STP Analysis and Positioning Strategy

This study focuses on the STP analysis and positioning strategy of Plastic Whale, a company that offers sustainable furniture made from recycled plastics. It discusses market segmentation, target market, consumer profile, differentiation, and positioning. The study also includes a positioning statement and positioning map.

STP ANALYSIS AND POSITIONING STRATEGY
STP Analysis and Positioning Strategy
Name of the Student
Name of the University
Author Note

1STP ANALYSIS AND POSITIONING STRATEGY
Table of Contents
Introduction................................................................................................................................2
Background of Organization......................................................................................................2
Market Segmentation.................................................................................................................3
Market Target.............................................................................................................................5
Consumer Profile...................................................................................................................6
Differentiation and Positioning..................................................................................................6
Positioning Statement of Plastic Whale.................................................................................6
Positioning Map.....................................................................................................................7
Conclusion..................................................................................................................................7
References..................................................................................................................................8

2STP ANALYSIS AND POSITIONING STRATEGY
Introduction
Market segment is a vital factor that can influence the organization to reach the
correct set of customer. This is one of the major factor that is being used to assess the needs
of the customers and utilize the segmentation strategies to target and position themselves
(West, Ford and Ibrahim 2015). Thus, this study will be choosing Plastic Whale a company
known for their furniture products that are made from the recycled plastics from Amsterdam
Canal (Plastwhale.com 2019). This study will be consisting of the activities that will be
stating about the organization and the different products that the organization is involved in
offering. The study will also emphasize on the targeting the customer with correct set of
products based on the different segments of the market such as, demography, geography,
behavioral and psychograph of the customer for their operations.
Background of Organization
Plastic Whale is one of the company who are engaged in the process of promoting and
practicing recycling and reuse and help in minimizing the global problem of plastics. Plastic
creating more problem for the future generation (Plastwhale.com 2019). It is important for
the company to choose Sydney harbour as the plastic problems are becoming a menace for
the ecology of Sydney harbour. Plastic Whale is having a support from the giants such as
PWC, Brabantia, Ecover and many more (Plastwhale.com 2019). The company is involved in
collecting plastics by offering boat services that will lead to the recycle and reuse of plastic.
The offerings of Plastic Whale is inclusive of the furniture, lamps and wall panels that are
made from recycling the plastic wastes. The company is consisting of two designers of the
furniture such as Vepa and Lama for their sustainable and modular designed furniture.

3STP ANALYSIS AND POSITIONING STRATEGY
Market Segmentation
Market segment exists on four bases which are inclusive of the factors such as
geographic, psychographic, demographic and behavioural. Segmentation is one of the major
factor that will be liable for the changes that are associated with the development of the
market that is associated with the organization. These segments help in targeting the right set
of customers that will be liable for the growth of the organization. Psychographic is based on
the variables such as activity, interest, values, attitudes, and many more. Behavioural
segmentation is based on the purchase behaviour, usage, engagement, and so on (Jia, Wang
and Xiong 2017). Demographic segment is based on the variables such as social status,
income, and various more. Behavioural aspects of the segment is inclusive of the factors such
as approach of the customer and behaviour and habit of the customer for the brand such as
brand loyalty and brand affiliation. Geographic segmentation however is based on the aspects
that are related to the place of the customers such as country, state, province or any other
geographic locations. Plastic Whale being such a company offering furniture that are made
from the recycled plastic, segmentation becomes significant. There are various aspects that
are influencing the activities that are related to the development of the market segments. The
segmentation based on the four aspects needs to incorporate the variables that are associated
with the development of the market segment in Australia. These variables are inclusive of
income level, social status, family for the demographic segment and life styles, concerns and
values for psychographic along with benefits, engagements and benefits sought for
behavioural segment and country for the geographic segments. Thus, for the organization
segmentation established on the four based are stated with the help a segmentation table
below:

STP ANALYSIS AND POSITIONING STRATEGY
Customers Variable Variable Variable Variable
Executives
Class
People
Higher Income Levels
brings high
affordability
Level of
Income
Their life style more
balanced Lifestyle
Thinking about the
sustainability it is
important to consider
Intent
Owners of
the SMEs
High Level of social
status brings
responsibilities for
environmental
sustainability
Social Status
Promoting recycling is
one of the major
concerns for any
business to get the
desired organizational
Concerns
related to the
Organizational
Sustainability
The benefit that they
sought for their
business can be
utilised for the
segmentation
Benefits
Sought
Home
Makers
They are mostly
focused on welfare of
family and their health
Family
Home Makers can be a
good customer base as
they have morale
values for the benefit of
their members
Values
Their engagement
with the facility is
high. Thus, they can
be a target customer
base for promoting
Engageme
nt
Demographic Psychographic Behavioural Geographic
Based on the
country target
market for
Plastic Whale
is Netherlands
Country
Figure 1: Segmentation Table
Source: Created by Author
There is a
significant
concern at
Sydney
Harbour
that can be
chosen for
geographic
al
segmentati
on

