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Marke | Practical Lesson 8

PhD. E. Khodjaniyazov

BUSINESS PLANNING

PRACTICAL LESSON 8

Market Segmentation & Product Positioning

Duration: 90 min Individual & Group PhD. E. Khodjaniyazov

LEARNING OBJECTIVES

• Define market segmentation, targeting, and positioning (STP) and explain the benefits of STP marketing

• Identify and apply at least four segmentation variables (demographic, geographic, behavioural, psychographic)

• Evaluate segment attractiveness using the four criteria: identifiable, measurable, meaningful, marketable

• Select and justify a target segment and write a positioning statement for a given product

• Create a positioning map to visually compare competing brands on two attributes

• Distinguish between global, foreign, and local consumer culture positioning strategies

0 Lesson Timeline (90 min)

Time

Activity

Format

0 - 10 min

Warm-Up Discussion

Pair work

10 - 25 min

Task 1 — Segmentation Variables Classification

Individual

25 - 45 min

Task 2 — Segment Attractiveness Evaluation

Individual

45 - 65 min

Task 3 — Full STP Analysis (Group)

Groups of 3-4

65 - 80 min

Task 4 — Positioning Map & Strategy

Individual

80 - 90 min

Discussion, Peer Review & Wrap-Up

Full class

1 Warm-Up (10 min)

Discuss the following questions with a partner:

STARTER QUESTIONS

1. Think of two different people you know (different ages, incomes, or interests). Would they buy the same products? What does this tell us about why companies segment their markets?

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Marke | Practical Lesson 8

PhD. E. Khodjaniyazov

2. When you hear the words 'Rolls-Royce' and 'Daewoo Matiz,' what immediately comes to mind? How have these brands positioned themselves differently in consumers' minds?

3. Is it better for a company to sell one product to everyone (shotgun approach) or to tailor products to specific groups (rifle approach)? What are the trade-offs?

2 Practical Tasks

TASK 1 — Segmentation Variables: Classification Exercise | Individual • 15 min

For each customer characteristic below, identify: (a) which segmentation variable it belongs to (demographic, geographic, geo-demographic, behavioural, or psychographic/lifestyle), and (b) give one example of a product or brand that uses this variable for segmentation.

#

Customer Characteristic

Segmentation Variable

Product/Brand Example

1

A 25-year-old female university graduate living in Tashkent

2

Customers who only buy products from a specific brand regardless of price (brand loyalty)

3

People who prefer outdoor adventure activities such as hiking and rock climbing

4

Households in the Fergana Valley region with access to internet

5

Customers who buy greeting cards specifically for Navruz and Eid holidays

6

A family of 5 with a monthly income above 10 million UZS

7

People who describe themselves as environmentally conscious and prefer organic products

8

Heavy users of a fitness app who exercise more than 5 times per week

Tip: Variables: Demographic (age, income, gender, education, family size), Geographic (country, city, region, climate), Geodemographic (ACORN), Behavioural (loyalty, usage rate, occasion, benefits), Psychographic/Lifestyle.

TASK 2 — Segment Attractiveness Evaluation | Individual • 20 min

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Marke | Practical Lesson 8

PhD. E. Khodjaniyazov

A Uzbek cosmetics company is considering entering the skincare market. They have identified five potential segments. Evaluate each segment against the four criteria from the lecture (Identifiable, Measurable, Meaningful, Marketable). Rate each criterion: High / Medium / Low. Then recommend which ONE segment the company should target.

Potential

Segment

Identifiable

Measurable

Meaningful

Marketable

Overall

Rating

Teenage girls aged 13-18 in urban areas (Tashkent, Samarkand)

Working women aged 25-40 with disposable income

Men aged 20-35 interested in grooming products

Elderly women aged 60+ in rural areas

Brides preparing for weddings (seasonal, event-based)

Your Recommendation — which segment should the company target and why? (3-4 sentences):

Scenario: A startup called FitLife Uzbekistan is launching a range of protein snacks and health bars. They have a limited budget and must choose their STP carefully. Complete all three phases of Kotler's segmentation process.

