Project Report
On
As a part of the MBA curriculum and in order to gain practical knowledge in the field of
management, we are required to make a report on “STP ANALYSIS OF VOLKSWAGEN
JETTA, DCB BANK, DOMINO’S PIZZA”
The basic objective behind doing this project is to gain the knowledge about the segmentation
targeting or positioning of three companies and to various implications. We have selected the
topic, STP analysis.
In this project we have included the various concepts, effects and implications regarding to
stpanalysis of Jetta dcb or domino’s pizza.
Doing this project helped us to enhance our knowledge regarding the work. Throughout the
study we did undergo many new experiences related to people’s opinions as well as their
tendencies. Through This report we come to know about importance of work and role of
devotion towards the work.
BAROT ATISH P.
Roll No: - 02
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ACKNOWLEDGEMENT
It was indeed an opportunity for study prepares a Report on the same during MBA SEM-II
Programmed. During my study to the STP Analysis for preparing this Project Report, i learnt
many interesting things about the study,
Preparation of such kind of report, which is based on secondary information, requires data
gathering from many sources like Company Personnel, Company Websites, Other Websites,
Company Reports, and Other Literature.
I would like to express my gratitude to Project Coordinator Mrs. Rachita M. Jayswal and
arranging the for practical studies, for their guidance and help in preparation of this Report. At
last but not least, we are thankful to all my friends.
BAROT ATISH P.
Roll No: - 02
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EXECUTIVE SUMMARY
In FMCG companies differ market oriented work they all are work with different criteria and
they all are differ target toward the product.The objective of the study is toanalysis the market of
segmentation targeting or what are the positioning in costumermind, identify areas of excellence
and areas needing improvement; and provide suggestion for such improvement. The aim of this
report to successfully, analyses their service of product and performance of car, bank or pizza
services.
I have also collected the relevant secondary data from various source like prospect ,websites and
articles or e-brochure, book internet the area of excellence and improvement have been
identified based on factual information .in which finding have been providing for the overall
improvement of the organization in the future.
The study identifies which are to select the market segment or target of organization and what is
the positioning in the consumer mind.
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CONTENT
1. VOLKSWAGEN JETTA
Introduction to The Jetta:
STP Anlysis
Market Segmentation
1. Geographic segmentation:
2. Demographic segmentation:
3. Psychographic Segmentation
4 .Behavioral Segmentation
Targeting
Positioning Strategy
2. DEVLOPMENT CREDIT BANK
STP Anlysis
Demographic segmentation
Psychographic Segmentation
Targeting Strategy
Positioning Strategy
3. DOMINIO’S PIZZA
STP Anlysis
Targeting Strategy
Positioning Strategy
Conclusion
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Volkswagen Jetta
(The largest automobile industry in world)
A. Introduction to company:
B. Background Information
Volkswagen is currently in a unique position to move into a leader position in the under
$30,000 category of affordable fuel efficient cars with their TDI series.
Consumers are becoming more knowledgeable about diesel technology and are actively seeking
alternatives that provide fuel efficiency and driving performance. An opportunity arises during
this Anniversary year for Volkswagen to be in the right place at the right time offering the only
affordable diesel option in their category.
With the creation of the TDI Clean Diesel models, Volkswagen is taking that extra step to
compete with hybrid technology and become more environmentally friendly, which has evolved
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into their unique selling proposition. With the recent worldwide recession, motor vehicle sales
have been declining. However, Volkswagen has continued to increase sales along with their
market share.
Within the past two years, they have won multiple awards for all different brand categories.
With increasing numbers of ecoconscious consumers looking for the right option in vehicles for
them, Volkswagen is proceeding in the right direction.
C .Today
In the year 2012, Volkswagen will be celebrating their 75th Anniversary and will hold a
campaign for one year across Canada from September 2011 to 2012. The campaign will help
gain more knowledge, awareness and preference for the VW brand and TDI models increase in
sales.
The goal is to increase sales to 10,000 units for the year. The target market consists of a very
broad segment of Canada between the ages of 20 and 34. Our target audience will be focusing
on people living in metropolitan areas who earn an average to high income and who are
environmentally conscious.
They will launch the Anniversary campaign through Advertising, Sales Promotion, Internet
marketing, Public Relations and Direct Marketing. A Volkswagen Golf TDI Clean Diesel
Anniversary Limited Edition will be launched throughout Canada.
Volkswagen’s current slogan “Das Auto” will be joined with the tagline “Powerfully
Blue” and will focus on the Golf TDI as an eco-friendly choice that doesn’t sacrifice driving
performance.
