ASSIGNMENT NO: 1

STP MODELS

Name: Harshad Tupsaundar

Roll No: 11452
Class: TYBBA (MARKETING)

What is STP model?

 STP Marketing stands for segmentation, targeting and positioning. STP Marketing makes the
process of marketing easy. It is very easy to understand and apply in business. 

Segmentation: Market segmentation is the research that defines whether the business divides
its consumers or demographic into smaller groups based on features such as age, income,
personality traits or behaviour. These categories can be used later to tailor goods and
advertising for different customers.

Market segmentation is the research that defines whether the business divides its consumers
or demographic into smaller groups based on features such as age, income, personality traits
or behaviour. The segmentation of marketing means splitting the market into sections that
represent customer needs and wants.

Targeting: Target marketing is niche-specific marketing. The niche is not based on products
but customers. You have to identify your potential customers who will purchase your product
based on their needs. There are around 7 billion people on earth. You can’t sell your product
to all people because they are not interested in purchasing from you. That’s where target
marketing works. So targeting the second step of STP marketing 

Positioning: This is the last step of the STP Marketing process. position means place. In
other words, we can say where you stand. In marketing, we understand the positioning of a
product.  In simple words, positioning in the market means where your product stands in the
market. it means how our product stands different from other products in the market and how
it is better than our competitor’s product.

we have to make our customers understand that our product is better than our competitor’s
product so that when our customers think of buying something, our product must be the only
product that comes to their mind. 
Ex: Maggi and surf excel. Some people don’t know the word noodles. They just go to the
shop and ask for Maggi and the same is the case with surf excel. The market is full of
products and services.

STP models of 5 products:

1. PUMA:

 Segmentation: Puma is the world’s top sports brand, designing, selling, and
marketing footwear, clothing, and accessories in over 130 countries. Established in
Germany, but developed its global reach over the last 67 years, employing more than
12000 diverse and devoted employees in 45 countries. Rudolf Dassler founded the
company in 1948, and it has since authorized itself as a leading manufacturer and
designer of performance and sports style items. PUMA has created history as a
designer of rapid product designs for the world’s fastest athletes for more than 70
years. Brand segmentation tactics define the qualities of a company’s ideal consumer
persona. Puma has ascended to the top by catering to the demands of its target market.
The traits of their ideal consumer persona will be revealed by analysing this
Puma commercial.
It’s almost time for sunset. A shopkeeper lowers his steel shutters. The light from a
streetlamp turns on. The skyline begins to light up. Pool balls are stacked on the green baize,
chalked cues, pinball machines are shoved, and bowling balls are aimed at pin racks.

 Targeting: Puma customers are the middle- upper & upper-class income groups who
are more focussed on their self-being and want to live a healthy & have hygiene
lifestyle. To attract the customers from different segments it identified
the individual characteristics such as motivations, their lifestyle and their fitness level;
Puma has worked on these parameters to promote its brand and make it more
appealing to the end customer.  

 Positioning: Puma SE maintains global success while addressing the internal and
external strategic factors relevant to its business, as discussed in this SWOT analysis.
The SWOT analysis framework determines the strengths, weaknesses, opportunities,
and threats involving the business, providing insights for strategic management
decisions in the sporting goods industry. These factors are evaluated in the
formulation of Puma’s generic strategy for competitive advantage and intensive
strategies for growth. Thus, the SWOT analysis helps inform the company’s leaders in
choosing strategies most suited to the current competitive environment of the
international market for athletic footwear, apparel, and accessories. Puma’s long-term
operational effectiveness and success depends on solving the issues linked to these
external and internal strategic factors. In terms of the external factors, even though the
 sporting goods industry environment is not necessarily under the company’s control,
this SWOT analysis shows that strategic planning and management efforts can
enhance business success rates, given such external conditions.

2. Oneplus:

 Segmentation: OnePlus has divided the markets regionally, this helped in

understanding the different needs and wants of different regions separately. Thus
aiding in developing appropriate market strategies which are not ill-suited for a
selected region, consequently saving the company a lot of time and money which
could have been spend unwantedly (Markgraf). Even though a start-up company, their
regional approach helped them to achieve the trust and admiration of the local people.
Several channels were opened in a systematic manner for customers to pre-order their
smartphone. And only eighteen different countries were pre-selected for OnePlus One
launch initially The next major segmentation under which the markets are divided are
on the basis of demographic variables such as Age, Sex, Occupation, family cycles
etc. The most salient feature of demographic segmentation is the massive availability
of data easily available and the ease at which it can be analysed (Gilligan, 2009).
OnePlus is determined not to categorise their potential users according to
demographic variables, nevertheless, they have targeted all users who are so particular
about their products needs to be made out of high quality material and want the best
specification in their smartphone. Even though similar to Demographics,
Psychographic segmentation divided the user base according to their lifestyle and
values (RESTREPO, 2003). OnePlus segregates and targets those people whose
lifestyles are more revolving around technology, to be more specific android geeks
and nerds. Their first product, OnePlus ONE, was Cyanogen certified meaning the
software (Android OS) was highly customizable to improve its performance
(OnePlus, 2014a). Again, built on Android OS, integrated with all the high-end
specifications, OnePlus ONE was launched with the slogan “flagship killer” shook
competitors re-think their strategies (SNELLING, 2016). A competitive pricing and
high specifications, matching or in some cases even beating other branded
smartphones, everyone was clamouring for a piece of OnePlus ONE (Newman, 2014).
  Targeting: Success of a company greatly rely on the ability to identify their target
markets i.e. to find where the company’s potential customers lies in the segmentation
analysis (MCSORLEY, 2014). Some of the key strategic points of OnePlus Company
were not to compete with the already established smartphone leaders, only
manufacture limited number of products to create demand in the market, manufacture
a phone for the android phone fanatics, and sell the product at a very unprincipled
price creating a wave of ‘wow’ among technology enthusiasts (OnePlus, 2014b).

