Also, the purchasing propensity of this segment is increasing at a continuous basis. As such, more market share is likely to be gained by targeting this segment. The market segment for Wal-Mart coffee is the low to medium income groups of customers in the United States. The off brand product of coffee manufactured by Wal-Mart is aimed at competing with the premium brands like Starbucks and Costa Coffee on the basis of low pricing strategies. The main factors affecting this segment of the market are pricing decisions, value for money and new entrants in this segment. The chosen customer segment is price sensitive. The people who look for value for money and high quality at low prices are likely to buy this product. As such, competitive pricing is critical for marketing a product in this segment. This sector is identified as a profitable sector in US which has caused more companies to enter into the low priced coffee products segment. This is expected to increase the competition level in the segment.The reference group that influence this market segment is the early majority group as identified from the product diffusion curve. This reference group would be suitable for promoting Wal-Mart coffee because it is an existing product recognized and already adopted by certain groups of users. The diffusion rate for Wal-Mart coffee in order to make it prominent on a national level would be high. Extensive advertising is done to increase the visibility and awareness of the product. The diffusion inhibitors may be the prevailing negative perceptions of the consumers about using non branded products. However, the diffusion determinants would be the perception of high value derivation form low prices. The customers in the early majority reference group are less willing to take risks and often take their purchasing decision based on good will and positive customer reviews. Therefore, Wal-Mart should try to promote its coffee through the use of the review given by the peer customers.Wal-Mart coffee is an off brand coffee range. It is evaluated to be of high quality. Many customers are of the opinion that Wal-Mart coffee is of as good taste as Starbucks coffee. Since, it is a private label product of Wal-Mart; therefore, it is priced at a lower rate than Starbucks coffee to make it more competitive and value for money product in the market. Wal-Mart coffee is priced at a low USD 3.88 as compared to Starbucks coffee which starts
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