The document analyzes the market for HEB's store brand products among college students in Texas. It finds that HEB brands are currently seen as cheap and low quality but could be perceived as equivalent to national brands if they establish taste tests showing they are better quality yet cheaper. The target market of college students in Texas is estimated at 935,000 who are price conscious. Market research shows most students would attend an HEB College Day event, especially if it included free food, attractions, coupons, and prizes.
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Market analysis
1. Market Analysis
Team #1.8
Wes Drees, Taylor Morrison, Wes Pruitt, Peter Ikeda, Raven
Williams
2. Current Perception
Cheap
Low Quality
Potential Improved Perception
Equivalent to national brands
Better tasting
Cheap
How?
Establish HEB College Day
Establish HEB campus representative
Establish heavy social media presence
Benefits
Save customers money
Voted better quality in taste tests
Product Concept
3. Price matches with quality.
Competitor Strengths
Strength is associated with more recognizable
brands
Can be cheaper than HEB
Competitor Weaknesses
Lower quality than HEB brand
Smaller selection of store brand products
Competitive Analysis
4. High Price
Archer Farms
HEB
Brand
Low Quality High Quality
Kroger
Randalls
Safeway
Wal-Mart Select
Great Value
Low Price
Competitive Analysis
5. College students
Estimated 1.7 million in Texas
Price conscious
Better quality for less
Market Size
55% of market= 935,000
Target Market
6. Favorable vs. Unfavorable
Opinion of HEB Brand
9
8
7
6
5
Favorable
4
Unfavorable
3
2
1
0
Male Female
Market Research
7. Students who would attend
HEB College Day
25
20
15
Yes
10 No
5
0
Attendance at HEB Day
Market Research
8. What would make HEB Day better?
Free Food
Attractions
Coupons
Prizes/Giveaways
Market Research
Editor's Notes
#2: ContributionWes Drees- Interviews, Perceptual Map 際際滷Taylor Morrison- Interviews, Observational Research, GraphsWes Pruitt- Interviews, Target Market, Market SizeRaven Williams- Interviews, Store Manager Interview, Product ConceptPeter Ikeda- Interviews, Competitive ResearchAll worked on slides together
#3: Current Perception In our research, we found that students main perception of HEB products is that they are cheap and of low quality. Students do not think they taste better, therefore we want to improve that perception. Through HEB College Day, we will establish a campus representative who will manage HEBs College Day event and HEBs social media on campus. HEBs College Day:Once a semester, we plan on conducting an HEB sponsored College Day to promote HEB products. We plan to have HEB provide grilling meats, hot dogs, buns, condiments, water and soda for a cook out to provide free sampling of food to students. Creamy Creation, a sub-brand of HEB ice cream, will be provided to create floats to hand out as well.Blind taste testing of HEB brand and the leading national product will be conducted also, to prove that HEB does taste better and is of equal quality to the leading brand. Attractions, such as a band, inflatables, etc would be available to promote event Coupons or a raffle would be handed out to students to use at their local HEB.HEB campus representative:HEB campus representative would be established to help promote HEB on campus, help organize HEB college day and establish a social media presence of HEB on campus.Social Media: To help promote HEB on campus, social media competition will be conducted via facebook and twitter. Benefits:Save customers money by proving HEB products are of greater quality to leading brand and of lower price.Voted better quality in taste tests will establish reassurance in college students to buy HEB brand products.
#4: We value our brand at a national brand level but we offer competitive prices for store brands.Competitor strengths Example. Archer Farms is highly recognizable and you know where the brand comes from whereas HEB brand may not be as recognizable. Kroger brand and Great Value are cheaper brands than what HEB typically offers.Competitor Weaknesses Great Value is not up the same standard that HEB brand holds Example. Archer Farms offers less variety in its own brand. They offer mostly boxed goods.Sources walmart.com, target.com, HEB.com, randalls.com
#5: We chose price and quality for the axes because they are the most important aspects of customer perception of store brand products. In our research we found that customers wanted high quality products at a cheaper price.The arrow next to HEB is to show that we are not actually improving the quality of HEB brand products, we are only improving the perception of the quality.
#6: Our basis for segmentation was demographics because we picked college students in towns with HEBs.Our target customer is any college student, male or female, who attends a university near an HEB. This person doesnt already have to shop at HEB. This person can be an HEB shopper but not know the great value that HEB brand offers. Being a college student, this person is most likely conscious of all their expenditures. This person values quality products and is on a budget, but they prefer not to sacrifice quality for price.Our customer is your typical, everyday shopper who keeps their refrigerator stocked with whatever they want, regardless of healthy qualities. This customer typically likes to get in and out of the store thinking that they have saved money on a regular basis. As a college student, this person appreciates the value of a free meal anytime they can get it. Our market size is based off of HEBs market share in the Texas grocery store market. Because HEB is located in all major college towns, we can correlate the overall state market share to the market share in the college population.
#7: While conducting our interviews, we found that more people have an unfavorable view of HEB brand products than favorable. This proves that there is room for improvement in the perception of the HEB brand products with the target market of college students.
#8: During our interviews, we found that the majority of students would attend an HEB College Day, ,especially if it was located on campus. This proves that students are willing to experience HEB brand products. We also have room to expand our customer base.
#9: During our interviews, the majority of students were most attracted to the promise of free food at an HEB Day. They would also like to see some sort of attraction along with the free food to make it more fun and exciting. Another incentive to help promote an HEB College day would be to have coupons, raffle prizes or giveaways to students who attended the HEB Day.