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HAFER
Group 6 Marketing Management DAJAL
Marketing Management Project
Segmentation, Targeting and Positioning strategy for HAFER
Group 6
Ankit Uttam
Ayush
Anjali Chauhan
Jaskaran
Divya Marvah
Lizzie
Jerin George
HAFER
Group 6 Marketing Management DAJAL
Introduction
DAJAL is a Global Company Committed to Building Long-Term Growth in Volume and
Profit and to Enhancing its Worldwide Leadership Position by providing Nutritious Food
Products of Superior Value”
VALUES
Accountability – we feel ownership for driving results
Integrity – we act with the highest ethical behaviour
Pragmatism – we are practical and action oriented
Collaboration – we encourage openness and candour
People – we foster a culture of engagement and passion to excel
DAJAL bets on innovation and growing demand to see off increasing competition on the
breakfast table.
Multinationals DAJAL, PepsiCo's Quaker, GlaxoSmithKline, Nestle and Dr Oetker, and
large domestic food companies Marico, Britannia, ITC Foods, Bagrrys and MTR Foods are
all now fighting for a pie of the Rs 2,000-crore breakfast category, which includes oats,
cornflakes, muesli, dalia and mixes of traditional breakfast like idli and upma.
Product
HAFER-Oat Bran Flakes
Company: DAJAL International corporation
HAFER
Group 6 Marketing Management DAJAL
STP
In marketing, STP stands for market segmentation, targeting (or target market selection) and
product positioning.
Most marketing textbooks will show the STP as three broad steps. In the following diagram, the three foundation stages of segmentation, targeting and positioning
Segmentation
It means grouping consumers by some criteria, such that those within a group will respond
similarly to a marketing action and those in a different group will respond differently.
Geographical
Metro Size: The product segmentation for our product will be based on Metro and the
future growth prospect of it.
Climate: HAFER-Oat bran flakes have long shelf life. Also there are no specific
storage issues with this product as far as the climate is concerned.
Geo
grp
ahic
al
Metro Size
Climate
Dem
ogr
aph
ic
Age
Income
Occupation
Psyc
ho
grap
hic
Social class
Lifestyle
Personality
Beh
avio
ura
l
Benefit
Loyalty Status
HAFER
Group 6 Marketing Management DAJAL
Demographic
Age: The consumers are segmented based on the ages, e.g., Kids, Working couple and
Old people.
Income: The customers are mainly segmented into two groups; middle class and
affluent.
Occupation: The occupation based segmentation is done job profiles of the working
couple and their needs of high fibre and nutritious breakfast.
Psychological
Social Class: The customers mainly people with high social index and aspirations
Lifestyle: The lifestyle based segmentation is yields customers that believe in fast and
efficient life and hence crave for a synonymous breakfast alternative
Personality: The customers are independent and high self worth people.
Behavioural
Benefits: The benefits are health benefits and fast preparation.
Loyalty Status: The customers that are not much loyal to other brands and looks for
new alternatives.
Targeting Strategy
After the most attractive segments are selected, a company should not directly start targeting
all these segments -- other important factors come into play in defining a target market. Four
sub activities form the basis for deciding on which segments will actually be targeted.
Out of Differentiated, Concentrated and Undifferentiated Strategy our targeting strategy will
be concentrated strategy since HAFER-Oat Bran Flakes is for a niche group of customers and
by using this strategy we will be able to target working couples and growing kids.
HAFER
Group 6 Marketing Management DAJAL
Positioning:
When the list of target markets is made, a company might want to start on deciding on a good
marketing mix directly. But an important step before developing the marketing mix is
deciding on how to create an identity or image of the product in the mind of the customer.
Every segment is different from the others, so different customers with different ideas of
what they expect from the product
We will position the product with the tagline “SWEALTH WAY OF LIFE” i.e. sweet
and healthy.
The HAFER-Oat bran flakes will be a sweet for the kids as they like sweet stuff but
this stuff is healthy which would be beneficial to their health. For the adults, the
benefits of this particular brand outweigh the benefits offered by other cereals in the
market.
This in turn would sway the customers from the regular brands to HAFER-Oat bran
flakes and even small kids and teenagers would like it and ask their parents to buy
them HAFER-Oat bran flakes
Further the only competitor in the market is Baggry's whose oats are not tasteful
which would also position our product as tasty
HAFER
Group 6 Marketing Management DAJAL
Product Benefits:
Benefits of Oat Bran
Every Time You Add Oats to your Diet, It may help in improving your Health
Oat is a whole grain like wheat, barley, corn and is called “jai” or “javi” in Hindi. Oat is
natural and one of the superior sources of fibre. It is a heart friendly grain, containing Zero
Cholesterol and Zero Trans fatty Acids
Heart Friendly Oats
As a part of healthy lifestyle, 3g of soluble fibre daily from oats in diet low in Saturated fat
and cholesterol may reduce the risk of heart disease.
