4-2 STP Proposal

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1 4-2 STP Proposal 4-2 STP Proposal Paige Katz INT 640 International Marketing Strategy Dr. Pesakovic January 4, 2024

2 4-2 STP Proposal Purpose of STP Process STP stands for segmentation, targeting, and positioning. The process includes segmenting you market, targeting an audience, and adapting to their needs. The segmenting part of the STP process is where a company divides the market they are trying to enter or already it. They use variables and characteristics about the consumers to create groups. This involves analyzing geographic, demographic, behavioral, and psychographic segmentations. These specific criteria are what create the groups that the company would then use to target an audience. The targeting step is where the company will determine what groups they believe will be the best for their product or brand. The aspects they take into account include but are not limited to size, profitability, and reach. It’s most important for a company to figure out which segment makes sense. Whose needs will be met with our brand or our product? It’s about who makes the most sense (Wright, 2022). Positioning is the final step of the STP process. What this step does is allow the company to determine the way to market the product. They need to make it memorable and different from any competition. Positioning is where they use their branding to stand out. The factors they were created in the first two steps heavily inform how this third one plays out. The considerations made in this step include symbolic, functional, and experiential. Symbolic positioning pertains to the image and ego of the consumer. It’s about how much they belong. Functional positioning, unsurprisingly, is about what benefits will be provided and how the product or company might solve the consumer’s problems. Experiential positioning involves the emotional connection the

3 4-2 STP Proposal consumer has to the brand. The company can use its importance, or the products’, to the audience or a nostalgic strategy to gain favor and loyalty (Wright, 2022). Bases and Variables The target audience for the CVS expansion of the MinuteClinic would be located in India, starting in or near major cities such as Mumbai, Delhi, and Bangalore. While CVS is available for anyone who needs healthcare services, the specific group that we will seek out would be women and families with children. The age range will mostly be women aged 20 years and up as well as children under the age of 18. The target audience will have little to no education in mostly unskilled working sectors. They will be lower income because of this. Many of them will be married, as families are part of this segmentation. Factory and field workers are a group that may need to find medical help for small injuries more frequently. People with young children or kids in schools will need healthcare for colds and flus as well as small bumps small kids can get playing. The target audience are busy, hard-working people. They value family and health. The intention of the MinuteClinic is to provide high quality, affordable healthcare. That means CVS will be targeting people who can benefit most from that while still trying to create some profit. The target audience will have to hold some importance in spending money where there is a benefit for themselves or their family. In India’s market specifically, CVS will look advertise to people who might have access to technology or, because that is still a growing segment, people who will be passing print ads in public places (Carpenter, 2023). Effective Segmentation

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4 4-2 STP Proposal The above segmentation is broken up to the main criteria of geographics, demographics, psychographics, and behaviors. It is specific and sets a clear idea as to who CVS is attempting to reach with their international expansion. This will allow the company to get more personal with their marketing and their care. Because CVS is offering a service, the shopping habits and other patterns are not as applicable. I attempted to balance that with the addition of who would potentially looking for he low cost, accessible healthcare we will be offering. The segmentation will be easy to compare and contrast with the domestic market, competition, and other national markets. The segmentation is adaptable to change with the market and can be easily added to if needed. Positioning Strategy The main positioning strategy that I believe CVS should take with this audience in India is an affordability position. I think it will be the most attractive draw for all consumers, especially the target groups. The low-cost healthcare services are what CVS is selling and the most important part is that people will be able to access it. I think it will be a unique enough selling point and can still highlight other aspects of the MinuteClinic services. CVS can use some positioning strategies towards the product benefits specific usage. The first association that we want consumers to make, however, is the price and affordability especially compared to any competition (“Product positioning process - Steps in product positioning,” n.d.). Consumer Culture Positioning

