Question

Identify and classify the major retail stores (department and specialty stores) in your community according to their estimation of the social class of their target market. Explain how the marketing strategy is different for each of the stores profiled.

Answer 1

I live in on the outskirts of a metropolitan centre. The main categories of stores in the community are as follows.

(i) Organised retail - There is a departmental store of one of the famous retailers. They store almost everything from a pin to a high street fashion item or a bottle of exotic wine costing in excess of $1500. Their customers are upscale shoppers who always look for something new, value experience at the store and are willing to pay premium for it. They comprise of the elite section of society, working couples who throng the store on weekends to fill their week's quota of things, small businessmen, rich housewives and occasionally yougsters

(ii) Neighbourhood retail stores - These are located in densely populated areas within communities. One does not need to walk more than 5 minutes to reach suc h store. They sell every item f daily need ranging from bread to grocery to toiletaries and so on. Their customers are mddle class people belonging to the neighbourhood who purchase as and when the item is needed. The ticket size of purchase is low and he focus is more on providing what is needed rather than introducing the customers to something new and prompt them to purchase.

(iii) Niche stores - These stores can be called speciality store because they sell specific items targetting different customer groups. For example there is one China Garden which sells exotic items that interest members from Asian community. Unlike its name, it sells  far Asian cooking ingredients to oriental carpets, Asian Herbs, Japanese tea, Thai accessories and Indian kitchen goods among many others. Most of their customers are Asian immigrants belonging to China, Pakistan, India, Vitenam, Phillippines and Thailand, and are of middle income group. They want vaue for money. It is not uncommon to see even locals shopping here these days.

Marketing strategy depends on the type of store. For the mega retailer, the marketing is done through pamphlets, hoardings and social media messages on popular platforms announcing a sale, festive discounts or other events. This is right stratgey to connect to the tech savvy, upmarket clients who are better communicated like this,and this kind of campaign is necessary to make them believe that they have an opportunity on hand. Neighbourhood stores thrive on word of mouth publicity and few small hordings in the locality. They can't afford much marketing, but often use pamphlets during festive season to announce discounts. Niche stores have loyal following as they are few and far. They feel their presence felt by organising some cultural events during Asian festivals to pull more crowd during those days. They often have data of their potential customers and a one to one message or tele call once a year is not uncommon, particularly during festive days.