Marketing is one of the essential aspects of every business. It is the key procedure for investigating, endorsing, and selling services or products to the target audience. Profit is the bottom line of all the businesses. Profit is majorly the outcome of successful sales. Marketing is the essential process of the business where are informed, convinced to purchase products or services. Deprived of marketing, numerous companies can fail to survive in the market (Ferrell & Hartline, 2013). The aim of this report is to develop an understanding of different marketing strategies used by the business in order to target and attract customers in the existing and potential market. It will highlight the targeting, segmenting, and position of Kanti’s Fruits & Vegetable business in the retail market.
The selected potential consumers are aimed to market the product and service by the business. The strategy of targeting comprises segmenting the market, selecting the appropriate segment, and defining the goods that will be provided in every segment (Klobnak, 2011).
Segmentation talks about dividing the market into segments or parts that are reachable, profitable, definable, and actionable and possess the potential for growth. Similarly, a company will consider it an impossible task to target the whole market, due to cost, effort, and time constraints. It requires having a determined segment with a mass of people that can be targeted and recognized with rational effort, time, and cost (Dolnicar, Grün & Leisch, 2018).
Small vegetables and fruit stores like Kanti tend to stock their shelves with product from local farmers. They also offer a variety of baked products, vegetables, honey, canned fruits, and jams. Whereas, supermarkets are intended to target a large number of populations, vegetable stores, and small farm fruit are aimed to aid a niche consumer group with precise needs and interests (Brookins, 2018).
Businesses and individuals who buy goods from the small vegetable fruit store value eating fresh foods. They desire vegetables and fruits to frozen, dried, or canned versions. They possibly prepare frequently, as fresh goods are perishable in nature (Brookins, 2018).
Businesses and consumers best fit in the Kanti’s vegetable and fruit store target market. Customers who cook meals for families or cook for gatherings purchase products from the store. A local coffee shop, deli, or smoothie shop also purchase vegetables and fruits such that they can prepare the dishes they serve (Brookins, 2018). Besides this, the business also targets homemakers to vend its products in the local area.
People with special diets are the customers of the Kanti’s vegetable and food store. Consumers that are vegans, fruitarians, vegetarians, and pescatarians also choose to but their vegetables and fruits from the store in place of from big supermarkets.
The key advantage of stores and farmer markets is its support in eliminating the intermediaries from the distribution channel. Business does not need to think about transporting food products from one place to another, which enhance the utilized of the resources. Kanti being a small vegetable and fruit store it possesses a lesser carbon footprint as compared to superior launches that may appeal to eco-conscious consumers.
Demographic segmentation is the simplest and broadest kind of market segmentation. Various businesses make use of this segmentation in order to target the right population that can use the product of the company. Thus, demographic segmentation possesses its variables such as size, nationality, age, income, gender, race, occupation, and religion (Wedel & Kamakura, 2012). The Kanti’s Vegetable and fruit store segment its market based on age, gender, and income. The store majorly targets homemaker, as they are the one who cooks food for their families. Besides this, the company also target low-income customers and therefore, it offers vegetables and fruits at affordable prices.
This kind of market segmentation divides its target market depending on the geography. The possible consumers possess diverse needs based on geography where they are located in (Weinstein & Cahill, 2014). The geographic segmentation of Kanti’s vegetables and fruits store is based on the area. The store majorly targets the customers that are placed near to it. However, there are some customers to visit the store from far places in order to purchase fresh fruits and vegetables.
The positioning means the place that is occupied by a brand in the eyes of the consumer and the way it is distinguished from the products of the rivals. To place, the brand or product, businesses focus on the distinctive features of the brand or they put their efforts to make an appropriate image with the help of the marketing mix (Riezebos & Grinten, 2012). Kanti’s vegetables and fruit store are positioned in the market as a small retail store offering quality products.
The marketing mix is determined as a marketing tool that a business make use of to follow its objective of marketing in the market. This the marketing mix is said to be four wide levels of the decision of marketing, namely, promotion, place, price, and product (Richter, 2012).
The goods that are actually being vended in the market are known as a product. The product should distribute a minimum performance level; else, even the finest work on the other marketing mix basics will not provide any benefit (Slack, 2010). The Kanti’s vegetable and fruit store are involved in the dealing of fresh and different variety of vegetables and fruits in the local area. Besides this, the store has also added dry noodles and bread on its product mix.
Price is the cost that is charged for a product. It is based on the production cost, the capability of the market to pay, target segment, and supply demand. There are numerous types of strategies of pricing, each knotted with the complete business plan. The store has presently adopted economy pricing under which business is focused on attracting the customers that are price conscious. With the help of this strategy, business minimizes the costs related to the production and marketing to maintain low prices of the product. As an outcome, customers are able to buy the products they desire (Smith, 2011).
The place is also considered as a point of sale in the marketing mix. In all the industries, catching the attention of the customer and making it simple for them to purchase it is the key agenda of an effective place or distribution strategy (Economic Times, 2018). Kanti’s vegetables and fruits only possess single store in the market and target the nearby customers. Kanti believes in focusing on local sourcing, particularly the 100 km goal that most of the goods are produced in the restricted geographic area in order to maintain the quality of vegetables and fruits.
Promotions mean that all the actions are undertaken to create a market the service and product. This is comprised of press reports, advertising, commissions, word of mouth, awards, etc. (Lamb, Hair & McDaniel, 2011). As Kanti’s Vegetables and Fruits store possess single store in the market and like to offer its services to the limited area, it allows it to be restricted towards limited advertising strategies. The store makes use of hoarding and pamphlets in its local area.
