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Case study - Spinneys: a supermarket for everyone?
1. Topic: Spinneys: a
supermarket for everyone?
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2. Outline
• Introduction : Background information
• How diversity of population in Dubai can influence Spinney
marketing strategy?
• How people’s lifestyle influence on consumption behaviour in respect
to organic product?
• What is the most suitable lifestyle measurement and how it influence
Spinney’s market strategy?
• Conclusion
3. Background
• Spinneys is a supermarket chain in
the Middle East which begun as railway
provision merchants, and expanded to a
grocery firm importing British goods to
the Mandate Palestine.
• It is now owned by the United Arab
Emirates national and run more than 40
supermarkets all over the UAE.
• https://www.youtube.com/watch?v=LVKY
z0RTH7Y
4. Question 1
• Marketing managers are interested in population segments that
influence the consumption of their products.
5. Dubai Population
• Dubai’s population is estimated to grow an additional five per cent in
2014 from its current 2.2 million, according to the latest report from
Dubai Statistics Centre.
• The majority of people in Dubai are from Europe, Asia, India,
Pakistan, Bangladesh and more.
6.
7. Question 1
• Explain how the diversity of population in Dubai might influence Spinneys
marketing strategy.
• Gender
• Age Segments
• Ethinicity
• Income Level
8. Gender
• About 75 per cent of the residents in Dubai are men with the ratio of men to
women reported to be 313 males per 100 females.(GulfBusiness,2014).
• Men are more dominant, assertive, objective and
realistic while women are more affected by the
environment.
Therefore, this can affect the Spinney’s store and shelf
placement.
9. Age Segment
• This can influence Spinneys marketing
strategy when the difference age groups
have different needs and wants. Spinneys
marketers can provide variety products
available for specific age group.
10. How age segment influences Spinney’s product ?
• As the target market of Spinney is working-age,
they may not have time to cook.
Spinney also provides the delicatessen fresh deli
counters.
11. Ethnicity
• The majority of people in Dubai are
from Europe, Asia, India, Pakistan,
Bangladesh and more. Therefore,
Spinneys supermarket import fresh
ingredient and food around the world
even the halal food. As well as Spinney
supermarket sell the local products.
• A consumer’s national origin can be a
storing indicator of his or her
preferences for specific food.
12. Income
• According to the case study
mention that Spinneys is one of the
high-end supermarket. Most of the
customers have greatest buying
power.
• Spinneys supermarket offers the
high quality of food to persuade
potential clients and build the loyalty
trough current customers.
13. Question 2
As consumers’ lifestyles change, so do their
needs for goods and services. Select a product from
one of the departments from www.spinneys-
dubai.com and explain the influence of people’s
lifestyle on their consumption behaviour with respect
to the product you have chosen.
14. Organic Department
Organic food is the food produced using
environmental friendly farming methods where
synthetic pesticides and chemical fertilizers are not
allowed or can be used but under some restrictions
(soil-association, 2015).
It can be called a chemical-free product.
15. Lifestyle
• Lifestyle simply means “how a person lives” (Pascale Genevieve,
2014). It reflects an individual characteristics which have been shaped
from their learning and experiences throughout their life.
• Lifestyle is determined and influenced by values, social class, age,
culture, household lifestyle, and etc.
• Lifestyle often provides basic motivation or reasons for purchase, and
most people are rarely aware of the role of their lifestyle in their
purchase decision. Different lifestyles have different consumption
behaviour.
16. Influence on lifestyle and consumption
behaviour toward organic products
• values – lifestyle is based on values that people value for
themselves and what value they receive from products. It
can be determined by measuring what is important in life.
• Social class – the group people belong to can influence
how their lifestyle will be looked like.
17. • Age - different generations can have different
consumption behaviour.
• Culture – People from different cultures can have different
consumption behaviour, and this behaviour always
changes throughout time period.
Influence on lifestyle and consumption
behaviour toward organic products
18. Household lifecycle and consumption behaviour
• Household lifestyle – is usually influenced by individual
lifestyles of the household members.
- Such that the couple with no child may have different
lifestyle on consumption compared with those couples
with children.
19. Third Question
What is the most suitable life
measurement for Spinneys in UAE?
How will the findings influence aspects of
their marketing strategy?
20. Types of life measurements
1. VALS system
9 segments based on the attitudes towards particular social issue
2. Geo-demographic system
People with similar cultural backgrounds, resources and
perspectives tend to have the same response towards a particular
issue.
3. Roy Morgan system
10 segments based on individuals’ attitudes towards a wide range of
issues
21. Spinneys’s marketing strategy
“Value you can trust”
Deliver to customers a pleasant and satisfying shopping
experience
Deliver a WOW factor
Focus on the middle and upper class who are willing to
spend money on not only the product but also the services
22. Roy Morgan system
appeal to a wide range of issues
Young optimist
Socially aware
Something better
Visible achiever
Look at me
Conventional family life
Traditional family life
Real conversation
A fairer deal
Basic needs
23.
