Answer to Question #257360 in Management for Thembi Doda

Question

Identify three criteria Woolworths could use for market segmentation. Justify

your choices.

Answer 1

• Woolworths is Australia's premier supermarket, with the largest market share when compared to other supermarkets. It has an aggressive market strategy that it uses to preserve its strong market position in Australia. It has embraced market segmentation and has chosen three criteria that they have discovered to be essential in market segmentation. Woolworth has split its markets by using demographic, geographical, and psychographic parameters in market segmentation.
• Demographic. Woolworth supermarket has segmented its market depending on the age of its consumers, their gender, the values they espouse, or their economic level. Woolworths has primarily targeted persons aged 6 to 55, intending to provide items that would assist them in maintaining and leading a healthy lifestyle. It has also included people with higher income levels who value quality services and goods overpricing.
• Geographical. Woolworth supermarket covers a specific geographical area of the company since it has chosen all Australia and New Zealand areas as its target market. It only has over 1000 outlets in Australia and over 200 locations in New Zealand.