Segmentation, Targeting, Positioning Strategies in Nairobi Schools

This report investigates the effect of market segmentation, targeting, and positioning (STP) strategies on international schools in Nairobi. Employing a cross-sectional descriptive survey design, the study collected data from 34 international schools using semi-structured questionnaires administered to marketing managers. The analysis revealed that segmentation based on gender, fees, and education system are commonly used. While undifferentiated targeting, niche market, and differentiated marketing strategies were less prevalent. Benefit and product positioning, emphasizing exceptional service quality, were the primary positioning strategies. The study concludes that STP strategies are vital for international schools, aiding in branding and positioning. The report recommends that international schools incorporate these strategies for enhanced market adaptation, client service, and image building.

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EFFECT OF MARKET SEGMENTATION, TARGETING
AND POSITIONING STRATEGIES ON INTERNATIONAL
SCHOOLS IN NAIRO

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TABLE OF CONTENTS
Contents
ABSTRACT.....................................................................................................................................................5
CHAPTER ONE: INTRODUCTION...........................................................................................................1
1.1 Background of the Study......................................................................................................................1
1.1.1 Market Segmentation......................................................................................................................2
1.1.2 Targeting..........................................................................................................................................4
1.1.3 Positioning........................................................................................................................................5
1.1.4 International Schools in Nairobi....................................................................................................7
1.2 Research Problem..................................................................................................................................8
1.3 Research Objectives............................................................................................................................10
1.4 Value of the study................................................................................................................................10
CHAPTER TWO: LITERATURE REVIEW............................................................................................12
2.1 Introduction.........................................................................................................................................12
2.2 Theoretical Foundation.......................................................................................................................12
2.3 Market Segmentation Strategies........................................................................................................13
2.4 Targeting Strategies............................................................................................................................15
2.5 Positioning Strategies..........................................................................................................................17
2.6 Empirical Review.................................................................................................................................19
CHAPTER THREE: RESEARCH METHODOLOGY...........................................................................23
3.1 Introduction.........................................................................................................................................23
3.2 Research Design...................................................................................................................................23
3.3 Population of the Study.......................................................................................................................23
3.4 Data Collection.....................................................................................................................................24
3.5 Data Analysis.......................................................................................................................................24

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CHAPTER FOUR: DATA ANALYSIS, RESULTS AND INTERPRETATION..................................25
4.1 Introduction.........................................................................................................................................25
4.2 Response Rate......................................................................................................................................25
Table 4.1 Response Rate..........................................................................................................................................25
4.3 General Information...........................................................................................................................26
Table 4.2 General Information.................................................................................................................................26
4.4 Segmentation, Targeting and Positioning Strategies.......................................................................27
Table 4.3 Segmentation, Targeting and Positioning Strategies................................................................................27
4.5 Extent of the application of segmentation, targeting and positioning strategies...........................29
Table 4.4 Extent of the Application of Segmentation, Targeting and Positioning Strategies...................................29
4.6 Effect of segmentation, targeting and positioning strategies...........................................................31
Source: Research findings........................................................................................................................................32
4.7 Discussion of Findings............................................................................................................................33
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS................................35
5.1 Introduction.........................................................................................................................................35
5.2 Summary..............................................................................................................................................35
5.3 Conclusion............................................................................................................................................37
5.4 Recommendations................................................................................................................................38
5.5 Limitations of the Study......................................................................................................................39
5.6 Suggestion for Further Research.......................................................................................................39
REFERENCES.............................................................................................................................................41
APPENDICES...............................................................................................................................................46
Appendix I: Questionnaire...........................................................................................................................46
Dear respondent,.....................................................................................................................................................46
Section I...................................................................................................................................................................46
Section II..................................................................................................................................................................46
Thank you................................................................................................................................................................50

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Appendix II: List of International Schools in Nairobi..............................................................................51

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ABSTRACT
Segmentation, targeting and positioning are tools of marketing used in gaining
competitive advantage by a firm in the market. STP can be viewed as main disciplines in
strategy of marketing; faults in these areas result in failure and tend to be costly; doing it
right leads to success. This study therefore sought to determine the effect of
segmentation, targeting and positioning strategies on international schools in Nairobi.
The study used a cross sectional descriptive survey design and carried out a census of the
34 international schools. The primary data was collected by use of questionnaires that are
semi structured in nature. The semi-structured questionnaires were self-administered to
the marketing manager at each international school. The data collected was edited for
accuracy, consistency and completeness and then analyzed using descriptive statistics
with the help of Statistical Package of Social Sciences. The study found that
segmentation based on gender, fees paid and the education system were the most used
market segmentation strategies by international schools in Nairobi but the application of
undifferentiated targeting, niche market and differentiated marketing strategies by
international schools was minimal. The study found that benefit positioning and product
positioning by providing exceptional quality of services were the most used positioning
strategies by international schools in Nairobi. Additionally, the study found that market
segmentation helps international schools to adjust to specific needs in the market, allows
international schools to serve their clients according to their needs and targeting can
allow international schools to understand the market structure and how to serve it. The
study further established that market positioning strategies can help international schools
to build their image and can help them to create proper appeals in the minds of the target
market. The study concluded that market segmentation strategies, targeting strategies and
positioning strategies are vital to international schools and they help international schools
to brand and position themselves in a better position. The study recommends that the
management of international schools in Nairobi should ensure they incorporate market
segmentation strategies, targeting and positioning strategies since they are vital for
international schools in Nairobi.

