Assume that you inherited a company that makes and sells packaged ice. Traditionally, the company has sold to commercial users such as restaurants, supermarkets, or food distributors. You have decided to expand your customer base to include consumers. Develop a statement of your target market(s), competitor targets, and a value proposition. Be prepared to discuss and defend your strategic decisions with your classmates.
In order to sell packaged ice directly to customers, first, we need to find a customer group. In my opinion, we need to try to sell somewhere where the weather is kind of tropical, people are active – hence often thirsty and where they spend few hours. To reduce the competition we need to make sure we are away from any casual or fast food restaurants just to avoid competition from those fountain drinks.
So, we should sell near beaches, stadiums during matches and people going to hikes or other outdoor activities can be good potential customers. So, the statement would be “We are committed to the customers to bring the ice to them wherever and whenever they need it the most”.
As I see the selling ice directly to the consumer will face a headwind from fast food chains, restaurants, food courts wherever consumer gets ice with their beverages. In this case, supermarkets are competitors too because they are selling ice too. To keep the competition to a minimum we need to be specific about geographic locations and target consumer. Why geography is critical is because people do not go to the beach during winter. Or any place on earth where the winter lasts for 4 – 5 months, people won’t go out so much, even if they do, chances are less than they would need ice. So we should stick to the hot place, where people are physically active (so there would be an age range too, say 15 – 35 men and women) and where people spend few hours. So, sporting events, beaches and outdoor activities such as fishing or hiking can give us perfect opportunity to sell our product to a customer who wants a cold beverage.
Value proposition is going to be – For men and women who love outdoors, our packaged ice is perfect, unlike going restaurant or stores for a cold drink, our packaged high-quality ice gives you a cold drink wherever you want and whenever you want and for a price that would cost you less than the gas you would need to drive to store.