The essence of strategic marketing

The meat of st arraygic martThis report designed to provide pr promptical recomm reverseations on instalmenting commercializes, tailing particular proposition customers, and location effectively SGNs do in china grocery.Having turn to the purpose of STP, it has ascertained that SGNs competitive advantages and potential competitors, the breakdown and targeting markets decisions for SGN thus proposed to expend geodemographic variables as sectionalization bases. The devil member profilers of SGN were formed after exercised profound variables. Profiler 1 is a class of aged citizens of age 60 and to a blueer(prenominal) place and profiler 2 is a root word of middle age citizens from 40 to 60 years senescent works professionals. Upon evaluation of market attractiveness of these two distinct segments, it is advised that SGN targets both segments, adopting toilsome trade schema, via single trade potpourri. military stupefy strategy adopted by SGN is much for l ittle jimmy hypnotism and view statement as To senior citizens, SGN offers the ut closely personalize ancient assist at their collection plate.Read this report for SGN practical trade tool to easily deal with the challenges and exploit market opportunities that drive additive revenue and increased profitability. The whole point of this proposal is to assist with fool crack segmenting, targeting, billet and decision making, be sure that focus on the approximately appropriate strategies that provide the most opportunity, least risk, and elevatedest performance for SGN.TABLE OF circumscribe demonstration 5Background of the club and the Service Chosen 6Literature Review of the Segmentation, Targeting and setConcept research this theoretical under(a)pinnings of this archetypeand critique . 7 primer for Proposed Segmentation and Targeting for SGNs Service 16 seat for Proposed Positioning for SGNs portion . 21Annual agendum for the Programme including selling c ipher/Expenditure .... 24 culture . 25References .. 261. IntroductionThis report aims to develop and propose the Segmentation, Targeting and Positioning strategies for the personalized elderly home-c ar service in china, offered by Sunrise Greyc argon Network Co. Ltd (SGN). Chapter 2 briefly describes the SGN certification and up to 24-hour service that is provided for the senior citizens in mainland China.Segmentation, targeting and spatial relation concepts from various books are critically assessed and discussed in Chapter 3.Chapter 4 contains valuable training of the basis of proposed cleavage and targeting for SGNs service and Chapter 5 discusses on the positioning map, competitive advantages and value proposition of SGNs service.Chapter 6 tabulates the annual schedule of the programme that includes selling budget/expenses and the terminal conclusion testament be made in Chapter 7.2. Background of the Company and the Service ChosenCompany ProfileSunrice Gray feel fo r Network Co.,Ltd (SGN) is specializing in offer home- foundelder cautiousness service up to 24-hour to families in China. SGN grows its first footprint in capital of Red China to offer a curious proposition to senior citizens. The whole team is dedicated to improving the quality lives of the elderly.SGN helps with either facet of daily living, from escorting on appointments and companionship, to housekeeping and personalized healthy screening to the seniors. Above all, elderly are always enjoying a safely and comfortably at each home with SGN address, instead of staying at treat house.Mission StatementVision To make SGN the cover song of mind company for senior circumspectionMission supplement our unique strengths to render reliable service and carethat exceed clients expectation. creed Work with passion, commitment and professionalism3. Literature Review of the Segmentation, Targeting and Positioning Concept research this theoretical underpinnings of this concept and criti que3.1 Introduction of Segmentation, Targeting and Positioning (STP) securities industry segmentation, targeting and positioning are the three steps, as shown in be emit Figure 3.1, that round top management has to decide before the implementation of any marketing be after in a company.Figure 3.1 Steps in Market Segmentation, Targeting and PositioningMarket segmentationIdentify bases for segmenting the marketDevelop segment profilesMarket targetingDevelop measures of market attractivenessSelect target segmentsMarket positioningDevelop positioning for target segmentsDevelop a marketing mix for each segment stem Armstrong, Kotler Da silva (2006, p.213)These steps are defined by Armstrong, Kotler Da Silva (2006) as followsMarket segmentationDividing a market into distinct convocations with distinct reads, characteristics, or behaviours who might fill separate harvest-times or marketing mixes.Market TargetingThe process of evaluating each market segments attractiveness and selec ting iodin or more segments to enter.Market positioning pose for a product to occupy a clear, distinctive, and desirable place congeneric to competing products in the minds of target customers.3.2 Market segmentationMarket segmentation is the act of dividing a market into distinct groups of buyers with contrastive subscribe tos, characteristics, or behaviors who might aim separate products or marketing mixes (Armstrong, Kotler Da Silva 2006).Market segmentation is pre-requisite to gravel the right market and mountain at a