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CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
Segmentation, targeting and positioning are tools of marketing used in gaining
competitive advantage by a firm in the market. STP can be viewed as main disciplines in
strategy of marketing; faults in these areas result in failure and tend to be costly; doing it
right leads to success (Schlegelmilch, 2016).Many companies face the decision on how to
effectively handle the state of markets becoming interdependent and competitive while
consumers become choosier (Lhotáková & Klosová, 2009).Thus, segmentation, targeting
and positioning (STP) is a critical basis for each marketing strategy of product. A firm is
able to formulate an effective tactical marketing strategy (marketing mix) with a factual
STP.
The STP approach proposes that the mass market comprises of certain number of groups
that are relatively homogenous, each with different desires and needs. Marketers of STP
try to pinpoint those segments in the market, direct activities of marketing at the
segments, which the marketers are certain that their business can gratify better than their
opponents can, and site can well their merchandise offering in order to appeal to the
segments targeted (Lynn, 2011). Unlike the generic marketing strategies, which revolve
around the product, the STP model is more about the consumers. The model comes to use
when forming marketing communication strategies because it aids marketers in
prioritizing propositions, developing and delivering relevant and personalized messages
to involve with diverse audiences. It aims at commercial efficiency/effectiveness,

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choosing the most appropriate market segments for a company thereby emerging a
product positioning strategy and a marketing mix for every section (Abeck, 2017)
In Kenya, the education industry is one of the sectors that have experienced phenomenal
growth in the recent past (Kilavuka, 2007).The international schools sector in Kenya
continues to grow inexorably. As globalism continues to gather pace, so has the demand
for international education. This sector is benefiting from a more interconnected world
and the increased migration of people that this has produced. In addition, there is a
growing middle class in developing countries who also wish for their children to have the
benefit of a world-class education (Barnes, 2016). The society is also continually
demanding for higher quality education and value for their money. Society has always
had high expectations of teachers, and more so today. This has been necessitated by the
following trends in society that is; move towards the nuclear family, the increasing
involvement of women in the work force, the expansion of universal literacy programmes
and the deluge of information in this information age (Ochieng, 2006).
1.1.1 Market Segmentation
Market segmentation is the procedure of distributing a potential market into separate
consumer subsets with joint characteristics or needs and selecting one or more section to
aim with a unique marketing mix (Moyo, 2005). It includes the subdivision of the all-
inclusive market for a service or product into minor market segments or groups, entailing
customers who are somewhat alike within a precise segment and extremely different from
customers constituting other sections (Moschis, Lee &Mathur, 1997). Segmentation

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encompasses larger market being subdivided into different customer subsets with same
wants and needs or/and receptiveness to marketing offerings (Brooksbank, 1994).
Market segmentation can be carried out using various societal factors, like; lifestyle,
demographics, beliefs, values, and psychographics, geography, life stages, benefit, and
behavior (Abeck, 2017). A company can distinguish its customers in terms of geographic
variables (such as nation, state, region, demographic variables (such as education, gender,
income, and age), and neighborhood type), psychographic variables (such as interests,
values, attitudes, and opinions), and behaviors (such as purchase frequency, brand
loyalty, channel usage, and media habits) (Lynn, 2011).By aligning customers together
based on resemblance of their reactions towards greater marketing efficiency, marketing
factors, and customer fulfillment can be attained(Moschis, Lee &Mathur, 1997).
Market segmentation is an adaptive strategy. It constitutes of the market partition with the
aim of choosing one or more segments in the market, of which the firm can target
through development of precise marketing mixes which adjust to specific needs in the
market (Restrepo, 2003). Effective segmentation allows the marketers to provide a
difference between segments according to their response to market variables. For
instance, the marketers can define the differences between price sensitive consumers and
non-price sensitive consumers as a result of segmentation (Abeck, 2017). Through
segmentation, one can identify the areas having specific needs and also identify mature
markets to find new customers. Firms with high growth rates become successful by
recognizing and meeting up the desires of precise customers, not all consumers, for
special varieties of services and products, not all services or products (Olbara, 2011).

