Organized Retail Grocery Market Segmentation

Organized retail grocery companies normally aim at the mass marketing segmentation.
Through a careful mass marketing segmentation strategy, retailers use their resources and
capabilities to position themselves more effectively and achieve differential advantage. The
excellent growth in number of organized stores in recent years is largely due to their ability to
define precisely the type of customers, they want to serve. Great range of items sold by the
firm, all kind of customers can be in one way or another need a product sold by organized
grocery retail store like Arambagh’s, Spencer, Reliance Fresh etc. The profile of the targeted
customer is very large, and they are willing to buy its products under the lowest price
possible and under one roof. The middle-class price-sensitive customer with a family of 2 to
6 members is the most likely to go buying in organized retail grocery store. Organized retail
grocery store has a great ability to market its products in unique targeted ways. The firm is
following a mass marketing strategy, which means segmenting and targeting the markets
accurately by offering products which they are willing to purchase and then tailoring offers to
match the demands of those segments. The retailer uses a Modular Category Assortment
Planning System (MCAPS), which examines store traits and historical selling data to plan the
layout of products to best suit a particular market. This type of data helps the organization to
find the purchasing patterns of mass targeted customers.
The convenience of one-stop shops played a big role in doing mass marketing segmentation
and drive growth for organized grocery retailing in India. The number of organized grocery
outlets has increased at the rate of 60 per cent from 2010 to 2020. Customers, in India, are
now indulging in grocery shopping in a more enthusiastic and involved manner than ever
before. Mass marketing has helped the industry to force a large section of customers to opt
for organized grocery retail outlets as their preferred destination for grocery shopping. They
desire that their money should be saved by getting different kind of offers and time should
not be wasted while shopping. Rise in disposable income, paucity of time, increased desire
for convenience, changing lifestyle is attracting consumers to organized grocery shopping as
they keep variety of products for every segment of the consumers. Example – Chocolates for
kids, Pasta, soups, cold drinks for young consumer’s, oil, wheat, rice ,vegetables for every
section of customers , beauty products for woman and men , etc . By keeping products for all
segment of customers they able to do successfully implement mass segmentation marketing
strategy.