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Segmentation:: Reference: Marketing Survey by National Handloom Development Corporation

The document discusses market segmentation strategies for handloom products in India. It analyzes segmentation based on geography, demographics, psychographics, and behavior. Geographically, acceptance of handloom varies across regions. Demographically, women are twice as likely to buy handloom as men. Psychographic segments include traditional buyers, environmentally conscious new buyers, and swing customers. Behaviorally, the market can be divided into loyalists, switchers, split loyals, and shifting loyals. The target market identified is educated Indians aged 18-35 due to their environmental sensitivity. Market sizing analysis shows the targetable population is 72 lakh. Positioning focuses on product quality and supporting weavers.

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284 views7 pages

Segmentation:: Reference: Marketing Survey by National Handloom Development Corporation

The document discusses market segmentation strategies for handloom products in India. It analyzes segmentation based on geography, demographics, psychographics, and behavior. Geographically, acceptance of handloom varies across regions. Demographically, women are twice as likely to buy handloom as men. Psychographic segments include traditional buyers, environmentally conscious new buyers, and swing customers. Behaviorally, the market can be divided into loyalists, switchers, split loyals, and shifting loyals. The target market identified is educated Indians aged 18-35 due to their environmental sensitivity. Market sizing analysis shows the targetable population is 72 lakh. Positioning focuses on product quality and supporting weavers.

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SEGMENTATION:

The use of handloom products and potential for sales varies with the nature of the market and a
structured approach to analyzing the acceptance of handloom products in India is by market
segmentation. This can be done in various ways, out of which a few are outlined below:

Geographical Segmentation:

The use and acceptance of handloom varies across geographical regions in India. For example it
is more concentrated in Gujarat due to the Gandhian influence and lowest in metropolitan cities
due to a more cosmopolitan atmosphere and wide availability of domestic and international
competition.

The table below shows the willingness of interviewees in different cities to buy handloom cloth:

Table 1 : Willingness to use handloom cloth

Reference : Marketing survey by National Handloom Development Corporation

Demographic Segmentation:

The study also aims to identify if demographics affect sales of handloom. Does the potential
market for handloom have more men or women? More youngsters or older people? More people
from specific economic backgrounds?
For men and women, the difference in awareness and willingness to buy handloom cloth is
clearly visible. Women are inherently more likely to buy handloom since handloom sarees have
always been fashionable. Table 1 and 2 in the annexure shows the likelihood of men and women
to buy different handloom cloth according to occasion and use. Thus we find that women are
almost twice as likely to buy handloom than men.

With regards to income, people from the middle income which is the largest economic segment
in India, are largely willing to pay more for better quality cloth as shown by:

FIGURE 3: INCOME SEGMENTATION

Reference : Marketing survey by National Handloom Development Corporation

Thus, income segmentation may be important in later stages but is not a restricting factor, at least
in current time. People with all levels of incomes may be open to buying handloom.

According to age, we divide the customers eegments as:

1. <18 yrs : school going children


2. 18-35 yrs : graduate students and young professions
3. 35-65 yrs : possibly married, experienced professions
4. >65 yrs : possibly retired individuals

Psychographic Segmentation:
The buyers of handloom for the purposes of this study is divided into the following segments:

The domestic market can broadly be divide into three sections:

1. “traditional” (people above 50 years of age who have a sentimental attachment to


handloom cloth)
2. “new age environment enthusiasts” (who see intrinsic value in buying more eco-friendly
commodities even at higher prices because it is better for the planet)
3. and “swing customers” (who do not have strong opinions either way and may buy
handloom cloth if the value is communicated properly)

Behavioral Segmentation:

The basic segmentation would be:

1. Loyalists - who are loyal to the cause (handloom, Gandhi, local growth, sustainablity)
2. Switchers (the largest category who currently don’t use handloom but are ready to
switch)
3. Split loyals – who buy both handloom and otherwise
4. Shifting loyals – who buy handloom only for certain occasions like for ethnic clothing for
marriages etc.

The general trend is that for tailor made clothes, people are very ready to switch to handloom
subject to availability of colors, quality, textures etc.

The behavioral segmentation also ties in with the demographic segmentation because clothing
being a occasion specific buy, and occasions being a function of age and profession.

TARGETING:

For the purpose of the study, we target the population with the following characteristics:

1. Age: 18-35 yrs


2. Profession: students
3. Economic background: diverse
4. Cultural background: diverse
5. Unique characteristics:
6. Environmental sensitivity
7. Educated (at least under-graduate)

The reason for choosing this segment is that handloom in the current scenario works on the
principle of product differentiation, is priced a little higher than synthetic (due to lack of
economies of scale) and the aim is, in addition to selling, creating awareness about the condition
of weavers and lend support by organizing this informal sector which is suffering due to
continues neglect and languishing sales.

Market sizing analysis:

Total Indian population: 130 crore


18-24 years: 14.9% of population (male 101,879,786/female 97,583,437)
25-35 years: 21.08% of population (male 91,744,709/female 54,834,569)
Population between 18-35 years: 346042501
Average Literacy rate: 70%
Literate population between 18-35 years: 0.7 x 346042501= 242,22,975
Population between 18-35 years with education equal to or greater than under graduation: 30%
Therefore net targetable population = 0.30 x 24222975= 72,68,925
Thus target market size is 72 lakh.

POSITIONING:

The differentiating factors for Fabric Monde are as follows:

1. Blend of different fabrics for better properties and intricate handmade designs
2. Diversify production to home furnishing material
3. Better assurance of quality and packaging for international markets
4. Better promotion for greater awareness about the value to customers: soft cloth, non-
allergenic, health friendly, eco-friendly, good for people with sensitive skin
5. The value to weavers: supports the largest professional segment in India, second only to
agriculture. Also supports a culture and tradition that is gradually getting lost

The positioning approach can be structure into the following Bull’s Eye.
Annexure

TABLE 1 : BUYING AND USING HABITS OF MEN PERTAINING TO HANDLOOM


CLOTH

Reference : Marketing survey by National Handloom Development Corporation


TABLE 2 : BUYING AND USING HABITS OF WOMEN PERTAINING TO HANDLOOM
CLOTH

Reference : Marketing survey by National Handloom Development Corporation

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