Kinnerton Confectionary Company - Marketing Essay, Segmentation, And Expansion.

Introduction to Marketing Communication

Marketing refers to a form of communication between business and the customers with an objective of making sales for the goods and services. Marketing also relates to the activities and processes, set by the companies or organizations and which its goals are to create, communicate, deliver, as well as offering value to customers and partners and the whole market society. On the other hand, communication refers to the act of passing information from one party to another through an effective channel to reach the targeted group[1]. Therefore, marketing communication refers to the means absorbed by the organizations to transfer messages about the products and the sale of the brand, to reach directly or indirectly consumers and intent to persuade them to purchase. In other words, for our case, Kinnerton has adopted different networks to exchange the information about their goods to the consumers.

Kinnerton was founded in the late 70s, and originally it was situated in London, UK. The company expanded with having additional offices across the UK, Australia, and Hong Kong. Kinnerton Confectionary Company is the global leading distributors’ chocolates for kids in the Australia and global context. Some of the variety of chocolates include Easter Eggs, chocolate lollipops, chocolate bars, frozen milk chocolates and chocolate cars among others³. The company makes its sell via an established system of partners who include distributors in the entire world. The company is a subsidiary of Zertus GmbH Company which it has its root in Germany. The company has a reputation for producing quality products. Kinnerton Confectionary Company’s vision is to position itself as a cutting edge brand in the whole world by making chocolate and confectionery market competitive as well as improving the company’s reputation. The company is goal oriented and quality oriented since they deliver on their promises and able to meet the quality standards internationally.

The company has expanded into a multinational corporation operating in many countries by having partners and warehouses in those particular countries. The company has over ten thousands workers in Australia and over twenty thousand employees’ global wise. The firm involves multiple numbers of models like supply chain process, science and tech (the internet and social media), Human resources, corporate affairs, and IT to reach their customers⁴. The firm’s corporate system is meant to help to achieve the company’s goals and international growth agenda.

Integrated marketing and communication refers to the expansion of contemporary and customary marketing strategies to optimize the communication of a dependable message the company’s brands to shareholders and customers. The method ensures that all channels of communications and information are linked together, that is, coordinating all the promotional tools to enhance harmony in the supply chain system. For our case, Kinnerton Company, brands communications become the reflection of their products and the image of the company⁵. The application of integrated marketing and communication has been considered most useful in obtaining a high number of customers since it observes then marketing communication and provide the sustainable competitive products. Kinnerton Company has used more than 75% to brand their products globally. The achievement has enabled the company to penetrate the overseas market and reaching to many consumers of more countries. The company has used the mass media, the internet and other above-the-line promotion. The company has regarded this as one of the strategic constituents of marketing communications. The organization believes that using IMC as the type of connection will enable to transform the fortunes of the Kinnerton, create new products and modernize the whole market³.

About Kinnerton Confectionary Company

Marketing segmentation refers to the process of separating customers or businesses which comprise of only existing and potential customers, keeping them into sub-groups divisions centered on some common features. Kinnerton Company has naturally viewed for shared characteristic such as common interests, similar lifestyles or even. The following sections include a comprehensive of the most [2]methods of customer market division⁷.

Kinnerton has demonstrated the demographic as the most general category criteria in market segmentation⁶. The company has extrapolated full description of the company and relate to general consumers’ needs and patterns of usage. The segmentation is done based on customer demographic factors such as age, income, the size of the family, the occupation of the consumers, social class, and ethnicity. The following data was collected in evaluating the demographic segmentation of Kinnerton Confectionary Company.

1. Age factor

As the ages increase the company realizes low purchase of their products. The large sales is experienced in consumers below the age of twenty.

1. Social class

Consumers who belong to the upper social class tend to buy with high rate. They purchase the products regularly⁸. Similarly, the trend of Kinnerton products consumption tends to decrease as the social class decrease. It means that those having actual economic clout purchase in bulk while those, not financial well-up buys in small quantities. The factors can also be determined by income influence, in that low-income earners buys the Kinnerton’s product in small quantities as well as not regularly and vice versa.

1. Occupation

Kinnerton Company also considers the professionals, self-employed, primary producers, home duties, unemployed and retired sections. It seems that the company has a big pie in home duties sections probably because the products is applicable when preparing breakfast. Therefore, many homes tend to purchase in bulk. Similarly, the purchasing power determines the behavior of the consumers. For Instance, the job seekers or unemployed people have low purchasing hence buys or ignore the products¹⁰.   

1. Family size

The family size or some dependent determines the consumer buying behavior. For instance, Kinnerton products, are highly bought by the family who has significant dependents. Those households with few number of dependent buy Kinnerton’s low in small quantities. Single and married people is another factor that influences the selling powers of the company¹¹.

