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Case D-9 Lawn Mowers! Segmentation Challenges BACKGROUND sharpening. Less adept at tackling tall or thick grass, most electric mowers cut 18-to 19-inch swaths versus 21

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Case D-9 Lawn Mowers! Segmentation Challenges BACKGROUND sharpening. Less adept at tackling tall or thick grass, most electric mowers cut 18-to 19-inch swaths versus 21 inches The lawn mower was developed in the 1830s in England. for most gas mowers. Prices range from $125 to $250 for Interest and enthusiasm for lawn care in the United States corded and $400 or more for cordless. Corded versions dates back to the post-World War II boom in suburban tether you to within about 100 feet of a power outlet. living when America's obsession with the perfect lawn Riding lawn mowers share many of the same draw- began. In the 1950s, the first gas-powered, rotary-motor backs as gas-powered walk-behind mowers. Riding mow- lawn mowers were introduced, displacing the reel ers can be less maneuverable and fail to cut close to (manual push) lawn mower. The surge in demand for gas- obstacles. Prices range from $1,600 to $7,200. While the powered mowers was also accompanied by a surge in big advantage of riding lawn mowers is the amount of ter- mower-related injuries, leading to improvements in the ritory that can be covered, they also have a following in safety of these devices. the little known sport of lawn mower racing. The U.S. Today, the industry is challenged to come up with Lawn Mower Racing Association, based in Illinois, more environmentally sound equipment. Although to- claims more than 20 chapters in various states and a slate day's gas mowers are 70 percent less polluting than those of regional and national races culminating in a national produced 10 years ago, using a walking gas mower for championship. one hour produces as much hydrocarbon and nitrogen oxide emissions-greenhouse gasesas driving 11 cars for an hour. And a gas-powered riding lawn mower produces as LAWN SIZE much greenhouse gas as driving 34 cars for an hour. According to Bruce Butterfield, research director of the National Gardening Association, it's important to pick the PRODUCTS right type of mower for your lawn size. I've seen people with little yards riding a big riding mower. They spend A wide range of products are available for cutting lawns; more time backing up and turning around than cutting the they vary in terms of power source (manual, electric, grass." For under a half-acre of lawn (20,000 square feet), gas), operator mode (walking, riding, or automatic/ consider an electric or battery-powered mower. For lawns robotic), and additional accessories and features, ranging up to an acre (43,560 square feet), a gas-powered walk- from baggers for grass clippings, cup holders, and power behind mower is recommended. And if your lawn is from steering to a cooking grill. 1 to 3 acres (130,680 square feet), it may be time to con- An estimated 6 million gas-powered, walking lawnsider a riding mower or a lawn tractor. mowers were sold in 2007, the vast majority of all mow- ers sold in the United States. More Craftsman (Sears) gas-powered walking mowers were sold than any other BENEFITS SOUGHT brand. Prices for gas-powered walking lawn mowers range from $200 to $700 depending on horse power, What are people looking for in a lawn mower? Is it about brand, and features. speed in mowing the lawn, safety, control, noise reduc- Reel mowers, the manual push mowers of old, have tion, reducing their carbon footprint? been making a comeback. American Lawn Mower Co. of A surprising force in the demand for reel lawn mowers Shelbyville, Indiana, claims to be the only U.S. manufac- has been women purchasing the mowers for the exercise. turer of reel mowers. Estimates are that 350,000 manual Why go to the gym when you can get a workout on your mowers were sold in 2007, up almost 100,000 over the lawn each week? A return to manual mowers has even previous year. Reel mowers are priced from $100 to $400 been touted as a way of addressing the obesity problem in and eliminate concerns about gas, repairs, and getting it children. nactive kids away from the video started. However, Consumer Reports cautions that most games this summer and out there mowing the lawn. reel mowers can't cut grass higher than 1inches or trim Mower-produced pollution and gas prices have cap- closer than 3 inches around obstacles. tured the interest of the industry and consumers. Since Electric lawn mowers-major brands include Black & most gasoline-powered lawn mowers do not have cata- Decker and Craftsmanare available in both corded and lytic converters, they produce a significant amount of cordless models. Electric mowers produce no exhaust greenhouse gases, not to mention the fact that they are emissions and require little maintenance besides running on a nonrenewable resource petroleum. Adding th per day. catalytic converters to gas-powered mowers is being re- period in April, giving consumers a rebate for new manual sisted vigorously by manufacturers just as automobile or electric mowers. The switch was most pronounced in manufacturers resisted the change in the 1970s. California's health-conscious urban areas such as Toronto, Montreal, proposed regulation of small-engine emissions (which and Vancouver. would necessitate the use of a catalytic converter) would cut 22 tons of smog-forming chemicals from the Questions air per day, the equivalent of more than 800,000 cars 1 Identify at least three bases for segmenting the lawn While a representative for Briggs and Stratton claims mower market. Prepare a market-product grid illustrating that meeting new pollution standards will require a mini- at least one of these bases. mum of a 30 percent across-the-board price increase, the 2 What criteria should a lawn equipment company use Environmental Protection Agency estimates that a cata- in assessing the attractiveness of market segments? What lytic converter and new hoses would cost a company sort of information is needed to fill in the market-product about $20 to $25 per machine on average. Many consum- grid and allow the firm to make that target market ers apparently are willing to pay more for a cleaner ma- decision? chine, especially when educated about the pollution 3 How might a lawn mower company use segmentation problem. for positioning purposes? At present, the manual reel Home Depot's Mow Down Pollution program has mower market is rather small but growing. What market- been a big success in Canada. Home Depot collected a re- ing mix recommendations