sterling-rice group situational segmentation a new product developer’s dream
TRANSCRIPT
Sterling-Rice Group
Situational Segmentation
A New Product Developer’s Dream
Page 2
Today’s Discussion
Innovation Perspective
Situational Segmentation
Noodles & Company Case Study
Questions and Answers
Page 3
Innovation Perspective
The key to successful innovation goes beyond demographics
DemographicMale, 32, White Collar
Create a restaurant concept?!
Page 4
Innovation Perspective
The key to successful innovation goes beyond general behavior
DemographicMale, 32, White Collar
BehaviorEats out frequently at fast food,fast casual and casual restaurants
Create a restaurant concept?!
Page 5
Innovation Perspective
Truly understanding your consumers world and the situations they often find themselves in is key to innovation
DemographicMale, 32, White Collar
BehaviorEats out frequently at fast food,fast casual, casual restaurants
SituationMorning on the way to workNo time to sit downNeeds energy
Create a restaurant concept?!
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Situational Segmentation
Situational segmentation explores the consumers “many worlds”
Facts• Day of week/Time of day• Where I’m coming/going• Who I am with
Moods• Before • During• After
Competitive Set• Direct competitors• Indirect competitors
Needs/Expectations• Antes (have to have)• Drive (differentiators)
Noodles & Company Case Study
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Background & Objectives
Background
Noodles & Company sales have yet to recover from the “carb-scare” of the early twenty first century
Men in general have never been big “Noodles fans”, but are needed more than ever to build sales
Objectives
Understand men’s barriers to entry for the Noodles concept
Recommend menu item changes to address/overcome these barriers
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Executive Speculation
Food Other
“Fix the food and we’ll be okay” “Lower prices”
“Give them something to hold” “Add TVs, bars, and wood”
“They need to feel satisfied”
“It’s all about portion size”
“Actually grill the meat!’
“Meat and potatoes”
Noodles & Company executives, relying on years of experience and men stereotypes, felt that men like their restaurants/food “manly”
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SRG Perspective
Understand what men really want to eat (experience) at Noodles & Company lies within understanding situations where Noodles can “win”
Chicago and Denver
Males, with/without kids
Higher education
Mid to upper income
Quick casual customers
Light Noodles &Company customers
Eating out situations
Brand set and choices
Emotions
Requirements
Noodles & Company barriers
Noodles & Company opportunities
Six Sessions Discussion
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Eating Out Situations
Out and About
EverydayFamily Dinner
Kicking Offthe Night
Lunch withCoworkers
Solo Parent Date Night
Eating Solo
Client Lunch
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Two Key Situations
Which situation to you think Noodles & Company is best suited for?
“It’s her ‘out and about,’ not mine.”
“How many nights do we really have together? So I do
what she wants!”
“We’re usually rushed, so it’s easier if there is no arguing.”
“I want something that is kid-pacifying.”
Out and About
Solo Parent
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Noodles & Company Friendly Situations
Some situations are more Noodles & Company “friendly” than others
Which situations are most critical, and in the end, how do we become more “man-relevant” in these situations?
Out and About
Everyday Family Dinner
Solo Parent
Eating Solo
Date Night
Client Lunch
Kicking Off the Night
Lunch with Coworkers
Less MoreFrequencyFrequency
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Out and About
BEFORE
Anxious/Rushed
DURING
Good
AFTER
Satisfied
Relaxed
Happy
You and your significant other are out running errands and wantYou and your significant other are out running errands and wantto stop to get a quick lunch or dinner togetherto stop to get a quick lunch or dinner together
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Out and About
Expectations Noodles “Grade”
Full, but not bloated + Light, energizing food
Healthy food + Healthy halo
Good, quick service + Assuming no lines
Quiet +/- Perhaps too quiet?
Can socialize + Food delivered to table
Clean and vibrant + Feminine “okay”’
Serves alcohol +/- Minimal awareness
Noodles & Company is well-positioned for today’s “out and about” couple
Quick, healthy food that energizes you for the balance of the day is a Noodles & Company strength to be leveraged
Neighborhood Places
Brands Noodles & Company Delivery
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Solo Parent
Only one parent with kids (either single parent orOnly one parent with kids (either single parent ordad’s night out)dad’s night out)
BEFORE
Overwhelmed
DURING
Overwhelmed
AFTER
Overwhelmed
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Solo Parent
Noodles & Company adds to the stress level and overwhelmed feeling that men experience in this situation Can Noodles & Company become more of a kids’ place and stay true to the brand?
Expectations Noodles “Grade”
Treat for kids - Kids don’t drive aN&C visit
Plenty of kids options- 2–3 (hard to find) entrées
do not deliver variety
Kids can be kids - Magnifying glass effect
Kids can keep themselves busy - No play lands or
coloring books!
Quick + Not a problem atdinner time
Predictable - Lack of familiarity among this target
Brands Noodles & Company Delivery
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Noodles & Company Challenge
Can you create a Noodles & Company experience that fully meets the needs of the Out & About and the Solo Parent Occasion
Food
Service
Atmosphere
Treat for spouse/date Treat for kids
Healthy options Plenty of kids options
Quick Quick
Quiet Kids can be kids
Serves alcohol Serves shakes
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Questions and Answer
Was it all about “meat and potatoes” after all?
Is it really possible to deliver an “Out and About”, “Solo Parent” place?
If you were Noodles & Company which situation would you focus on?
Are there other categories where situational segmentation works?
What categories and why?
Thank You!