Segmentation and Consumer Behaviour

The following sample essay on Segmentation and Consumer Behaviour. Watson, as a retail brand is hugely dependent on mobile experience to interact with their customers and analyse them better. Using AI and predictive intelligence, they have been able to successfully comprehend their consumer’s behaviour and inclination towards the most used products. Holding a 6.8 % market share in retailing, its customer segmentation is broad and ranged across varied ages of people.

Watsons has invested over US$130 million in cutting edge technology to develop the online to the offline way of marketing.

The traffic comes straight to the store and as a result of that, 20 to 30 per cent of the consumers will buy something else. So, this has significantly changed consumer behaviour. As one of the largest health and beauty retailers in the world, the e-commerce and digital omnichannel business model has become necessary since 60% of their consumers in Asia are aged below 35 years and store locations are carefully chosen after analysing customers buying both online and offline platforms.

Even though technology has an impact on consumer behaviour, Watson’s consumers seem to be making shopping decisions depending on how the brand makes it feel.

Singapore consumers are hugely affected by the quality, technical specification and after-sales service of the brand and thus, AS Watson has taken over the market with its Gen Y and Gen Z marketing policy. The majority of Watson’s customer pie chart is occupied by the people falling in the Gen Y and Z category and they have therefore placed similar staffs in their retail stores to connect with the consumers.

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With around 106 stores and 38 pharmacies in Singapore, Watsons is very particular in choosing its store locations and usually pops up with Watsons Health in work areas, Watsons Baby Store in an area which houses more of young mothers and regular Watsons stores in a residential locality for personal care products.

After running a survey including 4900 people, Watsons came up with the conclusion that nearly half of them suffer from allergies at-least once in a month and thus, it came up with special allergy care services to cater to these specified needs. Watsons is particularly efficient in engaging its consumers with new concepts such as the store-in-store concept at Takashimaya or their loyalty programme and this says a lot about consumers in Singapore being attracted by new concepts and building strong relationships.

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Segmentation and Consumer Behaviour. (2019, Dec 05). Retrieved from

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