10/9/24, 11:05 MRKT310 Market Segmentation
AM Memo
To: Anne-Sophie Schmidt, Stonyfield Marketing Director
From: Kylie Quinlan, Marketing Analyst
Date: October 15, 2023
Subject: Stonyfield Market Segment Memo
Market Segment Analysis
Stonyfield is a 100% natural and organic yogurt provider. They currently offer many types and
flavors of yogurt for adults and a large variety of yogurt and smoothies for children that come
in 4 types of packaging convenient for each age group: cups, pouches, tubes, and bottles.
Their products allow for the whole family to consume all natural yogurt with vitamins and
minerals in the most simple way.
There are multiple ways for Stonyfield to segment their customers, including behavioral,
demographic, geographic, and psychographic. Behavioral segmentation groups people according
to how they behave towards products (Segmenting and Targeting Markets and Customers n.d.).
Using behavioral segmentation, Stonyfield can tailor their products to people who have pesticide
allergies, or have a sugar-free diet. Demographic segmentation groups people by age, income,
family size, education, ethnicity, and nationality (Segmenting and Targeting Markets and
Customers n.d.). Stonyfield can use demographic segmentation to specifically market their
products to certain age ranges that they do not already cover, or even market to certain incomes.
Geographic segmentation groups people based on their location (Segmenting and Targeting
Markets and Customers n.d.). Stonyfield could use geographic segmentation to market their dye
products to California residents where red-dye no.3 is illegal. Psychographic segmentation
groups people based on their activities, interests, opinion, attitudes, values, and lifestyles
(Segmenting and Targeting Markets and Customers n.d.). Stonyfield can use psychographic
segmentation to market their products towards people who live an all-natural lifestyle, people
who have strong opinions against GMO or pesticides, vegans and vegetarians, or just people
who are trying to live healthier.
Stonyfield’s current intended primary segment is the demographic of upper-middle class
Generation-X women. The specific psychographic is women who want to buy healthy organic
yogurt for themselves and their children. The Value, Attitudes, and Lifestyle survey (VALS) is a
psychographic survey that helps group people based on their behavior as consumers
(Segmenting and Targeting Markets and Customers n.d.). Stonyfield’s primary segment
according to VALS types are thinkers, because they market their products toward people who
do their research and are guided by their knowledge on proven organic products (Segmenting
and Targeting Markets
about:blan 1/
k 6
, 10/9/24, 11:05 MRKT310 Market Segmentation
AM Memo
and Customers n.d.).
New Market Segments
Stonyfield should target markets that are not heavily saturated by competitors, is accessible, and
large (Selecting Target Markets n.d.). It is recommended that Stonyfield starts to target
Generation Z. Generation Z consists of individuals aged 11 to 26. This generation is mostly able
to make decisions for themselves regarding their eating habits and are heavily influenced by
what everyone they know is eating. Generation Z also is known for caring very much about
beauty standards and their body image, and want to eat healthy to maintain said image (How
social media shaped gen Z in the recent years: Amber 2023). Generation Z are easily influenced
themselves, and also can be influenced to make decisions for their current and future kids.
Stonyfield could greatly benefit off of this market.
Stonyfield could also target lower-class individuals. Lower class consists of households making
$38,113, or less (Walrack, 2023). 37.9 million Americans are considered lower-class, so this is a
pretty big market as well (Bureau, 2022. Many members of the lower class want to be able to eat
healthy and cannot afford it. Stonyfield is already fairly affordable compared to other organic
brands, but still pretty out of reach for the lower-class.
The first step for Stonyfield is to determine their customers' needs. This is the most important
step. Individuals who buy Stonyfields products desire good tasting organic and/or healthy
products for themselves and/or their children. Many people are buying Stonyfield because they
know it is all organic, but some people are just buying Stonyfield because it is convenient and
tastes good. The second step for Stonyfield is to segment the total market. Generation Z is a
large market that only needs to be broken down by age and current eating habits. In step three,
Stonyfield must develop target segment profiles. Target segment profiles are grouped by
behavioral, demographic, geographic, and psychographic, and they help Stonyfield market to
new areas (Segmenting and Targeting Markets and Customers n.d.). Stonyfields fourth step is to
research the new market areas and determine if they are worth investing in.
Recommendation
The Generation-Z demographic is the most opportunistic segment for Stonyfield as it includes
over 20% of the population that is not typically marketed to by the health food industry (Statista
Research Department, 2023). GenZ is also projected to have huge spending power by 2026, and
become the most pivotal generation in the retail industry (Meola, 2023). The VALS type for
Generation Z is Experiencers. The experiencers are people who love to keep up with what's
trending, they love to express themselves, and are spontaneous, (Segmenting and Targeting
Markets and Customers n.d.). Many GenZers are heavily influenced by the people they watch on
social media apps like TikTok, Instagram, and Youtube (How social media shaped gen Z in the
recent years: Amber 2023). The fitness influencer industry is thriving in today's world, and the
biggest audience is GenZ. Some of GenZ is not necessarily shopping by themselves yet, but they
about:blan 2/
k 6
AM Memo
To: Anne-Sophie Schmidt, Stonyfield Marketing Director
From: Kylie Quinlan, Marketing Analyst
Date: October 15, 2023
Subject: Stonyfield Market Segment Memo
Market Segment Analysis
Stonyfield is a 100% natural and organic yogurt provider. They currently offer many types and
flavors of yogurt for adults and a large variety of yogurt and smoothies for children that come
in 4 types of packaging convenient for each age group: cups, pouches, tubes, and bottles.
