Wilkinson is one of the UK’s long-established retailers of a wide range of food, home, garden, office, and health and beauty products. Wilkinson currently has over 300 stores, which carry an average of 25,000 product lines. 40% of these are Wilko ‘own-brand’ products. The company’s target is to see this element grow and to have over 500 stores by 2012.

Recently it has faced increasing challenges from competitors, such as the supermarket sector. Wilkinson needed to combat this and identify new areas for growth. Over two years it conducted extensive market research. This has helped it create a marketing strategy designed to continue growing by targeting a new market segment - the student population. This case study focuses on how Wilkinson created and implemented this strategy, using the findings of its market research to drive the strategy forward. Based on its research, Wilkinson committed to a market development strategy to sell its products to a new audience of students. This is a medium risk strategy as it requires the business to find and develop new customers. It also carries costs of the marketing campaigns to reach this new group. The main focus of the strategy was to increase awareness of the brand among students and encourage them to shop regularly at Wilkinson stores.

Market research

Wilkinson undertook primary market research using questionnaires from students across the UK and secondary research using government and university admissions data. The statistics revealed that there were three million potential student customers. They had a combined annual spend of around £9 billion per year. This research confirmed that the choice of focusing on the student market as a means of growth was valid. Wilkinson undertook further research to identify how to reach students and persuade them to start shopping at Wilkinson stores. This information was used to formulate a focus strategy. This was aimed specifically at the needs of the student ‘market segment’.

Marketing to students

Wilkinson involved 60 universities in research, using questionnaires distributed to students initially in Years 2 and 3 of a range of universities and then to ‘freshers’ (new students) through the University and Colleges Admission Service. This ensured the widest range of students was included to eliminate bias. It also gave a wide range of responses. From this initial group, students were asked a second set of questions. Participants were rewarded with Amazon vouchers to encourage a good take-up. The research focused on two areas:

student awareness of the Wilkinson brand and

Reasons why students were currently not using the stores regularly.

The aim was to ensure the student population began shopping at Wilkinson stores early in their student experience. A marketing campaign was launched which focused on a range of promotional tactics, specifically designed to appeal to university students:

Wilkinson being present at freshers’ fairs – and giving free goody bags with sample products directly to students

direct mail flyers to homes and student halls, prior to students arriving

advertisements with fun theme, for example, showing frying pans as tennis racquets

web banners

offering discounts of 15% with first purchase using the online store

Gift vouchers

Free wall planners.

Outcomes:

Wilkinson wanted to know what would inspire students to shop at Wilkinson more and what factors would help to attract non-customers. The research provided significant primary information to analyse the effects of the campaign. Wilkinson used questionnaires collected from the first year undergraduates to gather qualitative data. In addition, Wilkinson obtained quantitative data from various other sources, including:

redemption rates – how many people used the discount vouchers when buying

sales analysis – how much extra business did the stores handle

This information helped Wilkinson to develop its plans for future marketing campaigns. It identified Motivation factors for the student audience which would help to encourage future purchase. Key factors included products being cheaper than competitors and easy access to stores. 23% of students questioned gave ‘distance from university’ as a reason for not regularly visiting the store. The layout of the store was another major problem affecting repeat visits. These findings have been taken on board by Wilkinson in its future planning of store locations and layouts.

Awareness of the Wilkinson brand had significantly risen from 77% to 95% of those interviewed. This brought it in line with Morrison supermarkets, a key competitor.

Answer the following questions

What is the difference between primary and secondary research? Identify one example of primary and secondary research carried out by Wilkinson.

Explain why Wilkinson needed a marketing strategy to help them to grow.

Evaluate the benefits of the marketing campaign to Wilkinson.

Analyze how effective the marketing campaign was in helping Wilkinson respond to competitive pressures.

Question

Wilkinson is one of the UK’s long-established retailers of a wide range of food, home, garden, office, and health and beauty products. Wilkinson currently has over 300 stores, which carry an average of 25,000 product lines. 40% of these are Wilko ‘own-brand’ products. The company’s target is to see this element grow and to have over 500 stores by 2012.

Recently it has faced increasing challenges from competitors, such as the supermarket sector. Wilkinson needed to combat this and identify new areas for growth. Over two years it conducted extensive market research. This has helped it create a marketing strategy designed to continue growing by targeting a new market segment - the student population. This case study focuses on how Wilkinson created and implemented this strategy, using the findings of its market research to drive the strategy forward. Based on its research, Wilkinson committed to a market development strategy to sell its products to a new audience of students. This is a medium risk strategy as it requires the business to find and develop new customers. It also carries costs of the marketing campaigns to reach this new group. The main focus of the strategy was to increase awareness of the brand among students and encourage them to shop regularly at Wilkinson stores.

Market research

Wilkinson undertook primary market research using questionnaires from students across the UK and secondary research using government and university admissions data. The statistics revealed that there were three million potential student customers. They had a combined annual spend of around £9 billion per year. This research confirmed that the choice of focusing on the student market as a means of growth was valid. Wilkinson undertook further research to identify how to reach students and persuade them to start shopping at Wilkinson stores. This information was used to formulate a focus strategy. This was aimed specifically at the needs of the student ‘market segment’.

Marketing to students

Wilkinson involved 60 universities in research, using questionnaires distributed to students initially in Years 2 and 3 of a range of universities and then to ‘freshers’ (new students) through the University and Colleges Admission Service. This ensured the widest range of students was included to eliminate bias. It also gave a wide range of responses. From this initial group, students were asked a second set of questions. Participants were rewarded with Amazon vouchers to encourage a good take-up. The research focused on two areas:

student awareness of the Wilkinson brand and
Reasons why students were currently not using the stores regularly.

The aim was to ensure the student population began shopping at Wilkinson stores early in their student experience. A marketing campaign was launched which focused on a range of promotional tactics, specifically designed to appeal to university students:

Wilkinson being present at freshers’ fairs – and giving free goody bags with sample products directly to students
direct mail flyers to homes and student halls, prior to students arriving
advertisements with fun theme, for example, showing frying pans as tennis racquets
web banners
offering discounts of 15% with first purchase using the online store
Gift vouchers
Free wall planners.

Outcomes:

Wilkinson wanted to know what would inspire students to shop at Wilkinson more and what factors would help to attract non-customers. The research provided significant primary information to analyse the effects of the campaign. Wilkinson used questionnaires collected from the first year undergraduates to gather qualitative data. In addition, Wilkinson obtained quantitative data from various other sources, including:

redemption rates – how many people used the discount vouchers when buying
sales analysis – how much extra business did the stores handle

This information helped Wilkinson to develop its plans for future marketing campaigns. It identified Motivation factors for the student audience which would help to encourage future purchase. Key factors included products being cheaper than competitors and easy access to stores. 23% of students questioned gave ‘distance from university’ as a reason for not regularly visiting the store. The layout of the store was another major problem affecting repeat visits. These findings have been taken on board by Wilkinson in its future planning of store locations and layouts.

Awareness of the Wilkinson brand had significantly risen from 77% to 95% of those interviewed. This brought it in line with Morrison supermarkets, a key competitor.

Answer the following questions

What is the difference between primary and secondary research? Identify one example of primary and secondary research carried out by Wilkinson.
Explain why Wilkinson needed a marketing strategy to help them to grow.
Evaluate the benefits of the marketing campaign to Wilkinson.
Analyze how effective the marketing campaign was in helping Wilkinson respond to competitive pressures.

Accepted Answer

The above case study is the Wilkinson Marketing Case study.
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