Strategic targeting for business and technology firms

PIC’S PEANUT BUTTER
Australia

Pic’s Peanut Butter
 Pic’s peanut butter is one of
the most trusted peanut
butter brands in Australia.
 Pic’s peanut butter was
founded by Pic Picot.
 He took his business from
home garage to the
international market.

Competition faced by pic’s
Pic’s peanut butter belongs to food retail
industry. Therefore it becomes obvious to face
competition.
There are various other organizations which
provides similar products to the consumers
produced by Pic’s(Hara, et al., Hawaii).

Pic’s faces competition from the following
firms:-
• Scoop wholefood natural peanut butter
• Ambrosia
• Mayver’s dark roast peanut butter and
• Ridiculously delicious peanut butter
In order to stand out the competition
company has recently opened its largest
production site which will help in meeting
consumer demands (Cardinali, 2014).

Environment conditions of Pic’s
The Pic’s peanut butter belongs to retail
industry where exists competitive
environment (Reeves & Deimler, 2012).
Every new business organization posses a
threat over the revenue generated by the
Pic’s.

The company performs in a challenging environment
where drastic changes can be observed like-
 Change in taste and preferences
 Failure of strategic policies of company formulized to
deal with competitors
Consequences of competitive environment
 Enhance the quality of product
 Increase in the quantity of product
 Diminishing prices
 Fluctuations in the revenue

Demand for Pic’s peanut butter
The demand for Pic’s peanut butter has
increased extensively in last few years.
Reasons behind increase in demand are-
 Nutritious product
 Good for health of children
 Good for adults and old age people
 Brand loyalty and increasing popularity in
market(Vinson & Cai, 2012)

Steps taken by company to
meet the demand-
 Built a new factory
 Name- Saxton Rd factory
 Size of factory is twice as big
of a normal factory
 Doubled the production
 Pic’s also allow externals to
visit the factory(Stuff, 2018)

STP of Pic's
STP stands for segmentation, targeting and
positioning model.
The model of Segmentation, targeting and
positioning helps the firms in-
 Dealing effectively in the market conditions
 To achieve its set targets (Weinstein, 2013).

Segmentation- Defines segment of market who will prefer the
product on grounds demographic and geographic factors.
 For example- Children
Targeting- It defines which section of economy, which group
of sex, gender, age or religion will prefer product.
 For example- It can be consumed irrespective of gender,
religion, sex and age.
 The product is affordable for every economic section of
society(Weinstein, 2013).

Positioning- It refers to the process of
understanding the needs of consumer and
explaining him why respective product is than
any other product existing in market.
 For example- Pic’s peanut butter falls in the
category of most preferred butter in Australia.
 It is liked by all age groups
 Good for health
 Leaves no side effects(Weinstein, 2013)

References
• Cardinali, M. a. B. S., 2014. Interformat competition in the grocery retailing. Journal of Retailing and
Consumer Services, 21(4), pp. 438-448.
• Reeves, M. & Deimler, M., 2012. Adaptability: The new competitive advantage.. Own the Future: 50
Ways to Win from the Boston Consulting Group, pp. 19-26.
• Hara, A. H., Aoki, K. L., Cabral, S. K. & Niino-DuPonte, R., Hawaii. Attractiveness of gel, granular,
paste, and solid formulations of ant bait insecticides to the little fire ant, Wasmannia auropunctata.
46 ed. 2014: Hawaiian Entomological Society.
• Vinson, J. A. & Cai, Y., 2012. Nuts, especially walnuts, have both antioxidant quantity and efficacy
and exhibit significant potential health benefits.. Food & function, 3(2), pp. 134-140.
• Stuff, 2018. Peanut butter empire spreading out to take on world. [Online]
Available at: https://www.stuff.co.nz/business/104904803/start-spreading-the-news-pics-new-
factory-will-soon-be-the-toast-of-the-town
[Accessed 25 August 2019].
• Weinstein, A., 2013. Handbook of market segmentation: Strategic targeting for business and
technology firms. . In: Market Segmentatiion. London: Routledge, p. 260.