maximum. It drives markets increase and increases sales to the chore profitability from authors viewpoint.The effectiveness of segmentation should be measurable, accessible, substantial, variousiable and actionable (Smith 2003).Segmentation helps to see the target customers more effectively. The customers have different requirement and aims and influenced by different media. A segment is a unique group of customers who share some common characteristics that make them different from other groups of customers (Smith 2003). Some segments have different needs, require different versions of the corresponding product, pay different tolls, buy in different places, corporationnister be reached by different media (Smith 2003).Consumer markets can be segmented by umpteen different variables which include geographic, demographics or social statistics, geodemographics, psychographics and behavioralistics. Smith (2003) explains these five categories as below(1) Geographic categorized by location which includes streets, towns, cities, regions, countries, continents, and climate, population niggardliness and so on.(2) demographics (social statistics) segmented by age, gender, marital view, breeding cycle, social class, education, course type, social class, income take aim, because ofconsumers needs and wants change with to a higher place-menti whizzd elements.(3) Geodemographics this mixes geographic and demographic data to create categories of house-type with locations.(4) Psychographics segment market based on populations lifestyle, personality, attitudes in uniformity of their psychological feature. Lifestyle is often segmented by marketer among others factors.(5) Behavioralistics bahavioral segmentation reflects the benefits consumer enjoyed and the consumption rate of products or services. Different consumer seeks benefits differently from own perspective. The consumers are divided by light, medium and heavy level as per individuals frequence of usage.The other type of segmentation, according to Smith (2003) is industrial, governmental or business-to- business markets. The organizational markets are segmented by personal characteristics of organizational customers and the benefits sought. The most common profilers for organizational markets are grouped as followsType of organizationSize of organization (heavy or light user)Geographical location collective cultureOperating characteristicsJob titlePur chasing approachesApart from above profiles, it is felt that marketer too needs to find out who is the end user of organization so as to better understand the acquire customers wants and needs. How the customers would use the product or service, the answer helps improve or put in the product or service to satisfy customers needs. Identify the usage rate which affects sales volume and sales forecast. Lastly, who is the purchasing person and the relationship with purchasing organization is very pertinent to the markets segmentation, because the product or service can be segmented precisely to the buyers once corporate strategies and demands are advantageously perceived.Researchers from McKinsey and others institutes have studied commodity markets, it showed that even customers in commodity market are classified by three segments. Customers concerned about embody more than quality who are Price-sensitive buyers. Whereas, people go for quality purity and deliverables-focused fall into service segment. The commitment customers are close to amount value, thereby winning a huge-term relationship (Doyle 2002).While E-commerce is impacting the lives and lifestyle of people, umteen people prefer to research the related products and rely on the meshwork as guidance before purchase. In the Reverse Segmentation pinpointed by Kotler, Jain and Maesinecee (2002), customers inform companies of their likes, dislikes and other key messages by answering online questionnaire. The information can be used by the company to construct customer segments. The company can then develop appropriate offerings for the different segments. Marketers can respond to reverse marketing by paying attention to the customers foursome Cs enhanced customer value, lower cost, improved convenience, and better communion (Kotler, Jain Maesincee 2002). They need to explore the customers cognitive space, assess the companys competency space, and jinx the collaborators resource space (Kotler, Jain Maesincee 2002).Although segment variables vary with different products or services, the author feels that demographics is the most easiest and fastest way to segment the markets which can be measurable and differentiable in marketplace. The strengths are these information of demographics are quite steadfast compare with others categories, people can change their location, lifestyle scarcely most of people cannot change age and gender. The data can be attained from local anesthetic authorities and other professional organizations without or less costs.3.3. Market TargetingTarget marketing evaluates each market segments attractiveness and selects one or more segments to serve (Armstrong, Kotler Da Silva 2006).To target the beat out market segments, the company should analyze each segments size and growth (product life cycle), profitability and competition, structural attractiveness and compatibilities with company objectives and resources (Armstrong, Kotler Da Silva 2006 ).Chaston (1999) also mentions that the identified segment must be of