¶ … segmentation is the behavioral one, presented in the case study, that differentiates between therapeutic brushers (45%), cosmetic brushers (21%) and uninvolved oral health consumers (33%). This is the best market segmentation because it addresses three different groups of consumers clearly identifiable, which the companies can approach. As we have seen from the case study, Oral-B, for example, targeted the first category of consumers by promoting the "dentist's toothbrush" brand.
The first category comprises consumers who look for "functionally effective products." This means that they are less interested in any of the additional design features that may be added, but are quite sensitive to the generic product and, most notably, to the augmented product, especially the technical characteristics that will make it perform better. Oral hygiene is important for this category of consumers who brush twice a day (85%) and who most likely chose the product according to its technical features (better angle, rippled bristles, etc.).
The second category comprises cosmetic brushers, brushers for whom the priority is not necessarily healthy teeth, but teeth that look good. In this sense, this category of consumers is less interested in the technical characteristics, but will probably be keener to adopt some of the features from the design area. We should expect this category of users to adopt easier improvements in plaque removal or gum care, as the goal here is to "deliver cosmetics benefit."
The third category is least sensitive to components forming the augmented product and they are simply described by a "lack of interest in product category." In this sense, it is likely that there are other variables and factors that will affect their purchase behavior.
In this sense, one of them is price, which reflects the fact that the consumer income remains even in the toothbrush market a relevant segmentation variable. The first category of consumers I have mentioned is likely to belong to an upper level income position, with salaries that allow them to pay an extra premium for a product with better technical characteristics and one that needs to be changed more often in order to produce better results. The targeting strategy for this type of consumers was well speculated by Gillette: price is not the issues here, but quality and technical improvements. As such, one can augment production costs on one hand, in order to improve the products quality, while, on the other hand, a premium can be charged for the extras provided.
The second group of consumers can be more or less included in the same income category. The distinction between the two is not made on an income basis, but on the specific destination of the product, different for each case in part. However, the third category of consumers will never pay a premium and the targeting strategy for this category should consist of promoting cheap and simple products, which can bring significant profit margins.
The second variable on which market segmentation is based on in this case is age. There are three age groups worth discussing: the 7 to 14 age group, the 14 to 55 age group and the consumers over 55. The first group will be interested in "fun products." This was a characteristic for the 80s, but the tendency has still remained nowadays. While the parents usually buy the toothbrush in this case, it is likely that they will be influenced by the child's preference rather than the actual benefits of the product. While still keeping an eye out for a product that performs well, the parent will choose on an aesthetic motivation.
On the other hand, after this age, the individual becomes more involved in his personal oral hygiene. He will probably start purchasing his own toothbrush and will be included in one of the three behavioral groups I have previously discussed. After the age of 55, people seem to lose interest in tooth brushing and are likely to practice it less than earlier.
The most important issue that that managers should consider when deciding on product positioning is the category of consumer they choose to address. In this sense, clear segmentation schemes should be provided, included by income, age, social position, etc. These external environment factors will provide the basis from which the product can be developed, including here features that make up the augmented product and the expected product. Knowing the consumer you target is essential in making and delivering a products that will provide full customer satisfaction and will permit customer retention.
On the other hand, the manager needs to perform an internal analysis and decide, in terms of costs, human resource, etc. If he can produce and deliver the respective product to the respective consumer category. It may be the case that he cannot and he will need to further segment the chosen market in order to discover a flexible niche that he can successfully approach.
In this sense, a good coordination and correlation between internal resources ("what you can produce and deliver") and the external environment you are targeting ("what you want to produce") is important when positioning a product.
Product naming is extremely important in the launching phase because it may create an initial impulse or stimulus for people to try the product. On the other hand, I am not sure it plays such an important role in the toothbrush industry. However, persons in the first behavioral category may turn to a toothbrush called Precision if the name reflects any technical characteristics that improves brushing.
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