MKG721 Food Marketing

Introduction

The report intends to present a constructive marketing plan for branded multigrain flour powered by Laucke milling company, Australia. Since the year of 1899, it has been serving quality needs of bakeries. The company is globally known for producing wide range of premium quality flour. Besides, they are committed to produce organic food mixes for baking cakes and cookies at home as well. Considering the market trend the milling co. has decided to launch multigrain flour under the brand name of Laucke Delicacies. Therefore, the objective of this report is to perform an extensive market research by which its marketing position and existing competition will be analysed. Followed by a marketing mix, a feasible marketing strategy will be framed. As obesity has become a worldwide issue, the market is opting for healthy alternatives, which serve justice to their taste buds as well. Considering that particular demand as growth opportunity, this report will seek for framing promotional strategies for Laucke Delicacies’ multigrain flour.

Overview of the product and industry analysis

As mentioned before, not only Australia is the victim of obesity related health issues. The health risks are increasing for global communities depending on bad lifestyle choices. It has been observed that the market trend is on the verge of transformation (Wimalawansa 2014). Consumers’ preferences are shifting towards healthy alternatives while choosing food products in a supermarket. According to nutritionists, as described in Friel,  Barosh and Lawrence (2014) too, comparing to white wheat flour, multigrain flour and multigrain food products like bread, cake, cookies and even wafers are considered healthier as it is a blend of wheat, barley, oats, and cornmeal. All these components have their own significant nutrition value and serve the purpose of a person willing to maintain a healthy diet. The multigrain products are enriched with fibre, iron, folate and vitamin B. However, a scientific procedure must be followed to increase the shelf life of such products, which Laucke can look after with efficiency without altering the nutritious values much. Children are fond of bakery food products the most. As their routine is hectic, according to Thompson ( 2014), they have hardly any quality time to spent with their family or take a break to play and exercise. At times, it is just laziness and reluctant nature or the addiction of video games. Surprisingly, researchers have shown that how this contemporary practices have been destroying the childhood. Consuming junk foods regularly while doing such idle activities are making the young generation fat globally. Multigrain flour is a healthy alternative for regular wheat flour and must consider making pizza, sandwich and tacos. Sometimes homemade chips can be served as well. Laucke presents their organic food mixes considering the children’s urge to eat something tasty and delicious all the time. It can be stated that, acknowledging the awareness of consumers to be healthy by following a healthy diet, Laucke milling company has decided to launch this healthier alternative.

However, the decision of introducing multigrain flour to the market is not only dependent on dynamic consumer preferences but also varied demand of food manufacturers of Australia. As described in dos Santos et al. (2016), multigrain flour is used as one of the raw materials in food manufacturing companies who provide wide range of evening snacks in form of cookies, cakes and whole meals prepared from multigrain blend. The demand of such healthy products is increasing in global food industry and following the same, food processing business units are focusing more into developing by-products made from healthy multigrain flour. According to King et al. (2013), the chief opportunity is to serve health conscious population of Australia and making the society free from several health hazards like obesity, diabetes and high blood pressure. The milling company has identified the prospect of growth correctly acknowledging its potential to contribute a significant part for solving social health issues and attracting the consumers’ attention as a healthy alternative too.

Market segmentation

According to the perception generated from industry analysis, a behavioural shift in consumers’ preferences has been observed while shopping for food products. People are preferring healthy diets does not mean they have to live on boiled chicken and vegetables. Nutrients can be obtained from various grains and using them as ingredients to prepare healthy meals can bring smile to everyone’s face as well. Driven by the market trend, Laucke milling company has decided to target fitness freak people, who are consistently maintaining a healthy lifestyle in order to attain a specific result. Sports persons also have an urge of eating low carb diet and purpose can be served with multigrain flour by which wholesome cakes and cookies can be prepared (Martin et al. 2013). Moreover, obese people, suffering from health hazards are another promising target market where people wants to consume healthy yet do not have wish to eat boiled foods. A number of variables of market segmentation are as follows in a form of table.

Demographic:

• Australian population irrespective of their age are suffering from obesity. Diabetes has been diagnosed among children as well. Bad lifestyle choices are consistently influencing occurrence of serious health issues. In order to include a healthy alternative to their diet, Australian can opt for multi grain flour, bread and food mixes (Malik, Nayik and Dar 2016).
• Women tend to lose their physical competence much faster than men do. Therefore, women need to consume healthy foods to avoid future health risks.

