Business

Saturday November 7, 2009

Aggressive campaigning for a better market share


COMPANIES that are aggressive in market segmentation can gain a better share in their respective markets.

Celcom (M) Bhd chief executive officer Datuk Seri Shazalli Ramly says the segmented marketing approach helps Celcom understand its market and customers better by uncovering new opportunities to leverage on and develop innovative ways for Celcom to engage its customers.

“This builds on Celcom’s intimate knowledge of its customer base and provides additional insights in developing new products and services that are relevant to its customers to meet their mobile communications needs,” he says.

Shazalli says Celcom’s existing marketing strategies revolve around the segmentation of the Malaysian mobile communications market.

“Key segments based on specific distinguishing characteristics have been identified and Celcom’s go-to-market executions focus on leveraging the opportunities that are inherent in each distinct segment it operates in,” he says.

For example, Indonesian migrant workers represent a new segment of opportunity for Celcom.

The Celcom Sukses pack was created to target this segment by addressing a specific set of wants and needs for these customers via offering attractive IDD rates and relevant Indo-centric content and value-added services.

Similarly, identifying the youth segment of the market allows the company to engage younger customers and strengthen its market position.

It develops products and services that not only meet the youth’s needs but also provides relevant value-added-services to the respective target segments.

Feedback from this segmentation approach has been favourable with customers responding positively to the products and services that have been specifically tailored to meet their unique requirements.

This can only be effectively done through an in-depth understanding of the segments in which Celcom operates for unlocking value propositions that are inherent in each unique segment.

Shazalli says Celcom’s marketing strategies are aligned with the segments that it operates in and its investment in developing customer segmentation strategies are in line with industry standards.

“Celcom will continue to invest, ensuring up-to-date customer base and market segment information is available to support its aspirations for the mobile communications industry leadership,” he says.

For fast-moving consumer goods company Nestle (M) Bhd, segmentation is used both in product development and positioning to help the company understand the needs of each segment in developing better products.

“Segmentation also helps us to look for a common thread between the segments to enable us to talk to the target consumers more effectively,” communications director Khoo Kar Khoon says.

He says this could allow the company to identify groups of similar potential and to prioritise and choose the groups it should target.

“It also helps to understand behaviour patterns and to respond with appropriate strategies that satisfy the needs and preferences of the chosen segment,” he says.

He points out that mass marketing is no longer an effective means to engage all consumers.

“With the targeted approach, consumers are more receptive towards our messages or products, therefore improving purchases and loyalty,” he elaborates.

Nestle has done plenty of market segmentation such as the Maggi cooking aids that were used to target cooking mothers of various races with different tastes and culture. This approach has allowed it to gain tremendous affinity and support from mothers of all races.

Khoo says the amount invested on market segmentation depends on the dynamism of the segment and category.

As for an insurance company, Etiqa chief sales officer Shahril Azuar Jimin says one of Etiqa’s main businesses and marketing strategies to maximise its top-line growth is founded on a true customer focus approach.

“We want to achieve market leadership by focusing on attractive and addressable customer segments,” he says.

Shahril says the company has identified from the diverse customers that existed in retail and enterprise markets, the segments that matter most based on their attractiveness in terms of market size, potential and profitability.

“The retail segments are being differentiated by the life-stages and income groups of the individuals, from young working class to seniors and pensioners,” he says.

For the enterprise market, the industrial sector and its projected insurance cost form the categories of the segments that it adopts in managing and targeting the customers. The company prioritises its efforts on segments accessibility based on its strategic position in terms of takaful strength, channels’ competencies, and existing market share and product portfolio offerings.

Shahril says the company approaches based on segments’ needs and concerns to capture maximum value out of target market segments.

“As we have grown our direct business over the last years, segmentation has become increasingly important for us,” he says.

Etiqa launched its first direct marketing campaign in November last year, in which the first few campaigns were mail based.

The results were encouraging, which is why segmentation is crucial in its direct marketing campaigns.

“As we move forward, it becomes more and more important for our Internet business, and I believe it will play a more central role once we start e-mail marketing activities,” Shahril adds.

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