Free Essay on Tiger Balm Positioning Strategy and Behavior Segmentations

Published: 2017-12-08
Free Essay on Tiger Balm Positioning Strategy and Behavior Segmentations
Type of paper:  Essay
Categories:  Marketing Behavior Business strategy
Pages: 5
Wordcount: 1320 words
11 min read

Free Essay on Tiger Balm Positioning Strategy and Behavior Segmentations

Identifying marketing segmentation is one of the most important aspects of marketing. It entails dividing the market into distinct features such as the aspect of buyers, products, and sellers and all the factors that will make the firm or product sold to be more marketable compared to that of the competitors. This essay aims to look at one particular segmentation known as behavior segmentation and the positioning strategy of Tiger Balm Company.

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Tiger balm is a company that produces an analgesic remedy made up of herbal ingredients and aromatic formulas. It has evolved over the years and now produces symptoms-specific solutions, including plasters, medicated oils, sprays, and gels (Balm 2014). For over a century, its existence in the market has been favored because it embraces behavior segmentation and positioning strategy.

The Behavior Segmentations

Behavior segmentation divides the market based on customers' knowledge, attitudes, uses, and responses. Tiger balm uses benefits its customers seek as one of the ways of maintaining its uniqueness and long existence in the market (Pangarkar, 2015). Their range of products has many benefits, including providing remedies for the itch, sprains, and intense headaches. They also effectively chase colds once applied to the chest and act as a mosquito repellant. Another portion that they use is loyalty.

The company retains loyal customers by using a traditionally packaged product in a hexagonal jar that is well known by the customers (Pangarkar 2015). Since there is a perception that tiger balm is widely targeted at the elderly, the marketing department of Tiger Balm has sought ways to rebrand the balm by making the product attractive to the young generation. They have done this by extending the product line used by athletes and the young generation.

Unlike behavior segmentation, the positioning strategy aims to make the product appear distinct from competitors' brands. One of the strategies adopted by Tiger balm is specific demography (university 2016). It targets people who develop pain more frequently. This target group comprises athletes who develop pain and strain from engaging in vigorous activities, white-collar officers due to long sitting hours while maintaining a certain posture, and adults who rely on painkillers to manage persistent pain. Branding also plays another important role in positioning. According to Mr. Aw, branding and distribution are assets whose values extend beyond the current time (Pangarkar 2015). Tiger balm has developed new brands that are essential for attracting new customers. It has also enhanced distribution lines and ventured into new markets. Its brand positioning statement is "works where it hurts, works for millions worldwide" (Balm 2014). It helps differentiate tiger balms' brands from other companies' brands and leaves a lasting impression on customers. Both packaging and positioning statements are essential in attracting new customers and making them repeat customers.

Segmentation plays a big role in marketing and helps in identifying market targets. For instance, behavior segmentation helps identify the benefits that consumers seek from a product. The information is needed for scheduling promotions. Behavioral segmentation also enhances customer loyalty. Loyal customers are cheaper to retain. They are more profitable. Their engagement helps create reliable feedback. They help increase the customer base since they are more likely to attract new customers through word of mouth.

On the other hand, acquisition of new customers helps in increasing the market size. Positioning attracts different customers, helps win their attention and interest, and attracts competition. Adapting behavior segmentation and positioning strategy helps tiger balm retain its customers and attract new ones. They also help ensure long existence in the market, giving it healthy competition against other companies and helping maintain its profitability.

The Importance of the Solid Segmentation Strategy

When you create any product, you must understand who your target audience is. That is why Tiger Balm initially carried out detailed studies and created focus groups to identify categories of customers. For example, the company spent a lot of time popularizing the balm among athletes from India, Iran, Turkey, Europe, and the USA. Initially, the company's management determined the strategic vector of development and concentrated only on those age categories ready to buy painkillers. For example, most swimmers, biathletes, jumpers, and boxers need to reduce back spasms. Their bodies are sore after workouts, so a balm is a good buy.

Another vital step is the selection of the correct age groups. For example, most athletes are in the age group of 18 to 40. They need a balm that can quickly anesthetize the wound or relieve swelling of the muscles. But many people after 50 also need balms, painkillers, and restorative gels. That is why Tiger Balm has created dozens of products that allow you to choose the optimal composition of balms with analgesics, vitamins, and minerals. Product segmentation is especially important when customers need special offers. For example, many people over 60 want to buy an anesthetic balm without bee venom, as it causes an allergic reaction on the skin or even asphyxia. That is why a clear division of products by ingredients and type of active substances is so important for running a successful business.

Choosing the Right Price Range

Not all people are willing to pay a lot for balms, gels, and other medical products. What if people want cheap beauty, pain relief, and recovery products at the lowest price? In this case, the brand should go for the creation of price gradation and product segmentation. Tiger Balm decided to create a budget category of products accessible to anyone. Some of their balms, lotions, and creams contain fewer ingredients to make them cheaper to produce. At the same time, the main medicinal effect is preserved. The second nuance is the reduction in the cost of packaging, which allows you to create an ideal budget product. Such a strategy is extremely important in the Asian markets because not all people are willing to pay a lot.

At the same time, high-income customers are interested in buying premium products. They want to see exotic ingredients, beautiful balm bottles, and colorful boxes with beautiful fonts. That is why Tiger Balm has created dozens of products to meet the needs of today's market. Positioning is extremely important to retain certain categories of customers. This company has diversified risk and created innovative products, taking into account all financial levels, which gave it an edge over its competitors.

Flexible Behavior Segmentations

One of the key reasons for this company's success is its flexible approach to product segmentation. For example, Tiger Balm conducts annual product updates and partial rebranding. Some balms and lotions are positioned by the brand as universal products for athletes, the elderly, and those whose body needs care. Sometimes generic products are exactly what most customers need. The fact is that some people are used to buying products that can help them with several problems at once (back pain, spasm, swelling of the skin). At the same time, another part of the customers wants to put in a lot of ingredients and nutrients. That is why Tiger Balm makes versatile products to meet most people's needs.


As you can see, positioning strategy and behavior segmentations are extremely important for the modern market. Regardless of the type of company, management must create a solid marketing strategy and correctly identify end customers. Only this approach allows for minimizing risks and adapting to constantly changing market conditions. Fortunately, Tiger Balm realized in time that segmentation and selection of solvent categories of customers is a priority. Thanks to this strategy, this company became the market leader in balms and restorative potions. Many companies should carefully study the history of this brand before launching new products.

Reference List

Balm, T., 2014. Tiger balm. [Online] Available at: [Accessed 24 October 2016].

Pangarkar, N., 2015. Linkedin. [Online] Available at: assets-lessons-from-tiger-balm-nitin-pangarkar [Accessed 24 October 2016].

University, s. m., 2016. Singapore management university. [Online] Available at: success [Accessed 24 October 2016].

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