The success of Food For Life Bakery, Co depends on how it develops its market segmentation and value position of its products. The company needs to identify its competitors and look at their current positions in the market. Based on these facts, it has to develop its competitive advantage strategies that will differentiate its products from its competitors. Based on their differentiation, the company needs to come up with its value proposition and develop a positioning statement.
Marketing Strategy Developments
Market segmentation is the process of dividing markets into different groups of clients having distinct similar wants and service/product requirements. The major objective of segmenting markets is to leverage scarce resources. This ensures that components of price, marketing mix, product, distribution as well as promotion, are designed in a manner that particular needs of different clients are met. The aspect of segmentation is much connected to product differentiation. If the company targets different market segments, it has to adapt different variations of its offering for the satisfaction of these segments. There exist two main approaches used in market segmentation, namely; breakdown method and build-up method, (Abratt, 1993).
Different segmentation bases that will be used are demographic, geography, psychographic, behaviorist, and geographic. Both psychographic and behaviorist bases will be used in the determination of preferences as well as demand for products, and the content of advertisements. On the other hand, geographic and demographic will be used when determining product design as well as regional focus.
One of the target market for the company is urban workers as well as suburban residents, who are looking for a quick service food as well as more aesthetic pleasing dining experiences, as compared to these offered by traditional fast food restaurants. This statement shows that, that company has a wider market target, as more concentration is focused on anyone who wants fast quality food. In addition, due to the growth of catering programs in the company, target market also includes workplaces as well as in schools. The affluent subrbanites, especially the baby boomers, who desire to spend more money for what they see as healthier foods as well as a relaxed dining experience. This segment will be appealed through the provision of salad and a half sandwich free deal. They will aso come from every where to get the added advantage of free internet, (Weinstein, 1987).
The baby-boomers form the most profitable market target as they have a lot of spear money to spend, as compared to other generations. The value proposition for the company's product/service through differentiation and positioning is as;
Value Proposition All Benefits Favorable Points of Difference Resonating Focus Consists of: All advantages customers get from a market offering All constructive points of difference a market present has relative to the next best option The main points of distinction(and, perhaps, a point of uniformity) whose upgrading will deliver the greatest value to the customer for the projected future Answering customer's question: "Why should customers purchase Food for Life Baking, Co' offering?" "Why should clients purchase Food for Life Baking, Co offering instead of suppliers'competitor? "What is most worthwhile for Food for Life Baking, Co to keep in mind about its offering?" Requires: Knowledge about own market offering Knowledge of own market offering and the other alternatives that are best. Knowledge of how own market submission distributes superior value to customers, compared with next best alternative Has the possible pitfall Benefit declaration Presumption of Value Needs customer value research.The major competitors of Food for Life Baking, Co, are Panera and Secret recipes. Panera bread is a company that started in 1981, just as small sandwich shop. It expanded after going public and acquired more stores. For its success, the company has implemented several success strategies, for instance identification of opportunities and threats, target market analyzing, position determination in the market among others. Even after winning all these recognitions, the Company has moved on with community outreach duties.
Secret recipe on its side was founded in 1997. It is a unique casual dining caf‚, that serves more than 60 types of menu sellection, and more than 40 cake types, baked deserts, arrange of flavored ice cream as well as beverages. The company offers personalized services, a part from being a leader in global lifestyle. At any time, it ensures that there is at least something for everyone, (Businessweek, 2011).Competitive Strategies that could be used to differentiate Food For Life Baking products from its competitors include tight quality control by the use of the best ingredients, maintaining distributor relationships with the top grocery chains, and maintaining social awareness-which the company already does. Its stance is considered proactive in that it has taken a long-range view given the current policies being developed around food safety and quality control. The competitive advantages the company will be using for positioning include The company has expanded to include other organic product lines allowing them to capture a greater portion of the organic product buying market: Crystal Falls, Natural Food Mill Bakery and Sunrise Products area all aimed at the ever growing health conscious baby boomer and GenXer demographics who are growing ever more concerned with everything organic. Another opportunity that they have is the use of technology. As more and more people are online communicating with one another and sharing information, Food For Life could create a blog or customer discussions and recipe board where people could share their stories and ask questions of each other and the owners of the company concerning their products health benefits and where to find them in the event that there's not a store in their area.
The company's value proposition of enormous ambience and high quality breads at affordable prices has ensured that, the caf‚ provides something for everybody at any day's time. As an effect, the company offers full line products that cater for a wide range of demographic profile. The developed positioning statement of Food For Life Baking, Co is. The Food for Life Baking, Co is much committed in helping its customers in the selection of products that best suite their wants and needs through provision of detailed product information that is seconded by general advice on healthy and hygienic eating lifestyle,