Mapping SEGMENT ATTRACTIVENESS in a Category.
A Follow up post to – Category Segmentation.
Having identified UNDERSERVED & UNSERVED Niche segments(Ideally limited to 2-3) in your Focus category, you now need to run each past the below framework.
To zero in on the most attractive Target segment.
A Framework to assess ‘SEGMENT ATTRACTIVENESS/RIGHT TO WIN,.
- Size/Scale
- Growth, existing as well as potential over the next 3-5 years
- Profitability
- Your Ability to add Value to consumers vs competitor brands, through Superior products/concepts.
This is at the intersection of what consumers value, what competitors are not offering and what you’re good at.
Dove offering Moisturisation in skin care/hair wash, Dabur offering the goodness of natural ingredients.
This capability is critical.
- Manufacturing capability
- GTM- Go to Market capability.
Securing Distribution, Listing, Shelf Share, Visibility Share across Channels
7. Promotion Spends Sustenance- Ability to sustain competitive Spends during the next 3/5 years not just the first year of Launch.
This framework is at the intersection of:
– OPPORTUNITY/STRUCTURAL ATTRACTIVENESS of the Segment, and
– CAPABILITY(Value proposition/Competitive advantage) relative to competitors.
The Segment with the best Fit should serve as your TARGET SEGMENT.
Having identified your Target segment, you can then focus on creating a compelling BRAND POSITIONING.
Do let me know what you think.