Tag Archives: Market segmentation

PepsiCo Buys Bare Snacks

Consumer taste trends are moving to healthy and natural foods.  Organic and non-GMO healthy snacks are a growing industry segment that is particularly appealing to Millennials and Generation Z.

What should a company do to take advantage of the new industry and market segments? While companies can develop new products, market adoption of the new products can take valuable time, and development itself takes resources and money away from a company’s established products. A faster way to enter a new market with a new product is through acquisition. Case in point is PepsiCo’s recent purchase of snack manufacturer Bare Foods Co. to help bolster Pepsi’s health snack offerings.

Bare Snacks was founded in 2001 by a family-owned organic apple farm in Washington. It began by selling baked apple chips in local farmers’ markets. Today, the Bare line of fruit and vegetable snacks are sold at Starbucks, Costco, Whole Foods, Kroger, Target, and more. The products are made from simple ingredients that are baked (not fried) and are officially non-GMO verified. Bare Snacks is a certified B-Corp and reflects its values statements in its products: simplicity, goodness, be real, and live fully.

Bare and Pepsi – an unusual, but winning combination.

Group Activities and Discussion Questions:

    1. Discuss the four primary marketing strategies: market penetration, market development, product development, and diversification.
    2. Which strategy did Bare Snacks use?
    3. Which strategy did PepsiCo using?
    4. Show Bare Snacks Web site: https://baresnacks.com/
    5. Show PepsiCo Web site: http://www.pepsico.com/
    6. Compare the two sites, products, and messages.
    7. Divide students into teams. Have each team select one of the four different strategies and explain why that strategy could be used to market Bare Snacks
    8. Have each team determine the marketing mix (4Ps) to support their strategy choice.

Source: Brandchannel.com (25 May, 2018). PepsiCo adds Bare Snacks to Frito-Lay Portfolio.

Leave a comment

Filed under Classroom Activities

The Ultimate Vending Machine Contains Cars

What was the last item you purchased from a vending machine? Most consumers purchase convenience items such as drinks and snacks at the ubiquitous machines. Maybe in an airport or mall there might be a vending machine for electronics such as headphones and chargers, movies, or prepared meals for people on the go. And, speaking of “on the go”……..

Alibaba’s Tmall recently unveiled what is possibly the world’s largest vending machine, for the world’s largest car market. The product sold in the machines? Cars!

The automobile vending machine, located in Guangzhou, China, is a partnership between Chinese e-commerce company Alibaba and American car manufacturer Ford Motor. The program offers a three-day test-drive to potential customers shopping for a new car. The giant vending machine contains more than 100 vehicles, including small cars, family cars, sports cars, and SUVs. Cars include those made in China as well as imported from the U.S. The goal for the new program is to improve the car buying process for consumers.

The process starts with a mobile app (of course) called the “Super Test-Drive” app. Consumers use the app to research, browse available models, and select a car and pick-up time. Snapping a selfie picture provides facial recognition that is used to confirm the booking and borrow the car from the vending machine. And, if the customer’s credit score is good enough, then the three-day test-drive is free.

This sounds a lot more fun than just getting a snack from the local vending machine!

Group Activities and Discussion Questions:

  1. Poll students: Where are vending machines? What do they buy form vending machines? Why buy from vending machines?
  2. View video of the process: https://youtu.be/zFDDcTOFkEA
  3. While the buying process may vary slightly for different products and target markets, the basic 5-step process remains the same: problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.
  4. Does this vending machine fit the model? Or does the model need to change?
  5. Consider assigning different student groups to work on different target markets. Then the process for the different target markets can be compared and contrasted.

Source: Brandchannel.com (26 March, 2018). Alibaba and Ford launch China’s first Tmall car vending machine.

 

Leave a comment

Filed under Classroom Activities

Tech’s Successes and Failures

Don’t get me wrong – success is great. It’s certainly a lot better than failing. Yet, not every new product meets with success. Sometimes, there are massive flame-outs as a hotly anticipated new product fails to achieve market success. It’s the wise marketer who examines the failures and identifies where it all went wrong.

Technology is one of the most visible industries for both success and failure. Consider the Apple Newton: Failure. Compared to the Apple iPhone: Success. And, technology that seems a sure bet to be quickly adopted takes years, even decades to reach fruition. Consider: Artificial Intelligence.

Some of this year’s failures were massive missteps. Probably one of the scariest and widest reaching failure has to do with cyber security. No one’s personal data seems safe from hackers, and companies that consumers depend on to keep their private information safe have failed. Consider: Equifax. Consumer information including social security numbers and driver’s license data for 145 million Americans was hacked and has caused headaches that could reoccur for years into the future.

On the product side, consider: Juicero. The start-up company raised $120 million from investors but closed its doors this fall. This one isn’t too hard to figure out – Juicero sold a juicer for $700 that could only press produce that came packaged in its own proprietary bags. And, the juicer took longer than someone squeezing the bags by hand.

But successes still abound. Consider these products that achieved market acceptance and gain rave reviews and sales: Apple Watch 3, Nintendo Switch, smart home products, and virtual assistants such as Alexa and Siri.

The line between success and failure is slim, but it can be seen, and oftentimes can be fixed.

Group Activities and Discussion Questions:

  1. Discuss the factors that most impact success and failure for new products and services.
  2. Poll students: What products or services do they think were successes this year? Failures? Why these products?
  3. Show Juicero: https://youtu.be/5lutHF5HhVA
  4. Show the Apple Watch: https://www.apple.com/watch/
  5. Show Nintendo Switch: https://www.nintendo.com/switch/
  6. What is it that makes these products successful or not? What should marketers do?

Source:  Chen, B. (2017, Dec. 13). The biggest tech failures and successes of 2017. New York Time.

Leave a comment

Filed under Classroom Activities