Tag Archives: product differentiation

The $1,000 Trash Can

How much trash do you generate in a week? Probably quite a few trash bags if your house is anything like ours.

What goes into your trash can? Does it smell? Yeah, we know. Ours does, too. And sometimes those darned fruit flies show up uninvited. (Hold nose as appropriate.)

But there are options for generating smaller mounds of trash, and even recycling the waste can be easy. Many people do use composting to get rid of trash. But what if you can’t, or won’t, compost? There is still a solution for you if you are ready and willing to spend $1,000 for a state-of-the-art Mill Food Recycler!

In brief, the Mill trash can takes food scraps and pulverizes them into what looks like coffee grounds, but doesn’t smell. Food scraps go into the Mill, internal air circulates and uses a charcoal filter to neutralize odors, dries the food, and grinds it up into a type of compost that can either be mailed back to Mill, or used as compost in gardens. It’s not complicated, after all it is a trash can.

Open the lid using a foot pedal, put in any food product (no bones or shells though). When enough food accumulates, the bucket heats up and the motor runs for a few hours at night, yielding non-smelly grinds. And, for an additional $10 per month, the grounds can be shipped back to the company, which then further processes them and provides them to farms for chicken feed or other uses.

But what’s that you say? You don’t have a grand to spend? Mill even has a rental plan for $30 a month, and you can buy it at the end of the lease.

Ready for a new trash can?

Group Activities and Discussion Questions:

  1. Discuss
  2. Show Mill website: https://www.mill.com/
  3. Show video of product in operation: https://youtu.be/ESuG7j00j9o?si=Yvmh3bb9Fcplp5F3
  4. Discuss the importance of clearly defining a target market.
  5. For this product, what is the target market?
  6. Divide students into teams and have each team develop a profile of Mill’s target market.  (Include demographics, psychographics, behaviors, values, attitudes, etc.)
  7. Divide students into groups to work on this exercise.
  8. Have each team develop a marketing plan for this product. Make sure they select three different tactics. For each tactic, explain why it was selected and how it will be used.

Source: Merck, K. (18 August 2024). Review: Mill food recycler. Wired; Peterson, K. (29 December 2023). Will people pay to send their banana peels through the mail? Wall Street Journal; Rothman, W. (1 September 2024). I tried a $1,000 trash can for two months – and I get it. Wall Street Journal.

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A Different Type of Phone – The Light Phone III

Want to kick your social media addiction? Then try The Light Phone III with its minimalist design and approach. And when we say ‘minimal’ that’s what we mean. This phone does not have access to social media, the Internet, or email.

If this sounds opposite of other smart phones such as Apple and Google, you are right. Instead of building more technology into a phone, Light is subtracting apps from its phone and packs a lot into a small footprint. It’s about the width of an iPhone, but shorter – like a BlackBerry.

This is the third generation Light Phone which originally started as a Kickstarter campaign; the company has sold more than 100,000 phones to date.

Lest you think the Light Phone is devoid of all usability, it does have maps, music, texting, notes, a calendar, timer, alarm, calculator, and a flashlight. It also has a large OLED display, plus a camera and an NFC chip for future payment tools. What is doesn’t have is pesky social media apps, clickbait news, and Internet browsing. In other words, it’s a ‘non-smartphone’ that gets users back to the basics of communication without a lot of distractions.

Call me.

Group Activities and Discussion Questions:

  1. Poll students: How do they use their smartphones?
  2. What could they live without? Would they be interested in a simpler phone?
  3. Show video about The Light Phone: https://youtu.be/RnltPjVK9wk?si=9dVZytMj7x3OvT2h
  4. Show The Light Phone website: https://www.thelightphone.com/
  5. Divide students into teams. Have each team define a target market, including psychographics, demographics, lifestyle, etc.
  6. Have teams identify how to reach this target market.
  7. What promotions should be used?

Source:  Karcz, A. (18 June 2024). Light Phone III challenges what is means to have a smartphone. Forbes; Perez, S. (11 June 2024). Light introduces its latest minimalist phone, now with an OLED screen but still no addictive apps. TechCrunch;  Pierce. D. (11 June 2024). The Light Phone 3 is a little less light – but a lot more useful. The Verge.

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Raising a Fur Baby isn’t Cheap

We love our pets. We truly do. They’re furry and soft and show their love for their people (except for cats). But the costs to keep them healthy is increasing. Between veterinarian bills, food, insurance, toys and more, the costs just seem to build. One of the largest recurring costs is food. Over the last three years, pet food prices have increased more than 23%. That’s a big part of the monthly consumer budget and spending.

Last year, Americans spent more than $64 billion on pet food alone! And this year’s spending is expected to grow by another 4%. More than 40% of pet owners also want their pets to eat healthy.

As a result of the price increases, more consumers are searching for bargain brands instead of big brand labels when shopping for pet food. Savvy companies such as Post Consumer Brands and General Mills have purchased different pet food companies over the years to gain products at different price points.

According to research by CashNetUSA, the most expensive country for feeding dogs is Japan at $2,056 annually, while in the U.S. feeding a dog is roughly $865/year (still pretty expensive).

In the U.S., the average dog owner will spend more than $28,800 over the pet’s lifetime. The most expensive state for pet costs is California (at $35,452/lifetime) versus Oklahoma as the least expensive (at $24,855). No wonder consumers are searching for lower-cost options!

According to a survey of 1,000 dog owners nationwide, 91% of people have experienced some degree of financial stress related to the cost of pet care. Roughly 66% of people state they have cut back on personal spending in response the increased costs.

How much do you spend on food for your fur baby?

Group Activities and Discussion Questions:

  1. Poll students: Who has a pet? How much do they spend on pet food each month?
  2. Show the chart of global expenses for feeding a dog: https://www.petfoodindustry.com/pet-food-market/news/15662748/study-reveals-the-cost-to-feed-your-dog-in-every-country
  3. Show the chart of dog expenses in each U.S. state: https://www.marketwatch.com/guides/pet-insurance/cost-of-owning-a-dog-study/
  4. Show results from survey of 1,000 dog owners: https://www.usatoday.com/money/blueprint/pet-insurance/cost-of-pet-ownership-2023/
  5. Review key aspects of developing a product positioning map, including determining the axis labels for positioning.
  6. Review pet food brands. What products are competitors?
  7. Divide students into teams and have each team develop a positioning map for one of the pet food brands.
  8. Next, for their team’s brand, have each team select three different tactics. For each tactic, explain why it was selected and how it will be used.

Source:  Cleaver, L. (24 January 2024). Study reveals the cost to feed your dog in every country. PetfoodIndustry.com; Gollub, H. and Lobb, J. (21 February 2024). Survey: 91% of dog owners have experiences financial stress over the cost of pet ownership. USA Today;  Johnson, B. (23 May 2024). Costs keep rising to feed the fur babies. Minneapolis Star Tribune; Wallace A. (22 March 2023). Price hikes are double whammy for pet owners who are crushed by inflation. CNN Business.

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