Monthly Archives: October 2012

RE: Brandchannel on Baby Carrots

“Eat ‘Em Like Junk Food.”

While reading through Brandchannel’s recent blogs, I stumbled upon a blog by Dale Huss on Bolthouse Farms’ Baby Carrots; particularly the recent introduction of “Shake N Bake Memories.” Consumers are able to “pinch, pull, shake and eat” carrots as Bolthouse puts it. The blog states that the new product is available at 99 cents (certainly competitive with similarly-shelved items) and in three flavours: Ranch, Chilli Lime, and Salsa.

A Quick Analysis

The ad clearly employs demographic  and psychographic segmentation; for instance, the ad portrays a group of people, likely in their mid-20s, enjoying themselves at a house party by a pool. Also, the disturbed neighbour in the beginning of the ad says “So my neighbours… they’re just shaking their carrots right out in the open over there.” These two above cases demonstrate that the company is likely trying to target people who are either young and active or have a spot in their heart for suggestive humour, or both.

Another example of demographic segmentation is briefly mentioned by Mr. Huss’ blog. The ad also caters to Baby Boomers; North Americans from this generation are likely to have had the pleasure of eating Shake and Bake chicken. Bolthouse emulates this experience by allowing consumers to do the same, but with carrots instead of chicken. Feelings of recall and nostalgia are powerful, and coupled with the fact that one realizes he or she is enjoying something health conscious and tasty in an unhealthy America (68.8% of adults are overweight or obese), provide a formidable formula to success.

The only issue that I see with “Shake N Bake Memories” is that it could potentially damage Bolthouse’s baby carrots that already exist in the market. Introducing a newer version of a product makes the older product seem inferior and outdated.

 

How Much Do You Pay for Your Razor?

Dollar Shave Club is a company that promises to sell quality razors at low prices. The company was relatively unknown until mid-2012 when it uploaded an advertisement on Youtube that has since garnered over six million views and won “Best Out-of-Nowhere Video Campaign” at AdAge’s 2012 Viral Video Awards.

Warning – contains inappropriate language. Viewer discretion is advised.

What makes Dollar Shave Club unique (other than its emphasis on humour) is its business model. Customers can choose between three kinds of razors: The Humble Twin, The 4X, or The Executive, priced at $1, $6, and $9 respectively. A consumer’s first purchase will entitle them to a razor and several razor blades, all shipped for free (with the exception of the $1 package). Customers can subscribe for monthly packages of razor blades for their particular razor at the same above rates. Customers are also free to upgrade and downgrade, and if they choose to do so, they get another free razor. Subscriptions can be cancelled at any time.

All the above benefits and a low price-point have heavily influenced consumer buying decisions. At a price of $1 per razor, many consumers will not engage in a high amount of problem solving and are likely to buy on impulse.

There are always customers who are not satisfied with their orders, and such people experience post purchase cognitive dissonance, or buyer’s remorse, and may do some research to find out more information about the company or if other people have the similar product or service issues. After some research, one may discover that Dorco, another razor retailer, is one of the Club’s main suppliers. Customer’s can buy virtually the same razors from Dorco for an even lower price. It just goes to show the importance of information, or in Dollar Shave Club’s case, imperfect information.