Market Segmentation Examples for Grocery Shoppers

Market segmentation is a vital concept in marketing, enabling businesses to divide a broad consumer base into smaller, more manageable groups based on shared characteristics. For grocery retailers, segmentation helps uncover the diverse motivations, needs, and behaviors of shoppers, guiding the development of targeted strategies and offerings.

This article provides three examples of segmentation approaches for grocery shoppers: benefit-based segmentation, occasion-based segmentation, and psychographic segmentation.

Each example highlights distinct methods for understanding consumer behavior and preferences, from the specific advantages sought during a purchase to the lifestyle and values that influence shopping habits. These examples demonstrate how segmentation brings clarity to the complexity of the grocery market.

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Market Segmentation for Grocery Shoppers Using Behavioral-Based Segmentation

This market segmentation example looks at a segmentation approach for grocery buyers and shoppers. It is important to understand the underlying motivation and behavior of consumers in different market segments. This example of market segmentation clearly identifies that consumers have distinctively different needs, even though they may be shopping at the same retail outlet.

The six market segments identified in this example for grocery shoppers are:

1. Here we go again
2. Family feeders
3. On-the-go
4. Variety seekers
5. Healthy and natural
6. Gourmet focus

Here we go again

This market segment views grocery shopping as a chore. They seek to reduce the time, effort and cost associated with shopping. They favor retail outlets that are conveniently located, have clear displays, and easy to find information.

This market segment tends to be brand loyal to the retailer, as well as the brands that they purchase. This type of loyalty is termed “habitual loyalty” where the consumers in this market segment will repeat buy due to habit rather than any emotional or rational attitudes.

They can be swayed somewhat by sales promotions and discounts, but are generally unresponsive to these offers, as opposed to some of the other market segments.

Key Characteristics:

• Prefer conveniently located stores with clear layouts and easy-to-find items.
• Exhibit strong habitual loyalty to specific retailers and brands.
• Relatively unresponsive to promotional offers but may occasionally take advantage of discounts.

Shopping Habits:

• Seek to minimize time, effort, and cost.
• Purchase familiar products regularly, avoiding experimentation.

Marketing Strategies:

• Focus on ease of shopping, such as clear signage, quick checkout options, and click-and-collect services.
• Build loyalty programs that reward repeat visits and habitual purchases.
• Highlight everyday low prices rather than limited-time promotions.

Family feeders

As suggested by the name, this market segment has a main grocery buyer (usually a parent) that is buying groceries on behalf of their family. Their purchases will tend to be fairly regular at its core, with significant varieties from time to time as they are impacted by preferences of end users (often children) in their household.

This segment purchases snacks and biscuits for an “eat-at-home” snack. And as a generally tend to have children at home, they will generally purchase larger quantities. While not as price focused as budget conscious consumers, good value is important to them.

As a result, they tend to be attracted to well-known brands that run sales promotions on a frequent basis.

Key Characteristics:

• Regularly purchase snacks, large-quantity staples, and family-friendly products.
• Value consistency but are influenced by promotions and sales.
• Consider well-known brands reliable and safe for their family.

Shopping Habits:

• Shop weekly or bi-weekly with a focus on stocking up.
• Mix staple items with occasional new products based on family needs.

Marketing Strategies:

• Offer promotions on bulk purchases and family-oriented products.
• Highlight kid-friendly and value-oriented product lines.
• Use advertising that appeals to family values and meal-sharing moments.

On-the-go consumers

This market segment of consumers tends to have a busy lifestyle, and offer involving work, travel, perhaps study, and sporting activities. As a result, the on-the-go market segment tends to be above average purchaser of ready to eat foods, snacks and other convenience foods.

Because they are frequently moving around, they are more likely to have a larger set of retailers that they will visit. They also have a reasonable degree of variety in their purchases, depending upon their mood and other situational factors.

Due to their busy lifestyle, they are probably more likely to engage in online shopping, as well as using vending machines.

Key Characteristics:

• Often purchase ready-to-eat meals, snacks, and convenience foods.
• Use multiple retailers, including grocery stores, vending machines, and online platforms.
• Flexible in their choices, influenced by mood and situational factors.

Shopping Habits:

• Frequent smaller, quick trips to multiple stores.
• Rely on online shopping for time-saving convenience.

Marketing Strategies:

• Promote pre-packaged meals and grab-and-go options.
• Invest in mobile apps for seamless online shopping and delivery services.
• Use location-based promotions to capture impulse purchases.

Variety seekers

This market segment has little brand loyalty, as they enjoy variety in retail experiences, tastes and food choices. This means that they are more responsive to sales promotions and new product offerings, especially when they are first released.

This means that they are generally and easier to win segment, but much harder to retain in the long-term. In other words, they will contribute to short-term sales results through sales promotions, but longer term image advertising is likely to have less effect upon them.

Key Characteristics:

• Responsive to new product launches, seasonal offerings, and sales promotions.
• Contribute to short-term sales spikes but are difficult to retain.
• Enjoy trying different brands, flavors, and store formats.

Shopping Habits:

• Frequent smaller trips to explore options.
• Actively seek out new products and promotions.

Marketing Strategies:

• Regularly launch new products and flavors with eye-catching packaging.
• Run creative promotional campaigns that emphasize novelty and discovery.
• Engage through social media and sampling events to build excitement.

Healthy and natural

This increasingly important market segment is concerned with the health and environmental impact of their purchases and will probably seek out environmentally friendly retailers as well. In terms of their grocery purchases, the healthy and natural segment will select products that are natural, fat-free, low-carb, vegetarian gluten-free, or some other health attribute.