Source: US FDA
Oats and Weight Management
Oats are good source of dietary fibre. Research shows that high intake of dietary fibre may
help in weight management
DAJAL Marketing Strategy for HAFER-Oat Bran Flakes
Well-constructed objectives are SMART objectives. They must be:
Specific
Measurable
Achievable or Agreed
Realistic
Time-related.
HAFER
Group 6 Marketing Management DAJAL
Each of the objectives set by DAJAL is clear, specific and measurable. The objectives were
considered to be achievable and were communicated to all staff. This made sure that all staff
agreed to follow certain actions to achieve the stated aims. The objectives were set over a
realistic time-period of three years. By setting these objectives DAJAL set a direction that
would take the business to where it wanted to be three years into the future.
Marketing Strategy
Having created an aim and set objectives, DAJAL put in place a process of planning to
develop a strategy and a series of actions. These activities were designed to meet the stated
aim and range of business objectives.
1. Supporting improved food labelling
In the area of food labelling, DAJAL introduced the DAJAL GDAs to its packaging, showing
the recommended Guideline Daily Amounts. These GDAs allow consumers to understand
what amount of the recommended daily levels of nutrients is in a serving of DAJAL food.
2. Sponsoring swimming programmes
For many years DAJAL has been working to encourage people to take part in more physical
activity. The company started working with the Swimming Federation of India (SFI) as far
back as 1997, with whom it set some longer term objectives. More than twelve million people
in the India swim regularly.
HAFER
Group 6 Marketing Management DAJAL
DAJAL plans to become the main sponsor of swimming in India. This ensured that DAJAL
sponsorship reached all swimming associations so that swimmers receive the best possible
support. DAJAL sponsors the SFI Awards Scheme with more than 1.8 million awards
presented to swimmers each year. This relationship with the SFI has helped DAJAL
contribute in a recognisable way to how individuals achieve an active healthy balanced
lifestyle. This reinforces its brand position.
Promoting exercise
Working with the SFI helped DAJAL set up links with a number of other bodies and partners.
For example, Hero is the India's leading sustainable transport organisation. Hero looks at the
different ways that individuals can meet their transport needs in a way that reduces
environmental impact. It is the co-ordinator of the National Cycle Network.
This provides more than 10,000 miles of walking and cycle routes on traffic- free paths
throughout the India. To meet its business objective of encouraging and supporting physical
activity DAJAL is developing a promotion for a free cyclometer which will be advertised on
television in 2014.
Walking is one of the easiest ways for people to look after themselves and improve their
health. To encourage people to walk more often, DAJAL has supplied a free pedometer
through an offer on All-Bran so that individuals can measure their daily steps.
During 2013 more than 675,000 pedometers were claimed by consumers. From a research
sample of 970 consumers, around 70% said they used the pedometer to help them walk
further. DAJAL Corn Flakes Great Walk 2012 raised more than £1 million pounds for charity
on its way from Mumbai’s Gateway of India.
HAFER
Group 6 Marketing Management DAJAL
STRATEGY 2
Communicating the strategy
Effective communication is vital for any strategy to be successful. DAJAL success is due to
how well it communicated its objectives to consumers to help them consider how to 'Get the
Balance Right'. It developed different forms of communication to convey the message 'eat to
be fit' to all its customers.
External communication
External communication takes place between an organisation and the outside world. As a
large organisation, DAJAL uses many different forms of communication with its customers.
The company has also produced a series of leaflets for its customers on topics such as eating
for health and calcium for strong bones. These are available on its website.
Internal communication
Internal communication takes place within an organisation. DAJAL uses many different ways
to communicate with its employees. For example, DAJAL produces a house magazine which
is distributed to everybody working for DAJAL. The magazine includes articles on issues
such as getting the balance of food and exercise right. It also highlights the work that DAJAL
has undertaken within sport and the community.
To encourage its employees to do more walking, DAJAL supplied each of its staff with a
pedometer. Such activities have helped DAJAL employees to understand the business
objectives and why the business has created them. It also shows clearly what it has done to
achieve them.
Research undertaken by DAJAL as part of the 2013 Family Health Study emphasised that a
balanced diet as well as regular exercise were essential for good all round health and
wellbeing.
HAFER
Group 6 Marketing Management DAJAL
DAJAL is demonstrating good corporate responsibility by promoting and communicating this
message whenever it can and by investing money in the appropriate activities. This was the
broad aim. To achieve this aim, DAJAL set out measurable objectives.
