Tag Archives: market segments

by | Monday, February 6, 2012 · 7:49 pm

Are you smart enough to segment a market?

One size does not fit all. Not for clothes. Not for cars. And now, not for soft drinks either.

Marketers know that identifying a target market is critical to success. But not all companies have the guts to clearly go after a single segment and risk alienating the broader market. Dr. Pepper is taking that risk and is betting big. Their new target market for their diet soft drink is men. Not girls, not kids, not grandparents – they want Men (with a capital M) to drink Dr. Pepper Ten.

Dr. Pepper is taking note of the increasing size of men’s waistlines, and is targeting their diet soda directly to them, using advertisements that appeal to the tough-guy mentality. Men between the ages of 25 and 34 say they need to make healthier choices in sodas, but don’t like the usual diet pop taste or image.

Chicks needs not apply (but are still welcome to buy the product)!

Group Activities and Discussion Questions:

  1. Show a video clip of a Dr. Pepper Ten commercial. These can be found on www.youtube.com, use Dr. Pepper Ten as search term. http://youtu.be/3iuG1OpnHP8
  2. Ask students to identify three products that are aimed only at men, but that women buy also.
  3. Next, take a common household product (i.e., laundry detergent, toothpaste) and ask them how they would change the elements in the marketing mix to target the product specifically to men.
  4. Have students discuss the risks and benefits of targeting a sole gender with a broad-based product. When is it a good idea? When is it a bad idea?

 

 

Sources: Advertising Age, Brandchannel.com

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by | Monday, February 6, 2012 · 7:47 pm

Can I drive you to this sale?

Look around any major metropolitan city and you see taxi cabs. What if marketers could actually use these taxi rides to sell their products to riders? Want a coupon for 20% off dinner tonight? How about a movie? Want to go there now?

VeriFone Media operates in thousands of cabs around the country. In New York City, the capability is in 6,800+ cabs – providing a large captive audience for viewing promotions, local programming, and products. With the capability of recognizing specific geographies and times of day, the advertising can be targeted to meet specific needs of the riders. (Or maybe just annoy the riders.)

Verifone also has a video advertising product that is used at gas pumps. This gives a one-on-one experience at the pumps, changeable by time of day, location, and promotion.

 

 

Group Activities and Discussion Questions:

  1. Ask students to consider the ads that are currently placed on taxi cabs in their city. What have they seen? Are these effective ads?
  2. Ask students to identify the different market segments who ride in taxis. What do these segments want from a taxi ride?
  3. Have students visit the VeriFone Web site to learn more about the strategy for the product. http://www.verifonemedia.com/vnet/taxi.aspx
  4. Also have students review the gas pump product – At the Pump – and discuss pros and cons.
  5. What are the limitations for these types of promotion?
  6. What are the benefits for these mediums?
  7. What are products that could use these types of promotion?
  8. How would they deploy these advertising media in an integrated marketing plan?

 

Sources: Advertising Age, New York Times, VeriFone Media

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by | Monday, February 6, 2012 · 7:43 pm

Starbucks – It’s not just for breakfast

Your favorite local coffee shop may soon be serving more than mochas and lattes. On January 23rd Starbucks announced that it is expanding its concept of serving wine, beer, and premium food offerings in a number of different markets in the U.S. Yes – you read this right – Starbucks will soon be selling alcohol in the evenings, thus expanding how and when customers can visit the stores. In the evenings for a more relaxing beverage, hold the caffeine please.

Starbucks has been a favorite destination for coffee lovers for several decades now. But once the day light is gone, the visits decline. Thus, more customers will likely visit Starbucks in the evening hours, or as they call it, “day parts.” This is the quiet time for the stores; the morning rush is over and the afternoon business slows down. Serving wine and beer in the afternoons will increase store traffic for drinks and food.

The company has been quietly testing the new concept in selected locations in Pacific Northwest area. This month’s announcement will expand the new concept to stores in Chicago, Atlanta, and southern California.

Group Activities and Discussion Questions:

  1. Start by asking students where they get their caffeine from during the day. The usual answers (depending on geography) will cover Starbucks, McDonalds, Dunkin Donuts, Caribou, and other cafes.
  2. Ask what times of day they visit the coffee shops. Why only during those times? What would incent them to visit these shops in the late afternoon or early evening hours?
  3. Have students visit the Starbucks Web site at www.starbucks.com.
    1. See if they can find information about the new product offering. (Hint: It’s hard to find; go to the news announcement section to find the information.)
    2. Why is Starbucks staying relatively quiet about the new product introduction?
    3. What market segments will the company attract?
    4. Who will likely compete with the new offerings?
    5. Does this enhance or hurt the Starbucks brand?
    6. What will the company need to do to drive store traffic for the new products?

 

(Sources: Wall Street Journal, Advertising Age, Brandchannel.com, Business Week, New York Times)

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