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Alvin Defense


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retail market segmentation

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Alvin Defense

  1. 1. <ul><li>Whoops! </li></ul><ul><li>( retail store )‏ </li></ul><ul><li>Market Segmentation </li></ul><ul><li>BY: </li></ul><ul><li>Albin Anabieza </li></ul><ul><li>Loida Elon </li></ul><ul><li>Rizalyn Gonao </li></ul>
  2. 2. 1.1 Objective of the study The main concern of this study is to identify the target market of the company, their competitive advantage over their competitors, and the customer behavior in buying the products in their store. 1.2 Company Profile Owned by Mr. Andrei Yu 8 yrs in Business 10 retail stores in the Philippines SM Manila Glorietta 2 SM Megamall Alimall SM Fairview Festival Supermall SM Cebu Eastwood City Walk 2 Robinson’s Place Sta. Lucia East Grand Mall Exporter in Japan, Thailand and Bangkok Sister company of Reborn Offer credit for card holders
  3. 3. II. Retail Format <ul><li>2.1 Retail Mix </li></ul><ul><li>Customer Service Low </li></ul><ul><li>The retail store has a low customer service, although the store has three sales people they are not motivated to perform their work. We noticed that all of the sales people are men, and we think that they are not vocal in promoting the product of the store. </li></ul>
  4. 4. Store Design High Whoops retail store has a high store design and display, even if it is a small store compared to the other stores.
  6. 6. <ul><li>Advertising and Promotion Low </li></ul><ul><li>They do not focus on the advertisement using media in the form of television, and even through giving off flyers or leaflets and they do not have fosters inside and outside the mall. </li></ul><ul><li>Location High </li></ul><ul><li>In terms of their location it is in a high level, because they are located at the second floor between the just g retail store and heartstrings store in front of the Sta. Lucia Department Store. </li></ul>
  7. 7. <ul><li>Merchandise Assortment Low </li></ul><ul><li>The retail store “Whoops!” is low in the assortment of the merchandise, because the assortment of the store is limited. We also noticed that the store do not even have SKU (Stock Keeping Unit) or Stock Room. </li></ul><ul><li>Pricing High </li></ul><ul><li>Whoops! Retail store has high in terms of pricing on their products or items that they have been selling, but despite of the high price of their merchandise there are a lot of customers who patronize their product. </li></ul><ul><ul><li>Pants P1500 – P2500 </li></ul></ul><ul><ul><li>Shirts/Blouses P700 - P1500 </li></ul></ul>
  8. 8. III. Market Segment <ul><li>3.1 Basis for Market Segment </li></ul><ul><li>Demographic Segment </li></ul><ul><li>Age 20 – 40 yrs old </li></ul><ul><li>Gender Male and Female </li></ul><ul><li>Family life cycle Single, married </li></ul><ul><li>Income 10,000 - up a month </li></ul><ul><li>Occupation Professional; manager, official and proprietor </li></ul>
  9. 9. Geographic <ul><li>Whoops retail store has a good location that is surrounded by a large number of consumers. Consumers that came from the urban and sub-urban place who near from the Sta. Lucia Mall. </li></ul><ul><li>These are sample cities that were people came from and its total population that is possible costumer of whoops store. </li></ul>
  10. 10. Marikina City 424, 610 San Mateo 79, 489 Antipolo City 235, 921 Cainta 124, 628 Montalban/ Rodriguez 96, 145 Pasig City 265, 439
  11. 11. Estimated Population by Age Group and by Sex Marikina City The above tabulation shows the no. of population of male and female aged 20 -40 yrs old of Marikina City and it shows that the male and female total percentage is 37.7% of the total population. 7% 37.7% 3.4% 17.5% 16,716 86,168 3.6% 20.2% 17,607 95,436 35 – 39 total 8.6% 4.2% 20,716 4.4% 21,436 30 - 34 10% 4.7% 23,074 5.3% 26,028 25 - 49 12.1% 5.2% 25,662 6.9% 30,365 20 -24 Total percentage (male and female)‏ Percentage Male Percentage Female Age
  12. 12. Estimated Population by Age Group and by Sex Pasig City The above tabulation show the no. of population of male and female aged 20-40 yrs old of Pasig City and it shows that the male and female total is 37.6% of the total population. 7.2% 37.6% 3.6% 18.1% 18,063 91,160 3.6% 19.5% 18,395 98,678 35 – 39 total 9% 4.4% 22,351 4.6% 23,232 30 - 34 10.4% 5% 25,124 5.4% 27,306 25 - 49 11% 5.1% 25,622 5.9% 29,745 20 -24 Total percentage (male and female)‏ Percentage Male Percentage Female Age
