Business Case MR 4

For the exclusive use of J. Laniado, 2023.
HBP# CU276
PUBLISHED ON
DECEMBER 17, 2019
THE JEROME CHAZEN

CASE SERIES
All Nutrition (A): Focus Group Research for

Market Segmentation
BY KAMEL JEDIDI, * ROBERT J. MORAIS, † AND YEGOR TKACHENKO * *
Introduction
The co-founders of All Nutrition/Nutraline, Cesar and Marco Esposito and Francisco Caceres,
were eager to review the data that had been gathered from their first round of focus group
sessions. All Nutrition was a Chilean nutritional supplements chain, and Nutraline was a
manufacturer of supplements with distribution in four countries. Fourteen years after starting
the two businesses, the co-founders were looking to use market research to get a better
understanding of their customers.
It was the start of 2018, and the co-founders had ambitious goals for their company. They
wanted to transform All Nutrition/Nutraline from a product-focused company into a best-in-
class “omni-channel customer experience company.” They knew that if they wanted to shift
from a sales focus to a customer focus, they had to make changes to every part of their
operation.
To understand which changes they needed to make, they realized that they should learn more
about their customers: their behavior, why they used supplements, and what they thought
about the process of buying supplements.
“Now that we’ve completed the three focus groups, what can we learn from the data we’ve
gathered?” wondered Cesar.1
COMPANY BACKGROUND
“We started the company in 2005 with two partners—my brother and a friend of my
brother’s,” said Cesar. “We saw an opportunity in the market, and we seized it.” The
opportunity the co-founders identified was that while Chilean consumers were interested in
Author affiliation Copyright information

*
John A. Howard Professor of Business, Columbia Business © 2019 by The Trustees of Columbia University in the City of New
School York.
†
Lecturer in Business, Columbia Business School
** PhD ’21 expected This case is for teaching purposes only and does not represent an
endorsement or judgment of the material included. Some
Acknowledgements information in this case has been changed for pedagogical
The authors wish to thank Cesar Esposito of All purposes.
Nutrition/Nutraline for his contributions to this case.
Ken Mark provided research and writing support for this case This case cannot be used or reproduced without explicit permission
from Columbia CaseWorks. To obtain permission, please visit
www.gsb.columbia.edu/caseworks, or e-mail
ColumbiaCaseWorks@gsb.columbia.edu
This document is authorized for use only by José Laniado in Market Research B 23/24 taught by Luis Arregui y Tatiana Pereira, University of Navarra from Sep 2023 to Mar 2024.
buying nutritional supplements, local retailers were unable to stock a wide variety, due to
import restrictions.
First, they created Sociedad Comercial Nutraline Ltda. (Nutraline), a nutritional supplement
company that started out as the sales representative for a brand of supplements. Over the next
few years, they researched and developed an in-house range of brands. In 2019, Nutraline had
13 in-house brands with about 200 stock-keeping units (SKUs) in total. The company
continued to be the sales representative for 13 other brands, with about 400 SKUs in total.
For example, Nutraline was the importer of record for US nutrition brands such as Optimum
Nutrition (Glanbia PLC) and Ultimate Nutrition (Ultimate Nutrition Inc.). Nutraline sold its
proprietary line and its distributed line to wholesalers. Retail accounts, including pharmacies
and health stores, in Chile and abroad stocked Nutraline products. These products competed
with other nutritional supplement brands.
In 2006, the co-founders opened their first physical store, All Nutrition, in Chile. All Nutrition
stores came to high-traffic malls as they expanded across Chile. The stores were staffed by
sales associates who were knowledgeable about diet, health, and sports nutrition supplements.
All Nutrition stocked a range of products, with 800 SKUs under three main categories:
wellness, diet, and sports nutrition. All Nutrition also had an online presence, selling directly
to customers. All Nutrition stores competed with pharmacies and other specialty nutrition
stores in Chile.
The co-founders spent the next 12 years expanding both their Nutraline brand and the All
Nutrition network of stores. By 2019, Nutraline brands were distributed in Chile, Mexico, Peru,
and Argentina, and All Nutrition was Chile’s biggest specialty retailer, with 35 stores and
another seven under construction. Crucially, the 14 years in business had been profitable, and
this had allowed the co-founders to continue to reinvest by building stores and expanding
product range.
“There continue to be many opportunities to grow our presence in Chile,” noted Cesar. But he
added that the focus on building the value chain of both businesses—the research and
development side, manufacturing and packaging of supplements, the management of retail
stores and retail employees, and the distribution of supplements internationally—had meant
that they had lost touch with their actual customers.
They set aside managerial time to focus on customer research, anticipating that the insights
would allow them to unlock another period of rapid growth. To kick-start their efforts, the co-
founders enrolled in the Entrepreneurship and Competitiveness in Latin America Program
(ECLA) at Columbia Business School, a yearlong certificate program for entrepreneurs from
the region that helps them gain the skills and network to professionalize and scale their
companies.

