Companies can segment their market on one/many of these categories – age, locality, gender, money spending capacity etc. And they try to target as many segments as possible to increase brand value and revenue. This is very important to remain competitive in today’s market.
But, this is not the only way to remain competitive and make money. As we can see many of the companies target only few segments of the market, and still they are more competitive and rich.
For example, Rolls-Royce
Rolls-Royce produces a finely crafted, state of the art, luxurious, premium, innovative and none the less, very expensive cars.
Rolls Royce is in the motor car market since early 1900’s. Right from beginning company focused on craftsmanship, quality of engine, overall vehicle and comfort of the people inside. Therefore with all these premium features the only customers Rolls Royce targeted were very rich people who can pay a lot of money to such premium quality car.
Rolls Royce is major provider of Engines for ships & aeroplanes, Propellers etc, as well. But most of the people know Rolls Royce only for their motor business. This is because of the brand value, their market position, and the market segment they target.
Rolls Royce three main pillars on which their market position is based on: Quality Perfection, Engineering Excellence, and Reliability.
Take a look at this video. The umbrella in door feature is looks very simple and small feature. But the detailed craftsmanship and quality in such a small feature shows the premium quality and the worth of whole car.