an adequate size, the higher costs of servicing customers needs can be recovered through charging higher prices, the segment is accessible to the supplier and the selected marketing position is resistant to the posterior entry of competitors.According to Armstrong, Kotler Da Silva (2006) and Doyle (2002), selecting the silk hat target segments remove below strategies which depend on company resources and product itselfUn tell apart marketing offers a product for potty market, requires mass production, mass distribution and mass promotion for the like product to all consumers without differences among segments.Differentiated marketing develops different market offers for two or more segments.Concentrated marketing deferral market focuses on completely one or a few market segments. It is especially favored by companies with contain resources.Micromarketing it includes local marketing and individual marketin g. Products or services are tailor-made in search of unique needs from specific individuals and locations.Above are concepts of common target marketing strategies and marketers often adapt to one of them to market their products/services.The author favours concentrated marketing because it provides a strong foundation to build up story and gain a great market share effectively. This marketing strategy also helps small company to reduce costs and maintain high prices. However, there is a risk involved as once the segment grows rapidly, it will likely attract larger competitors.Market PositioningPositioning is all about how a product or service is positioned or perceived in the minds of a target group of customers. It answers the question why will someone in the target market(s) buy my product or service instead of the competitors? (Lodish, Morgan Kallianpu 2001).the Statesn academics Aaker and Shansby categorized all the variables into six groups as follows (Smith 2003)Attribute, eg gentleness, ruggedness, tastefulPrice and quality, eg premium-quality image or value-basedUse or application, eg associations with a particular situation or occasion for useUser, eg linking the product or service to types of users, lifestyles, profilesProduct class, eg positioning in diet foods or in normal foodsCompetitors, eg positioning against a competitor and competitive advertisingperceptual maps help to devise positionings and repositionings. Product positioning maps are drawn with their axes dividing the biz into four quadrants. This is because most of the parameters upon which they are based typically range from high to low and the two attributes usually considered are quality and price. However, it is felt that real-life product positioning maps will be more complex as there involves a number of dimensions, apart from the two attributes being considered.A products position is a complex set of perceptions, impressions and feeling that consumers have for the product comp ared with competing products. A product or service must differentiate its offer by building a unique bundle of benefits that appeals to a substantial group within the segment. Beyond the product differentiation, companies also can be differentiated by hiring better people which overtake other competitors. everydayly, there are five winning value propositions to brand the products positionings more for more, more for the like, the same for less, less for much less, or more for less (Armstrong, Kotler Da Silva 2006).Doyle (2002) adds that companies must gauge the 4 criteria so as to structure the derivative advantages properly among customers. Successful marketer will always design the products or services that are unique, sustainable, profitable and offering benefits to customers.Overall, the author feels positioning is an issuance of differentiation strategy, the outcome of positioning ultimately is to create and anchor a market value proposition into the minds of targeted cust omers within segmented territory. It is proved that products unique proposition is associated with strong marketing communications and planning, in which deliver the heedful position and convey the key message to target customers along a continuum. The distinctive benefit, chosen position and brand awareness take a long time to plot and map out through unchanging market effort.Although customers hardly change the original product perception in mind, but marketers often choose to repositioning the product when the target markets changes.4. ground for Proposed Segmentation and Targeting for the Service ChosenArmstrong, Kotler Da Silva (2006) have a checklist of segmentation bases which serves a knife to slice or carve up the segments correctly. Marketer must draw a close attention to the temper of the product and market, to select the most relevant variables for the best segmentation bases.Demographic variables age, disposable income, gender, occupation etcGeographic variables ur ban, suburban, rural etcBehavioral variables benefit, occasion, usage, loyalty status etcSunrise Graycare Network (SGN) divides customers into different groups based on age, income level, location and population density.China has the largest elder population in the world, which accounts for one fifth of the worlds total older population. The older population over 60 is 143 million by 2004, accounting for 10.97% of the total population. on that point are 11 provinces and municipal cities which are above the national average in population ageing. capital of Red China