“Look Good, Pay Less”
Market segmentation variables include geographic, demographic, psychographic and behavioral segmentation. Geographically, there is no need to segment Singapore’s market, unlike its other geographic locations like the UK, due to our small size. Therefore, this point is moot as one or two sufficiently large and separate stores (so not to cannibalize sales) should be large enough to capture the market geographically.
Primark’s main segmentation of Singapore will be demographic segmentation. Its …show more content…
As mentioned above, Primark’s target market makes up a large portion of Singapore’s population. Furthermore, the unstable economic climate means that increasingly price-sensitive customers are likely to look to Primark’s low prices in order to satisfy their needs. The buying power of the customers therefore remains high.
For suppliers, Primark has out sourced 90% of the its manufacturing to developing countries like Bangladesh, India and China for its basics, and Turkey and Europe for its “fast fashion”. Having spread out its suppliers over multiple countries means that Primark has minimized the bargaining power of each supplier. It is notable that Primark’s main suppliers, like China and Bangladesh, are in very close vicinity to Singapore, potentially saving large amounts in shipping.
Requirements for Effective Segmentation
— Measurable: Examples include the size, purchasing power, and profiles of the segments
Accessible: Refers to the fact that the market can be effectively reached and served
Substantial: Refers to the fact that the markets are large and profitable enough to serve
Differentiable: Refers to the fact that the markets are conceptually distinguishable and respond differently to marketing mix elements and programs
Actionable: Refers to