9-22 Marketing Strategy, Consumer Targeting and Segmentation.ppt by vei53664


									                         Food Marketing APEC 4451                             Consumer Centric Solutions LLC
                                Fall Semester 2009

                                  Marketing Strategy                           • Founded February 2002
                                 Consumer Targeting                            • Specializing in consumer segmentation, branding and
                                                                                 new product development.
                                      Segmentation                             • Clients across several industries:
                                                                                    –   Food
                                                                                    –   Food Service
                                                                                    –   Retail
                                                                                    –   OTC Health Care
                                                                                    –   Financial Services
                                                                                    –   Appliances
                                                       Dennis J. Degeneffe          –   Auto Care
                                                  The Food Industry Center          –   Marketing Research (Research Product Development)
                                                    University of Minnesota
                                                                               • Strategic Partner with TNS
                                                                                    – Field and Tab
                                                                                    – Analytics

 Segmentation - A Key First Step                                              Good Segmentation Approaches

                                                                               –    Clearly identify targets
                                                                               –    Discriminates on behavior
                                                                               –    Are logical, makes sense
                                                                               –    Provide insights for marketing initiatives
                                                                               –    Provide reachable targets – media delivery
                                                                               –    Are stable

          “Fish where the Fish Are”
           Identifies Where Opportunities Exist

 Ways to Segment Consumers                                                    Attitudinal Segmentation

• Geography – Southeast, Metro areas, etc.                                    • Benefits of Attitudinal Segmentation:

• Demographics – Households with children,                                         – The basis for why consumers behave the
  Seniors, etc.                                                                      way they do – most closely linked to
• Lifestage – College students, expecting moms
                                                                                   – Provides the insight to develop effective
• Behavior – Heavy brand users, competitive                                          Marketing programs.
  brand users                                                                         • Products
                                                                                      • Services
• Attitudes…                                                                          • Advertising
     Using Segmentation                                                    Targets?
 •    Fundamental Elements – Marketing Positioning:
      –Target – The Who
      –Benefit – The Why based on needs experienced in the
       situation – The When
      –Frame of Reference – The context – With respect to what
      –Support - The How

 Example of Positioning Statement:
 To “Time Pressured Moms”…
    Hamburger Helper is a great way to get an fresh hot meal on
     the table in only a few minutes, that the entire family will love.
     That is because Hamburger Helper includes all the fixins – just
     add it to one pound of hamburger, simmer and serve.

                                                                               Approaches to Attitudinally
                                                                               Based Market Structure

                                                                          • Consumer/Customer Segmentation – Identify
                                                                            groupings of consumers with similar attitudes out of a
                                                                            diverse population.

Segmenting Consumers                                                      • Need States – Identify product usage situations with
                                                                            similar set of consumer needs.

                                                                          • Affinity Segmentation – Identify groups of
                                                                            consumers with similar degrees of commitment to a

     Consumer/Customer Segmentation Methodology                                Segmentation Survey

                                                                           •   Need to define scope
                                                                                –   Who is the universe of relevant consumers?
 Typical approach:                                                                   • Current users
                                                                                     • Potential users/prospects
                                                                                –   What is the subject?
                                                                                     • Products, categories, usage occasions
 •   Collected by a “survey.”                                                        • Best to cover ways to expand business
     – Questionnaire constructed to cover                                  •   Can be administered a number of ways – all have relative tradeoffs
        comprehensive set of attitude statements                                –
     – Also collects other measures to relate to the                            –
                                                                           •   Must be project-able to the marketplace
                                                                                –   Balanced samples
                                                                                –   Weighted data (if necessary)
 •   Uses a “cluster analysis” to identify segments.
                                                                           •   Questionnaire must be
                                                                                –   Comprehensive of the subject matter – cover all topics that are relevant to the
                                                                                –   Questions are communicated clearly and uniformly
           Segmentation Analytics                                                                                   Example:
                                                                                                                    Pillsbury How America Eats Study (2000)

           •     Cluster Analysis – means of identifying and grouping
                 respondents by their answers. (Exercise)                                                       Study found seven different types of consumers

           •     Several statistical approaches:                                                                               HWE2001 Consumer Segment s
                  –   K-Means cluster analysis is most typical
                                                                                                                         Traditional Recipients                   Mainstream Nurturing Cooks
                  –   Multiple-regression
                  –   Latent class                                                                                                 14%                                     17%
                  –   Canonical factor analysis                                                                                                                                              Healthy
                                                                                                                         14%                                                                Traditional
                                                                                                                Mobile                                                                        Cooks
           •     Best done by Marketing Research firm with experience in
                 segmentation.                                                                                                                                                              16%
           •     Really a combination of art and science.                                                                                                                       12%
                                                                                                                Food On Demand                   13%
                                                                                                                                          Weary Providers                       Healthful Explorers

