Segmentation, Communication, and Pricing Strategies

Part 1: Segmentation strategy

Segmentation Plan

The marketing idea of segmentation refers to classifying prospective customers or segments with similar demands and responses to marketing initiatives. Market segmentation enables organizations to target distinct categories of consumers who perceive the value of various products and services differently (Cortez et al., 2021).

According to the needs and preferences of Local Pulses’ customers, the following segmentation strategy can be considered:

• Location segmentation: This involves targeting clients depending on their geographical location, such as urban, rural, or regional areas. This strategy is based on the assumption that people living in the same location may have comparable demands. Customers in metropolitan regions, for example, may prefer the convenience of ready-to-eat plant-based goods such as hummus. However, rural people may prefer morning cereals that can be easily cooked at home.
• Demographic segmentation: Local Pulse can segment its consumers based on demographic data such as age, gender, income, occupation, and education (Gajanova et al., 2019). Younger customers, for example, maybe more interested in testing new plant-based goods, but elderly customers may be more interested in items with health benefits.
• Psychographic segmentation: This strategy attempts to categorize consumers based on their lifestyle, personality, attitudes, and interests; it is typically the most difficult market segmentation technique (Gajanova et al., 2019). It makes sense to target those familiar with your brand and have a neutral or positive view of it. For example, Local Pulse may target health-conscious customers interested in organic and natural products or vegetarians seeking high-protein plant-based cuisine. The psychographic grouping may be more difficult to achieve because these qualities are variable and objective data is not easily available (Ernst & Dolnicar, 2018). However, this technique may provide the best market segment outcomes because it separates individuals based on intrinsic motivators rather than external data points.
• Seasonal segmentation: Individuals buy different things at different stages of their lives and at times of the year. Local Pulse can also segment its customers based on the seasons, such as targeting customers with special deals on multipacks during the holiday season or releasing seasonal variants of breakfast cereals.

From the standpoint of the company’s desired benefits, the following segmentation plan considerations may be taken into account:

• Using demographic segmentation, Local Pulse can target a specific demographic group depending on its resources and capabilities. For instance, it can target millennials with a higher disposable income interested in health and fitness.
• Local Pulse can segment its clients depending on their technology usage, such as by targeting customers more inclined to purchase online or via mobile applications.
• Local Pulse can segment clients based on their preferred purchasing methods, targeting folks who favor subscription-based or bulk purchases.
• Local Pulse can segment clients according to their loyalty and potential risk. Targeting loyal consumers with unique offerings or at-risk clients with retention techniques are two examples.
• Local Pulse can segment clients based on their purchasing habits and preferences, such as targeting customers who commonly buy plant-based items or people looking for new plant-based food options.
• Local Pulse can segment customers based on their business characteristics, such as targeting corporate clients with a higher demand for healthier plant-based meal options.

After identifying the potential segments based on the above factors, Local Pulse needs to analyze each segment’s size, growth potential, profitability, and compatibility with the company’s goals and resources. Once a suitable market is identified, Local Pulse can develop targeted marketing strategies, such as product offerings, promotions, and pricing, to appeal to the chosen segment and achieve business objectives.

Segment Identification

The following strategies can be used to discover the segments that are most likely to generate the maximum profit for Local Pulse:

• Analysis of customer lifetime value: Local Pulse can estimate the overall profit each consumer is anticipated to generate for the company over their lifetime by examining their spending patterns and purchase frequency. According to Chernev (2018), this will aid in finding the most profitable segments that may be targeted to increase sales and revenue.
• Local Pulse might utilize market sizing to evaluate the size of their target market and possible demand for their locally generated produce. The organization can focus on the categories with the largest market size and highest revenue potential by identifying these segments and tailoring its marketing efforts accordingly.
• By evaluating the competition, local Pulse can assess whether market sectors need to be addressed or considered by competitors. These categories allow the business to gain market share and generate significant revenue.
• Consumer data such as demographics, activity, and purchasing trends can help Local Pulse find the most profitable areas for the company. The firm can optimize profitability by allocating resources to the segments with the highest margins or the most frequent purchases.
• Customer satisfaction and loyalty analysis: Local Pulse can discover the brand-loyal and repeat-business-generating segments by evaluating customer satisfaction and loyalty data. By repeat sales and recommendations, the corporation can create substantial profits from these areas.

