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Joyoung Soymilk Maker Segmentation Targeting And Positioning Case Solution

Solution Id Length Case Author Case Publisher
1835 1946 Words (8 Pages) Yi Qian Kellogg School of Management : KEL386
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Joyoung came into being as a result of an invention of automatic soymilk maker by a group of fresh college graduates. Company aimed at providing people with easy, hassle free and healthy lifestyles. Joyoung wanted to sell a new product which initially faced few problems. First two thousand units remained unsold for months; this led Joyoung to conduct a proper research to find out the right customer profile and their purchase intention. The research intended to find out the current needs and trends of the consumers. The research not only pointed out the right consumers profile for the new product, but also helped them to build on the ways through which they can target their customers. This research proved to be much effective, as it helped Joyoung to identify perfect segmentation and the formulation of strategies to target potential customers, based on that segmentation. This research also helped in building on differentiating and positioning strategies. These successful strategies proved fruitful and made Joyoung a market leader. This also provided Joyoung with an opportunity to diversify.

Following questions are answered in this case study solution

  1. Introduction

  2. Explain the research purpose and objectives for the segmentation and targeting research described in the case.

  3. Analyze and interpret the data. Make your recommendations to Joyoung CEOs based on your findings.

Case Analysis for Joyoung Soymilk Maker Segmentation Targeting And Positioning Case Solution

 As a response, they included more product lines like electric pressure cookers, induction cookers, juicers, blenders etc. Joyoung's sales grew swiftly from RMB 6 Million to 120 Million from 1994 to 1999, and currently company has nearly two thousand employees with production house based in Shandong, Zhejiang and Jiangsu.  In the first quarter of 2006, sales of Joyoung maker exceeded the sales of Philips Home Appliances in China.

2. Explain the research purpose and objectives for the segmentation and targeting research described in the case.

Joyoung’s soymilk was a new product in Chinese market at that time. Because of that, target market was not aware of the product features and benefits. As a result, target market was not receptive about the product and so it remained as an inventory for a couple of months. As it was a new launch, so it needed to be communicated to the target audience properly.  Joyoung conducted a research to find the best suited target market for its new product. Joyous did segmentation on the basis of research, and so the positioning strategies were to be developed to communicate product to the target audience. 

This research provided Joyoung with a 360 degree approach to look at different perceptive. It helped to gather target market insights as if they are receptive about their current offerings. The long term objective of this research was if their consumers would be loyal and would they also be receptive to diversity and new product lines. This research also provided a variety of insights relating to people choice of style, color as Chinese usually prefer compact products, taking less of space. This research helped identifying trends, style etc related to the product. Joyoung, as per this research, came up with the product in conformity to the market demand. As a result, it achieved high growth rate and widespread acceptability of the new product. In other words, Joyoung hit a bull’s eye.

Other than that, the objectives for segmentation and targeting were pretty clear. Joyoung Company wanted to understand the target market profile thoroughly, to obtain profile of customers and purchase intention of the customers within the right target market. In segmentation and targeting, firstly Joyoung determined different kinds of customers. Then, it figured out the ones that are best to be served. Finally, company optimized the products and services for the segments and how to communicate people about these products and services. Market segmentation tells about income, purchasing power, education, interests about the target customers summing up the complete customer profile. In this case, when Joyoung launched its product for the first time it had no idea about their customers and their needs. However, they had fair that the product was innovative and if they could do segmentation, and target the customers rightly they can serve different segments in the long term.  With the help of a detailed research, they were able to demonstrate and educate the customers about the product, as well. The purpose of education was to build awareness among customers and gain a certain level of trust. Hence, they educated and informed consumers with the help of supermarkets. It gave them long term benefits which helped them to put a positive brand image in the minds of customers. These were the customers who informed others about this latest development and company gained positive word of mouth. They did interviews and took the benefits of this research later. They did sell the products which helped to cover the expense of this research. Company did reap benefits from this research and achieved the objectives productively. 

3. Analyze and interpret the data. Make your recommendations to Joyoung CEOs based on your findings.

Interpretation and Analysis

Let's analyze variables of market research one by one, and then combine all of them together. Firstly, with respect to gender, male scored high in showing purchase intention, which is 62.39%. Reason being, the automatic soymilk, is easy to use, effortless and quick. Usually, males do not like to invest their time in making breakfast for too long span of time. However, some of them have shown low purchase intention with 61.54%. This tells that they are not sure about the working of the product, and they might not purchase because, for home appliance decision lies in hand of women usually. On the contrary side, women have shown interest in moderate and high purchase intention more as compare to men because this new technology will ease out their workload during the breakfast time. 

Secondly, when comparing the demographic segmentation of people who are single or married, results are quite clear and apparent. Married people show more interest in purchasing the product offered by Joyoung. They show high and moderate purchase intention because they have to take care of their partners, as well. They need and like such products which can make their kitchen work easy and fast. On the other hand, people who have relationship status as single, they are not much concerned about such products and offerings, reason being, their low involvement in kitchen work. Because of these reasons, they showed a low intention in purchasing of the product.

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