Market Segmentation By Parveen Ahluwalia as on 02/09/2013

"Research is inevitable"

Segmentation is a certain way of classifying a heterogeneous brands in a way. 

Segmentation Criteria. 

--> Commonly Used Parameters

--> Uncommonly Used Parameters

For example with respect to B- Schools

The following are the inherent parameters:

• Course Content 
• Duration
• Fees  

And with the top B - Schools the following also are inherent parameters:

• Placements
• Intellectual Capital 
• Infrastructure
• Training and Development 
• Consultation 
• International Linkages

"Most important, most relevant segmentation of a market means, Industry Segmentation."

Business Revenue Model  

--> Student Fees 

--> Sales of Prospectus of Application 

--> Alumni/ Other Grants (which is not assured)

--> Training Programs  (where a participant fee is charged which can be from 2000 to 10000 Rs for one day)

--> Consultancy

Market Structure (Which will be looked as segments) (S1 + S2  + S3 + S4)

Market Size : S1 + S2 + S3 or the summation of all the segments. 

Brands operate and compete in a specified segment. 

S1 = B11 + B12 + B13

S2 = B21 + B22 + B23 

S3 = B31 + B23 + B33

Brands will have to fit into a segment where they will believe they can compete, Brands will compete on an equal footing. 

With segmentation criteria changing, brands will move into different segments, invariably. 

Define Industry  

The Tree was way too much work and thus I've conveniently skipped it. 

-> Nature of Business 

-> Indoor v/s Outdoor 

-> Viewing Medium (Screens)

-> Pricing of Screens

Mens Formal Wear 

Organised v/s Unorganised 

Product Ranging 

Price 

Technical Collaboration 

Evolve as many segments as possible and then recommend one that is also followed by the respective industry. 

Geographic Segmentation  

                                          International

                                                             -> National 

                                                                              -> Regional 

                                                                                                -> Local 

A product has to be available in 20 States out of 28 States (well, 29 come this December) to be known as having a national presence. 

Market Size has to begin with Volume, (Volume and Value is OK but just the value is Not OK)

Market Size has to be most recent. Work the math if you've to, but it has to be as of this year. Period. 

Segment Sizes will also have to be provided with.