is among top of them is about 13.66% (Xiao 2007).According to the latest statistics released by 2010, the elderly population of capital of Red China has reached 2.54 million (CPDRC 2010). Beijings graying population is pass judgment to grow to 6.5 million by 2050, when one in three people will be older than 60, the aging committee estimates (Cao Quan 2009).The shortfall of elder care service can be seen in Beijing. A n example for whose nurse homes can only accommodate 9,924 people retributory 0.6% of the senior population.With longer life expectancy, growing affluence and the effectuate of Chinas stringent One Child Law policy leaving the elderly with a child unable to care for them (Retirement Homes 2005).Aging residents in China usually are traditionally taken care of by their children. However, straightaway young peoples lifestyles have been changed, job competition caused growing work pressures, invariably overtime and anxiety. Many young couples turn to professional service to behavior after their parents and grandparents (Zhang 2010). A great shortfall in eldercare in China is a serious problem caught attention by government.Seeing the size of the graying population, SGNs segment groups specifically are working adults and 60 years old and above old people in Beijing. Working professionals at middle-age who need to take after both parents and parents in law, they will also need to r aise and educate their children simultaneously. These people born in the 40s to 60s are get up generation, they are often very tired in keeping eternal rest between life and work.A salary written report conducted by America Huiyue Company showed that Beijing Managers earn the juiciest salary, earning the highest salary among other cities in China (AsiaInfo Services 2002). It is believed that these people have sound financial condition and need professional care to lighten their burden.The feature of SGNs locations is a great access to very famous hospitals where potential clients frequently visit with their parents. SGN businesss located in golden districts and only take about 5-10 minutes walking keep to the hospitals and residential areas.Hence, the segmentation bases zoom SGN target groups in two better segments as belowSegmentationAgeIncome LevelLocation existence densitySegment Profiler 160 and aboveRMB24,000 p.a. and above downtown in Beijing, adjacent to local communiti es eminentSegment Profiler 240 to 60RMB36,000 p.a. and aboveDowntown in Beijing, adjacent to local communitiesHighAs Doyle (2002) specifies that there are five factors govern the attractiveness of the segment, to witSegment sizeSegment growthProfitability of the segment live and potential competitionCapabilities of the businessAfter evaluating the two different market segments, SGNs targeting markets are chosen for both segment 1 and 2 based on the five factors. Due to SGN is a start- up company with limited resources, therefore, concentrated marketing strategy (or niche marketing) is deployed for the two targeting markets. The detailight-emitting diode compend on attractiveness of the chosen targeting markets is as follows1. Segment sizeBy 2050, the elderly Chinese will outnumber the entire U.S. population (USA get together Nations Department of Public Information 1999), the elderly population in Beijing is about 2.54 million in 2010 (CPDRC 2010). Such a large size of targeting group determined SGNs market prospective.2. Segment growthBeijings graying population is expected to grow to 6.5 million by 2050, when one in three people will be older than 60, the aging committee estimates (Cao Quan 2009). The data indicated clearly that the potential growth is positive, in other words, the peak of elderly service will not be ebbed but upsurge instead.3. Profitability of the segmentSGN used concentrated marketing strategy to market efficiently, which reduced marketing costs but focused to best serve consumers in the same way and to achieve profitability. The nature of business is considered a low enthronization yield high returns. No inventory worries.The other side, the eldercare business in China, according to Service Industry Tax Rebate Policy under Chapter 12.1 Elderly Service, it stipulated that agency for elderly service, disabled service, matchmaker agency, funeral service will not be taxed for the beginning of 3 years of business (BJ local Taxation Bur eau 2010). It seems that the local government is actively promoting eldercares business by waiving off business tax and it is believed that there will be more benefits coming. It showed that SGN targeting markets can be most profitable.4. Current and potential competitionThere is still a big gap to be filled and catered for the lout graying population in China. Currently theres no direct competitor in Beijing, the competition will not be fierce. Although a numerous nursing homes and household agencies in local market are seen as verifying competitors, but SGN is the first company only practicing home-based eldercare service for aged 60 and above seniors, it makes SGN the top of mind company before any other rivals presence.5. Capabilities of the businessSGN established a team which is filled with versatile leading who will inspire people to render the professional senior care to the targeting groups. The manpower capability is one of the companys key competitive advantages for bu siness sustainable. SGN is hiring a pool of qualified and capable people to take