In marketing, give an example of a company that offers more than one product and how they segment them to different markets.
In marketing, market segmentation is the practice of differentiating different groups in the market from one another. Different groups of people want different kinds of products. Different groups of people respond differently to various kinds of advertisements and promotions. Therefore, firms can often benefit from segmenting their market and selling different products to different segments of that market. An example of this is the Campbell Soup company. This firm markets different products to different regions of the US, to different countries, and to different demographic groups within countries.
For example, Campbell’s found out through market research that Americans in the East want milder nacho cheese sauce while those in the West and Southwest want more spice. Therefore, they created different recipes for the different regions so that each region would get the flavor they prefer. Looking at international segmentation, Campbell’s created a soup that is not packaged in cans, but rather in cartons, for the French market. Their research showed that French consumers preferred this kind of packaging so Campbell’s segmented changed their packaging based on market segmentation. Finally, the firm has differentiated its products to appeal to different demographic market segments within the United States. In an attempt to appeal to younger consumers, Campbell’s created a line of more gourmet soups (flavors include Golden Lentil with Madras Curry and Creamy Red Pepper with Smoked Gouda) that are packaged in containers that can be directly microwaved. These packages have pictures of young people on them, a tactic which is also meant to appeal to a more youthful demographic.
In all of these ways and more, Campbell Soup is an example of a company that offers more than one product and segments those products to different market segments.