Final Customer Purchasing from the Product Producer

Use Steps: Use steps include all the customer's value added activities or the consumption of the product itself. These steps include all the costs the customer incurs in employing the product in its intended use.

Experience: Enhance the experience the customer has with the product

2. Associate the company or the product with an image to increase customer pleasure in using the product

C. Project an image of the values of the firm


Using natural ingredients

No. SIC Year Note
1 2000 2005 Organic and natural foods, like Annie's Homegrown products, are gaining wider acceptance by mainstream stores and consumers. The company bought Consorzio and Fantastic Foods and combined them with Annie's Homegrown to create Homegrown Naturals. While the company has grown, it cannot compete with Kraft Foods, the largest food company in the country, with an 80% share of the U.S. Macaroni and Cheese sales. Annie's has 3% of the market. Instead of going up against the impossible competitor, the company focuses on a consumer who is less sensitive to price and willing to pay more for a different product. Annie's mac-and-cheese sells for about 30% more than Kraft.
2 2047 1991 Ralston Purina, Alpo, and Kal Kan are all introducing versions of more natural meals to focus on health-conscious pet owners.
3 2086 2002 Throughout the last decade, consumers were increasingly reaching for bottled water brands-Perrier, Evian, and then Poland Spring-as a healthy alternative to soda.
4 2086 2004 Hansen Natural Corp. markets and distributes natural sodas, juices, sports drinks and other beverages. The company's focus on the past couple of years has been on energy drinks with splashy marketing and new products geared to various age groups.
5 2111 2001 Sante Fe Natural Tobacco Co has created the American Spirit Cigarettes. The cigarettes have a loyal group of followers among younger smokers that are drawn to the brand by its boast of being additive-free and in some cases made from organically grown tobacco.
6 5812 2005 Panera recently innovated by putting Bell & Evans antibiotic-free, hormone-free chicken in its sandwiches and salads. "The biggest boost for Panera is (tied to) the trends we see in the food industry toward convenience, freshness, and healthy foods." Another plus for Panera is that only half as many people are on low-carb diets this year vs. last year which means new customer penetration.

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