MarketSegmentation

Cold Pressed BluePrint Juice: Post Hoc Market Segmentation

  Launched in 2007, BluePrint®, a brand of The Hain Celestial Group, Inc. (NASDAQ: HAIN), is the pioneering line of raw fruit and vegetable juice and juice beverages.

  The brand includes BluePrintCleanse®, the line of juice and juice beverage cleanses designed to detoxify and purify the body, and BluePrintJuice®, the line of juice and juice beverages sold in individual bottles and available in select retail outlets and online.

  BluePrintCleanse® brand was created to offer different cleanse levels customized to one’s dietary habits and history.

  BluePrint® juice, juice beverages, non-dairy beverages are delivered to homes and offices in the U.S. and Canada, and are also available at select retail outlets.

Company Overview

What is Cold Pressed Juice?

Cold Pressed Juice Advantages

Problem Statement

How to increase company revenue? Company growth strategy is market development by increasing sales to new types of customers (segments). Our goal is to discover new market segments.

Success criteria:

  Segment the market   Provide actionable insights for market targeting   Provide actionable insights 4Ps tactics (product, price, promotion, place)   Increase brand awareness by 30% and revenue by 15%

Model Selection

Rationale   Cold pressed juice market is relatively new   BluePrint has little knowledge about segments in cold

press juice market   BluePrint has a new approach to sell juice and the

company wants to implement this approach to the new market segments

Model Ward’s descriptive Post Hoc segmentation method: Ward’s agglomerative hierarchical clustering with Dendrograms allows to identify the number of clusters (segments) in the dataset

Solution Process

PRODUCT

Solution Process

Define Problem Select Model Conduct survey

Collect and Analyze Data

Execute Ward’s Method(R)

Analyze and Interpret Results

(excel)

Research Methods

IBISWorld foodbabe.com

Pinterest Google Trend

huffingtonpost.com Forbes.com

Secondary Research Primary Research

1.  Created survey seeking to identify groups among people who drink cold pressed juice:   One qualification question   Four identifier questions   Ten statements to rank   10 points Likert scale from 1

(strongly disagree) to 10 (strongly agree)

2. Conducted survey:   Online   Sample size:60   Gender: 32 Females, 16 Males   Age: 25-67

Primary Research Method Survey

We wanted to get responses only from people who are familiar with cold pressed juice Mainly focused on demographic

classification questions because we surveyed only California residents. Psychographic questions are covered in the body section.

Primary Research Method Survey

Primary Research Method Survey data organized and saved as csv. file for R

Primary Research Method Ward’s method execution (R)

Data input: csv. file

Ward’s method execution commands

Data output: command to plot dendrogram

Primary Research Method Ward’s method execution (R)

Primary Research Method Cut through Dendrogram and declared 3 clusters

1 2 3

Primary Research Method In each group calculated the mean for each variable, S, (Excel)

Output

Input

Primary Research Method Coded gender, income, relationship status responses (Excel)

Input

Output

Primary Research Method Calculated mean (average) for age, gender, income,

relationship status (Excel)

Output

Input

Research Analysis Summarized the means for each group, highlighted largest values for each

statement, S, and demographic question (Excel)

For Excel, please click

below

Model Results

Segment 1 ”Healthy Eaters”: replace food with juice rather than binge on junk/processed food, have highest income level and oldest group

Segment 2 "Real Juicers" : Like juice for what it is: nutritious food and thirst quencher

Segment 3 “Taste Lovers” : drink juice for the taste

Market Trend Over Time

Market Trend By Region

Market Comparison

Source: www.butterflydiary.com www.pinterest.com

Market Comparison

Competitive Analysis

Launched Revenue in 2014 Cer9fied Product Purpose Retailers

Suja 2012 $45m USDA Organic, Non-‐GMO & Cold-‐Pressured.

Supplement PHARMACA SAFEWAY WHOLE FOODS MARKET

Blue Print 2007 $100m

USDA Organic, Non GMO Project Verified, Vegan, Raw, Gluten Free and Kosher.

Cleanse

SAFEWAY WHOLE FOODS MARKET Bristol Farms Market Online (US delivery)

Organic Avenue 2000 $35b USDA Organic, Cold-‐Pressured.

Cleanse 8 Own stores in NY

Juice Press 2012 Organic, No hpp, Cold-‐Pressured

Cleanse/Supplement 21+ Own stores in NY, Online (US delivery)

Liquiteria 1996 USDA Organic, Non-‐GMO & Cold-‐Pressured.

Cleanse Own retailer stores in NY, online

Juice Genera9on 1999 Cold-‐Pressured Cleanse 12 Own stores in NY, Online

Market Comparison

Company $ per Bottle

Brick & Mortar

Online

Organic Avenue

$9.00 Yes Yes

Suja $8.99 No Yes

Blue Print $9.99 No Yes

Liquiteria $8.75 Yes No

Juice Generation

$9.95 Yes Yes

Juice Press $10.99 Yes Yes

28%

28%

28%

1% 14%

1%

Suja Blue Print

Organic Avenue Juice Press

Liquiteria Juice Generation

Source: Wall Street Journal, Beverages Industry Magazine

Scenarios

  Spring   Summer   Fall

 Winter

Result Interpretation

Segment1 ”Healthy Eaters”: replace food with juice rather than binge on junk/

processed food, have highest income level and oldest group


Segment 2 "Real Juicers" : Like juice for what it is: nutritious food and thirst

quencher

Trend toward healthy ea.ng, consuming more natural, organic products

Ac.ve lifestyles becoming increasingly popular in the US

http://www.nielsen.com/us/en/insights/news/2010/global-trends-in-healthy-eating.html

http://blog.euromonitor.com/2014/01/the-top-10-global-consumer-trends-for-2014.html

https://www.twst.com/news/648-apparel-footwear-retailers-benefit-from-active-lifestyle-tre


Segment 3 “Taste Lovers” : drink juice for the taste

http://www.euromonitor.com/fruit-vegetable-juice

http://qz.com/176096/how-america-fell-out-of-love-with-orange-juice/

Brand Awareness

Offline Media Online Display

Advertising Out of home advertising

In store Advertising

PR, trade shows, Industry specific

events others

Segment 1 (27%)

Campaign on Radio, TV,

Food network, cooking shows

Advertise in health/fitness and healthy cooking websites

such as skillet.com

Advertise on public displays in gyms,

hospitals, restaurants

Door to door pamphlets,

coupons

Giving Special offers, discounts,

Generating awareness

Run a word of mouth

Segment 2 (46%)

Campaign on Radio, TV,

Food network, cooking shows, Workout shows

Advertise in health/fitness websites like

such as menshealth.com,

bodybuilding.com, etc., Facebook ads

Advertise on public displays in gyms,

restaurants, out door sports venues

Coupons and partnering with gyms (nutrition

drinks and exercise + package)

Giving Special offers, discounts,

Generating awareness

Run a word of mouth, viral campaign, Facebook contests

Segment 3 (27%) NA Facebook ads

Mall, food courts, Movie theaters, Entertainment

Free samples Free samples in

events

Viral campaign, Facebook contests

Conclusion

Three segments have distinct characteristics and can be targeted

First segment has financial and growth potential

Second segment has good potential, alignment, and marketability

Third segment is less marketable (only interested in taste of juice)

One More Thing… BluePrint has an App for it

THANK YOU

MARKETING ANALYTICS 2 Stephan Sorger, Spring 2015

Ella, Natalia, Neeharika, Marina, Ali

MarketSegmentation

Documents

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