The target market of OnePlus lies within the limit of 14 to 35 years of age, offcourse based
on their ability to buy the company’s products. It also encompasses those tech fanatics and
Android lovers who likes to adopt it as soon as they are launched in the market.

Teenagers, lying between the age of 14 and 25 years are considered to appreciate technology
is one of the company’s target markets. These age groups utilises their smartphone for
socialising needs, and are expected to use applications such as Facebook, Instagram, Twitter
etc (OnePlus, 2014b).

Moving to the age group of 26 to 35 years, due to their capability in buying OnePlus
products, forms the biggest segment of OnePlus’ target market. These age group use their
smartphone as a daily driver for making phone calls, send emails, Text Messaging, music,
GPS for navigation and expect the battery to last till they call it a day (OnePlus, 2014b).

 Positioning: In the last stage of the Segmentation, Targeting and Positioning (STP)
market model, the company needs to decide where they need to position themselves in
the market to stand aside uniquely to focus on their target customers (Janiszewska,
2012). Positioning can help in creating a brand image in the minds of the target
audiences and can only be argued in the execution of what differentiates it from other
brands existing in the same market (Janiszewska, 2012). OnePlus identified two
unique marketing plan based on which they positioned the company on the perceptual
map, these attributes were Low Pricing and High Specifications. Figure 1a shows the
position of OnePlus among all the other major companies in the perceptual mapping.
One could easily notice that, OnePlus stands apart from rest of the major companies.
This makes it easier for a target user to certainly pick the product without thinking
twice. It will be hard to predict at an early stage if the company moves away from the
 current positioning paradigm and invite-only strategy, whether or not users still be
wanting to buy products launched by OnePlus.
3. NESTLE:
 Segmentation: The industry for food processing is among the most influential and
actual ones at all times. Nestlé is one of the biggest and most influential companies in
this industry. It was founded in 1866 focusing on breakthrough infant food
production. Throughout the upcoming years, the company has got involved in the
production of other types of food as well. Today Nestlé presents more than 2000
brands that are sold in more than 187 countries around the globe. Many factors
influenced the success of Nestlé. Among them, market segmentation and positioning
strategies have their place and role. So, let’s find out the strategies behind Nestlé’s
success by discussing it thoroughly. The situation seems hopeless as the boy tries to
vigorously distance the adopted girl from everyone and everything. Despite all these
problems, the parents don’t give up and hope for a positive twist in their relationships.
Everything changes at one instance when they find something fun that they can do
together. They start playing with worms and seemingly enjoying the process.

 Targeting: Representatives of Sharer’s target segment love new experiences and

emotions. They are not afraid to take risks and challenges and treat them with
enthusiasm and courage. These people are extremely adventurous and strive to get
enjoyment and pleasure from all situations and activities. They try to do this even if
the situation or activity is not exciting or interesting for them.

When it comes to the priorities in life, Sharers are family-oriented people who treat their life
duties with great dedication and responsibility. Their home, family, and parents have huge
importance for them.

These people do everything to ensure good care and well-being for their close ones. They like
spending a lot of time with friends and family at home. They try to make the atmosphere in
their home comfy, warm, cozy, nice, and enjoyable for everyone.

At the same time, Sharers are extremely attentive to their appearance. This also refers to the
members of their family. These people want to ensure that they and their close ones are
eating healthy and staying fit. Sharers consider having a good career very important for their
financial stability.

 Positioning: Positioning strategy is extremely important for any company despite its
size, operation, industry, products, etc. Positioning strategy is an effective tool that
can have a crucial impact on the continuous growth and success of the company.
Using positioning strategy, companies get the opportunity to create a positive and strong
brand image in the minds of the customers. When choosing it, each company should consider
the unique and strong aspects of the company, as well as all the specifics of the company and
the industry.

The food processing industry is a remarkably competitive one as any other industry related to
food. Throughout time, people have become more demanding and attentive to the food they
buy and consume.

This has led to continuous changes in needs, preferences of consumers, and changes in trends
in the food processing industry. The companies had to start thinking more sustainable and
focus on creating food that is healthier for consumption.

