Answer to Question #192184 in Management for hemangi

Question

Health and Nutrition Start-Up, Habbit makes consumer debut with a range of innovative & delicious Products. Habbit Wise Creams are the lowest calorie ice creams in the world. Every serving has less than 50 calories, which is less than half an apple. Available in 6 gourmet flavours such as Blueberry Crumble, Salted Caramel, Lychee Blush, etc. Wise Creams contain zero added sugar and are keto + diabetic friendly. Prepare an appropriate Segmentation Strategy for the new launch. Considering that they have entered in consumer market for the first time, how should the brand be positioned in the market?

Answer 1

A market segmentation strategy involves organizing your customer or business base along demographic, geographic, behavioral, or psychographic lines or a combination of them. It involves how businesses can segment their market by gender, age, lifestyle, and status, among others. A new product launch into the market should ensure that it focuses on the demographics to determine the population to understand the possible customer base it can acquire in that market. The company is in health and nutrition producing delicious products, should focus on the youth and young children since they like the delicious foods over the old age population market. Secondly, the company should consider geographical area due to the supply chain management and easy logistics of its product on the launch of the product. It should consider an area with good infrastructure where faster delivery of their products to avoid shortages. Thirdly, the firm should consider the behavioral and psychographic issues of the product. It involves how people respond to the product and their perception of calories level, being diabetic-friendly, and zero sugar added to the products as this determines future demand. How people respond to it determines how they can remodel their product on an excellent runoff in the market.

In brand positioning, the marketing team should ensure they determine the key competitors in the market, such as Cadbury. It should then know how the competitor's brands are positioned and determine the weak links not well utilized by the competitors and capitalize on them. Their positioning should focus on the price by setting their price a bit low compared to the competitor, ensuring that their product is unique and very healthy to society, and maintaining a high quality of their products. A new product should always ensure that its positioned to be cheap, quality, unique, and widely accepted by society to have broad market coverage.