Woolworths' Marketing Strategy: Segmentation, Targeting, Positioning

This report provides an in-depth analysis of Woolworths' marketing strategies, focusing on market segmentation, targeting, and positioning. It discusses how Woolworths identifies and caters to different consumer segments based on demographics, geographic location, and behavioral patterns. The report examines the advantages and disadvantages of various segmentation variables and highlights Woolworths' strategic approach to targeting specific consumer groups, including middle-class and labor-class individuals, by offering a variety of products at competitive prices. Furthermore, it explores how Woolworths positions itself in the market to attract and retain customers, emphasizing the importance of adapting marketing strategies to meet evolving consumer needs. The report also touches on the four types of product and service scopes that can be applied. The content is intended for educational purposes and is available on Desklib, a platform offering study tools and resources for students.

Running head: MARKETING AND SOCIETY
Marketing and Society
Name of the Student
Name of the University
Author Note

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Table of Contents
Market Segmentation:......................................................................................................................2
Targeting:.........................................................................................................................................6
Positioning:......................................................................................................................................9
Recommendation:..........................................................................................................................12
Conclusion:....................................................................................................................................13
Reference:......................................................................................................................................14

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Market Segmentation:
This is to be noted that the leading companies can significantly recognize the
requirements of specific and successfully meet them in terms of offering services and
products. According to the business analysts and academics have named this process or
procedure as market segmentations. However, the significant entrepreneurs would like to call
this method nothing but common sense. It can be said that the collection of the multiple products
have taken place on the showcases of the markets on the basis of different requirements and
interests of individual customers. This is to be mentioned that the diversity of products and
services depends on the different buying practices and elementary differentiations of the clients’
desires. The opportunities they access from the multiple services and products are equivalent to
the interests and desires of the clients. It can be stated that every individual cannot be impressed
with the same facility of a particular service or products. This is to be understood that the
Woolworths need to facilitate their products and services with variety in order to satisfy the
different needs of different customers. Therefore, the brands and companies realize the
significance and importance of focusing on a particular sort of clients instead of getting into the
wholesale market. The number of companies who stick to specific group of clients is
significantly increasing. This particular method of identification or acknowledgement of target
client group is being named as market segmentation. This is the method where the companies
aggregate the clients into small unites on the basis of their similar interests, needs and buying
features.
The Henry Ford Model ‘T’ philosophy can come into consideration here in order to
evaluate this method of clients segmentation. One can select a color apart from black as black is

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not the suitable one for this. This is to be noted that the number of companies who decide to be
in the league of targeting mass have fallen down because of multiple causes. It can be stated that
the target orientation attitude gets developed on the basis of categorically distinct market
segmentations. The concept of Boots can be discussed in this situation. The Boots had once an
identical concept. However, there is a tough competition between Boots Pharmacy, Boots variety
store and Boots Health and Beauty (Randall, Seow and Walsh2015). The methods of clients
being targeted with particular products have emerged with the introduction of Green
International Journal of Retail and Distribution Management. The companies targeted the clients
with particular products such as unleaded petrol. It is to be mentioned that this sort of petrol is
trademarked distinctly from the leading petroleum brands. This trend is rising. It can be said that
the mass market products have been disappeared with the passing time. The case of salt can
come into the consideration. This is to be noted that the salt with low sodium replacements are
being available in the market to meet the health conscious clients’ requirements.
It is to be mentioned that Woolworths, possibly the last leading company in the mass
market league also gave up on the procedure and start focusing on the method of targeting clients
from the year of 1980 (Drake‐Brockman et al., 2015). This can be suggested that the base of the
market segmentation depend on the requirements in the academic marketing press and popular
marketing press. Woolworths have witnessed how the effective and operational execution of
market segmentation and consequent targeting lead them to success. However, the target
segmentation is only one factor to reach success. It does not play the ultimate role to achieve
success. This is to be stated that the method of segmentation can be applied with the help of
three elements such as segmentation, targeting and positioning.