While some consumers in this segment are restricted by diet, most just want to pursue a healthy and active lifestyle.
These consumers are typically more involved in their purchase decisions, making packaging design and information more important to this segment. They typically want to deal with brands that they can trust and that they know are ethical.

Key Characteristics:

• Focus on natural, organic, gluten-free, low-fat, and sustainable products.
• Trustworthy brands and transparent labeling are essential.
• Often more involved in purchase decisions, paying attention to ingredients and certifications.

Shopping Habits:

• Tend to shop at specialty or health-focused stores.
• Spend time comparing labels and researching products.

Marketing Strategies:

• Emphasize the health benefits and ethical sourcing of products.
• Offer eco-friendly packaging and clear nutritional information.
• Partner with influencers or organizations that advocate for healthy living.

Gourmet focus

The final market segment of grocery shoppers tend to be attracted to quality, both in terms of the retail environment and the brands that they purchase. In terms of regular groceries these consumers seek out higher quality food solutions and are generally less price-sensitive.

They are more willing to invest time in food preparation and have less need for snack options.
These consumers would be most responsive to a brand that builds high-quality image, higher quality products, higher price products, but less responsive to sales promotions and discounts.

Key Characteristics:

• Focused on high-quality ingredients and artisanal products.
• Willing to pay premium prices for superior products.
• Less interested in promotions, focusing instead on brand prestige.

Shopping Habits:

• Shop for specialty items and premium brands.
• Spend time selecting products, enjoying the shopping experience itself.

Marketing Strategies:

• Build a premium image through upscale packaging and in-store presentation.
• Offer exclusive or limited-edition products to maintain an air of exclusivity.
• Host tastings or events that allow customers to experience the quality firsthand.

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Market Segmentation for Grocery Shoppers Using Occasion-Based Segmentation

Occasion-based segmentation divides shoppers based on the specific circumstances or purposes of their grocery trips. This approach identifies the motivations behind each shopping occasion, such as routine replenishment, special events, or impulse buys. Understanding these occasions helps retailers tailor their offerings and marketing strategies to fit different shopping needs.

Here’s an example of occasion-based segmentation for grocery shoppers:

1. Routine Shoppers

Overview:
These consumers shop regularly to replenish household staples such as milk, bread, and cleaning supplies.

Key Characteristics:

• Visit the same store at consistent intervals, typically weekly or bi-weekly.
• Focus on efficiency and convenience.
• Loyal to specific brands and retailers for routine items.

Marketing Strategies:

• Offer loyalty rewards for repeat purchases.
• Use subscription services for automatic replenishment of essentials.
• Highlight “everyday low prices” to appeal to budget-conscious routine shoppers.

2. Event Planners

Overview:
This segment shops for specific events such as parties, holiday gatherings, or family dinners.

Key Characteristics:

• Seek a mix of high-quality, specialty, and bulk items.
• Often spend more during these occasions.
• Require guidance on meal planning and recipes.

Marketing Strategies:

• Create themed displays and bundles for events (e.g., BBQ kits, holiday meal packages).
• Promote premium and specialty items for special occasions.
• Provide digital resources like recipe apps or event planning tools.

3. Impulse Buyers

Overview:
Impulse buyers make unplanned purchases during their shopping trips, often driven by promotions or product displays.

Key Characteristics:

• Attracted by eye-catching displays and limited-time deals.
• Purchase snacks, beverages, and other non-essential items impulsively.
• Often shop alone and make decisions quickly.

Marketing Strategies:

• Position attractive products at checkout aisles or end-of-aisle displays.
• Use discounts, “buy one, get one free” deals, and seasonal promotions to encourage impulse purchases.
• Highlight new products or limited editions to spark curiosity.

4. Health and Wellness Shoppers

Overview:
This group shops with a focus on health-conscious goals or dietary requirements.

Key Characteristics:

• Visit stores specifically for items like organic produce, supplements, and gluten-free products.
• More likely to shop in specialized or premium sections.
• Often well-researched and discerning in their choices.

Marketing Strategies:

• Provide clear labeling for health-related attributes (e.g., “organic,” “low-sodium”).
• Promote in-store dietitian consultations or online wellness resources.
• Highlight sustainable or eco-friendly product certifications.

5. Emergency Shoppers

Overview:
These are last-minute shoppers who urgently need specific items, such as forgotten ingredients or household essentials.

Key Characteristics:

• Make quick, small purchases with minimal browsing.
• Prioritize stores that are open late, close to home, or have convenient parking.
• Often less price-sensitive due to the urgency of their needs.

Marketing Strategies:

• Ensure key items are well-stocked and easy to locate.
• Promote convenience features like curbside pickup or delivery within hours.
• Use mobile apps to suggest quick alternatives or recipes.

6. Exploratory Shoppers

Overview:
This segment enjoys browsing and discovering new products, often treating grocery shopping as an enjoyable outing.

Key Characteristics:

• Spend more time in-store, exploring various sections.
• Interested in new, exotic, or premium products.
• Likely to spend on non-essential items, such as unique ingredients or luxury foods.

Marketing Strategies:

• Create a dynamic shopping experience with product sampling and seasonal displays.
• Regularly introduce new or limited-edition products.
• Use in-store signage to tell the story behind unique or premium products.

Benefits of Occasion-Based Segmentation

Occasion-based segmentation helps retailers understand the context behind grocery shopping trips, enabling them to optimize product placement, promotions, and in-store experiences. For example:

• Routine shoppers benefit from subscription services and loyalty programs.
• Event planners are drawn to bundled deals and meal-planning resources.
• Impulse buyers respond to strategic placement of eye-catching products.

This segmentation approach ensures retailers meet customer needs efficiently while enhancing their overall shopping experience.

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