Go Organic Foods, based in Omaha, Nebraska, was one of the newest packaged foods companies to...
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Go Organic Foods, based in Omaha, Nebraska, was one of the newest packaged foods companies to jump on the organic bandwagon. Go Organic offered a vari- ety of products that could be found in grocery stores, specialty health food stores, and even some restaurants and other food-service establishments. One of the best-selling brands in their product line was Go Organic frozen food. This was the brainchild of founder Robert Sierra, who had learnt of a method called "flash freezing," where you could retain all the nutrients in the food even though it was frozen. Mr. Sierra was tremendously excited about this process since he believed that it would solve a large public health problem in America, that of obesity. Mr. Sierra had studied America's eating habits for years and realized that much of the country's diet consisted of high-fat and high-sodium frozen-food meals. In fact, Mr. Sierra had seen his own mother and father gain considerable weight and later develop heart disease as a result of their poor dietary habits. All Mr. Sierra could remember was that their diet was driven by frozen food. Mr. Sierra used this new technology to develop a line of frozen dinners that were low in fat, sodium, and cholesterol, and high in nutrients. Even with this seemingly large breakthrough, grocers were reluctant to carry his products. They didn't believe that there was a large consumer demand for natural or organic foods. They told Mr. Sierra that it was a niche item. Undaunted, Mr. Sierra finally convinced the president of a small independent chain of high-quality stores to carry the products. Sales of the Go Organic dinners began to take hold. The flavor of Go Organic products exceeded expectation, and soon those who wished to eat a low-fat, nutritious meal without sacrificing flavor were flocking to the brand. Retailers who had previously been reluctant to carry the brand began to call Go Organic. Although men tend to eat frozen dinners more often than women, the Go Organic line of frozen dinners was aimed primarily at women over the age of 40. However, the company soon learned that men also liked the Go Organic dinners as well. This popularity spurred Go Organic to expand their product line to in- clude more frozen dinners, some breakfast items, and even desserts. The strategy focused on the idea that working couples over 40 could make a delicious and nu- tritious meal and have more time for one another. The "dinner date" campaign was very successful among members of the target audience. Naturally, the competition in the frozen food category did not stand still while Go Organic captured its market share. They also focused on health in their ad- vertising, and soon introduced their own organic or part organic frozen food products. The frozen food marketplace was becoming an organic and natural foods battleground. Carol Hart, the vice president of marketing for Go Organic, looked at the trends of the business with some trepidation. The competition had significant capital compared to the small, privately held, Go Organic. Carol was concerned about the growth of the brand and if they could keep up with the constant battle for their market share. While she was mulling things over, Mr. Sierra entered her office and tossed an article on her desk. He said that this article summed up the market segment that he felt was still untapped by his brand. He asked Carol to read the article and to provide him with a point of view on the best way to develop consumer segmen- tation for the brand (Exhibit 11.2). Exhibit 11.2 Information according to a recent government report Demographics Average index Gender Men Women Age Teens 13-17 Adults 18-24 25-34 35-54 55-64 65+ Ethnicity Caucasian African American Hispanic Asian Native American Education High school or less High school grad Some college College grad Grad school Income $50k or less $50k to $100k $100k or more. . Frozen dinner consumption . 100 110 90 65 120 110 80 70 130 100 100 70 110 20 115 105 100 95 60 Note: Index to average is 100. Above 100 is m. Two facts leaped out: 100 120 90 Organic food consumption 100 50 150 20 30 100 110 140 60 130 50 40 150 30 30 70 100 130 180 40 80 170 Obesity likelihood 100 80 120 120 110 70 70 90 120 70 140 150 60 180 150 120 100 75 50 150 110 60 According to a recent government report, obesity among adults had doubled since 1980, while being overweight had tripled among adolescents. One study cited rates as high as 15% of teenage boys and girls being overweight. Hispanics and African Americans had a much higher prevalence for being overweight than the Caucasian population. Women were more likely to be obese compared to men. Mr. Sierra turned to Carol and said, "Look at these statistics. We need to rethink our advertising and marketing. Why, homes that have teens and ethnic audiences are totally untapped markets for us! I'm pretty sure the 'Dinner Date' campaign isn't working for them. I would like a report on how we rethink the strategy within the next week." As Mr. Sierra left, Carol felt very conflicted. She knew that he was passionate about wanting to help people who had a high proclivity for being obese, yet she was looking at other demographic information on frozen food purchasers and organic food buyers that was very different from this information. Given the recent amount of competition in the marketplace, she knew that they had to be right in the strategy they would develop. She began to quickly review the data and assemble a presentation. She hoped that she was right. 1. Write a contact report for this meeting 2. Develop a brief proposal to the client outlining your proposed approach for this campaign. Do you think that the information gleaned about segmentation is enough to develop a segmentation scheme for the brand? Which information do you consider more valuable, the trends Carol was looking at or the facts in the article? Why? What trends would you consider if you were to develop a segmentation strategy? 4 Do you feel that the segmentation strategy should be based on adding new purchasers to the brand or adding frequency to current buyers? What would be the ideal information to have to make this decision? 