Segmentation and Tesco

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Segmentation and TESCO Case:

Segmentation is essentially the identification of subsets of buyers within a market who share similar needs and who demonstrate similar buyer behavior Using segmentation analysis helped Tesco PLC, Britain's largest retailer stores to decide on their future marketing strategy and to appraise their competitive strengths Tesco realized the requirements for effective segmentation and that it must be Measurable, accessible, Differentiable, Substantial and Actionable To measure the size, purchasing power and characteristics of each segment Tesco used Club card program, giving cardholders discounts in exchange for their name, address and other personal information and optional questions about the size of their household, the ages of their children and dietary preferences they used this data to gain customer feedback which allowed Tesco to do further study on consumer segmentation on their purchasing behavior resulting from their lifestyle this make The Differentiability is very essential for an effective segmentation so TESCO offered different Benefits to the same Club card program is depending on demo & psychographic profile of each segment For the segmentation To be Sustainable TESCO target was homogeneous and large so it was always profitable enough to serve By analyzing the data that club card generates Tesco was able to group the customers into segments according to their similar needs and benefits those are examples of grouping the customers keyed to their buying profile in Tesco's database TESCO concentrated on reaching the segment by all possible means as the Accessibility of segment is very essential in segmentation, and every program used was attractive and served the segment to make the segmentation actionable and here are examples of segmentation used by TESCO: -Using demographic data mixed by behavioral segmentation Tesco identified the segment of customers who buy diapers for the first time, and the analysis showed...
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