Market Segmentation, Targeting and Positioning Strategy of Pringles - Report Example

Market Segmentation, Targeting and Positioning Strategy of Pringles Number and Number Submission Number of Words: 1,018 Introduction Manufactured by Procter & Gamble, Pringles is a brand of potato snacks that is widely available in the global markets. As a sign of business success, Procter & Gamble is able to sell the product close to US$1 billion each year (Fletcher, 2008). This report will focus on discussing the STP strategies used by Pringles. Upon analyzing Pringle’s marketing mix, significant factors that contribute to the success of the brand will be tackled in details. Market Strategies of Pringles In general, keeping the target consumers satisfied with the product is one of the main factors behind the success of Pringles. To ensure that the target buyers would remain loyal with the brand, Pringles is globally marketed upon using the marketing mix (4Ps) (Kotler and Armstrong 1997, p. 52). Product With regards to the product, Procter & Gamble ensures that the end product remains crisp for a long time. To ensure the quality and consistency of the product, the company uses at least 42% potatoes or multigrain combined with other food products like starch, flour, vegetable oil, salt, seasoning and emulsifier (BBC News 2008). Likewise, the company sells the product in original flavor or Xtreme flavors such as salt & vinegar, paprika, hot & spicy, sour cream & onion, cheese & onion among others (Pringles 2011a). Available in different sizes (23g, 40g, 50g, and 80g among others) (Pringles, 2011b), the product is sold in a unique and tall canister which serves as Pringles trademark. Basically, selling the product in different flavours and different sizes is necessary in terms of satisfying the taste preferences of its target consumers. For instance: It is more advisable for a child who wants to bring a small canister of Pringles (23g) to school rather than bringing 100g. On the other hand, 100g of Pringles is a better choice for a group of adults. Price In UK, the market price of Pringles is free from 17.5% Value Added Tax (VAT) (BBC News, 2008; Fletcher, 2008). This makes the company able to sell the product at a reasonable price. In line with this, my supermarket is selling 100g of Pringles at the price of £1.99 per canister and £3.00 for 2 canisters (My Supermarket 2011). Place As of 2011, Procter & Gamble is selling Pringles around 52 countries worldwide. Aside from avoiding the risk of saturating the local market in UK, it is necessary for Procter & Gamble to expand its business in other countries to prevent reaching the recession stage in business cycle. (See Appendix I – Target Market Place on page 7) Aside from selling the product in a typical grocery and convenient stores, Pringles is also being sold in online supermarkets (My Supermarket 2011). Similar to the channel distribution of other Procter & Gamble products, Pringles is being sold worldwide through a large number of wholesalers, retailers, agents, overseas distributors, direct marketers, and the use of internet or B2B channel. Regardless of the channel distribution, it is a common knowledge that the shorter the number of intermediaries would mean selling the product at a much cheaper price. Promotion Promotional strategies are essential part of convincing the target consumers of Pringles to patronage its wide-range of potato and multigrain snacks. With regards to product promotion, Pringles offers its consumers the chance to win one-year worth of shopping expenses or £6,000 exclusively at Morrisons (Pringles 2011d). Likewise, Pringles is trying to promote its Multigrain snack by offering £1 discount coupon which can be readily downloaded and printed from Pringles’ official website (Pringles 2011c). Market Segmentation The process of conducting market segmentation is necessary in terms of assisting the marketing managers in making sensitive business decisions. Except for the fact that it is unlikely for infant and children between the ages of 1 to 3 years old to be eating Pringles, the market segmentation of this product is generally not sensitive of demographic, psychographic, or even demographic segmentation (Rogers 2005, pp. 19 – 24; Kotler 2000, pp. 263 – 266). (See Appendix II – Market Segmentation of Pringles in UK on page 8) Although the act of conducting market segmentation is useful in terms of assisting the marketing mangers in making sensitive business decisions, Procter & Gamble is more concerned and more focused on developing more efficient way to make this food product readily available to its target consumers rather than focusing on market segmentation. Targeting Pringles as a potato snack pack can be consumed by anyone who is craving for different taste. Regardless of gender, sexual orientation, race, nationality or cultural background, the target consumers of Pringles