An Internet video contest will be launched where people can submit a video showing what eco-
friendly things they would do with their Volkswagen.
The prize is a 75th anniversary edition of the Golf TDI and a chance to have the video featured
on national TV campaign from April 1st to September 1stThe Runner up will receive $5000.
There will also be a national celebration at dealerships where any test drive will directly donate
to Tree Canada. This will appeal to the eco-conscious audience and will directly bring people
into the dealerships to test drive the Golf TDI.
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The main promotion will focus on the “Powerfully Blue” tagline which emphasizes
performance without being as harmful to the environment as standard gas technology.
In 2008, the Jetta was launched in India. This notchback model, technically based on the
globally successful Golf, can look back at a 30-year success story in Europe and has long
established itself as the most popular car in the USA from a European manufacturer.
Over five generations, more than eight million units of this model range have rolled off the
assembly line to date.
The Jetta is available in three versions with two powerful and efficient engines: Jetta 1.6
Trend line, Jetta 2.0L TDI Trendline and Jetta 2.0L TDI Comfort line
Already in the Trendline version, the Jetta offers extensive comfort and comes packed with
functions and safety equipment. As the name suggests, the Jetta Comfort line offers a wide
range of comfort-oriented standard equipment that ensures you reach your
Destination absolutely relaxed.
The combination of innovative features, harmony of design and impressive dynamics make
the Jetta what it is – a compact saloon radiating sporty elegance that you will want to
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experience for yourself? The traditional Volkswagen qualities of reliability and a long
service life ensure that the Jetta offers you supreme driving enjoyment.
E. Design:
Those who place high demands on life require a car that not only looks good but also delivers
that extra bit. With its streamlined silhouette, distinctive design and sporty yet elegant appeal,
the Jetta offers all you would expect and more.
The Jetta’s world-class workmanship of all components and harmony of design are evident
wherever you look. Narrow gap dimensions on the body underline the high- grade appearance
and reduce wind noise to a minimum. A rear window aerial ensures Chrome-plated radiator
grille surrounds less radio reception. The front headlights and turn signals are combined under
an and louvers.
Attractive clear glass covers and emphasizes the sporty lines of the Jetta. Elegant chrome Trim
on the side windows (Comfort line) and color-keyed bumpers, door handles and Door mirror
housings with integral turn signals put the fi nishing touches to the stylish appearance of the
Jetta.
The interior fulfill lst the promise of the Jetta’s impressive exterior. The easy-care “Vienna”
leather upholstery creates an exclusive ambience and provides enhanced Sitting comfort
(Comfort line). All displays and functions have a driver-oriented, user- Friendly layout and
perfected ergonomics. The chrome-plated gear knob surround and Handbrake button introduce
a level of refinement indicative of Volkswagen’s first-rate Build quality throughout.
F. Marketing Objectives:
To have sustained growth of the Golf family line of cars by increasing vehicles sales to
10,000 units in the marketplace with TDI Clean Diesel engines representing 50 percent of
all new Volkswagen vehicle sales by adults aged 20-34 over the next twelve months.
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G. At that time
In Indian market
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Volkswagen Jetta
STP ANLYSIS
MARKET SEGMENTATION
A). Markets consist of buyers. These buyers may differ in their wants, resources, locations,
buying attitudes, and buying practices. Through market segmentation, companies divide large,
heterogeneous markets into smaller segments that can be reached more effectively with products
and services that match their unique needs.
Segmenting Consumer Markets
B) There is no single way to segment a market. Marketers must try different segmentation
variables, alone and in combination, to find the best way to view the market structure.
1. Geographic segmentation:
Geographic segmentation divides the market into different geographical units, such as
nations, , states, counties,. A company may operate in one or a few geographic areas, or it
may operate in all areas but pay attention to geographical differences in wants and needs.
The campaign will primarily target people living in provinces with metropolitan areas
such as British Columbia, Quebec and Ontario. These provinces have the highest
populations with Volkswagen dealerships representing 105 out of 131 dealerships. These
areas are chosen because they have the largest reach due to the concentration of people
in one area.
2. Demographic segmentation:
Demographic segmentation vides the market into groups based on variables such as age,
gender, family size, family life cycle, income, occupation, education, religion, race,
generation, and nationality. Consumer wants, needs, and usage rates often vary with
demographic variables. Demographic variables are also easier to measure than other
variables.
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Males and females aged 20-34 earning $30,000 to $80,000 annually will be targeted for this
campaign. This group is the largest among age groups as it represents 6,931,000 people in
Canada and represents 20 percent of the population.
