As a fine chef Andrew Smith believes there is a market for the highest quality organic cheese. He believes that discriminating home cooks as well as chefs in fine restaurants would be willing and able to pay a premium price for such a product. He also believes that the marketplace would attach significant value to such a product based upon its origin in Pennsylvania. Tim has assembled information from the Internet about several companies that produce and sell organic cheese. He has found that some producers have taken a high volume approach and distribute their products through a national distribution network at only a slight premium in price over traditional cheese products. These cheese producers stress the organic nature of their cheese to differentiate their product. Others appear to have positioned themselves as sources of a particularly high quality product that also happens to be organic, and have priced their cheese at a significant premium. Pease answer the questions above in detailed Of the various segmentation bases discussed in the case, which seem to be the most appropriate for Andrew cheese? How might Andrew address the problem of differentiating and positioning his cheese product?
As a fine chef Andrew Smith believes there is a market for the highest quality organic cheese. He believes that discriminating home cooks as well as chefs in fine restaurants would be willing and able to pay a premium price for such a product. He also believes that the marketplace would attach significant value to such a product based upon its origin in Pennsylvania. Tim has assembled information from the Internet about several companies that produce and sell organic cheese. He has found that some producers have taken a high volume approach and distribute their products through a national distribution network at only a slight premium in price over traditional cheese products. These cheese producers stress the organic nature of their cheese to differentiate their product. Others appear to have positioned themselves as sources of a particularly high quality product that also happens to be organic, and have priced their cheese at a significant premium.
Pease answer the questions above in detailed
- Of the various segmentation bases discussed in the case, which seem to be the most appropriate for Andrew cheese?
- How might Andrew address the problem of differentiating and positioning his cheese product?
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