Identification of the marketing segmentation is one of the most important aspects of marketing. It entails dividing the market into distinct feature such as the aspect of buyers, product and sellers and all the factors that will make the firm or product sold to be more marketable compared to that of the competitors. It is the aim of this essay to look at one particular segmentations known as behavior segmentation and the positioning strategy of Tiger Balm Company.
Tiger balm is a company that produces analgesic remedy that is made up of herbal ingredients and aromatic formulas. It has evolved over the years and now produces symptoms specific solutions which include plasters, medicated oils, sprays and gels (Balm 2014). Its existence in the market for over a century has been favored by the fact that it embraces behavior segmentation and positioning strategy.
Behavior segmentation divides the market based on knowledge, attitudes, uses and responses of customers. Tiger balm uses benefits sought by their customers as one of the ways of maintaining uniqueness and long existence in the market (Pangarkar, 2015). Their ranges of products have many benefits that include providing remedies for itch, sprains and intense headaches. They are also effective in chasing colds once applied on the chest and also act as a mosquito repellant. Another portion that they use is loyalty. The company retains loyal customers by using a traditional packaged product which is in a hexagonal jar that is well known by the customers (Pangarkar 2015). Since there is a perception that tiger balm is widely targeted at the elderly, the marketing department of Tiger Balm has sought ways to rebrand the balm by making the product attractive to the young generation. They have done this by extending the product line that is used by sportsmen and the young generation.
Unlike behavior segmentation, the position strategy aims to make the product appear distinct position in relation to the brands of competitors. One of the strategies adopted by Tiger balm is specific demography (university 2016). It targets people who develop pain more frequently. This target group is made up of sportsmen who develop pain and strain as a result of engaging in vigorous activities, white collar officers due long sitting hours while maintaining a certain posture and adult since they rely on painkillers to manage persistence pain. Branding also plays another important role in positioning. According to Mr Aw, branding and distribution are assets whose values extend beyond the current time (Pangarkar 2015). Tiger balm has developed new brands that are essential for attracting new customers. It has also enhanced distribution lines and ventured into new markets. Its brand positioning statement is “works where it hurts, works for million worldwide” (Balm 2014). It helps in differentiating tiger balms’ brands from other company’s brands and leaves a lasting impression in customers. Both packaging and positioning statement are essential in attracting new customers and making them repeat customers.
Segmentation plays a big role in marketing and helps in identifying market targets. For instance, behavior segmentation helps in identifying the benefits that consumers seek from a product. The information is needed for scheduling promotion. Behavioral segmentations also enhance customer loyalty. Loyal customers are cheaper to retain, they are more profitable, their engagement helps create reliable feedback and they help in increasing customer base since they are more likely to attract new customers through word of mouth on the other hand acquisition of new customers help in increasing the market size. Positioning attracts different types of customers, helps in winning their attention and interest and also in attracting competition. The adaptation of behavior segmentation and positioning strategy helps tiger balm, retain its customers and also attract new ones. They also help in ensuring long existence in the market giving it healthy competition against other companies and also help in maintaining its profitability.
Reference List
Balm, T., 2014. tiger balm. [Online] Available at: http://www.tigerbalm.com/sg
[Accessed 24 October 2016].Pangarkar, N., 2015. Linkedin. [Online] Available at: https://www.linkedin.com/pulse/building-durable- assets-lessons-from-tiger-balm-nitin-pangarkar [Accessed 24 October 2016].
University, s. m., 2016. singapore management university. [Online] Available at: https://www.smu.edu.sg/perspectives/2016/05/25/tiger-balm-roaring-back- success
[Accessed 24 October 2016].