are young individuals who prefer to eat potato crisp snacks all year round. Positioning Given that the target market of Pringles are individuals who are accustomed with eating potato crisp snacks each day of the year, the company should position the product as a brand that is fun to eat. As compared to the adults, it is so much easier for Procter & Gamble to convince children to purchase potato snacks. For this reason, the marketing manager of Pringles decided to position its marketing campaign to children and teenagers or simply the youth market (Weiss Ideas 2011). Effective brand positioning is a significant part of increasing Pringles’ total annual sales up to US$2 billion each year (Weiss Ideas 2011). Since Pringles is targeting the youth market, its official website offers downloadable Pringles videos and games such as Laserjumper, Groovy glider, and the King Kong Jump as part of its marketing and advertising strategies (Pringles 2011e & f). To convince its target consumers to continuously patronize the product, the marketing manager of Pringles decided to use the slogan “Once you pop, you can’t stop!” (Dyer, Dalzell and Olegario 2004, p. 189). Conclusion The process of conducting market segmentation enables the marketing manager to be able to set unique criteria about the target consumers’ purchasing behavior, social status, geographic and personal characteristics among others. Learning more about the personal attributes of its target consumers will make it easier for Procter & Gamble to make use of a wide-range of market distribution options in order to make the product readily available to the buyers. *** End *** Appendix I – Target Market Place Source: Pringles, 2011d Appendix II – Market Segmentation of Pringles in UK Demographic: Age Family Size Family Life Cycle Gender Income Occupation Education Religion Race Generation Nationality Social Class 4 years old and above 1 – 2; 3 – 4; 5+ Young & single; young & married; with or without children; old & single; old & married Male, female, gay, lesbian Under £9,999; $10,000 – 14,999; £15,000 – 19,999; £20,000 – 29,999; £30,000 – 49,999; £50,000 – 99,999; £100,000 and up Professional and technical; managers, officials and proprietors; clerical, sales; craft people; forepersons; operatives; farmers; retired; students; homemakers; unemployed. Grade school or less; some high school; high school graduate; some college; college graduates, under graduates. Catholic, Jewish; Muslim; Hindu; Protestant; Others. White; Black; Asian; Hispanic; etc. Baby boomers; Generation X and Y. Americans, British; French; German; Italian; Japanese; etc. Lower-lower; upper lower; working class; middle class; upper middle; lower upper; upper-upper. Psychographic: Lifestyle Personality Values Socially active / outgoing / stay-at-home. Potato lovers; price and non-price conscious individuals; compulsive buyers. Positive attitude and buying behaviour on potato snacks. Demographic: European Region UK Region City or Metro Size Density Belgium, Bosnia & Herzegovina, Czech Republic, France, Germany, Hungary, Ireland, Italy, Netherlands, Poland, Scotland, Slovakia, Spain, & Switzerland. East Midlands, East of England, London, North East, North West, South East, South West, West Midlands, & Yorkshire and the Humber. Under 4,999; 5,000 – 19,999; 20,000 – 49,999; 50,000 – 99,999; 100,000 – 249,999; 250,000 – 499,999; 500,000 up. Urban, suburban, rural. References BBC News, 2008, July 4. Pringles are not potato crisps. [online] Available at: [Accessed 29th January 2011]. Dyer, D., Dalzell, F., and Olegario, R., 2004. Rising tide: lessons from 165 years of brand building at Procter & Gamble. The Procter & Gamble Company. Fletcher, H., 2008, July 5. The Sunday Times. Crunch decision goes against taxmen as court rules a Pringle is not a crisp. [online] Available at: [Accessed 29th January 2011]. Kottler, P., 2000. Marketing Management - International Edition - The Millennium Edition. Upper Saddle River, New Jersey: Prentice Hall International Inc. My Supermarket, 2011. Pringles. [online] Available at: [Accessed 29th January 2011]. Pringles, 2011a. Flavors. [online] Available at: [Accessed 29th January 2011]. Pringles, 2011b. Pringles 40g. [online] Available at: [Accessed 29th January 2011]. Pringles, 2011c. Everything Pops with Pringles. [online] Available at: [Accessed 29th January 2011]. Pringles, 2011d. Find a Golden Chip. [online] Available at: [Accessed 29th January 2011]. Pringles, 2011e. Games. [online] Available at: [Accessed 29th January 2011]. Pringles, 2011f. Videos. [online] Available at: [Accessed 29th January 2011]. Rogers, E., 2005. Learners Resource: Certificate IV in Business (Marketing) Profile the Market. Melbourne: Australian Training Products Ltd. Weiss Ideas, 2011. Procter & Gamble: Pringles Redefining a Superior Brand Positioning. [online] Available at: [Accessed 29th January 2011]. Read More