Answer To: ASSIGNMENT INSTRUCTIONSAssessment Group Presentation Assessment code: 011 Academic Year:...
Asif answered on Mar 01 2023
Student ID:
Module Title: Principles and Practices of Marketing
Module Code: MOD003507
Words Count: 3208
Table of Contents
Introduction 3
Brief Company Introduction: 3
Purpose of the Portfolio: 3
Segmentation, Targeting and Positioning Strategies of Waitrose 4
Segmentation Strategies of Waitrose: 4
Targeting Strategies of Waitrose: 6
Targeting Strategies for the Specific Segments: 8
Positioning Strategies of Waitrose: 9
Marketing Mix P’s of Waitrose 12
First P (i.e. Promotion): 12
Second P (i.e. Product): 21
Third P (i.e. Place): 22
Fourth P (i.e. People): 23
Metrics to Evaluate the Effectiveness of Marketing Efforts 24
Suggestions/Conclusion 25
References 26
Introduction
Brief Company Introduction:
Waitrose is one of the reputed, leading brand and most well-known of supermarket in the UK, originated in 1904 by Wallace Waite, Arthur Rose, and David Taylor as a Waite. Currently, it is owned by the John Lewis Partnership which sells groceries under the brand. The company has its head offices in Bracknell and Victoria, England. Waitrose is well known for its high quality products like fresh produce seafood, and meat as well as its wide selection of organic and locally sourced products. The supermarket also offers a variety of prepared foods, baked goods, and specialty items. Waitrose has a reputation for excellent customer service and is popular among shoppers who value quality and convenience. Waitrose has more than 332 retail outlets/shops across the Great Britain and Islands. The company also exports its products to more than 52 countries including the USA, Middle East, and Asia (Waitrose. 2023).
Figure 1: Annual revenue of Waitrose in the United Kingdom (UK) from 2009 to 2022
(Source: Statista.com, 2023).
The above statistic shows that in the end of financial year 2022, Waitrose generated a total revenues of 6.98 billion British pounds, a decrease on the last financial year (Statista.com, 2023).
Purpose of the Portfolio:
The main objective or goal of this portfolio is to analyse and evaluate the impact of marketing strategies like segmentation, targeting and promotion of Waitrose on its business performance. Moreover, this portfolio will analyse and discuss how the company uses and reflects the four Ps of marketing (product, price, place and promotion) in its marketing strategies like segmentation, targeting and positioning.
Segmentation, Targeting and Positioning Strategies of Waitrose
Segmentation Strategies of Waitrose:
According to the STP Model developed by Phillip Kotler, Waitrose uses several segmentation strategies to target its customer base.
Demographic Segmentation: According to the Generational Marketing Segmentation theory, Waitrose segments its customers based on demographic factors like age, income, and family size. For example, Waitrose has introduced its "Essential Waitrose" range to attract budget-conscious shoppers who may not typically shop at Waitrose. This range includes a variety of products at a more affordable price point, making it more accessible to customers with lower incomes (Kotler, Keller, Goodman, Brady, and Hansen, 2019).
· Geographic Segmentation: As per the ZIP Code marketing approach/model, Waitrose targets customers based on location. For example, For example, the supermarket has opened stores in affluent areas such as Kensington and Chelsea, where there is a higher concentration of high-income households. This allows Waitrose to offer a more exclusive shopping experience and cater to the specific needs and preferences of customers in that area (Kotler, and Armstrong, 2021).
· Behavioral Segmentation: Waitrose targets customers based on their buying behaviour, habits, patterns and traditions using customer lifetime value (CLV) theory. For example, the supermarket provides high-quality products at a lower price, which appeals to price-sensitive customers who prefer to shop for bargains. Therefore, the company targets price-sensitive customers who like to shop for deals. For example, the company offers regular discounts and promotions regular products which appeals to customers who save money on their grocery bills. For example, Waitrose offers personalized promotions to customers based on their past purchases. If a customer frequently buys organic produce, Waitrose might offer them promotions and discounts on other organic products (McDonald, and Dunbar, 2020).