3. Psychographic Segmentation
Different people have different value systems, varying personality traits, beliefs,
attitudes, separate self-image or self-concept and an altogether different way to look at
life (lifestyle). As a result their needs and preferences also differ accordingly Volkswagen
has kept this aspect in mind while designing it’s wide range of Jetta car to appeal to
different audiences and in a way suit their self – image From rich end professional like
the accord or high luxury car series .
The typical psychographic profile for the campaign is the exhilarated driver. This means
that besides the practical function of the car the driver wants an experience while driving
feeling the turns and acceleration.
Coupled with this driving experience is the knowledge that their actions make an impact
on the environment and they want to choose carefully. This segment, particularly the Gen
Y generation, likes to get to the point and make sure that what they see is what they get
so research about options for fuel economy and performance must be readily available
and accurate.
4 .Behavioral Segmentation
Volkswagen was quick to realize this and hence tried to segment the market on the basis
of the behavioral patterns of its customers. Here it looked at whether there was increased
buying during special occasions, whether a substantial chunk of population looked for a
specific class of benefits to be derived from its products, what was their user), how
heavily or lightly was a the Jetta product used loyalty towards a particular category or
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product, readiness to adapt to new technology and the general attitude towards the
product.
These people have either owned a car before and were not satisfied by its power or fuel economy
or value these features as first time buyers.
Reducing their daily carbon footprint will draw these consumers to an alternative fuel choice
when purchasing a new Jetta car.
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TARGETING
Target Marketing involves breaking a market into segments and then concentrating your
marketing efforts on one or a few key segments. Target marketing can be the key to a small
business’s success. The beauty of target marketing is that it makes the promotion, pricing and
distribution of your products and/or services easier and more cost-effective. Target marketing
provides a focus to all of your marketing activities.
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POSITIONING STRATEGY
As already mentioned before, Volkswagen has believed in introducing innovative techniques
and practices in all its marketing strategies --- be it segmenting, targeting or positioning itself in
the market.
The Golf family line up from Volkswagen Jetta is being positioned by end benefit with fuel
Consumption in mind.
Diesel engines are very fuel efficient and since Volkswagen is the only automotive
manufacturer in to offer a clean diesel engine in their vehicle lineup, the Golf TDI vehicle can
be seen as a substitute to competitor hybrid models.
Below, Figure compares vehicle price to fuel consumption of several vehicles that are the
same size, shape, and in the same vehicle category as the Golf TDI. The chart uses the base
price of each vehicle and also the combined highway and city fuel consumption. Many
vehicles in India are tested by the Automotive Journalist Association of India or (AJAI) and
given a rating score out of 10 for each category. When AJAI acceleration scores are
compared between the hybrids and the Golf as seen below, in Table 1, it is clear that the Golf
TDI is a well balanced blend of fuel consumption, and price with great acceleration.
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Only the Ford Fusion Hybrid has a higher AJAI acceleration score than the Golf, as seen
above, but the Fusion Hybrid also has a base price that is approximately $7,000 more
than the base price of the Golf TDI. (AJAI and.CA) Together with the fuel economy vs.
price comparison the Volkswagen becomes a choice for consumers who want an
efficient, well priced, and powerful car.
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DEVLOPMENT CREDIT BANK
A new generation private sector bank, Development Credit
Bank (DCB) is the preferred banking services provider across 80 state-of-the-art branches
across 10 states and two union territories. The Bank has recently launched several value
added initiatives and intends to become one of the country’s preferred and profitable
private sector banks, providing a comprehensive suite of “best in class” products for
customers in Retail, SME and Corporate Banking.
DCB has deep roots in India since its inception in the 1930’s.
Its promoter the Aga Khan Fund for Economic Development (AKFED) holds over
23% stake. AKFED is an international development agency dedicated to promoting
entrepreneurship and building economically sound enterprises in the developing world. It
had co-promoted HDFC in India in the late seventies. AKFED operates as a network of
affiliates comprising 90 separate project companies. Employing over 30,000 people, it
reported annual revenues in excess of US$1.5 billion. The Fund is active in 16 countries
in the developing world.
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as innovative products such as the ‘DCB Trio’ and ‘Easy Business,’ keep DCB ahead of
the pack. Demat Account and a range of investment products like mutual funds,
insurance and bonds make the product offering complete.
