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Approaches to market segmentation
Question on market segmentation
Case study about market segmentation
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Recommended: Approaches to market segmentation
• NRFC is having problems choosing between launching Pizza & Toppings and Pizza only products.
• New product in the form of a brand extension in a segment that has not been touched.
• Positioning of the Pizza kit so that it is able to take .3% of the market share away from takeout/delivery (majority of the market share).
• Major competitor Kraft has already tested and possibly on the verge of capturing the 1st mover advantage.
• Pricing the pizza kit competitively so it is able to appeal to consumers and compete with takeout/delivery pizza.
Pasta
Contadina Pasta and Sauces was able to take advantage of being the first company to make a move in the refrigerated food segment. This is all given credit to the market research team of Nestle, as they were able to do tremendous amount of research to position the product to be a hit in the new segment. Nestle was able to establish great brand recognition with the Contadina brand. Traditional, authentic Italian food, and old fashioned are the terms that came to consumers mind when mentioned the brand of Contadina. Nestle was able to communicate to the customer that Contadina was of superior quality and always fresh. The product was able to be refrigerated instead of frozen adding that much more freshness. Nestle was able to advertise the 1st mover advantage to the primary shoppers of the
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Great branding and development support in the refrigerated pasta segment, will allow for tremendous success. The pizza comes with a first mover advantage that gives Nestle a greater lead in this niche market. Most manufacturing, distribution, and marketing employees have experience and knowledge of the refrigerated pasta segment, which helps Nestle with lowering costs. They should launch the pizza and toppings products before Kraft so they can capitalize on the first move advantage and have a repeat of the Contadina pasta and sauce
Kraft Foods was founded as a cheese manufacturer in 1903. They had evolved into North America’s largest food and beverage company and the number two player in the world. They grew to have operations in more than 155 countries by 2004. Kraft consisted of two operations, Kraft Foods North America and Kraft Foods International, and its business was divided into five product categories. These categories are beverages, convenience meals, cheese, grocery, and snacks. The Kraft brand portfolio was among the strongest of the global consumer packaged goods with 50 $100-million brands and 5 $1 billion dollar brands. Kraft also has a strong distribution network and well-earned reputation for developing innovative new products and food applications.
Pret is more upscale than its competition but everything comes standard, so you can’t control the condiments. Many of competitors believe that fresh means made-to-order. Panera Bread, one of Pret’s biggest competitions, is well known through the New York City area. Panera Bread advertisement their products and offer hot food made to order. Even though the line can get long the customers do not mind the long wait knowing that their food is precisely the way they want it done. These intense competitions can entice Pret’s consumers away with personalized. For an upscale chain, prices start at $3.50 for a smaller proportion. Pret is only found in dense urban area does not appeal similar to Panera, which could be found in rural settings. But Pret stands out from the competition with their fresh food, customer service and charity
Thus new products/line extensions will be based on Allround brand, each one with a unique target market, delivering different value proposition to the respective customer.
1.2 Sensitivity analysis shows that pizza sale will be largely influenced by penetration rate of Contadina pasta (Exhibit 2). Q2 Similarities: Both launches of refrigerated pasta and pizza are aim to catch up the growing trend toward ethnic foods. Both of these two lines try to capture this growing trend by providing convenience and freshness at the same time. In terms of competition, none of the refrigerated pizza and pasta category has a big brand play yet. Therefore, by taking quick reaction to the demand, both pasta and pizza opportunity might empower Nestle to become a market leader in both categories with first mover advantage.
This allows the company itself to make any further changes to the product, and ensures that they have the best available menu options to cater to the customers as well as compete with their competitor, Jose’s Southwestern Cafe. This is a very important step in the process because if you do not offer menu items that customers enjoy, there is a good chance your business will fall to the
Brand building and quality: TP builds up a distinct identity in the customers’ mind by consistent clothes, mopeds and pizza names. Furthermore TP sells side dishes as well. TP offers promotions and a Kid’s Club. They are centrally producing their dough in Spain and buy the other ingredients from two or three manufacturers in order to ensure consistent quality and taste.