Market Segmentation | Page 2
BY KAMEL JEDIDI,* ROBERT J. MORAIS,† AND YEGOR
TKACHENKO**
MARKET OVERVIEW
“The market for nutritional supplements in Chile is about $210 million,” said Cesar. “Our main
competitors are pharmacies and other specialty stores. There are about 1,500 pharmacies in
Chile, and the main chains have more resources and points of sale than we do. We have a 25%
share of the market, and the market continues to grow at a rate of 20% annually.”
The global sports nutrition market alone was forecast to be worth $24.43 billion by 2025,
growing at an average rate of 9.7% per year.2
For perspective, the US market (with a population of 327 million versus 18 million in Chile)
for sports nutrition supplements was worth $8.4 billion in 2017 and was forecast to grow to
$11.8 billion by 2022.3
COMPANY OBJECTIVES
As the co-founders sat in on the classes and work group sessions at Columbia, they began to
formulate a plan to take their company to the next level. One major challenge was how to learn
about their customers and their habits. The co-founders noted that while they had great
visibility into the operations of the business from research and design all the way to the
management of the stores, they had no information on who their customers were and why
they consumed supplements. Cesar commented on the situation they faced:
We have the physical stores, and they are doing well. But when a customer walks
into our store, we do not know if he or she is a mall customer who is curious about
our store, or is a returning customer, or is responding to a marketing campaign
we’ve just run. We don’t know how to measure his or her shopping experience. To
answer these questions, the first thing we need to do is to find out more about who
our customers are, to segment them into definable groups.
Main objective They wondered how to segment their customers and how to tailor their interactions with each
group. The objective was to create value for their customers and build a loyal following.
As a first step, they settled on hosting focus group sessions, bringing together a diverse group
of customers, and then narrowing the focus to customers who used sports supplements.
RESEARCH GOALS
“We were building our capabilities, our core assortment, our brands, and then our store
network,” said Cesar. “We’re at the end of this process. We want to be the best omni-channel
customer experience in Chile. This means that we will need to change the way we think, the
way we develop product, the way our sales force talks with our customers. To start, we need
to know who our customers are, how to segment them, and how we can work with each of the
segments.”
The co-founders began their research by speaking with their sales force, observing customer
behavior in stores, and asking informally what customers were looking for when they sought
out nutritional supplements. These findings included demographic information (gender, age,
socioeconomic factors), physical activity level, perceived physical condition, the sports they
Page 3 | All Nutrition (A): Focus Group

