Answer to Question #239323 in Management for Sbahle

Question

Identify three criteria Woolworths could use for market segmentation. Justify

your choices.

Answer 1

Woolworths is the leading supermarket in Australia as it has the highest market share as compared to other supermarkets. It has an active market strategy that it leverages on to maintain its deep rooted market share in Australia. It has embraced market segmentation where by it has adopted three criteria that they have found fundamental in carrying out market segmentation. Woolworth has segmented their markets by the use of demographic, geographical and psychographic criteria in carrying out market segmentation.

Demographic

Under this criterion, Woolworth supermarket has divided its market based on age of customers, their gender, values they hold or the income level. Woolworths have targeted mostly people aged between 6 and 55 years as it aims to offer products that help them maintain and lead a healthy lifestyle. It has also covered customers who have higher levels of income and who prefer quality services and products over its price.

Geographical

Woolworth supermarket covers specific geographical location of the business since they have selected all regions of Australia and New Zealand as its target market It has more than 1000 stores in Australia only and approximately 200 stores in New Zealand.

Psychographic

Under this criterion, Woolworth targets people who as their lifestyle prefer goods of high quality over the prices of the goods as it has many competitors such as Coles that sell products at lower prices. However, with this criterion Woolworth supermarket has maintained its position among the existing customers.