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1.1.2 Targeting
Targeting implies the method of assessing every segment’s desirability and choosing any
of them to enter (Walletzký, 2015). Targeting is the authentic segment selection. In this
process, the organization must balance its capabilities and resources against the
desirability of diverse segments (Hajar, Mahrani & Sinarwati, 2014). Targeting is
involved with a tactical concentration on one or some identified segments in the market,
and establishing marketing offers that are responsive and unique to each segment of
concern. Selection of target market includes assessing every market segment's desirability
and choosing any of the market segments to enter. After identifying the valid segments
and evaluating the consumer target’s profile in these segments, it requires to be assessed,
whether the segment is attractive for the specific brand and product (Lhotáková &
Klosová, 2009).
The decision of target market is the consumer choice in a product-market whereby an
organization will focus on its marketing program strategy of positioning. This choice is
among the most demanding challenge in the organization’s management (Moutinho,
2000). The target market comprises of the customer sets that possess the needs and
characteristics that the firm can best support. The two stages to market targeting are
emerging a segment attractiveness measurement and selecting the target segments.
Targeting enables organizations to focus more on the precise wants of the segment
targeted with regard to prestige, price, habits and desire. Once the firm understands the
consumer demand structure it decides which segments to serve and how (Hajar, Mahrani
& Sinarwati, 2014).

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Target marketing implies that a customer group has been recognized to whom the firm
will direct the majority of its marketing time, resources, and attention, with the rationale
that it is better to use a rifle than a shotgun to get results and for whom the offering
should be right(Olbara, 2011). The market should be reachable, measurable and
sufficiently large. When the target market is well-defined, based on the product appeals
knowledge and analysis of market, and is measurable, it should define whether the
audience of target is big enough to weather the organization on a continuing basis.
Furthermore, an organization’s target market should be accessible (Moyo, 2005).A
company should evaluate the overall market attractiveness and its suitability to the
objectives and resources of the company in enticing the target market (Hajar, Mahrani &
Sinarwati, 2014).
1.1.3 Positioning
Positioning refers to designing the image of a company and placing it to exist in a distinct
place in the mind of the market in target (Kalafatis, Tsogas & Blankson, 2000).
According to Walletzký (2015), positioning is placing a product to occupy a distinctive,
clear and desired place relative to its rival products in the consumers mind. This
positioning strategy is a concept through which businesses preoccupied with the
influence of their external environment on their capability strategy (competences and
resources), and influence and stakeholder expectations (Ayele, 2012). Marketers describe
the positioning of a brand in a statement of positioning strategy. The statement embraces
the vital benefits offered to customers and the intended brand or image personality the
brand anticipates to instill in the mind of the customer (Dibb & Simkin, 2006).

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Positioning is a modest tool of marketing that concentrates on image building. It is an
effort to differentiate a firm from its opponents/competitors, so as to be the better favorite
for a specific market segment (Mokaya, M’Nchebere & Kanyagia, 2017). The positioning
strategy involves marketing and designing a product to fulfill the requirements of a target
market, and creating the proper appeals to outstand the product from the antagonism in
the minds of the target market (Dibb&Simkin, 2006). The notion of positioning
constitutes both customer and competitive considerations. It basically deals with
distinction and is seen as an undertaking that is creative whereby a current brand in a
congested marketplace of same brands can get a position in the minds of the targeted
prospects that is distinct from the opponents (Ng’oo, 2012)
The core of positioning is an appropriate consumer analysis, the competitors, the brand
itself and the benefit (Lhotáková & Klosová, 2009).It is a vital concept whereby
organizations can trigger competitive advantage by good image creation for their product
in the customer minds (Ayele, 2012). An organization should evaluate the influence of its
positioning strategies on other segments. If an adverse reaction from other segments
arises, whether they are older or younger customers, perhaps the marketer should detect
those aspects (if any) that are probable to appeal to many segments and service and
position products based on these aspects (Moschis, Lee &Mathur, 1997). A business that
positions itself favorably within a precise marketplace, relative to challengers, has high
chances of garnering high profits regardless of average profit gaining within the
marketplace (Mokaya, M’Nchebere & Kanyagia, 2017).

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1.1.4 International Schools in Nairobi
The International schools in Kenya are private, coeducational day schools, which offer an
education program for students of all nationalities. Their curriculum draws from rigorous
standards and benchmarks from around the world, with the objective of providing a
challenging program that allows students to transition to the best schools internationally,
as well as top universities (Ajwala, 2014). International school’s offer curriculum based
on a foreign national curriculum, a wide range of extra-curriculum activities, expatriate
staff, foreign students and the fees charged, high investments in sophisticated resources
and equipment to support the core and extra curriculum activities and school fees which
ranges from two to three times higher than those of local curriculum based schools
(Ochieng, 2006). Nairobi County has the highest registration of international schools
(Kilavuka, 2007).
International schools provide an alternative solution to expatriate students in Kenya and
they offer same schooling standards globally, providing for a simple change between
schools whether located in USA or France (Ajwala, 2014). Most international schools in
Nairobi offer differentiated service characterized by high teaching practices that are
differentiated, teacher to pupil ratios and small class sizes, all work to make sure that
every child is carefully observed and able to reach their full potential (Barnes, 2016). The
sector has witnessed a very high growth rate as more and more international schools are
being opened. The growth in this sector can be attributed to the need to meet the
educational needs of these groups of people: children who experience difficulty with the
local 8-4-4 system of education due to subject with immigrants from neighboring