Their products allow for the whole family to consume all natural yogurt with vitamins and
minerals in the most simple way.
There are multiple ways for Stonyfield to segment their customers, including behavioral,
demographic, geographic, and psychographic. Behavioral segmentation groups people according
to how they behave towards products (Segmenting and Targeting Markets and Customers n.d.).
Using behavioral segmentation, Stonyfield can tailor their products to people who have pesticide
allergies, or have a sugar-free diet. Demographic segmentation groups people by age, income,
family size, education, ethnicity, and nationality (Segmenting and Targeting Markets and
Customers n.d.). Stonyfield can use demographic segmentation to specifically market their
products to certain age ranges that they do not already cover, or even market to certain incomes.
Geographic segmentation groups people based on their location (Segmenting and Targeting
Markets and Customers n.d.). Stonyfield could use geographic segmentation to market their dye
products to California residents where red-dye no.3 is illegal. Psychographic segmentation
groups people based on their activities, interests, opinion, attitudes, values, and lifestyles
(Segmenting and Targeting Markets and Customers n.d.). Stonyfield can use psychographic
segmentation to market their products towards people who live an all-natural lifestyle, people
who have strong opinions against GMO or pesticides, vegans and vegetarians, or just people
who are trying to live healthier.
Stonyfield’s current intended primary segment is the demographic of upper-middle class
Generation-X women. The specific psychographic is women who want to buy healthy organic
yogurt for themselves and their children. The Value, Attitudes, and Lifestyle survey (VALS) is a
psychographic survey that helps group people based on their behavior as consumers
(Segmenting and Targeting Markets and Customers n.d.). Stonyfield’s primary segment
according to VALS types are thinkers, because they market their products toward people who
do their research and are guided by their knowledge on proven organic products (Segmenting
and Targeting Markets
about:blan 1/
k 6
, 10/9/24, 11:05 MRKT310 Market Segmentation
AM Memo
and Customers n.d.).
New Market Segments
Stonyfield should target markets that are not heavily saturated by competitors, is accessible, and
large (Selecting Target Markets n.d.). It is recommended that Stonyfield starts to target
Generation Z. Generation Z consists of individuals aged 11 to 26. This generation is mostly able
to make decisions for themselves regarding their eating habits and are heavily influenced by
what everyone they know is eating. Generation Z also is known for caring very much about
beauty standards and their body image, and want to eat healthy to maintain said image (How
social media shaped gen Z in the recent years: Amber 2023). Generation Z are easily influenced
themselves, and also can be influenced to make decisions for their current and future kids.
Stonyfield could greatly benefit off of this market.
Stonyfield could also target lower-class individuals. Lower class consists of households making
$38,113, or less (Walrack, 2023). 37.9 million Americans are considered lower-class, so this is a
pretty big market as well (Bureau, 2022. Many members of the lower class want to be able to eat
healthy and cannot afford it. Stonyfield is already fairly affordable compared to other organic
brands, but still pretty out of reach for the lower-class.
The first step for Stonyfield is to determine their customers' needs. This is the most important
step. Individuals who buy Stonyfields products desire good tasting organic and/or healthy
products for themselves and/or their children. Many people are buying Stonyfield because they
know it is all organic, but some people are just buying Stonyfield because it is convenient and
tastes good. The second step for Stonyfield is to segment the total market. Generation Z is a
large market that only needs to be broken down by age and current eating habits. In step three,
Stonyfield must develop target segment profiles. Target segment profiles are grouped by
behavioral, demographic, geographic, and psychographic, and they help Stonyfield market to
new areas (Segmenting and Targeting Markets and Customers n.d.). Stonyfields fourth step is to
research the new market areas and determine if they are worth investing in.
Recommendation
The Generation-Z demographic is the most opportunistic segment for Stonyfield as it includes
over 20% of the population that is not typically marketed to by the health food industry (Statista
Research Department, 2023). GenZ is also projected to have huge spending power by 2026, and
become the most pivotal generation in the retail industry (Meola, 2023). The VALS type for
Generation Z is Experiencers. The experiencers are people who love to keep up with what's
trending, they love to express themselves, and are spontaneous, (Segmenting and Targeting
Markets and Customers n.d.). Many GenZers are heavily influenced by the people they watch on
social media apps like TikTok, Instagram, and Youtube (How social media shaped gen Z in the
recent years: Amber 2023). The fitness influencer industry is thriving in today's world, and the
biggest audience is GenZ. Some of GenZ is not necessarily shopping by themselves yet, but they
about:blan 2/
k 6
