Market segmentation based on perceptual/brand maps

Convenience Seeker

This segment of our consumers were found to have relatively simpler and selective decision criteria designed to optimize their shopping experience in terms of convenience. This type of consumer is making decision based on convenience, company reputation and after sales services. All these attributes seems to be easing the three stages of shopping, first the company reputation makes the store selection simpler, then the convenient execution of purchase (probably getting products delivered to home/office) can direct shopping procedure and then a reliable after sales service ensures that any product issues are dealt promptly and effectively.

Shopping Enthusiast

These types of consumers were found prioritizing shopping experience and quality over all other attributes. This hints towards the high involvement of this type of consumer as he/she is looking for the best source in terms of providing high quality. In addition to this, the experience of shopping is important as the consumer relishes the shopping as a pivotal component of his/her lifestyle. Another key ingredient in shopping attributes could be variety for this segment. As expressed earlier, shopping is a valued experience for them which do get more exciting with more variety available (which probably increases the overall time of shopping as well and with it the fun in it).

Value Maximizer

These kinds of consumers are trying to make an optimal purchase decision based on price, convenience and company reputation. They might prefer online shopping as opposed to brick and mortar since they do look for convenience, yet they are doing for significant reasons (of may be time shortage is one) but they do appear to maximizing on price and company reputation as well which suggests that they belong to less affluent financial backgrounds as opposed to ‘ convenience seekers’.

Using our respondents’ demographic data, we found two main segments, one being an “ Affluent Teenager” and another being “ Middle Class Graduate”. The Affluent teenagers belong to SEC-A+ and currently enrolled in a High school degree program. They are image conscious and looking at their behavior patterns, they are more probable to buy products online because of high convenience or because buying from online sources is important for them to project an image of being up-to-date on latest shopping trends.

On the other hand, the Middle Class graduate belongs to SEC-A, and is currently enrolled in a graduate degree program. He is more inclined towards looking for best deals/offers. Belonging to a relatively mature age, this segment is still more skeptic towards online shopping and probably still believes in the value optimizing potential of brick & mortar store. Buying BehaviorBuying behavior of grocery retail market provides us with the knowledge of the kind of business models that currently exist for e-grocers, the changing trends in the market over time; the operational models to be followed regarding how to manage the inventory and supply chain. In future buying would be about providing unique experiences regardless of the channel (online/offline) being used. There are many disruptions faced by the retailers with the evolution of online grocery which are discussed below.

The Changing Role of the Store

From the product point of view, in a store, customer can touch, feel and physically see the products. From people’s experience point of view, in a store, people enjoy the entire experience of going out for shopping and the return is easy but the timing is specific.

While in case of online shopping one can shop at any hour of the day, get better deals, can compare deals, have greater variety to choose from and do not have to travel. Certain challenges of in store include: elderly buyers in the target audience are not technologically advanced, there is a lot of competition and everyone is trying to serve better than the other, window shopping has decreased and online grocers have low prices to cater a greater chunk in order to attract more customers. There are two important concepts to be kept in mind when talking about buying online: firstly, show rooming i. e. see the products in store and buy online; and the second is of reverse nature, show rooming,- where one sees the products online and purchases them from the store because buyers can immediately take product in hand.

Mobile and Related Technologies

The usage of mobile phone has increased tremendously in the last decade hence increasing the sales of mobile phones. Nowadays almost everyone has a mobile phone, making it a crucial shopping agent in the online shopping world, as it helps in buying at a touch and also for connecting and receiving feedback from the customers, retailers and the suppliers. Some people use their mobile phones to search for best deals being offered at lowest rates. But the major issue of using a mobile phone for online shopping is to make online payments. People fear that their personal and credit card information might be misused.