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    A Study of the Impact of Values and

    Lifestyles (VALS) on Brand Loyalty withSpecial Reference to English Newspapers

    PRESENTED BY :-

    AAYUSH (09PG)

    AYUSH (09PG)JATIN (09PG379)NISHANT (09PG)RAKSHIT (09PG)

    SHUBHANWITA (09PG)

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    INTRODUCTION

    Indian Newspaper Industry is witnessing high growth, despite the rise of the Internet and of

    telecommunications as viable sources of information. Earlier all the newspapers thought that the

    opportunity for them was within their own geographical area. But, in coming years publishers will be

    spending over Rs.1000 crore to invade into others territories. Unless the publishers recognize the

    preferences of readers, it would be unlikely that they would succeed in winning the hearts of the

    customers.

    This research makes an attempt to recognize the preferences and segment the readers of the English

    newspapers based on their psychographic profiles by using VALS. VALS is a way of viewing people on

    the basis of their attitudes, needs, wants, beliefs and demographics. This research also analyzes the

    influence of psychographic factors on brand loyalty based on Brand loyalty scale and suggests the

    psychographic segments to be targeted by the brands to sustain in the competitive Market environment.

    Different types of market dominance strategies for various market positions are also explored.

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    VALS

    VALS is a way of viewing people on the basis of their

    attitudes, needs, wants, beliefs and demographics. The VALS

    program was created by the SRI International in 1978 in an

    attempt to understand peoples personality through their

    behaviors amid the changing values and lifestyles in 1970s.

    The system identifies current and future opportunities by

    segmenting the consumer marketplace on the basis of the

    personality traits that drive consumer behavior. VALS applies

    in all phases of the marketing process, from new-product

    development and entry-stage targeting to communications

    strategy and advertising.

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    VALS reflects a real world pattern that explain the relationship

    between personality traits and consumer behavior.

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    VALS Segment

    Factor 1: Innovators consisted of four items reflecting how this lifestyle group enjoyingthe finer things receptive to new products and technology and they are frequent

    readers of wide publication.

    Factor 2: Strivers contained four items describing people of this group as trendy,

    fashionable and fun loving. They favor stylish products. As they are motivated, theyconcern very much about the opinion and approval of others.

    Factor 3: Achievers contained three items characterizing themselves as change-leaders

    and people with high self-esteem.

    Factor 4: Experiencers consisted of three items reflecting how this life-style group liked

    excitement, thrill, new things and challenges.

    Factor 5: Survivors comprised three items classifying people in this group as those who

    are limited and with less resources and living narrowly focused lives. Their primary

    concern was safety.

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    Factor 6: Believers consisted of three items depicting people in this group asconservative and conventional. Their education, income are modest butsufficient to meet their needs.

    Factor 7: Thinkers consisted only one item classifying people in this group asthose who are interested in art, culture and history.

    Factor 8: Makers consisted of two items classifying the people in this group asthose who are interested in making the things in their own way.

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    IDENTIFYING MARKET

    SEGMENTS AND TARGETS

    Companies cannot connect with all customers in large, broad,

    or diverse markets. But they can divide such markets into

    group of consumers or segments with distinct needs and wants.

    A company therefore needs to identify which market segments

    it can serve effectively . This decision requires a keen

    understanding of consumer behavior and careful strategy

    thinking. To develop the best marketing plans, managers needto understand what makes each segment unique and different.

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    To compete more effectively, many companies are now

    embracing target marketing. Instead of scattering their

    marketing efforts, they are focusing on those consumers they

    have the greatest chance of satisfying.

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    EFFECTIVE TARGET

    MARKETING REQUIRES :

    MARKET SEGMENTATION

    MARKET TARGETING

    MARKET POSITIONING

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    LEVELS OF MARKET

    SEGMENTATION

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    1- MASS MARKETING In this seller engages in the massproduction, mass distribution, mass promotion of oneproduct for all buyers.

    For example : coke 6.5 ounce bottle

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    2- SEGMENT MARKETING A market segment consistsof a group of customers who share similar set of needsand wants. The company can offer better design, price,

    disclose, and deliver the product or service.For example Santro.

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    3- NICHE MARKETING A niche is more narrowly definedcustomer group seeking a distinctive mix of benefits. Itusually identifies niches by dividing segments into sub

    segments.For example Ezee detergent.

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    4- LOCAL MARKETING Target marketing is leading tomarketing programs tailored to the needs and wants oflocal customer groups in trading areas and

    neighborhoods.For example Spiderman movie.

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    5- INDIVIDUAL MARKETING The ultimate level ofsegmentation leads of segments of one, customized

    marketing, or one to one marketing. Today customers

    are taking more individual initiative in determining whatand how to buy.

    For example Asian paints.

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    BASES FOR SEGMENTING

    CONSUMER MARKETS GEOGRAPHICAL SEGMENTATIONIt calls for division of the

    market into different geographical units such as nations, states ,countries , regions , cities , neighborhoods .

