22 question s1.Segmentation: The
College Food Industry
Sodexho USA’s Campus Services Division offers a broad range of service styles, price points, and menu
selections with customizable options to suit the needs of different groups. These innovative food programs
are the result of extensive research into student dining trends and preferences and are designed to better
serve the company’s food service markets.
Firms choose from various segmentation methods based on the type of goods/services offered and on their
segmentation goals. Many firms use basic demographic or geographic variables as a segmentation tool to
identify a target market, but if a firm wishes to dig deeper into why customers might purchase a product, the
firm might also wish to investigate lifestyle, loyalty, or benefit segmentation. There are many segmentation
tools that firms can use to best identify a market that will be responsive to their product offerings.
Read the case below and answer the questions that follow.
Sodexho USA’s Campus Services Division realized that customer segmentation would help the firm better
serve its food service markets, so it embarked on a program to isolate and understand different market
segments. As a foundation for its research efforts, Sodexho started with secondary research from
syndicated sources. It accessed the Student Monitor’s Lifestyle and Media Survey, which identifies student
trends and lifestyles. It also partnered with Claritas, which specializes in geodemographic segmentation.
After gaining important insights from this research, marketers at Sodexho developed and administered
questionnaires to thousands of students to learn more about their specific preferences in areas such as
portion size, taste, brands, price, and dining atmosphere.
One tool developed from these efforts, LifeSTYLING, allows the company to segment its markets using
student zip codes. LifeSTYLING has identified six unique segments: Metro Fusion, Main Streamers, Fun
Express, Time Liners, Dream Catchers, and Trend Setters. Each segment has its own lifestyle
characteristics that influence consumers’ preferences for menu items, specific brands, and meal times.
Sodexho relies on this market information to customize the products and dining venues it offers to suit the
specific tastes of different segments.
The company has found this segmentation approach useful in a variety of college settings. As Glenn Kvidahl,
director of Indiana State University’s dining services, explains, “Through that research, they found that about
24% of the population at Indiana State are trendsetters. They’re a little more adventuresome in their tastes.
They may like bagels but not plain bagels. They would rather have jalapeno bagels or blueberry bagels.
They like food with a twist—authentic pastas and sauces, vegetarian dishes. In the Commons, we didn’t
have a lot to attract that group. What we’re trying to do with the Global Market Cafe is appeal to the
trendsetters.” At Sodexho, understanding the needs of different customer segments is part of everyday
1.Which of the following segmentation methods is Sodexho LEAST likely to use in developing its market
2.Sodexho has identified six unique segments: Metro Fusion, Main Streamers, Fun Express, Time Liners,
Dream Catchers, and Trend Setters. Sodexho is working on developing product offerings that meet the
needs of each of these types of market segments. This is an example of what type of segmentation strategy?
Concentrated segmentation strategy
Undifferentiated segmentation strategy
Differentiated segmentation strategy
3.__________ is(are) the image people have of themselves. An example of this would be if Sodexho offered
an organic line of fruits and vegetables to appeal to consumers who perceived themselves as being super
4.One of the main variables for evaluating whether a segment is attractive is whether the segments are
__________. Sodexho was able to recognize six segments that would respond favorably to its product
offerings, thus fulfilling the first requirement of segment attractiveness.
5.Mr. Kvidahl at Indiana State explained that students at his school are mostly trendsetters. Based on
Sodexho’s research, he worked with Sodexho to develop a __________ that would meet the needs of those
students and separate its product offerings from the offerings of Sodexho’s competitors.
2.How do you see yourself?
00:00:03First of all, you’re male or female, you’re
00:00:06probably in your late teens or early
00:00:08twenties, you’re going to college.
00:00:11Gender, age, and education are all parts of
00:00:14what marketers call your demographic segment.
00:00:18But there’s more to segmenting
00:00:21There’s also psychographics.
00:00:23Your wants, needs, and lifestyle choices are
00:00:27all part of your psychographic make-up.
00:00:29However you see yourself, Thermos has created
00:00:33a product for you.
00:00:35Thermos is the global market leader in
00:00:38insulated food and beverage containers.
00:00:41Since their founding in 1904, the company has
00:00:44developed thousands of different products.
00:00:47With such an extensive product line, it’s
00:00:49important for Thermos to be able to target
00:00:52their products to specific customer segments.
00:00:56-Thermos needed to really create a defined
00:00:58consumer segmentation strategy, because we’ve
00:00:60got such a tremendous product assortment
00:01:02to work with.
00:01:03We’ve got over hundreds of items within our
00:01:04assortment, and we needed to make sure that
00:01:06we targeted them to
00:01:07specific consumer segments.
00:01:09-In 2010, Thermos redesigned their website to
00:01:12appeal more directly to
00:01:13their customer segments.