                                                                                                                                                                                      Excerpts from ADA Conference

       How America Eats                                                                                             How America Eats
       Food Segment Profiles                                                                                        Food Segment Profiles, Continued

Each Segment has a distinctly different approach to eating.                                                     Each Segment has a distinctly different approach to eating…

                                                                                                                                     Food on Demand
   Mainstream Nurturing Cooks                                  Healthful Explorers                                                    •   Other activities tend to have a higher priority
       •   Nurture their family through food                     •   Actively trying to eat healthy                                   •   Do enjoy food
       •   Meal time = quality time                              •   Focus on quality/freshness                                       •   Food must be easy, accessible
       •   Good taste is #1 consideration                        •   Creative & Experimental tastes                                   •   …or not at all.
       •   Want to make the occasion special                     •   Frequently too busy to cook, need easily
                                                                     accessible alternatives
                                                                                                                                     Mobile Munchers
                                                                                                                                      • Busy, active, on-the-go
  Healthy Traditional Cooks                                    Weary Providers                                                        • Meals and snacking blur together
   •   Also nurtures through food                                •   Dinner time is family time
                                                                                                                                      • Looking for portable foods
   •   Emphasis is on balanced nutrition                         •   Meals are a balancing act, and stressful
   •   Favor wholesome, traditional foods                        •   Prefer easy, quick, familiar foods
   •   Discourage snacking                                       •   Tend to cater to kids tastes

                                                                                                                                                   Traditional Recipients
                                                                                                                                                     • Want good tasting, wholesome traditional food
                                                                                                                                                     • Rely on someone else to prepare

       Food Segment Summary                                                                                          Examples

                        HWE2001 Consumer Segments

               Traditional Recipients                      Mainstream Nurturing Cooks
                                14%            Food Is …       17%
                                       Catered                                   Healthy                          Mainstream Nurturing Cooks                     Healthy Traditional Cooks
 Mobile          14%                                  Love
                           Grazing                                              Traditional
                                                       Balance                    Cooks
 Munchers                        Later
                                       Compromise Fresh
 Food On Demand                                13%
                                      Weary Providers                Healthful Explorers

                                                                                                                         Weary Providers                                  Mobile Munchers
                                                                                              Further Example – Profiles of Shopper Segments
    More Examples                                                                             From How America Shops Study (1999)

                                                                                                           Born To       Game           Budget         Practical &          It’s Just           Haven’t A        Want Out Of
                                                                                                            Shop         Playing        Weary          Systematic          Groceries              Plan                It

                                                                                                                                                        9     Tue     3
                                                                                    Primary                                                                    6
                                                                                    HH Shoppers                                                                                                                        13%
                                                                                                             15%           16%             14%               16%                14%                 13%
                                                                                                                                       This Really
                                                                                                        Neat Foods,                                                         You Do What       Oops … I Forgot     Why Is It That
                                                                                                                           Smart      Isn't Any Fun.       Careful
                                                                                                         New Ideas,                                                         You Have To       The Bread Again.     No One But
  Scratch Pie ala Mode                  Frozen Pie                                                                      Shopper --      Too Many         Planning
                                                               Lighter Fruit Tart                      Nice People …
                                                                                                                         I Define       Decisions.       Makes All
                                                                                                                                                                             Do So You         Guess I'll Just    Me Ever Buys
       Mainstream                      Weary Provider                                                    What's Not
                                                                                                                        The Term!        To Little     The Difference!
                                                                                                                                                                            Can Eat What        Come Back           Food For

    Nurturing Cooks                                            Healthful Explorer                         to Like!
                                                                                                                                                                          You Want To Eat.       Tomorrow.        This House?!

                                                                                     Feel About
                                                                                                                                        Stressful                                                                    Actively
                                                                                     Shopping               Love It!    Committed                      Responsibility      Means To End         Disorganized
                                                                                                                                         Chore                                                                       Dislike
                                                                                     Trip Planning       Efficient        Sales /        Stretch                                                                     Not --
                                                                                                                                                       Real Systems            Limited           Ineffective
                                                                                                       (menus, lists)     Savings        Budget                                                                    On The Fly
                                                                                                                                                       (menus, lists)
                                                                                     Savings / Deals       Coupon                     Necessary --                           Not Worth              Too
                                                                                                                        To The Max                        Planned                                                   Oblivious
                                                                                                            Savvy                      Confusing                             The Effort         Bothersome
                                                                                     Budget                              No Real        A Major          No Real             No Real              Some              No Real
                                                                                     Conscience             Aware
                                                                                                                        Constraints     Concern         Constraints         Constraints          Concerns          Constraints

