Market Analysis : Customer Segmentation Essay

1465 WordsNov 26, 20166 Pages
All organizations must strive to market and maintain good relations with customers, thus the reason Carrefour decided to segment its customers to cope with hyper markets. The management at Carrefour chose to get involved in customer segmentation because the process expands the retail chains through a constantly delivering augmented value, convenience, quality, and brand variety in its product and services. Segmentation was also a solution to their efforts of satisfying the needs of UAE clients as well as putting Carrefour at an advantaged position in the competitive Middle East region. Carrefour opted to practice segmentation to start giving clients points for every particular amount of money regarding cash spent to purchase products in Carrefour retail stores. Segmentation has several importances, thus the reason Carrefour decided to make use of it. One, segmentation creates potential clients and also helps to retain the existing ones (French, 2016). Two, it elevates the sales of an organization which directly influences profits because the more the sales, the more the returns (French, 2016). The third importance is that it is a better tool for promoting products and services in a firm, just like it does in Carrefour (French, 2016). The fourth point illustrating the importance of segmentation is that it enhances awareness in marketing in a company among the retail clients that later elevates market shares and the marketing images of an organization. Segmentation also leads
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