Analyse the benefits of Ella’s kitchen using demographic market segmentation

Ella?s Kitchen

Ella?s Kitchen is a business that specialises in 100% organic, healthy food products for babies and children. When Paul Lindley set up Ella?s Kitchen he wanted to provide a quality range of products aimed at promoting a healthy lifestyle for young people. As a father, Paul wanted to do something that would make a difference. The company is named after his daughter Ella. His idea was to produce children?s snacks that were both good fun and good for the child. One product, ?Smoothie Fruits?, is a children?s snack made with 100% crushed organic fruit and no additives, sugar, salt or other artificial ingredients. The smoothies are designed and produced to appeal to children. They are colourful, attractive and children even helped to choose the recipes. When designing the products Paul consulted experts in the field but also listened to real parents and the foods were inspired by real kids. With high rates of childhood obesity in the UK Paul believed that demand would be high.

Paul left his well-paid job, as deputy managing director at children?s entertainment channel Nickelodeon, in order to establish Ella?s Kitchen. He re-mortgaged his house and invested ?200 000 into the business. His ambition was to establish his brand in a national market. He enjoyed early success with a contract allowing him to sell his product in over 300 stores. The business now has 9 ranges stocked in a wide number of supermarkets, small independent stores and online retailers. Paul?s experience and contacts from Nickelodeon proved very useful in establishing Ella?s Kitchen as a brand name. He managed to do a deal with Nickelodeon whereby he received free advertising space for six weeks. His advert was seen by 3 million parents and their children. In return Nickelodeon received a share of the profits.

Paul targeted both children and their parents. Children wanted colour, texture, taste and fun whilst parents were looking for healthy ingredients. Ella?s Kitchen targeted a certain market segment. The parents were likely to be professionals with good incomes. Research showed that this segment liked to make home cooked food for their children because they couldn?t find a suitable alternative in supermarkets.

In 2007 sales turnover was ?800 000. The value of the market as a whole was ?191.4 million. With the market expected to grow by 27.5% by 2011 things are looking good for Ella?s Kitchen. However, they have a long way to go before they can match one of the market leaders, Pip Organic. Pip Organic are forecast to have 36.4% of the market in 2012 with estimated sales of ?72.4 million.

 

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