Marketing Segmentation: Tesco's Marketing

Plan 1

4. Market segmentation is splitting a market into sub groups of people with common needs or preferences who are likely to react or purchase in the same way. Whilst you could argue that every customer is different, in fact you can usually put customers into groups which have something in common - for example age, social class, spending power, sex or buying attitudes (CIM). The product which will be discussed in the marketing mix plan is Hudl2 8.3" 16GB Wi-Fi Tablet - Slate Black. The two different segments are teenagers and households. (http://www.tesco.com/direct/hudl2-8-wi-fi-tablet/). Tesco’s market research shows that the Hudl Tablet is more used by teenagers and household families as we can see in the following link that customers

Psychographic segmentation is a more difficult area to define as it involves intangible variables such as the beliefs, attitudes and opinions of the potential customer Brassington, F & Pettit, S (1997). Plummer (1974) was an early exponent of lifestyle segmentation, breaking it down into four categories: activities, interests, opinions and demographics. The activities category includes all the things people do in their course of lives, for example shopping and holidays. This will allow Tesco to market their product at teenagers and households as they are often going on holiday and will use the product everyday Brassington, F & Pettit, S (1997). Interest refers to what is important to the consumer and where their priorities lie. For example for teenagers it would be connecting on Facebook using the Hudl Tablet Brassington, F & Pettit, S (1997). Opinions category involves other influences on society for example education and business. This product would be ideal for teenagers as they can use applications to help them learn and revise a certain subject Brassington, F & Pettit, S (1997). Demographic category includes the different elements, such as age, income and

Brassington, F & Pettit, S (1997). Tesco is positioned as a high quality exclusive supermarket. In order to reinforce this positioning with its target market, Tesco make sure that its product ranges it staff expertise, its displays and overall store ambience are of equally high quality Brassington, F & Pettit, S (1997). Positioning might have to be adjusted for many reasons as both the product and its market mature. Developing technology, evolving competition, changing customer needs and wants all mean that products have to be constantly appraised and reviewed Brassington, F & Pettit, S (1997). Defining the lifestyle of the consumer allows marketers to sell the product not on superficial, functional features, but on benefits that can be seen to enhance that lifestyle on a much more emotional level Brassington, F & Pettit, S (1997). Marketing overview consists of a detailed marketing map showing key decision making and segments described, Malcolm McDonald (2007). Malcolm McDonald (2007) has come up with four steps in his marketing plan to achieve higher profitable growth. The process can be seen in Appendix V. Essentially this entails drawing a map of the flows of goods and services from producers through to end use, Malcolm McDonald (2007). An example of this is shown in Appendix W, which shows four major types of junctions from suppliers through to end use. Where percentages and volumes or values