  13. 13. Psychographic Segment <ul><li>Social Class Class A and Class B </li></ul><ul><li>Lifestyle Recent </li></ul><ul><li>Personality Submissive detached </li></ul>
  14. 14. Need Segment <ul><li>The retail store that we choose, we could say that they are in a single component segment. The retailer focused only on the different assortments of clothes like polo, printed shirt, blouse, sleeveless and jeans. Their market segment is for Generation X which is ranging the age from 20 – 36 years old up to the Baby Boomer's which is 37 – 45 years old. Even if the company has many competitors that build its own name in the retail store industry, the store still exists. It has its own uniqueness compared to the other retail stores. Retailer assures that the customer’s needs and wants are answered through the means of the quality, unique design, good texture of the cloth like its smoothness and comfort feeling when wearing; the availability of the size and colors of the product. The store must also make sure that they have a plenty of stocks, for the convenience of the customers. </li></ul>
  15. 15. Behavioral Segment <ul><li>Retail store “whoops” tend to earn the store loyalty in their customers, even though this retail store has a higher price in terms of its product or item that they have been selling. Only at about in Class A and Class B can afford to buy their product. The retailer gives back the loyalty of their customers through offering a “VIP card”, most especially their liable respected customers. Some customers do not at the price of the product but in the quality and accessibility of the brand. </li></ul>
  16. 16. 3.2 Buying Decision <ul><li>Based on our study about the retail store “whoops”, we have come up to determine all of the types of customer decision-making decision. First, is the extended problem solving, when were in the store we noticed a couple who buy a jeans and the person who decide to buy was the wife, which became the initiator. But the buyer was the husband who will also be the user and the decider to buy the product, through the help of the initiator, which is the wife. The buying decision of the couple may somehow complicated as it seem, but in the end the one who really decide to bought the product was the initiator. Second, in the limited problem solving the initiator rely on her personal knowledge than on the external information of the product. Third, the couple has a store loyalty, because after fitting the jeans the couple decided to buy right away the product without any hesitations. </li></ul>
  17. 17. 3.3 Buying Decision Process <ul><li>3.3.1 Need Recognition </li></ul><ul><li>3.3.2 Information Search </li></ul><ul><li>3.3.3 Evaluation of Alternatives </li></ul><ul><li>3.3.4 Choice of Alternatives </li></ul><ul><li>3.3.5 Purchasing the Merchandise </li></ul><ul><li>3.3.6 Post purchase Evaluation </li></ul>
  18. 18. IV. Retail Market Strategy <ul><li>4.1 Retail market </li></ul><ul><li>Whoops retail store is focusing in fashionable apparel targeting its market both men and women aged 20-40 yrs old and moderately fashion-forward oriented people. </li></ul><ul><li>4.2 Sustainable Competitive Advantage </li></ul><ul><li>Whoops Retail store build loyalty to its customer by offering unique merchandise because the brand of their product is only available in the store and they also offer credit to the customer. </li></ul><ul><li>4.3 Growth Strategies </li></ul><ul><li>Whoops Company use vertical integration by manufacturing their products and distribute it to their store to sell it to the customer. They are also involve exporting products to the other country like Japan, Thailand and Bangkok. </li></ul>
  19. 19. V. Recommendation <ul><li>Whoops retail store is stable in clothing industry because they are operating almost 8 years in the market and remain exist but they should minimize their cost of operation so that they can lower their price because they are far reasonable in terms of pricing over their competitors. The customer needs a good quality product and good price to satisfy their needs that is why they should consider this factor. Their merchandise assortments are low and it is better to increase their assortment and add accessories so that the customer will not go to other store to find another product they need. </li></ul>