A Report On

Market Segmentation, Targeting, Positioning (STP) plan for

“Parachute Advanced Onion Hair Oil”

Najmatul Jannat
Id : 11805043, Session : 2017-18
Leader of the team
Department of Management Studies,
Comilla University.
 A Report On
Market Segmentation, Targeting, Positioning (STP) plan for
“Parachute Advanced Onion Hair Oil”

Prepared for :
Md. Jahid Hasan
Assistant Professor
Department of Management Studies,
Comilla University.

Name ID No
Toma Rani Karmokar 11805009
Syeda Khadizatul Kobra 11805010
Aysha Akter Jhorna 11805015
Rahima Akter 11805021
Zakia Nur Munmun 11805033
Najmatul Jannat 11805043

Prepared by :
 Date of Submission : 03/02/2022

1.0 Introduction

Market segmentation, targeting and positioning plan help marketers to divide the market, identify
distinct group of buyers, and evaluate potential attractiveness of each segments. A company
needs to identify which market segments it can serve effectively and marketing managers need to
understand the STP model. A STP plan is a roadmap for product launching strategies that
provides direction to a company to obtain its objectives. It gives clarity as in who is the target
market, what product mix to offer to them, what pricing strategy might be followed and what
kind of promotional tool maybe used.

1.1 Introduction of the organization

Marico BD Ltd. is one of the most desired FMCG companies and a self-esteemed brand in
beauty and wellness market in Bangladesh. The company touches almost 1 out of every 2
Bangladeshis with an array of brands in various categories, including hair nourishment, edible oil
and male grooming, through a strong distribution network that reaches more than 900,000 outlets
throughout the country. Its flagship brand, Parachute completed its journey of 23 successful
years in Bangladesh, with an ever-growing base of loyal consumers. The brand has been among
top 10 most trusted brands continuously since 2009 and was awarded the title of "Best Brand" by
Bangladesh Brand Forum and Nielsen in 2011. Over the years, the company has strengthened its
brand portfolio, most notably through the expansion of Value Added Hair Oil segment.

1.2 Introduction of the product to be launched

To prepare this STP plan that is focused on analysis, we have selected “Parachute Advanced
Onion Hair Oil”, A brand-new product type in Bangladesh. There are several reasons behind
choosing this product. First of all, Onion oil is a proven remedy to boost hair growth and prevent
hair fall. This is a widely used solution to ensure healthy and thick hair. There are lots of
demands for these types of products especially to women, but such product is unavailable in
Bangladeshi market. On the other hands, Parachute is the most successful product of Marico
Bangladesh Ltd. Under the famous Parachute Brand, with lots of consumer expectations, this
new product has more opportunity to identify change in Bangladeshi market after its successful
launching in its country of origin, India, where consumer segments are quite similar to that of
Bangladesh. Also, studying the present and identifying the future of such a giant product will
provide the opportunity to mark its success factors.
Parachute Advanced Onion Hair Oil, Our new product, a Hair Growth Oil, is an optimum
mixture of two super potent ingredients- onion and coconut. It Boosts Hair Growth and reduces
Hair fall due to breakage. It is enriched with the goodness of coconut oil; it unlocks the real
power of onion and helps it penetrate 10X deeper to help hair grow longer, stronger and
healthier. Although using onion extracts result in bad smell, Parachute Advanced Onion Hair Oil
is infused with a comforting fragrance to delight your senses. However, it has No parables, no
sulphates, no artificial dyes, no silicones & no formaldehydes. Moreover, it is dermatological-
tested and suitable for all hair types.

 Segmentation, Targeting and Positioning

2.0 Segmentation:
Market Segmentation is identifying and categorizing of potential buyers into groups that have
common needs and will act in response similarly to a marketing action. There are many reasons
that explain market segmentation. One of the major reasons marketers segment market is because
they can generate custom marketing mix for each segment and accommodate them accordingly.
Parachute currently segment its market based on three factors:
1. Demographic Segmentation
2. Geographic Segmentation
3. Psychographic Segmentation
Demographic Segmentation: Demographic Segmentation divides the markets into groups based
on variables such as age, gender, family size, income, occupation, education, religion, race and
nationality. Demographic factors are the most popular bases for segmenting the consumer group.
The demographic variables that Parachute takes into account are:

a) Socio Economic Class (Based on education and occupation)

b) Age
c) Gender
Geographic Segmentation: Geographic segmentation refers to dividing a market into different
geographical units such as nations, states, regions, cities, or neighborhoods. This segment is
divided into two classes:
a) Urban area
b) Rural area
Psychographic Segmentation: This segmentation approach involves an understanding of a
consumer’s lifestyle, interests, and opinions. The psychographic variables that Parachute takes
into account are:
a) Personality
b) Lifestyle
For future, it is suggested that “Parachute Advanced Onion Hair Oil” segment the market
based on behavioral segment. This segmentation will present it new potential target market that
could be turned into profitable ones.
Behavioral Segmentation: In behavioral segmentation, buyers are divided into groups on the
basis of their knowledge of, attitude towards, use of, or response to a product. Segmentation
could be done in the following ways:
1. User status: Sometimes the markets are segmented on the basis of user status, that is, on the
basis of non-user, ex-user, potential user, first-time user and regular user of the product.
2. Usage rate: Marketers can also segment market on basis of usage rate (light, medium and
heavy users). Marketers usually prefer to attract a heavy user the most since it is the most
profitable segment. This segmentation helps to vary promotional efforts accordingly.
3. Loyalty status: Buyers can be divided on the basis of their loyalty status. For example:
hardcore loyal (customers who make repeat purchase), split loyal (consumers who are loyal
 to more than one brand), shifting loyal (consumers who switch to one brand to another), and
switchers (consumers who are not brand loyal).

