The purpose of thisreport isto develop a specific marketing plan for Fentimans ginger beer, which is a relatively new product that is faced with potential growth opportunities in the Swiss beer market.To obtain a reliable marketing strategy, the industry and product analysis from assessment 1 and 2 will be summarised and application based on consumer behaviour recommended?
Despite the fact, that beer is the most consumed alcoholic drink in Switzerland, the Swiss beer industry reached its matured state (Schweizer Brauerei-Verband 2017; Passport 2017; MarketLine 2014). The customers are the main industry drivers, who are shifting the consumption behaviour from a high frequency to a reduced amount of quality products (Passport 2017; MarketLine 2014; Rutishauser,Rickert & Sänger 2015) ? Not only the trend towards innovative and premium beers, but also the demand of fruit-infused and refreshable as well as less-alcoholic and healthier beers are supporting the growth opportunities in the niche of special beers in Switzerland (Passport 2017; MarketLine 2014).
How Knowing the target market and the consumers’ behaviour behind the purchasing process is essential when creating a marketing plan (Ang 2014; Schiffman & Kanuk 2010). Customer insights help to focus the limited resources of a company on the most relevant aspects (Lamb, Hair & McDaniel 2013) ?
The main purpose of this paper is to develop a customer oriented marketing plan for the special nutritional energy bars introduced by Kelloggs Australia, namely the Special K Protein bars, which is a relatively new product in the Australian market. It would thus require adequate market research followed by a robust marketing plan to establish itself as a forerunner in the Australian emerging food market. In the emerging food sector, energy bars have proven to be quite a popular choice amongst customers, owing to the multiple benefits that they offer.
They are usually rich in proteins and carbohydrates and would be perfect for individuals who want something to nibble on while they work out or during their hectic schedules. Kelloggs has only recently introduced its Special K bars in Australia, and as such, is a comparatively new product (Kelloggs.com 2018). Thus, a thorough market research has been carried out in the following sections to understand the market trends in this industry.
1.1 Industry analysis
In the past few years, Australians have seen a remarkable increase in the disposable income rates amongst middle classes and upper middle classes. This has also led to a growing awareness about the ill effects of fast food consumption and the need to consume foods that are healthy and rich in essential nutrients (Lee et al. 2014). The energy bar market in Australia is estimated to grow by almost 6 per cent in the next two years, since these energy or granola bars are options for quick and hassle free snacking and are simultaneously healthier than other snacks like chips or even biscuits (Van Toan and Vinh 2018). By the year 2022, energy bars are estimated to hold a superior position in the market and even surpass other unhealthy snacks which have dominated the market so far.
2. Consumer behavior
Since the Special K bars in Australia are comparatively new, it is important to gain insight into the minds of the customers and understand their unique needs and demands. In the section below, the target market and segmentation strategy will be followed for the product.
2.1 Target market
The target market for this product would be the younger generations in Australia. It has been found that the younger generations or the Gen Y are more concerned about the health impacts of their diet and are more likely to consume food items that are rich in nutrients and low on calories (Irene Goetzke and Spiller 2014). The most attractive target market for the product would be working men and women between the ages of twenty and thirty five. This particular category of customers is usually always in a hurry and would prefer on the go snacks.
Lack of convenient snacking options often causes them to skip meals; hence, there is a growing need for introducing food items and snacks which are low in calories, high on nutrients and quick to consume (Mai and Hoffmann 2015). As far as the segmentation strategy is concerned, all four aspects of market segmentation – psychographic, behavioral, demographic and geographic.
Women and men between ages twenty and thirty five
Middle to upper middle classes
Lower to moderate income groups
Both single and married individuals
Most cities of Australia
Kelloggs has an extensive coverage in different parts of Australia, and the Special K bars would be introduced at all outlets, supermarkets and grocery stores in these locations.
Inclined to trying new things
Open to new ideas
Likes to adapt to latest trends
Fast paced lives
On the go jobs
Active on social media
Prefers to stick to healthy diets
Influenced by recommendations and social influences
Influenced by health magazines or social media posts on the same
More likely to purchase on the go
Quick snacking option
(Figure: Market segmentation)
Based on the criteria for effective market segmentation, the following recommendations can be made:
- Measurable: According to the Australian Bureau of Statistics, as of 2016, there were at least 60 per cent Australians over the age of fifteen who have been employed. There are also approximately 6 million people above the ages of twenty and between 20 and 34 who are employed and belong to moderate income groups. Out of this, 65 per cent is expected to males while 56 per cent is expected to be female (ABS.gov 2018). Since customer aged less than twenty are likely to have proper breakfasts and square meals throughout the day, the number of potential customers in this case would be approximately 6 million customers (Aihw.gov 2018).
- Sustainable: As mentioned above, this particular generation of workers in Australia are likely to be health conscious and on the constant lookout for snacking options that are healthy and low in calories. As such, the industry is only in the exponential phases and is estimated to grow at a rapid rate in the future.
