Company Case Study:

Singer learned about IBS in 2014 after reading a research paper detailing a new diet-based approach to

managing the syndrome. Researchers at Monash University in Melbourne, Australia, had discovered that

short-chain carbohydrates, identified as FODMAPs, exacerbated the symptoms of irritable bowel

syndrome, which included constipation, diarrhea, bloating, pain, and distension.3 Eliminating FODMAPs

from one's diet had proven to be an effective way to diminish the pain, discomfort, and potential

embarrassment associated with IBS.

The next step for Singer was careful research on IBS, the day-to-day challenges sufferers faced, the

science behind IBS and low-FODMAP diets, and the market that served IBS sufferers. Researchers

estimated that one in seven people worldwide were affected by IBS, with new sufferers diagnosed every

year. In contrast, only one in 133 people suffered from celiac disease, while the gluten-free market

increased steadily between 2013 and 2015, representing US$4.21 billion in sales in 2014, with growth

predictions of over US$7 billion by 2020.4

Singer reasoned that if Fody could reach a fraction of its target market, sales numbers could rise to the

billions. Not only were some IBS sufferers seeking solutions, but medical professionals had also started

looking for FODMAP foods; they were eager to have a solution to offer their patients because the burden

of IBS on the Canadian health care system was considerable, accounting for CA$6.5 billion in spending

and CA$8 billion in lost productivity. Research showed that 40 per cent of IBS sufferers in Canada who

sought medical attention were diagnosed and followed treatment plans for their digestive problems,5

leaving 60 per cent of sufferers unaware of their condition.

Although dietitians and doctors supported the science behind the low-FODMAP diet, it had not yet

entered common knowledge. In addition, retailer purchasers had not heard of low-FODMAP diets, nor

did they have any analytics to demonstrate how such products would perform on their shelves. There was

also a challenge in marketing a product meant to ease uncomfortable and often embarrassing symptoms.

Despite its prevalence, IBS remained a largely taboo subject. Some sufferers turned to online

communities, blogs, and influencers to gain knowledge of symptom management, but online reach topped

off at a few thousand followers per network. The low-FODMAP conversation was still under the radar.

QUESTION 1. MARKET SEGMENTATION (demographic, psychographic, geographic, behavioral):

Using above market segmentation listed above and information from the case study, describe FODY FOODS' segmentation strategy. Why is

this target market attractive to the company? In your opinion is this strategy successful?