Tag Archives: marketing mix

Hi-Tech Fitness

Hate working out? It can be such a hassle – there is travel time, using equipment with other sweaty people, showering in messy locker rooms, and not getting enough personal training attention to make a difference. But still, fitness and health are important. What can be done differently to make workouts more enjoyable and fulfilling? Where’s the technology?

Enter Tonal: a San Francisco-based start-up company that aims to revolutionize how people workout by using high-tech to reinvent the workout system. The innovative product and service combines unique hardware, software, and an interactive LED screen to create a workout experience that doesn’t rely on old-school barbells and plates. Tonal can even sense when a workout is too easy, and add more weights for the next set to set the right level of difficulty.

Tonal is high-tech and effective, but not cheap. The machine itself is $2,995, plus custom smart accessories at $495, and a monthly subscription of $49 per month for 12-months minimum. The Tonal system mounts to a wall (similar to flat-screen TV). For the optimal experience, the system only needs access to a 7-foot by 7-foot space. Tonal measures reps, sets, range of motion, time under tension, power, and volume. The monthly subscription provides expert coaching via video with step-by-step instructions.

No pain, no gain.

Group Activities and Discussion Questions:

  1. Poll students:Where do they work out? How much do they spend on gym memberships? On equipment?
  2. View Tonal’s Web site: https://www.tonal.com/
  3. Discuss the importance of clearly defining a target market.
  4. For Tonal, what is the target market?
  5. Divide students into teams and have each team develop a profile of a target market for Tonal. Include demographics, psychographics, behaviors, values, attitudes, etc.
  6. Based on the target market profile, what makes this product unique for these customers?
  7. Debrief the exercise.

Source:  New York Times

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What Women Want (from Cars)

It’s an age-old question: What do women want? While the answers to this question could fill a set of encyclopedias, let’s limit the question somewhat and just discuss what ‘cars’ women want. Last year, Edmunds.com researched this topic and came up with a list of cars that almost no women drive. Can you guess which car was at the top of the list? It’s a sports car, very pricey, very fast, and starts with “L” ….

Yep, you guessed it. Number one on the list was Lamborghini with male owners accounting for 93% of the buyers (tied with McLaren also at 93%), Ferrari at 92%, Maserati at 84%, and Tesla at 83%. Indeed, 90% of ALL sports car buyers are men. Although men seem to prefer loud, fast, impractical cars, this is a problem for automotive manufacturers as women play a significant role in roughly 85% of all car purchases.

So, what cars do women buy? Overwhelmingly, women prefer cars that are affordable with good fuel economy – and these tend to be mostly from Korean automakers such as Kia and Hyundai, along with Japanese automakers Nissan and Mitsubishi. These findings are based on automotive research company iSeeCars.com which analyzed 54 million car sales and more than 500,000 consumer inquires over a nearly three-year period.

The average price of the top 10 cars preferred by women is $14,870 compared to the average price of cars on the top 10 list preferred by men at $49,224. Let’s compare.

The top five cars women want:

Rank Car Ave. Price Inquiries by Women
1 Hyundai Tucson $16,722 66.2%
2 Nissan Versa $12,144 64.0%
3 VW Beetle $18,179 63.9%
4 Kia Forte $13,730 62.8%
5 Ford Fiesta $13,237 62.8%

 

The top five cars men want:

Rank Car Ave. Price Inquiries by Mean
1 Nissan GT-R *40,450 99.1%
2 BMW Me $35,763 92.2%
3 Porsche Cayman $43,303 91.9%
4 Porsche 911 $65,081 91.5%
5 Lexus GS 350 %33,004 91.3%

 

There are no overlaps on the top ten list. Lest we think this is an inconsequential difference, consider the size of the automotive industry. There isn’t any car company that wouldn’t like to increase the size, and diversity, of its customer base.

Think about it – what do women want?

Group Activities and Discussion Questions:

  1. Ask students about their car preferences.
  2. Divide the class by gender. Ask women what cars they think the men will prefer, and what cars they prefer. Ask men what cars they think the women will prefer, and what cars they prefer. Why these choices.
  3. Ask the women to list the factors they look for when buying a car. Ask the men the same question. Compare the findings on the board.
  4. Still in gender-based teams, have the teams examine the marketing mix of the top companies, and adjust the mix to attract the opposite gender.
  5. Debrief the exercise.

Source:  Ad Week, Edmunds.com, Market Watch, iSeeCars.com

 

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Sun-Maid Raisins Gets an Update

 

Do you remember the last time you bought raisins? It may have been awhile if you are like many consumers who look for the newest products on the market.

Raisins have been a staple of many families; that box of Sun-Maid Raisins in your pantry is from one of the oldest farm cooperative organizations around. Sun-Maid has been in business since 1912 and the cooperative is owned by family farmers who grow raisins and grapes in the Central Valley of California. However, although longevity can be a powerful statement for a company, it can also keep a company from being seen as relevant and up-to-date by today’s younger Millennial consumers. This is the case faced by Sun-Maid.

For the first time in more than 10 years, Sun-Maid will be launching a nation-wide marketing campaign to attract new consumers. The challenge is clear: Raisins are not a top-of-mind snack and faces many challengers for valuable grocery store shelf-space. Consumers are attracted by innovative, new foods. And, while Sun-Maid has launched new flavors of sour raisin snacks, the need for a makeover was clear.

Maintaining growers is also crucial. Raisin acreage in San Joaquin Valley has declined and raisin crops have been replaced by higher value crops including almonds, wine grapes, and other crops. The challenge is to increase consumption, retain growers, and gain new consumers.

What kind of snack do you buy?

Group Activities and Discussion Questions:

  1. Discuss how to build and use a SWOT analysis grid: strengths, weaknesses, opportunities, and threats (internal and external factors).
  2. Review Sun-Maid Raisins: http://www.sunmaid.com
  3. For Sun-Maid, break students into teams and have each team build a SWOT analysis grid.
    1. Strengths: what is company good at?
    2. Weaknesses: what needs work?
    3. Opportunities: what is going on in marketplace?
    4. Threats: what should company be wary of?
  4. Based on the analysis, what are the issues and risks that might occur?
  5. Debrief by building SWOT analysis grid on the white board. Does this give a good picture of the situation faced by Sun-Maid?

Source:  Rodriguez, R. (19 August 2018). Will adding a sour kick get millennials to eat raisins? Fresno Bee.

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