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Marketing Segmentation: Targeting Strategy

By rukan14 Aug 05, 2014 1355 Words
Marketing Segmentation, Targeting Strategy and Positioning of Greggs Plc Marketing segmentation, targeting strategy and positioning of Greggs PLC * Table of Contents
* Introduction 1
Segmentation analysis 1
Benefits Sought - Healthy food 1
Lifestyle 1
Demographic and Geodemographic 1
Target marketing strategy analysis 2
Price 2
Promotion 2
Positioning Analysis 2
Competitiveness 2
Clarity 3
* Conclusion 3
* References 4
* Appendices 5
Introduction :
In these days the business environment is in high competition, due to that it is essentially important for a company to have knowledge and recognizing their marketplace (Key Note, Oct. 2012). This report to analyze the marketing segmentation, targeting strategy and positioning of Greggs PLC in the UK sandwich shop market. 1 Segmentation analysis:

Marketing segmentation is an important way to know and understand the needs and attributes of the customers and fulfill it (Jobber, 2010). The author has used Jobber approach by covering one keys from behavioural segmentation (Benefits sought in Healthy food and price), one key from Psychographic segmentation (Lifestyle) and a combine of two from Profile segmentation (Demographic and Geodemographic). 1.1 Benefits Sought - Healthy food :

Many people nowadays are more concern about their health. They normally look at the list of content and check how many a food contains of calories, fat and if there a harmful content to be avoid. Therefore, Greggs has recruited team in every food type trying to take away the access fat and salt while keeping the delicious taste as it is. They also conduct breakfast which is a healthful breakfast for children (Marketing Week, 2012). Moreover, the website of the company shows nutritional information to make the costumers choose their healthy lifestyle (Greggs, 14 March 2012). 1.2 Lifestyle :

These days and because of the lifestyle which shows how busy the people are, they prefer to eat on-the-go. Consumers prefer to eat sandwiches in fast-food industry which is an advantage for the sandwich shops (Key Note, 2012). Therefore, Greggs keeping on expanding in this field by identifying it as food on-the-go (Mintel, 2012). The idea of combining quality food with affordable price leads to target various social classes. In addition, locating the shops in high streets is a significant advantage where all social classes are visiting. Opening on the Motorway was one of greggs aim to reach to on the move customers. They started by allowing Moto (a third-party) to promote their products(Marketing Week, 2012). Most of these customers spend most of their time in travel as a lifestyle. In addition the operators who are working in the service station are seeking for a recognizable name with reasonable price(Market watch, 2009). 1.3 Demographic and Geodemographic :

The CEO stated, the company takes in to their consideration while they are locating a shop, they consider almost all the ages, the genders and profession from lawyers to mason which will give a variation in choice. Greggs try to understand the customers choices and requests by using the facebook (Marketing Week, 2012). The social network such as Facebook and Twitter are one of the best ways to gather customer feedback and to create loyalty. Moreover, responding to a 12 years child who requested to open a Greggs shop in his area and give him the honour to cut the ribbon (Marketing Week, 2012). 1 Target marketing strategy analysis :

Jobber (2010, p281) has divided the target marketing strategy into four types : (undifferentiated marketing, differentiated marketing, focused marketing and customized marketing). Greggs has implemented the differentiated target marketing strategy by using several marketing mixes which satisfy their requirement. 2.4 Price :

The price is a main factor for a profitable organization to resist in a competitive environment. Especially in food industry in a society conscious of price with an advantage of different kind of substitutes. The CEO of Greggs Ken McMeikan stated that one of the basic principle of the company is not taking high margin (see appendix 1) by selling affordable tasty food (Marketing Week, 2012). The price of buying a coffee is cheaper than the coffee shops and a breakfast starts from £1.29 for a bacon rolls and 99p for a porridge, which is a very competitive price (Mintel, 2012). 2.5 Promotion :

Greggs uses many different promotional tools direct and indirect to convince the consumers with their products. One of the direct powerful tools is the social network (Facebook) where the chief executive checks the page several time a day to be close to the customers and understand their needs by collecting their feedback. As a result, the company lunched hot sandwiches and 10% of their shops provided with seating. This made the company gain £4m to reach in 12 months to 02/11/2011 to pre-tax profit of £53m. Never the less, it is one of the key factor to promote the products and create customer loyalty especially when their likes on facebook reach to 360,000 and a details of over 100,000 customers (Marketing Week, 2012). However, responding to customers request is not an easy matter especially when they continuously telling and the company cannot do something about it which will turn into negative point. Where the people is the company must be present. Out of this phrase, the company introduced mobile app which currently provides the customers with the menu, the location of nearest store and links to Facebook and Twitter (Marketing Week, 2012). It is one of the advance tools to reach to customers and promote your product especially where the smart phones are spreading ever where with all the generations. In addition to facebook and mobile app, Greggs used campaigns in different occasions, some YouTube illustrations and the regular advertisements in media. 2 Positioning Analysis :

3.6 Competitiveness :
Greggs serves a delicious food in a competitive price and gaining low margin (see appendix 1). This is one of the basic principle of Greggs. That did not change even during the recession where people became more sensitive to price which gave more advantage to them because the consumer will go for the lower price. This differential advantage made the company increasing their sales and opening new outlets. Wide range of products and customer feedback, to change product or add service, by using the social network is another differential advantage (Marketing Week, 2012). The number of outlet is reaching to 1600 in the UK, 200 more than Subway the traditional competitor (Key Note, 2012), is another advantage. 3.7 Clarity :

It is clear that Greggs is spread every ware in the UK with a high efficiency in distributing the products from the bakery to 1600 retail shops. That is way their strap line is “The home of fresh baking”(Greggs website, 2012). The strap line is obvious in their website, advertisements and signs. In addition, raising funds to the local charities is a clear message from Greggs to take part in supporting the community (Key Note, 2012). These participations enhanced Greggs status in society and increase their fans, which in turn raised their sales to reach in 2011 to £ 701m (see appendix 1). * Conclusion :

In a competitive market it is essential to know who is your costumer, what are their needs and how to meet their needs. In addition, it is necessary to know who are your competitors and how you are different from them. Greggs has a good knowledge and understanding of their marketplace. As a result, Greggs has the highest number of outlets in the UK. * References :

EBSCOhost( 2009). Greggs: offering its services on the forecourt. MarketWatch, October, p. p4. Greggs PLC (2012). [Online].
Greggs (2012). PRELIMINARY RESULTS FOR THE 52 WEEKS ENDED DECEMBER 2011. [Online] Available at: [Accessed 22 11 2012].

HANDLEY, L. (2012). Greggs finds ingredient for growth on facebook. Marketing Week, , pp. 15-18. Available at: Jobber, D. (2010). Market segmentation and positioning. In: Principles and practice of Marketing. Sixth Edition ed. s.l.:s.n., p. 262. Key note, (2012). Fast-Food & Home-Delivery Outlets. [Online] Available at: [Accessed 09 11 2012].

Mintel, March (2012). The Retailing of Food and Drink - UK - March 2012 - Greggs. [Online] Available at: [Accessed 09 11 2012].
* Appendixes :
Appendix 1:
The source Mintel (March 2012). The Retailing of Food and Drink – UK The source Mintel (March 2012). The Retailing of Food and Drink - UK

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