Discovering Marketing

This document discusses the target market and product strategy for a new product line in the field of marketing. It also includes references for further reading.

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DISCOVERING MARKETING
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5/12/2019

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Contents
Target market...................................................................................................................................2
Product strategy...............................................................................................................................3
References........................................................................................................................................6

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Target market
Target market is to be identified specifically as the basis for the decision regarding the strategy to
be formulated, as it largely depended on the demographic and behavioral factors of the target
customers or segments for whom the products and their strategies are to be formulated. The
target market for hunter foods new product line that is healthy spreads would be segmented into
the following basis
1. Geographical
Geographical segmentation is the segmenting customer on the basis of the geographical
area that is the location, where the company is going to target. In the case of healthy
spreads by Hunter Foods Company would be Australia. The company has been targeting
various nations, but the launch for this product line is to target the Australian population.
2. Demographics
Demographics segmentation includes the basic customer preferences for instance:
 Age – The age group that will be targeted for healthy spreads would be all the
ages, as the company would be providing variety in the product line to suit the
taste of all age groups.
 Income – The income group targeted for health spreads would be middle income
to upper middle-income group as it is the everyday spreads and eatables that a
middle-income group can also effort.
3. Psychographic segmentation
Psychographic segmentation would include the basic personality traits of an individual,
for instance:
 Personality character – The personality traits that would be targeted for healthy
spreads include breakfast habit. The people having healthy breakfast and health
conscious habits would be targeted.
 Lifestyle – This would include the major interest of the customer which healthy
spreads will target the Gym going customers or health conscious customers with
their peanut butter and coconut spread.
4. Behavioral segmentation

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Behavioral segmentation would include differentiating the target market on the basis of
behaviors
 Occasion – The healthy spreads will target the customers based on their use that
will be every day. Occasion is relevant bases for the targeting, as this will affect
all other marketing strategies of the company like prices, which must be kept on
average, as the company will target the everyday use.
 User status – This will represent the current stage of users, which will be targeted
that is if the target would be a non-user segment, potential user, or first time user.
The Company will target the first time users, potential users, and the regular user.
 Usage rate – It would be the customer rate of using the product offered that is
heavy, medium or light. The Company will be targeting the heavy users for the
spreads as it is everyday purpose spreads to be taken by the customer every day
(Goffin 2017).
Product strategy
Considering the marketing strategies to market a new product line of hunter foods that is the
healthy spreads product range, key decisions aspect is product strategy. The product strategy for
hunter foods would be developed using Ansoff’s product matrix.

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Figure 1: (Source: (Aksoy 2018)
From the above matrix, it can be said that there are four alternative strategies regarding the
product decision that the company can follow based on two major criterions that is market to be
targeted and the products and service by the company. Four alternative strategies would be as
follows:
1. Market development – As per this first matrix, the two bases are targeting a new market
by the company while using current or already existing product and services. This
strategy is appropriate when an existing company is willing to expand its business
geographically that is targeting another nation with the same products.
2. Diversification – Diversification strategy is the one where the market and the products
offered both are new. This would be a suitable strategy to target a new market with their
localized product range. This would include product innovation and also product
variation while expanding the business into a new geographical location that is in another
country.
3. Product development – This product strategy is appropriate in the case of the company
who is willing to offer a new range of products and services in the existing market. This

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would include new product development and a complete new range of products by the
company and offer in the market, which is already being targeted, and exit.
4. Market penetration – Last grid consists of a market penetration strategy that would be
targeting the existing market with existing products. This would majorly an appropriate
strategy when the company is willing to increase the sales of the company to that is done
through various promotional tools (Kaynak 2018).
Considering the hunter foods, the product strategy among the four is the product
development strategy. The reason being the company has already targeted the Australian
snacks and food market. However, the company is willing to launch a new and innovative
product range that is healthy spreads. Among these strategies, the company major
considering is product quality that is , the company will be offering the best quality services
with the unique selling proposition of healthy product ingredients and ecofriendly packaging.
Product innovation would be another strategy by the company this would include flavors by
the company. The variety would be large by the company like almond butter, peanut butter,
coconut spread, avocado spread, chocolate spared to target young age group.
Eco friendly packaging would also include innovative ideas. For instance, the company
would attempt to avoid the use of plastic. In the case of some products the plastic boxes were
needed, the company initiated the recycling plastic campaign.
Moreover, product innovation includes a variety with the low salt product, no preservative
added, and no artificial flavors are appropriate to target health conscious customer segment
(Tukker and Charter 2017).

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References
Aksoy, S. "Applying Ansoff’S Growth Strategy Matrix To Innovation Classification."
International Journal of Innovation Management, 2018: 1850039.
Goffin, K. "Sustainability and new product development. ." In Cranfield on Corporate
Sustainability, 2017: 105-118.
Kaynak, H. "The role of human resource-related quality management practices in new product
development: A dynamic capability perspective." International Journal of Operations &
Production Management 38, no. 1 (2018): 43.
Tukker, A, and M Charter. System innovation for sustainability 1: Perspectives on radical
changes to sustainable consumption and production. London: Routledge, 2017.