Holmes Institute: Kmart Marketing Strategy Report - HI5004, T1 2019

This report provides a comprehensive analysis of Kmart's marketing strategy, examining its approach to market segmentation, including demographic, geographic, and psychographic segmentation. It delves into how Kmart targets various customer segments, offering insights into its pricing strategies, customer service, and use of social media. The report also explores Kmart's positioning in the market, its customer relations, and the importance of adapting to the changing consumer landscape, including the use of digital marketing and competitive pricing. Furthermore, the report highlights Kmart's efforts to understand consumer behavior, adapt to market trends, and maintain a strong brand image through advertising and promotional activities, with the goal of attracting new consumer segments and maintaining its market share. The report also includes a detailed reference section with all the sources used for the analysis.

Running Head: MARKETING STRATEGY 0
MARKETING STRATEGY
Windows User
5/20/2019

MARKETING STARTEGY 1
Development of market strategy
Kmart is currently working in a large market within the sector of retail business, by delivering furniture,
toys, shoes and etc. It is working in various market segment currently and it is targeting various
customers (Berthon, Pitt, Plangger, & Shapiro, 2012).
Segmentation
For the demographic segmentation Kmart can consider various segments for its target audience, most
importantly it can choose on the market segment on the basis on age, religion, family, size, income,
education and ethnicity (Kirtiş & Karahan, 2011).
 Kmart can give the customers various offers that can help the youth by offering special
discounts on shoes and furniture’s
 Kmart likes to give various attention to the wants and needs of the customers, the market
strategies and the also pay high attention to the income of the customer while setting the price of
products.
 Income is one of the most important part when it comes to consumer buying behavior
 Kmart should offer special discounts on other products and lower their prices in order to attract
more customers.
 Under this the customers are divided into different groups on the basis different nationalities,
incomes, genders and age (Slater, Hult & Olson, 2010).
For the Geographic segment Kmart can choose the urban, rural and suburban segment as these are
different kind of customer segments and all are in different regions which have different needs and wants,
each segment will have different culture, value, wants and etc.
 While targeting this audience the company will have to consider various marketing strategies
 By targeting this segment Kmart reach diverse group of people.

MARKETING STARTEGY 2
 Due to this difference in the level of population, Kmart will have to come up with various
changes in the marketing strategies so that it can attract the customers of diverse groups.
 It is always seen that a company can reach different age and race groups in these kinds of
target markets.
For the psychographic segment Kmart can chose the market segment which can be based on the
consumers lifestyle, value , interest, personality, attitude , traits and interests.
 Under this segment Kmart can group consumers based on their lifestyle, class and the personality.
 It can be seen that Kmart have different kinds of marketing campaigns that helps them to know
different groups and individuals and the different kind of lifestyles.
 Family oriented groups are also there; these are the groups which like to buy all of their needed
products from Kmart (Varadarajan, 2010).
 Another group of customers are those who love to use the products of Kmart and value the
products of Kmart.
Targeting
 Segmentation is different from targeting and Kmart uses two groups so that more consumers can
be reached and products can be created for both the groups.
 Kmart uses the three types of market segmentation that are the high end customers and the
Low end customers.
 Low end customers are the major target for Kmart as they sell low priced products and they often
offer special offers on their products which helps them in targeting the low end customers.
 Kmart should try and turn their focus to the customers who use social media apps in order to
attract more customers to the company as people are more connected to digital media nowadays
(Hawkins & Mothersbaugh, 2010).

MARKETING STARTEGY 3
 Kmart can also target the youth by offering them personalized products, youth are the main
segment of focus for any company.
Positioning
 Kmart positions itself by understanding the needs and wants of the customers and working on the
products accordingly.
 Kmart has a good customer service and public relation service which helps the company to maintain
good relations with the customers.
 As the whole world is moving towards social media, Kmart should to focus on social media
marketing in order to attract more customers.
 It should constantly provide more offers and discounts as the market is competitive
 It should price the products at a reasonable price in comparison to the competitors as consumers can
move to a substitute if they find a cheaper product.
 Kmart should launch new advertisements in order launch a totally new brand image to the world
which can help them to rebuild a new image for the company in front of the people and can also help
them to reach new consumer segments.

MARKETING STARTEGY 4
References
Berthon, P. R., Pitt, L. F., Plangger, K., & Shapiro, D. (2012). Marketing meets Web 2.0, social media, and
creative consumers: Implications for international marketing strategy. Business horizons, 55(3),
261-271.
Hawkins, D. I., & Mothersbaugh, D. L. (2010). Consumer behavior: Building marketing strategy. Boston:
McGraw-Hill Irwin,.
Kirtiş, A. K., & Karahan, F. (2011). To be or not to be in social media arena as the most cost-efficient
marketing strategy after the global recession. Procedia-Social and Behavioral Sciences, 24, 260-
268.
Slater, S. F., Hult, G. T. M., & Olson, E. M. (2010). Factors influencing the relative importance of
marketing strategy creativity and marketing strategy implementation effectiveness. Industrial
Marketing Management, 39(4), 551-559.
Varadarajan, R. (2010). Strategic marketing and marketing strategy: domain, definition, fundamental
issues and foundational premises. Journal of the Academy of Marketing Science, 38(2), 119-140.