Segmenting the herbal consumer market

Abstract

The consumer products market in India has shown signs of nearing maturity with growth rates falling below 10% per annul. However, a segment of this market, viz., those products which are marketed using a herbal tag association, has succeeded in growing faster than market rates. In this context, it becomes important for marketers to identify key segmenting variables to locate the herbal consumer. Herbal products are defined are those which have a presence of natural shrubs, herbs etc. in their raw material, and are marketed with the association of nature and associated sciences. like Ayurveda, and similar traditional body care practices in the country. This encompasses a wide range of products, of which the study focuses on three categories - skin care, health care, and body care. An analysis of the existing positioning schemes followed by marketers today indicated the use of demographic variables like age, income. sex, occupation and education in order to segment this market. However, qualitative research shows that these variables may not provide a sound insetting ground. A better scheme would be to do a need-based segmentation. along with needs, the attitudes and experiences of the buyer also seemed to be important in creating classifications of buyers. Based on the possible variables that could be used for this segmentation as emerged from the primary research, a secondary research was executed, with the purpose of grouping the suggested variables into sub-classes and identifying broad characteristics of the herbal consumer groups. The research showed that there is strong correlation between the need and attitude variables and the purchase behavior of herbal products. and that the resulting classes can be broadly applied in the context of any product being marketed under the herbal tag, with qualifications made for t: product type. Thus, we produce segments across product categories, using the variables identified in the research.