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.
Second, marketing Objective is to promote our products to children and their parents as tasty, yet heart-healthy, to fit the needs of each of the two defined target segments. Expand product line to fit the changing needs of the 13-18 year old consumers (Camenzind and Umscheid, 2016).
The company has established good relationships with most of its customers which has assisted it to create high level of brand and customer loyalty
This allows them to purchase high volume for a lower cost. Bringing over 20,000 products into one convenient location and with over 450 brands they provide a large selection.
Segmentation variables can be classified into four major classes; geographic, demographic, psychographic and behavioural. The use of these categories either individually or in combination assists companies to identify and establish market segments which is relevant to the product or service they are offering. This in turn helps these organisations to evaluate the relevant segments to choose the pertinent target market.
Many factors should be addressed when defining a target market. These factors include market segmentation, product life cycle, and the four "P's" that make the marketing mix. Market segmentation is the process of dividing a total market into market groups consisting of people who have relatively similar product wants and needs. There are four major segmentation variables: geographic, demographic, psychographic, and behavioral. Geographic segmentation includes world region, country region, city, density, or climate. Demographic segmentation can consist of age, gender, income, occupation, education, race, religion, or nationality. Social class, lifestyle, and personality fall into the psychographic segment. The behavioral segment divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product (Bethel, 2007). Once the market segment is identified, that market can be targeted.
The key issues facing the client are that; firstly; the business is focusing all of its energy onto the youth market and not attracting business and sales from the older demographic that in years to come will be a massive market, which is as yet untapped. This may be due to the fact that one of the client's main aim is to "help provide children with healthier food" (GMID 2007). Secondly; the client has not fully taken into account the changing lifestyles of people and their demands, emerging markets within the health drinks market such as health snacks have not been considered by the client and must be if they wish to expand their business and move away from being known as a one product business.
Terrell, E. (n.d.). Market Segmentation. (Business Reference Services, Library of Congress). Retrieved April 6, 2014, from http://www.loc.gov/rr/business/marketing/
They follow a best-of-breed approach where they purchase separate packages that offer closer to optimal functionality instead of...
T., Kraak, V. I., 2005, p.153). The book will be used in the sections where food industry and advertising could change their marketing toward healthy choices to help reducing and preventing
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).
Focusing on the well being of the customers should be the main focus of any major company, especially fast food companies. By reducing the amount of unhealthy choices for children and replacing them with nutritional foods, the nation’s youth will benefit.
Demographic segmentation- the type of segmentation used by the marketers is by classifying the consumers into different groups as per their age, religion or gender. Lexus models such as the IS models is ...
Thirdly, the company is committed to delivering superior quality of products and services. It earned a reputation of a convenient and reliable brand that offers the lowest prices, one of the fastest and lowest shipping, widest selection of goods, and many additional features with its services.
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.
McDonalds also play a role especially into the goods being safe to use and being very reliable with provided instructions. This will benefit the customer's safety and hoping to be very reliable during the customer's use because its helps the business to increase it sales by keeping the existing customers and attracting new ones.