00:01:15As part of the launch, Thermos needed to
00:01:17clarify and redefine these segments.
00:01:20-To really figure out who our consumer
00:01:22segments were, we went to the retailers first
00:01:24to find out what exactly that they were
00:01:25looking for and what products really
00:01:27worked for them.
00:01:28We also did a tremendous amount of online
00:01:30surveys with our customers to really see what
00:01:32products they were purchasing as well as more
00:01:34information about what their likes and
00:01:36dislikes were, their interests, and various
00:01:39psychographics from those consumers.
00:01:42Thermos used this insight to create seven
00:01:44main segments – purposeful moms, super
00:01:48commuters, outdoor enthusiasts, fashionistas,
00:01:52active achievers, epicurean, and tradesmen.
00:01:57Each is clearly defined.
00:01:59-For all of our consumer segments, we really
00:02:01try to gather some demographic and
00:02:02psychographic information for
00:02:04each of those segments.
00:02:05For example, we have our super commuter, and
00:02:07that’s a male or female that’s 21 to 55 years
00:02:10old, they’re college graduates that are
00:02:12professionally employed, they’re married with
00:02:15or without children, and they’re on their way
00:02:17to work every day, looking for a product
00:02:19that’s going to keep their beverages warm or
00:02:21cold throughout their commute.
00:02:23-Though Thermos uses specific segments for
00:02:25marketing, they recognize that there is
00:02:27often some crossover.
00:02:29-A number of our consumer segments really
00:02:30can cross over.
00:02:31For example, we have the purposeful mom
00:02:33consumer segment that’s really concerned
00:02:35about the health and well-being of everything
00:02:37that her family is carrying with them to and
00:02:39from work or school every day.
00:02:41She also is the main purchaser for her
00:02:43household, so she may be purchasing for the
00:02:45super commuter and wants to make sure that
00:02:47her husband has the appropriate food storage
00:02:49or beverage product to get him to and from
00:02:51work during the day.
00:02:53We also know that she may be very fashion
00:02:55conscious, so we really will put her in the
00:02:56fashionista product category as well and then
00:02:59make sure that she has products that are
00:03:00targeted to her outfit for the day.
00:03:03-In addition to reaching customers,
00:03:05segmentation helps Thermos
00:03:06communicate with retailers.
00:03:09-Our consumer segmentation strategy is
00:03:10critical when working with retailers because
00:03:12oftentimes we’ll go into a retail sales call
00:03:14and they’ll say, “Why do I need ten mugs
00:03:17within my assortment?”
00:03:18Well, when we go in there with a strong
00:03:19consumer segmentation strategy, we can say,
00:03:22″You need one for the super commuter.
00:03:23You need something for the fashionista.
00:03:25You need something for
00:03:26the outdoor enthusiast.”
00:03:28So it’s really important for us to be able to
00:03:29have that strong consumer segmentation to
00:03:31present to retail and really get that full
00:03:33breadth of product on the store shelf.
00:03:35-Thermos’ segmentation strategy also plays a
00:03:38key role in helping them expand
00:03:40into new markets.
00:03:42When they see a new opportunity, they create
00:03:44a new customer segment along with a new line
00:03:48-One of the newest consumer segments that
00:03:50we’ve defined is really this epicurean.
00:03:52This is a consumer that’s really interested
00:03:54in entertaining at home.
00:03:55There’s been a significant trend in what
00:03:57they’re calling homegating in that
00:03:59marketplace, and we really needed to have a
00:04:01product assortment that was targeted to that
00:04:03guest, therefore we’ve come up with a new
00:04:05line of product, one of which includes what
00:04:08we call our Cook ‘N Carry.
00:04:09The Cook ‘N Carry is a similar product to a
00:04:11Crock-Pot, but without the cord, so it makes
00:04:13it really easy to take it right from home
00:04:16and bring it to a family or
00:04:17friend’s house for entertaining.
00:04:19-Thermos’ segmentation strategy has been
00:04:21a great success.
00:04:24By clearly defining their consumer segments
00:04:26and by creating new segments, they’ve been
00:04:29able to expand their offerings in existing
00:04:32markets and grow into new markets.
00:04:35-Having such a defined consumer segmentation
00:04:37strategy has really helped Thermos grow our
00:04:39channels of distribution.
00:04:40We’ve expanded into various departments
00:04:43within the mass retailers, as well as we’ve
00:04:45grown outside of the mass channels and gone
00:04:47into specialty markets and specialty
00:04:49housewares as well as
00:04:50specialty sporting goods.
00:04:51And without these defined consumer segments,
00:04:53we wouldn’t been able – wouldn’t have been
00:04:55able to have gone out into those markets.
