In the present research study Cheesely is a new product launched by Oatly in the market. In respect to the mentioned product segmentation targeting and positioning is done. Out of all available market segmentation approaches geographic and psychographic segmentation approaches are selected. It is usually seen that in terms of taste people have different value system. Considering this fact psychographic segmentation approach is selected. Moreover, product is easy to prepare and those who have few hours to cook food due to job or any other reason will consume this product on large scale. Hence, geographic segmentation approach is selected for the product as in urban area product will be in more demand then rural area. Youngsters that are in age group of 16 to 35 are selected because they are health conscious in nature and prefer to consume products that are environment friendly. Also youngsters have less time to cook food. Both these characteristics are seen in our product and due to this reason youngsters are selected as target customers. USP of the product are environment friendly and good for health and on basis of this USP unique position of the product will be done in the market. Product will be advertised through multiple approaches like sales promotion, digital media and personnel selling. Initially product will be sold at high price as no alternative is present in the market. Product will be distributed through canteens, ASDA stores and other locations where oat related product is heavily consumed.
Cheesely is a new product launched by Oatly in the market. In this regard, STP is done in the research report. Based on the market segmentation, target segment is identified and supported by facts. Finally, marketing mix is analyzed along with ethical issues.
Market segmentation is the primary step that plays a very crucial role in making marketing of any product very effective. There are a number of approaches of doing market segmentation like demographic, geographic and psychographic etc. For Cheesely new product launched by Oatly Geographic and psychographic segmentation seems more appropriate. This is because relative to the rural area relevant product will have very high demand in the urban areas. This is because Cheesely can be prepared in a short time period and those who have morning rush hours are expected to consume this product more (Chen and Wei, 2017). Rural people do not have such kind of lifestyle and due to this reason product is expected to remain in demand only in urban areas. This is the reason due to which product will be sold only in Urban areas and geographic segmentation approach was selected for market segmentation.
In Urban areas product will be sold through office canteens and other places where Oatly milk products may be used or consumed. Packed item will be available on ASDA stores because it has presence in urban areas at large scale.
An other segmentation approach that is selected is psychographic segmentation. This is because it is the approach where market segmentation is done on the basis of personality traits, values, attitudes, interests, and lifestyle of individuals. In terms of food items value system of people is diverse and due to this reason any edible item is acceptable to someone and not to someone (Palmieri and Forleo, 2020). Hence, this is the reason due to which psychographic segmentation approach is selected so as to identify the best targeting group. Our product will suit to the requirements of the people who are vegan, environmentally friendly by nature and also are health conscious. Thus, it can be said that both these markets segmentation approaches best suit to our product.
On the basis of the above discussion, it is concluded that geographic and psychographic segmentation is the appropriate method to market segmentation. The value system of people is different from each other and due to this reason psychographic segmentation approach is selected. Youngsters are targeted especially those who remain in urban area as they have less time to cook food. Based on USP product positioning will be done, which will give a product competitive advantage over rivals. Promotion will be done in multiple ways so that brand awareness can be done at a rapid pace. Initially, product will be offered at high prices as currently there is no alternative in the market. It can be said that the marketing mix is prepared in appropriate manner.
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