Product, Brand and their STP

We all are consumers. And everyone is aware of a product and a brand. For the ones who don't know their difference, a product is made by a company and consumers buy it through the medium called brand. A brand is formed by the experience, consumer perception and lots more. For example, Toyota's product is cars. 

A product can be made by different companies. While brand remains unique. And their are customers who prefer certain brands while purchasing. And according to the time and changing trend, the value of a product may go down. But the brand stand strong through it's name. For a brand, it is very important to have experience and built trust in the sector and within the consumers to strengthen it's positioning. 

For more details, let me take three product categories and brands which come under it. By knowing their STP, we can analyze them differently. 

The first category that I have selected is of cars and the three brands I have chosen is Hyundai, Maruti Suzuki, and Skoda. 

The Hyundai Motor Company Officially Launched its brand in 1967, but the origins of the auto giant go back a bit further, to the post-war world of South Korea.

While studying the segmentation of Hyundai, they uses behavioral and psychographic segmentation variables to segment the market in homogeneous groups. It is majorly in an economic segment and is entering the premium segment through it's offerings in SUV's segment and new showroom setup i.e. Hyundai Motorstudio. 

A different targeting strategy is used by Hyundai to target customers and satisfy their needs and wants. A middle class customer would not mind paying extra for value addition. The different editions of cars launched by them attained the hearts of millions already. 

Positioning is the most important aspect that drives the market forces. Hyundai uses a mix of product and value-based positioning strategies to create an experience for their customers rather than selling it's product. Hyundai is the second largest carmakers in India. Hyundai motors have created a consumer-centric smart service which helps it increase the credibility and efficiency in the after sales service.

Hyundai's USP is commitment to safety, quality and reliability of products. They believe in making modern Premium cars with innovative technology, cutting edge design and global quality standards. A Hyundai car is made with utmost care and regard for consumer and their families. The company always fulfilled the expectations of consumers by giving them technologically advanced cars with more features and more value for money. 

Hyundai Motor India has a wide sale network of more than 866 outlets pan India and backed by a service network of more than 1,235 outlets. By the sales of  Kia Seltons, they haave been able to increase their market share by 4.5%. They will be launching more under this and they will manage an increase in it's market share even more over than the last years. 

The next one is Maruti Suzuki. Maruti Udyog Limited was founded by the government of India in 24 February 1981, only to merge with the Japanese automobile company Suzuki in October 1982. The first manufacturing factory of Maruti was established in Gurugram, Haryana, in the same year.

 It has a wide range of models in almost every segments of the automobile market. Maruti Suzuki offers 16 brands and 150 variants spanning across all segments. Thus serving the diverse range of customers. The brand product strategy focuses on catering to the needs of almost all the segments from the middle class to high class. With cars in the economy segment, mid-range segment, luxury and super premium segment, target group for the brand includes anyone above 4 Lakh salary. This include, people to switch from 2-wheeler to 4-wheeler, rich ones, and people who are employed as professionals and managers. The middle class, upper middle class, high class, and affluent class the age bracket of 21-65 years comprises of its target group. It is positioned as  16 brands in many ways to serve different wants and desires of consumers. For example,

Alto - the most fuel efficient car which can be afforded by lower income groups as well.

Wagon R - the brand which goes well with people who want to lead economic and interesting lifestyle, reflect confidence and have the multifaceted personality.

Swift - the car with style, modern looks, and young attitude.

Swift Dzire - the entry-level sedan for the aspirational class.

SX4 - the powerful car for men. 

Ertiga - the compact seven-seater, one which will have a small footprint and a tight turning radius. 

The biggest USP of Maruti Suzuki is it's price. With about three decades of existence in India, the brand enjoys the widest dealership network. This means it has more exposure to car buyers and they manufacture higher quality.

They continue it's strong domination both in Indian market and in exports as well with the company selling over 1.64 million vehicles to bring it's market share close to 50% i the domestic market and exporting 4-wheelers to over 125 countries globally to become the largest passenger cars exporter from India. It not only managed to sustain its huge sales number but has also increased it's market share both in the urban and rural market.