As Kanti wants to increase its profits and revenue it is focusing towards opening a second store in the market, it will target some of the groups such as:
Here, Kanti will target the business and customers placed in the local area of its second store such as coffee houses, small restaurants, etc. Besides this, customers such as homemaker, price sensitive customers, old age customers, families, etc. The business is thinking to add meat to its product mix, so there will be an increase in the customer base of the business.
Individuals with special diets are targeted to purchase vegetables and vegetables (Brookins, 2018). Besides this, business has decided to add a non-veg segment in its product offering so it will increase its target base and will offer services to the non-vegetarian customers.
As Kanti store is a small retail outlet of vegetables and fruits it cannot give direct competition to the national grocery stores present in the area. It needs to focus on differentiation from the key grocery chains. Therefore, it is suggested that Kanti needs to reconcentrate on the freshness of its products and local sourcing. However, besides this, it must slowly increase the product line from vegetables, and fruits to grocery, etc.
Psychographic segmentation makes use of lifestyle of people, their interest, activities, and perception to determine the segment. Psychographic segmentation is comparable to behavioral segmentation. However, psychographic segmentation takes into account the psychological features of customer purchasing behaviour (Bhasin, 2018). The consumer segments that will be targeted in the area of the second store are comprised of those consumers who have a limited budget. Their purchasing behavior is to get the best quality fruits and vegetables, but also to save their money.
Under demographic segmentation, Kanti store will target more than 20 years of age group, as they are the one who visits stores to purchase vegetables, fruits, and groceries. Besides this, in the category of gender it will majorly target female in comparison of male, as on an average day, around 83% of females spend a maximum of their time in household activities (Time, 2018). In addition, the store will also target low-income consumers.
Considering the new product offering of the Kanti’s vegetable and fruits store, it will be positioned as a vendor of fresh quality vegetables and fruits in the market at very affordable cost. Considering its additions to the product offering, it will be also known for offering non-vegetarian products.
The initial offering of Kanti Store is to offer vegetables, fruits, and meat products in its second store. For the future growth, business needs to add extra products to its product mix such as groceries, packed and canned products. These additional products will support Kanti’s store to increase its revenue, sales and offer long-term profits.
In order to establish a successful store in different market business will adopt a price penetration strategy to attract customers. Price penetration strategy is aimed towards attracting consumers by charging lower prices on services and goods (Swann, 2018).
Considering the above analysis, Kanti’s store will hire local area suppliers for the delivery of vegetables, fruits, and meet, which will maintain the freshness of the products. Besides this, the company will offer its products to the local customers who stay at nearby locations.
Promotion is one of the essential strategies required to market the products and services of the business. As Kanti’s Store will offer very limited products to a limited area, it will not make use of mass advertisement strategies. In its place, it will make use of hoarding and pamphlets at its local area.
Conclusion
The above report has highlighted the importance of marketing strategies such as segmentation, targeting, and positioning of the product in the market. As per the case study of Kanti’s Vegetable and Fruit Store, the report has provided the targeting and segmentation strategies used by the business in the market. Moreover, as business is planning to open its second store at a different location, a report has suggested the marketing mix strategies for the store to successfully position in the market. In conclusion, it could be said that the presented strategies will help business in increasing its market share as well as profit margins.
References
Bhasin, H. (2018). 4 types of Market segmentation and how to segment with them? Retrieved from https://www.marketing91.com/4-types-market-segmentation-segment/
Brookins, M. (2018). What Is the Target Market for Small Farm Fruit & Vegetable Stores? Retrieved from https://smallbusiness.chron.com/target-market-small-farm-fruit-vegetable-stores-35244.html
Dolnicar, S., Grün, B., & Leisch, F. (2018). Market Segmentation Analysis: Understanding It, Doing It, and Making It Useful 1st ed. Germany: Springer.
Economic Times. (2018). Definition of ‘Marketing Mix’. Retrieved from https://economictimes.indiatimes.com/definition/marketing-mix
Ferrell, O.C., & Hartline, M. (2013). Marketing Strategy, Text and Cases 6th ed. U.S: Cengage Learning.
Klobnak, J. (2011). Targeting: Improvisation with Purpose 1st ed. U.S: Jason Klobnak.
Lamb, C.W., Hair, J.F., & McDaniel, C. (2011). Essentials of Marketing 7th ed. U.S: Cengage Learning.
Richter, T. (2012). International Marketing Mix Management: Theoretical Framework, Contingency Factors and Empirical Findings from World-Markets 1st ed. Germany: Logos Verlag Berlin GmbH.
Riezebos, R., & Grinten, J.V.D. (2012). Positioning the Brand: An Inside-Out Approach 2nd ed. U.S: Routledge.
Slack, L. (2010). What is Product Design? 2nd ed. U.K: RotoVision.
Smith, T. (2011). Pricing Strategy: Setting Price Levels, Managing Price Discounts and Establishing Price Structures 1st ed. U.S: Cengage Learning.
Swann, I. (2018). Penetration: The Question of Extraterrestrial and Human Telepathy 2nd ed. California: Swann-Ryder Productions, LLC.
Time. (2018). Women Are Still Doing Most of the Housework. Retrieved from https://time.com/2895235/men-housework-women/
Wedel, M., & Kamakura, W.A. (2012). Market Segmentation: Conceptual and Methodological Foundations 2nd ed. Germany: Springer Science & Business Media.
Weinstein, A., & Cahill, D.J. (2014). Lifestyle Market Segmentation 1st ed. U.S: Routledge.
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