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The transformation of the requirements and the desires of the consumers in a significant
perceptible mix of merchandises, market, price and distribution and the quality of the service
with the supreme approach can be acknowledged as the major challenge. The number and type of
target segments differ as per the market, product and company. It can be assumed as a complex
method. However, the impact of this execution is distinct. This is to be noted that the quest for
essential positioning requires to be moderated. It can be observed that there is a common
tendency to overlook the matter that consumers’ interest and expectation play the pivotal role in
market segmentation (Wasserberg, Kirsch and Rowton 2014). This can be said that the specific
service or production may lose their particular importance and individuality as they aim to fulfill
the clients’ requirements. The particular capacities of the particular company will determine the
position of particular brand of services. This depends on the practical and physical characteristics
of a specific product that come into consideration. This is also the matter of competition that how
they can fulfill the needs of the particular client. It can be stated that the success of the particular
company or product are being determined by the number of loyal clients. Therefore, it is
important to modify the marketing strategies regularly and acknowledge the messages they
receive from the consumers in order to make the service or product beneficial to them. This can
easily be said that the conscious segmentation of the particular market is always helpful in
recognizing the different market goals and scopes. It is important to have a strategic
understanding to assess how the scopes can be realized. This understanding generates from the
improvised analyze and understanding of the interest of the customers in the target group. The
promotional activities or proper service or product stylization or prize discounts can be
introduced in order to attract the interest of the clients. The profits can be established with the
case of Woolworths.

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This can be seen that consumer demographics and the benefits services are being sought based
because of the segmentation of the market in case of Woolworths. This method can be
recognized as one of the significant procedures to aggregate people in groups. The essential
characteristics such as age, gender and individuality can be considered as the general
characteristics in the customer markets.
This is to be noted that Woolworths have acknowledged the specific requirement of a particular
group of consumers in the significant market. The identification of the particular segments can
be acknowledged in the field of socio-economy in the first place. The segmentation of target
groups can play the major roles in the global market by using the essential and operative
segmentation in order to achieve a position with a specific role. This is because the segmentation
aims to recognize the different scopes by leaders from different brand. However, the market
strategists of Woolworths utilize the method of market segmentation in a profitable and
significant manner. This is to be mentioned that the four sorts of products and service scopes can
be applied.
 Market Presentation:
This section aims to increase the proportion of sales in the global market by competing
the significant rivals in terms of contemporary consequences.
 Product Development:
This section is to offer improvised and polished products and services to contemporary
markets by the growth of the wide range of product.
 Market Development:
This section is dedicate to sell the current products and services by identifying the new
presentations and applications.

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 Diversification:
This section is focused on providing original products while stepping in to a new market.
This is important to recognize the multiplicity of market scopes with the help of segmentation.
However, the wrong application or execution of this particular method can lead the company to
failure. Therefore, it is necessary to apply the effective and essential segmentation in order to
meet the multiple criteria. The lists of segment include
 Recognizable: These sorts of segmentations are simple to describe and measure.
 Practicable: These types of segmentations are huge to be possibly beneficial.
 Saleable and manageable: These sorts of segmentations are simple to highlight the
factors with the help of sales and advertising work.
 Steady: These types of segmentations are large in terms of taking particular actions.
This is significant and important to ignore the threats of the specific tunnel vision. It is important
to understand that the companies should identify segmentation as the only and correct method for
working in a specific market. This can be predicted that the changes in terms of customer trends
and stationary sales can act as a positive hint of targeting policy.
Targeting:
Woolworths plays a major role in this specific industry of Australia. It can be stated that
this company have accomplished specific level of advancement and progress among the
Australian retail industry for significant reasons. There are multiple issues that help this company
to enter in the leading league. This is to be noted that a leading company such as Woolworths
have their own critical strategies to perform. It is important to analyze the strategies of
Woolworths to understand the significance of the position of this particular company. This is to

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be stated that this company has successfully executed the strategy plans in a positive way. The
strategies that Woolworths follow include target segmenting, denoting of target market and
positioning accordingly. It is to be mentioned that there are significant strategic elements that
need to be considered and evaluated in order to understand the strategic position and
contemporary state of the company in both the local and global market.
This is to be noted that the target market denotes a group of clients a particular product or
service aimed at. It can be said that Woolworths is popular as one of the leading supermarket
retailers of Australia. This should be remembered there is a primary target to Woolworths is to
increase their sell. It would be beneficial if they could target the mass irrespective their political,
social and economic structure. However, it is difficult to target people from the different
backgrounds at the same time with the same product. The lifestyle of an individual depends on
the circumstances and the situations they born and brought up and lives at. These factors have an
essential impact on their interests and requirements.
Therefore, Woolworths decided to target people from one or two different class. It can
be said that the people who have ample amount of money can have much options. It is not
possible to receive loyalty from them as they can switch the brands and products. They do not
compromise with the quality. They always look for the new and fresh options. Therefore, they
basically target the middle class, lower middle class and the labor class people. It can understood
this company strategically low down the price of their products in order to attract significant
number of people. There is one significant and essential point to add in terms of Woolworths’
strategies. It offers verity of products under the same roof.
This is to be said that Woolworths have correctly recognized the market segments. They
have decide in which market they need to enter at the primary stated. This particular company

