Kraft Foods plans to introduce its DiGiorno flatbed pizza by offering to host Tweetups for influential users of Twitter (see Part 1 of this blog). In Part 1 of this blog, we described three major types of customer segmentation by need: Physical, Emotional and Intellectual. We also described patterns that companies use to innovate products to meet those needs including: providing information, reducing resources the customer requires for the use of the product and improving the experience the customer has with the product.
In this Part 2 of the blog, we will illustrate the segments of customer needs and the product innovations that Kraft has used with this DiGiorno introduction.
Here are some segments of customer needs that Kraft is addressing with its innovations. Each of the indented concepts is a further refinement of the concept above it:
A. Segments with Intellectual needs
-----1. Knowledge of company and company's product
----------a. Segment with limited or no familiarity with the product
---------------1) Segment using a similar product
B. Segments with Emotional needs
-----1. Segment with needs for status in the community
----------a. Segment with needs for affiliation
---------------1) With a group on the cutting edge
The company addresses these segments with the following patterns of product innovation. Each of the indented concepts is a further refinement of the concept above it:
A. Provide information to the segment
-----1. Attract attention of customers to brand
----------a. Use non-traditional advertising in space available to many people
---------------1) Use an on-line event to provide sampling opportunity
B. Provide a good experience for the initial customer:
-----1. Associate the product with an image to increase customer pleasure in using the product
----------a. Suggest personal characteristics of the user of the product
---------------1) Suggest that users of the product are trend leaders
C. Provide good experience for follower customers
-----1. Increase the customer’s sense of security with the product
----------a. Assure customer that the product tastes good
---------------1) Obtain third party endorsements of the product
To gain a greater insight into the many patterns of segmentation and product innovation, please see www.strategystreet.com/improve/segments and www.strategystreet/com/improve/productsandservices. There you will find over 400 concepts of segmentation of customers by need and nearly 600 concepts of product innovation initiatives. We support these concepts with over 4500 examples. These concepts and examples are brainstorming thought-starters to help you meet the challenge of innovation in your own marketplace.
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