Geographic segmentation provides the division of market according to topographical criteria. Kinnerton Company has analyzed the markets segmentation as widely as continents as well as closely as local markets. The geographical factors include countries, region, population density, town size, and climatic zone. Kinnerton has considered this segmentation to penetrate global marketing, where marketers chose whether to adapt their existing products and meet the needs of those geographic markets. The company usually, commence this segmentation widely indirectly marketing to know areas which have potential customers and partners¹². The following include secondary data analyses of geographic segmentation:                                                      

1. Population density

Integrated Marketing and Communication

The marketing segmentation differs with population distribution. For instance in rural areas, Kinnerton’s products only attract 54 % because many people use the products moderately due to factors such as other substitute’s products. Similarly, in the CBD the products get more buyers (82%) even if there are other alternative products because the population is large compared to rural areas or other places.  Generally, in urban areas, the products also got many buyers-79% hence sales increase in the company. Factors that have favored the products to have high sales include a large number of users of the chocolate and people regularly purchasing the products and the quality of the Kinnerton’s products being high than competitors products¹³.

1. Regions

Since the Kinnerton is a multinational company hence reaches many parts of the world, different regions shows how they consume the products differently. For instance, Asia 54%, Australia 58%, and Europe 67%, man[3]y people may decide to buy the products since it is only one product in the market than reaches to the market hence gaining more buyers than other regions. Similarly, in Africa, significantly many people may opt to not to buy the product because of its price. They may choose to go for low price similar product preceding the Kinnerton’s products. Other factors such as quality and availability factors may affect the company sales over competing similar products company. The following include the regional distribution of the Kinnerton’s products across the various regions.

Psychographic segmentation refers to the study that involves lifestyle, interest, and opinion of the consumers. The company has relied on this by extracting secondary data from other sources such as journals. The company has concluded that 54% of the collected opinion advocate for lowering the fat as well as the price, 47% of the respondent have advocated for small quantities packet which is affordable. On the other hand, Kinnerton has tabulated the repeat consumers and found that 61% of their customers buy their frequently. The company has identified that this percentage are loyal customers. 71% of the products are purchased every year in all places they have penetrated globally. 65% of their clients respond well towards their items. Others have low taste and preference towards their items (12%)¹⁵.

The segment includes dividing consumers into section as per their observed behavior. The behavioral variables include user status. The company evaluates that 68% of the first time user make regular repeat on the Kinnerton’s product depicting reason behind as the good taste and affordability. 12% of regular user feel uncomfortable with the similar brand hence finds other compliments from other companies.[4]

Marketing Segmentation and Strategies

Kinnerton Confectionary Company’ primary goal include kids and middle class. The company has segmented 45% of its products to target children aged between 5-14 years. Kinnerton has considered this age bracket as they are likely to prefer chocolate and milk more than any other confectionary product because it gives the best satisfaction. The confectionary also is considered attractive and healthier than others from competing companies. Furthermore, Kinnerton. Though all ages also consume the products, the adults prefer it, especially during celebration occasions. Nonetheless, the company also have differentiation target to cater for customers with special needs. For instance, in the case of families, the family block is available in bulk¹⁶.

A massive percentage of people who use chocolate enjoys a golden flavor that has been carefully designed to offer the needed satisfaction that no other chocolate organization has ever produced

Kinnerton has developed various products for different customer segments to enable clients’ part to have an affordable price across all consumer division. The strategy has allowed the company to maximize the profit and maintaining the level of reasonable price for every segment hence their products move faster.

Active media strategy attracts customers hence support the business.

The company has enabled to reach out many clients due to communication and media role. The company’s marketing strategy has effected by using advertisement and promotions. The media planning involve the use of promotions such as televisions and customer contact events[5].

The company has using traditional media such as publications (newspapers, magazines, and journals), radio and television, billboards, telephones, postal services among others to communicate to consumers about the Kinnerton’s products. More than 45% promotions and advertisements have used the traditional media¹⁷.

Kinnerton has accessed many customers through the web by creating social media contacts with them. The Internet is one of the integrated marketing plans for the company has enabled to execute the operation t of the enterprise. 76% of the promotions and ads especially, in the international market have relied on the internet.

Kinnerton has led an effective marketing strategy background to ensure the success of your planned communications and easy understanding to monitor the performance of the products in the market. The company also have to deliver price services on the digital platform, where all activities of the company published.

Kinnerton has matched the media programming align communication activity to coincide with peak potential consumer exposure times, such as the pattern of advertising timing. The following summarizes the media strategy

Kinnerton needs to make plans by ensuring a percentage of sales or returns and determine the budget allocation for operating the company[6]. The budget will able to shape the year’s sales o profit targets.  Kinnerton budget should balance the scorecard alongside monitoring the crucial success factors of a sales plan¹⁸. The budget should constitute the following

Kinnerton must ensure that this final stage is designed to effect the managers with constant feedback concerning the success of the promotional process. The method will, in turn, brings information required in subsequent promotional planning and development approach¹⁹.

Conclusion

The brand has a crucial role for and development of any company as well as in the competitive business world. Kinnerton needs to plan for an effective market plan that will outstand competitors. It is very clear that the company has used various assessment to find out the consumer behavior. The determinant gives a translation of the business sales volume. It provides the company with the gaps that need to be filled to meet the customers’ need. The customer satisfaction requires broad and extensive analysis by evaluating effective marketing segmentation, positioning strategy, creative strategy, and promotion strategy. Furthermore, the company needs to have a budget that will enable to run the business successfully.

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