MKG721 | Marketing Plan of Arnott
Answer:
Introduction
Food markets typically involve the generalized marketing strategies and approaches, which are implemented in the marketing of other types of products and services. In the domain of food marketing, factors such as branding, targeting, market entry and consumer research are essentially relevant (Scott 2015). The following report evaluates the marketing segmentation of Arnott’s Ltd and further develops a marketing strategy for Virgin Espresso Flavoured Biscuits, a product of Arnott’s Ltd in Australia.
Discussion
Brief background to Arnott’s Ltd and Virgin Espresso Flavoured Biscuits
Arnott’s Ltd is identified as the leading Australian manufacturer of biscuits and cookies, which have been marketed under the trademark of Arnott’s. The company further commands over 70% of the Australian market and publicizes that its product range are present in over 95% of all Australian homes (Arnott's Australia 2018). The company has been renowned for produce wide range of biscuits ranging such company-selected categories as plain biscuits, creams, fruits and chocolates. Arnott’s sustains largely emphasized on the Australian market, whereby Arnott’s has further facilitated its parent Campbell Soup Company in order to attain a foothold in the Asia Pacific region (Arnott's Australia 2018). Arnott’s recently released a range of biscuits called Tim Tam Virgin Espresso Martini which is a rich, self-indulgent combination of real roasted espresso mixed with coffee as well as liqueur flavours and gently coated in Arnott’s prominent and most loved mix of semi-dark chocolate (Arnott's Australia 2018).
Alcohol Flavoured Tim Tam Biscuit
Source- (Arnott's Australia 2018)
Market Segmentation
Tim-tam recently has innovated almost 50 new flavours as well as packaging to contest the increasing competition in the chocolate biscuits sector of Australia. In current food industry, the demands and requirements of a unique product have attained extensive prominence for big brand in order to sustain compatibility (Arnott's Australia 2018). In accordance to the growing competitiveness, there can be witnessed a shift from highly homogenous to non-homogenous demands arising in the market which further creates an amplified variety of consumer’s choice and preferences to the product (Scott 2015).
Geographic- Tim-Tam’s new biscuit range primarily focus on major cities of Australia, as the Australians have persistently been exhibiting immense love and dedication towards Arnott’s goods (Francis et al. 2017).
Demographics- Virgin Espresso Flavoured Biscuits contains liqueur flavours, the consumer age group of this product ranges from 18-50 years both men and women. The income of this consumer base ranges from a monthly income of $3800.
Psychographics- Fuller 2016 state Arnott’s new product range of Virgin Espresso Flavoured Biscuits essentially targets consumer who do not hesitate in paying extra dollars in order to purchase this chocolate-flavoured biscuits and its high quality as well as mouth-watering flavours.
Behavioural- Arnott’s Ltd strategizes and accordingly manufactures its products in order to consume purchasers on a constant basis.
Positioning- Arnott’s Ltd has been highly committed to the health and food preferences of Australians. The company requires to essentially engaging into extensive customer dedication based on customer profile targeting individuals about imported brands (Arnott's Australia 2018).
Virgin Espresso Flavoured Biscuits
Source: (Arnott's Australia 2018)
Explaining Consumer Decision Making Process of Arnott’s Virgin Espresso Flavoured Biscuits
Problem Recognition- The Australians in recent times have been exhibited a sense of desire and liking for liqueur flavoured biscuits.
Information Search-The Company has been making critical market investigation in high schools, universities and social media research in order to seek the preferences of customers and love for such liqueur flavoured biscuits (Jacobsen et al. 2014).
Evaluation of Alternatives- Arnott’s Ltd must consider the preference and value Australians hold for chocolates and cookies. The Company receives strong competition from Kraft in all the markets where Arnott’s Ltd has its existence (Francis et al. 2017). Thus, it must consider the quality of its ingredients while creating new flavours to curtail its competition with local manufacturers.
Purchase Decision- Arnott’s Ltd with its new product range must change the notion of its buyers that liqueur flavours cannot only be mixed in chocolates but also in biscuits, which Australians can have on a daily basis (Jacobsen et al. 2014).
Post Purchase Results- De Pelsmaeker et al. (2015) reveal that Virgin Espresso Flavoured Biscuits must efficiently provide a satisfying feeling in the minds of the consumers after having the biscuit and about the appropriate choice, they have made. Thus, Arnott’s Ltd should primarily focus on the exceptional flavour they have crafted for its buyers.
Brand Positioning Arnott’s New Product range
Arnott’s Ltd has implemented communication objectives to connect to its brand positioning strategies and plans to successfully encompass vital information from the 4Ps of marketing mix specifically brand promotion. The company while launching Virgin Espresso Flavoured Biscuits in the Australian food market has set certain communication objectives for Tim-Tam in order to magnetize wide range of customers who have not been exhibiting dedication towards the brand (Eelen, Verlegh and Van den Bergh 2015).
Brand Attitude- This objective focused on creating perception and further influencing consumer opinions and preferences on product value, excellence and loyalty. The company’s communication strategy have created certain perception about Tim-Tam’s flavoured biscuit range as being highly inimitable with high quality and a highly loyal brand for biscuit as well as chocolate lovers (Tyagi et al. 2015).
