Question

You are a marketing manager for Loblaws Food Company considering a new food product to add to stores across Ontario (and possibly Canada). You are considering two very different products: Bison (Buffalo) and a "beyond meat" (simulated meat) vegetable-based protein. Step 1: Pick one of the two products and explain how you could segment the overall grocery market using each of: geographics, demographics, psychographics. Discuss each approach to segmentation on its own and do not limit yourself to one factor (for example, do not use only age as a factor in demographic segmentation). Step 2: Using your analysis from Step 1, construct a detailed Target Market profile (that includes geographic, demographic and psychographic factors).

Answer 1

We are considering addition of “beyond meat” (simulated meat) vegetable based protein. It is a healthy alternative to meat

Demographic segmentation-

Age:   A generation is a set of people who are born around the same time in history, grew up with the similar kind of experiences. For instance Gen X, Gen Y etc.

Gender: Men and women have distinctive differences in their outlook and perception. While observing each of them segments are created accordingly.

Income: Income helps to decide the amount at which the product can be priced.

Religion: Different religion follows different norms for their society.

Geography segmentation

It is when a business divides its market on the basis of geography. You can geographically segment a market by area, such as cities, countries, regions etc.

Psychographic segmentation

It is used to group people by their shared personality traits, beliefs, values, attitudes, interests, and lifestyles and other factors.

Based on our discussion we can target the following customers.

Demographic segmentation-

Age:   More than 50% of the populations are of age between 25 to 64 years. This contributes the working class of the population. This class of people requires healthier eating owing to their lifestyle.

Gender: They have higher women as compared to men in their population.

Income: Average income of the people is $50K, so pricing can be done accordingly.

Religion: Catholics form a majority of the population. They are prohibited from consuming meat on certain days. We can identify that particular segment of the people.

Geography segmentation

Ontario is located in East/Central Canada. It is Canada's second largest province in total land area. It is home to the nation's capital city, Ottawa, and the nation's most populous city, Toronto, which is also Ontario's provincial capital. This provides for a large customer base.

Psychographic segmentation

The people here are diverse and welcoming. Their love for food, curiosity, and trends toward veganism were drivers for the meat analogue market.