In-class Exercise: Case Study SmartSnack

Case Study SmartSnack

SmartSnack GmbH is a German startup offering healthy snack vending machines for office buildings, gyms, universities, and co-working spaces. Instead of traditional sugary or processed snacks, SmartSnack stocks organic granola bars, protein balls, mixed nuts, and kombucha.

SmartSnack operates in Berlin, where over 3.8 million people live, and the number of office workers has remained stable post-pandemic due to a hybrid working culture.

A recent market survey conducted by SmartSnack in Berlin found:

• 32% of urban professionals aged 25–45 say they would "regularly use" a healthy vending machine at work.
• Among them, 60% are willing to spend €10–€15 per week on healthy snacks.
• A pilot test in five office buildings showed that health-conscious employees made up 70% of weekly sales.
• Competitors (traditional vending companies) focus mostly on low-cost, high-sugar options.

Assigment

You are working with SmartSnack GmbH’s Berlin launch. Your goal is to segment the local market using the data provided. No need to use external sources. Interpret the data and create 3 clear customer segments, each with a name, description, and rationale.

Step 1: Segmentation (10 minutes)

Market Research Data (Berlin Sample of 1,000 Adults)

Additional insights:

• 60% of respondents who prefer healthy vending also report actively reading nutrition labels.
• 44% of all respondents said sustainability of products/packaging influenced their food choices.
• 36% of interested respondents prefer cashless-only machines.
• 63% of respondents interested in SmartSnack products are concerned with afternoon energy slumps.

Task

1. Analyze the data above. What patterns do you see in age, work habits, values, or behavior?
2. Define 3 customer segments (not just age groups!) by clustering similar traits.
3. For each segment, give:

Tip: Avoid copying the table directly into your answer — synthesize and interpret. For example, a segment might cut across age groups based on behavior or values, not just age alone.

Step 2: Targeting – Choose the Best Segment(s) (10 minutes)

After you've defined three potential segments from the Berlin market data, your next task is to select one primary target segment for SmartSnack's vending machine rollout.

Use the data from Step 1 and consider the following:

• Segment size – How large is the segment in Berlin (based on age/work habits)?
• Profitability – How much is this group willing to spend weekly?
• Accessibility – Are they easy to reach (e.g. work in large office buildings, high-traffic areas)?
• Fit with SmartSnack’s value proposition – Do they care about nutrition, sustainability, or convenience?

Task:

1. Clearly identify which one segment (or two closely related segments) you will target first.
2. Provide three specific reasons for your choice, supported by the data from Step 1.
3. Briefly outline where and how SmartSnack should reach them in Berlin (e.g. co-working spaces, corporate towers, tech hubs).

Step 3: Positioning – Define SmartSnack’s Place in the Market (10 minutes)

Based on your chosen target segment, develop a clear positioning strategy that communicates how SmartSnack stands out from traditional vending options.

Positioning Statement Formula:

For [target segment], SmartSnack is the [product category] that [key benefit], because [reason to believe].

Task:

• Write a unique positioning statement tailored to the segment you selected.
• Include the "category" (e.g. vending service, food tech, workplace wellness brand).
• Emphasize one or two distinctive benefits (e.g. 24/7 healthy snacking, clean energy boost, sustainable packaging).
• Sketch a positioning map showing how SmartSnack compares to traditional vending machines and one other competitor (e.g. food delivery apps or in-office snacks).