Phase 1 — Market Segmentation (identify the segments)

Segmentation

Basis

Segment A

Segment B

Segment C

Demographic

characteristics

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Marke | Practical Lesson 8

PhD. E. Khodjaniyazov

Geographic

location

Lifestyle / Psychographic

Behavioural (usage, benefits sought)

Phase 2 — Market Targeting (select your primary segment)

Which segment should FitLife Uzbekistan target first? Evaluate each segment against the four criteria (Identifiable, Measurable, Meaningful, Marketable) and justify your choice.

Phase 3 — Positioning

Positioning Approach

FitLife Uzbekistan Strategy

Competitive advantage to exploit

Key benefit consumers value most

Positioning statement (write it in full)

Which culture positioning? (Global / Foreign / Local)

TASK 4 — Positioning Map & Strategy | Individual • 15 min Part A — Draw a Positioning Map:

Using Price (Low to High) as the X-axis and Quality (Low to High) as the Y-axis, place at least 6 of the following Uzbek and international brands on the map. Then answer the questions below.

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Marke | Practical Lesson 8

PhD. E. Khodjaniyazov

POSITIONING MAP

Y-axis: Quality (Low ^ High) | X-axis: Price (Low ^ High)

Brands: Korzinka, Magnum, Makro (supermarkets) | iPhone, Samsung, Tecno (phones) | Your own additions

Part B — Answer these questions:

1. Which two brands are most directly competing? What is their main point of differentiation?

2. Is there a gap in the positioning map (an unoccupied space)? Describe a product that could fill it.

3. If FitLife Uzbekistan (from Task 3) were to appear on this map, where would you place it? Why?

3 Group Discussion (10 min)

DISCUSSION QUESTIONS — Full Class

• The lecture says positioning is 'done to the minds of consumers, not to the product itself.' Can you give an example of a brand that completely changed its positioning over time? Was it successful?

• Many Uzbek companies use the 'one product for all segments' approach. What are the risks of this strategy as markets become more competitive?

• What is the difference between 'global consumer culture positioning' and 'local consumer culture positioning'? Which approach would you recommend for a new Uzbek food brand that wants to expand internationally?

• Can a brand reposition itself without changing its actual product? What tools from the marketing mix would be most important for repositioning?

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Marke | Practical Lesson 8

PhD. E. Khodjaniyazov

4 Assessment Rubric

Task

Max

Points

Criteria

Task 1 — Variable Classification

20 pts

2.5 pts per row: correct variable type (1.5), product/brand example (1)

Task 2 — Segment Evaluation

25 pts

Correct ratings for 4 criteria per segment (15), written recommendation (10)

Task 3 — Full STP Analysis

30 pts

Segmentation table (8), targeting evaluation (10), positioning phase (12)

Task 4 — Positioning Map

25 pts

Map completeness (10), correct placement (6), 3 written questions (9)

TOTAL

100 pts

90-100: Excellent • 75-89: Good • 60-74: Satisfactory • Below 60: Needs revision

5 Homework / Independent Study

ASSIGNMENTS FOR NEXT SESSION

1. Choose a well-known Uzbek brand (e.g. Artel, UzAuto, Korzinka). Conduct a full STP analysis: describe their likely segmentation approach, the segment they are clearly targeting, and how they position their brand. One page maximum.

2. Find a positioning map for any industry online (e.g. car brands, soft drinks). Redraw it for the Uzbek market using local and international brands. Identify one clear market gap and propose a product concept to fill it.

3. Research ACORN geo-demographic segmentation. How could a similar approach be built for Uzbekistan using census data? Write a half-page proposal.

4. Prepare a 1-minute positioning statement pitch for the FitLife Uzbekistan brand (Task 3). Deliver it at the start of the next practical session.