Marketing Practice XS4009, Portfolio Task 2: Research and STP Analysis

This report provides an analysis of market research techniques and the Segmentation, Targeting, and Positioning (STP) process, with a focus on a case study of Woolworths. The report explores both qualitative and quantitative market research methods, including personal interviews, focus groups, surveys, and online polls, and how these techniques are applied to existing customers, prospects, and target markets. Furthermore, the report delves into the STP process, examining how Woolworths segments its market based on demographic, psychographic, behavioral, and geographic factors, targets upper-middle-class and working-class populations using a differentiated targeting strategy, and positions itself through value-based positioning, offering quality products at affordable prices and a convenient shopping experience. The report references key academic sources to support its findings.

Marketing Practice XS4009

Table of Contents
Qualitative and quantitative market-research techniques................................................................3
Segmentation, Targeting and Positioning (STP).............................................................................3
REFERENCES................................................................................................................................5

Qualitative and quantitative market-research techniques
There are several qualitative and quantitative market research techniques and in order to
make their product fulfil customer requirements firms deploy different types of market research
techniques. Qualitative method involves collecting data in form of close observation and
interview whereas quantitative involves survey and polls for the purpose of collection of data for
market research. Woolworths is an chain of supermarket and this is why it caters requirement of
different customers and market research techniques adopted by Woolworths are-
Qualitative market research techniques
Personal Interview- This is one of the technique in which personal interviews with candidates
are done and this technique is applicable for existing customers.
Focus Group- This is one of the techniques in which people in a group share their opinion and
views in relation with a product or service. This can be applied for target market in which certain
user share how target market will react and respond to product or service of Woolworths
(Chandra and Shang, 2017).
Quantitative market-research techniques
Survey- Survey is one of the quantitative market-research techniques and in this Woolworths
can collect data from large population and is also very cost effective method of survey. This is
applicable for prospects of Woolworths.
Online polls- This is also a technique of quantitative research in which online polls are done by
Woolworths. This helps in understanding preference of customers and their taste and choice in
relation with different aspects of business. This is applicable for existing customers, target
markets and prospects of business (Dutta and Bhattacharya, 2018).
Segmentation, Targeting and Positioning (STP)
Segmentation, targeting and positioning is a marketing approach through which
organisations can create streamlined communication practices and also ensure that their practices
are appropriate for target market.
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Segmentation- Segmentation is concerned with a practice in which Woolworths identify basis
for segmentation and along with this important characteristics of all markets are determined.
Market segmentation is done on the basis of demographic, psychographic, behavioural and
geographic basis. Woolworths have selected all these basis and elements for segmentation
because it has wide range of offerings for different types of customers. In this customer needs
from each of the market is identified and determined (Saputra, 2020).
Targeting- This involves evaluating and selecting target segments and selection of the target
segments is done on the basis of determination and most valuable segment that can be effectively
served by Woolworths. Along with this, profitability by a selected segment is also an important
consideration for selection of segment that Woolworths can target. Woolworths have targeted
upper-middle class household and working class population. Targeting strategy adopted by
Woolworths is differentiated targeting strategy in which it has differentiated offering for
different target segments.
Positioning- Positioning is concerned with identification and determination of proposition for
each selected segment. In other words, this is concerned with image that Woolworths wants to
create in mind of its customers. Woolworths has adopted value based positioning in which it
offers good quality products at affordable prices and also offer convenient shopping experience
and offers customer focused services (Bigo, Raj and Situmeang, 2021).
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REFERENCES
Books and Journals
Bigo, C., Raj, A. and Situmeang, R.R., 2021. Segmentation, Targeting, Positioning (STP),
Communication and Price Strategies on Consumer Purchasing Decisions at PT. Alfa
Scorpii Medan. Jurnal Mantik. 4(4). pp.2370-2375.
Chandra, Y. and Shang, L., 2017. An RQDA-based constructivist methodology for qualitative
research. Qualitative Market Research: An International Journal.
Dutta, S. and Bhattacharya, S., 2018. A quantitative approach in market research. International
Journal of Advances in Agriculture Sciences.
Saputra, I.F., 2020. Analysis Segmentation, Targeting, and Positioning (STP) Toward The
Development of Halal Hanwoo Beef in South Korea (Doctoral dissertation, Universitas
Muhammadiyah Surakarta).
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