The next one is Skoda. Skoda Auto, commonly called Skoda, is a Czech automobile manufacturer established in 1895 as Laurin & Klement and headquartered in Mlada Boleslav, Czech Republic.

 The basic aim of the company was reasonable and affordable price of cars. So they kept the cars in simple and sober manner. 

The USP of Skoda is that, it offers cars which are comfortable, spacious, elegant and smooth performer. Being in the automobiles sector, it is segmented towards the automobile users. The urban families and businessmen are the target market of Skoda. And it is positioned as a value-for-money car manufacturer providing comfort and spacious interiors.

Skoda is looking more sales in India to corner up 3% share of the automobile market by 2023. They are planning to be expensive in the marketplace to deliver the best customer satisfaction. 

Electronics is the next product category that I have taken. In this we will analyze Whirlpool, Godrej and Hitachi.

The Whirlpool Corporation is an American multinational manufacturer and marketer of home appliances, headquartered in Benton Charter Township, Michigan, United States.

Whirlpool always understands Indian market and launches products through customer needs, mainly based on the technology, price and service. This is the first manufactured product of home appliances. The market share of whirlpool is above 25%. In segmentation, it covers all the features expect for modular shelves, all of them are single metallic bodies. In this segment ranges from 180 to 230 liters. The price varies from 8850 to 12700. In this master price is the base product with unique health guard, thick door design and jumbo bottle neck. The premier segment in whirlpool features values compared to the direct cool. This type of refrigerators are technically advanced and are aimed to reduce frost information in the refrigerator. The most profitable segment in the whirlpool. There are 21 models in it. The price and capacity is more when compared to others. 

When comparing it's targeting, for the direct cool segment the consumer requirements are low capacity i.e house holds, small shop keepers, bachelors. for the frost control segment is the average amount of income and is mainly targeted in the middle class. The frost free segment mainly targets on high income and large storage capacity. But rather than all this the advertising target of whirlpool is housewives. And hence, the primarily target is housewives.

While looking the positioning of whirlpool, mainly it stands as a homemaker. It is mid priced in the premium segment. The USP of whirlpool is to produce energy efficient appliances. The market share of this is 22.8% in the direct cool segment, 17.5 % in the frost free segment and 14% in the washer segment. Whirlpool has manufacturing facilities at three locations in India to manufacture refrigerators and washing machines.

In fact 'Whirlpool whirlpool' is the jingle which no one forgets. 

Next is Godrej. It was founded by Adi Godrej and Pirojsha Burjorji Godrej in 1897.

 It uses the mix of demographics, geographic and psychographic segmentation variables such as income class, profession, age, gender, behavior, region etc. Selective and differentiated targeting strategy is used by the company for offerings of different group companies. Godrej uses value based and user based positioning strategy to highlight the intrinsic culture and attachment that the brands have with the customers over the years. 

+++ And every Indian household is targeted, especially middle class. And the value of money strengthen it's positioning. 

The USP of Godrej is to provide superior quality and affordable products. The market share of Godrej is 12.6% and increasing day by day.

It is more like a family member, which always stays close to every house.

Coming to Hitachi, It was founded in 1910 by electrical engineer Namihei Odaira in Ibaraki Prefecture. The company's first product was Japan's first 4-kilowatt induction motor, initially developed for use in copper mining. The company began as an in-house venture.

 We can find that it uses different segmentation strategies for different set of it's businesses. Majorly it uses a mix of demographic and geographic segmentation strategy. And differentiated targeting strategy is used by the company in order to serve different segment of consumers accordingly. And with it's vision and mission to socially connect and solve the different challenges that the communities face across the globe, it uses value based positioning strategy. 

The USP of Hitachi is it's brand name itself. It is the top brand in India with a 12% market share in AC segment and intend to add a per cent or two by the end of coming year. The aim of Hitachi is to reach every Indian household and become India's leading AC brand by coming years. 