Research for Market Segmentation
TKACHENKO**
participated in, why they took supplements, when they took them, what formats they
preferred (tablets, powders, gels), whether flavor was important, and their favorite brands.
Cesar remarked that the study was a good start: “It helped us to get a general idea of who our
customers were. But we recognized that we were just beginning to conduct our research, and
we did not know—at the time—what were the best questions to ask. We also did not know
what to do with the information, as we only reviewed the consolidated results, and one cannot
draw a lot of insight from looking at the averages. While it helped us to understand, on
average, how our customers were acting, we did not know how to create customer segments
from these data. Moreover, we needed to conduct further research, because the information
we had compiled was based on the interpretation of our salespeople.”
To augment their studies, they reviewed Chilean and US industry research. “We found that
the market research available for the Chilean market was too broad, Cesar said. “It did not go
in depth into market segmentation at all. The US reports were good, but we are dealing with
a different market, with different consumers. Yet we learned a lot from reviewing a range of
research. For example, we noticed that in the US research, they asked customers why they
stopped taking supplements. This would not have been one of the questions we would have
asked, so that was a good takeaway from looking at the research. We learned that knowing
what questions to ask was important.”
Concluding that they needed to be “more in touch” with their customers, the co-founders
decided to hold a series of focus group sessions.
RESEARCH DESIGN
They selected the sports nutrition category for further qualitative and quantitative analysis. In
order to allow for a deeper series of conversations, a series of three focus groups, each an hour
in duration, were held on the topic of sports nutrition supplements.
Because All Nutrition was a relatively small company, the management team wanted to be
careful about how much money was spent on the research project. An early question they
encountered was whether to rely on an independent market research agency to conduct the
focus groups, or to hold the sessions using internal talent. The team settled on using a
company-employed psychologist—Daniela—as the moderator, with Cesar acting as her
assistant. Daniela was trained as an organizational psychologist and had 17 years of experience
in her profession. She began her career studying consumers’ perceptions of financial services
and then worked for market research firms, specializing in quantitative analysis. At these
firms, Time Research and Adimark, she conducted focus groups on climate change, workplace
performance, and employee training needs.
Further, the team agreed that they would present themselves to focus group participants as a
neutral third-party conducting the focus group on behalf of a sports nutrition company.
The focus group venue was an off-site office that the company rented for the sessions. To
recruit the participants, the team visited their own stores, competitive pharmacies, and sports

TKACHENKO**
gyms. They screened potential participants, selecting those who took supplements as part of
their sports routine. They offered each participant $30 to compensate them for their time. Since
they were not sure how many people would show up for the first session, they extended offers
to 15 potential participants.
A list of questions was prepared for the moderator (see Exhibit 1). Cesar explained how the
team developed the list of topics:
We sat down with our team to define the topics we wanted to investigate further.
We were interested in looking at participants’ feelings toward supplements. We
also wanted to know who our consumers were, what kind of people they were,
what were their pains or desires that motivated them to play sports and take
supplements—“soft” data—and so we relied on an empathy map that we
downloaded from the internet. Then we developed a list of questions for each topic
and arranged them in an order that made sense.
At the first focus group session, held in April 2018, 12 people showed up. The participants
included customers who bought nutritional supplements and also professionals such as
personal trainers. The focus groups lasted about an hour.
The moderator started each session with the intent of building the participants’ trust. In the
first few minutes, Daniela tried to connect with the participants personally and then laid out
the rules of the focus group session, including the objective of the session, how long it would
last, and for whom it was held. After this initial icebreaker, she started with the questions in
order, allowing each participant to provide his or her thoughts on the topic. If the conversation
veered too far off topic, she would intervene gently, steering it back to the main topic. In
addition, she tried to ensure that all participants had a chance to voice their opinions.
WHAT WAS LEARNED FROM THE FOCUS GROUPS
Although Daniela had some focus group experience, the rest of the team did not and learned
a lot from hosting their first session. Some of what they learned concerned consumers and
products, but they also learned about the process of conducting focus groups. “The first focus
group was an experiment,” said Cesar. “We had never done one before.” He continued:
We kept our order of questions flexible, allowing Daniela to move between topics
if necessary. If anything was not addressed, I would try to discreetly point it out to
Daniela, so that she would have a chance to guide the conversation back to that
topic. In the first focus group, we adhered strictly to our own rules, that Daniela
would be the only one to moderate the session. Before the first focus group, we
held a few internal focus group simulations to allow us to practice guiding the
conversation back to the key topics.
We found that holding a focus group with 12 individuals was difficult. Everyone
1st FG issue wanted to talk, and they ended up giving superficial answers to the questions. It
was difficult to dive into the real issues, due to the size of the crowd and time

TKACHENKO**
constraints. In addition, there were professionals—personal trainers—in the room,