3.0 Targeting:
Target marketing involves choosing segments that is most closely matched with the product and
offering and that could be served in the most efficient way by the company.
Marketing mix is designed based on the target market. In the demographic segment, Parachute
has chosen the female segment aged between 15 to 45 years. This can be easily explained since it
is a product that is mostly used by women of this age. This targeting has been very successful.
All the social classes except the bottom of pyramid have been chosen since hair care is needed
by everyone alike. In the geographic segment, both rural and urban area is being selected due to
the fact that, it is generalized low priced product that is used for regular use. Its demand is same
both in rural and urban areas and also it is price insensitive. In case of psychographic targeting,
women are mostly cultured, traditional; self conscious, gregarious etc are targeted since they are
similar to the brand personality.
Based on the consumer behavior analysis discussed further, these new target markets have been
suggested. Inclusion of these target market may offer new growth opportunity to “Parachute
Advanced Onion Hair Oil”. But before entering this target markets, we make SOWT analysis
of this product.

3.1 SOWT Analysis

A SWOT analysis is needed to evaluate the product position in a Specific market. The letters
S.W.O.T stand for strengths, weaknesses, opportunities, and threats.

The first two of these – strengths and weaknesses – into account all the things marketers can
reasonably control.

Opportunities and threats, on the other hand, refer to the things that marketers don’t have control
over but which can impact the market for better or worse.

Strengths:

 Brand loyalty
 Available Input materials
  Low cost of production
 Innovative marketing communication

Opportunity :

 Emerging Market
 New product categories
 Using not only coconut but also other natural ingredient which are beneficial
for hair.

Weakness :

 High Competitive Market

 Lack of geographical Coverage

Threats :

 Changing Consumer Preferences

 Entrance of new product
 Similar product competition
 Political Uncertainty

4.0 Positioning

Positioning is the act of manipulative the company’s offering and image to occupy a distinct
place in the mind of the target market”. In other words, brand positioning describes how a brand
is different from its competitors. ( Kotler )
After identifying the target market, organisations develop their marketing strategies by focusing
on the marketing mix. The marketing mix is a combination of product, price, place, and
promotion that helps increase sales to the target market (McCarthy, 1960).
4Ps of Marketing Mix :
After identifying the target market, organisations develop their marketing strategies by focusing
on the marketing mix. The marketing mix is a combination of product, price, place, and
promotion that helps increase sales to the target market (McCarthy, 1960). The 4Ps of marketing

are:

Product:
The success of a product or service in the marketplace depends on a number of factors including
quality, availability, application, construction, packaging, image, customer service and ease of
use.

Shortened information of the new product is given as follows:

Bottle Size: 200ml

Model: Parachute Advanced Onion Hair Oil | Hair Growth Oil
Country/Region of Manufacture: India
Consumer group: Men, Women
Formulation: Oil
Styling Effect: Hair Fall Reduction, Anti-Frizz, Anti-Gray Hair, Colour Protection, Curl
Enhancing, Deep Conditioning, Detangling, Hair Growth, Hair Repair, Heat Protection
Product Line: Parachute Coconut and Onion Oil
Type: Growth Oil, Hairfall Reduction
Hair Type: All Hair Types
Expiration Date: 3 years from date of manufacturing
Main Ingredients: Onion Extracts, Vitamin E, Coconut Oil
Brand: Parachute
Scent: Coconut

Less Hair Fall, makes you confident

Price:
Price is a market tool and an index of the economic and social reality. Pricing is the most
significant part in the strategy because it is the only factor that generates revenue. Parachute
Advanced Onion hair oil is available in different sizes thereby providing all the options to its
customers.
The price of Parachute Advanced Onion Hair Oil is 200 taka of 200ml and 100taka for 100ml.
The price of the product is reasonable for consumer.
We know, Product price = Total cost +Profit
Here the total cost of per product 200ml is,
Raw material cost = 100
Production cost = 50
Transportation cost = 10
Fixed cost = 20
Labour cost = 15
Total Cost 195

Here, we assume per product cost is 195 taka and the profit from per product is 5 taka .
So our product price is 200tk for 200ml

Place:
The product will be launched all over the rural and urban area of Bangladesh. Fast of all we will
launch our product divisional cities of the country like: Dhaka , Chittagong, Khulna, Rajshahi,
Sylhet, Comilla, Gazipur, Mymensingh, Barisal, Rangpur, and Narayanganj. Then we will move
on urban areas.

The product distribution strategy is :

Supplier Manufacture Distributor Retailer Customer

Promotion :

Promotion is the direct way in which an organization communicates the product or service to its
target audiences. (Brassington & Pettitt, 2000). Promotional strategies enable firms to attract and
retain customers thus increased growth in terms of return on investments due to expanded client
base (Kotler, 2007shop, that the consumer will easily get the product. The communication
medium to promote our product we will make TV advertisement, Social media. To promote the
product we will shear the quality and advantage of our product.

5. Reference:

1. Brassington, F., & Pettitt, S. (2000). Principles of Marketing (2nd ed.).

2. Kotler, P. (2007). Marketing management.
3. Kotler ,P. & Keller,K . (2019). Marketing Management (13th ed )