Segmentation of Pg

1. Segmentation of the market:

Geographic | A-1 | A | B-1 | B-2 |

Benefits | Income | Income | Income | Income |

| L | ML | MU | U | L | ML | MU | U | L | ML | MU | U | L | ML | MU | U |

Style | Y | Y | Y | Y | N | Y | Y | Y | N | N | Y | Y | N | N | N | Y |

Natural | N | N | ? | Y | N | N | ? | Y | N | N | N | Y | N | N | N | Y |

Promotes Hair growth & Prevents Hair fall | Y | Y | Y | Y | Y | Y | Y | Y | Y | Y | Y | Y | Y | Y | Y | Y |

High quality and High Price | N | N | Y | Y | N | N | ? | Y | N | N | N | Y | N | N | N | Y |

Note: L: Lower class, ML: Middle Lower, MU: Middle Upper, U: Upper class

The classes are segmented based on the income level. The cities of India are classified according to the standard of living which is indirectly represented by HRA allowance and compensatory city allowance a s given by the Census of India (2001) and then by the fifth pay commission of 2007.

2. Selecting Target Market:

Parameters | A-1 cities Upper and Upper middle class | A-1 citiesLower and Lower middle class | A cities Upper and Upper middle class | B-1 cities Upper and Upper middle class | B-2 cities Upper and Upper middle class |

Identifiable | 9 | 6 | 8 | 7 | 6 |

Reachable | 10 | 7 | 8 | 7 | 6 |

Responsive | 9 | 5 | 8 | 7 | 6 |

Substantial | 9 | 9 | 8 | 7 | 5 |

Profitable | 10 | 5 | 9 | 8 | 7 |

Total | 47 | 32 | 40 | 36 | 30 |

On a scale of 1 to 10, the segments are rated according to the 5 mentioned parameters.

Size of Market:

Total males in all the cities combined = 25 million

Age wise segmentation of the target segment:

Target population which is the potential market for the product = 13.6 million

Segment Profitability:

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Segment Size ×Segment Adoption % ×Purchase Behaviour ×Profit margin %-Fixed Costs=Target Segment Profitability.

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Target segment profitability = 13.6 million x 38% x 1140 x 50% - 150 crore...