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Accounts Investment Services
• Savings Accounts • Demat Account
• Current Accounts • Mutual Funds
• Deposits • Life Insurance
• General Insurance
• DCB Smart Trade
NRI Services
• Operative accounts Loans
• Deposits
• Forex Services Privilege banking
• Remittances
STP ANLYSIS
Segmentation
Market segmentation is a concept in economics and marketing. A market segment is a sub-set
of a market made up of people or organizations with one or more characteristics that cause them
to demand similar product and/or services based on qualities of those products such as price or
function. A true market segment meets all of the following criteria: it is distinct from other
segments (different segments have different needs), it is homogeneous within the segment
(exhibits common needs); it responds similarly to a market stimulus, and it can be reached by a
market intervention. The term is also used when consumers with identical product and/or service
needs are divided up into groups so they can be charged different amounts. The people in a given
segment are supposed to be similar in terms of criteria by which they are segmented and different
from other segments in terms of these criteria.
1). Demographic segmentation:
• Location:
o Metros cites
o divisional area
• Occupation :
o Business person
o salaried class (private or government )
• Age :
o Senior citizens
o Minor
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2) Psychographic Segmentation
Lifestyle
o People who believes in modern banking with higher set of services
o i.e. Internet banking
o i.e. Mobile refill, bill paying
o i.e. Travel currency card
3) Geographic segmentation:
DCB bank provide to a mega city or some different target area ex. GIDC in Gujarat
TARGETING STRATEGY
Target market:
Corporate banking market: These markets target the industries & fulfill their
financial need.
Capital market: This segment is target on the long term need of individual as well as
industries.
Retail banking market: This segment is for retail investor & provides them short term
financial credit for their personal, house hold needs.
POSITIONING STRATEGY
Development credit bank has positioned itself as bank which gives higher standers of services
through product innovation for the diverse need of individual & corporate clients.
So they want to highlights following points in their positioning segment:
Customer centric
Services oriented
Product innovation
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Tom Monaghan, the founder of Domino's Pizza, in his first restaurant somewhere in the 1960s.
DOMINIO’S PIZZA
• Dominos Pizza is the second largest franchised pizza chain in the U.S.A., and the history
of Dominos Pizza is similar to its rival Pizza hut; two brothers started it with borrowed
equity in the sixties. Tom and James Monaghan bought a small Michigan Pizzeria called
Dominick's, which was jointly run by them until James traded his share for a second hand
car. Tom revitalized the image by changing the name to Dominos Pizza.
• By the late seventies there were over 200 franchise pizza businesses in the States and
Dominos Pizza was ready to go International. In 1983 Dominos Pizza opened its doors in
Winnipeg, and in the same year opened its one thousandth store. Later that same year
Domino's corporate history was to begin in Australia with its first franchise in Brisbane,
on the East coast.
• The locations for Domino’s Pizza grew quickly from here as they sprung up in all sorts of
diverse places including Bogotá. Despite Domino's Pizza springing up diverse locations,
they were still a very traditional company. Domino's Pizza menu had been kept very
simple and streamlined; they only sold one type of pizza crust which they named the
regular pizza. Domino's Pizza dough was shaped by tossing the dough and pulling it into
shape. The pizza menu included just two sizes of dough; it was not until much later that
competition forced them to add a medium and extra-large sized pizza. There were no such
things as side orders you could have Pizza, pizza or Pizza and you could only drink a
Coke with it.
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• In 1989 the history of Domino's Pizza was to change when the Deep Pan pizza was
introduced, for the first time in twenty five years the company was being forced to react to
market demand. This move consolidated the financial base and ensured the growth of
Domino's Pizza, as the same year they opened their five thousandth store.
• The wind of change had started and by 1992 they were to introduce the first non-pizza
item to their menu, this was obviously a reluctant move as it was bread sticks. Domino
Pizza dough was already on hand and the making of bread sticks is not so different.
• For many years the company had advertised that if the delivery of their pizzas took
longer than thirty minutes then the pizza would be delivered free. This was parodied by
the Teenage Mutant Ninja Turtles movie which specified the "pizza dude has 30 seconds"
to complete the delivery. The turtles pizza was late and they received a refund of $3 for
"being two minutes late, dude!" However the benefits to Domino Pizza was enormous as
millions of kids were to hear the name of Domino Pizza endorsed on celluloid. In 1993
Domino Pizza discontinued this policy and stated that if a customer was unhappy they
could have a new pizza or a refund.
By 1994 Dominos Pizza marketing policy widened as chicken wings were introduced to
the menu. At the same time the company hit the African continent as they opened a store
in Egypt. By 1996 Dominos Pizza website was launched and the company declared
global sales of nearly $3 billion.
The major competitors of dominos are:
• Pizza hut
• Pizza corner
• MacDonald’s
• Barista
• Café coffee day
• Sab way
• Papa john’s
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• Dominos made their entry India in 1995 when the country was marching in to an era of
liberalization, privatization, and globalization. This year marked the start of some of social
economic and culture change in our country.
