Question

Visit three web services of fast moving consumer goods (FCMG) companies (for example Unilever and P&G). Is there evidence of a segmented approach or are they mass marketing? Rank the three companies in terms of how well they segment their market and prepare a set of recommendations on how they could segment their market further. 500 words

Answer 1

Procter & Gamble - Database Marketing:

Direct to consumer channels complement indirect channels
Reflect.com for customized cosmetics, and, related products
Direct marketing is for a more targeted approach; there is a chance of channel conflict if the channels are not managed well
DBM in consumer markets uses geo-demographics, and, information brought together on a relational basis, which draw on socio-economic variability, demographic variables, lifestyle information, and, purchase behaviour
Database Marketing helps firms understand, and, communicate with consumers who have specific attributes & characteristics
Relationship with consumers can be enhanced through a customized service based on information
Dell - Multi channel segmentation: Channel Chains

Channel chains for the consumers as they meet their needs through different channels at different stages of relationship with the suppliers
Channel chain analysis for assessing which channels are used at which stage of the purchasing process
The five points of contact are Post, Net, Telephone Support, In-house repairs, and, Web Support for exchange of value; web, call center are for exchange informaction; dialogue initiation is through online & offline promotion, or, through account managers
Dell uses multiple channel chains in the channel-mix; the direct model uses press advertising as the direct marketing tool; and, information is provided by call center staff, and, product brochures
Thomas Cook - with integrated ThomasCook.com - Organizational Structure & Channel Tactics

Exploit synergies within channels
A semi-detached hybrid approach used for organizations using a multi-channel model
Thomas Cook uses a multi channel or activity based strategy
Reward systems based on customer lifetime value does not tie them to a particular channel distorting behaviour in favour of maximizing returns from that particular channel
It is not a low-cost web channel only approach but stores that generate trade even for websites