Most of the marketers are still practicing traditional marketing concept. Thus, implementation of marketing concept in Nepal is at an initial stage. Traditionally, Nepalese market is supply driven because of the minimum supply and maximum demand situation of the market. In that situation, most of the marketers practice mass marketing approach. That means marketers prefer to implement traditional marketing concept by producing same product in mass scale to enjoy economies of scale. It indicates no market segmentation in Nepalese market because of supply driven economy. After the restoration of democracy in 2046 BS and adoption of economic liberalization policy, private sector emerged and then slowly Nepalese market started to change from supply driven economy to demand driven economy. Increased competition has compelled the Nepalese organization to implement market segmentation approach.
Market segmentation practices in Nepal can be explained as follows:
Lack of Originality
Most of the Nepalese marketers are imitating their market segmentation practices from multinational companies. It lacks creative and original segmentation strategies. For example: Nebico Digestive biscuits is imitated from foreign brands, most of the MBA program of Nepalese University, most of the installment program of housing, vehicles, etc. are copied from others.
Not Systematic
Those Nepalese marketers who are implementing market segmentation are not marketing research based. They are segmenting their market on the basis of rule of thumb. For examples, saving account offered by Nepalese bankers are children saving, women saving, senior citizen saving, etc. which are not research based. Similarly instant noodles offered by different companies in different flavours are also the good examples of non systematic market segmentation. That is why brand failure rate of new instant noodle is very high in Nepal.
Bases for Market Segmentation
Popular bases used by Nepalese marketers are geographic and demographic bases. For example, 5 development region, 14 zones, 77 districts, etc. are common in market segmentation. Most of the department store and super markets are situated in urban and suburban areas. Big shopping center, movie theaters are in core cities. Major hospitals and schools are colleges are in urban markets. Most of the chain stores are based on geographic market segmentation. Similarly, age, gender, income, are popular demographic variables for Nepalese market situation. St. Mary’s School, Padma Kanya Campus, Maternity hospital, beauty parlor, have targeted female customers. Bikes, handsome parlor, Gym center, have targeted male customer. Use of family size and stage of family life cycle is also increasing for segmentation. They are using for housing, tour package, etc.
Similarly, use of psychographic and behavioural bases are also increasing. In the past, these variables were neglected. For examples, jeans, shoes, cosmetics, liquor, cigarette watch, mobiles, hotel and restaurants are using psychographic variables for market segmentation. Faded jeans, Surya, Khukuri. Pilot, Shikhar cigarette, Tuborg and Carlsberg beer, Romanov Vodka, Pulsar, bullet, FZ bikes, etc. are using psychographic bases for market segmentation. Desired benefit, occasion, loyalty status, usage rate are also started to practice in Nepalese market for market segmentation. Use of behavioural bases for market segmentation can be observed like toothpaste (strong teeth, fresh breath), bathing soap and shampoo (strong hair, non-sticky hair, thick hair, anti dandruff), edible oil (healthy, taste), etc. In conclusion, use of market segmentation approach in Nepalese market is increasing day by day. They have also started to use modern bases like behavioural bases and psychographic bases for market segmentation in comparison to traditional use of geographic and demographic bases.
Increased competition, increased customer knowledge and awareness, changing technology and demand-supply situation have forced Nepalese marketers to implement market segmentation approach. To survive in the changing marketing environment, it is inevitable them to change their marketing approach for market segmentation.
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