At Kraft, the company was having a hard time marketing their single block Velveeta cheese, which is an unrefrigerated cheese. Personally, the only use Velveeta has for me is when I use it to make my homemade queso dip. I have never even thought to use it for any other dish. After doing some research, Kraft came to the realization that they had a group of superconsumers which constituted for over 50% of the profits. These consumers were what made the Velveeta cheese successful in the first place so it would be smart to market new Kraft products to these same consumers, rather than attempting to market to brand new consumers. Kraft launched two new products; refrigerated Velveeta slices and refrigerated shredder Velveeta cheese. Since the two new cheeses were refrigerated, they moved them to the refrigerated dairy isle, with the other cheese brands. This made it much easier to appeal to those consumers who go to grocery stores in search of the perfect cheese brand. This makes a lot of sense and is a great company move. Accessibility to the consumer is huge and having the cheeses with other similar products in order to compare, is a smart choice by Kraft. Not only was this a great idea, but it worked. Noticeably, Kraft profits increased significantly. What Kraft is doing is called target marketing, specifically product-related segmentation and behavioral segmentation. The difference between the two is that product-related segmentation is essentially the relationship that the consumer has with the product. Behavioral segmentation is the degree of loyalty that the consumer has with the company or product being marketed. A combination of the two targets this specific market of superconsumers. The different between superconsumers and heavy users is that heavy users simply purchase the product in large quantities, whereas superconsumers are truly loyal and follow the brand.
The article gives a great example using staplers to show the difference between superconsumers and heavy users. In reference to Velveeta, superconsumers are going to be those consumers who purchase the product to keep on hand. They are going to attempt new recipes and dishes with the Velveeta cheese, rather than simply going to the grocery store and purchasing Velveeta for that one dish. This is a great segment to market because no matter what, Kraft is going to increase sales. Superconsumers are also going to promote the product for the company, but without knowing it. They are going to tell their friends, family and everyone they know about this wonderful Velveeta cheese, which they have been hooked on for years. This creates a chain reaction and saves the company time and money in the long run. New product ideas are tested on these consumers as well. What better way to test a new product, then on a market that is currently already obsessed with the original product, Velveeta. These superconsumers are going to attempt new recipes and maybe even new products that Kraft can in return produce and market. Brand new consumers are not going to be attracted to the new and different products that Kraft markets. If anything, they might be introduced to the original unrefrigerated Velveeta cheese but this is highly unlikely given that the cheese is not placed with the other dairy product in the grocery store. Brand new consumers will overlook the product and try products that are more accessible. In conclusion, this business plan that Kraft is still sticking with to this day, is working. Profits have increased and production is at an all-time high. Concentrated marketing is a brilliant strategy that other companies with similar situations should quickly get on board with as well. Superconsumers are happy and the company is successful.