POP SHOPPE MARKETING STRATEGY

POP SHOPPE MARKETING STRATEGY

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Pop Shoppe Marketing Strategy

Executive Summary

Pop Shoppe closed shop in early 1980 due to difficulties compounded by competition from grocery stores and traditional soda brands. Shoppe’s knowledge of the Canadian market alone could not offer the much-needed shield against cutthroat invasion of its foreign and traditional market share. Two decades of inaction for Pop Shoppe represent a number of options for the revival of the brand, which excited many soft drink consumers such as Alger. In view of the immediate reorganization needed to make inroads into the changed soft drinks market, Brian Alger needs to focus on a number of specific marketing strategies. Top of the marketing strategy must include segmentation, as enumerated in this report. This report highlights the target market, justification and quantification needed to support the desired market rebirth for Pop Shoppe.     

1. Target Segment

In evaluating the target segment, Alger will require information on the evaluation of outcomes attained by various segments. Based on the company’s old portfolio, the non-functional beverage component consisting of a refreshment range of products. In view of the immediate desirable outcome, Pop Shoppe must consider leveraging on the precious market experience to make a mark in the changed market. Out of the several outcomes attained by segmentation, perhaps the most stabilizing outcomes to formulate a successful revival will include capturing the old market’s attention. Having had a relatively impressive brand presence in Canadian, Pop Shoppe must leverage on its customer loyalty to capture the market by a surprise. To this end, the most important market segment must depend on the lost ground of customers’ familiarity with the brand. 

The target segment for the projected comeback will involve a number of segmentation considerations as discussed below.

2. Justification of Chosen Segment

In line with the appropriate rebirth, Pop Shoppe will find it more stable to rely on its strengths as learnt from the previous operations on the same market. Towards this end, reviving its old strengths represented by an impressive customer loyalty will enable the company to penetrate the market and reclaim lost ground. As an illustration, participating in the market segmentation where competitors easily make gains over its traditional market exposes Pop Shoppe to disadvantages[1]. For instance, the sporting community remembering the Canadian icons used to endorse its products in the 1970s can reinvent the needed customer loyalty.

By targeting loyal customers, Pop Shoppe will facilitate a strong foundation from which it will launch segment diversification. In light of the need to sustain a stable loyal customer base, changing product development practices must be realigned with the traditional touch of strong Canadian roots. The choice of this segment will aid in the expansion of the segment base from one generation to the next through the family philosophy of consumption that is popular in the food industry[2]. Diversification of the segment concept into packaging options for glass, can and plastic containers. Based on the various segmentation bases applied, as explained below, various packaging materials, quantities, flavors and branding will be streamlined to fit the composite bases targeted. Quantification of the segment size and dollar value makes up the Appendix section, with assumption thereon explained.      

3. Segmentation Bases

A combined segmentation strategy will facilitate a complete comeback after two decades of absence in the market. Using customer loyalty for one generation implies that a composite segmentation strategy will capture various marketing outcomes. The target segment will include largely of a consumer population alive in the 1970s when the company’s brand was a household name. Demographic segmentation will include other desirable targets such as age preferences, to assist in the formulation of a strong revival among the older consumers.  Based on the composition of the Canadian and American populations likely to have a connection with the company’s brand name, relying on this segmentation strategy must form over a half of revival focus. Packaging matters to consider in this segmentation aspect will exploit income categories of the target populations.

Geographical segmentation will consider the Canadian market to support initial rebirth efforts before considering overseas markets. Quantification of the opportunity in the global soft drinks market will facilitate translation of the geographical segment into returns. In this regard, emerging markets will certainly prove as most fertile grounds for establishment of Pop Shoppe operations as opposed to complex markets in the developed economies.

Assumptions

1. The initial market will be targeting Canada
2. The initial rebirth will target a limited number of popular products earlier contained in the company’s portfolio
3. The largest population targeted will include people alive in the 1970s and their families
4. A combination of segmentation bases will enable capturing customer loyalty, Canadian pride and family market
5. The threat of competition from other large companies will not affect tracing the niche market of a proud Canadian origin that can be passed on to later generations
6. Population percentages in Canada translate into active market fractions in size
7. Population segment born in the 1970s and early 1980s (30 years and above) will facilitate market expansion through family line product permeation

Packaging and promotional strategies will inform on product mix strategy based on age, family, income and flavor preferences using technology[3]

4. Appendices

Appendix 1: Segment Size

1. Canadian population born before 1980 translates into about 70 per cent of the total population according to estimates on the CIA World Fact Book (2013)[4].

