Blanket Marketing

Using blankets to understand “market segmentation” - a case study featuring the Delhi CM.

WrittenBy:Shovon Chowdhury
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 Fundamentals of Market Segmentation: I

 (There has been some criticism that this course is not “entertaining” enough. Please note that the purpose of this course is education, although small amounts of low quality entertainment may also be there. In order to benefit, you must learn, absorb, imbibe and respond. Why should this be so difficult? Look at Rahul Gandhi. Even at his age, he is studying. Surely you are capable of doing something Rahul Gandhi can do? You cannot become a Management GuruTMjust like that. It requires effort from your side. Whatever you give to the course, the course will give to you. In case you are not completely satisfied, Newslaundry will re-fund every paise of your fee.)

Why is Market Segmentation important?

 If you use the term “market segmentation” in any conversation, people get very impressed. This is because it combines two very powerful words in a unique way. A “Market” is a place where customers come and give away money, in the hope of getting something in return. Most companies are very interested in markets, except for the ones that make gas. They are more interested in ministers. “Segmentation” is a very big word which not many people clearly understand. It helps if you make a sharp chopping gesture with your hand when you utter the word “segmentation”. This makes you look confident, and also hints that you may know karate. People disagree less with people who know karate.

The next step is understanding what “market segmentation” means.

What is a Market?

 To you and me, a market is simply a collection of shops. This is lower class thinking. To more evolved people, a market is a theoretical construct. The market for a product is the sum total of all the people who are going to buy it. For example, the market for blankets would be the sum total of all those who want or need a blanket. Where these people live is irrelevant. What they do with the blankets is also irrelevant. Some could be in bed. Some could be in front of Rail Bhavan. This does not concern us. What concerns us is that they need blankets. In this thrilling episode of The 4-Minute Manager, we will be using blankets to understand market segmentation better. Later we will be using Indian English fiction.

(Chief Minister demonstrates floral pattern)

What is Segmentation?

 Segmentation is the key to marketing success. Remember this sentence. If you repeat this enough, you too could become a Marketing GuruTM. Whatever guidance you may be providing, if you say “Segmentation is the key to marketing success” in the beginning, you will get more money.

Segmentation involves chopping and slicing, but in a non-lethal way. By slicing the market in different ways, you can understand the market better. In order to do this, you must decide what the key drivers of the market are.

For example, in the blanket market, you could decide that “style” and “comfort” are the two main factors. This will enable you to put the market players in a map, which will help you in market analysis. At the very least, it will teach you how to draw a map. However, if you introduce a new parameter into the blanket market, such as “scaring policemen”, the whole picture can become different.New opportunities arise. New customers emerge. New marketing techniques may be required.

Let us understand this better through a case study.

Case Study I: Peepwell Industries

 Blankets have traditionally been a seasonal product, used only in winter. Many customers use the same blanket for years, leading to low re-purchase. Because of the lower potential for making money, blanket manufacturers are usually depressed, and make little effort to promote their products. Some of them actively hate their customers, and make their blankets rough so that they cannot sleep easily. All this, along with global warming, has made the blanket market very unattractive.

But lately, there have been dramatic developments in this market. One Mr K, who is also Chief Minister of Delhi, has spent two nights in front of Rail Bhavan, wrapped in a blanket. Many policemen tried to remove him and his blanket, but he refused. As a result, the blanket has received widespread publicity on facebook, Twitter and national television, where it has been repeatedly abused by Arnab.

You are the eldest son of LalaMaalPakar, patriarch of Peepwell Industries, an old and reputed blanket manufacturer. In fact, the company is so old that very few people remember its name. Your father expects you to now take over the company, as he wishes to retire to Scotland, in order to be closer to whiskey. He also wants you to marry the daughter of KP Jewellers, as he sees more of a future in jewellery.Plus itensures that the bride’s jewellery will be genuine. You, on the other hand, want to marry Abhisarika, a girl who makes candles, because your gratitude when she agreed to do it with you is something you simply cannot forget. Unfortunately, her father’s business is too small to justify a merger between you and her.

If you take up the challenge, and demonstrate success at Peepwell, your father may allow you to marry Abhisharika. Now that blankets are part of the national ethos again, this could be your big opportunity.

How will this event change the blanket market? What new market segments could emerge? What is the significance of the floral pattern on the Chief Minister’s blanket?Is this the beginning of a bold new India, where gender stereotypes are a thing of the past?

Can you re-define the market in such a way that Peepwell gains huge market share and becomes an iconic Indian brand?

The best answers will find special mention in the next lesson of The 4-minute Manager. 

The author can be reached at shovon@hotmail.com and on twitter @Shovonc

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