Market Segmentation and Product Positioning
Dr. Harrychand Kalicharan
October 24, 2010
Identify the marketing segment for the product and explain why this segment was selected. According to Advertising Age (September, 2009), premium ice cream and frozen yogurt products are losing market share to mid-priced and other frozen dessert products. Information Resources reported that frozen ice products comprised a third of the $2.4 billion ice cream category for the year ending May 21, 2007, generating $717.7 million, up 9.3% from the previous year. Based on this information, it is anticipated that the frozen dessert market can be divided into two customer segments. The first segment prefers premium ice cream and frozen yogurt products. The other segment obviously includes those that prefer frozen ice products. Shave ice products are ideal for today's health-conscious consumers. They boast no fat, no cholesterol, and are relatively low in calories. The potential success for selling shave ice is attributed to the following: Compared to other food service products, Shave ice parlor will be a relatively simple business to operate; Shave ice has a low food cost and is easy to prepare, which keeps speed-of-service at optimum levels to keep up with high-traffic volumes; It will be easy to maintain and clean and shave ice is an ideal product for the health-conscious consumer.
Discuss the target market and why these customers will be targeted. One of the best known shave ice businesses is Sno Biz Shave Ice under the parent company of Crystal Fresh, Inc. Dealerships such as Sno Biz have demonstrated the success and feasibility of selling shave ice. The Sno Biz dealership has been in existence for the last 11 years with over 3,000 individual dealerships throughout the United States. Sno Biz syrups products are also sold in Wal Marts throughout the country. While no Sno Biz...