2nd FG Issue and they dominated the discussion. They went into technical details at times, and
this took the conversation off in a different direction. We wanted to talk about how
the participants felt about supplements and why they pursued a sports regimen
that included supplements.
Learning from the first session, Cesar and his team altered the moderator’s questions for the
second session, allowing her to press participants on “why” they took supplements. He said,
What the “What we set out to do was to look for the deepest ‘why.’ We had received answers for ‘why’
company but not for the deeper motivations behind the response. For example, they told us that they
was looking wanted to be more muscular, but we did not know if the real motivation was for aesthetic
for
reasons, for sport reasons, or just for pleasure. In the first focus group, we had not obtained
those answers.” He added:
Improvement in
From the second focus group onward, we were more flexible, and I intervened as
the process necessary. Our participants did not seem to mind these interruptions, and it
allowed us to do a deep dive into some of the key topics.
In addition, to allow for a deeper discussion, only six new participants were invited to each of
the two following focus group sessions. For these two groups, the moderator was given
instructions to be more assertive, to manage the conversations in order to allow each
participant his or her chance to speak, and to steer the conversation back to the questions if
necessary. “We were able to ask ‘why’ in the second session. It was much better, and we got
more information,” said Cesar.
ANALYSIS OF THE FOCUS GROUP FINDINGS
The team looked at the data gathered from the focus groups and placed the responses into
different categories (see Exhibit 2). When the team grouped the answers in an Excel file, they
considered their interpretations of what the focus group participants wanted to say. Cesar
commented on the findings:
With the focus groups, we uncovered a lot of insights. Many of these insights were
known to us, and hearing participants echoing the same thoughts reinforced and
validated our perceptions. We uncovered new insights as well. For example, it was
interesting to note that customers had different consumption habits. Some took
supplements every day, others only when they trained, and a third group only
Relevant when they felt like taking a supplement. We also uncovered that there are trust
insights and
discoveries issues: Customers do not tend to trust the opinions of the salespeople in the store.
They trust personal trainers and people who are actually fit and/or muscular. In
other words, people who embody the fitness level or body shape to which they
aspire. These people are references for our customers.
The information from the focus groups reinforced much of what Cesar and his team already
knew. Considering all the findings, the team concluded there were three main reasons why
customers took supplements:

TKACHENKO**
1. to assist in aesthetic effects, meaning to build muscle or to lose fat, for example
2. as a way to boost sports performance or to help their muscles recover faster
from training sessions
3. to assist with health issues, such as a deficiency in a certain vitamin or mineral
Participants tended to learn about supplements from personal trainers and athletes. There was
no other authoritative source, because participants did not want to rely on information taken
from the internet, nor did they trust advice from salespeople, unless the information included
technical details.
In terms of consumption habits, the research suggested consumers could be roughly divided
into two groups: those who took supplements regularly, and those who only consumed
supplements during training periods or when they did not adhere to a healthy diet. Customers
tended to stop using supplements because of cost, the suspension of workouts due to injury,
or a health issue. Cesar and his team found that customers who were more knowledgeable
and who had been taking supplements regularly were more likely to continue taking them.
Yet he also noted that regular users were more likely to be price sensitive, did not value advice
from salespeople, and were more likely to purchase supplements online.
Another group of customers consisted of beginners who needed advice from salespeople on
sports nutrition. The team looked at several variables in their effort to create customer
segments. Cesar added:
The most subjective part was when we had to create tentative consumer segments.
In creating these, we felt as if the result lacked a formal analytical or quantitative
process. Yet it was our best guess at grouping people based on their similarity of
responses and behavioral patterns. This analysis was also informed by our
experience in the nutritional supplements business.
The six segments grouped customers by health and attitudinal attributes, demographics, and
customers’ information sources. For a full description, see Exhibit 3:
 High Performance—“Young, with exclusive dedication to sports, seeks to
improve athletic performance. This customer knows about brands and is
demanding in terms of price. His or her goal is to gain a competitive advantage.
He or she is permanently advised by a specialist on how, when, and what
supplement to consume.”
 Advanced Hardcore/Immediacy—“After years of training and taking
supplements, this customer seeks quick results with low consideration for his
or her health. He or she is not afraid to test extreme products on his or her
body.”
 Advanced Healthy—“This customer is mature, in his or her 40s and seeks
wellness overall. Exercises a lot, never disregarding well-being. His or her
consumption throughout the product categories is transversal and balanced.
His or her main concern is that the brands are good quality, because he or she

