Consumer Demographics of the Tesco Customer
Consumer demographics or segmentation is the identification of subsets of buyers who have similar needs and exhibit similar buying behaviour. Understanding the shopper, and the consumer is key to targeting particular groups in relation to activities such as pricing, promotions, range, and advertising. Tesco have researched hard into their shoppers and produced the following to help you understand the Tesco customer, also known as the ‘Tesco Five Families’:
Focussing on one, very important, strand of segmentation, Tesco have identified 5 distinct ‘Family’ types or demographics, as described below:
1. Tesco Customer – Pre-Family – aka. Roshni
- The lives of people in this segment are, as we might expect, characterised by youthful spontaneity, less routine. A focus on career progression in these formative years and, of course, social media.
- The effect of this profile on Food consumption is an over index on ‘eating out’ and ‘grab & go’.
- For Leisure, this segment is typified by low-cost travel, exercise, music and pubs & bars.
- Crucially, the impact on, and learning for, Tesco is that this group tend to shop less often for groceries. Preferring closer and convenient stores for their spontaneous lifestyle. As a consequence, loyalty, to any particular retailer, is low.
- To meet the demands of this audience, and build loyalty for these ‘families of the future’. Tesco provide the Express and Metro formats. This enables Tesco, for example, to deliver well priced fresh food solutions rather than just ready meals.
- Stepping up awareness, and usage, of online click & collect, is also a key pillar in engaging with this demographic.
2. Tesco Customer – Lower Affluent Families – aka. The Wicks
- In contrast to ‘Pre-Family’, Lower Affluent Families are, by definition, less well-off. So their lives are dominated by fiscal restraints and having to maintain a tight budget.
- As a result, this demographics group tends to shop groceries (as opposed to Convenience) more frequently to keep within family budgets. Shopping trolleys are characterised by cheap and convenient products and, at meal times, there is a propensity for the family to eat different meals at different times.
- Leisure time is a luxury and tends to be special nights at home, or simple relaxing holidays.
- To gain loyalty from this group, Tesco have to deliver a strong price promise whilst also providing range and choice. This is particularly true of the larger stores as the more convenient formats tend to be perceived as having a price premium.
3. Tesco Customer – Higher Affluent Families aka. The Mayers
- The pressures on ‘Higher Affluent Families’ are, counter intuitively, not as different to the ‘Lower Affluent Families’ as we might expect. Balancing budgets, navigating through busy working lives, similar routine of grocery trips and looking after a family are universal traits.
- But the difference lies in this group’s choice of quality, nutritional and healthy food options. As opposed to cheaper and more convenient products.
- The internet features heavily in the lives of the people in this group, as does quality down time in the form of holidays and travel.
- Tesco caters to this demographic well, as it does for the ‘Lower Affluent Families, in areas such as price, range and choice. This, more affluent group, however, have a higher satisfaction threshold in areas such as being able to park, or levels of store hygiene or the quality of top up shops. It is in areas, such as this, where Tesco will win with this group.
4. Tesco Customer – Lower Affluent Post-Families aka. Carol
- Life becomes simpler for the people in this demographics segment but, with more time, bargain hunting remains an uppermost activity.
- The routine of shopping is seen as an activity, in itself, to maintain an active lifestyle and can be daily, and often in the local community.
- The impact on food is that local ingredients play a part and, so too, does simple cooking with limited recourse to frozen food.
- Leisure is characterised by simple pleasures and, can include, aforementioned shopping trips.
- Media consumption contrasts with other groups and tends to be traditional TV and Radio mediums.
- Shopping locally can mean small format stores which, in turn, is perceived as expensive and offering a more limited range. This is a challenge for Tesco and they need to offer right prices for small pack sizes and, very importantly, a friendly local service.
5. Tesco Customer – Higher Affluent Post-Families aka Dawn
- This demographics group contrasts markedly with the ‘Lower Affluent Post-Families’, as we would expect. Indeed, they are the outlier to all the other groups in that they tend to, now, have money and time to socialise, travel and enjoy good food.
- With careers drawing to a close, the emphasis moves to developing a varied lifestyle of interests and renewed learning, with an overarching feeling of relaxation and contentment.
- With Food, this group will tend to choose more premium products, from local independents. As well as majors such as Tesco, Sainsbury’s and Waitrose, and ‘scratch cook’ more often. Eating out regularly is also popular.
- For Leisure, extensive travel is affordable alongside day to day activities such as the Arts or Golf and other cultural and sporting pastimes.
- Media is, again, quite traditional.
- Tesco’s challenge is to match the quality afforded by local independent outlets with their small format offering.
Click here to download the full classification for each of the shopper types (Tesco customers).
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