Marketing Strategies of Woolworths: Target Market, Segmentation, and Consumer Behavior

Running Head: MKTG 0
Introduction of marketing

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Introduction
Woolworths supermarket is a retail chain, which delivers high-quality products at a
very effective rate. It is the second biggest retail chain across Australia and New Zealand and
it is registered on Australia Stock Exchange. The organization is situated in Bella Vista in
New South Wales, Australia in 1924. The mission statement of the organization is to serve
quality and value to each territory and state of the nation. The high-quality products, which
are offered by the organization, are much differentiated into clothing, homeware, food, and
financial services maintain their own supply chain network. Woolworths deal with the
extensive range of household products, which they had begun as the fresh food suppliers as
their main motto is to treat the customers on the highest priority (Methner, Hamann &
Nilsson, 2015). In the following, an effort has been made to discuss the marketing strategies
of Woolworths involving their target market strategy, segmentation, and the concept of
consumer behaviour in price and promotion mix.
Marketing strategy
The primary and secondary target market
Woolworths is the biggest developing supermarkets in Australia and New Zealand is a
dominant market for the growth and development of a supermarket. A target industry analysis
of the organization has been shown:
 Socio-economic- It is stated that Australia is a technologically advanced country in
which the standard of living individual is high. The administration delivers a full
commitment to the individuals living in Australia. The goods sold at Woolworths are
targeted at the higher section of the society. The economic situation in Australia is
profitable for the development of the supermarket.
 Psychographic- It is stated that Australia standard of living is high so that their
disposable income is also high. The increasing development of the supermarket has
been expected because of the high buying power of the customers.
 Consumer purchasing behaviour-It is stated that customers in Australia are spending
effectively due to the post international financial crisis. In Australia, shopping has
become an effective and needful method (Govender, 2017).
The Woolworths target market involves high-income earners, as the standard of living
of customers has to face the high cost of the products. It focusses on the environmental and

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social development of the people of Australia. Their strategy is to increase its market
competitiveness in the future and diversify its range of products to customers. The target
market main objective is to induce and retain people with the best deals offered. They believe
that it is significant to acquire the product to a varied customer with respect to attain
competitive advantage. Their main approach is to target the market through mass
customization of the product, which is needed to enhance the association with the consumers
by developing marketing strategies. It is stated that around 74% of the people in Australia
purchase homeware products or other items from the supermarket. Woolworths is the major
supermarket choice for people residing in Australia (das Nair, 2018).
Woolworths main target has been the homeware segment of the retail market, which
is deliberated by increasing purchasing power parity. It has taken place in respect of sales
engagement managed by homeware products. The Woolworths of the Australian retail market
(Bentinck, 2018) has majorly controlled the market portion of the retailing business.
Segmentation
Segmentation divides the marketing into various diverse sections depend upon several
criteria comprising of socio-economic features, product innovative and demographical
features between others. Woolworths divides the segment into demographic segmentation,
which is differentiated among age, gender, the income level, and education level of the
consumer. It is stated that gender plays a significant part in the development of the various
retailing products and services, which is particularly designed to cater to a particular category
(Sultan, Wong & Sigala, 2018).
It is stated that segmentation of retailing product depends upon the age levels is a
significant policy for avoiding of inventory obsolescence. The people with below age group
of 5 are delivered with big sets of cerelac and baby food products that are followed by age-
group of 6-17 years. Then, they are delivering to above 55 years of age group with catering to
the requirement of depending upon their needs and preferences. In addition, a segment of
markets in association with the income level of the consumer, this, in turn, provided the
diverse combination of initiative in the manufacturing and production of products. This
results from the aspect that increasing purchasing parity of customers leads to maintain the
development rate of a specific good (Bailey, 2016).
The concept of consumer behaviour used in store layout