Tag Archives: Market segmentation

Sharing Happy Hour with Pets

Americans increasingly treat pets as more than just an animal or belonging – we treat our pets as important members of the family. Pet owners now look for healthier choices and lifestyles for pet care, fundamentally shifting consumer behavior and spending. The pet care industry represents more than $20 billion in the U.S., and, according to Nielsen Research, 95% of pet owners consider their pets to be part of the family. This attitude carries over into shopping for food, treats, toys, and specialty items.

Therefore, it was just a matter of time for companies to develop new product so that humans could share celebrations and happy hour beverages with their pets. The newest category of product is faux wines for cats (and dogs, too)! With clever names and packaging, the category is expanding. People can buy their kitties bottles of “Catbernet,” “Pinot Meow,” and “Meowgarita” from Denver-based Apollo Peak. Or, buy “Dog Perignon” and “Dogtini” from Pet Winery in Fort Myers, Fla.

Of course, since alcohol can harm animals, these wines are actually alcohol-free. Using organic ingredients and catnip, the beverages are aimed at people who want to enjoy celebrations with their pets. But, as most cat owners know, cats can be quite finicky. In taste tests, some cats loved the products, while other cats simply showed their disdain.

Happy hour, meow?

Group Activities and Discussion Questions:

  1. Poll students: How many have pets? How much do they spend on their pets?
  2. Show the Web site for Apollo Peak: http://www.apollopeak.com/
  3. Also show Pet Winery: https://www.petwinery.com/
  4. Videos can be viewed at:


  1. The Chew: https://youtu.be/4DiO8MZTmnU
  2. Divide students into teams.
  3. Using a market-product grid, have students develop target markets for pet owners. Then, put categories of products across the top (Ex: food, toys, treats, wine…)
  4. Which target markets represent the best opportunity for pet wines?
  5. How should the products be marketed?

Source:  New York Times, Nielsen Research

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Lamborghini SUV Targets Female Buyers


Quick: What comes to mind when picturing a Lamborghini sports car? And, who comes to mind as the ideal customer for the Lamborghini cars? Most likely, you said the customer is a wealthy male. After all, Lamborghini uses a bull as its brand. But, consider what would have to change if the company were to refocus its efforts to attract a new customer base – females.

Lamborghini is doing just this – the company is working on a new SUV model which is due to the marketplace by 2018. It hopes the new SUV will attract women and families as primary customers. This is a big switch for Lamborghini – currently only 5% of its global buyers are female. Money isn’t the main issue for women – the issue is that women don’t think the manufacturer understands the needs of female buyers.

Women are a large and valuable percentage of the SUV market. According to J.D. Power & Associates, women buy 53% of all small SUVs, and 48% of all small premium SUVs. And, for the single woman market, sales of premium small SUVs grew by 177% from 2010 to 2015. Plus, two-thirds of female buyers report that their vehicle purchase decision is entirely their own.

So, what do women want? Well, it sure isn’t a “shrink it and pink it” answer. In order to gain female buyers, Lamborghini is going to have to show that it understands the needs of women and families. The new SUV will need to be one that women can use often, and in comfort.

Group Activities and Discussion Questions:

  1. Visit Lamborghini’s Web site and view several of the car models: https://www.lamborghini.com
  2. Ask students to describe the target market for the company.
  3. Also, have students develop a positioning map for Lamborghini cars.
  4. Now, talk to students about changing the target market.
  5. Divide students into teams. Have each team prepare a re-positioning map for Lamborghini to reflect a new target market of women.
  6. What happens to the marketing mix when the target market changes?
  7. Have students develop the 4Ps for the new SUV: product, price, place, and promotion.

Source:  Bloomberg News

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Animal and Vegan ‘Meats’- Now That’s Diversification!


Consumers’ focus on health and wellness has been challenging traditional food companies to enter new areas of the market. While many food industry segments have been struggling to hold steady, one area of growth appears to be in the “alternative foods” markets – namely organic, vegetarian, and vegan foods and meals. According to Lux Research, the alternative foods segment could grow to $108 billion by 2050.

Traditional meat companies are taking note of the changing food trends and are reacting through investments in new products and acquisitions. It’s not only the changing taste buds of consumers impacting food companies. There are also concerns about draining of natural resources in water and land that are a result of raising animals solely for meat consumption. Some large food companies are also examining using alternative proteins in their existing products.

As an example, consumer food giant General Mills bought Annie’s Organics a year ago to appeal to a new market segment. And recently this year, Tyson Foods invested in a five percent stake in Beyond Meats, a company that sells plant-based protein food that “…looks, feels, tastes, and acts like chicken…”Beyond Meats is currently sold in more than 7,500 stores in the U.S.

Group Activities and Discussion Questions:

  1. Discuss the four primary marketing strategies: market penetration, market development, product development, and diversification.
  2. Show Web sites and discuss the companies’ products and markets:

Tyson: http://www.tyson.com/

Beyond Meat: http://beyondmeat.com/

  1. Which strategy is Tyson using for acquiring Beyond Meats? Why?
  2. Which strategy did General Mills used when acquiring Annie’s Organics? Why?
  3. Divide students into teams. Have each team select one of the four different strategies and explain why that strategy could be used to market a product of their choice. (Ex: Sports drinks, soft drinks, music, etc.)
  4. Have each team determine the marketing mix (4Ps) to support their strategy choice.
  5. Debrief the exercise.

Source: Los Angeles Times

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