Customer Analysis
Kroger is a large grocery chain which has stores all over the U.S. They bring in many different types of customers due to their wide spread location. In this section, a customer analysis will be broken down into three main components which are: Customer characteristics, consumer demands, and market segments.
Customer Characteristics
A study done in 2014-2015 by infoscout has determined that the main demographic that shops at Kroger are usually in the age group of 65 years and above. These people who shop here tend to earn about 80 – 100k a year and have an advance degree. The reason why Kroger has an older customer base is because they have always marketed loyalty. Kroger is one of the oldest grocery store chains and specifically rewards their customers for being there with them. To reward their loyalty, Kroger has been known to send out “two sheets of twelve coupons specifically designed for each household. They are tailor-fit to each of the store’s customers based on their purchases.”(Bobnak) However,
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Nancy from Forbes magazine writes, “All demographics—from Generation Z to Baby Boomers--say they would pay more for healthy foods, including those that are GMO-free, have no artificial coloring/flavors and are deemed all natural.”(Gagliardi) “By late 2010, surveys indicated that 93% of consumers had changed their grocery-shopping habits because of the economic downturn, and many of them did so by trying out more store-branded goods, sampling everything from generic shampoo to generic frozen pizza.” (Tuttle). Kroger had seen this trend and had acted upon this by creating their own line of organic foods. Kroger had even noticed the potential in the online shopping by “allowing Kroger customers to order online and pickup their goods at store locations.”(Thangavelu) So in efforts to increase sales, Kroger had implemented quite a few marketing