Now, let's move on to the next product, cloths. And the brands I have selected are, FabIndia, Levi's and Allen Solly.

FabIndia was founded in 1960 by John Bissell to market the diverse craft traditions of India, FabIndia started out as a company exporting home furnishing.

 The USP of FabIndia  is, completely Indian products. So in segmentation, we could find men and women who want to buy complete Indian products, the urban upper and middle class families are the main target segment and while looking at it's positioning, we can find it as a lifestyle brand which is Indian at heart. 

By the effect of demonetization and introduction of GST they where heightened and prolonged. They had to face a loss of 57 crores. Only 2% rise was seen last year. 

Everyone prefer to follow fashion and trend. And FabIndia helps them finding new trend. Simple fashion, better price and quality keeps attracting people. And the availability of various choices makes it different from the others.

Next is Levi's. Levi Strauss & Co. The company traces its origin to Levi Strauss (1829-1902) a Bavarian immigrant who arrived in San Francisco in 1850 during the Gold Rush, bringing dry goods for sale to miners. Hearing of the miners' need for durable pants, Strauss hired a tailor to make garments out of tent canvas. Starting from this, now its a well known brand.

 The segmentation looks into the characteristics like geographic, demographic and psychographic segments and behavioral characteristics like occasions, benefits etc. Urban region contains 31% of it's target market. While analyzing gender, men contribute about 85% and women contribute about 9% to the segment. While it targets more on go getters, followers and rationalist. The difference in the brand and its name keep it's positioning high. The old touch and unique style keeps it unique from others. The USP of Levi's is old jeans brand yet modern. This is absolutely included in customers wish list.

Levi's is continuing it's diversification strategy, with plans to expand it's accessories line and explore new women's categories. It continues to grow it's market share in women's denim, where it currently occupies the no:2 position. This was grown 14% last year.

And now, the last one is Allen Solly. It comes under apparel and accessories. It was founded in 1744 by William Hollin and Co Ltd. The brand was brought in the 90's by a company called Madura Garments. Aditya Birla Group acquired Allen Solly in 2001.

 The segmentation category for this is the young fashion conscious women and men. And urban men upper class and upper middle class are it's target segment. By saying it lighten up the workplace, Allen Solly concretes it's positioning. While looking the market share it holds, last fiscal, it's revenue stood at 600 crores. Men's wear enjoys a lion's share of Allen Solly revenue, with women's apparel constituting only 18% and children's wear 7%. Adding exports, mainly to the Saarc countries and West Asia, constitutes 5% of the turnover. 

This is always unique and favorite to classy group of people and business types. A gentleman touch is always visible in this brand. And this makes it different though.

By presenting these information, I just entered deep into these brands. This type of understanding helps us know more about so many things and of course the marketing environment. Keep searching and you could know more about these things. And for sure, certain changes may arrive according to time.

Sources cited,

 https://www.marketing91.com/marketing-strategy-hyundai-motors/

https://www.marketing91.com/marketing-strategy-of-maruti-suzuki/

https://www.ukessays.com/essays/marketing/market-and-strategy-analysis-of-skoda-marketing-essay.php

https://www.ukessays.com/essays/marketing/market-and-strategy-analysis-of-whirlpool-marketing-essay.php

https://www.marketing91.com/marketing-strategy-of-godrej/#:~:text=%20Marketing%20Strategy%20of%20Godrej%20%201%20Segmentation%2C,Godrej%20business%20segments%20are%20categorized%20into...%20More%20

https://www.marketing91.com/marketing-strategy-hitachi/

https://www.scribd.com/document/255561161/Fabindia-Marketing-Strategy

https://www.marketing91.com/marketing-strategy-levis/#:~:text=%20Marketing%20Strategy%20of%20Levis%20Strauss%20%26%20Co.,in%20the%20Marketing%20strategy%20of%20Levis...%20More%20

https://www.marketing91.com/swot-analysis-allen-solly/