Consumer Behavior Insights: A Marketing Campaign for Kmart Fairfield

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Added on  2023/04/22

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This presentation outlines a marketing campaign designed to address sales challenges at Kmart Fairfield, focusing on consumer behavior insights related to the local refugee population. The primary issue is the inability to sell luxury items due to the community's limited resources and focus on necessities. The campaign strategy involves shifting the product focus to essential goods, implementing humanitarian pricing policies like discounts and rebates, and relocating luxury items to higher-income areas. The target audience is identified as refugees aged 30-50 with limited income, emphasizing the need for affordable necessities. The proposed marketing mix includes adjusting product offerings, maintaining moderate pricing, and promoting through discounts, rebates, and community engagement activities. Success will be measured through increased awareness, customer feedback, and improved sales figures. The campaign aims to adapt Kmart's strategy to better serve the Fairfield community's needs and improve overall sales performance.
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CONSUMER
BEHAVIOR
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ISSUE @ KMART FAIRFIELD
The company is not being able to sell priced items.
Unsellable items include luxury items such as Electronics, beauty
products and jewellery.
While products such as necessities are sold off the above items fail to be
sold.
The issue can be understood by studying consumer behavior.
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REASON BEHIND SUCH
BEHAVIOR
Most people residing in the area are refugees
They have limited access to resources
Income of the consumers of the area fall under mid-low category.
Consumer of the area choose to spend on necessities rather than on
luxuries (Kriechbhaum & Kreuzbauer, 2006).
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OBJECTIVES
Spend higher amounts of money on refugees as that reportedly results in
better sales.
Promote humanitarian Sales policies such as discounts and rebates.
Shift the aim of the luxury items from the area to higher income localities.
Put emphasis on sale of necessities not on luxuries.
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TARGET IDENTIFICATION
The campaign will be targeted
towards the people of Fairfield who
are mostly refugees from other
countries.
People of the target group are
aged between 30-50.
Their annual income is not over
$200,000.
They prefer too spend on absolute
needs.
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IDEAL STRATEGY
The issues that result in the strategy of lack of sales has been already
mentioned. The most desirable strategy that can be taken to cope with the
situation is to shift the focus. Shifting the focus involves adaptation to more
humanitarian methods of pricing (Quester ,2007). The marketing mix
explain the strategy that the company is adopting:
Product
Place
Price
Promotion
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PRODUCT
Luxury products such as jewelry,
cosmetics and electronics will not
sell in the area.
The focus will be on the sale of
everyday essentials such as
groceries and home supplies.
Products should be appropriate for
the demographic segment of
people who are mostly middle
aged (Aslihan Nasir & Karakaya,
2014).
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PLACE
The place for carrying out the campaign would be Fairfield, New South
Wales, Australia. The Kmart outlet is the place that is subject to the
campaign. The luxury items should be however shifted to other branches.
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PRICE
The products to be stocked at the
Local Kmart should be priced
moderately.
The prices should not be high.
High prices would result in the
same outcome i.e. Zero sales.
Necessities are priced lower than
luxuries. This transition will ensure
that there is high stock turnover.
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PROMOTION
In order to ensure better sales
performance, the marketers should
ensure that promotion mix involves
elements that help catering to the
prevalent communities needs.
Promotion should involve:
Discounts
Rebates on purchase(cashback)
PR activities such as fairs, which will
further help in gaining the trust and
acknowledgement of the locals.
Newsletters
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SUCCESS OF THE
CAMPAIGN
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INCREASED AWARENESS OF
THE CHANGES
Through the promotional activities the
company aims to inform more potential and
existent customers about the introduction of
the promotions.
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