TKACHENKO**
is very cautious about what he or she eats. This customer doesn´t know a lot of
brands but has a high understanding of ingredients. He or she is willing to pay
for quality products that do not harm their health.”
 Newbie Cautious—“Adept young sport person looking to credibly test the
effectiveness of supplements in relation to their sport. His or her approach to
the consumption of supplements is in a cautious and measured way and seeks
to prove results to determine future consumption.”
 Newbie Credulous—“In his or her 20s, highly motivated to achieve rapid
visual/physical results. He or she is waking up to the possibility of using
supplements and wants every product to ensure results. He or she gets carried
away by the claims of products that ensure effectiveness. He or she has a low
level of general information about supplements and requires direction.”
 Health Compelled—“People with an illness or deficiency diagnosed by a
health specialist. He or she is a casual shopper, and consumption is sporadic.
Not motivated toward sports. Has a short-term commitment with
supplements.”
PLANNING THE QUANTITATIVE PHASE
Cesar commented on the focus group sessions and the learning derived from them, indicating
an awareness of the limits of focus group studies:
Our experience with focus groups is that they are a good way to get in touch with
our customers and learn who they are and what they like. One challenge, however,
is that we are relying on a small sample of people—24 focus group participants in
total—for our segmentation. We are cognizant of the fact that it might have been a
coincidence that these customers happened to be present, and that other perhaps
more representative customers were not. If we were to hold 10 more focus sessions,
would we end up with different customer segments? We don’t know if the
segments we will create are real or representative.
Cesar and his team wanted to learn more about the customer segments and wondered if a
survey would be the appropriate tool for this purpose. A plan for moving forward was next
on the research agenda.

TKACHENKO**
Exhibits
Exhibit 1
Focus Group Questions
Perception of supplements What was your perception of supplements before you started taking
them?
What do your close friends or family say when you tell them you
consume supplements?
What is your current view about supplements?
Are supplements natural?
How important are supplements to you?
To what extent is the product form a barrier? What form do you prefer?
What’s good about supplements?
What’s bad about supplements?
Goals What are your reasons for using supplements?

Do you have specific goals in mind when using supplements? If so,
what are they?
Finding information How do you research supplements?

How useful is the information about supplements in the market?
How reliable is the available information about supplements in the
market?
How do you find out about product offers?
When you were just considering taking supplements, what made you
Buying decision
decide to buy?
Who convinced you to take supplements?
What is important when choosing a store?
With regard to products, does the brand make a difference?
What product information is important when shopping for
supplements?
What’s your opinion about the cost of supplements in Chile?
If buying online is cheaper, why do you buy in physical stores?
What makes you stop buying in a store or on a website?
Why do you prefer to buy online or in a physical store?
Can an excellent offer overcome a bad service experience?
Consumption habits How rigorous are you regarding your daily dose?
What reasons have led you to pause or stop consumption of a
supplement?
Store perception What do you think of supplement salespeople?

What would you expect from a great salesperson?
What store stands out on service?

TKACHENKO**
Exhibit 2
Focus Group Answers – Perception of Supplements
Perception of Supplements
 Before, I thought they were synthetic and unnatural. Then I realized that
supplements could be OK. You will not see dramatic changes from
What was your taking them, but they are useful in certain cases. Several respondents
perception of agreed with this view.
supplements before
 Some people think they can replace a meal.
you started taking
 I thought they were steroids.
them?
 I thought they were fake.
 I thought they were for high-performance athletes.
What do your close
 Unnecessary. It’s enough to eat the proper food.
friends or family
 There is always the fear of damaging the liver/kidney.
say when you tell
 They are chemicals, and they can be harmful to the body (liver cancer).
them you consume
supplements?  Misinformed people believe they are steroids.
 There is no differentiation between proteins.
 Supplements will not work the same way for all people.
 There is always the fear of damaging the liver/kidney.
What is your  They help protect from injury.
current view about  People need to know that it’s important to pause consumption for the
supplements? body to properly process supplements.
 Supplements are now normal in the gym (and you’re not judged for
using them.)
 They are natural products.
 They are not 100% natural.
Are supplements
 Beauty supplements are natural.
natural?
 Supplements are natural.
How important are  Very important and necessary when training. It’s hard on the monthly
supplements to budget when you’re committed.
you?  They help but are not necessary or essential.
 The taste is an element of surprise affecting consumption.
Recommendations are very important in this topic.
 I prioritize comfort in terms of immediacy of preparation (the time it
To what extent is
takes to prepare the protein and for the powder to dissolve).
the product form a
 The seller’s recommendation is important when it comes to the flavor
barrier? What form
issue.
do you prefer?
 The size of the product is important when you have to carry it around.
 The number of pills. (No one likes to take many pills.)
 Size of pills. (Some product pills are hard to swallow.)
What’s good about
 Comfort and speed.
supplements?
What’s bad about  Can contain toxic chemicals and are synthetic.
supplements?  At some point, they may harm the body.

