Tag Archives: target market

PepsiCo Buys Bare Snacks

Consumer taste trends are moving to healthy and natural foods.  Organic and non-GMO healthy snacks are a growing industry segment that is particularly appealing to Millennials and Generation Z.

What should a company do to take advantage of the new industry and market segments? While companies can develop new products, market adoption of the new products can take valuable time, and development itself takes resources and money away from a company’s established products. A faster way to enter a new market with a new product is through acquisition. Case in point is PepsiCo’s recent purchase of snack manufacturer Bare Foods Co. to help bolster Pepsi’s health snack offerings.

Bare Snacks was founded in 2001 by a family-owned organic apple farm in Washington. It began by selling baked apple chips in local farmers’ markets. Today, the Bare line of fruit and vegetable snacks are sold at Starbucks, Costco, Whole Foods, Kroger, Target, and more. The products are made from simple ingredients that are baked (not fried) and are officially non-GMO verified. Bare Snacks is a certified B-Corp and reflects its values statements in its products: simplicity, goodness, be real, and live fully.

Bare and Pepsi – an unusual, but winning combination.

Group Activities and Discussion Questions:

    1. Discuss the four primary marketing strategies: market penetration, market development, product development, and diversification.
    2. Which strategy did Bare Snacks use?
    3. Which strategy did PepsiCo using?
    4. Show Bare Snacks Web site: https://baresnacks.com/
    5. Show PepsiCo Web site: http://www.pepsico.com/
    6. Compare the two sites, products, and messages.
    7. Divide students into teams. Have each team select one of the four different strategies and explain why that strategy could be used to market Bare Snacks
    8. Have each team determine the marketing mix (4Ps) to support their strategy choice.

Source: Brandchannel.com (25 May, 2018). PepsiCo adds Bare Snacks to Frito-Lay Portfolio.

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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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The Joy of Books (for kids)!

Remember when one of the joys of being a kid was getting a box delivered to you that was filled with surprises? Even when the box contained books?! I remember it and the pleasure that reading brought (and still brings) to my life. When kids read, new worlds open up to them. And, building a love of reading early can lead to a life-time love of reading and learning.

In a new service geared to young readers, Amazon is starting a new service to send a monthly box of books to kids based on their ages and interests. The Prime Book Box service uses the tag line “The Love of Reading, Delivered” and delivers a curated box of books every one, two, or three months. The service is priced at $22.99 per box, an estimated 35% discount from the cumulative list prices.

Books can be selected for various age groups: Baby to two year olds, three to five year olds, six to eight year olds, and nine to 12 year olds. Each box contains either two hardcover books or four board books. The selection may include classic books as well as new books selected by the editors, and customers have options to swap out books and substitute from a selected alternative list. The service also takes into account a customer’s purchase history in order to avoid sending a book that you had previously purchased on Amazon.

Reading and getting surprises in the mail – it makes kids happy!

Group Activities and Discussion Questions:

  1. Discuss the power of reading for kids.
  2. Poll students: What do they remember about getting books as a kid? What were some of their favorite books?
  3. Show Amazon’s Prime Book Box service to class: https://www.amazon.com/dp/B072J4QS9F
  4. Pricing is usually a complex topic. Discuss the six steps for pricing (determining objectives, estimating demand, determining cost/profit relationships, select price level, set list price, and make adjustments).
  5. Discuss the various pricing models in class: demand-oriented, cost-oriented, profit-oriented, and competition-oriented.
  6. Which strategy is Amazon using for the new service?
  7. Will this be effective?

Source: Brandchannel.com, other news sources

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