The next step in the BP analysis would be to complete the STP - Segment, Target, Position section.
Segmentation:
For segmenting the market on some variables, I am thinking more along the lines of attitudinal - ones which start with the prefix "need for". The laddering exercise in class was a great way to brainstorm these and flush out a comprehensive set of variables that are important to my target segment.
Here is the list, starting with need for:
a. flavor/taste
b. convenience (handling, ease of use)
c. safety
d. saving money
e. environment friendly
f. image
g. health and wellness
Main variable:
To think of this as a "cost of entry" variable, it was not as clear to me in the non-alcoholic beverage space (NAB). All packagining options (plastics, aluminum, glass) fulfill the same basic need of rigid packaging material that contains and preserves the beverage. So then I started to think of the market leader - since they are supposed to dominate on the main variable. Plastics is the clear market leader and presumably the most convenient in general. So, I suppose the defintion of the main variable would be "rigid packagining material that is convenient to handle and use"?
Dynamic variable(s):
In our earn share SoV, this is of paramount importance as this what allows us to differentiate from the competition. In the laddering exercise, I grouped together the benefits that glass can outscore other options like plastics and aluminum. These are the following:
a. flavor/taste
b. environment friendly
c. health and wellness
d. image
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Amanjeev: How does glass compare to plastic on price? I like glass bottles for juice better than plastic...not for any good reason. But as you point out, plastic is the leader and most common soft-drink packaing material. That makes me think that it must be the cheapest...I'm not sure if these other variables would outweigh the convenience and cost factors.
ReplyDeleteSheila,
ReplyDeleteThe popular belief is that glass is more expensive - and there is some truth to that when retail prices of goods served in glass are compared. But it isn't always true to that glass is more expensive to manufacture. In fact, O-I's core competence enables it to produce good quality glass at low cost.
The consumer proposition is that glass is healthier and more environment friendly and also things tastes better in glass (the latter maybe the reason you like fruit juices in glass). It's a matter of choice for the consumer, which factors are more important to who and when (e.g. you may prefer glass in a restaurant setting or at home but not when you are on the move). There is definitely a market and lot of it is also changing the consumer's perception/importance about the benefits of glass.