Assignment Sample on 1449 Marketing Dynamics
Introduction
Cheddar Deli is a food company that opened in 2011 in Northfield Avenue, Ealing, and London. They sell and stocks about hundred types of artisan cheese from Britain Ireland, France, Holland, Spain, and Italy. The presentation aims at analysing the customer market segments as they are focusing on opening the market in Birmingham, UK.
Customer segmentation will utilise demographic, behavioural, psychographic, and geographic segmentation. It is being followed by a perceptual map helping the company in getting a position in the food retail market. In the last section, 7Ps of marketing will be discussed so they can create value for their customer segments.
Task 1: Customer Segmentation
In Birmingham, UK cheese market seasonal fest is being held every year and it can be a great opportunity for the company to attract more customers. Looking at the strategy of Cheddar Deli to open a new market in Birmingham, UK, they must analyse the customer segmentation so they can achieve greater market success. There are four types of market segmentation that includes demographic, psychographic, geographic, and behavioural segmentation (Dolnicar et. al. 2018). The major purpose of market segmentation is to identify the targeted audience for delivering better value.
Demographic: In this type of segmentation, customers are targeted based on their level of income, age, gender, and many more (Gajanova et. al. 2019). Cheddar Deli needs to target customers from posh areas as they have a variety of 150 different cheese and customers can order a product online as well. The middle class and rich are the ones using the internet for spending their daily lives. Other than that, targeting families is more relevant as cheese is highly liked by students and children. Opening a retail store in between society will help them in achieving greater profit.
Psychographic: It primarily aims at the customer’s personalities and interests. Analysing customer’s hobbies, personalities and interests are quite difficult to analyse in new markets. For this, they need to target children and students going to college and schools as they are highly attracted to have cheesy food and they would love to taste new flavoured cheese. Other than that, the population of the UK is highly concerned about their health so they must introduce a new variety of cheese accordingly.
Geographic: They must target customers from areas where young professionals live as young people are highly fond of tasting new food and wine (PHAM, 2020). Looking at the products sold by Cheddar Deli they need to search for the region where their products are highly loved. After analysing the diverse locations of Birmingham, Brindle place is the most desirable and attractive area for Cheddar Deli.
Behavioural: Looking at the advancements in the technological world, Cheddar Deli needs to enhance its e-commerce sales as huge customers are involved in using the Internet daily. It would help the company in achieving greater profits by delivering cheese to customer’s doorsteps. In this way, they would be able to adopt personalization and allows the customer to order cheese as per their taste and preferences.
Task 2: Perceptual map
Looking at the diverse market segmentation, it has been analysed that the Cheddar Deli needs to open market in Brindleyplace, Birmingham. It is the most desirable and liked areas primarily by young professionals. They must target and open their food retail store at Central Square as it offers variety of products including vegetables, wine, fruit, cheese and cakes (Birmingham, 2020). Other than that, this market also attracts many visitors and customers that can be beneficial for the company to attract customers visiting there by offering varieties of offers to them.
The market also allows customers to enjoy live music if they visit in lunch hours while enjoying the sun. On the other hand, the market always evolve with new varieties to meet the customer demands and it is beneficial for Cheddar Deli as they have varieties of cheese that customers love to have (Elliot, 2020). They can also involve in seasonal cheese fest of Birmingham as it also attracts varieties of customers. It will be great opportunity for Cheddar Deli to enhance their customer base by offering them great variety of cheese.
Brindleyplace is covered with full of expensive bars and eateries. Central location of the place is enough to attract huge crowd of young workers that come for pursuing their careers (Peterson, 2020). Based on their demographic segmentation, it is the best place as young professionals, college students and rich families are the people that love to have cheese.
Furthermore, the market competitiveness of Cheddar Deli will be high as there is well-established Anderson & Hill known for its best cheese in the UK. They have about 50 cheeses in stock and are driven by the love for food and desire to provide great quality products. The company is situated in Birmingham at Great Western Arcade. Other than that, they can also face tough competition with Queso Fine Artisan Cheese as they also provide the best quality of cheese in Birmingham. Looking at this scenario, they must open a food retailer shop at Brindleyplace as there is fewer retail store of cheese.
