This essay would utilize Selfridges Company in the analysis of target market and pricing. Selfridges Company is a chain of departmental stores located in the United Kingdom. The Company was opened in 1909, and it is the second largest shop in the UK. It operates as a private Company in the UK, and it is headquartered at Oxford Street in London.
The Company’s targets all individuals in society. It does not have a specific target market, because it offers a wide range of products and services that are utilized by different individuals in the UK. The Company is designed to satisfy the needs of all its customers. It offers products and services for all categories of individuals hence ensuring that it targets everyone in society. Pride et al. (2011, p 55) asserts that the Company carries out intensive advertising in order to ensure that all members in society are informed of the various products offered. This is vital because it enables people know the new products that are brought by the Company into the market. In addition, the Company engages in heavy advertisements in order to attract newer customers who in turn increase the target market.
The current customer profiles at the Company are created basing on different issues that include location, gender, income and age. According to the customer`s profile, most of the Company’s customers are located near the business. Most of those customers who come from other areas are the Company’s loyal customers who must buy commodities from the Company. The identification of customers by location has assisted in promotion campaigns, and the popularization of the Company’s products to other areas in the UK. Customers are also profiled according to their ages. A large number of the Company’s customers are adults. Furthermore, most customers at the Company are middle-income earners hence contributing a bigger part of the overall profits. Both genders contribute equally to the Company’s customer base.
The Company is keen on attracting and retaining more customers. According to Pride et al. (2011), the Company offers a wide variety of products ranging from menswear, womenswear, food, accessories, home products, and child products. These products are priced at cheaper prices compared to the real market prices. Discounts are offered with a view of attracting more customers and retaining the existing customers. The Company uses discounts on products as the key pricing strategy in order to win a large market share and attract more customers to consume different products which are offered.
The assortment width and length of the Company are superb. This is because Selfridges offers different lines of products to its consumers. Pride et al. (2011) reports that Selfridge Company offers product lines that include home products, accessories, and clothing. This means that, it has a superb width in its product mix. Customers are in a position to access most of the products they require under one roof, which promotes convenience. The assortment length of the Company is also excellent as the Company offers different versions of products. Different versions ensure that customers are satisfied according to their needs.
The current buying and merchandising strategies are superb, because they have ensured that products are always available for sale. In fact, these strategies have contributed immensely to the profits generated. The current price points at the Company have led to mega sales. They have contributed in attracting customers to the Company and retaining regular ones. The price points have increased profitability due to the increased sales that are witnessed. The current pricing strategy at the Company has helped in the generation of adequate profits. This is because most of the Company’s products are priced below those determined by market forces. This has boosted its performance, and it is the second largest retail shop in the UK.