Final Customer Buying 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.

2. Emotional: Segment customers according to the personal emotional needs of the segment.

A. Needs for comfort and status

1. Comfort through the five senses
Interest in new taste in new products

No. SIC Year Note
1 2000 1987 H-S Brewing has a new twist on the wine cooler – a California white wine & fruit-juice slush.
2 2085 2003 Alcohol maker Diageo seeks to completely revamp the way liquor is sold and positioned in the U.S. One of its most successful moves so far has been the introduction of category-blurring "malternatives," which are brewed like a beer but taste like a cocktail. That helps bring in younger consumers who may one day graduate from Smirnoff Ice to Smirnoff vodka. U.S. malternative sales have reached $350 million, grabbing beer share.
3 5800 2003 Dunkin' Donuts started rolling out cappuccino, espresso and flavored varieties.
4 5812 1997 McDonald's share loss came at breakfast and supper/evening, where nontraditional competitors like coffeehouses, bagel shops, home-style cooking, and convenience stores gained share.
5 5812 2001 Jack in the Box's strategy is to stick with what they do best. Among the company's innovations is offering a variety of menu items. The company was the first to introduce the portable salad in 1982 and still offers such food as egg rolls and monster tacos.
6 5812 2001 35% of Sonic's revenue comes from high-margin shakes and ice cream. It also has a higher customer frequency rate than other fast-food chains. "They have one of the most loyal followings in the business."
7 5812 2001 45% of Morrison Management's hospital business is feeding patients while the rest is feeding hospital staff. At retirement homes, Morrison offers restaurant-style service with menus. It also brings in outlets like Pizza Hut and Subway to spice things up.
8 5812 2002 Panera and other high-end sandwich chains also sell gourmet coffee. Success of sales on a national level could steal share away from Starbucks.
9 5812 2003 McDonald's has recently converted to more healthful food. Its market gain came from the strong performance of a new line of salads. But there was another factor to the turnaround. The McGriddles breakfast sandwich is a breakfast item that weighs in at 550 calories and 33 grams fat. The new item is extremely popular and it costs about $1.89.
10 5812 2003 In 2002, during a recession, Brinker International's Chili's, the largest of its seven casual-dining chains, tried out a value-oriented promotion, but it didn't work very well. So last summer, Chili's hired a new culinary team. The group came up with the restaurant's new fajita trio and rib eye steak dishes. The dishes have proved successful despite being more expensive than Chili's traditional fare.
11 5812 2003 Culver's upgrades food baskets (like burger, fries, and a Coke) to bring the average meal up to $7, which is $2 more than McDonalds. It tries to push its deep-fried cheese curds (which have a gross margin of 76%) and its frozen custard (80%).
12 5812 2004 Jack in the Box said same stores sales growth was led by stronger performance of its three new Pannido sandwiches which were introduced in February.

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