Nestlé is one of the biggest and most popular companies in the food processing industry.
With the big number of brands that it owns, the influence that Nestlé has on the industry is
remarkably big. Nestlé was able to create an effective positioning strategy by taking into
consideration all its strongest aspects. The company bases its positioning strategy on the
competition.

4. Walmart:

 Segmentation: Walmart is currently the most famous retail corporation which

operates a chain of hypermarkets (supercenters). Their high-quality products, discount
department stores, and grocery stores are what gain the customers’ attention. Walmart
has remained true to its goal during its 50 years of history and has always sought to
offer its consumers affordable daily costs, and as a result, Walmart has created a solid
and loyal client base. Customers who enter any Walmart shop know their prices are
low. Posts with captions showing how much the company cares about their customers
have an emotional impact, but posts regarding little kids or newborn babies take
another level. In the picture, we can see a woman, most probably she is the nanny of
the baby she is feeding. We see both of them smiling; the baby most probably enjoys
drinking milk from that bottle and at the same time playing with it. And the woman is
glad to see that the baby wants the drink.

 Targeting: The products of Walmart include hundreds of consumable items, while

Best Buy mainly concentrates on consumer electronics. With more than thousands of
operating stores, they reach millions of consumers on a daily basis. Surely, the role of
customers is huge behind the success of these companies, and accurately targeting the
right ones makes this success even bigger. One of the company’s recent
successful campaigns is their new approach to the commercials of Walmart Grocery
Pickup. For those who are not familiar with the way their grocery pick up works, it’s a
 function in Walmart’s app/website, where you place your orders online and alert the
associates your arrival time and pick-up area. The associate prepares your products
and gets them ready while you are on your way to the store. 
The new campaign uses famous cars from cartoons and movies. These nostalgic vehicles are
used to add magical colours to the moment of Walmart associate loading the car with
groceries.

The marketing team has chosen those iconic cars, so it will instantly catch the customers’
eye. The combination of cartoons and real-life situations is a very unique and effective
approach when done accurately.

 Positioning: As the dynamic modern retail industry drives towards challenges and
opportunities, it is being affected by many factors such as migration of people, changing
consumption pattern due to changing lifestyle, emergence of e-commerce companies
delivering anything and everything at the doorstep, increasing bargaining power of customers
as well as suppliers and government regulation to protect the home grown competition in the
industry. Market capitalization of Walmart (WMT) Market cap: $412.61 Billion
As of September 2021 Walmart has a market cap of $412.61 Billion. This makes Walmart
the world's 17th most valuable company by market cap according to our data.

5. KFC:

 Segmentation: Our world has almost 8 billion population and most probably 7 billion
of them have at least once heard and tried the yummiest fried chickens of the well-
known brand KFC (Kentucky Fried Chicken). The company was founded by Colonel
Harland Sanders, who started selling fried chicken from his roadside restaurant in
Kentucky in 1952. While nobody could imagine that Colonel’s business would
succeed, nowadays, KFC is considered one of the leaders in the food industry and is a
synonym for fried chicken. This post is about KFC’s marketing segmentation, which
plays a significant role in the company’s success. So, even from the beginning of the
video, the commercial catches everyone’s attention for being funny, engaging, and
attractive. This food company shows its label in less than a minute and presents one of
its unique offerings – Chewy Cheese.

The main participants of the commercial are four friends. When the boy holding the package
of Chewy Cheese shows it to the boy coming towards him, the melting of the cheese seems
alluring to this guy, which is apparent when looking at his eyes.

 Targeting: KFC target market includes both Non-

vegetarian and Vegetarian customer segments. KFC has items in its menu that cater

 to adults as well as the young audience. Over the years the brand wanted itself to be

perceived as a family restaurant and has been running campaigns communicating the

same.

Below are three factors that are essential for evaluating a KFC target market.

 Segment size and growth

 Segment structural attractiveness
 Company objectives and resources.

Above mentioned are the few potential market segments that KFC chooses to target for

driving their business strategy, sales and marketing activities.

 Positioning:     KFC has different kinds of food products on their menu. They
mainly sell fried chicken, burger and drinks in their numerous chain stores in
different countries. They follow the same recipe to maintain the quality of the
food products in all the restaurants. Brand positioning statement of KFC is their
slogan which is “its finger lickin’ good!” This states that customers perceive KFC
food products to be very testy. KFC offers customers freshly produced foods that
they can eat wherever they want at the same quality. KFC food products have a
very reasonable pricing in most of the places. But their pricing differs from
country to country. Target customers of KFC have an age group of 4-50 years. 

      KFC position them as a brand who’s food Products of can be enjoyed as a
family or in an environment of social gathering. They emphasize at creating good
memory and positive feelings towards their products. Whenever you think of KFC
you have to think of somebody. It can be your family, friends, loved ones or
somebody else, somebody to share the fun of eating and to share the teste. This is
the target of KFC. Their unique recipe makes the taste and memories attach to the
eating, unforgettable. KFC creates ‘attributes’ around their product as a level of
positioning. They highlight the product functionality which is “tasty” food.