    DEMOGRAPHICS SEGMENTATION - In this we divide the

    market into groups on the basis of variables such as age, familysize , family life cycle, gender, income , occupation , religion,education, race , generation, nationality and social class.

    PSYCHOGRAPHIC SEGEMENTATION- It is the science of using

    psychology and demographics to better understand consumers. Inthis buyers are divided into different groups on the basis ofpsychological/ personality traits lifestyles or values.

    BEHAVIORAL SEGMENTATION - In this marketers dividebuyers into groups on the basis of their knowledge of , attitude

    toward , use of, or response to a product.

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    CLASSMATES

    JAAGO RE !!!!

    http://nishant.avi/http://nishant.avi/http://nishant.avi/http://nishant.avi/
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    The Times Of India

    The largest newspaper in the country with a

    readership of about 13.3 million.

    Founded on Nov 3, 1838 as The Bombay Times andJournal of Commerce during the British rule.

    Was renamed The Times of India in 1861.

    Owned by Bennett, Coleman & Co. Ltd.

    Rated amongst the worlds six best newspapers.

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    Undisputed leader in major cities with Mumbaileading with 15.7 lakhs readers with second beingMumbai mirror with 7.71 lakhs. DNA with 6.22lakhs.

    29.19 lakhs readers in Delhi followed by HindustanTimes with 28.18 lakh readers.

    Around 10 Lakhs readers in Kolkata. Second to The

    Telegraph with a staggering 73 lakhs. 5.86 lakhs readers in Bangalore. Second being

    Deccan Chronicle.

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    Customer Profile

    SEGMENTS % of readers in thesegments

    Strivers 45

    Innovators 30

    Experiencers 15

    Achievers 5

    Thinkers 5

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    Strivers are trendy and fun loving who favour stylishproducts.

    TOI has a strong youth image and pioneer in making

    Page 3 culture.Highly popular among people in the age group of 20-

    39 years.

    In Bangalore, 54% readers of TOI are between the

    20-29 yrs age group. 52% percent readers in Mumbai,Delhi and Kolkata

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    Other Supplements

    City Specific supplements (Bangalore Times)

    Times Wellness (Saturdays)

    Education Times (Mondays)

    Times Ascent (Wednesdays)

    Times Life (Sundays)

    Rogue (Saturdays)

    ZIG WHEELS

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    THE TIMES OF INDIA

    http://times2.avi/http://times2.avi/
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    For truth telling, freedom and independence,justice humaneness and contributing tosocial good

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    Started in September 20,1878 as weekly and became daily inApril 1,1889.

    Owned by Kasturi and sons.

    Printed in 13 centers connected with high speed data lines for

    news transmission.

    First to introduce color printing and owns fleet of aircraft for

    circulations

    First to use fax for page transmission, use computer aided photo

    composing and to go online.

    Currently has a circulation of 1.453 millions copy with a

    combined readership of 4.06 millions

    Ranked 9th in National ranking and 3rd in English ranking

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    Daily Supplements Monday

    -- Metro Plus, Business Review, Education Plus

    Tuesday

    -- Metro Plus, Young World, Book Review

    Wednesday

    -- Metro Plus, Job Opportunity

    Thursday

    -- Metro Plus, Nxg

    Friday

    -- Friday Feature, Cinema Plus Saturday

    -- Metro Plus Weekend, Property Plus

    Sunday

    -- Downtown, Retail Plus, Classified Open Page, Literary Review(First

    Sunday).

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    Cntd.

    Business Line- Business Daily(largest business newspaper in India:

    Agencyfaqs)

    Sportstar- Weekly Sports Magazine

    Frontline- Fortnightly Magazine.

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    Readers Segmentation

    INNOVATORS40%

    STRIVERS35%

    ACHIVERS20%

    SURVIVORS15%

    Sales

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    Innovators are the major part of The Hindu customersfollowed by Strivers . Strivers are the segment to betargeted.

    Image is important to Innovators. They will readdifferent categories of publications. It is evident that

    most of the customers prefer the Hindu because of itsimage.

    Strivers hold the second major part of the Hindu

    customers, followed by Achievers and Survivors inthat order.

    The Hindu follows the Market Challenger Strategy .

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    The November 06, 2008 front page

    ofThe New Indian Express

    http://indian%20ex.avi/
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    Type - Daily news paper

    Owner - Express Publications (Madurai) Limited

    Founded - 1934 in Chennai, by V. Naidu, named as Indian

    Express ,renamed in 1999 .

    Circulation2,89,989 copies (source : ABC JANUARY

    JULY 2008)

    WebsiteExpressbuzz.com

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    EditionsThe New Indian Express is now published from all

    major cities in Andhra Pradesh, Karnataka, Tamil Naduand Kerala, including Chennai (Madras), Coimbatore,

    Hyderabad,Thiruvananthapuram Bangalore, Kochi .In

    total, it publishes from 22 centers in the south.

    It is also published from Bhubaneswar in Orissa .

