Slicing the Organic/Non-GMO Pie: Smart Market Segmentation for Sustainable Brands
The market for organic and non-GMO grocery products has exploded in recent years as consumers become more health-conscious and environmentally aware. However, this large market is made up of diverse segments with different motivations, behaviors, and preferences regarding clean-label foods.
As a sustainable CPG brand, properly segmenting your target market is crucial for making smart decisions around product development, messaging, pricing and promotions. Rather than taking a blanket approach, you need to identify the specific organic/non-GMO segments to pursue and tailor your marketing mix accordingly.
So how can you go about intelligently segmenting this market? Here are some key segmentation variables to consider:
Demographic factors: Gender, age, income level, education, household composition, etc. For example, affluent urban millennial families may be a prime segment.
Psychographic factors: Values, lifestyle, and personal interests related to health/environmentalism. LOHAS (Lifestyles of Health and Sustainability) consumers are a key segment.
Behavioral factors: Purchase drivers, brand loyalty, buying channels (e.g., natural grocery, mass, online), and usage rates of different organic/non-GMO products.
Geography: Region, population density (e.g., cities vs. rural), and local regulations and norms around clean-label products.
Once you've identified high-potential target segments, the next step is to really get to know them through market research. This allows you to walk in their shoes and market to them in a relevant, resonant way.
For a full understanding, I'd recommend a multi-modal market research approach combining qualitative and quantitative data:
Surveys and feedback panels to understand opinions, preferences, purchase behavior
Focusing groups to dive deeper into motivations, attitudes and messaging
Ethnographies and in-home interviews to observe actual behavior and consumption
Market analytics to size segments, measure penetration, spot whitespace opportunities
With robust market segmentation research, you can craft highly targeted value propositions, products, and marketing campaigns that truly resonate with your core organic/non-GMO consumer segments. The more targeted your approach, the greater your brand's resonance and the higher the potential returns.
So, don't take a one-size-fits-all approach to the diverse world of organic/non-GMO shoppers. Leverage market segmentation and research to surgically identify and understand your bullseye customer segments - and market to them in a uniquely relevant way as a sustainable CPG brand.