challenging tasks every day, provided with on-job training regularly for continually business productivity. With sufficient staff on board, it is enabled to maximize business sales volume on daily basis.SGN office sites are located in four primary districts in Beijing. It serves as an extensive network to attract senior residents in each district.5. Basis for Proposed Positioning ChosenBelow Figure 5.1 shows the positioning map of verifying competitors and proposed SGNs position for on-going market situationFigure 5.1 Positioning subroutine timbrePriceLowHighHighLow clop ACluster BCluster C= Indirect competitors= SGNSource Adapted from Armstrong, Kotler and Da Silva (2006, p.236)According to recent research and survey conducted by SGN, it is found that the two important attributes that customers want are Quality Service and Price. These survey results are plotted in a positioning map as per Figure 5. 1, which illustrates the existence of three clusters in the current China market.Clusters A, B and C are indirect competitors for elderly care service, they are either nursing homes, household agencies or hourly amah service. The brands bundled together within Cluster A considered prestige segment collectable to high price and good service (quality), Cluster B represents the brands that are categorized in middle segment, their price and service ranked in average range. Those brands in Cluster C are pricing low and qualities are also in low level, competitors in Cluster C fall into economic segment.It is proposed that SGN positions itself as more for less for its value proposition, as shown in Figure 5.1. This value proposition is most welcome by customers and will enable us to greatly differentiate from these indirect competitors.SGN has the next competitive advantagesI. FocusSGN is only focusing in aged care solution, committed to deliver the highest standard quality of work to elderly for better quality of life.II. Home sweet homeDespite of the modern nursing homes are equipped with most advanced facilities, it is always clean or sterilized all the while. The caregivers are professional and sympathetic, but people just feel aging there is depressing in China. Home is the best place to stay is what SGN endorse and practice. The environment is a key to go over that clients enjoy themselves to a greater extent.III. Comprehensive serviceSGNs unique in-home care is covering all concerns from elderly people, from physical level to spiritual level needs, which other competitors are not able to fulfill some specific requirements.IV. StaffSGNs dedicated team is well-trained knowledgeable personnel with pleasant personality. General Practice Team is to handle the daily routine work for older people, medical and health care is handled by interdisciplinary team led by Geriatric Care Manager.V. Service agitateSGNs service charge is subjected to the frequency and dur ation. SGN service charge is more flexible than other competitors, price options will enlarge client base and engage them from short-term to long term clients through their experience.The benefit chosen for SGNs positioning statement isSGN is the only service specialist for home-based elderly service.Hence, the overall positioning statement for SGN isTo senior citizens, SGN offers the utmost personalized elderly service at their home.6. Annual Schedule for the Programme including marketing Budget/ExpenditureAnnual Schedule -Year of 2011a) Budget and Deployment PlanCountryJanFebMarAprMayJunJulAug folkOctNovDecMarketing BudgetTotal BudgetBeijing, China-Ads (ATL BTL)-Open House (package promotion) E-marketing Printed collaterals Referral outlineChinese New Year Feb 03-05-Ads (ATL BTL) E-marketing Roadshow (community alliance)-Referral scheme Ads (ATL BTL) Open House (package promotion) E-marketing Referral scheme moil Day May 01- 03 Ads (ATL BTL) E-marketing Roadshow (community alliance) Referral scheme-Ads (ATL BTL)-Open House (package promotion) E-marketing Printed collaterals Referral schemeDragon gravy boat Festival June 06 Ads (ATL BTL) E-marketing Roadshow (community alliance) Referral scheme-Ads (ATL BTL)-Open House (package promotion) E-marketing Printed collaterals Referral scheme Ads (ATL BTL) E-marketing Roadshow (community alliance) Referral schemeMid-Autumn Festival Sep 12National Day Holiday (Oct 01-06)-Ads (ATL BTL)-Open House (package promotion) E-marketing Printed collaterals Referral scheme Ads (ATL BTL) E-marketing Roadshow (community alliance) Referral scheme-Ads (ATL BTL)-Open House (package promotion) E-marketing Printed collaterals Referral scheme Ads (ATL BTL) E-marketing Roadshow (community alliance) Referral schemeCost EstimateRMB5.000.00RMB3,000.00RMB5,000.00RMB3,000.00RMB5,000.00RMB3,000.00RMB5,000.00RMB3,000.00RMB5,000.00RMB3,000.00RMB5,000.00RMB3,000.00RMB48,000.00RMB50,000.00 SGN 2011TotalRMB48,000.007. Conclusi onUpon segmentation, two distinct segments were identified and evaluated of their market attractiveness. It is recommended that SGN targets both segments, adopting concentrated marketing strategy, via single marketing mix. These two segments are Profiler 1 is a group of senior citizens of age 60 and above and profiler 2 is a group of middle age citizens from 40 to 60 years old working professionals.The positioning strategy proposed for SGN is more for less value proposition and positioning statement as To senior citizens, SGN offers the utmost personalized elderly service at their home.