could be used to significantly cord 5,000 gas-powered mowers and trimmers in a 10-day expand this market? Case D-9 Lawn Mowers! Segmentation Challenges BACKGROUND sharpening. Less adept at tackling tall or thick grass, most electric mowers cut 18-to 19-inch swaths versus 21 inches The lawn mower was developed in the 1830s in England. for most gas mowers. Prices range from $125 to $250 for Interest and enthusiasm for lawn care in the United States corded and $400 or more for cordless. Corded versions dates back to the post-World War II boom in suburban tether you to within about 100 feet of a power outlet. living when America's obsession with the perfect lawn Riding lawn mowers share many of the same draw- began. In the 1950s, the first gas-powered, rotary-motor backs as gas-powered walk-behind mowers. Riding mow- lawn mowers were introduced, displacing the reel ers can be less maneuverable and fail to cut close to (manual push) lawn mower. The surge in demand for gas- obstacles. Prices range from $1,600 to $7,200. While the powered mowers was also accompanied by a surge in big advantage of riding lawn mowers is the amount of ter- mower-related injuries, leading to improvements in the ritory that can be covered, they also have a following in safety of these devices. the little known sport of lawn mower racing. The U.S. Today, the industry is challenged to come up with Lawn Mower Racing Association, based in Illinois, more environmentally sound equipment. Although to- claims more than 20 chapters in various states and a slate day's gas mowers are 70 percent less polluting than those of regional and national races culminating in a national produced 10 years ago, using a walking gas mower for championship. one hour produces as much hydrocarbon and nitrogen oxide emissions-greenhouse gasesas driving 11 cars for an hour. And a gas-powered riding lawn mower produces as LAWN SIZE much greenhouse gas as driving 34 cars for an hour. According to Bruce Butterfield, research director of the National Gardening Association, it's important to pick the PRODUCTS right type of mower for your lawn size. I've seen people with little yards riding a big riding mower. They spend A wide range of products are available for cutting lawns; more time backing up and turning around than cutting the they vary in terms of power source (manual, electric, grass." For under a half-acre of lawn (20,000 square feet), gas), operator mode (walking, riding, or automatic/ consider an electric or battery-powered mower. For lawns robotic), and additional accessories and features, ranging up to an acre (43,560 square feet), a gas-powered walk- from baggers for grass clippings, cup holders, and power behind mower is recommended. And if your lawn is from steering to a cooking grill. 1 to 3 acres (130,680 square feet), it may be time to con- An estimated 6 million gas-powered, walking lawnsider a riding mower or a lawn tractor. mowers were sold in 2007, the vast majority of all mow- ers sold in the United States. More Craftsman (Sears) gas-powered walking mowers were sold than any other BENEFITS SOUGHT brand. Prices for gas-powered walking lawn mowers range from $200 to $700 depending on horse power, What are people looking for in a lawn mower? Is it about brand, and features. speed in mowing the lawn, safety, control, noise reduc- Reel mowers, the manual push mowers of old, have tion, reducing their carbon footprint? been making a comeback. American Lawn Mower Co. of A surprising force in the demand for reel lawn mowers Shelbyville, Indiana, claims to be the only U.S. manufac- has been women purchasing the mowers for the exercise. turer of reel mowers. Estimates are that 350,000 manual Why go to the gym when you can get a workout on your mowers were sold in 2007, up almost 100,000 over the lawn each week? A return to manual mowers has even previous year. Reel mowers are priced from $100 to $400 been touted as a way of addressing the obesity problem in and eliminate concerns about gas, repairs, and getting it children. nactive kids away from the video started. However, Consumer Reports cautions that most games this summer and out there mowing the lawn. reel mowers can't cut grass higher than 1inches or trim Mower-produced pollution and gas prices have cap- closer than 3 inches around obstacles. tured the interest of the industry and consumers. Since Electric lawn mowers-major brands include Black & most gasoline-powered lawn mowers do not have cata- Decker and Craftsmanare available in both corded and lytic converters, they produce a significant amount of cordless models. Electric mowers produce no exhaust greenhouse gases, not to mention the fact that they are emissions and require little maintenance besides running on a nonrenewable resource petroleum. Adding th per day. catalytic converters to gas-powered mowers is being re- period in April, giving consumers a rebate for new manual sisted vigorously by manufacturers just as automobile or electric mowers. The switch was most pronounced in manufacturers resisted the change in the 1970s. California's health-conscious urban areas such as Toronto, Montreal, proposed regulation of small-engine emissions (which and Vancouver. would necessitate the use of a catalytic converter) would cut 22 tons of smog-forming chemicals from the Questions air per day, the equivalent of more than 800,000 cars 1 Identify at least three bases for segmenting the lawn While a representative for Briggs and Stratton claims mower market. Prepare a market-product grid illustrating that meeting new pollution standards will require a mini- at least one of these bases. mum of a 30 percent across-the-board price increase, the 2 What criteria should a lawn equipment company use Environmental Protection Agency estimates that a cata- in assessing the attractiveness of market segments? What lytic converter and new hoses would cost a company sort of information is needed to fill in the market-product about $20 to $25 per machine on average. Many consum- grid and allow the firm to make that target market ers apparently are willing to pay more for a cleaner ma- decision? chine, especially when educated about the pollution 3 How might a lawn mower company use segmentation problem. for positioning purposes? At present, the manual reel Home Depot's Mow Down Pollution program has mower market is rather small but growing. What market- been a big success in Canada. Home Depot collected a re- ing mix recommendations could be used to significantly cord 5,000 gas-powered mowers and trimmers in a 10-day expand this market

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