle and Zewa, and about how they managed to realise great market segmentation in the area of activity.
Kleenex Cottonelle toilet tissue
The Kleenex Cottonelle company of toilet tissue is original from South Australia and offer 700 jobs in the area. This company has hired many Engineers, Scientists, Fitters, Electricians, Process Operators, Accountants, HR professionals who have high quality level of products to world standard. In 1872 J.A Kimberly Charles Clark founded the company Kimberly Clark, a company that deals with the paper industry, and whose name is attributed to many common products across the world, for example Kleenex Cottonelle.
Founder of Kleenex Cottonelle spent 100 thousand dollars for promoting the brand of toilet paper as the best because it has a "rippled texture" and therefore clean better. In 1990 Kimberly-Clark introduced the Kleenex toilet-tissue market, a product that has created problems for the entire company. After that, Kimberly-Clark asked the consumer's opinion about his products, asking them to compare products Kleenex tissue with other companies Cottonelle textured toilet paper. Although in advertisements are not talking about how good the paper cleans, he found out that this is what the clients are most interested in. Most clients do not always buy toilet paper from the same company, they seek the best deal. People have different needs and therefore they choose products which satisfy all the powers. After they got what for consumers actually have thought of a better way, and have launched a new product on the market called rippled texture.
As a result the price of manufacturing, the paper rolls are 20% cheaper than the other quality products. Because they kept the same sale price of toilet paper, the company afforded to invest more money in advertising. Kimberly-Clark has invested between $ 20 and $ 30 million for television advertising, which includes 18 months of prime time commercials in the eastern U.S. After this investment, have lasted another 18 months until the product is available in the other 2 thirds of the U.S. Meanwhile the company launched a new softer version of Kleenex Cottonelle, which was available in the rest of us.
Kleenex products have a texture Cottonelle with a soft tissue that consumers can see and feel. Most clients prefer toilet paper with a silky baked smell and therefore this has caused the apparition of many types of paper. Quality toilet paper, are made of trees and not recycled material, which makes the paper to be softer as customers demand it. In many European countries, consumers believe that a piece of rough paper it is enough, but on the other hand in some countries, consumers find it necessary only use recycled paper. According to Kimberly-Clark's experts in Europe and Latin America 20% of toilet paper is made from recycled products. Kimberly-Clark company not only uses high quality paper made from trees, but paper made from recycled products to customers "away from home", school, restaurant, office, said Jerry Baker as Vice President of product and technology research for Kimberly Clark.
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As one of the best known manufacturers of toilet paper, Kleenex Cottonelle, the clients of this company have nothing to complain for the benefit of a wide range of products to meet their comfort.
Consumers buy and use the product or service for personal or household use. Consumers buy a product and choose differently, according to several criteria. For example, some consumers buy toilet tissue depending on socio economic criteria. Criteria including: income, occupation (manager, seller, students, various professions social class (rich, middle class, poor). Education change preferences purchase creating different tastes. Occupation may be the criterion that determines the purchasing power of customers.
Of these products, most of which is seen best in the U.S. market segmentation, are: Kleenex Cottonelle hypo-allergenic, regular, double length, Kleenex Kids and fresh flushable wipes.
Kleenex Cottonelle hypoallergenic is specifically designed for people with skin irritations. This product is bought by consumers who are hypoallergenic, and need more attention to their hygiene. Giving importance to this, manufacturers have developed a texture Kleenex pure white, without any perfume and lacking in inks and dyes. It is available in packages of four or six rolls.
Kleenex toilet paper Cottonelle regular range is the most common of this company. Although the most common, it is called a modern air-Weave texture, making it a soft resistance. It is available on all types of packages, from the small to the big 4 rolls 24 rolls. Although it has a low cost, has a good quality and that makes be selling, and therefore is used by most classes of consumers.
Kleenex Cottonelle toilet paper manufacturers studied the market, thus being in touch with consumer demands, which generally prefer to buy items in larger quantity and at an affordable price, and they do not want to buy them too often; they created the double length toilet tissue. A roll is double size and is available in packages of four or six rolls, at favourable price. This toilet paper is bought by consumers, which will save time and money.
A new market brought by the same company, Kleenex Cottonelle for kids, which many consumers have tried it with confidence, and were satisfied. Design of this product is very attractive for children, but due to their parents. One of the purposes of this paper is to teach children how to consume only the necessary amount of toilet paper. This is being done because every three pieces, there is drown the company symbol, the puppy, kids knowing that there is the place to tear the paper.
An important role in selling the Kleenex Cottonelle products, there are the television adds. The company has chosen the Labrador puppy as a representative mascot, which appears in all the TV ads, making them enjoyable for the audience.