S – Even after 54 years Domino’s greatest strength has been sticking to its original values, the very ones that have made it a top company since its founding: delivery speed, operational transparency, and responsiveness to customer wants and concerns. Since the beginning Domino’s top focus has been on the customer and his or her experience. By providing a simple, inexpensive, and convenient pizza option, Domino’s has been able to remain a top competitor in its industry. Over the years they have expanded their menu, going beyond the pizza box, to answer desires for additional food options such as pasta, subs, and chicken wings, as well as dessert options. This way they not only attract your everyday pizza eaters, but also can appeal to the lunch crowd as well as families looking to have a full meal equipped with appetizers, a main course, and dessert all for a low-price. Domino’s is able to remain on top due to their heavy presence in the United States as well as internationally. Domino’s also posses the ability to quickly adapt to the changing trends. With the world becoming more and more technology driven, services such as the on-line ordering website, iPhone-app, and pizza tracker, Domino’s has been able to hold its own in the ever changing world, constantly delivering a quality product at top speed.
The main challenge is to determine how Panera Bread can continue to achieve high growth rates in the future. Panera Bread is operating in an extremely high competitive restaurant market which forces the company to improve and to grow steadily for staying profitable. The company’s mission statement of putting “a loaf of bread in every arm” is just underlying Panera’s commitment for growing. They are now in a good financial situation and facing growth rates of up to 20% per year in a niche market that has a great growth potential. In the next 7 years the fast-casual market is expected to grow by 500% in sales to a total of $30 billion.
We have carried out a study on the F.M.C.G Company Heinz. Heinz is the most global U.S based food company, with a world-class portfolio of powerful brands holding number 1 and number 2 market positions in more than 50 worldwide markets. There are many other famous brand names in the company¡¦s portfolio besides Heinz itself, StarKist, Ore-Ida, Plasmon, and Watties. In fact, Heinz owns more than 200 brands around the world and makes over 5,700 varieties.
Frito-Lay controlled 40% of the USA-market assuring high volume production by increasing internal coordination with PepsiCo developing the Power of One strategy consisting in mixing snacks with beverages and sauces produced by Peps...
Nestle is a Swiss food and beverage Multi-national corporation headquartered in Vevey, Switzerland. It is the largest food company in the world measured by revenues with about 500 factories in more than 80 countries. The company consists of a powerful portfolio of brands that is driven by unrivalled research and innovation, an aim to contribute to improving the quality of consumers’ lives and a clear commitment to consistence excellence. The company succeeded in accomplishing its mission of “Good Food, Good Life” by making the use of globalization in the areas that are as follows-
In order to be effective, the company needs to honestly evaluate their current position within the market. Had Kraft completed and effective SWOT analysis, they would have likely realized that while they have a strength in distribution, manufacturing, and marketing, one of their singular weaknesses outweighed those positives. The main weakness facing Kraft in both China and India, was the simple fact that the consumers in that market simply did not like the taste of the cookie, and in China, the consumers were never known to be avid cookie eaters (Jain, Jose, & Koellmann, 2013). This miscalculation on the part of Kraft, nearly tanked the rollout of the
During the same period, Little Caesars made a strong push and they have continued to grow. Little Caesars' "two for one" marketing approach was effective in infiltrating the "mom's night off" segment, and is seen by customers as a great value. This is adding direct competition into our niche market share. Little Caesars is surely not making headway with the pizza connoisseurs, but it has effectively targeted a market in which Pizza Hut does not currently have a strong presence. 50% to55% of this market is made up of family dining situations. Our marketing team has conducted multiple data analyses on ways in which we can gain market share from Little Caesars within this market. After much thought and many hours of research, we have devised a marketing plan that will potentially improve our market share.
After looking at trends in the market and seeing that consumers are becoming more health conscious and the need for food that is easy to prepare it was decide that this product would do well in a consumer market made up of mid and upper mid income families and individuals.