UNCOVERING NEW MARKET SEGMENTS

HOME DEPOT:

I recently made a purchase from Home Depot and identified that they were marketing to DIY / Professional contractors by offering individually tailored services and products to meet the needs of each segment. The segmentation strategies implemented by The Home Depot through use of omnichannel integration (integrating online presence with physical stores for a seamless shopping experience) in use of store and app use, large product assortment of quality products, prioritizing the customer experience, and engaging with the community with volunteer involvement, donations of products, and educational programs for both DIY /Pros / children. These segmentation strategies revolve around a customer centric attitude to build trust and brand loyalty (Spanou, 2024)

Key points to remember when implementing segmentation strategies after deciding which types of customer segmentation to use:

  • Ensure market is understood so you can set clear objectives
  • Obtain diverse data on limited number of segments to clearly define them
  • Adapt approach constantly for attractiveness to segments to include profitability, size, growth potential, and even competition “using a mutually exclusive and collectively exhaustion (MECE) technique and prioritize segmenting users where there are blind spots in data”, per Content Square, 2025.
  • Develop and create detailed positioning strategies & detailed identifiable personas
  • Implement strategies and always monitor with regular review on performance with feedback and adjust segmentation strategies with behaviors and market changes. Through use of tracking key metrics on market share, sales, and customer satisfaction. This will be ongoing with adjustments to segmentation strategies, need to respond and adapt to changes as they are identified (How to Perform Customer Segmentation: A 5-Step Strategy, 2024).

A very unique market segment I noticed recently that I believe would be a great market to explore are product flipping resellers.

Define Segment

  1. First an understanding of the flipping reseller market and their role in the distribution chain and importance of making products more accessible.
  2. Define the different types and experience of resellers
  3. Clarify as individual, group, or company, along with the type of products they resell.
  4. Identify their supply chain and whom they sell their products.
  5. Define their sales channels such as Ebay, Facebook Marketplace, Poshmark, OfferUp, flea market, etc.
  6. Understand their business model such as bulk purchase like buying returned merchandise pallets or flipping by buying at low cost then reselling for profit.

Choose Segmentation Criteria

  • Demographic: location, age, income, education
  • Behavioral: Sourcing methods, frequency of sourcing from pallets, garage sales, thrift stores, retail stores
  • Psychographic: Risk tolerance, community engagement, entrepreneurial mindset
  • Technographic: Comfort and use of reseller tools and app platforms

Build Personas of Different Types of Resellers

Bargain hunter -look for deals at flea market, yard sales, thrift stores.

Thrifter – Specialized bargain hunter looking for unique, niche, or vintage items at flear market, thrift store, or garage sales.

Flipper – Developed expertise in special item flipping with sense of market trends and knowledgeable of how to resell the items

Entrepreneur – High volume flipper with a structured approach and have invested in marketing and logistics to maximize profits (Loper, 2025)

Tailor the Marketing Mix

  • Product: Assist with offering sourcing guides and tools to find inventory deals
  • Price: Offer pricing tiers, bulk discounts, or subscription discounts
  • Place: Market to resellers on reseller communities such as Ebay, OfferUp, Facebook Marketplace, etc
  • Promotion: Provide tutorials on how to maximize flipping, how to identify and correct sourcing challenges, platform tips, and even success stories.

Utilize Targeted Channels

  • Email Marketing: Trending item lists, “Hot Inventory” list and “Flip of the Week” stories
  • Social Media: Promote and use platforms such as TikTok, Instagram, YouTube, etc for sourcing tips and inventory / sale haul videos
  • Partnership: Collaborate with other reseller influencers or marketing channels

Track and Measure Metrics and Refine as Necessary

  • Review and assess conversion rates
  • Track user engagement
  • Assess for repeat purchases

References

How to Perform Customer Segmentation: A 5-Step Strategy. (2024). Contentsquare.com. https://contentsquare.com/guides/customer-segmentation/strategy/

Loper, N. (2025, May 25). The 21 Best Items to Flip for Profit: $50-5000 a Month Part-Time. Side Hustle Nation. https://www.sidehustlenation.com/best-items-to-flip/

Spanou, S. (2025, January 23). Home Depot Marketing Strategy: Analyzing the Leading US Home Retailer. ContactPigeon | Blog. https://blog.contactpigeon.com/home-depot-marketing-strategy/

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