Segmentation, Targeting And Positioning Of Woolworths Limited

In the business operations of a company, segmentation, targeting and positioning of the product or service play the most important role in establishment of the brand or company in the target market and increase the sales and earnings opportunities. In this report, discussion of segmentation, targeting and positioning of Woolworths Limited will be considered to increase knowledge and understating about the company strategy. Woolworths Limited is an Australian based retail company operated its business mainly in Australia and New Zealand.
Segmentation of Woolworths Limited:
Segmentation is a marketing strategy of a company in which target market is divided in a group of consumers to make the business market easy and effective sells the products/services. The segmentation of market of Woolworths Limited can be seen as demographic, geographical and psychographic criteria to target its market and sell the products (Kasanagottu & Bhattacharya, 2018). This segmentation of Woolworths Limited can be discussed as below:
Demographical Segmentation: Under demographical segmentation, Woolworths divided the market on the basis of the age of the customers, gender, income level of consumers and customer value in the market. This way of segmentation help this retail company to take more advantage than its rivals. The age group of the customers is divided between 6 years to 55 years in order to offer the products to the customers effectively and efficiently. Further, the offer of the products by Woolworths that help to maintain and lead a healthy lifestyle of the customers is beneficial in demographic segmentation (Kasanagottu & Bhattacharya, 2018). Woolworths also target customers that have higher level of income and able to purchase quality and costly products.
Geographical Segmentation: In geographical segmentation of the company, Woolworth supermarket mainly focuses to conduct its retail operations in Australia and New Zealand. The market of these two countries has specific geographical locations basically the metropolitan cities and urban areas where it has large market share. The selection of these countries is more beneficial for the company where it has more than 1200 retail stores. In Australia, Woolworths has around 1000 retail stores and around 200 stores can be determined across New Zealand (Kasanagottu & Bhattacharya, 2018).
Psychographic Segmentation: In the psycho graphical segmentation of market of Woolworths is related to dividing customers based on their lifestyle, selection of high quality products, and preferences of healthy products. In the lifestyle products of the company, it mainly focuses to those customers that believe on the use of premium products (Kasanagottu & Bhattacharya, 2018). The high quality products over the prices are also required by the customers that basically prefer to satisfy their needs. Moreover, the customer that believes to take health products is also targeted to fulfill their needs.
Targeting:
Targeting of Woolworths Limited in the market is very effective as it utilized strategy with marketing mix phenomenon. The targeting of this company in both Australia and New Zealand is primarily based on segmenting of the retail market related to household products, such as homewares, laundry, kitche products, electronic items, stationary products, etc. In this segment to target the market, Woolworths identifies the high quantum of sales related groceries, home products, and other items (Fleming, 2021). Further, Woolworths also target the market based on working class of the customers and upper-middle class people in its target market strategy to increase its customer base. The high quality premium products of Woolworths are also targeted to the customers to increase sales of the products and earning in both the target markets.
The operations of the business of Woolworths belongs to a supermarket food and everyday needs retailing items through which it attract its existing and new customers to purchase the products. The Woolworths has around 7.2 million households that help the organization to take competitive advantage in the market (Fleming, 2021). In target market, the company serves over 29 million customers across Australia and New Zealand every week. The quality and sustainability of the products at Woolworth’s retail stores, it is capable to attract customers with developing a competitive edge in the market.
This target market of Woolworths increases the customer satisfaction ratio because of providing the best ever range of products. The working class and upper-middle class target market of the company is valuable to maximize its profits. Woolworths provides these target market best shopping experience at the retail stores in order to make them potential customers in the market (Fleming, 2021). The presence of general merchandise stores and supermarket of Woolworths across Australia and New Zealand have provided almost all households products under one roof to make the shopping of the customer easy and effective. Such way of targeting of the Woolworths in the market can also be seen as improved loyalty more than other companies.
Positioning of Woolworths:
The positioning strategy of a company is considered to make a place about the brand name of products or services in the minds of the target customers. This strategy helps customers to distinguish a product of a company from rival companies’ products. In this scenario, the positioning strategy of Woolworths is based on outlet offering customer-focused services. Such way of positioning of the company provides every possible product to the customers at convenient prices under its merchandise stores and supermarket (Woolworths Group Limited, 2022). The positioning of Woolworths can also be seen as offering high-quality premium products to its customers that make an image of branded company in the market. Further, this company also positioned itself in both Australia and New Zealand market through focusing on low price products to attract low income people.
Further, the positioning of the company is also based on value and innovation in the products to make the company market leader in offering many projects to its valuable customers, such as pre-fresh and new idea program. The positioning of Woolworths as petrol retail, sushi bar, and convenience programs are also effective to increase sales of the products and customer base. The brand positioning of the company across Australia and New Zealand can also be determined as the fresh food people (Woolworths Group Limited, 2022). This is new launching of this company in its new multimillion dollar brand campaign. This fresh food positioning of Woolworths is very effective to increase the interest of the people behind this campaign. The staff of the company is always ready to serve fresh food items from farm to the table of the customers.
At this stage, the positioning strategy of Woolworths improves the core offer and ensures customers as they are first member of the company. Further, growth of the company that is related to offering innovative products to the customers to meet their needs and increase the sales of the products has positioned it strongly with large market share (Woolworths Group Limited, 2022). Efficiency in the business operations of Woolworths creates value to the customers that help in organizing the company and achieving success for a long-time.
Conclusion:
After discussion of segmentation, targeting and positioning Woolworths Limited, it can be stated that the company has achieved remarkable market share than its competitors in both Australia and New Zealand markets. The segmentation of market based on demographic, geographic, and psychographic, the company has captured across all essential locations effectively. The targeting market of Woolworths that is based on household products, working class of the customers and upper-middle class people have also provided a beneficial platform to the company in the market to sales its products. The positioning of the brand can also be seen as useful to achieve goals of Woolworths.
 
References
Fleming, E. (2021). Who is Woolworths target customer? Retrieved from: https://www.sidmartinbio.org/who-is-woolworths-target-customer/
Kasanagottu, S. & Bhattacharya, S. (2018). A REVIEW OF METRO, TARGET, & WOOLWORTHS GLOBAL BUSINESS STRATEGY. International Journal of Mechanical Engineering and Technology (IJMET), 9(7), 293–302.
Woolworths Group Limited. (2022). Our purpose & key priorities. Retrieved from: https://www.woolworthsgroup.com.au/page/about-us/our-approach/strategy-and-objectives