On a recent visit to the US, I met a young doctor who told me she was a surgeon, and on enquiry, said that she was a surgeon specialised in surgery of the hand. ‘Do you have enough patients to fill your day?’ I asked her. She said there were four such surgeons in the hospital and they were all very busy! This got me thinking—about how times have changed from five decades ago.
In today's dynamic marketplace, segmentation has emerged as a cornerstone strategy for businesses aiming to meet diverse consumer needs and preferences. This approach involves dividing a broad target market into smaller, more manageable segments based on factors such as demographics, psychographics, behaviour and geographic location.
By understanding the unique characteristics and desires of these segments, companies can tailor their products, marketing strategies and customer experiences to enhance relevance and engagement.
Consumer products: Beyond one-size-fits-all
The consumer products industry exemplifies the power of segmentation. Once dominated by mass-produced goods, it now thrives on offering specialised products catering to specific consumer tastes. Take Coca-Cola, for instance, which has expanded its product line to include Coke Zero, Diet Coke, and various flavoured options. This diversification not only appeals to different health preferences but also boosts consumer loyalty by providing choices that resonate with individual lifestyles.
In India, Coca-Cola developed a small solar-powered box which can keep the cola ice-cold, for the customer in rural India, where there may not be any electricity. This keeps the rural customer now happy!
Like Coke, segmentation has revolutionised product accessibility. Items like hair oil and shampoo are now available in single-use plastic sachets, making them affordable and reaching even the most remote rural areas. This strategy illustrates how segmentation can break down economic barriers and meet localised consumer needs effectively.
And now, hair oil is available for those with dandruff; with dry scalp; with oily hair; with falling hair; with oily hair; for growing hair...!
Media: Personalisation in content delivery
The media landscape has also embraced segmentation through personalised content delivery. Previously, India's television market was monopolised by a government-controlled station.
Today, there is such a large number of independent channels, it is difficult to list them.
Digital streaming services like Netflix use sophisticated algorithms to recommend content tailored to individual viewing habits. This shift from one-size-fits-all broadcasting to personalised streaming highlights the industry's adaptation to diverse viewer preferences and technological advancements.
Education: Tailoring learning experiences
The field of education has witnessed a surge in specialisation. Programmes once limited to broad academic disciplines now offer focused studies.
My friend’s son told me that he had specialised in 'animation'. It was the first time I had met someone in this field. He had a great job and he was enjoying it. Until the recession hit the industry and he lost his job and could not easily find another—not many opportunities in this highly specialised field!
These specialised programmes prepare graduates with specific skills and also enhance their employability in evolving industries. However, economic downturns can challenge job prospects, underscoring the importance of adaptable education that responds to market fluctuations.
Healthcare: Personalised care and distance management
In healthcare, segmentation plays a crucial role in delivering personalised patient care.
Companies like OMADA are at the forefront of remote management solutions, offering online programmes and coaching services that address chronic conditions and promote wellness management. This approach not only improves patient outcomes but also expands access to specialised healthcare services, particularly in underserved areas. The COVID-19 pandemic has accelerated the adoption of telehealth and online healthcare education, reinforcing the importance of distance management in medical training and patient care.
I had already mentioned above, about the specialisation in 'hand surgery'—and it would be the same with every other area of the body.
The days of my youth, where the general practitioner treated us for ‘everything’, are over a long time back.
Conclusion
In conclusion, segmentation continues to redefine industries by fostering innovation, enhancing consumer satisfaction and responding to markets. Whether in consumer products, media, education, or healthcare, businesses and institutions that embrace segmentation can effectively navigate diverse markets and position themselves for sustained growth in an increasingly competitive global economy.
The world around us has changed and is constantly changing—fast and faster.
(Walter Vieira is a Fellow of the Institute of Management Consultants of India- FIMC. He was a successful corporate executive for 14 years and then pioneered marketing consulting in India in 1975. As a consultant, he has worked across four continents. He was the first Asian elected Chairman of ICMCI, the world apex body of 45 countries. He is the author of 16 books, a business columnist and has been visiting professor in Marketing in the US, Europe, and Asia for over 40 years. His latest books are ‘Marketing in a Digital/Data World’ with Brian Almeida and ‘Customer Value Starvation Can Kill’ with Gautam Mahajan. He now spends most of his time on NGO work and is presently Chairman, Consumer Education and Research Society, India)