Segments to Market the Product

Based on Local Pulse’s target market and product lines, the following segments might be recognized as the most profitable for marketing their products:

• Health-conscious individuals: Local Pulse’s primary target market is represented by this category. Those who emphasize their health and well-being will likely be interested in healthy and convenient pulse-based foods and beverages. Local Pulse can enter a market that appreciates healthy and sustainable food options by targeting this sector.
• Busy professionals: Another attractive sector for Local Pulse could be busy professionals who are often on the go and seeking quick and convenient dining options. Local Pulse, with its cereals, hummus, multipacks, and pulses product lines, may provide a variety of options that are both healthy and easy to prepare, making it an appealing option for them.
• Environmentally conscious consumers: Local Pulse’s emphasis on sustainability and eco-friendly items may also appeal to consumers that place a premium on environmental stewardship. Local Pulse can capitalize on the increased demand for eco-friendly products while separating itself from the competition by targeting this market group.
• Pulse-based foods and beverages are also a fantastic alternative for athletes and fitness enthusiasts because they are high in protein and other essential nutrients for physical performance and recuperation. By targeting this demographic, Local Pulse can access a market that values nutritious and healthy food options to promote active lifestyles.

Overall, Local Pulse Fast Food and Drinks will mostly target health-conscious individuals searching for convenient, healthy, and tasty meal options.

Part 2: Communication Strategy

Communication elements that could be included in the communication plan for Local Pulse are:

• Social media: Local Pulse can use social media sites like Facebook, TikTok, Twitter, and Instagram to efficiently and effectively reach its target audience. This platform enables the company to engage with customers, communicate with them, and promote its products through postings, comments, and direct messaging (Bob et al.,2020). The company can grow a committed social media following by providing value-added material, including dietary guidance, pulse-based recipes, and nutritional information. Social media additionally provides Local Pulse with the chance to benefit from user-generated content, engage customers through promotions and contests, and spread awareness of its sustainability initiatives—all of which are in keeping with the values of its target audience.
• Email marketing: Through targeted communications, promotions, and offers, email marketing helps Local Pulse to connect with current and new customers. Email marketing campaigns might be created to notify customers about seasonal discounts, new product introductions, loyalty programs, and the health advantages of meals based on pulses. By email marketing, a business may directly connect with its clients, target particular clientele groups, and monitor the campaign’s success using metrics like open rates, click-through rates, and conversion rates (Chernev, 2018).
• Public Relations: Through public relations (PR), Local Pulse has the chance to interact with key constituencies like the media, bloggers, influencers, and the customers at large. PR could be used to promote the company’s alliances, product innovation, and sustainability initiatives. The business might use PR to establish itself as a pioneer in its field by disseminating information on pulse-based nutrition, healthy living, and culinary trends. Local Pulse could sway public opinion through PR, garner favorable media attention, and establish brand trust.
• Influencer marketing is a marketing strategy that involves partnering with individuals with a large social media following to promote a company. Local Pulse can capitalize on their reach, credibility, and experience to advertise its products by working with health and wellness influencers or food bloggers. Influencer marketing might reach new audiences, build brand recognition, and position the organization as a trustworthy source of nutritious and sustainable meals.
• The abovementioned communication aspects were selected because they enable Local Pulse to effectively contact its target audience, convey its message, and attain its marketing objectives. These communication pieces could be used to build an integrated communication plan that ensures consistency and effectiveness in reaching the target audience.

Implementation strategy

Social Media: The company will create and maintain profiles on these platforms and regularly post content that resonates with its target audiences, such as recipes, health tips, and behind-the-scenes glimpses of the company’s operations. The company will also engage with its followers by responding to comments, questions, and feedback.

Implementation strategy:

• Identify which social media platforms your target audience is most active on.
• Develop a content calendar to ensure regular and consistent posting.
• Create visually appealing graphics, images, and videos to accompany posts.
• Respond to comments, questions, and feedback promptly and professionally.
• Monitor analytics and adjust content strategy based on performance.

Advertising: Local Pulse will use advertising to reach a big audience and raise brand awareness. Advertising will be created for online and offline channels, such as Google Ads, social media ads, and billboards. The advertising will target health-conscious individuals and promote the health, convenience, and sustainability benefits of the company’s pulse-based solutions.

Implementation strategy:

• Determine the most successful advertising channels for reaching your target demographic.
• Create ad creatives consistent with your company messaging and appealing to your target demographic.
• Choose your budget and bid strategy for each platform and ad kind.
• Keep an eye on performance and alter bidding and targeting methods as needed.

Public Relations: Local Pulse will use public relations to build relationships with media outlets and other stakeholders, such as influencers and bloggers. The company will issue press releases, pitch stories to journalists, and attend industry events to raise its profile and generate positive media coverage.

Implementation strategy:

• Develop a list of media outlets and influencers that align with your target audience and brand messaging.
• Craft compelling press releases and story pitches.
• Establish relationships with key journalists and bloggers by offering exclusives or expert insights.
• Attend industry events and network with industry professionals.
• Monitor media coverage and adjust PR strategies based on performance.

Content Marketing: Local Pulse may create a variety of content, including blog posts, videos, and email campaigns, to educate customers about the health, convenience, and sustainability benefits of the company’s pulse-based solutions, as well as to highlight the company’s commitment to creating high-quality, delectable foods.