STP ANALYSIS AND POSITIONING STRATEGY
Market Target
From the segmentation, it can be seen that there are one major segment that can be
targeted for offering the products. This is one of the major activity that will be determining
the success of the segmentation strategy. So the chosen market segment as a target can be
beneficial for Plastic Whale if they chose the owners of SMEs as their targets. The reasons
for the same is stated below:
 Growth in the sector SME is undoubtedly creating potential market for the Plastic
Whale for their furniture
Figure 2: SMEs Share of Responding Business in Australia
Source: Statista.com (2019)

6STP ANALYSIS AND POSITIONING STRATEGY
 Their intention to achieve the organizational sustainability can be a benefit by
offering the sustainable furniture for their organization
 This will be transferring the values of a plastic free society to a mass of people
Consumer Profile
The selected segment of Owners of SMEs can a have a consumer profile of being
involved in a SME. These SMEs can utilise the furniture in their office that will be promoting
their point of view towards environmental sustainability. Their profile is inclusive of the
social status that requires minimalism and sustainable products. Their characteristics are
inclusive of concerns related to the organization along.
Differentiation and Positioning
There are five bases of differentiation for the organization that are based on the
product, image of the brand, service, people associated with it and channel of distribution. In
this case two of the most suitable bases for the differentiation is the product and image of the
brand.
 Product: The products company offering needs to incorporate features, quality
and durability for differentiation from the other competitors (Ze et al., 2018). In
this case, these products are sustainable.
 Image: The brand image needs to carry and atmosphere along with the symbol to
project their values (Caldieraro 2016). In this case, the company is having a
motive to minimize the plastic wastage by utilising them in making furniture,
lamps and wall panels. This will help in gaining the requisite attention of the
Australian consumers.
Positioning Statement of Plastic Whale
The positioning statement of Plastic Whale is stated below:

7STP ANALYSIS AND POSITIONING STRATEGY
For the people belief in creating a better future, Plastic Whale offers sustainable products
for the consumers. Unlike any other brand Plastic Whale is spreading the awareness about
the dangers of plastic waste along with commitment to build a future with plastic free waters.
Positioning Map
Conclusion
Plastic Whale is a significant company that is having a view to project the benefits of
a plastic free water along with making sustainable products. The current condition at the
Sydney harbour has enabled the situation to create a potential market for Plastic Whale at
Sydney harbour. Thus, to conclude the study it can be said there is enough opportunity with
the offerings of Plastic Whale and it is important for them to incorporate marketing strategies
that will help in building relations and promote sustainability.
High Sustainability
High Durability
Low Durability
Low Sustainability
Figure 3: Positioning Map
Source: Created by Author

8STP ANALYSIS AND POSITIONING STRATEGY
References
Caldieraro, F., 2016. The role of brand image and product characteristics on firms’ entry and
OEM decisions. Management Science, 62(11), pp.3327-3350.
Jia, C., Wang, Y. and Xiong, W., 2017. Market segmentation and differential reactions of
local and foreign investors to analyst recommendations. The Review of Financial
Studies, 30(9), pp.2972-3008.
Plasticwhale.com 2019. Plastic Whale Circular Furniture - Hoogwaardig kantoormeubilair.
[online] Plastic Whale. Available at: https://plasticwhale.com/circular-furniture/#story
[Accessed 30 Mar. 2019].
Statista.com (2019). Australia - number new business entries by industry 2017 I Statistic.
[online] Statista. Available at: https://www.statista.com/statistics/881988/australia-number-
new-business-entries-by-industry/ [Accessed 1 Apr. 2019].
West, D.C., Ford, J. and Ibrahim, E., 2015. Strategic marketing: creating competitive
advantage. Oxford University Press, USA.
Ze, Y., Abbas, H., Hussain, T. and Jiao, H., 2018. Analyzing the differentiation strategies of
big companies competing with each other. Strategic Management, 23(3), pp.25-37.