Godiva Gems: Segmentation-Targeting-Positioning Strategies (Essay Sample)

Assignment
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Part 1: Segmentation-Targeting-Positioning Strategies
Profit making organizations are known to subdivide their products into subcategories that meet their customer’s needs, in essence, this creates different sub-products out of one single product to attract more clients based on their preferences. Ideally, this is segmentation and several strategies exist to meet this need. However, they all begin with identifying the specific behaviors of the consumer i.e. split the clientele based on usage, preference among other variables. For a company such a Godiva Gem, the first step is researching the targeted market (Singapore), the results of the research determine the segmentation criteria or strategy (Weinstein, 2004). From the research, a segmentation strategy is chosen based on a chosen variable, which can include behavior, geography, demography or even psychology.
According to Kim Alter (2000), a commercial company can have different groups of customers and identifying them is the first step in meeting their demands. The said organization uses its marketing efforts to target this groups to increase their customer base and thereafter their profits. After proper segmentation strategies are chosen an effective targeting mechanism is obtained to segment the target audience (Pride & Ferrell, 2011). Moreover, several targeting strategies exist including; concentrated strategy which is a single segment method, differentiated strategy for multiple segments, product specialization for specific products, market specialization for specific markets and full market coverage.
Positioning is a strategy employed to create the desired image in the minds of their customers. Godiva Gems could establish itself as a regular brand for the people available at all times. Constant availability creates a lasting impression of the customer who regularly purchases the product (Sengupta, 2005). Furthermore, the positioning strategy used should cater for the different uses or applications of the product, not a specific use only e.g. as a gift. This maximizes on the customer base while increasing the size of the clientele.
Part 2: Marketing Mix Strategies
Marketing mix is usually the tactical, operational part of any marketing strategy. In this part, four components are usually considered, they are price, product, place, and promotion. It’s because of these components that marketing mix strategies are called the 4Ps or sometimes 7Ps when process, people, and physical evidence are considered. Furthermore, these components are controllable to meet the desires of the company while fulfilling the needs of the customer (Kotler & Armstrong, 2010). In essence, the product offered to the customers for instance chocolate can be altered in terms of the different components. When considering high-end clients who demand top shelf services and chocolate brands, Godiva Gems can increase promotion while desensitizing the focus given to the price.
Let’s consider these tools/components used to provide the different marketing mix strategies, first the product. Godiva Gem was previously thought as a luxurious company having expensive products meant for the rich. However, it’s currently changing this image to target more people as a casual product for all occasion and not only as a gifting item. Moreover, its studies showcase its product as community or group product. Again, they are trying to change this aspect of the product to target individual consumers, making it an individual as well as an impulse treat (Lamb, Hair & McDaniel, 2008).
Secondly, the place, a crucial component that can either increase or decrease a company’s sales. Godiva Gem should completely shift its chocolate brands as items only available in high-end stores such as high-end malls and boutiques instead, have them on all outlets be it malls or otherwise. By making the product available to the masses it demystifies it as a luxury brand and transforms it into a product casually available to the consumer and ready for use at all times. Therefore, in their new market (Singapore) they should introduce the same place strategy, where the product is readily available in all stores.
Consumers prefer brands that they can relate to in one way or another and this concept is mostly determined by the promotion strategy used by the company or brand. Companies that relate to the daily struggles or victories of their consumers tend to have more customers. The ...