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    Segmentation in the Food Processing Industry

    The Challenge

    A global leader in the food processing industry developed and patented a new product that delivers a number of benefits to wine producers, such as reduced process water consumption, lower disposal cost and improved productivity without downtime or capital expenditure. The new solution required positioning, value creation and value pricing in order to launch the product effectively and efficiently

    The Approach

    Market Edge designed a multi-functional process to

    1. Create a new customer segmentation – development of behavioral-based customer segmentation based on customer needs and buying behavior
    2. Define the highest priority target segments – based on a combination of attractiveness criteria and their ability to win in specific segments
    3. Develop a positioning – analysis of the company’s segment specific strengths and weaknesses to create a compelling value proposition
    4. Optimize pricing – quantification of value creation and competitive pricing analysis to capture the additional value created by the new solution

    Value Creation

    The Outcome

    The client’s cross-functional project team and Market Edge worked over a 6-month period to complete the project including a ‘value creation pilot’ to prove the concept and validate the associated pricing. Sales increased >10% and profitability increased >20% during the first 12 months.

    Value-Based Pricing