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Mkt 571 Market Segmentation

In: Business and Management

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Segmentation and Target Market Paper

MKT 571

November 20, 2011

Introduction

A market segment consists of a group of customers who share a similar set of needs and wants. The major segmentation variables by different sets of characteristics such as geographic, demographic, psychographic, and behavioral. (Kotler and Keller, 2012) Using this market-based strategy assist marketers to study the behavior of shoppers by categorizing markets. It also provide marketers a better vision to satisfy the needs and wants of customers and to gain more of their business. In this paper, I plan to discuss the market segments and target market of the small box discount retailer Dollar General, a retailer of name brand and private label products.
Company Background

J.L Turner and Sons Wholesale opened up their first store in 1939. Located in Scottsville, Kentucky, J. L. Turner and his son Cal Turner Sr. invested $5,000 each to begin a new partnership in dry goods as wholesalers selling to retailers. In 1945, the partners used a taunting strategy to gain business of farmers that landed success in the retail business. The luring strategy he used offered farmers from the tobacco field a free left-hand glove when they cashed their check, and offered the other glove if the farmers came to their stores. This unique strategy attracts the business of the farmers for additional items needed directly on pay day. After much success, the Turners converted a department store to the first Dollar General in 1955 and all items priced at a dollar or less. Years later, Dollar General accounts for nearly 11,000 stores with the average items costing ten dollars or less. The retailer also expanded its product line in selling everyday needs, such as cleaning, health, beauty, food, baby needs, apparel, house hold,…...

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