Geographic

• Laucke is based in South Australia yet have an international brand image based on the popularity of their organic product range. Company is going to target Australian population who are suffering from health issues due to bad lifestyle choices (Anderson, Elliott, and Zurynski 2013). Multigrain flour is being used by several multinational food chains as well like subway to meet the requirements of health conscious customers. After the emergence, if the product receives good response from the market company may try to launch it via e-commerce sites to create a global impact.

Psychographic

• As the rate of health hazards is increasing rapidly among global population, Australians have become more health conscious than before.
• A trend of enrolling themselves at health clubs has been noticed.

Apart from that, sports persons and body builders have to be fit for their profession. From that perception, acknowledging its nutritious value they are consumers of multigrain flour as well.

Behavioural

• Heath benefits with quality assurance of Laucke, is expected to approach the customer base positively.
• Multigrain bread or cookies carry taste coupled with health benefits.

Consumer behaviour is changing towards a maintaining a healthy diet. People want their meals to be healthy more than tasty. Consequently, parents are opting for multigrain products for children.

In order to verify the credibility of information about the recent transformation in consumer behavior, numerous studies on consumer behavior of commercial food industry can be considered. Moreover, the organic products are being widely acceptable as these have been designed keeping the social sustainable issues in mind.

In the due course of market segmentation, it has been measured that Australia is under great trouble regarding increasing health risks among both the old and young generation (Taylor et al. 2014). According to the experts’ estimation as stated in Brownie and Coutts (2013), 60% of adults and almost 20% of young population have been reported to be overweight by physicians’ clinics across the country. Therefore, opportunity for growth has been identified considering the wide concern of population.

In addition to that, according to Friel, Barosh and Lawrence (2014), the growth opportunity can be integrated with the purpose of building sustainable society, which is free from health complications. The product will promote itself as an agent of serving nation’s need of being healthy.

The Laucke milling company has been enjoying its international brand image since the year 1899. It will be available on various e-commerce websites who sell retail products. Simultaneously, in collaboration with eminent retail chains and supermarkets like Coles and Woolworths the company is going to sell multigrain flour. Therefore, consumers will have an easy access to these products.

As product is considered as raw ingredients of bakery items mostly, the product can be differentiated to organic food mix, bread mix, multigrain cookie dough and others. Marketing mix can be helpful to promote the product in a better way. The increased concern of well-being among the citizens as well as organizational purpose of achieving social sustainability will work together for promoting the product within the Australian food market.

Decision making process of consumers

While launching a new product, marketers must understand the purchasing behaviour of their targeted customer base. Profitability is dependable on a well-conducted market research. As per Balasescu (2014), a pattern has been identified before customers choose any food items from a retail store. Companies also keep an eye on these behavioural factors to determine sale and profit figure. These levels of decision-making procedure are as follows.

• The first step is to identify the problem of the consumers with contemporary food products and habits. It has exposed the food industry with the information of a shift in shopping behaviour. Australian’s dependency on junk foods which are responsible for cholesterol, diabetes and obesity. Moreover, those items do not have capability to satisfy daily needs vitamins, proteins and minerals. As far as multigrain flour is concerned, consumers are consistently opting for healthy alternatives as those are serving taste buds too.  
• Marketing strategies must be contemporary and used towards making the product well recognised to ensure sales and profitability. Hence, if the product information is broadly available in the market; consumers can gain knowledge, compare and decide to choose the product wisely.
• Laucke milling company has been maintaining a trustworthy image since the beginning of 1900’s. People trust them with their diet. The company has an international brand image of serving quality products. Therefore, positive response can be expected for Laucke delicacies.
• The company is popular for serving quality products. It is the ultimate strategy for holding customer loyalty. Although, as per Sagala et al. (2014), multigrain flour has immense health benefits, company has to set high price for it considering it operation cost. Hence, it may not approach customers of every economic category.

Market position

The product will share a market position where it will face immense competition from existing organic food brands. In order to gain a competitive edge the company must seek for both the effective marketing and operational strategy to maintain customers and distribution networks. To serve the requirements of Australian social sustainability, Laucke delicacies has decided to make their appearance through eminent retail chains, e-commerce sites by performing both the direct and indirect sales. The mission is to achieve maximum market share within next five years.

