Scenario 2 : Carr’s Butter
As a fine chef Tim Carr believes there is a market for the highest quality organic butter. He believes that discriminating home cooks as well as chefs in fine restaurants would be willing and able to pay a premium price for such a product. He also believes that the marketplace would attach significant value to such a product based upon its origin in Lancaster County, Pennsylvania. Tim has assembled information from the Internet about several companies that produce and sell organic butter. He has found that some producers have taken a high volume approach and distribute their products through a national distribution network at only a slight premium in price over traditional butter products. These creameries stress the organic nature of their butter to differentiate their product. Others appear to have positioned themselves as purveyors of a particularly high quality product that also happens to be organic, and have priced their butter at a significant premium.
1. Of the various segmentation bases discussed in the text, which seem to be the most appropriate for Carr’s?
2. How might Carr’s address the problem of differentiating and positioning their product?
3. Select a value position statement for Carr’s.

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