Numi Organic Tea Video

NUMI ORGANIC TEA VIDEO

1.  In the first part of the video, Jen Mullin, the Vice President of Marketing for Numi Organic Tea, clearly describes their typical customer. Using the information on segmentation you learned from reading Chapter 8 in Lamb, et al. (2014), discuss who the customer is and how the Numi marketing team figured that out?

ANSWER:

           

In the first part of the video on Numi Organic Tea, Jen Mullin, the Vice President of Marketing for Numi Organic Tea, described the typical consumer for their products as female, usually college educated.  They love tea and usually consume two to three boxes of tea a month.  They usually drink green tea and consume organic products.  Since they are targeting college to middle age women they are using age and gender segmentation to make up their target market.  They are also using income segmentation because there product is more expensive than others because of the resources they are using it affects who is willing to spend the extra money for the organic tea.  From the start they knew they wanted to target women so they started by donating samples to events and places where they knew women would be or frequently visit.  She stated that they would donate their products to events like breast cancer awareness events.  They were using a concentrated targeting market, which is described as a strategy to select one segment of a market for targeting marketing efforts. (Lamb. 2014).   Which is exactly what they were doing when they targeted events for females. 

2. What is Numi's principle marketing plan? In what way does Numi's marketing team use what they know about their target demographic to implement their marketing plan? 

ANSWER:

Numi’s principle marketing plan is to get their name and products out there to as many consumers as possible through donating and sending out samples to their targeted market areas.  They believe that by getting there product out there to as many people as possible and having people try their product, people will like their product and become returning customers. Target demographic is defined as segmenting markets by age, gender, income, ethnic background, and family life cycle. Through donating samples out to various events and retailers they have developed a demographic to target.  They figured out that there consumers are college to middle age, educated, middle class women.  Knowing that this is there customer base they continue to send samples and donate their products to places where they are.  For example they stated that they target events such as breast cancer awareness and colleges.  This allows them the best chance at growing their customer base and getting new customers.

Defend Your Answer Challenge: Highlight your multiple choice answer in yellow. Write a 100 (or more) word discussion in defense of your answer to the multiple choice and true/false questions using research from your textbook to help substantiate your understanding of segmentation, target marketing, and positioning. Apply APA style referencing in your writing.  

3) Jen Mullin, the vice president of Marketing for Numi Organic Tea, describes their typical customer as a female, college-educated tea lover, possibly an “eco-mom.” What type of market segmentation has she used to identify this customer group?

a. Geographic segmentation

b. Demographic segmentation

c. Ethnic segmentation

d. Psychographic segmentation     

ANSWER:

            The market segmentation that she uses to identify this customer group is Demographic segmentation.  Demographic segmentation is defined as segmenting markets by age, gender, income, ethnic background, and family life cycle. (Lamb, 2014)  All of the terms she uses to describe her typical customer would fall into one of the following categories, age, gender, income, ethnic background and family life cycle.

4) Another way Numi Organic Tea identifies potential customers is through what they want from the product; they are looking for organic, fair-trade, premium quality tea, according to the video. What type of market segmentation is used to identify customers in this way?

a. Geographic segmentation

b. Demographic segmentation

c. Benefit segmentation

d. Usage-rate segmentation

ANSWER:

            Numi Organic Tea also identifies there potential customer by what they want to get out of the tea.  Since these customers are looking for their potential benefits out of the tea the type of market segmentation they are using is Benefit segmentation.  Benefit segmentation is defined as the process of grouping customers into market segments according to the benefits they seek from the product. (Lamb, 2013)

5) Because Numi Organic Tea has identified more than one target market, for example, “eco-moms,” college students, and family travelers, they should be particularly aware of the ____________________, which helps explain how consumption patterns differ at different stages determined by a combination of age, marital status, and the presence or absence of children.

a. Family life cycle

b. 80/20 principle

c. Undifferentiated targeting strategy

d. Concentrated targeting strategy

ANSWER:

            Family life cycle segmentation is a series of stages determined by a combination of age, marital status, and the presence or absence of children. (Lamb, 2013)  This type of segmentation helps when your consumers range in type because not everybody is at the same place in there life’s at the same time.  For example some college age students are married and some are not. 

6) The demographic variable that Numi Tea marketers were examining when they recognized that people who had discovered their product at a high-end spa or fine restaurant often shopped for groceries at Costco was _________________________.

a. Age

b. Income

c. Ethnicity

d. Gender

ANSWER:

            When Numi Tea marketers were examining the people who discovered their products at various places like Costco and high-end spas, they were examining the income demographic variable.  Normally people who shop the sales at Costco are not in the same income class as those who are using high-end spas.  They were trying to figure out exactly what income class would be best to target.

      

7) Numi Tea uses premium ingredients to create a premium tea at an affordable price, according to Jen Mullin. This is a form of ______________________ that the company uses to distinguish their products from those of competitors.

a.  Perceptual mapping

b.  One-to-one marketing

c.  Product differentiation

d.  Market segmentation

ANSWER:

            Product differentiation is a positioning strategy that some firms use to distinguish their products from those of competitors. (Lamb, 2013)  By using premium ingredients and an affordable price they are distinguishing their product from other consumers who make similar products.  Whether by using better ingredients as those who sell tea at a certain price, or offering there product at a cheaper price than those who use the same ingredient’s.  Either way it has helped distinguish them from others.

      

8) Which of the following is the least likely targeting strategy that Numi Tea would select to market their products?

a. Undifferentiated targeting

b. Concentrated targeting

c. Multisegment targeting

d. Niche targeting

ANSWER:

            Undifferentiated targeting is a marketing approach that views the market a one big market with no individual segments and thus uses a single marketing mix. (Lamb, 2013)  This would be the least likely targeting strategy that they would use because they know exactly what group they are targeting.  If they were to use this strategy they would be wasting money and time on consumers who they have already decided that don’t use their product.

9) When Jen Mullin explains that her company seeks to include their product in gift bags and other promotional giveaways by companies and other organizations, she is recognizing the need to change customers’ perceptions through sampling.

a. True

b. False

ANSWER:

            By placing their products in gift bags and other promotional giveaways its helping get their name out there to new potential customers.  By allowing people to sample their products it will help people to change how they view organic foods and teas.  Most people don’t want to waste their money on new products in fear that they won’t like it.  People are usually willing to try stuff when it’s free and if they were to like it, it would intern change how they view the product.

10) To graphically map the “channel conflict” between marketing Numi Tea to premium spas, hotels, and restaurants and selling the same brand at mass market stores such as Target, the company could employ perceptual mapping.

a. True

b. False

ANSWER:

            Using perceptual mapping means displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customer’s minds. (Lamb, 2013)  This would allow them to figure out how different classes of people view their products and what they are willing to spend on their products.

References

Lamb, C. W., Hair, J. F., & McDaniel, C. (2012). MKTG5. Mason, OH: South-Western, Cengage.