Segmenting Markets
is a strategy used by companies to improve their market share, competitive
advantage and profits. According to my marketing text, “Market segmentation is
the process of dividing a market into meaningful, relatively, similar and
identifiable segment or groups”. In other words, the process in which a company
tries to breakdown its larger target market to a smaller, with “more homogeneous
groups of customers that you can more efficiently market to”. However, effective
market segmentation definitely requires a good understand of the market, and
the rightful skills to select the appropriate segment(s).
As for Duane
Reade, a chain store well known over the years as ‘drug store’ appears not to
be what it used to be, seen beyond just ordinary drug store. Duane Reade is a
good example of companies that have chosen a good, viable and effective market
segment to further expand its market share, competitiveness and profitability. A business and market savvy person would want to agree to the fact that the effective and rightful market segment determined and chosen by Duane Reade, was the key success to its business.
Duane Reade-
Demographics Market Segmentation
This is one market-segmentation that has helped Duane-Reade, a chain store known to be a
drug-store to breakdown its larger target market into subgroup, based on age,
gender, race, occupation, marital status, and income earners. Going to most Duane Reade stores today, you’ll find out that it now offer several products mix,
said to target people of different age, race, gender, occupation or even income
earners. Duane Reade coming out with the idea of ‘New Look’ in its stores is
one way to depict a good demographic market segmentation i.e. which targets both genders of all any age
group. The new look section offers various products such as body creams, facial
scrubs, colognes/perfumes, cleansers, soaps, shaving sticks, shampoos,
conditioners, deodorants, hair-creams for both
female and male of any age group; also a product line of feminine hygiene
products, contact lenses treatments, safe sex products(latex/condoms) in other sections. Duane
Reade not only carry product line for adults, there are various product items for babies such as baby food, creams, diapers,
and household in its entirety i.e. selling products like mops, mop can, bulbs,
power surge, rug sweeper etc. There are other sections in the store that
deals with various food items and beverages. All these can be said to target
people of different age group; as we all know, that food is a necessity of life. Having mentioned all these, anyone can agree and see why Duane Reade is gaining market share, maintaining a sustanable competitive advantage and viable market dominance over the years especially in a city like New york, rich in cultural diversity.