                                                                                     Stores Shop        Range --         Many …           Best                                                 Accessibility /    Wherever --
                                                                                                                                                        Regular One          Usual One
                      Pie to Go                   Good Pie - Any Pie                                   Experiences      Best Prices       Sales                                                  Proximity         Not Loyal

                                                     Traditional                     Items Shop:        Exploration,      Sales,
                                                                                                                                         Familiar           Routine
                                                                                                                                                                              Pantry              Sporadic,
                       Mobile                         Recipients                                          Variety         Deals                                           Option Loading          Forgetful

                                                                                                  Need State Segmentation Methodology

                                                                                                   Typical approach:
                                                                                                   • Collected using a “diary.”
                                                                                                       –       Questionnaire constructed to cover multiple usage
                                                                                                       –       Key questions are what needs surround each
 Need States                                                                                                   specific occasion – “I want to…”
                                                                                                       –       Also collects situational elements – the 5 Ws
                                                                                                               •   Who
                                                                                                               •   What
                                                                                                               •   When
                                                                                                               •   Where
                                                                                                   •   Also uses a “cluster analysis” to identify “need

    Need State Definition                                                                          Dinner Need States

Hierarchy of needs surrounding usage occasions:

        Sensory                                          Nutrition
                                                                                           Quality Time Dinners                              Healthful Dinners                            Time Constrained Dinners

                                  Consumer                Nurture
                                   Needs                  Others

                                                                                             Kid Pleasing Dinners                      Traditional Family Meals                               Budget Stretchers
                                                                                                                          Examples of Successful Marketing Initiatives
      Defining Needs and Benefits Sought:                                                                                 Based on Segmentation


                  Quality Time Dinners                                          Kid Pleasing Dinners
             Treat/reward myself and/or others               204    Kids particularly like/ask for                  217
             To make the occasion special                    199    Get a meal on the table quickly                 185

Are          Fulfill a craving
             Show others I care for them
                                                                    Stay within my household budget
                                                                    Treat/reward myself and/or others
             Really enjoy eating                             180    That can be prepared at the last minute         161
             To relax with                                   170    Show others I care for them                     155
             Feel comforted                                  165    Requireing little effort or easy to prepare     150
             Bring family/people together                    159    Everyone would like                             144
             New and different                               156    Make something I frequently prepare             144
             Establish/maintain a family tradition           151    That can be eaten quickly                       139
             Impress others                                  147    Easily cleaned up                               138
             Maintain a healthy lifestyle                    131    Bring family/people together                    134
             Enjoy the cooking experience                    130

                                                                    That I have always had/reminds me of the past   68
Are Not      Requireing little effort or easy to prepare     69
                                                                    To relax with
                                                                    Really enjoy eating
             That I have always had/reminds me of the past   66     Maintain/reduce my weight                       65
             Stay within my household budget                 55     Feel comforted                                  55
             Get a meal on the table quickly                 38     New and different                               51
             That can be eaten quickly                       33     Meet specific health needs                      46
             Kids particularly like/ask for                  26     Impress others                                  31
             That can be carried away                        20     Experiment                                      26

          Affinity Consumer Structure                                                                                     Reasons For Commitment Level
                                                                                                                           •   Guinness – Among Devoted, brand is:
   • Divides consumers up into groupings with varying                                                                           – Authentic.
     strengths of commitment to the brand:                                                                                      – Mark of personal distinction.
      –   Devoted … Staunchly loyal to the brand.                                                                                  • Highly unique product characteristics
      –   Adopters … Use the brand along with others.                                                                              • Heritage
      –   Acceptors … Willing to try the brand, or infrequent user.                                                                • Says I am a beer connoisseur
      –   Available … Know little or nothing about the brand.
                                                                                                                           •   Guinness – Among Adopters, brand is:
      –   Rejecters … Brand is irrelevant, no intention to try it.
                                                                                                                                – A change of pace.
                                                                                                                                – Premium imported.
   • Identifies the proportion of the volume coming from each
     group                                                                                                                 •   Implication … Huge opportunity to leverage brand authenticity
                                                                                                                               and unique product characteristics to deliver emotional
   • Identifies reasons for their commitment level.                                                                            benefits to users.

          Targeting - Key Points

          • Segmentation is a primary tool for targeting, and
            subsequently developmental guidance.
          • Segmentation can take many forms:
             –    Geography
             –    Demographics
             –    Lifestage
             –    Behavior
             –    Attitudes
          • Some of the more insightful approaches include:
             – Consumer Segmentation – People based on attitudes
             – Need States – Occasions based on needs
             – Affinity Segmentation – People based on

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