CPA 117 exam case - Patties Foods Ltd (PFL)

Customer profitability was a determinant used for segmenting and targeting, studies were done on customers’ likes, dislikes and types of products they would benefit from and models were developed to determine their propensity to buy.

Considering the marketing segment, we choose the target market from small, medium and large farms. If products are sold to small farms, the sales revenues even can’t cover the cost,

How should this market be segmented? Identify the key segmentation variables that are relevant for this market.

As I mentioned earlier, once we decide on a market segment for the consumer market, it can also be a criterion for selecting a merchant market segment. When the consumer target market is selected, a research could be undertaken to see where this segment spends most in their low-value transactions.

Markets consist of buyers that differ in their needs, wants, resources, locations, buying attitudes and buying practices. To reach customer insight, it is important to understand the needs of different segments and to communicate pertinently to them (Brown L, Brown C, Gallagher SM, 2008).

The company I am using to develop a new retail brand is Kroger with the aim of reaching a broad target market. Based on various segmentation used by consumer and business marketers.

* No proper market segmentation – wide age of customers 18 -45 years male and female

Tanya has returned two months since the last appointment. During that time, she underwent a cardiopulmonary exercise test that revealed reduced ventilatory reserve, but an appropriate heart-rate response and no exertion oxygen desaturation. This is consistent with her exercise limitation being due to the mild airflow obstruction. She also underwent a CPAP implementation study that revealed good control of the obstructive events a 8cmH2O, but increasing central events (ie; complex sleep apnoea) with increase in pressures. Tanya has been using CPAP for the last three weeks in auto-set mode and this has led to some improvement in sleep quality and daytime symptoms.

Market segmentation allows marketers to understand customers’ needs and identify target markets (Peter & Donnelly, 2011). Bright Light Innovations will be able to evaluate different segments to determine differential advantages in each of those segments. Furthermore, management will be able to determine any of the particular marketing mix for a more successful strategic plan. Market segmentation can be obtained by researching geographic data (zip code, region, etc), demographic data (age, occupation, nationality, etc), psychographic data (social status, personal type, etc), behavioral data (customer behavior), or any other data that can be beneficial to the research (Kawasaki, 2004).

Jon Fries, Fletcher Anderson, Craig Schuster, and Catherine Sprauer are the main figures in this case and they had important responsibilities in F&C International, Inc.

We at Temple Consulting have completed an analysis of Ice-Fili’s current corporate standing using data collected over the past several years. Using tools such as Porter’s Approach and SWOT we have analyzed the internal and external environments and have recommended several strategic plans of action. Current areas for improvement such as marketing initiatives and re-evaluation of distribution channels will increase sales and profitability almost instantly. Long term plans such as lobbying against luxury tax on ice cream, partnerships with franchise vendors, and bringing new products to the market, performing an IPO, and planning more global efforts will help keep Ice-Fili rooted as the

Reed Supermarkets started out as a lower-end retailer, but over the past two decades Reed has moved into the high-end in the supermarket business. They have done this with a combination of exceptional customer service, a full assortment of both standard and high-end products, including bakeries, meats and seafood. This niche has been very successful and been the diving force in their growth. Unfortunately, as noted above, customer loyalty to a quality brand has dwindled and been replaced y the need to find the best price. Reed has attempted to combat this by both increasing their high-margin products (private label and prepared foods) and increasing the number and amount of specials they offer. These tactics have done little to change customers’ perception of Reed as a high-end and high-priced retailer. See Appendix A for a full SWOT analysis on HLL.

General Issue: which segments should the company target? How should the company and its products be positioned?

The company can not sustain in the competitive environment without undergoing change in its strategy. Therefore, company has to rebuild its strategy around the profitable consumer segment. The company is required to make marketing initiatives concerning the interest, awareness and perceived value of the consumer. Thus, identifying the consumer groups of high worth can bring huge profits and revenue for TFC (Stahl, 2007).

There are some segmentation for their target market, such as young customer, young executive, executive and expatriate.