1. Explain, based on the information given in the article and what you have learned why Webvan failed. Incorporate the following concepts in your explanation: (a) The marketing concept; (b) Market segmentation; (c) Identification of target market (s); (d) Size of the target market (s); (e) Consumer behaviors; (f) Strategy (a) Marketing concept: Webvan did not follow the marketing concept. The company failed to determine how many consumers will shop online regularly. (b) Market segmentation: Webvan didn’t meet the substantial criteria of a good market segment. The segment is too small to make profit.
(c) Identification of target market (s): Webvan aimed at the demographic target market of people who are full-time workers, shop to take care of families. However, the company misestimate of the size of its target market. (d) Size of the target market (s): Webvan had a small target market. The target market is too small for the company to make profit. The size of the target market should be big enough to be profitable. (e) Consumer behaviors: People seek information related to the purchase of major supermarket categories, but only few actually purchase these categories online.
Shoppers will never buy fruits and vegetables unless they can touch and smell them in a real-world store. Also, shopping grocery online required advance organization, and people don! |t usually do that. Therefore, its customers hardly became stable. (f) Strategy: Webvan overbuilds its infrastructure and overspends.
The Essay on Segmentation and Market Target
To obtain success, and then retain success, organizations need to determine which market segments to focus (Kotler & Keller, 2012). Additional consideration is necessary to ensure that the organization can effectively serve this market segment. According to Kotler and Keller (2012), the finest marketing plans identify and embrace segment differentiation by determining the demographic, ...
Furthermore, it failed to recoup the real cost of home delivery. High overhead lower its profit and cause the business to fail. 2. How Can the market for grocery products be segmented? Give, at least, ten different ways, each with examples of typical market segments. Include and highlight six ways of segmenting the market that are not given in the text Typical Market Segments: Examples: 1. Benefits sought Service, convenience, speed 2.
Gender Female 3. Family life-cycle Married with children 4. Usage rate Heavy users (Frequency of use) 5. Occupation Full-time Professional career 6. Needs/Motivations Product, convenience 7. Type of customer final consumers 8.
Decision maker Female (usually mothers and wives) 9. Population density Urban 10. Customer relationship opportunity Strong loyalty to the vendor 11. How the product will be used Daily supply for personal use 3. What are the six (6) most important segmentation bases for a company such as Webvan? The six most important segmentation bases for a company like Webvan are benefits sought, usage rate, family life-style, needs and motivations, population density, and customer relationship opportunity..