TKACHENKO**
Exhibit 2 (cont.)
Focus Group Answers – Goals and Finding Information
Goals
 Recovery; pain relief after hard training.
 Increasing muscle mass or reducing muscle mass loss after
hard training.
 Improve athletic performance.
 More energy.
What are your reasons for  To replace a meal.
taking supplements?  To have a healthy life.
 Completing the daily requirement.
 To be stress-free from personal problems.
 To feel good (endorphins).
 Training makes a nice personal space just for me.
 To have good health at an old age.
 For aesthetic reasons. To see that people of the same age look
worse than me on a beach.
Do you have specific
 Be the best and be recognized.
goals in mind when using
 Social pressure or belonging.
supplements? If so, what
 Recover the performance I had when I was younger.
are they?
 To decrease diseases from genetic load.
 To do what others at my age cannot.
Finding Information
 From literature.
 The first contact is with people who have visible results. “If
there is a bodybuilder who represents a brand name, everyone
wants that product.” A familiar face builds trust.
 I research supplements before going to buy. It’s more practical.
 First, I search recommendations; then comes the testing on my
How do you research own body. Later, the results are evaluated.
supplements?  Looking at the internet (YouTube, social networks and the
web).
 Looking for the pros and cons of a product.
 Browsing the web for the cheapest stores.
 Recommendations from a specialist.
 Reading the nutritional table of a product.
 First looking on the internet, later with a specialist.
 There’s little clarity in the information at the time of
consumption.
How useful is the  You have to try it and evaluate the result yourself.
information about  There is no set moment when one decides it is time to take a
supplements in the supplement; it varies depending on each person and their
market? objectives.
 There is no clarity about how much protein is needed. Most
people have no idea how much protein is required by the body.

TKACHENKO**
 There is too much of everything. You have to filter or figure out

what’s important and what’s not.
Finding Information
 Internet is not very reliable. The recommendation of people I
am close to who have visible results has a larger impact.
 There is too much information. The best approach is to test
How reliable is the results on yourself. (Everyone has a different metabolism.)
available information  There are even contradictions among health specialists.
about supplements in the  The best approach is to be advised by a specialist who can
market? recommend specific products.
 Sometimes information is related to marketing purposes rather
than the best advice.
 Very low prices generate distrust.
 At any time, social networks and web pages are full of
information. This makes the access to information very easy,
and that is why it is most frequently consulted.
 Mainly on social media and offers on mall corridors. Agree that
the attractive offers by retail staff are important; going through
How do you find out about the hallways with flyers, signs outside the store.
product offers?  People know before they buy that later this month or early
month there is a special day for sales, and they buy based on
the best deal.
 I get promotional e-mails (lower cost, more ability to be
customized).
 Before I buy, I go to the store and check stock.

TKACHENKO**
Exhibit 2 (cont.)
Focus Group Answers – Buying Decision
Buying Decision
When you were just
considering taking
 I understood they’re not steroids.
supplements, what made
you decide to buy?
 Personal trainer is the main influencer. They even sell
Who convinced you to supplements.
take supplements?  Nutritionist.
 Fellow athletes.
 For the typical customer, buying more product is something
routine, without any complications. Since one uses the same
protein, going to the store does not present any technological
complications.
 Proximity is good but doesn’t determine the purchase.
 Where to buy depends on prices and offers. To choose a store,
the most important things are price and offers, and later the
What is important when protein quality and taste.
choosing a store?
 The service is important when you’re not very knowledgeable
about supplements.
 The variety of different products.
 Salesperson’s advice level.
 Trust in the store brand that distributes the product.
 Customer tracking/after sales.
 Knowledge of salespersons.
 I prioritize the ingredients in the nutritional table over brands.
 I shop by the trust I have in the store regarding product
With regard to products, authenticity.
does the brand make a  Due to my poor knowledge of other brands, after I try one, I
difference? stick to it.
 It depends on the type of product (in proteins, brand is
important).
 Nutritional table.
What product information  Fat level.
is important when  Product precautions.
shopping for  Expiration date.
supplements?  Amount of protein per scoop.
 Who has used it (athletes, ideally).
 The difference in price is not as great compared to international
stores. I believe that the price difference is not as great; when
quoting from eBay with the delivery costs, the difference in
What’s your opinion about price is not that great.
the cost of supplements in
 In Chile, they are more expensive.
Chile?
 They are expensive.
 Healthy foods in general have a higher price.
 The benefits exceed the price.
Buying Decision—Cont.