Task 3: 7Ps of marketing
Product: Cheddar Deli is known for its artisan cheese and serves about 150 different varieties of cheese. They serve great quality cheese to their customers and meet the demands of customers constantly (Gladka and Fedorova, 2019). The company also brings innovations in products by sourcing diverse varieties of products like wine and spirits, bakery products, smoked, British, and many more varieties of cheese.
Place: The Company will target customers from Brindleyplace, Birmingham as it is surrounded by young professionals. The city also has varieties of bars and eateries that attract young people.
Price: Cheddar Deli will keep its price high as the places they will target are greatly attracted to the eateries and bar products. They will attract huge customers from their products and services.
Promotion: They must use social networking and SEO advertising techniques to attract more customers as every individual is using the Internet nowadays and it is the best way to spread awareness of new stores (Pistol and Bucea-Manea, 2017). Other than that, they can also get involved in seasonal cheese fest at Birmingham to enhance their customer base.
Physical Evidence: Cheddar Deli aims at giving real value to every product they offer. Other than that, they are a reliable, local neighbourhood supplier of genuinely sourced products with real provenance.
People: At Birmingham, the company must aim at merging with diverse street food vendors and local restaurants for using the cheese in their food products (Melewar and Saunders, 2020). It would be great for enhancing their market in Birmingham. Other than that, they have a bunch of employees involved in selling their products at their first food retail store that opened at Brindleyplace.
Processes: Cheddar Deli first analyse market segmentation and forms a group of the targeted customer. After that, they decided on a place to open up their first food retail store and attracted customers using diverse promotional strategies described above.
Conclusion
It has been concluded from the analysis that before entering any new market it is essential to identify diverse market segments so they can decide a better place to open their retail store. Other than that, it is essential to group targeted customers and attract those customer using diverse marketing strategies. In the last section, 7Ps of the marketing mix is being discussed to analyse different marketing tactics.
References
Books and Journals
Dolnicar, S., Grün, B. and Leisch, F., (2018). Market segmentation analysis: Understanding it, doing it, and making it useful (p. 324). Springer Nature.
Gajanova, L., Nadanyiova, M. and Moravcikova, D., (2019). The use of demographic and psychographic segmentation to creating marketing strategy of brand loyalty. Scientific annals of economics and business, 66(1), pp.65-84.
Gladka, O. and Fedorova, V., (2019). Defining personnel marketing strategies. Business: Theory and Practice, 20, pp.146-157.
Melewar, T.C. and Saunders, J., (2020). Global corporate visual identity systems: using an extended marketing mix. European journal of marketing.
PHAM, H.C., (2020). Factors determining brand equity for retail stores: A market segmentation approach. The Journal of Asian Finance, Economics, and Business, 7(10), pp.843-854.
Pistol, L. and Bucea-Manea, R.Ţ., (2017, July). The „7Ps” &” 1G” that rule in the digital world the marketing mix. In Proceedings of the International Conference on Business Excellence (Vol. 11, No. 1, pp. 759-769). Sciendo.
Online
7P’s of marketing mix. (2020). [Online]. [Accessed through]:<https://www.superheuristics.com/7ps-of-marketing-mix-with-examples/>
Birmingham. (2020). Brindleyplace ready for first local produce market. [Online]. [Accessed through]:<https://www.birminghammail.co.uk/news/local-news/brindleyplace-ready-for-first-local-produce-94447>
Cheese Market outlook. (2021). [Online]. [Accessed through]:<https://www.alliedmarketresearch.com/cheese-market>
Elliot. S. (2020). The Birmingham Seasonal Markets Cheese Fest. . [Online]. Accessed through: <https://www.birminghamupdates.com/the-birmingham-seasonal-markets-cheese-fest-is-back/>
Peterson. M. (2020). Best places in Birmingham. [Online]. Accessed through: <https://www.whiteandcompany.co.uk/best-places-to-live-in-birmingham/>
Tow. H. (2020). Market segmentation. [Online]. Accessed through: https://learn.g2.com/market-segmentation>
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