Segmentation Analysis

PMD personal Microderm products are at home microdermabrasion products for healthier skin. Microdermabrasion is a non-chemical procedure which removes the outermost layer of the skin which constitutes dead cells and reveals a healthier layer of skin with higher levels of collagen.  This procedure is used to remove scars, blemishes, sun damage and wrinkles. This procedure is very expensive and being performed by dermatologists. A group of doctors, engineers and experts at PMD built at home microdermabrasion handheld device in early 2004 ( Get PMD, 2016). The product provides affordable microdermabrasion experience at home, which is at par with the professional microdermabrasion offered by dermatologists. This product uses discs which exfoliate skin which leads to removal of dead skin and it reveals a better and healthier layer of skin.

 The company didn’t have enough funds for huge marketing budget and operated from a basement office.  Initially, in 2004, PMD personal microdermabrasion devices were distributed free of costs to mummy bloggers so as to get the social media attention and positive reviews ( Get PMD, 2016). The product is a huge success as it offers multiple skin benefits and provides rejuvenated skin. At present, the PMD is a premier brand selling Microderm devices and skincare products. The company has the huge business scope as the dermatology devices market is expected to reach $11,337 million by 2019 (Markets & Markets, 2015). There is increased demand for dermatology devices due to rising incidence of skin problems and due to increasing awareness about dermatology procedures. 

 Product positioning is a most important part of a marketing plan as it helps in communicating the product attributes to the customers. An effective product positioning helps in reaching the different target audience. In order to position effectively, the organization should first segment the market so that the message can be designed according to target market (Ries & Trout, 2001). The positioning message is designed to meet the needs of the target customer. Positioning involves motivating the prospective buyers to buy the product by highlighting the product attributes.  Positioning message is a printed salesman itself as it aims at providing maximum benefits to target customer (Ries & Trout, 2001).  The customer should be able to understand the benefits being offered by the product so as to determine the perceived value (Haines, 2012). . This perceived value helps in determining the price of the product.

 PMD personal Microderm is positioned as a home use DIY tool for microdermabrasion treatments.  The PMD position itself as a tool using patented spinning disc technology which removes the dead cell and the vacuum suction tool helps in rejuvenating the skin. Through this positioning, PMD targets those individuals who want to go for microdermabrasion for their skin problems but find the microdermabrasion treatments quite expensive. The affordability factor of PMD personal Microderm has expanded the market for microdermabrasion to include those who want better skin. Their positioning message clearly communicates it a home use microdermabrasion tool. The features which PMD positioning communicates are:-

• It reduces wrinkles, pigmentation, and scars.
• It improves the skin quality.
• It can be done at home.
• It is as good as professional microdermabrasion treatment done by dermatologists.

While buying the PMD personal microderm, the customer will think that this product benefits such as younger looking flawless skin, it is more affordable, it is easy to use, and it carries no risks. Hence it can be said that positioning message is a salesperson itself which communicate the product features. This positioning of the product is mainly achieved through blogs of the customers. They apply application based segmentation wherein the market is being segmented on the basis of benefits being sought. The target customer is one who wants microdermabrasion for pigmentation, scars, wrinkles or for better skin. Before launching the product PMD conducted a clinical study on 54 patients in which it was being observed that the product offered a reduction in wrinkles, sun damage, skin roughness and overall skin improvement. Thus it segmented its market on the basis of benefit being sought by the customer. The target customers are divided into following categories:-

• Customers seeking the reduction in wrinkles.
• Customers seeking the solution to pigmentation.
• Customers seeking the reduction in scars.
• Customer seeking overall improvement in skin.

On the basis of this segmentation the organization should devise its marketing strategies.

The marketer can sell a product effectively only when he possess relevant information about its target customer.  The organization should possess the demographic, geographic and lifestyle related information about its target market so as to design proper marketing mix (Oslen, 2008).  By having the customer data in place the organization can devise effective marketing mix strategies.  The 4 P’s of marketing mix constitutes – Product, Price, Promotion and Place. The role of the marketer is to understand the needs of target customers and then design a product which meets the needs. This product should be sold at a fair price through various distribution channels and effective promotions should be designed to increase customer awareness about the product (Oslen, 2008).  The 4 P’s for PMD personal microderm are being discussed as below:-

Product: – The PMD personal Microderm is a home used microdermabrasion tool. The product is designed to meet the skin improvement needs of its target market. Thus the product comes with multiple exfoliating discs to meet the multiple needs of the customers. The product offers similar to spa treatment as it uses the same aluminum oxide crystals. The product has patented spinning discs which provide highly effective microdermabrasion experience. The product comes with 12 months warranty so as to gain the trust of its customers. Thus in order to meet the needs of its target market, the product is designed effectively.

Price: – The cost of PMD personal microderm is quite affordable when compared to the cost of microdermabrasion treatment professionally.  The price of the product is a onetime cost and offers lifelong benefits.  Furthermore, it offers other benefits such as convenience of treatment at home and high product quality. Thus the benefits being offered by PMD personal Microderm outweighs its costs. The price is arrived by keeping in mind the target market for most of the people who wish to go for microdermabrasion treatments find it quite expensive. Thus price is quite attractive for those people who need the treatment but can’t afford it.

Promotion: The PMD didn’t have funds to afford huge marketing budget at the launch of the product. The company designed innovative promotional strategy by focusing on its target customers. The company produced 1800 devices in 2004 out of which, 500 were being distributed to mummy bloggers. This promotional strategy helped PMD in reaching its target customer through the blogs and product reviews of its initial users.  Thus this strategy popularized the product due to its highly effective visible results.

Place: The place refers to the distribution channel being followed by the company (Mannings, 2008). The PMD microdermabrasion products are being sold online and through local retailers. But they are more popular online as the local retailers sell at a higher price.

Competitive strategy used by PMD personal Microderm

Michael Porter designed Generic strategies framework which outlines the three major strategic options available to an organization. These three strategic options are as below:-

1. The organization can achieve sustainable competitive advantage by achieving lower costs as compared to its competitors (Porter, 1985). Thus the organization achieves cost leadership as a competitive advantage.
2. The organization can achieve sustainable competitive advantage by differentiating its products from its competitors (Steinhardt, 2010).
3. The organization can also develop sustainable competitive advantage by focusing o niche markets and catering to their needs (Porter, 1985).

The sources of competitive advantage of PMD personal Microderm is product differentiation and focus. The PMD personal microderm has differentiated its products through its patented spinning disc technology and calibrated vacuum suction. Due this differentiation the company is able to provide high quality microdermabrasion treatment to its customers at the comfort of home. The PMD focuses on skin improvement market and keeps improving its products to meet the needs of its target customers. The company uses social media heavily to connect and understand its target customers. These competitive advantages have made PMD an industry leader in the home microdermabrasion product category.  Though the products of the company are quite affordable but cheaper substitutes do exist in the market.

The PMD Personal Microderm is a product which has expanded the niche market of microdermabrasion by introducing the product at affordable price and by producing great results.  Earlier Microdermabrasion was a niche market but PMD has expanded this market by selling it as a product for general skin improvement. The company has identified the target market and devised proper marketing mix so as to make this product a success. The company has implemented innovative marketing strategies by sampling focusing on its target customers. Through its patented spinning discs it has been able to position itself as a market leader in home based microdermabrasion tools.

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