2 3 5 6 Would you go with the information you have, or recommend that you take more time and do primary research on the market before making a decision? Go Organic Foods, based in Omaha, Nebraska, was one of the newest packaged foods companies to jump on the organic bandwagon. Go Organic offered a vari- ety of products that could be found in grocery stores, specialty health food stores, and even some restaurants and other food-service establishments. One of the best-selling brands in their product line was Go Organic frozen food. This was the brainchild of founder Robert Sierra, who had learnt of a method called "flash freezing," where you could retain all the nutrients in the food even though it was frozen. Mr. Sierra was tremendously excited about this process since he believed that it would solve a large public health problem in America, that of obesity. Mr. Sierra had studied America's eating habits for years and realized that much of the country's diet consisted of high-fat and high-sodium frozen-food meals. In fact, Mr. Sierra had seen his own mother and father gain considerable weight and later develop heart disease as a result of their poor dietary habits. All Mr. Sierra could remember was that their diet was driven by frozen food. Mr. Sierra used this new technology to develop a line of frozen dinners that were low in fat, sodium, and cholesterol, and high in nutrients. Even with this seemingly large breakthrough, grocers were reluctant to carry his products. They didn't believe that there was a large consumer demand for natural or organic foods. They told Mr. Sierra that it was a niche item. Undaunted, Mr. Sierra finally convinced the president of a small independent chain of high-quality stores to carry the products. Sales of the Go Organic dinners began to take hold. The flavor of Go Organic products exceeded expectation, and soon those who wished to eat a low-fat, nutritious meal without sacrificing flavor were flocking to the brand. Retailers who had previously been reluctant to carry the brand began to call Go Organic. Although men tend to eat frozen dinners more often than women, the Go Organic line of frozen dinners was aimed primarily at women over the age of 40. However, the company soon learned that men also liked the Go Organic dinners as well. This popularity spurred Go Organic to expand their product line to in- clude more frozen dinners, some breakfast items, and even desserts. The strategy focused on the idea that working couples over 40 could make a delicious and nu- tritious meal and have more time for one another. The "dinner date" campaign was very successful among members of the target audience. Naturally, the competition in the frozen food category did not stand still while Go Organic captured its market share. They also focused on health in their ad- vertising, and soon introduced their own organic or part organic frozen food products. The frozen food marketplace was becoming an organic and natural foods battleground. Carol Hart, the vice president of marketing for Go Organic, looked at the trends of the business with some trepidation. The competition had significant capital compared to the small, privately held, Go Organic. Carol was concerned about the growth of the brand and if they could keep up with the constant battle for their market share. While she was mulling things over, Mr. Sierra entered her office and tossed an article on her desk. He said that this article summed up the market segment that he felt was still untapped by his brand. He asked Carol to read the article and to provide him with a point of view on the best way to develop consumer segmen- tation for the brand (Exhibit 11.2). Exhibit 11.2 Information according to a recent government report Demographics Average index Gender Men Women Age Teens 13-17 Adults 18-24 25-34 35-54 55-64 65+ Ethnicity Caucasian African American Hispanic Asian Native American Education High school or less High school grad Some college College grad Grad school Income $50k or less $50k to $100k $100k or more. . Frozen dinner consumption . 100 110 90 65 120 110 80 70 130 100 100 70 110 20 115 105 100 95 60 Note: Index to average is 100. Above 100 is m. Two facts leaped out: 100 120 90 Organic food consumption 100 50 150 20 30 100 110 140 60 130 50 40 150 30 30 70 100 130 180 40 80 170 Obesity likelihood 100 80 120 120 110 70 70 90 120 70 140 150 60 180 150 120 100 75 50 150 110 60 According to a recent government report, obesity among adults had doubled since 1980, while being overweight had tripled among adolescents. One study cited rates as high as 15% of teenage boys and girls being overweight. Hispanics and African Americans had a much higher prevalence for being overweight than the Caucasian population. Women were more likely to be obese compared to men. Mr. Sierra turned to Carol and said, "Look at these statistics. We need to rethink our advertising and marketing. Why, homes that have teens and ethnic audiences are totally untapped markets for us! I'm pretty sure the 'Dinner Date' campaign isn't working for them. I would like a report on how we rethink the strategy within the next week." As Mr. Sierra left, Carol felt very conflicted. She knew that he was passionate about wanting to help people who had a high proclivity for being obese, yet she was looking at other demographic information on frozen food purchasers and organic food buyers that was very different from this information. Given the recent amount of competition in the marketplace, she knew that they had to be right in the strategy they would develop. She began to quickly review the data and assemble a presentation. She hoped that she was right. 1. Write a contact report for this meeting 2. Develop a brief proposal to the client outlining your proposed approach for this campaign. Do you think that the information gleaned about segmentation is enough to develop a segmentation scheme for the brand? Which information do you consider more valuable, the trends Carol was looking at or the facts in the article? Why? What trends would you consider if you were to develop a segmentation strategy? 4 Do you feel that the segmentation strategy should be based on adding new purchasers to the brand or adding frequency to current buyers? What would be the ideal information to have to make this decision? 2 3 5 6 Would you go with the information you have, or recommend that you take more time and do primary research on the market before making a decision?
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1 Do you think that the information learned about segmentation is enough to develop a segmentation scheme for the brand Yes I believe that the information learned about segmentation is enough to devel... View the full answer
Related Book For
Operations Management Processes And Supply Chains
ISBN: 9781292409863
13th Global Edition
Authors: Lee Krajewski, Naresh Malhotra, Larry Ritzman
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