You are the principal of the marketing firm hired by Amazon.com to create a new
ID: 1133534 • Letter: Y
Question
You are the principal of the marketing firm hired by Amazon.com to create a new marketing plan in light of the acquisition of Whole Foods. When preparing the new marketing plan you should use the grocery category as your context.
Primary Market Analysis-Who is in the primary market for the company?
What are their demographic characteristics
What benefits do customers want?
Does the market possess any special lifestyle /psychographic characteristics?
What is the size and growth rate of the market?
Secondary Markets-Are there smaller markets worth going after (see above for relevant questions)
Explanation / Answer
Product of a company: Whole foods
Primary market: All supermarkets, Grocery sellers and online grocery sellers in a specified location.
Demographic charactristics: Number of male/female, agewise population distribution, religious spread, average income, Mode of shopping : Online or offline.
What benefits do customers want: To get this data data collection is necessary. Following techniques for data collection can be used:
1. Primary data(to be collected by market researcher) : a. Questionnaire(online/offline), Personal interviews, Expert opinion
2. Secondary data (available in magazines, journals, newspapers etc): Data by different comapnies about consumption patterns, annual turnover, people trends and preferences of shopping, market share and market potential data.
To study any special/psychographic charactristics of market: Data collected through methods explained above is analysed properly and proper documents are maintained to refer in future.
Size and market growth rate: demographic and census data,profit and loss statements of companies operating in that area, government publication of inflation, banks data of lending and borrowing from market area under study.
All these methods will give clear picture of market growth rate and market size.
Secondary markets:this is market in which an alternative use of existing product is made. Example: Corn is used for food production mainly but in a secondary market it can be used for making ethanol.
Similarly many whole foods have usage on theses secondary markets and it should be explored to be sure of returns on capital. This informaton can be gathered by market research.
1. Interviews, expert review, competitor strategy analysis can be done in this case.
Also government involvement in purchasing some kind of goods should also be explored to be sure of alternative markets.
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