• Dominos focus on their values to customer and offer pizza and Italian delicate at
affording price to middle class Indian customer .dominos has 275 outlets in 55 cities
across 20 states this is the largest in term of fast food restaurant. Thus they adopted to
Indian economic in term of purchasing power and disposable income of middle class
Indian.
• In 2010 :
After years of languishing near the bottom of consumer taste perception studies,
Domino’s proudly boasts its research-backed wins over Papa john’s and pizza Hut in a
national taste test of hand-tossed pepperoni pizza, sausage pizza and extra-cheese pizza
chairman and CEO David Abandon steps down as CEO effective March 7 and the Board
of Director's Successor . elect j.Patrick Doyle as Brandon's successor . Brandon will be
retained by the Copan as a Special advisor for the remainder of 2010 and continue as a
non-executive Chairman of the Board.Concurrently,the University of Michigan
announces Brandon will serve as its next Director of intercollegiate Athletics. Dominos
opened its 9,00th store on March 11.
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STP ANLYSIS
Segmentation
Market Segmentation:
Geographic:
Geographic segmentation of Domino’s Pizza is worldwide. Now Domino’s Pizza is
serving more than 80 countries including Pakistan, UK,USA, Algeria, India, Russia,
Cyprus, China, and Bangladesh etc.
Region
Dominos outlets in different countries are a way of segmenting their market
according to to finding out potential market.
City
They also segment the cites class i, class ii, metros, small towns in Indian market
.
Demographic:
Domino’s Pizza general market segment is younger generation. But they go wide in this
thing. They segment low and high incomes and business class families which can spend
money on the best pizzas in the market.
Age:
Under13 years, 13to21 years ,21 to35 years,35to 50 years,50+ years.
Family income:
Lower middle class, middle class, upper middle class, high class.
Psychographic:
Domino’s Pizza psychographic segmentation includes people with having good attitude
about food sense especially pizza group. It serves all types of personalities as they don’t
have any product for specific personality.
Socio-economics- urban (a1, a2, b1, b2, c, d)
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Behavioural:
Domino’s Pizza behavioural segment is the class where people love to Spend money on
eating.
Loyalty status – low, medium, high
User status - first time, regular, on user.
TARGETING STRATEGY
In demographic segmentation their main target is the teenager and collages student (13 to
21 year), young adults .they aim basically at the middle and upper class income people.
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POSITIONING STRATEGY
Point of difference:
The major point of difference between pizza competitors to concentrate on in restaurant dining.
The ambience and décor of all dominoes’ pizza outlets are good and specious. When customer
thinks of party and desired to have pizza, domino’s pizza only comes in mind.
Domino’s aims at fast home delivery of pizza. Whenever customer wants to have pizza at home
they think calling domino’s and ordering for it because they are expert in home delivery of
pizza.Domino’s earn 60% revenue from home delivery and 40 % from restaurant
Point of parity:
Category point of parity – domino’s pizza has to deliver or serve pizza in less time as compare
to other main course food items served in restaurant.
Comparative point of parity:
In these point at the time dominos have their own customer, who do not bother about spending
,but look for quality and service. They concerted on turnover of cover and cater to customer who
don’t have time to spend on food and just stop over for refreshment moreover ,dominos mainly
looks in to home delivery of pizza and expert in it.
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Conclusion
The Volkswagen company, originating in Germany, is known as the "people's car". Known for
their affordability and reliability for the average family, Volkswagen has exceeded consumer
demands by expanding their model line to highlight valued characteristics creating global brand
awareness with a strong reputation for reliability and strong brand loyalty.
Volkswagen Jetta has high positioning in India and is in a unique position of being an
affordable alternative to consumers looking to balance fuel economy with performance. Most
consumers consider fuel economy when purchasing a car and with the rise in acceptance of the
clean diesel technology Volkswagen is first to market in this category.Volkswagen s challenge
is to raise awareness of their unique position and promote their vehicles in the competitive
market of affordable cars. The 75thAnniversary provides an opportunity promote their
reputation and technology to an audience who is ready to appreciate their vehicles.
Development credit bank is a most power full back ground of Aga Khan Fund for Economic
Development and they are achieving their goal oriented they provide different types of services
with high expectation of customer .they mostly senior citizen targeted or metros cities and cover
the market .
Third and last one is domino’s pizza is one of the largest value chain system and they are
oriented with service with quality and cover to the youngster or collagen all over dominos and
other competitor market is somewhat different rather than other. And they adopting the 30
minute companying that not deliver with in the time period it will be back of order.
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