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    Format and Circulation

    The NIE achieves its biggest penetration in the state ofKerala.

    In terms of the area it circulates in, the New Indian

    Express covers approximately 24 per cent of the totalnational population.

    At present, The New Indian Express is the Only

    National Daily which publishes news of far-flung

    Andaman and Nicobar Islands on everyday basis.

    http://en.wikipedia.org/wiki/File:The_New_Indian_Express_Mastheads_2008.jpeg
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    The SupplementsAppear on a weekly or fortnightly basis, include

    pullouts on career and education besides one on

    lifestyle calledIndulge. Also a special supplement for

    Saturday edition by nameZeitgeistis being published

    after its re launch in 2008. The Sunday supplement is

    Sunday express .

    http://en.wikipedia.org/wiki/File:The_New_Indian_Express_Mastheads_2008.jpeg
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    Magazines

    The New Indian Express Group of Companies also

    publishes Dinamani in Tamil and Kannada Prabha in

    Kannada and these magazines:Cinema Express (Tamil), Malayalam Vaarika (Malayalam)

    and Tamilan Express (Tamil).

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    The segmentation of TNIE readers

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    Believers are motivated by ideals.

    Traditional and conservative people with concrete

    belief in : family,religion,community.

    Moral codes deeply rooted.

    Organized in large part around home, community,

    social and religious organizations to which they

    belong .

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    Income level - Belong to Middle class .

    Education level - Modest level of education

    but not highly educated .

    LoyaltyStrongly loyal customers, because of

    them TNIE has highest amount 60% of loyal

    customer among three newspapers.

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    Value of TNIE to ReadersTNIE provide news in a very conservative and

    traditional way, which is successful to appeal

    conventional psychology and basic value ofbelievers

    - This is the basic market strategy by TNIE .

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    STRATEGIES TO BE FOLLOWED

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    MARKET LEADER

    The market leader is dominant in its industry. It has substantial market

    share and often-extensive distribution arrangements with retailers. It

    typically is the industry leader in developing innovative new business

    models and new products. Market leaders have to defend their Market

    share by retaining the existing customers. Market leader should have strong

    customer base of Thinkers and Believers.

    The Times of India is the pioneer in creating the page 3 culture by targeting

    the strivers. Innovators are holding second major customer base of this

    newspaper. It can start to target the Innovators as they extend their support

    and preference to other category of publications. But they dont have

    significant presence of Believers and thinkers. From the findings it is found

    that Times of India is relatively having less loyal customer base compared

    to other two newspapers .As a Market leader, they have to target Believers

    and Thinkers to increase the loyalty base, which will make the brand travel

    towards cult status.

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    MARKET CHALLENGER

    A market challenger is a firm in a strong, but not dominant

    position that is following an aggressive strategy of trying to

    gain market share. It typically targets the industry leader, but it

    could also target smaller, more vulnerable competitors.

    The Hindu has been steadily growing to the current circulation

    of over 900,000 copies and a readership of over 3 million.

    Strivers hold the second major part of The Hindu readers.

    The Hindu may start to target these segments.

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    MARKET FOLLOWER

    A market follower is a firm in a strong, but not dominant position that is

    content to stay at that position. The rationale is that by developing

    strategies that are parallel to those of the market leader, they will gain much

    of the market from the leader while being exposed to very little risk.

    Market followers may follow two options

    1. Strengthen the loyalty of existing customer base by delivering the core

    benefits to their segments. They should strengthen the segment of Thinkers

    and Believers as they are insulate to competitors promotions.

    2. Expanding the customer base by targeting the Brand Switchers. They may

    target the Experiencers, strivers and strugglers who are brand switchers to

    expand the Market share. Experiencers are impulsive and rebellious. They

    are variety seekers

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    The New Indian express is having exclusive VALS segments

    such as Believers, Makers, Achievers .The other two

    newspapers do not have significant presence in these segments.

    So the New Indian express may utilize and tap the potential

    among these segments.

    market challenger is a firm competing aggressively in

    order to extend market share. A market follower is a firmnot competing aggressively; that is aiming to maintainmarket share. Some companies seek to avoid too directcompetition. They can do this by developing a market

    niche; that is, the firm makes a product that serves aspecial segment of the market as a whole.

    T T W T T

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    STRATEGIES FOR NEW ENTRANT

    Experiencers are the vulnerable segment for New entrant in the

    Newspaper Market. They can be targeted to boost initial sales .

    Survivors can also be targeted for initial launch, if the Newspaper

    goes for low-price and consumer promotion tools.

    All the Newspaper brands should concentrate on developing their

    image and evolving in to changing needs of the customers. They

    should address the needs of Thinkers and Believers to strengthen

    their loyalty base.

    General Newspapers may utilize the Innovators willingness to read

    all categories of publications. Innovators may extend their loyalty to

    other category of their favorite publication like Business

    Newspaper, women magazine and Sports magazine etc.

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    QUERIES ???