TKACHENKO**
If buying online is
cheaper, why do you buy  In a physical store, the shopping process is easier.
in physical stores?
 Bad service.
 High prices.
 Knowledge level of salespeople.
What makes you stop
 Lack of fidelity offers to regular customers.
buying in a store or on a
website?  When I don’t understand the price difference between online
and physical stores.
 Lack of product in stock.
 Brand trust (product authenticity).
 Online for price.
 Online if I know the product.
 Physical store if I know the product I need.
 The online support is neither good nor fast.
 Online shopping allows me to compare and visit many stores
Why do you prefer to buy
without leaving the house. It’s very convenient.
online or in a physical
store?  I prefer the physical store, because of immediacy. I buy only
when I’m running out of product.
 Physical store, to avoid the complications of delivery.
 Physical store, because it’s near me.
 I prefer to buy online and collect in the physical store for
convenience.
 Price over service quality (only if I know what I need).
Can an excellent offer
 Guidance and service quality over a good financial offer.
overcome a bad service
experience?  If I know the product, service is less important, but if I’m not
familiar with the product, quality service is a must.
Focus Group Answers – Consumption Habits
Consumption Habits
 I don’t exercise. I don’t consume supplements.
How rigorous are you
 I am very strict in terms of consumption due to my type of
regarding your daily
training. When you decide to take supplements, there’s a
dose?
commitment to consumption.
 All agree that money is the main cause of stopping
consumption.
 If I don’t train, I lower the dose of consumption, but I do not
What reasons have led
stop consumption. I reduce the number of supplements when I
you to pause or stop the
am idle, but don’t stop completely.
consumption of a
 Injuries make me stop.
supplement?
 Holidays.
 For general health, it is healthy to stop and let the body rest
from consumption.

TKACHENKO**
Exhibit 2 (cont.)
Focus Group Answers – Store Perception
Store Perception
 All Nutrition has the most variety.
 All stores sell the same products, but not all have good offers.
What store stands out on Almost all shops sell the same protein, so that the store is not a
service? factor. Pricing and deals are relevant.
 Stores do not sell steroids. No store will sell steroids. Maybe
the black market.
 Salespeople who know a lot are few.
 The first thing to judge from a salesperson is appearance. If
they look athletic or muscular, I assume they know about
supplements.
 We seek advice based on results or success stories.
 Salespeople only want to sell.
 The salesperson’s advice is important when talking about
contraindications. It is important that the salesperson knows
the products and the customer’s needs and conditions.
What do you think of  Salesperson’s knowledge is not relevant for a regular
supplement salespeople? customer. With regular customers, knowledge of the seller is
not the most relevant.
 Sellers are expected to have consumed the product they are
selling. There is a preconception that vendors have tested the
products and therefore recommend specific products on that
basis.
 If you want to buy a specific brand, the salesperson doesn’t
make the effort to know your needs.
 The salesperson judges the client based on their appearance,
which is very uncomfortable.
 To be well-informed and helpful.
 Must talk from experience and must have tried the products
they are selling.
What would you expect  Genuine interest to sell the best option and not what is in their
from a great salesperson? self-interest.
 There are too many muscular salespeople, and they don’t
adapt to customers’ needs.
 Must know the complete range of products in their store.