·         70% of 34.6 million= 24.22 million

2. The family concept when employed in marketing strategies will facilitate increment of the market size including the younger generations

·         Family concept will translate to remainder of the population as potential market

3. Revival of the larger American market will facilitate targeting the creation of a market surpassing Canada

·         Overseas market will facilitate creation of a market of about similar Canadian population size

Appendix 2: Segment Dollar Value

Dollar value of Canada’s soft drinks market in 2012 amounted to about $8.5 billion supported by the entire market (Marketline, 2013)[5].

·         70% of the target segment translates to a market value at about $6 billion in Canada alone

·         Regaining Pop Shoppe closed market share in America (about $127 billion by 2015) will add to higher revenues than in Canada alone (Reportlinker, 2013)[6]

·         Imports of soft drinks from foreign markets amounted to about $248 million in 2010 (Agriculture and Agri-Food Canada, 2013)[7]

·         Using technology will enhance improve market value of the brand (Chesbrough , 2006)[8]

Summary

Pop Shoppe Marketing Strategy
1. Target Segment	Old loyal customers
2. Segment Justification	1. Older generation will revive loyalty 2. Extention though family market 3. Enable young segments 4. Regional markets will expand market share
3. Segmentation Bases	Mixed base-income, age, geographical)

Bibliography

Harvard Business School Press. Strategy: Create And Implement The Best Strategy For Your Business. Watertown, MA: Harvard Business Press, 2005.

Kunz, Ben. “How Apple Plays the Pricing Game.” Last Updated  Sept. 6, 2010. www.msnbc.msn.com/id/38980367/ns/business-us_business/t/how-apple-plays-pricing-game/

CIA. “The World Fact Book: Canada.” Central Intelligence Agency, 2013. https://www.cia.gov/library/publications/the-world-factbook/geos/ca.html.

MarketLine. “Soft drinks in Canada.” Market Research. 2013. http://www.marketresearch.com/MarketLine-v3883/Soft-Drinks-Canada-7824051/.

Reportlinker. “Global soft drink industry.” Reportlinker.com. 2013. http://www.reportlinker.com/ci02018/Soft-Drink.html.

AAFC. “The Canadian Soft Drink Industry.” Agriculture and Agri-Food Canada. Last Updated  July 5, 2013. http://www.agr.gc.ca/eng/industry-markets-and-trade/statistics-and-market-information/by-product-sector/processed-food-and-beverages/the-canadian-soft-drink-industry/?id=1172167862291.

Chesbrough, Wiliam. Open Innovation: The New Imperative for Creating and Profiting from Technology. Boston, MA: Harvard Business School Publishing, 2006.

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[1] Harvard Business School Press, Strategy: Create And Implement The Best Strategy For Your Business. (Watertown, MA: Harvard Business Press, 2005), 87.

[2] Ibid, 114.

[3] Ben, Kunz, “How Apple Plays the Pricing Game,” last updated 6 September 2010, www.msnbc.msn.com/id/38980367/ns/business-us_business/t/how-apple-plays-pricing-game/.

[4] CIA, “The World Fact Book: Canada,” Central Intelligence Agency, 2013, https://www.cia.gov/library/publications/the-world-factbook/geos/ca.html.

[5] MarketLine, “Soft drinks in Canada.” Market Research, 2013, http://www.marketresearch.com/MarketLine-v3883/Soft-Drinks-Canada-7824051/.

[6] Reportlinker, “Global soft drink industry,”  Report Linker, 2013, http://www.reportlinker.com/ci02018/Soft-Drink.html.

[7] AAFC, “The Canadian Soft Drink Industry,” Agriculture and Agri-Food Canada, Last Updated  5^th July 2013, http://www.agr.gc.ca/eng/industry-markets-and-trade/statistics-and-market-information/by-product-sector/processed-food-and-beverages/the-canadian-soft-drink-industry/?id=1172167862291.

[8] Wiliam Chesbrough, Open Innovation: The New Imperative for Creating and Profiting from Technology, (Boston, MA: Harvard Business School Publishing, 2006), 123.