Report of the Segmentation, Targeting and Positioning of Supermarket Essay Example

social class, and lifestyle in social environment. The second step is developing the market segment profile by finding the similarities and differences among customers and divides each of them into separate group.In target market, there are three sections within selection process. First of all, market segment; secondly is market targeting, and the last is market positioning Market segment is ‘some individuals or group or organizations with one or more similar characteristics that cause them to have similar products needs’ (Pride et al. 2007). Market targeting is ‘a detailed examination and evaluation of the range of possible market segments and the degree to which the company can satisfy the entire society, beyond their expectations’ (Pride et al. 007)

The market targeting has three strategies. The first strategy is ‘undifferentiated strategy, the second strategy is concentrated strategy, and the last strategy is differentiated strategy’ (Pride et al. 2007). Market Positioning is ‘what the difference or exceptional of the product the company offers and how the company is different than others’ (Boone & Kurtz 2006 P. 309) The purpose of market positioning is ‘making the customers remember the company’s either in product or brand and also the advantage to compare with other competitors’ (Boone & Kurtz 2006 p. 00).

2. Discussion

2. 1. Market Segmentation

Market segmentation is ‘division of the total market into smaller relatively homogeneous groups’ (Boone & Kurtz 2006). Alpha Century Mart focus on demographic variable, and psychographic variable.

Demographic variable is division of an overall market into homogeneous groups based on variables, such as income, occupation, and household size. Psychographic variable is division of a population into groups that have similar psychological characteristics, values, and lifestyle (Boone & Kurtz

2006). In demographic variable, the company concern to the incomes and occupations of the person. The standard income of household in Malaysia is increasing to higher level. If someone has a better job so they would get more income as they have earned. Therefore, in other word many people are buying the products with their income, not everybody can waste their money for luxurious product and branded.

In psychological variables, nowadays, people are eager to have the most famous brand to be possessed it is caused by the lifestyle.Lifestyles refers to a person way of living, it describes how individual operates on a daily basis. Consumer’s lifestyles are composites of their individual psychological profiles, including their needs, motives, perceptions, and attitudes. Lifestyle also bears the mark of many other influences, such as family, job, social activities, and culture’(Boone & Kurtz 2006 p 302). ‘Marketing theory indicates that customers demonstrate heterogeneity in their product and service requirements and buying behavior’ (Johne, F. A,. 1994).

2. 2. Market Targeting

Having identified market segments, marketers must decide which, if any, they intend to enter. A marketing program which covers all elements of the marketing mix can and then be designed to suit the particular requirements of those segments targeted’ (Dibb, S. , & Simkin, L. ,1991) The market is targeting onto people with the highly income, like famous product, branded product, and high quality and whom have less income, who also needs large quantity products within cheaper price. The company has two target markets. The first target is prominently high class people.

It is so obvious that those people like to buy branded and high quality product. These products were created especially

for those people who are precisely selective within their purchasing matters that match with their high-income. The second target is middle class people. Middle class people usually buy local product with normal price that suitable with their wages. They usually come and buy product regularly in short time. Sometimes they buy the product for a long period of time. There are two main competitors in supermarket business. They are Jusco and Giant.The company is using differentiated strategy.

The differentiated strategy is being used because there are two target markets those are potentially to be prominent buyers of the products. Differentiated strategy is a suitable strategy while the company has more than just target markets, and as well different products to be sold to different customers. Differentiated strategy is a strategy that the company targets two or more segments by creating marketing mix for every segment (Doole & Lowe 2005).

2. 3. Market Positioning

‘Companies must decide precisely how and where in targeted segments to aim a product or products brand or brands. The needs and wants of targeted customers must be translated into a tangible mix of product, price, promotion and distribution. The consumers' view of the product and where it is positioned relative to the competition is particularly critical. After all, the paying public does not always perceive a product or brand in the way the manufacturer would like’ (Dibb, S. , ;amp; Simkin, L. 1991, p. 7) The uniqueness of this convenience store is the customer will be able to get all the things that they might need instantly.

Because, this store has enough supply for the entire season. The differences between this store and the others

are, this store is filled with high quality products, both export and import qualities, and provides some friendly and helpful staffs for customers’ convenience. In every special day, such as Christmas, New Years, Hari Raya, Chinese New Year, this store is doing some special promotion, discounts and some shopping vouchers are available as well. The needs and wants of targeted customers must be translated into a tangible mix of product, price, promotion and distribution).

‘The consumers' view of the product and where it is positioned relative to the competition is particularly critical’ (Lin, F. C. , 2002). There are two main competitors in business supermarket. They are Jusco and Giant.

3. Conclusion

In conclusion, a company ought to the segmentation, targeting strategy, and positioning. Uniqueness is the most important is this company. Besides that, a company must understand how to manage the market.Therefore, the company can run with property. To open a supermarket, they must find out about the target market that they want to reach. They can use income, social class, family size, and lifestyle.

Then again, the company can more easily to run and to manage their market.

4. Recommendation

Before open a Supermarket, try to the research and find lots of information from the entire resources. The company must know what the customer needs and wants. In another words, the company ought to be understood that the business target and its performance have to be done necessarily.