3. How did you segment the larger market? Why did you choose to target the customers that you chose? How will you position (X-axis, Y-axis) your market offering to differentiate yourself from competitors and create demand?
“Look Good, Pay Less”
Market segmentation variables include geographic, demographic, psychographic and behavioral segmentation. Geographically, there is no need to segment Singapore’s market, unlike its other geographic locations like the UK, due to our small size. Therefore, this point is moot as one or two sufficiently large and separate stores (so not to cannibalize sales) should be large enough to capture the market geographically.
Primark’s main segmentation of Singapore will be demographic segmentation. Its products are largely aimed at the lower to middle class portion of the population given the nature of Primark’s market offering – cheap, quality and fast changing trendy clothing, which will be covered later on. Primark also aims its products to the 15-35 age bracket of the population.
Primark also uses Customer Relationship Management (CRM) software to analyze consumer knowledge, attitude, use and response to its product and therefore also segments its customers behaviorally. Primark’s marketing offering of cheap, good quality products attracts both regular and occasion customers, and some first-time and irregular buyers. With their intended market being lower- and middle-class consumers, it means that Primark also attracts heavier users of their products. Behaviorally, it has a problem segmenting its consumers by loyalty status. With its price differential playing a big part in its attractiveness to its consumers, its consumers are relatively variable due to a simultaneous shift in loyalty status with a shift in income. Consumers on a shift from middle to upper-middle or upper class might shift loyalty to higher-end brands in order to define their lifestyle status.
Primark’s market segmentation result is hence...
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