· Psychographic Segmentation: For the psychographics, the company use AIO (Activities, Interests, and Opinions) framework/Model. Waitrose targets customers based on their lifestyle, values, personality, social status, activities, interests, opinions, and attitudes.
For example, Waitrose has introduced its "Waitrose Unpacked" initiative, which aims to reduce packaging waste and promote sustainability. This initiative appeals to customers who prioritize sustainability and are willing to pay a premium for environmentally-friendly products. The company is also offers a range of organic produce like fruits and vegetables, and environmentally friendly cleaning products (Chaffey, Ellis- Chadwick, 2019).
· Occasion-Based Segmentation: According to sought model, Waitrose targets customers based on specific occasions, like holidays, parties, Christmas and Easter, or seasonal events. The company offers special promotions and discounts on its various products/items like Christmas decorations, mince pies, and Easter eggs to appeal to customers during these periods. For example, the supermarket provides a range of festive foods and drinks during the Christmas period, including mince pies, Christmas puddings, and mulled wine. Moreover, Waitrose offers a range of personalized cakes for birthdays, weddings, and other special events, catering to customers' needs during these occasions (Berthon, and Ewing, 2019)
Targeting Strategies of Waitrose:
Targeting marketing strategy allows organisations to connect with specific groups of people or customers interested in the company's products or services.
· Value-Based Targeting: Waitrose targets customers who are willing to pay a premium for high-quality products and exceptional customer service. The company offers a range of own-brand products that are affordable, while still maintaining high quality. For example, Waitrose Essential range offers affordable products without compromising on quality, such as Waitrose Essential Cheddar Cheese.
· Convenience-Based Targeting: Waitrose targets busy customers who value convenience and time-saving options. The company offers a variety of delivery options, such as home delivery and click-and-collect, to make shopping more convenient for its customers. For example, Waitrose Rapid is a delivery service that promises to deliver products to customers' homes within two hours of placing the order (Kotler, and Armstrong, 2021).
· Innovation Based Targeting: aitrose targets customers who value innovation and new product offerings. The company regularly introduces new products and features to its stores and online platforms. For example, Waitrose recently introduced a range of plant-based meat alternatives, such as the "Fishless Fingers," to cater to the growing demand for plant-based products (McDonald, and Dunbar, 2020).
Figure 2: Fishless Fingers)
(Waitrose.com, 2023.)
· Premium Based Targeting: Waitrose targets affluent customers who are willing to pay a premium for high-quality products and a premium shopping experience. The company offers a range of premium products, such as luxury chocolates and wines that are not available in other supermarkets. For example, Waitrose Cellar offers a range of high-quality wines from around the world, including rare and exclusive bottles (Berthon, and Ewing,. 2019).
Figure 3: Waitrose Cellar)
(Waitrose.com, 2023.)
Targeting Strategies for the Specific Segments:
Waitrose targets a specific segment of customers who are primarily affluent and value high-quality products and a premium shopping experience. Within this segment, the company targets a range of sub-segments, such as families, females of a certain age group, and those with a passion for the environment (Kotler, and Keller, 2022).
· Families: Waitrose offers a range of products and services that cater to the needs of families, such as baby food, child-friendly snacks, and household essentials. The company also offers a range of family-friendly recipes and meal ideas on its website.
Figure 4: Family-friendly recipes
(Source: Waitrose.com, 2023)
· Females of a certain age group: Waitrose targets women who are primarily in the age group of 30 to 60 years old, who are interested in healthy eating and are willing to pay a premium for high-quality products. The company offers a range of healthy food options, such as gluten-free and organic products, that are popular among women in this age group (Karim, M, Huda, and Khan, 2022).
Figure 5: Healthy Eating Products of Waitrose
(Source: Waitrose.com, 2023.)
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