Zewa toilet tissue
Another company producing toilet paper is Zewa from Germany. Like Kleenex Cottonelle in America, Zewa is one of the most popular brands of toilet paper in the world, posted a sales increase of 70% Zewa the local market, both in volume and in value in first five months of the year. Factories in Germany are very efficient, with a very high productivity, which enables economies of scale that compensates for much of the cost of transport. The market is fragmented but is consolidating. Manufacturers are not very numerous, while the number of dealers exceeds 30 companies. One of the countries that import the Zewa Company's products is Romania. "Strong brands are important for Romanians and Zewa brand is one such. Romanians are not loyal when it comes to products that are not market leader", said Doru Petrescu, sales manager of SCA Hygiene Products. "The market will continue to grow strongly as consumption per capita is very low in Romania. Locally it consumes about 2 kilograms of paper per year, while in Western consumption approaching 16 kilograms. On the other hand, consumption in Bulgaria is close to four kilograms per year"; said Doru Petrescu. "The package, used the most is of 8 to 10 rolls and it owns almost 50% of the market, up from 25% two years ago. Then roll sales represented almost two thirds of the market", says the SCA representative Hygiene Products. Consumers pay attention to how the product is presented to the shelves as costs, as shown by the product, as evidenced package, including a promotion, etc. Most consumers choose depending on income, a product of premium quality or cheaper one (economic quality). Along with price, packaging notifies consumers about product placement. The main differentiator of this product is the price. The paper of the economic category is coloured pink or neutral (in a gray-brown), has a single layer, maximum two, and there is no other special features. For the premium segment are used several colours: white, blue, pink, yellow and orange. Of these, the colour white is the most widely used by established brands like Zewa and Kleenex. Premium products have a greater number of layers; the paper can be scented and is decorated with paper charts. Design style is used consistently in most Zewa products, this also attracts consumers.
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Moreover, packaging design is the factor that guides the consumers purchase decision communicating the benefits / advantages of that brand. The number of rolls in a box and promotions play an important role in the decision to purchase.
In Romania, the market segmentation of the toilet tissues is diverse, and for that reason, Romanian market is selling various types of toilet paper from the Zewa Company. Large range of products of company Zewa, manufactured consumer demands, has been highly successful and market in Romania. So, Romanian consumers are able to choose a type of toilet paper after each preference. Design style is used consistently in the vast majority of products Zewa Toilet tissue manufacturers have zewa meet consumer requirements and brought to market toilet paper with various perfumes, or introduce offers like buy ten of which two are free.
In general, customers prefer to use products zewa, because they are attracted to images of objects symbol of freshness and comfort (feather, lightning, dew, petals, clouds, etc.).
Thus, Romania has imported several types of Zewa toilet tissue. Among the most used by consumers are Zewa Deluxe peach, Zewa plus pink, Zewa Soft, Zewa Lind, Zewa kids, Zewa chamomile, Zewa sensitive, Zewa plus aloe Vera and other products.
Zewa Deluxe Peach, is a premium quality toilet paper, with a great finesse, is orange, and as I mentioned earlier, is sold with various promotions (ten rolls for the price of eight). This paper is bought by consumers who prefer high quality, and giving importance appearance and smell. But at the same time they afford to spend enough money, because compared with other products is slightly more expensive (about £ 4 per package). Also Zewa created products for all types of customers such as Zewa Plus pink is soft and resistant, and also is sold on promotion at an affordable price (around £ 2.50 per package). This model of toilet paper is sold because the price-quality ratio, which is very attractive. For this reason it is bought by all classes of consumers. The new Zewa Soft was launched in combination with a softness upgrade in April 2007 and is sold throughout Germany, Austria, Switzerland, Romania and other countries. Zewa Soft toilet paper is considered one of the highest quality products, because it has a texture made up of four layers of very fine and strong. It bought wealthiest consumers in general, because it is one of the most expensive toilet paper from Zewa product range.
According to its commercial add, Zewa Lind is "A trio of fresh and green - a good mood in the bathroom. In the new packaging, you will find the proven 3-layer quality in yellow with the famous Zewa spring design. Extra tear-proof and safe Zewa Lind fulfilled in the new family the high standards of cleanliness and hygiene. Zewa Lind - Brand quality proven favourable". This product is preferred by clients with more extravagant tastes and for that no matter the price but the quality and comfort.
Noting the lack of toilet paper for children on the market, the company Zewa thought to add a product to help segment the market, attracting a new type of customer; children. Because this paper is specially designed for children, who require more attention, it has a delicate texture and at the same time resistance. Also the price is affordable to all social classes and therefore it is bought by families who care about their children's comfort and health.
For the most part they are the most important characteristics Zewa products, products that manage to cover all categories of customers, reaching all their needs and requirements. So Zewa, managed to develop proper market segmentation and positioning of the Romanian markets.
Therefore, market segmentation is the process by which commercial companies distribute their full range of products on the market, so to satisfy all categories of consumers. Also, by studying the theory, market represents the capacity of recovery environment to produce and distribute goods and services. To highlight the phenomenon of segmentation of toilet tissue in different markets, I gathered information, and developed them further correlating with theory.
Throughout this essay I discussed the two most important companies of toilet paper: Kleenex Cottonelle and Zewa Companies. Kleenex Cottonellee producing toilet paper, founded in Australia. This has greatly expanded the market of U.S. To meet the needs of all types of consumers, created and launched various products. Thus "Kleenex Cottonelle hypo-allergenic" is a dedicated to consumers with different allergic disorders. "Kleenex Cottonelle regular", is the regular product of the company, which is used by most consumers. "Kleenex Cottonelle double length" is for those who want to save money and time, because it is more paper at a lower price. "Kleenex Cottonelle Kids" is the product designed especially for children that are at the toilet training age.
By creating all of this products and distributing them on the market for being used by the entire consumer categorise, Kleenex Cottonelle creates great market segmentation in The United States.
The other company of toilet tissue I have chosen is Zewa, and its segmentation in the markets of Romania. This company is also representative for its products launched on the market, because it covers all of the consumer classes. The same as Kleenex Cottonelle, Zewa manages to satisfy the requirements of those who have allergic disorders, kids, it also has a regular product dedicated for all of the consumers. Because of these facts, Zewa creates good market segmentation.
I have concluded the most important points, of the essay from which it appears how the two companies made good market segmentation.