Question: With reference to the Popchips case study, explain the concept of focussed differentiation strategy and how it has been effectively applied. The Case Popchips was
With reference to the Popchips case study, explain the concept of focussed differentiation strategy and how it has been effectively applied. The Case Popchips was founded in 2007 by Keith Belling, a serial entrepreneur, and Pat Turpin, a former Costco snack executive. Their idea was simple: Take advantage of high-income purchasers growing desire for tasty, low-fat snacks. Using an innovative cooking method, they found a way to halve the fat content in potato chips while preserving flavour. Popchips has a differentiated product. But its real point of differentiation is its brand and distribution strategy. Most potato chips have mass distribution and a broad buyer base. Belling and Turpin decided from the outset to narrow their distribution and narrow their targeted buyers. They hoped that focusing on a market niche would allow their product to stand out from the bags of Lays and cans of Pringles in aisles all over America. Popchips target upper-income, health-conscious urban and sub-urban consumers. To that end, the firm has signed distribution deals with Whole Foods, Target, and, reflecting Turpins roots, Costco. Popchips marketing emphasizes social marketing and word-of-mouth recommendations. The company sends out samples to key tastemakers who tweet, blog, or recommend the product in traditional media. Ashton Kutcher, MTVs former Punkd host, was so impressed with the chips that he volunteered to promote them. As with Punkd, Popchips advertising is similarly irreverent, with taglines like love. without the handles.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
