Dollar General
Running Head: DOLLAR GENERAL 1Dollar General StrategiesGlenda ReeseManagerial Marketing BUS 620Professor Mary WrightJuly 8, 2012
DOLLAR GENERAL 2
Dollar General Strategies
Two important strategy concepts that need to be implemented for successful marketing within a business are market segmentation and a generic marketing strategy. Market segmentation is defined by Mullins & Walker, Jr. (2010), as the process by which a market is divided into distinct subsets of customers with similar needs and characteristics that lead them to respond in similar ways to a particular product offering and marketing program (p.180). Generic market strategy is based on three strategies, one of which applies dominantly more than the other two in a business. These strategies, as stated by Mullins & Walker, Jr. (2010), are (1) overall cost leadership, (2) differentiation, and (3) focus (p.227). These two concepts will be seen in the assessment of the Dollar General store in Imboden Arkansas. The assessment will concern prices, customers, and location. Thus determining Dollar General of Imboden Arkansas’ market segmentation to be for the lower-, middle, and fixed- income people and the generic marketing strategy used to be the overall cost leadership strategy.
Prices
Prices inside the store are cheaper on an overall basis when compared to the local market less than one quarter of a mile away. Products that are used frequently, such as toilet paper, laundry detergent, bread and milk are usually a dollar cheaper and sometimes cheaper than that. Dollar General Store’s no frill displays and small inventory allow the store to provide these cheaper prices because management is able to keep the organizations overhead costs down. When comparing prices one is able to see the difference Dollar General provides for its customers. For example, Alexander (2011) provides a product/price comparison between Dollar General and Wal-Mart for the following items people probably purchase on a
DOLLAR GENERAL 2
Dollar General Strategies
Two important strategy concepts that need to be implemented for successful marketing within a business are market segmentation and a generic marketing strategy. Market segmentation is defined by Mullins & Walker, Jr. (2010), as the process by which a market is divided into distinct subsets of customers with similar needs and characteristics that lead them to respond in similar ways to a particular product offering and marketing program (p.180). Generic market strategy is based on three strategies, one of which applies dominantly more than the other two in a business. These strategies, as stated by Mullins & Walker, Jr. (2010), are (1) overall cost leadership, (2) differentiation, and (3) focus (p.227). These two concepts will be seen in the assessment of the Dollar General store in Imboden Arkansas. The assessment will concern prices, customers, and location. Thus determining Dollar General of Imboden Arkansas’ market segmentation to be for the lower-, middle, and fixed- income people and the generic marketing strategy used to be the overall cost leadership strategy.
Prices
Prices inside the store are cheaper on an overall basis when compared to the local market less than one quarter of a mile away. Products that are used frequently, such as toilet paper, laundry detergent, bread and milk are usually a dollar cheaper and sometimes cheaper than that. Dollar General Store’s no frill displays and small inventory allow the store to provide these cheaper prices because management is able to keep the organizations overhead costs down. When comparing prices one is able to see the difference Dollar General provides for its customers. For example, Alexander (2011) provides a product/price comparison between Dollar General and Wal-Mart for the following items people probably purchase on a
References: lexander, M. (2011, January 7). Dollar General vs