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Dmart Has Restricted Segmentation. This Makes Dmart More Profitable Than Others

Dmart segments its customers based on location, income, and psychology. Most stores are located in eastern and southern India to be near lower to middle income customers. Dmart targets middle income families by locating stores in residential areas rather than malls and aims to meet most common needs at low prices. Dmart positions itself as cheaper than competitors while also offering online shopping, building a strong brand known for low prices that has increased its market size.

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0% found this document useful (0 votes)
723 views1 page

Dmart Has Restricted Segmentation. This Makes Dmart More Profitable Than Others

Dmart segments its customers based on location, income, and psychology. Most stores are located in eastern and southern India to be near lower to middle income customers. Dmart targets middle income families by locating stores in residential areas rather than malls and aims to meet most common needs at low prices. Dmart positions itself as cheaper than competitors while also offering online shopping, building a strong brand known for low prices that has increased its market size.

Uploaded by

Akash
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© © All Rights Reserved
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STP

SEGMENTATION

1. BASIS OF LOCATION
Dmart have strategically designed their geographic locations according to customer needs
and
Most of the stores have been allocated in eastern to southern regions
And financial capital ; Mumbai holds 35% of total stores.

2. BASED ON INCOME
Dmart have classified their customers on basis of lower to middle income groups
So that it can increase their market share.
Average Indian income 1,92,000*
Lower income range LESS THAN 1,00,000*
Middle income range 2,00,000 to 10,00,000*

*ALL FIGURES ARE IN ANNUM

3. BASED ON PSYCOLOGY
Because most consumers like having all of their products in one area and at a lower price,
Dmart caters to this need. This element influences consumers' purchasing behavior, causing
them to buy more.

DMart has restricted segmentation. This makes DMart more profitable than others

TARGETING
Dmart is aimed at middle-income families, and all of its outlets are located in or near
residential neighborhoods rather than malls.
DMart's objective is not to cover every consumer need, as some of its competitors do, but to
meet the majority of common consumer needs while delivering good value for money.
The majority of DMart's customers are middle-income families who enjoy pricing, value for
money, and special deals and discounts.

POSITIONING
POINT OF DIFFERENCE POINTS OF PARITY
 Cheap price  E-retailing

In the retail sector, dmart has a high brand value, and it has positioned its brand with a
unique marketing approach of offering consumers the lowest prices possible. This allows
dmart to increase its market size.

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