Tag Archives: target market

Global Cuisine in the Supermarket

Why do grocery stores still have an ethnic foods aisle? This seems out-of-date as an estimated 40% of Americans now identify as nonwhite. While some people think this is a racist label, others just find it confusing and makes it hard to find the foods they want.

The origin of the ethnic food aisle date back to the start of supermarkets in the early 1900s. Prior to the 1920s, shoppers visited several independent shops (butcher, baker, etc.) for different foods and supplies. In fact, some stores retrieved all items from the shelves for the consumer – the consumer didn’t shop, or roam down aisles looking for foods. A clerk did the shopping for them.

The first major self-service grocery supermarket was Piggly Wiggly in 1916, located in Memphis, Tenn. The growth of supermarkets and self-service shopping required that foods be organized by like items and tastes so they could be found in the store. Items needed for international cuisine dishes were therefore placed together so that the recipe items could be easily purchased.

Today, the ethnic food aisles seem to be a hodge-podge of items. There might be Chinese ingredients, fish sauces, Mexican spices, Korean noodles, African flour, and others all pulled together in a central place. Even in that format, many shoppers like the variety of the aisle, considering it a place to find new or unusual flavors.

Some stores such as Kroger have integrated global foods into every aisle and seen great success. Other stores prefer to keep items separate so that they can be highlighted differently.

What’s your opinion?

Group Activities and Discussion Questions:

  1. Discuss the evolution of grocery stores and shopping.
  2. Show a great video highlighting ethnic food aisle issues: https://youtu.be/4Q–YIt_0Hw
  3. For a longer exercise, divide students into teams and have them visit a local American supermarket. They can diagram aisles and take photos of shelves and foods.
  4. What are their observations about how and where more ethnic foods are stocked?
  5. How could ethnic foods be categorized in stores?

Source:  Business Insider; New York Times

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Nike: “Play New” and “Toughest Athletes”

Most of the time marketers target a specific group of consumers for their products and services. Marketers can target a consumer group using a number of factors including geography, demographics, lifestyle, attitudes, and behaviors. The key is to understand the consumer group for which the products are intended. The products have to show value and benefits; the company’s advertising has to show that the company understands the needs and desires of the consumer group.

Athletics is a very large consumer group. It can have professionals, amateurs, youth, mature, various sports, and more. Nike recently launched a new campaign to appeal to people who want to try new sports but fail at them, encouraging new athletes to not give up after a few fails. For this market, there are many existing products to sell, but the mindset is different. The “Play New” campaign showcases elite athletes and professionals trying a new sport that they don’t excel at – and shows them failing at it! The campaign will be paired with a full-body Snapchat augmented reality lens customized for yoga, dancing, surfing, and boxing. All are encouraging consumers to attempt something new and uncomfortable initially.

In addition to “Play New,” Nike also launched a new campaign (along with full athletic wear apparel) geared to pregnant women and new moms. New moms are of course cast as the “Toughest Athletes” and the commercial shows international moms-to-be and moms who are flexing their athletic and maternal abilities. Additionally, the campaign will contain four guided, motherhood workouts that will be part of the Nike Run Club app.

Nike seems to identify new markets and approaches at a high rate. What other approaches could it take?

Group Activities and Discussion Questions:

  1. Poll students: What are the target markets for Nike? (Did anyone mention pregnant women and new moms?)
  2. Show the Nike video for pregnant women: https://youtu.be/_-5MGkUwe6w
  3. Show the website for Nike Maternity wear: https://www.nike.com/maternity
  4. Video for “Play new” campaign: https://youtu.be/BUvEEVq4woU
  5. Why these two target markets?
  6. What else can Nike do to encourage buying from these consumers?
  7. What other new target markets could Nike sell to?

Source: Ad Week; other news sources

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Peloton Adds New Products and Cuts (Some) Prices

The pandemic has been tough on most companies. Consumer demand for products has shifted, as well as buying behavior. Some companies won’t make it successfully through this period. However, unlike other companies, Peloton seems to have weathered the Covid-19 pandemic very well. Sales for home fitness equipment have been strong as gyms and fitness centers have closed or limited the number of patrons in their facilities.

Recently, Peloton expanded its product line with new versions, and has cut prices on older equipment by roughly 16%. Peloton currently sells two primary types of exercise equipment: a stationary bike priced at $2,245 and a treadmill priced at $4,295. When the new products launch, the new Peloton Bike+ will be $2, 495, but the older bike will be reduced to $1,895. The new bike will accommodate more than just biking and includes upgraded cycling, a better sound system, and a 24-inch touchscreen that swivels for yoga or weight training in a different area.

The new treadmill will be cheaper at $2,495 compared to the existing treadmill at $4,295. The new prices are intended to extend the customer base while still offering high-margin products.

Peloton continues to offer “connected fitness” to its subscribers, linking them to instructors and other workout fans so that even when working out alone at home, customers can connect with a community of other riders and instructors. Monthly subscription memberships are $39/month and the company currently has roughly 866,000 subscribers. In addition to cycling classes, the company streams yoga instruction, strength training, running, and more workout programs.

Ready to ride?

Group Activities and Discussion Questions:

  1. Discuss industries impacted by Covid-19. Which companies are winners? Losers?
  2. How has the pandemic impacted Peloton?
  3. Show Peloton’s Web site: https://www.onepeloton.com/
  4. What is the impact of the new products and price reductions for older products?
  5. Compare a Peloton bike and subscription to the average gym membership. What are advantages and disadvantages?
  6. Divide students into teams and have each team research and compare Peloton’s products and services to its competitors:
    1. NordicTrack: https://www.nordictrack.com/
    2. Echelon Fitness: https://echelonfit.com/
    3. Mirror: https://www.mirror.co/
    4. Tonal: https://www.tonal.com/
  7. What pricing strategies is Peloton using? Will this be an advantage or a disadvantage compared to the competition?

Sources: Associated Press; New York Times; Wall Street Journal; other news sources

 

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