4p’s of marketing

Product

Multigrain flour is a blend of oats, wheat, barley and cornmeal. It is a wholesome food grain, which can be used as raw ingredient of bakery items, and is a substitute for white wheat or regular wheat flour products. Consumption of multigrain flour has several health benefits, which is attracting the attention of health conscious consumers.

Price

Multigrain flour does not have a longer shelf life. Although, scientific processing helps it to sustain for longer days yet the effective nature of nutrients decreases. Laucke has decided to sell it after mild filtration with high pricing strategy, as they have to keep a minimum amount of profit after spending on production.

Place

Considering the national concern of Australia to lead a healthy lifestyle Laucke has decided to launch it to serve purpose of Australia first. People are considering fitness as a part of their lifestyle where multigrain flour from a branded company will not take much time to generate the revenue (Hinckson et al. 2013). As mentioned before, both the retail chain and e-commerce website of company will be selling Laucke delicacies.

Promotion

Promotional activities will target the fitness-oriented citizens, people facing serious health issues and sports persons. According to Öztamur and Karakad?lar (2014), Social media pages can be created to measure customer satisfaction level and as a predictor of consumers’ preferences. Social media campaign is more convenient than traditional methods of advertisement in terms of spending monetary resource. According to Rutsaert et al. (2013), the objective will be to increase recognition among citizens irrespective of age and gender via campaigns.

Recommended marketing strategy

A branded product when try to enter an emerging food sector, effective marketing strategy must be framed to create a positive impact on the customer base. Strategies will be strictly structured to serve the necessity of people suffering from several health issues related to poor diet. Product USP will be its ability to contribute a significant part in the mission of bringing social sustainably. The strategies are as follows.

• Apart from print and media advertisements, online advertisements will be helpful as it has capability to reach wider range of audiences.
• The company can look for a collaborative approach with doctors’ clinics and ask for their opinion so that it can be used while making the advertisements or on packaging. Writing its nutritious value over the package help to circulate product information.
• Laucke comes with their own website where several recipes of multigrain flour are available. The website link will be printed on the flour packaging (Rundh 2013).
• Their purpose of making Australia as a healthier nation can be used as marketing strategy as well.

Conclusion

As per the market analysis, it has been understood that Australians are suffering from severe health hazards and the ratio of obesity, childhood diabetes is consistently increasing. The product’s potential market is indicating a high possibility of growth depending on its capability of serving the need of a healthy alternative. In order to supervise market trend consistently, using social media as a marketing tool can be highly beneficial. High price- high quality strategy, loyal customer base and positive brand image will be helpful to accomplish organisational objectives and supportive to deal with competitors.

References

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Balasescu, S., 2014. Contributions to the foundation of the marketing mix for retail companies. Bulletin of the Transilvania University of Brasov. Economic Sciences. Series V, 7(1), p.17.

Brownie, S. and Coutts, R., 2013. Older Australians’ perceptions and practices in relation to a healthy diet for old age: A qualitative study. The journal of nutrition, health & aging, 17(2), pp.125-129.

dos Santos, J.L.P., Bernardi, A.O., Morassi, L.L.P., Silva, B.S., Copetti, M.V. and Sant'Ana, A.S., 2016. Incidence, populations and diversity of fungi from raw materials, final products and air of processing environment of multigrain whole meal bread. Food Research International, 87, pp.103-108.

Friel, S., Barosh, L.J. and Lawrence, M., 2014. Towards healthy and sustainable food consumption: an Australian case study. Public health nutrition, 17(5), pp.1156-1166.

Hinckson, E.A., Dickinson, A., Water, T., Sands, M. and Penman, L., 2013. Physical activity, dietary habits and overall health in overweight and obese children and youth with intellectual disability or autism. Research in developmental disabilities, 34(4), pp.1170-1178.

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Malik, H., Nayik, G.A. and Dar, B.N., 2016. Optimization of process for development of nutritionally enriched multigrain bread. Journal of Food Processing & Technology, 7(01), p.1.

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Sagala, C., Destriani, M., Putri, U.K. and Kumar, S., 2014. Influence of promotional mix and price on customer buying decision toward fast food sector: a survey on university students in jabodetabek (Jakarta, Bogor, Depok, Tangerang, Bekasi) Indonesia. International Journal of Scientific and Research Publications, 4(1), pp.2250-3153.

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