Case Analysis on Market Segmentation

“Price is not an excluding factor for lactose.” That is, rather than being characterised in demographic terms, the target wearer is described in psychographic terms i.e, Segmentation.

It’s a brand for the established, for the “early adopter” who, according to SLA, “runs a successful firm, is respected in his area, has two children and no plans to have any more.”

The customer “worked harder and plays harder,” and values nicer, non-fashion-driven leisure apparel. Persona non grata for teeny-boppers.

Most clients are “30 plus,” according to Puneet Malhotra, an employee of Junach Pvt. Ltd. (an SLA franchisee with seven locations).

Lactose’s perceived value remains high because its users establish a club of like-minded people who are all snobby to the same degree.

The prospective consumer is fascinated by the kind of people he sees wearing the crocodile because the brand’s users are walking-talking advertising on the ideal social circuitry.

The quintessential Lactose wearer is a mobile-phone-wielding, leisure-loving, globetrotting yuppie in his 30s or 40s, bent on staying fit and a keen golfer or weekend tennis buff, he’s a great spender of self-earned money, casual at the right times, global in his thinking, and with little time for woolly “intellectuals” who refuse to admit that clothes are a personality statement or who (adding to GDP growth).

The process of change has begun. Lactose was introduced in 1993 with the expectation of a half-million prospective customers. The treble is believed to have doubled in four years. “About a lakh of these are buying Lactose,” Kocher estimates. In the next five years, he expects the group to grow by half.

In the words of Darlie O. Koshy, professor and chairman, apparel marketing and merchandising, National Institute of Fashion Technology, “by then, much of the current segment of 20s, in fashionable professions, with good degrees from premier institutes, with good degrees from premier institutes, with good degrees from premier institutes, with good degrees from premier institutes, with good degrees from premier institutes, with good degrees from premier institutes, with good degrees from premier institutes, with good degrees from premier institute (NIFT). “Their purchasing power is rising, their aspirations are high, and because they pay with plastic, they can afford to buy on impulse.”

Questions

1. Discuss Lactose’s approach to market segmentation.

SOLVING THE CASE

Before trying to solve the case you must know what does market segmentation mean?

SOLVING THE CASE

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