TKACHENKO**
Exhibit 3
Customer Segmentation – After Focus Groups
SPORT NUTRITION SEGMENTS PROPOSAL
High Performance Advanced Hardcore / Immediacy Advanced Healthy
Young, with exclusive After years of training and taking They are mature, in their 40s,
dedication to sports, supplements, they seek quick seeking wellness overall. Exercise a
seeks to improve their results with low consideration for lot, but never disregarding well-being.
athletic performance. their health. They are not afraid to Their consumption throughout the
They know about test extreme products on their product categories is transversal and
brands and are bodies. balanced. Their main concern is that
demanding in terms of the brands are good quality, because
price. They know about brands and are they are very cautious about what
demanding in terms of price over they eat. They don't know a lot of
Their goal is to gain a trust. brands, but they have a high
competitive understanding of ingredients.
advantage. They know many brands and are They are willing to pay for quality
highly sensitive to price. They are products that do not affect their
They are regularly not afraid to buy from the cheapest health.
advised by a retailer, considering only
specialist on how, convenience over store trust. Their goal is wellness (and a good
when, and what quality-of-life balance (e.g., good
supplement to physical and mental health).
consume.
When quoting
different stores, they
prioritize trust in the
store brand (there are
many stores that alter
the product).

TKACHENKO**
Exhibit 3 (cont.)
Customer Segmentation – After Focus Groups
SPORT NUTRITION SEGMENTS PROPOSAL
Newbie Cautious Newbie Credulous Health Compelled
Skilled young athletes In their 20s, highly motivated People with an illness or deficiency
eagerly looking to test the to achieve rapid visual/physical diagnosed by a health specialist. They
effectiveness of supplements results. They are waking up to are casual shoppers and will consume
in relation to their sport. Their the possibility of using supplements sporadically. Not
approach to the consumption supplements and want every motivated to play sports. They have a
of supplements is cautious product to ensure results. They short-term commitment to supplements.
and measured and seeks to get carried away by the claims
observe results to determine of products that ensure They are focused on improving health
future consumption. effectiveness. They have a low with the help of supplements and
Since it is not their priority, level of general information exercise.
they don't spend much about supplements and would
money, and tend to buy benefit from a lot of advice.
entry-level products of trusted
brands. They are open to be influenced
Their spending budget is regarding effectiveness and
evaluated every month; this is brands.
not a regular expense.

TKACHENKO**
Endnotes
1 All quotes from Cesar Esposito are from interviews conducted by Columbia Business
School.
2 “Sports Nutrition Market Size Worth $24.43 Billion by 2025 | CAGR: 9.7%: Grand View
Research, Inc.,” PR Newswire, news release (January 17, 2019),

https://www.prnewswire.com/news-releases/sports-nutrition-market-size-worth-24-43-
billion-by-2025-cagr-9-7-grand-view-research-inc--818142551.html.
3 “Sports Nutrition in the US,” Euromonitor International (November 2017), pages 2–4.

TKACHENKO**

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THE JEROME CHAZEN

All Nutrition (A): Focus Group Research for

Author affiliation Copyright information

All Nutrition (A): Focus Group Research for

Page 3 | All Nutrition (A): Focus Group

All Nutrition (A): Focus Group Research for

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constraints. In addition, there were professionals—personal trainers—in the room,

All Nutrition (A): Focus Group Research for

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All Nutrition (A): Focus Group Research for

Goals What are your reasons for using supplements?

Finding information How do you research supplements?

Store perception What do you think of supplement salespeople?

Page 9 | All Nutrition (A): Focus Group

All Nutrition (A): Focus Group Research for

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 There is too much of everything. You have to filter or figure out

All Nutrition (A): Focus Group Research for

Page 13 | All Nutrition (A): Focus Group

Focus Group Answers – Consumption Habits

All Nutrition (A): Focus Group Research for

Page 15 | All Nutrition (A): Focus Group

SPORT NUTRITION SEGMENTS PROPOSAL

High Performance Advanced Hardcore / Immediacy Advanced Healthy

All Nutrition (A): Focus Group Research for

SPORT NUTRITION SEGMENTS PROPOSAL

Newbie Cautious Newbie Credulous Health Compelled

Page 17 | All Nutrition (A): Focus Group

Research, Inc.,” PR Newswire, news release (January 17, 2019),

All Nutrition (A): Focus Group Research for

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