SPAR Case Study
The company in my district which I feel is most customer-centric would have to be my local food retailer, SPAR. This purely means that they have used a proven, tactical sales method that enables them to predictably generate more revenue without increasing sales costs. In focusing their activities and products on consumer demand they have managed to build many profitable and sustainable relationships with their customers.
SPAR offers a 'Double Your Money Back Quality Guarantee' on all SPAR Brand products. As well as this they keep ahead of brand standards by having their products tested on a monthly basis by an independent laboratory. In doing this they create a feeling of security around their brand. Customers who demand high quality at a reasonable price and a sense of security around the products that they purchase are most likely to use a SPAR brand item.
SPAR opens at 07h00 and closes at 19h30. This is done in order to accommodate customers who wish to do their shopping before or after work.
They provide a safe environment for shoppers as they have friendly and visible security. Many customers, who demand safety, feel secure and at ease whilst doing their shopping.
The tellers, staff and managers are well trained, friendly and reliable, many of which have worked for the company for many years and have developed relationships with their customers. These relationships allow them to provide reliable customers with certain products on request such as magazines, pasta sauces, certain fruits and vegetables and selected cuts of meat etc.
Question 2
Demographically we can segment the market into groups based on age, gender, family- size, income, family life cycle and occupation.
The target market will be specifically made up of males and females ranging in ages from 18- 45. This segment was selected as many people younger than this age are still having their meals selected for them whereas those who are older than this bracket are seeking a healthier and more holistic lifestyle. For secondary target markets healthier products should be provided as well as products for children
Much of the target market will be business people who earn between R36 000- R400 000 per year. Target Markets earning less than this may not have as much disposable income to spend on Dunkin’ Donuts products. More inexpensive products should be available for secondary target markets with less purchasing power.
By using psychographics we can segment the market into groups based on social class, lifestyle and personality characteristics.
“A market segment consists of a group of customers who share a similar set of needs and wants. The marketer’s task is to identify the appropriate number and nature of market segment and decide ...
As discussed in Chapter 3, there are several bases for market segmentation. Because the needs and wants of consumers in various markets differ, there are general indicators that are used to segment markets—geographic demographic, and arguably most importantly, psychographic segmentation. From this, variables like lifestyle, family size and region are used to identify key segments for Virginia Beach. (Spiller, 2012, 88)
The fashion apparel retail market can be segmented using the following factors: geographic, demographic, and psychographic.
Since the customers in this industry are not price sensitive, having a competitive advantage is vital for firms. Hill-Rom considers customer service is its reputation, thus gives significant value to its customer relationships. In addition, its variety of products gives high competitive advantage to the
Companies start by segmenting their customers by demographics, geographics, behaviors, and attitudes (Iacobucci, 2013). Once the company decides who their segment group is, they can target
Caroline and Jennifer said that ‘Market segmentation is a crucial marketing strategy. Its aim is to identify and delineate market segments or set of buyers which would then become targets for the company’s marketing plans.’ (Tynan and Drayton, 1987) There are many ways to segment the market, such as age, region, environment, psychology and wages (Hall, Jones and Raffo, 2010).
Segmentation, targeting and positioning are the fundament of modern marketing (Proctor, 2002, p. 188, as cited in Harris and Schaefer, 2015).
There are a range of segmentations that allows a company to target potential customers effectively.
Market segmentation can be defined as the process of subdividing and defining a large homogenous market into a clearly noticeable segments
Demographics of the area show the largest consumer base as professional adults and students ages 24-54 with household income of $52,000 and up. The primary target market are the professional wage earners, which will be a high proportion of customers that will have a greater demand for the product, the age and income breakdowns show that a large portion has enough disposable income to be able to patronize Rooms for Dessert upscale dining and entertainment. Sub-segment market is based on the heterogenous approach, “The heterogenous approach taps into the differences between consumer demands. Segmenting the market into bite-sized chunks allows your company to cater to individuals” (Bradley., N.D.). Rooms for Dessert will target customers desiring a sweet treat not necessarily a high-end dessert such as customers who are generally not concerned about health or
Markets can be divided depending on a number of wide-ranging criteria. Variables that are commonly used for segmentation are geographic (region, country size, climate etc.), demographic (age, gender, family size, religion, language etc.), psychographic (personality, life style, attitude etc.), behavioral (benefit sought, brand loyalty, decision making unit etc.), and technographic (motivation, usage patterns, standard of living etc.) ones. Successful segmentation requires the following: segments have to consist of members that are similar to each other; segments have to be distinctively different from each other; segments have to be computable and sizeable; segments have to be reachable and actionable; target segment has to be
We always make sure that when they come to our stores they experience the best shopping and that they find what they want to buy and we have a reason for them to buy. We make sure that our merchandising is up to standards and it motivates the customers to shop in our stores.
A lifestyle marketing perspective shows how people sort themselves into groups on the basis of activities they enjoy, how they spend their free time, and how they spend their disposable income. This gives marketers a chance for market segmentation strategies. Market segmentation is the selection of groups of people who will be most receptive to a product. This is done using both Demographics (variables such as age, sex, race, income, occupation, education, household status, and geographical location); and Psychographics (variables such as activities, interests, opinions, product-use patterns, product benefits, and the topic of this research paper lifestyles).
Once a business has successfully completed segmentation based on the market into various groups the targets will be chosen. As we all know no one unique strategy will be able to appeal to all consumer segments therefore being able to come up with different strategies for specific targets are a vital aspect of marketing.
Barry, J., & Weinstein, A. (2009). Business psychographics revisited: from segmentation theory to successful marketing practice. Journal Of Marketing Management, 25(3/4), 315-340.