- Accessible: Social media would be the best way to reach the target market in this case. As mentioned earlier, this niche market of young working class Australians lead hectic lives, with social media being the primary source of information and entertainment (Libraries.gov 2018).
- Differentiation: This market of working men and women between the ages of 20 and 35 is clearly distinguishable because of their differing patterns and choices or preferences. For instance, the older generations would prefer to have full meals and are less concerned about calorie intake that the target audience.
- Actionable: It can be possible to reach the target audience and provide them with a healthy and affordable alternative through a well defined and integrated marketing mix strategy, as presented below.
2.2 Customer buying decision
In order to gain better understanding of customer expectations, it is important to understand the consumer decision making process (Solomon et al. 2014). There are a number of steps which a customer must go through before finally taking the step to purchase the product.
(Figure: Consumer buying decision)
3. Positioning and branding
In order to ensure that the product in question actually reaches the target audience, a strong branding and positioning strategy will have to be utilized by the company (Andrews and Shimp 2017). For instance, certain changes in the marketing mix would have to be modified slightly. The main goal of the segmentation strategy is to highlight energy bars as the “new in thing” and something that even the celebrities opt for and to portray them as the most convenient snacking options, which are both hassle free and nutritious. In order to create a branding strategy for the company,
it is first important to realize that the company would be competing with other brands producing the same products. However, Kelloggs is an age old brand that has been around for ages and as such has a favorable reputation in the market for producing top quality goods. The brand position is as follows:
- The brand would be producing Special K energy bars.
- The company would mainly target working men and women between the ages of 20 and 35 in Australia.
- It would be in competition with other granola bar companies and other healthy food items in the food and beverages industry, like energy drinks.
- An individual branding strategy would be followed in this case (Todor 2014). Kelloggs Australia has a number of flagship products which are stereotypical of the brand itself. This product would be marketed as a separate one, with the name Special K Protein Bars.
3.1 Marketing mix
Marketing mix refers to the combination of product, price, promotion and distribution strategies that would help the company reach out to its target audience.
- Product – The product in this case is a protein bar manufactured by Kelloggs, branded under the name Special K Protein Bars. These are energy bars which come with a coating of chocolate and abundance of nuts. The bars are rich in both proteins and carbohydrates, which would provide the consumers with energy during the course of the day. The energy bar will be marketed as an on the go snack, or something that people could eat while on the move. A lot of young Australians tend to skip their meals owing to their hectic and tightly packed schedules. Many of them do not have the time to sit down and actually complete their meal. For such consumers, the energy bars would be perfect since they could eat it on their way to work and be energized (Watson 2015).
- Price – The target audience for this product is working class middle class and upper middle class Australian men and women. It is expected that most of them would have a stable income, although the rates of income may vary based on a number of criteria like age, experience and so on. Hence, a low to moderate pricing strategy would have to be followed by the company.
- Distribution – As mentioned earlier, the product would be marketed to most major Australian cities. In these cities, the protein bars would be distributed to grocery stores, supermarkets, local stores and so on, so as to maximize coverage of the product (Papies et al. 2013). Also, a lot of people in Australia shop from retail stores in petrol pumps and would thus have to be included as part of the distribution strategy. Moreover, since working Australians would be the target audience, the energy bars would be made available in the office canteens as well.
- Promotional strategies – The promotional strategies for this product would be through two major sources – health magazines and social media. This present generation of working men and women rarely have time to watch television or read the newspaper. They are more likely to get their information from social media websites and health magazines, which can be accessed on the go and would convey the information in a short, crisp manner.
3.2 Point of sales
Point of sales is the most important aspect of promotional strategies for any company. This is all the more poignant given the fact that POS can interrupt routine purchase behaviors and marketing objectives (Arnett and Wittmann 2014). In this case, the primary focus would be on packaging and labeling.
Generally, packaging serves three functions in a product – it provides information, it protects the product and also promotes the product through appearance (Gomez, Martín?Consuegra and Molina 2015). Since this is an energy bar, the packaging would have to be really attractive in order to lure in the target market. It is suggested that the packaging be bright, vibrant and youthful – through utilization of attractive graphics and colors. The chocolate coating must be made evident through the packaging; this is because taste is usually a primary concern when it comes to energy bars. Also, the nutritional values must be mentioned in the packaging itself, so that the customers can make informed decisions (Ellison, Lusk and Davis 2013).
To conclude, it can be said that in order to effectively sell and promote the Kelloggs’ Special K protein bars, a strong market segmentation strategy would have to be followed. For instance, it has been identified in this case that the target market would be working men and women in Australia between the age of 20 and 35, who would prefer healthy, nutritious snacks on the go over unhealthy fast foods. Accordingly, a segmentation strategy has been drawn up, along with an analysis of the customer buying decision process. The marketing mix in the report has also been carved out keeping in mind the unique requirements and needs of the specific target audience. Point of sales, which includes packaging and distribution strategies, would also need to be taken into account in this aspect.
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