4 Chris Jones is Managing Director of Supaserve, a medium-sized supermarket chain faced with intense competitionfrom larger competitors in their core food and drink markets. They are also finding it hard to respond to thesecompetitors moving into the sale of clothing and household goods. Supaserve has a reputation for friendly customercare and is looking at the feasibility of introducing an online shopping service, from which customers can order goodsfrom the comfort of their home and have them delivered, for a small charge, to their home.Chris recognises that the move to develop an online shopping service will require significant investment in newtechnology and support systems. He hopes a significant proportion of existing and most importantly, new customers,will be attracted to the new service.Required:(a) What bases for segmenting this new market would you recommend and what criteria will help determinewhether this segment is sufficiently attractive to commit to the necessary investment? (10 marks)
4 Chris Jones is Managing Director of Supaserve, a medium-sized supermarket chain faced with intense competition
from larger competitors in their core food and drink markets. They are also finding it hard to respond to these
competitors moving into the sale of clothing and household goods. Supaserve has a reputation for friendly customer
care and is looking at the feasibility of introducing an online shopping service, from which customers can order goods
from the comfort of their home and have them delivered, for a small charge, to their home.
Chris recognises that the move to develop an online shopping service will require significant investment in new
technology and support systems. He hopes a significant proportion of existing and most importantly, new customers,
will be attracted to the new service.
Required:
(a) What bases for segmenting this new market would you recommend and what criteria will help determine
whether this segment is sufficiently attractive to commit to the necessary investment? (10 marks)
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