Shelter Valley Segmentation

 Lee Valley Segmentation Essay

Shelter Valley Segmentation:




Shelter Valley——a family-owned business which has been providing buyers of woodworking and gardening tools for more than 30 years. Their reputation is based on 3 principles: 1 . Customer satisfaction: Virtually any product may be returned inside 3 months with no cost to the customer (for deliveries within North America, they will refund your come back parcel content costs). installment payments on your Integrity: Item descriptions are matched with the product——even if the product is about made, they may give you exact descriptions. 3. Treat the consumer like a good friend.

" About one third with their00 sales volume is in goods of their own style. The vast majority of these are Veritas® brand products made by Veritas Equipment Inc., all their manufacturing arm. They have a r and d team of 11 people and 140 more that manufactures. And, to strengthen the part regarding listening to buyers, they have a number of customers making royalties in products that they can manufacture based upon designs received from them” (Lee Valley).


Both woodworking and gardening need to have a 2 . 5% embrace total revenue in the next monetary year. To achieve this goal, supervision has given a budget of $500, 000—exclusive of the cost of printing and mailing the catalogues. This kind of budget is intended to fund the prospecting actions of the two product lines.

Current Situation Analysis

Since Shelter Valley launched its e-Commerce site in 2000, net sales had been an increasing percentage of total sales. When launched, the internet site generated regarding 20% of total sales, with telephone sales becoming 70% and sales coming from mail in 10%. By 2010, Internet sales reach 70% of total revenue, which mobile phone sales at 25% and mail by 5%.

[pic]Fig. 1 . Percentage of total orders generated by web commerce from Lee Valley Equipment Ltd. [pic] Fig. 2 . Percentage of total instructions generated by simply e-commerce from Lee Valley Tools Limited.

According to the quiche charts demonstrate above, Internet sales have previously dominated the total sales of Lee Area since its e-Commerce site introduced in 2k. About 70% of the total customers get hold of their products on the net in 2010 meaning that new market segmentation and promotion which focus on to shop online must be generated to accommodate the needs of existing consumers as well as clients.

Customer Segmentation——who the organization will provide

Geographic Variables

In landscapes of the databases surveyed by Euromonitor Foreign in 2012, Home reveals rising markets and they are growing in popularity, produced countries continue to be, by far, the best spenders on gardening products. Higher levels of urbanization and incomes, put together with greater usage of a wider range of services and goods in metropolitan areas, are essential factors supporting demand.

-All countries with per household costs higher than US$1, 000 have an overabundance than 3/4 of their population. -Economic development and urbanization are the primary forces behind the growth in home and garden in developing countries. Demographic Factors

According to the Garden Market Research, the most popular lawn and garden activities included yard care (48% of households), growing interior houseplants (31% of households), flower garden (30% of households), and landscaping (27% of households).

The customer account indicated via Lee Valley shows that the average gardening buyer characteristics happen to be as follows: -Age: average forty seven

-Gender: 65% female

-Income: average household income $72, 017

-Education: 60% possess a college education

-68% will be married

-82% are property owners

Psychographic Factors

In general, gardening enthusiasts also provide their differentiating lifestyles and personality traits, such as: -Environmental friendly


-Seeking freedom and relaxation

-Living a simple and peaceful lifestyle

-Retired, enjoy DIY and time


Cited: Datagraphics, Home and Garden. " Urban Countries Spend the The majority of in House and

Yard. ” Euromonitor International. D. d. World wide web. 21 September. 2012.

Khalid. " How Big is E-commerce Industry. ” invesp Blog. Internet. 21 September. 2012.

Lee Valley. " About Us. ” Lee Pit & Veritas. N. d. Web. 21 years old Sept. 2012.

National Horticulture Association. " Garden Researching the market. ” Nationwide Gardening

Association. N. deb. Web. 21 Sept. 2012.

Pew Exploration Center. " Generations On the net in 2009. ” PewResearchCenter

Publications. Pew Analysis Center, 2009. Web. 21 Sept. 2012.


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