Implementation strategy:

• Create a content calendar to ensure constant and frequent posting.
• Develop content consistent with your brand messaging and appeals to your target audience.
• Use SEO-recommended practices to boost search engine ranks.
• Create tailored email campaigns by segmenting email lists.
• Track performance and change your content strategy depending on engagement and conversion rates.

Overall, each communication aspect should be done cohesively, with consistent messaging and branding across all media. Local Pulse may achieve its marketing objectives by properly adopting these techniques, improving brand awareness, building a positive image, and forming a solid relationship with customers.

Integration and Budget Planning

To properly integrate the communication aspects, Local Pulse will need a detailed communication plan that specifies how each part will collaborate to achieve the marketing goals. The following are steps to combine the communication elements effectively:

• Create a specific communication strategy: Local Pulse must design a communication plan that specifies how each communication aspect will be executed, who will be responsible for each element, and the schedule for each piece. This plan should also include the allocated budget for each component.
• Ensuring uniformity of the message: Message consistency is essential to every communication strategy. Local Pulse must guarantee message consistency across all communication channels and resources to avoid confusing the intended audience or providing mixed messages.
• Budget allocation should consider each communication element’s potential efficacy and the resources at hand (Qu & Chen, 2021). For instance, a larger budget should be set aside for social media marketing if it has been demonstrated that it is more effective at reaching the target demographic.
• Merge the communication elements: The communication components should be combined to work best. For instance, content created for social media marketing may be repurposed for email campaigns, and the opposite is also true.
• Local Pulse should track each aspect’s progress to determine which are more effective at reaching the target audience and accomplishing marketing objectives. This information can then alter the communication strategy and budget allocation.

Regarding budget allocation, Local Pulse can allocate the budget among the communication pieces depending on their prospective efficacy and available resources. For instance, social media marketing, which has great potential for reaching the intended demographic, can be allotted a higher budget share (Pride & Ferrell, 2019). However, it is also vital to dedicate a portion of the budget to other communication elements, such as public relations and advertising, to ensure the message is transmitted over many channels and to a larger audience.

Overall, integrating the communication elements effectively and allocating the budget will help Local Pulse achieve its marketing objectives by effectively reaching the target audience, conveying its message consistently, and creating brand awareness and a positive image (Bob et al.,2020).

Part 3: Pricing Strategy

Local Pulse’s market is extremely competitive, with numerous established competitors in the plant-based food business. Sol cuisine, Impossible Foods, and Tofurky offer a variety of plant-based meat substitutes, while Amy’s Kitchen and Sweet Earth Foods provide plant-based frozen meals and snacks. However, Local Pulse’s concentration on natural and nutritious products and dedication to customer satisfaction gives them a competitive edge in this industry. Local Pulse emphasizes plant-based, natural, and nutrient-rich ingredients, unlike competitors using synthetic chemicals or preservatives. The company is committed to providing nutritious and high-quality food to its customers to attract health-conscious customers who want to eat more sustainably. Local Pulse may dominate plant-based food by targeting this specialized market.

New entrants into the plant-based food business pose a minor threat. While the business is expanding and may draw new entrants, entering the market needs significant investments in R&D, marketing, and distribution to establish a brand and reputation. Local Pulse’s well-established market position and reputation for using only natural and healthy ingredients can make it difficult for new entrants to acquire momentum. The bargaining power of suppliers is modest, as Local Pulse obtains its ingredients from several vendors, thereby reducing its reliance on any one supplier and limiting the suppliers’ negotiating leverage. This enables Local Pulse to maintain the quality of its products and minimize supply chain disruptions.

Customers have some bargaining power regarding price and quality because they have various plant-based food options to choose from. However, Local Pulse’s emphasis on using only natural and healthy ingredients and their commitment to customer satisfaction help to set them apart from their competitors and diminish the bargaining power of their customers. Local Pulse can position itself as a reliable and trustworthy industry supplier by developing strong relationships with its customers and business partners.

Overall, the rivalry among existing competitors in the plant-based food industry is moderate. However, Local Pulse’s emphasis on using only natural and healthy ingredients and their dedication to customer happiness distinguishes them from competitors and lessens the competition among current firms. The market for plant-based food products is growing, and Local Pulse’s competitive advantage positions them well for future growth and expansion.

