STP Marketing - Uniliver and the Ice Cream Industry

Unilever is the world's biggest ice cream manufacturer.

Except from Starbucks Ice Cream and Ben & Jerry's, all of its ice cream business is done under the "Heartbrand" brand umbrella which is present in more then 40 countries worldwide.

Although the logo is common worldwide, each country retained the local brand so as to keep the familiarity.

• Algida - Greece, Italy, Poland, Russia
• Eskimo - Austria
• Frigo - Spain
• Frisko - Denmark
• GB Glace - Sweden, Finland
• Good Humor - U.S.A.
• HB - Ireland
• Kibon - Brazil
• Kwality Wall's - India
• Langnese - Germany
• Lusso - Switzerland
• Miko - France
• Olà - Netherlands, South Africa
• Streets - Australia, New Zealand
• Tìo Rico - Venezuela
• Wall's - UK, Indonesia, Pakistan

This is a good example of Geographical Segmentation which is part of the STP Marketing.

WHAT IS STP?

Segmentation, targeting and positioning are the main parts of a marketing plan.

SEGMENTATION

Market segmentation is the process of dividing a market into groups, known as segments, of customers with similar needs or characteristics who are likely to exhibit similar purchase behaviour .
In segmenting the market the business is acknowledging that different 'types' of buyers may require different products or marketing approaches / marketing mixes (Kotler).

Market segmentation enables the business to target different groups of buyers by adapting its product and marketing mix to best suit each targeted segment.

A segment-orientated marketing approach generally offers a range of advantages for both, businesses and customers:

Better serving customers' needs and improved customer realationships,

high profits,

growth opportunities,

innovation.

Most commonly used criteria for segmentation (Kotler):

• Geographic  (region, urban/non-urban environment)
• Demographic  (age, gender, income, occupation, nationality, life cycle phase...)
• Psychographic (lifestyle, values, personality)
• Behavioural (degree of use, degree of loyalty, user behaviour)

Validation (Doyle):

In order to be suitable to be targeted a segment has to be:

• Distiguishable - is it truly different from other segments?
• Measurable: is it possible to determine the variables used for segmentation?
• Relevant - is the segment big enough to offer real profits?
• Accessible - is it accessible and servable for the organization?
• Feasible - is it possible to approach each segment with a particular marketing plan?

The 6 steps of segmentation (Ries and Trout):

TARGETING

According to Doyle, 5 factors has to be considered in assessing segment attractiveness:

• Segment Size – no. of potential customers
• Segment Growth – growing or declining market
• Segment Profitability – Porter’s 5 Forces
• Current & Potential Competitors – competitive analysis
• Core Capabilities – strengths & weaknesses, assets  and competencies 

On the base the Doyle's factors, the most profitable segments to target in the ice cream
market are:

ABC1's

Children

Parents

Families

Women

Health-consciuos consumers

Ethical- consumers

POSITIONING
(see also the clever positioning of the Hi-Tec Sports brand
 http://dontpanic-marci.blogspot.com/2011/04/brand-positioning-hi-tec-youve-got-to.html)

According to MINTEL there are 4 main ice cream categories in the market.
Ice cream marketers have to position their products in order to fit these categories: price, quality of the product, packaging and marketing efforts  must be shaped on the target segment features and fall into a specific ice cream category.

• Low-fat has a fat content of 5.5-6%.
• Standard is made from butter rather than cream and may also include some non-dairy fat. The fat content is usually around 6-12%.
• Premium has a higher proportion of cream and hence a fat content of 12-16%. It has a much higher price than standard ice cream, reflecting the higher-quality ingredients.
• Non-dairy does not include butter or cream, but is based on vegetable and soya. However, such products are often presented in a similar way to premium ice cream.

Psicographic STP

Target Segment	Brand	Product	Description	Rivals
ABC1 hedonic consumers	Carte D'Or	Chocolate Inspiration	Caters to the demand for dark chocolate and premium ‘origins’ ingredients.	Häagen-Dazs Caramel Biscuit & Cream
Health-conscious	Cornetto	Cornetto Mini	Targeted at consumers who want their portions controlled.	The Skinny Cow Triple Chocolate Ice Cream Bars
Parents	Wall’s	Milk Time	Probiotic lolly; contains 30% of the daily required dose of calcium for children	Starburst  Smoothie Ice lollies
Ethical-conscious	Ben & Jerry's	Chocolate Macadamia	Fair Trade Ice-Cream	M&S Organic Ice-cream

<><><>Demographic STP

Target Segment	Brand	Product	Description	Rivals
Children	Wall's	Lemon Age Lolly	Launched in connection with the film Ice Age 3	Nestlé Smarties Cone
Women	Solero	Berry Berry	Made half with fruit and fruit juice.	Del Monte, Superfruits Ice Smoothie

 


Sources

>Doyle (2001) Marketing Management and Strategy. London:Prentice Hall
>Kotler (2007) Principles of Marketing. Harlow: Pearson Education.

>MINTEL report:  Ice cream UK, September 2009

>Ries, Trout (2001) Positioning: The Battle for Your Mind. McGraw-Hill Professional
>Uniliver: http://www.unileverbestfoods.com/brands/