1.The video mentions how Thermos considers “how you see yourself” when segmenting its market. In
psychographic terms “how you see yourself” is called ______.
a VALS group
2.Thermos develops different mugs and containers for different segments. Thermos is using a(n) _____
3.In identifying market segments, Thermos combines geography, demographics, and lifestyle measures.
This mixture of segmentation schemes is called ________.
4.In communicating the unique customer benefits of its various products to its target segments, Thermos is
defining its ________, which is an important element of its overall _______ strategy.
target market; positioning
value proposition; positioning
value proposition; perceptual mapping
value proposition; segmentation
value proposition; targeting
5.Which element of segment attractiveness is Thermos addressing by increasing the availability of its
products on retailers’ shelves by working with retailers so that they understand Thermos’s segmentation
6.The Cook and Carry, targeted to Epicureans, is cordless and easily portable. This is an example of
1..Branding provides a way for a firm to differentiate its product offerings from those of its _____.
2.Brand awareness measures how many _____ in a market are familiar with the brand.
3.Doritos’s new color scheme and bold logo are part of its _____.
4.Frito-Lay’s spending on advertising and promotion of Doritos’s taste and smell was designed to create
5.Consumers’ trust for Frito-Lay’s brands leads to _____.
6.The relationship between the benefits and cost of Doritos is called _____.
4.Band-Aid: Building on
the Value of the Brand
The Band-Aid brand, which is a part of global consumer goods giant Johnson & Johnson, is widely known as
a leader in the wound-care market. Band-Aid has built its brand reputation through continued product
innovations and line expansions, helping Band-Aid become one of the most recognized names in bandages,
gauzes, and tapes. In this mini-case, we focus on Band-Aid’s branding and product strategies.
The value of a brand translates into brand equity, or the set of assets and liabilities linked to a brand that
add to or subtract from the value provided by the goods or service. Firms institute a variety of brand-related
strategies to create and manage key brand assets. These strategies can include branding policy, decisions
to extend the brand name to other products and markets, using the brand name cooperatively with that of
another firm, and licensing the brand to other firms.
Read the case below and answer the questions that follow.
“Necessity is the mother of invention,” says the old cliché, and in the case of Band-Aid, the saying applies.
Back in 1920, when Earl Dickson came home from his cotton-buying job at Johnson & Johnson, he always
found a hot meal waiting for him prepared by his wife, Josephine. He also found visible burns and cuts on
Josephine from her kitchen labors, which prompted Earl to piece together gauze squares and adhesive tape
to cover her wounds. The Band-Aid brand is widely recognized and respected by consumers and health
care professionals alike, which accounts for its dominant share of the market. People around the world see
the value of Band-Aid products to heal, protect, and repair minor nicks, cuts, scrapes, wounds, and bruises.
In keeping with its long history of product innovation, the company continues to invest in new product
development and marketing. Band-Aids come in a host of styles, including those with popular characters for
kids, uniquely shaped bandages for various parts of the body, antibiotic Band-Aids to help fight germs,
waterproof products with aloe to treat burns, scar-healing strips, and both treated and untreated pads.
Moreover, the Band-Aid franchise has expanded to include ointments, gauze, tape, and first-aid kits to meet
a variety of needs. For example, One-Step Cleansing + Infection Protection Foam antiseptic cleans and
heals wounds without the need for antibiotic ointment; and First Aid to Go! Mini First Aid Kits include
essential travel-sized products.
These new product introductions do not come cheap for Band-Aid. In one recent year, $17 million of BandAid’s $28 million marketing budget was earmarked for three new products. Advanced Healing Blister Block,
a round, waterproof cushioning strip to heal and prevent foot blisters, received $7 million in marketing
support to tout its ability to promote fast, natural healing. Finger Care Tough Strips received a marketing
budget of $5 million and were rolled out as an extension of regular finger care products. Finally, Extra Large
Tough Strips were also supported with $5 million for marketing. Previous years’ launches were similarly
supported, including Liquid Bandages ($7 million), Water Block Bandages ($8 million), and Hurt-Free
Antiseptic Wash ($5 million).
1.Through Band-Aid’s continuous commitment to quality and constant product innovations, Band-Aid has
been able to increase the consumer’s _____________ of the Band-Aid brand.
2.When Band-Aid decided to expand into ointments, gauze, tape, and antibiotic treatments, the company
engaged in what type of branding strategy?
3.Band-Aid introduced First Aid to Go! in response to travelers’ needs for smaller carry-on items. This new
line of products added to the breadth of Band-Aid’s ______________.
4.Band-Aid allocated $5 million to the promotion of the Finger Care Tough Strips as a commitment to
increase the product ___________ of the existing finger care product line.
5.Many consumers in the United States use the term “Band-Aid” to refer to all types of bandages and wound
care products, regardless of the brand. This indicates that Band-Aid has done a great job at building
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