Over twenty years ago, the TERRA™ brand revolutionized the natural snacks market with deliciously different TERRA Exotic Vegetable Chips. Their commitment to providing wholesome gourmet snack foods has led to innovative, chef-inspired vegetable chip combinations that are always made with 100% natural ingredients (Terra Chips, 2012). Market Segmentation
Different people have different tastes and preferences in markets. And segmentation helps in closer matching of a company’s products and capabilities with customers needs (Wind, 1978). The process of classifying people who form a given market into even smaller groups is called market segmentation. In other words segmentation is referred to as the process by which marketers “understand” a market, having collected and then analyzed several variables using sophisticated multi-variant technique (Hoek, Gendall & Gendall, 1996). Terra Chips’ market segment profiles are:
Segmentation Variables| Geographic (Country)| Demographics| Psychographic | Behavioral (Usage Rate)| Nutritional Snackers| U.S.A| Better Educated Have young children, Income is usually high| Self Assured,Controlled | Light| Weight Watchers| U.S.A| Younger Single, Income is medium to high| Outdoor influential, Venturesome | Light| Guilty Snackers| U.S.A| Lower Self – Conscious females, income is low to high| High Anxiety, Isolate | Heavy| Party Snackers| U.S.A| Middle-aged Non Urban, income is medium to high | Sociable, Friendly, Gregarious| Average| Economical Snackers | U.S.A| Larger Families, Better educated, income is low to medium| Self assured, price oriented| Average|
In target marketing the seller distinguishes the major market segments, targets one or more of these segments, and develops products and services tailored to each selected segment (Wright & Esslemont, 1994). Terra Chips’ target market is “Nutritional Snackers”. The target market consists of consumers with high value for nutrition, who only consume snacks which are not artificial and are all natural. Terra chips specializes in offering nutritious chips, in fact The word "terra" comes from the Latin root word "tierra," which means "of the earth." TERRA Chips stay true to the "tierra" namesake by providing a chip made with all-natural, earth made ingredients that allow you to indulge your taste buds without compromising a healthy lifestyle(). These chips are also a bit expensive but the segment of “Nutritional Snackers” usually consists of consumers who are willing to spend for nutrition.
Benefits Sought by “Nutritional Snackers”:
* Chips with high content of nutrition
* No artificial ingredients
* All-Natural, made with vegetables
* Low calories
* Good taste
* Choice in flavours
* Comfortable Packaging
Pringles Not Nutritious Nutritious
In the current chips market the choice for nutritious food is very limited. But the choice for non-nutritious products is quite high. These range from cheap to expensive varying according to brand name and quality. Lay’s and Cheetos for example offer...