Market segmentation core or distraction: product features more useless Department

This is a bit cold in the winter

G company is a large daily chemical products manufacturers, major products of shampoo, shower gel, sunscreen, cleanser, etc. In recent years, G companies face increasing competitive pressure. Daily chemical products manufacturers increasingly, cohabitation, transnational corporations, and a small workshop in villages and towns. Although G companies in the high-end market share and operating performance is fairly good, but fierce competition should not be any errors and deviations, Chen was their own responsibility in total.

Particularly in the areas of shampoo, G company of the large number of competitors, the major competitor Q company and B company marketing campaign is very strong. G company marketing department provides a weekly update on record with competitor critical marketing activities. Q the company some time ago to buy shampoo sent Coffee Cup events a great success, many consumers scrambling to buy, just to have a set of four mugs. B the company also launched a series offers complimentary activities, including the addition of fares, buy one get one free. In this market environment of the consumers ' price sensitivity is very high. This should be selling season for the third quarter, G company flagship product shampoo sales but wandering. The order total is very worried. Chen

Looking for Indus flakes and deciduous, Chen total suddenly feel this winter seemed particularly early. Read 20 pages thick, Chen eyes total start thinking about whether the company should take follow-up strategy, launches his offer, or a new path in order to break the negative market?, achieve expected sales targets, the company can do what?

Tomorrow is the monthly meeting time, Chen always thought, let the Secretary to the detailed notice of meeting, at which he listened to the various product lines in charge on the summary of the previous quarter and the next quarterly report on the Organization of work, the want you to be prepared, to achieve incremental sales volume shampoo for new ideas and proposals.

Full of "conflict" in the venue

Production manager Peter on market analysis, that differentiation is to beat the competition the best strategy. While the company's existing products and competitor's products in terms of major property, the difference in quality and price are products belonging to the same level, to achieve differentiation by the most direct way is to improve the products, the introduction of different functions, such as the shampoo for hair loss prevention of mental worker shampoo, for men to dandruff shampoo, etc.

Research and Development Department Manager Peter Simon while agree on product differentiation, but he believed that "launched with new efficacy of products" needs in the development and production on a significant investment, but also for the sales promotion are not immediate, requiring a relatively long period of time.

Simon think achieving differentiation in many ways, and not necessarily on the product and make a great improvement. He suggested, you can add the original shampoo "Silk glossy (SILK)" component, do not need to invest a great deal, and can be formed and the differences between the competing products, you can also display the brand of noble and elegant, attractive fashion young consumers. Last year P company introduces new lip when it adopted a similar strategy, P company lip in the major components, packaging, specifications are not making any adjustments, just add a silver light powder, the product is launched, it was praised for young consumers.

Marketing Manager Anna strongly against Simon, she thought that adding "Silk glossy (SILK)" component in improving the effectiveness and improve hair shampoo has no apparent effect, and the majority of consumers are clearly know this, increased sales of not too big. The proper practice is for Q, B company, get some more content and form of creative promotional activities contribute to consumers so that consumers really feel the company is to make profit.

Sales Manager, Lulu also presented their views. She believes in the brand competition, more in need of such petty concessions, the consumer will decide which company to benefit they'll buy which products, so give a little interests is necessary, the problem is how to send. She offered to send product-related gifts, not related gifts will make consumers think there might be a problem of product quality, with the purpose of the gifts which are solely for the purpose of promotion. Her advice is: send exquisite comb, hair pomade and let buyers really think the company is to consider.

Advertising Manager Tim doesn't agree with bonus gifts this promotional methods. In his view, all brands on the market are gift of circumstances, should not be passed to imitate these promotions to give back to the consumer, this will give consumers a misconception: the product quality than another company's product, or lower cost than the other, so in this way make up the difference. He very much agree with Simon's suggestion that while adding "Silk shimmer" components to improve the effectiveness of the shampoo does not have a substantive effect, but when consumers face different brands of homogenous products do not know how to select, "Silk shimmer" component will give them a certain hint of, so choosing it, regardless of whether it is really a real effect.

So we debate will focus on the "Silk shimmer" composition and "bonus gifts" two issues, we want to understand is the core issue: little interest, small kindness will not affect the consumer's purchase decision shampoo?

Controversy continues

After a short rest, meetings continue to hold. Simon goes on to speak, he will shine in the "silk" and "bonus gifts", is classified as a product of trivial features, why these non-important features or properties on consumer purchase decision process? he thinks this is a brand consumers when choosing the relevant mental state. Because consumers tend to be "lazy", they make a purchase decision, select brands, are often based on easy to judge, easily recognizable standards.

The face value of several pending further

Selected brands, consumers will first compare the brand of important attributes or features, if you compare a property or feature of the brand in the more important properties to show better, so consumers naturally choose this brand.

However, when several candidates brand in all important attributes are equal, or in some attribute having the advantage, in others it has a disadvantage on the properties, consumers will be faced with difficult decisions. In order to make a choice, they'll search more easily determine the information to help them make the right decisions. Then they need certain information as a basis for their correct judgment, so trivial feature to play a role. Of course, trivial feature only candidate brands important property is the equivalent when on consumers ' purchase decisions.

As Peter said, the shampoo in quality and price and a competitor's product in the same grade, in this case, the increase in the number of small interests may play a larger role.

At Lulu InOne, if "Silk glossy" gifts "and" bonus belongs to affect the consumer's purchasing decision making trivial features, then the "bonus gifts" in the operation of the feasibility and convenience are better than in the product added "Silk shimmer" component. In that case, why not simply select gift, be sure to select Add complex "Silk shimmer" components?