24. 1. Something better
5~6% of the population
Competitive and ambitious
Search for better things in life
Willing to expand budget
They wont be satisfied by common standard of service and will
search for the better that Spinney provides
25. 2. Visible achievers
15~20% of the population
Work for stimulation and financial rewards
Family-oriented
Seek for quality and value
Spinneys provides products with the best quality which can satisfied this types
of customers
26. 3. Look at me
10~12% of the population
High self-conscious
Care a lot about their image
Spend 100% of what they earn
Huge potential customers, they will spend a lot of money on products with the
best quality or can improve their lives.
27. Possible Changes
Focus more on these 3 groups
Marketing methods that value the quality and services
Marketing through various channels
Differentiate the brand from other brand as a higher class
of service
Appeal to the human emotions
28. Conclusion
• The diversity of the population in Dubai whether gender, age, ethnicity or
income influence the Spinney supermarket to sell many kinds of product. As
well as it leads to the supermarket for everyone.
• Lifestyle can be changed and transformed throughout period of time. It is
influenced by both internal and external factors, such as demographics and
culture.
• Using the Roy Morgan lifestyle measurement, Spinney can modify their
marketing strategy in order to appeal to its potential customers at the
maximum rate.
29. Reference
• Dubai Statistics Centre.(2013).Dubai population. Retrieved from
http://www.dsc.gov.ae/Publication/%D9%86%D8%B4%D8%B1%D8%A9%20%
D8%A7%D9%84%D8%B3%D9%83%D8%A7%D9%86%202013%20En.pdf
• Gulf Business.(2014). Dubai’s Population To Grow 5% .Retrieved from
http://gulfbusiness.com/2014/09/dubais-population-grow-5-2014/
• Soil-association. (2015). What is organic ?. Retrieved from
http://www.soilassociation.org/whatisorganic
• Pascale Genevieve, S. P. (2014). Consumer behaviour: implication for marketing strategy.
Australia: McGraw-Hill Education Pty Ltd.
• Youtube.(2010). Living in Dubai Feature: Spinneys . Retrieved from
https://www.youtube.com/watch?v=LVKYz0RTH7Y
Dubai is one of the seven emirates belonging to the country United Arab Emirates, UAE, in the Middle East. Over the course of a few decades it has transformed into a well developed region. The population of Dubai has been increases rapidly. There are two main reasons that effect increasing Dubai population.
First, The availability of various investment opportunities in Dubai which necessitate the daily movement of people from other emirates to manage their own businesses or work for others.
Secondly,The cheaper accommodation rates in neighboring emirates which lead public and private sectors employees in Dubai to inhabit in these neighboring emirates.
This bar chart shown the population
example
ใส่ตัวอย่างอาหารที่spinney นำเข้ามาขาย
As you can see there are currently a lots of organic food selling in many supermarkets. People nowadays seem to pay more attention to their own health and also care more about environment. Some people, they even are not buying products from those business that their products are harmful to environment.
So, actually lifestyle implicitly drive or pursue people mind when making purchase decision. There are always some reasons to support when people are buying something and these reasons are differed from each persons.
Now I will be talking about some of factors that can influence people’s lifestyle and their consumption behaviour.
values - Some people, they value their own health as an important thing in their life, so they choose to consume the organic products because they believe that it is safer and cleaner. Meanwhile, some people consume organic products because they just don’t like product that’s harmful to environment. Spinney supermarkets also focus on customers rather than competitors. They value their customers by providing high-quality and fresh product to customers.
Social class – it is general that lower class tend to buy less expensive things, while higher class can afford higher price products. In higher class, self-image is important; lots of rich people like to show off and want to be recognized or seen by others. That is the way their lifestyle is. So, usually, only middle to high class people will buy organic product because they can afford and maybe they just want to show others that they are not supporting those products that are harmful to environment.
Age - Generation X or those people who were born earlier, they are likely to eat healthy and clean food rather than junk food. They usually have more leisure time than those young people. So they can buy organic products and cook at home. In contrast, young people are still busy in making money and don’t have much time. They While, younger people or teenagers, they still don’t eat much of healthy food because they are young and their body is still very strong. That is why old people seem to consume more of organic food than young people.
Culture – For example, nowadays culture has been changing significantly, now people tend to care more about their own health and this health awareness changes their eating habits. They start to eat more natural and organic food. They also care more about environment and welfare concern as well as sustainability of product. However at some points in the future, these habits and behaviours can be changed again.
Their children can influence their parents’ behaviour and even can change parent’s lifestyle. It is very common that when we have someone to take care of or have more responsibilities, we may have to change our lifestyle because of them. These also can affect our behaviour. For example, lecturer, I’m pretty sure that your lifestyle has been changed since you got married and had your children because you got more responsibilities and got someone you have to take care of. Compare to when you were single, you earned money and just spent on yourself bought whatever you want, eat whatever you want. I guess you quit smoking because you think that you still have people to look after and you can’t die and left them now. So you start to care more about yourself. It is clear that people tend to care about themselves and their health because they got influences from people they lives with. As your wife and your daughter definitely don’t want anything happens to you. They really care your health because they love you. That is why people who got family seem to eat more cleaner food and concern more about not only their own health but also their family. So, they tend to consume more organic food than those people who is single or live alone. Because those who live alone don’t have to care much about other people. I would say lifestyle can be transformed and changeable especially when people reach another stage of their life. There must be some important things motivate them to change their lifestyle.