Question

You have just been appointed the Marketing Manager of YummyFoods (NZ) Limited, a company specializing in healthy snacks for the New Zealand market. On your first day at work, your boss - Mr. Umami, welcomes you to the company, and tells you “there is no time to waste!” The company has just developed a new product, Manuka smoked almonds, and are keen to get them into consumers’ hands as soon as possible. Mr. Umami tells you that YummyFoods already has a strong presence in the market with a range of other products for toddlers (i.e. children 18 months to 3 years old). He wants you to capitalize on this brand awareness in that market segment by developing an advertising campaign to market the Manuka smoked almonds as a healthy snack for toddlers. He suggests you target your campaign at new mothers and day-care centers.

Though the smoked almonds are delicious, you have a number of concerns about Mr. Umami’s plan. You think the nuts could be a potential choking hazard for young children, could trigger allergies if they contain traces of peanuts from the production of YummyFoods’ other products, and at the very least, are unlikely to appeal to very young children’s tastes. You are worried that your first advertising campaign will be an expensive failure unless you segment the broader New Zealand market and figure out which consumers you should be targeting for this product before getting started on your campaign. Mr. Umami is confused about why you do not want to market the product to YummyFoods’ established customers, but he agrees to let you explain your stance to him.

Thoroughly explain market segmentation to Mr. Umami using examples to illustrate the concept, AND make a convincing argument as to why it is necessary to undertake detailed market segmentation before developing an advertising campaign specifically for YummyFoods’ new Manuka smoked almonds.

Your answer MUST be in essay format, but you are NOT required to provide in-text citations or a reference list.

Answer 1

In this example of market segmentation for nutriment profit segmentation approach has been used. usually there's a health perception that nutriment isn't perpetually sensible for you which it ought to be consumed sparsely. However, despite this perception, nutriment retailers are quite fashionable and dominate an out sized share of the eat-out-of-home market.
Therefore, the aim of this segmentation example is to seem closely at the requirements and motivations of the varied customers within the marketplace, primarily by considering the array of advantages that they're seeking with a quick food possibility. As a result, six market segments are known, as follows:

FAMILY TREAT - the primary market section primarily appearance at nutriment as a “reward” permanently behavior or as a special treat for the family. clearly customers during this market section are creating family choices as a home unit – not as individual consumers.

I LIKE IT - This shopper section can consume nutriment primarily for the style of it – that's, they merely get pleasure from it. they're a lot of likely to be significant users and presumably whole loyal to 2-3 completely different nutriment chains. As they're attracted by style, consistency of product is vital, similarly as new flavor forms of their most well-liked product decisions. These customers are comparatively impulsive and can be awake to advertising, in-store displays, external aggregation and numerous ads.

NICE and straightforward - Another market section views nutriment as a simple possibility for food. These customers don't seem to be essentially lazy, however don't seem to be perpetually within the mood to grocery search and cook. they're customers that don’t tend to pre-plan their weekly meals, therefore a quick food resolution is enticing to them sometimes. Clearly these customers are seeking the advantage of convenience. As a result, this market section can search out native retailers (or chains with various outlets), chains with simple service choices (such as a drive-through) and a quick ordering system.

PRESSED FOR TIME - this instance market section is sort of time poor, either normally or at a specific purpose in time. Their preference isn't to consume nutriment, however it should be a necessity sometimes. for instance, if they need worked back late, or they're on a vacation road trip, or they're having a very busy day normally. In easy terms, these customers are interested in the “fast” a part of nutriment.

REAL MEAL - This section of customers is seeking the convenience edges of nutriment, however they're trying to find a comparatively healthy food possibility similarly. As customers they'd be lighter users of nutriment and a lot of willing to cook reception or take the time to crumble more formal restaurants.

MEETING PLACE - the ultimate market section during this example isn't fascinated by the food to a lot of extent, instead they're attracted by the situation and facilities of the nutriment outlet and use the venue as a gathering place (either socially or for business).