Pricing Strategy

Pricing is crucial to Local Pulse’s marketing plan because it can easily impact the company’s sales and profitability. A well-executed pricing strategy can assist a business in attracting and retaining clients while optimizing earnings (Ferrell et al., 2021). The following are essential components of Local Pulse’s pricing strategy:

• Cost-plus pricing is the initial stage in creating a pricing plan and involves considering the product’s cost. Local Pulse will utilize a cost-plus pricing strategy, which entails evaluating the cost of each item’s production cost and adding a markup to establish its selling price (Ferrell et al., 2021). This strategy will ensure that Local Pulse can meet its expenses and generate a profit while maintaining competitive pricing.
• Market research: Local Pulse should perform market research to comprehend the pricing strategies of its competitors and the expectations of its target consumers. According to Nagle & Muller (2018), this research will assist the organization in determining a competitive price point that is enticing to customers and profitable to the company.
• Customer value: When selecting its price strategy, Local Pulse should also assess the value its products bring to customers. For instance, the company’s pulse-based goods are healthier and more environmentally friendly than traditional fast food, which may explain the higher pricing.
• Promotional pricing: Local Pulse may also implement promotional pricing strategies, such as discounts and limited-time deals, to increase sales and attract new consumers. According to Nagle & Muller (2018), these campaigns would be meticulously designed and performed to safeguard the company’s profitability.

The company’s pricing strategy will be adaptable, with rates willing to change based on market conditions, client demand, and other factors. Local Pulse’s pricing plan is intended to fulfill the company’s goals of attracting and retaining consumers while increasing profits (Nagle & Muller, 2018). The corporation can create a solid financial basis and fulfill its marketing objectives by efficiently executing this technique. As a result, a comprehensive segmentation, communication, and pricing strategy may assist local pulse fast food and drinks in reaching and servicing their target clientele, establishing their brand, and meeting their marketing objectives.

References

About Local Pulse. (2023). Local Pulse. https://localpulse.ca/

Bob, F., Jumadil, S., & Marlena, G. (2020). Communication strategy planning in influencing the intention to visit: An implication to marketing management. Polish Journal of Management Studies, 22(1), 117-133. http://repository.unibi.ac.id/247/

Chernev, A. (2018). Strategic marketing management. Cerebellum Press. https://books.google.co.ke/books?hl=en&lr=&id=CUlNDwAAQBAJ&oi=fnd&pg=PT11&dq=Brand,+Product,+And+Channel+Strategies+in+Marketing+&ots=JJleNxSJlJ&sig=52CmkUu11GwlxCwVGUjrEh4L2pE&redir_esc=y#v=onepage&q=Brand%2C%20Product%2C%20And%20Channel%20Strategies%20in%20Marketing&f=false

Cortez, R. M., Clarke, A. H., & Freytag, P. V. (2021). B2B market segmentation: A systematic review and research agenda. Journal of Business Research, 126, 415-428.https://www.sciencedirect.com/science/article/abs/pii/S0148296320309073

Ernst, D., & Dolnicar, S. (2018). How to avoid random market segmentation solutions. Journal of Travel Research, 57(1), 69-82. https://journals.sagepub.com/doi/pdf/10.1177/0047287516684978

Ferrell, O. C., Hartline, M., & Hochstein, B. W. (2021). Marketing strategy. Cengage Learning. https://books.google.co.ke/books?hl=en&lr=&id=SewfEAAAQBAJ&oi=fnd&pg=PP1&dq=Price+Strategy+in+marketing&ots=PgVyCwJk45&sig=0MukzWaXhhu1ySbqO02p7f1PoOA&redir_esc=y#v=onepage&q=Price%20Strategy%20in%20marketing&f=false

Gajanova, L., Nadanyiova, M., & Moravcikova, D. (2019). The use of demographic and psychographic segmentation to creating a marketing strategy of brand loyalty. Scientific annals of economics and business, 66(1), 65-84. https://www.ceeol.com/search/article-detail?id=874471

Nagle, T. T., & Muller, G. (2018). The strategy and tactics of pricing. Routledge. http://www.pmm.edu.my/zxc/2022/lib/ebok/The%20Strategy%20And%20Tactics%20Of%20Pricing%20A%20Guide%20To%20Growing%20More%20Profitably%20By%20M%FCller,%20Georg%20Nagle,%20Thomas%20T.pdf

Pride, W. M., & Ferrell, O. C. (2019). Marketing. Cengage Learning. https://books.google.co.ke/books?hl=en&lr=&id=AaCgEAAAQBAJ&oi=fnd&pg=PP1&dq=Brand,+Product,+And+Channel+Strategies+in+Marketing+&ots=HJ2viEXhGU&sig=8sEtIUWvd2v-DByf3P0szFlmTQc&redir_esc=y#v=onepage&q=Brand%2C%20Product%2C%20And%20Channel%20Strategies%20in%20Marketing&f=false

Qu, C., & Chen, L. (2021). Integrated Marketing Communications Strategy Based on Data Analysis for Stella McCartney. In Big Data Analytics for Cyber-Physical System in Smart City: BDCPS 2020, 28-29 December 2020, Shanghai, China (pp. 1120-1126). Springer Singapore. https://link.springer.com/chapter/10.1007/978-981-33-4572-0_160