It developed a business strategy that engaged DAJAL in a series of activities and
relationships with other organisations. The key was not just to create a message about a
balanced lifestyle for its consumers. It was also to set up activities that helped them achieve
this lifestyle.
FUTURE TRENDS
In a rapidly changing and competitive business environment, it is not easy to predict:
Future trends in consumer tastes and preferences
Competitors' actions
Market conditions.
Brand managers aim to develop a long-term strategy to meet a range of objectives such as:
Growing market share
Developing a unique market position
Creating consumer or brand loyalty
Generating a targeted level of profit.
Competitors:
Major publicly-traded competitors of DAJAL include Baggrys and Kellogs.
TRENDS IN OATS SEGMENT
INDIAN BREAKFAST FOODS MARKET SCENARIO
According to reliable market research analysts, the Indian branded breakfast foods market is
now estimated at around $A100 million approximately. In
volume terms the total market size for all breakfast foods put together is in the vicinity of
14,000 tonnes of which rolled oats account for 4,000 tonnes per annum. The market for oats
HAFER
Group 6 Marketing Management DAJAL
alone accounts for more than 30% in volume and 18% in value next only to corn flakes
(which represents nearly 60 % of the total
demand).
The Indian breakfast market assumes significance because of growing
“health consciousness”,especially amongst the Indian middle classes in excess of 330 million.
DOMESTIC DEMAND
According to reliable market analysts, annual demand for imported oats by the breakfast
foods manufacturing industry ranges from 4,000 to 5,000 tonnes
Local production up in the Himalayan ranges in India and Bhutan is insignificant and is
predominantly used as a cattle fodder in that region. As a result, India imports oats from
Australia and other sources to meet the entire requirements of the breakfast foods
manufacturing segment. Demand projections are expected to far exceed the current annual
growth rate of over ten percent during the last two years in tandem with the Indian economic
growth. According to a major Indian market player –BAGRRYS –the oats market growth has
been phenomenal and rapid because of perceived health benefits. Beta glucan found only in
oats helps lower cholesterol and blood pressure. It also helps diabetics by lowering post
meals glucose levels.
With the increasing spread of diabetic and coronary diseases in India, oats is a category
expected to record rapid growth rates in the years to come as the Indian
consumers get increasingly health conscious with improvement in living standards. It is not a
niche category any longer. Although pricing is a factor, this category is now witnessing a
dynamic and positive growth.
Based on statistical data, based on the Indian Ministry of Commerce oats imports into India
from various sources of supply are:
April 2012/March 2012 April 2013/ March 2013
Country of
origin
Total Quantity
imported
(tonnes)
Value of
imports. (in US
$ million)
Total quantity
imported. ( in
tonnes)
Value of imports
( US $Million)
Australia 2978 2.04 5781 2.61
Germany 25 .02
HAFER
Group 6 Marketing Management DAJAL
UAE 11
UK 10 11
USA 1
Total 3000 2.05 5817 2.64
INDIAN CONSUMER BASE
India is now undergoing significant demographic and socio-economic shifts which are
transforming the makeup and nature of its consumer base. India has not only the second
largest population next to China in the world but also one of the youngest. It is estimated that
56 %of the population is less than 25 years of age and only 13 %above 50 years. Almost one-
quarter of the population is between 20-34 years.
.
CONSUMER CLASSES BASED ON INCOME
The Indian consumer market can be divided into four classes based on household income.
They vary in size and their different characteristics will impact on the growth and preferences
of each class.
Consumer
Class
Very rich. Less than 2% of households. Mainly work in large metros as senior professionals
in Government and private sector companies Live in big houses or apartments
and own cars, computers (including Laptops), and colour television similar to
western counterparts. Large disposable incomes. Geographic spread and small
group make them rather difficult for retailers to profitably target.
Middle
Class
Just under 25 % of households. Mainly graduates who are now middle managers
or small business owners. Live in apartments and own colour television sets,
computers, refrigerators, washing machines, telephones, mobiles, motorized two
wheelers or small cars. Enjoy shopping in modern retail outlets with their
families
although loyal to their neighbourhood stores.
HAFER
Group 6 Marketing Management DAJAL
Aspiring
middle
class
About 40 %of households. Occupations include shop workers and farmers. Live
in small apartments. About half own colour television sets and their own
refrigerators and telephones. Very price conscious and shop in traditional, retail
outlets or quasi super markets.
poor Above 40 %of households mainly rural and farmers Shops in traditional wet
markets and neighbourhood stores. Low disposable income.