Question

Describe the characteristic of your community and explain the type of segmentation you would use to segment the market appropriately.

b. Develop a retail format targeting the market and discuss how you would use the mix in achieving your objective.

Answer 1

Hi,

I hope you are doing well!

1) Question-

Answer-

Meaning of Community-

The meaning of community is all the people living in an area or a group or groups of people who share common interests. An example of community is a group of Buddhists who meet and chant together.

I am an Indian so i will explain here all about the characteristics and segmentation of Indian community at macro level not specific area, religion or race. I am taking about Indian community.

India is a secular democratic nation of 130 crore people. There are the basic characteristics of India as a developing economy-

a) Low per capita income- According to the International Monetary Fund’s Report, in 2017, India’s PCI was $ 1983 and was ranked 140 out of 188 countries.

b) Huge population- 130 crore people live in India.

c) Occupational pattern- Agriculture based economy. Majority of the population is engaged in agriculture (around 52 percent). In 2011-12, the contribution of agriculture to the national income was only 13.9 percent. This disparity is slowing India’s progress.

d) Chronic Unemployment and Under-Employment- Very High

e) Inequality in Wealth/Asset Distribution-This inequality highlights the fact that the resource base of 50 percent of households in India is weak.

f) Poor Human Capital Quality- Low HDI.

g)Low-levels of Technology.

h) Young Population- More than 50% of Indian population are young.

So, on the basis of all the above mentioned characteristics of Indian community i will devide it on the basis of population, demand(consumption), income level/wealth and qulity and types of customers in the following segments-

a) Rural Market b) Urban market c) Semi-urban market d) metropolitian market.

a) Rural Market- Its include All the villages,small markets of the villages.

b) Urban Mrket- Its include all the developing and under develop cities like, Patna, Kanpur, Nagpur etc

c) Semi-urban Market- Its include all the small towns, small market like, Muzaffarpur, Manali etc.

d) Metropolitian Market- Its include all the metro cities like, Mumbai, Delhi, Banglore etc.

The population, demand(consumption), income level/wealth and qulity and types of customers are diffent in all the above mentioned segments. So, the busniss strategies will be different and uniq for all the segments.

2) Question-

a) Answer-

I will use different format of retail for every segments of indian community.

I will use the following formate for all the segments-

a)Department stores- Department stores are general merchandisers. It will more productive in metropolitian and urban market of india.

b) Category Killers- Specialty stores are called category killers.It will It will more productive in metropolitian and urban market of india.

c) Malls- It will more productive in Urban, demi urban and metropolitian maket.

d) Discount Stores- It will more productive in Urban, demi urban and metropolitian maket.

e)Supermarkets- It will more productive in metropolitian and urban market of india.

f) Street vendors- It will productive for all the segment of Indian market.

g) Hypermarkets-It will more productive in metropolitian and urban market of india.

In india major population live in villages. In Urban area and metropolitian cities more than 40% of population live in poverty. Indian are not more expensive and focus on saving and low cost item.The are more familiar with local vendors, shopkeepers. Normally they do not pefer to visit the supermarkets or malls.

But now the ratio of middle class population has increased rapidaly and more than half of indians are young so, the behaviour of consumers has been changed.

I have already mention above that which factor will use in which market. So, a mix of format will more sucess in indian market.

Thank You