5 4-2 STP Proposal Global consumer culture positioning is a strategy that associates a brand with a global culture (Kotabe & Helsen, 2020 p. 260). Consumer culture itself is a culture promote materialism (minus any negative connotation) aided by the market. CVS will want to advance the idea that all consumers are involved with their brand and create a global community that shares the similarity of CVS. The company will help people around the world and bring everyone together through their accessible healthcare. CVS will want to use language, aesthetics, and story themes. The CVS value of giving affordable, high-quality healthcare that anyone can access will stay the same whether we are advertising in India or the U.S. The branding is universal as their logo is heart. As for language, English is a well-known language and is spoken in many countries where it is not the primary language. It is a frequently used tool in global marketing. Using a language like English is a good way to create a global consumer culture. The only issue there is that it can also be disrespectful to the local culture (Alden, et al., 1999). I would suggest CVS ensures to advertise in either Hindi or, if possible, the more regional dialect. English can be used still, but only 12% of the population would likely understand therefore it would be alienating. Because so many in the target audience might not have formal education, there is not a high chance they have learned the language (“English speaking countries list,” n.d.). Regardless, there will still be a collective identity within the broader audience of CVS. That will be easy to create. CVS can use the strategies they have and the stories they tell through the marketing and apply it to another geographic segment. The audience will look different, I think the American audience for the company looks different. There are more educated and higher income people represented. The

6 4-2 STP Proposal goals of CVS and their mission to help people will be what could bond the two markets and connect the company’s values to those that they serve. Summary The STP proposal will segment the market to make it clear exactly who CVS is advertising to. The service we provide will be readily available for all people, but the marketing will be more intentional than that. For this kind of service in this market, I saw it best to take a disaggregate international consumer segmentation approach and look at the consumers rather than the country (Kotabe & Helsen, 2020 p. 243). The company wants to serve people who are in need and by dividing the audience up, we can see who we are trying to reach and decide how to target them. CVS can also work on how to advertise to people outside ethe specific subsets listed in the above strategy, because all people can benefit from healthcare and will provide a return to the company. Either way, CVS wills strive to create an environment of inclusion that bridges the market of low-income customer who need medical help they may not be able to afford elsewhere, and those who have the money and choose to work with CVS because of the convenience factor. Both in the U.S. and India, these are important customer groups that can be brought in using the same or similar strategies. The STP workup provides the information necessary to recognize what groups need which variables in order to be positioned properly in those markets without it looking like CVS is putting walls between those groups. I believe the biggest different from the American market to the Indian market would be promotion. There are a lot of roadblocks with online and social media advertising in India. That is the best place to advertising to American consumers so there will be a shift in that to get responses from the

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7 4-2 STP Proposal Indian consumers. The pricing may shift with the income differences between the two countries as well. I don’t however, believe that either of those factors will change the global consumer culture surrounding CVS or the MinuteClinic service (Kotabe & Helsen, 2020 p. 242).

8 4-2 STP Proposal References Alden, D. L., Steenkamp, J. E., & Batra, R. (1999). Brand positioning through advertising in Asia, North America, and Europe: The role of global consumer culture. Journal of Marketing , 63 (1), 75. https://doi.org/10.2307/1252002 Carpenter, A. (2023, September 26). Market segmentation: Definition, types, benefits, & best practices . Qualtrics. https://www.qualtrics.com/experience-management/brand/what-is- market-segmentation/ English speaking countries list . (2021, December 2). Lingoda. https://www.lingoda.com/en/content/english-speaking-countries/ Kotabe, M., & Helsen, K. (2020). Global segmentation and positioning. In Global marketing management (9th ed., pp. 238-268). John Wiley & Sons. https://bookshelf.vitalsource.com/books/9781119888727 Product positioning process - Steps in product positioning . (n.d.). Management Study Guide - Courses for Students, Professionals & Faculty Members. https://www.managementstudyguide.com/product-positioning-process.htm Wright, M. (2022, September 28). The complete guide to STP marketing: Segmentation, targeting & positioning . Yieldify. https://www.yieldify.com/blog/stp-marketing-model/

4-2 STP Proposal

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