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has made a definite marketing program which comprises the essential materials of the beneficial
marketing mix. They have crafted a marketing mix to identify and meet the precise needs of the
specific segments they targeted. This is how Woolworths dominate the other retailer chains with
the help of proper strategy. This company has correctly realized that it was not meant for
exclusively upper end of the significant market as that had comparatively low volumes and high
margins of unite.
The consumer profile is shown as follows:
Segmentation criteria Details of consumer
Geographic Mary Williams living in suburbs region of
Sydney
Demographics She is 25 years old, and a company secretary in
successful organization with the income of
$400,000 per year. She is high income family
Behavioral Mary is a brand loyal customer and therefore
limits her buying behavior.
Psychographics Mary is highly community minded. She gives
high attention on innovation.
Woolworths have taken the significant decisions that how many groups and what kind of
groups they need to target at the first place. The specific target groups segmented by Woolworths
can be recognized to understand the contemporary situation and circumstances. The options they
kept listed while segmenting the target clients comprise:
 Focusing on one particular segment with single product or service.

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 Providing the product and service to multiple numbers of groups.
 Create the value base of a particular target while targeting one particular group of clients.
This can be stated that the selection of the groups or individuals that Woolworths have
targeted can come into the contemplation in order to generate the sources and the executions of
the specific strategies in a proper way. The specific activities of Woolworths denote the
confirmations that it is impossible to target the mass in terms of distribution of a particular
product or services. It is evident that every individual has his/ her own choice. It is not possible
for a company or a product to satisfy the requirements of every individual or to meet the desires
of every individual at one go. Therefore, Woolworths finally decided to segment their customers
and meet their needs accordingly.
This is true that they can earn the reputation by catering the upper class people. However, it
is evident that they can earn significant revenues by lowering the prize of the products. This is
how they can increase their sell and earn profit (Ayvaz, Balaban and Kong, 2017). Therefore
they decided to target the less earning and less privileged class with their products. However, it
can be suggested that even there are diversity of choices and interest in the same class people.
This is why Woolworths decide to focus on one particular group of people with one particular
product. The success of this company lies in their wisdom. It can be said that the growth of this
particular company as the leading retailers is dependent on this single segment strategy. This is
to be noted that Woolworths has developed an idea and mix of contributions with the steady
approach.

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Positioning:
This is to be noted that the specific companies should determine how the target segments
work in order to promote and sell the products and services. It can be stated that the requirements
of the specific clients need to be transformed into physical mix of price, product, promotion and
distribution. The customers’ perception regarding the service or the product and the place of
positioned have a connection to the rivalry is specifically complex. This is to be mentioned that
the clients do not identify a product as per the desire of the manufacturers (Rundle-Thiele,
Dietrichand Kubacki, 2017). Therefore, Woolworths does not expect to meet the expectations of
their own. However, they do not give up and do not fail to put the entire effort on their services.
This to be noted that the theorist Wind has stated a significant theory on market
positioning. According to him the particular product should be professedly the specific target
clients in order to provide a different image. It can be said that the product positioning basically
denote the place where a product subjugates in the specific market. This method takes place as
per the perception of the significant group of clients (Scrinis, Parker and Carey, 2017). The entire
procedure is known as the target segmentation of a particular market. Harrison has also stated an
important theory on the perception of target clients (Urwin, Dwyer and Carr2016). He stated that
the position of the particular product defines the average of the important elements usually
attributed to it by the significant number of the customers.
This is to be mentioned that the positioning has actually nothing to do with the product or
the service. It basically is formed in the minds of the target clients. This is necessary to produce
an image of the idea that has been generated by the clients’ interest. A number of cosmetic
changes can take place in the significant product or service (Radon et al., 2017). Woolworths
found it important to let the selection be done by the customers. However, they decide to control

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positions termed and conditioned by the different elements that would be significant for the
customers as well (Phillips 2016). This is to be noted that the price play the pivotal role in case
of shopping grocery, selecting a venue to go or purchasing significant element.
This is important to research in order to understand the perception of clients of the multiple
products available in the market. Woolworths understand with the help of vivid research how the
customers can access products and which products may attract them. The market research
highlights the perception of clients towards the multiple brands or the services (Leonidou et al.,
2015). The research also is evaluating this perception and the operation accordingly.
Low b
Price Distance
High a Low
c
(x)Ideal
Figure 1
It is to be noted that the perceptual mapping is basically a strategy developed by the dealers and
the market researchers to give a clear idea of the perception of target client group. It also
highlights the process of prioritizing products as per the perception (McLawhorn et al., 2015).