Lee Valley Segmentation Essay

1505 WordsFeb 2, 20137 Pages
Lee Valley Segmentation: Gardening Introduction Background Lee Valley——a family-owned business which has been providing customers of woodworking and gardening tools since 1978.Their reputation is based on three principles: 1. Customer satisfaction: Any product may be returned within 3 months and no cost to the customer (for shipments within North America, they will refund your return parcel post costs). 2. Integrity: Product descriptions are matched with the product——even if the product is roughly made, they will give you accurate descriptions. 3. Treat the customer like a friend. “About one third of their total sales volume is in products of their own design. The vast majority…show more content…
Potential users are people who are intending to access to the market but still with different reasons of hesitation or lacking of stimulation. Ex-users are those who used to purchase gardening tools in the past or 2. Intensity of use In the “Pareto’s Law”, 20% of the customers are heavy users but the remaining 80% are only light users. That indicates companies should emphasis on the most valuable group of customers who are come from the 20%.It dosen’t mean the rest parts are non-essential. Frenquency of order in terms of the climate where the customers live as well as the purpose of purchase. 3. Innovativeness Since 2000, there has been a double-digit growth in the e-commerce sector; statistics have shown that more than 80% of regular online shoppers have used Internet to purchase products or services, while 50% of the online population recorded to have shopped online more than once. According to statistics from Invesp Blog, shoppers by age group is as follows: 18-30 years (54%), 31-44 years (68%), 45-54 years (64%), 55-65 years (68%), 66 years and up (48%). Teens and the young generation find entertainment and social networks online, whereas older generations use the internet as a tool for research, shopping and banking. According to statistics researched in 2009, Generation X (internet users ages 33-44) continues to lead in online shopping. Fully 80% of Generation X internet

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