Tag Archives: marketing segmentation

Billie Body Brand – No More Pink Tax!

Why is it that many products that are quite similar in scope and use cost more when sold to women compared to men? It’s sometimes referred to as the “pink tax” when women are charged more than men for feminine products and general services. According to a study done by New York City in 2015, girl’s clothes cost 4% more than boy’s clothes, women pay 7% more than men for accessories such as bags and watches, 8% more than men for clothing, and 13% more than men for personal care products.

Enter Billie – a company that offers a direct-to-consumer product line of female-focused razors, shaving creams, and lotions developed – and priced – for women. One might think of it as the female equivalent of male-focused Dollar Shave Club, but according to Billie’s founders, it really wants to be a friend to its customers and be considered a body brand. It offers a subscription service of razors delivered every one, two, or three months at a price point of $9.00, including free shipping.

Billie makes a point of listening to its customers and forging relationships. They try to treat customers as friends and be helpful and in tune. Billie doesn’t want to tell women how they should look, but do want women to have a choice and provide an affordable solution designed specifically for women.

No more pink tax!

Group Activities and Discussion Questions:

  1. Discuss the stages in
  2. The New York City study report: http://www1.nyc.gov/assets/dca/downloads/pdf/partners/Study-of-Gender-Pricing-in-NYC.pdf
  3. View
  4. View Billie’s story: https://youtu.be/810UnL8ZTNk
  5. View Billie Web site: https://mybillie.com/
  6. Discuss competition: what are the direct competitors for this product? Indirect competitors?
  7. Divide students into teams. Have each team compare one of Billie’s product with a competitive product. What are the points of difference?
  8. Draw a positioning map for Billie.

Source: Brady, S. (8 May, 2018). Making mundane magic: 5 questions with Billie co-founder Georgina Gooley. Brandchannel.com

 

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We Love Candy!

candy

Americans have a sweet tooth. No matter how much we try to eat healthy foods, invariably a time comes when we reach for a sugary snack to give us a quick boost of energy and flavor. Even as health-consciousness grows, candy is a top treat that is still gaining. Today, U.S. consumers spend roughly $21.5 billion on candy, and this number has grown 2% – 4% over the past five years.

The group that buys the most candy shouldn’t be a surprise to anyone – it’s families with small children. The highest volume of purchasers are parents with children under 18 years old. While parents of 3-7 year olds account for 63% of sales, as children reach teen years candy sales lower to 54%. And what types of candy are purchased the most? Chocolate! Purchases of chocolate account for $11.2 billion, while non-chocolate accounts for $6.7 billion. Candy is also in the top 10 branded categories of foods that have gained sales in the past few years.

As it gets into fall, and Halloween approaches, be ready for a top candy season. While Easter leads the way, followed by Christmas and Valentine’s Day, Halloween candy sales easily top $500 million.

Want a candy bar now?

Group Activities and Discussion Questions:

  1. Discuss candy eating habits with students. What candy do they buy, how often, etc.?
  2. Bring up several candy company Web sites to show the different brands and products: https://www.hersheys.com, http://www.mars.com/global/brands/chocolate, http://www.godiva.com/, http://www.lindtusa.com
  3. Discuss the importance of correctly identifying a target market. Although parents with children are the majority buyers of candy, there are other target markets who buy certain types of candies.
  4. Divide students into teams. Have each team select a different target market.
  5. Next, have each team design and name a new candy and determine the elements of the marketing mix: product, price, place, and promotion.
  6. Debrief the exercise by having the teams present their candy to the class. Quiz them on what would change if the target market were to change.

Source:   Nielsen Company  

 

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