Project Report on Retail Mix of Kids & Mom Bazar

...

Table 1: Target Segment of Kids & Mom Bazar

(Source: Kids & Mom Bazar, 2016)

Segmentation Type

Segmentation Details

Demographic Segmentation

Age – Kids & Mom Bazar segmented its product according to the customers’ age. That’s why the company targeted customers who are kids and age is very low. On the other hand, Moms are also being targeted to buy their necessary products.

Gender – Mainly, female customers are more attracted than male customers. As because, the main products of the bazar are toys, kids shoe, female dress, kids bags etc., so it can be measured that the company mainly targets female customers.

Life Cycle – In this stage, the kids who are aged in between (4-12) they are being targeted for consuming food products, baby products and on the other hand those who are aged above 40 or those who are Moms gets their desired dresses or jewelry from the market.

Psychographic Segmentation

Lifestyle – It is known that lifestyle involves classifying people according to their values, beliefs, opinions, and interests. By maintaining values and interest, the company produces product, takes orders and delivers it to the customers. Customer can share their opinion to the company for further improvement.

Values & Attitudes – Customers attitude and attention plays a vital role to consume any particular product. Kids & Mom Bazar gives importance to the customer attitudes so that it creates value to the customers. The company sells baby items and it has an emotional attachment towards customers. Moms also gets attached to their necessary items. So, it is a good idea to segment by this term.

Social Class – Social class in Bangladesh includes upper class, middle class and lower class people. However, middle class and lower class people are mostly the customers of Kids & Mom Bazar. In fact, Kids & Mom Bazar differentiated its products for the babies and moms at a decent price range according to the lifestyle of customers. Products price of baby shoes may range from BDT. 500 – BDT. 2000. Jewelry for the moms may range from BDT. 1400 – BDT. 5000. It also depends on the quality of the products.

Personality – Different people maintains different personality. Some may like gold jewelry or some may like diamond jewelry. To cope with that challenge the bazar has kept both types of jewelries in its market. It helps the female customers to buy their desired products. Some people also wants to buy toys for their children to give entertainment. The price range is about BDT. 300 – BDT. 1500. However, personality based segmentation is a good way to approach the customers.

Behavioral Segmentation

Occasional Sell and Benefits – The company gives extra benefits while it is Eid, Puja or any other Holy Occasions. For Pahela Baishakh or for New Year Celebration the company gives extra benefits and packages offer to grab customer’s attention towards the products to sell more.

Loyalty – Some customers such as few females or moms are always addicted to specific brands. There are lots of moms who just likes to visit this shop because without any hazard they can buy their baby materials, shoes or personal jewelries at a cheaper rate. These loyal customers are being targeted by the company so that they can add more value and can produce extra benefit from the customers.

Geographic Segmentation

Regions – Kids & Mom Bazar is situated near Shewrapara Bus Stand and this particular area covers a lot of middle class and lower middle class people. To make profit and also to make customers growth rate in an extensive way the company decided to make its main branch in Shewrapara, Dhaka. Many people, babies, moms are always their regular customers and it helps to generate revenues. However, this is a good segmentation technique adapted by the company authority.

Cities & Location – The company has only 1 branch in Shewrapara because of its location facility. The company is trying to generate more revenue so that in future they can target any place where many people stays for their livelihood because it will help to generate more revenue for them. The more the kids or moms, the more the earnings will get increased for the company.

[pic 13]

Existing Retail Mix of Kids & Mom Bazar and major shortcomings of each retail mix components

Location:

There is only one store for Kids and Mom Bazar and that is situated in Shewrapara Bus Stand, Mirpur. Kids and Mom Bazar target children as well as women. Not only that they have products for adult boys and girls in small category. Kids and Mom bazar basically target them because most of the time women are decision maker for their children. So, women who can afford Kids and Mom Bazar products will be target customer. From census report, we know income per capita is high in Dhaka than any other city of Bangladesh and most of the middle and rich people live in Gulshan, Dhanmondi, Uttara, Banni.

So Kids and Mom Bazar needs to choose any of these area. But Kids and Mom Bazar choose Mirpur for their store where middle income and rich people are less. They use kind of freestanding method for selecting location. Although cost of operating is low compare to those place and there is no store around Kids and Mom Bazar who can provide such varieties of products like Kids and Mom Bazar. Also there is no zoning and building codes restriction. But we know the traffic situations in Dhaka, it will take lot of time to reach Mirpur from those places. Also there is no parking facility in Kids and Mom Bazar for customers. These entire things discourage to customer from patronizing the store. But because of low operating cost they enjoy competitive advantage than others retail brand outlets.

Pricing:

Pricing is the important components of retail mix. Kid n Mom bazar takes this component very seriously to communicate with their ultimate customers. They use both cost oriented and competitive pricing strategy for reaching their customers. They maintain a special relationship with vendors and manufacture that will facilitated them to get quality products with low price. As well they have low cost operating cost because of low rent cost so they can set a price that ensure their profit