This is a grocery story, but its lesson could be applied in many other categories.
In this morning’s email newsletter, Phil Lempert (The Supermarket Guru) suggests that it might be time for food stores to start targeting lower-income shoppers. Often, supermarkets focus on middle- and higher-income shoppers because that’s where a significant share of revenue comes from.
Click here to see the video from today’s newsletter, or click here to read the text version that was sent out last week.
Implications: While profit margins might be better on premium or upscale products, some companies might be wise to re-evaluate all potential targets to see where fresh revenue could be obtained. Maybe your new “best prospects” are younger… or older. While your best “sale” opportunities may have come from homeowners a few years ago, perhaps renters are a group worth looking at now. If you used to court “blue chip investors” prior to the recession, maybe it would be smart to consider “emerging investors” these days.
What has changed about your target market in the past 36 months? It is quite likely that attributes of the people you sell to have changed; it might also be possible that you could/should be targeting an entirely different group of people, in addition to the target you once knew.
How has your most important target changed? Are the people different? Or are they different people?
Mike Anderson
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