Brand Awareness-The Company has established a strong level of recognition for its newly launched products. This is because Arnott’s Ltd has already built substantial reputation for all of its product range (Raheem, Vishnu and Ahmed 2014). However, without proper awareness building, it would have been immensely challenging Arnott’s Ltd to distinguish its products within such broad range.
Brand purchasing intention- The price set for Virgin Espresso Flavoured Biscuits has been set higher than the ordinary range because of its exceptional flavoured range and unique ingredients, which are used in this newly launched item (Huang and Sarigöllü 2014).
Marketing Mix of Arnott’s Ltd
Arnott’s Ltd produced Tim-Tam product range has been efficiently marketed. This range has attained substantial position in consumers’ minds because of its immense reputation in the Australian food retail market.
Product- Malik and Sudhakar (2014) reveal that Tim-Tam product line offers diverse package designs as well as net weight starting from 150g to 250 grams. It further offers broad range of calories level. The company since has been crafting various flavours in order to satisfy its diverse tastes and food preferences of flavoured biscuit lovers such as classic chocolate, coconut cream and liqueur flavours. The key is that while sustaining distinctiveness and individuality Arnott’s have been significantly innovating new products (Eelen, Verlegh and Van den Bergh 2015).
Price- Arnott’s range of Tim-Tam line as a product range has efficiently administered a significant market position on top of the higher price set. The company is in a relatively strong position in comparison to its local rivals and because of its powerful buyer section (Raheem, Vishnu and Ahmed 2014). The pricing power of Arnott’s Ltd can be demonstrated by the ‘price war’ between Tim Tam product range and the supermarket vital player Coles in recent times. Hanssens et al. (2014) reveal that in 2018, Arnott’s stipulated the rise of some of its biscuits and cookies range with the launch of Tim Tam flavoured products by almost 25%. As Coles has disapproved this business proposal, the price war initiated by Arnott’s Ltd decided to cut the supply with Coles. Furthermore, it is important to note that standing over a week, when stock level was immensely low, Coles was enforced to accept the increased price by 3% to over 9.5% (Huang and Sarigöllü 2014). Such a situation, revealed the marketing power of Arnott and thereafter its unique flavoured product of Virgin Espresso biscuits that has been recently launched and attained significant recognition within a short duration. Author has revealed that this newly launched biscuits have the potential to gain its price power because of the company’s strong brand loyalty and extensive market positioning in the minds of Australian consumers (Malik and Sudhakar 2014). Such potential is also being possible as Arnott’s supplies its wide-ranging products to various distribution channels namely Woolworths and SuperIGA (Eelen, Verlegh and Van den Bergh 2015).
Place- Arnott, being the largest food producer in Asia Pacific region has proved itself as a thriving company in successfully restructuring its distribution strategy (Arnott's Australia 2018). In early 21st century, the distribution strategy of Arnott primarily lied on delivering from manufacturing factories, workshops to several small supply agencies and further transports them to retail accounts (Scott 2015). However, in the later phase the change in its distribution strategy relied on proper alignment as well as storage system and further involved establishing advanced technologies in order to avoid unconstructive impacts of other factors such as production (Francis et al. 2017). Furthermore, Arnott to employ the new business strategy collaborated with trade associates such as Dixon in constructing news storehouse and restructured its product range and strategies in supervising, arranging as well as storing the products. Zhu et al. (2014) indicate that new distribution strategy is identified as a significant part of Arnott’s innovation to sustain its position among its competitors. However, careful assessment and planning with expert associates and distributors must be long ahead of implementation (Spinelli et al. 2014).
Promotion- The largest food business enterprise of Asia Pacific region has reached multilevel of business strategies including production-oriented, social-oriented as well as sustainability marketing. Author stated that Arnott’s has used promotional mix for Tim-Tam biscuit product line that is based on strong relationship with retailers (Fuller 2016). Such an association has facilitated company to promote large and attractive spaces in giant supermarkets. Furthermore, Arnott’s Ltd efficiently executes occasional sales endorsement at supermarket shelves to maintain smooth communication with its consumers (Scott 2015).
At higher level, Hanssens et al. (2014) claim Arnott’s Ltd has considered the significance of sustainability marketing strategy. In the Corporate Social Responsibility of Arnott’s, the company has endorsed practices of social responsibility through sustainable participations and components. It further commits to sustainable palm oil by the use of cent percent segregated as well as specialized palm oil for backing the biscuits (Malik and Sudhakar 2014). Efficient traceability method has been essentially developed in order to follow sustainability in terms of deforestation. Arnott’s has received great exposure due to its collaboration with Fair Trade Australia and New Zealand in order to ensure justifiable deals for cultivators working in West Africa (Raheem, Vishnu and Ahmed 2014). In addition to this, Arnott’s has further implemented energy efficiency, packaging enhancement along with cage free egg programs for its recent produce.
Marketing Activities
Product Packaging
Arnott Ltd, being an Australian icon in the food industry wanted to reflect their history and pride on the new product in order to make the Australians feel for the company in the rebrand packaging (Malik and Sudhakar 2014). The recognised ‘parrot’ icon is featured in a highly distinct manner on the new packaging as well as master brand applications. The new product is crafted with vibrant red colour, which is synonymous with the company’s four generations in order to signify its historical reputation (Eelen, Verlegh and Van den Bergh 2015). The new packaging and branding of Virgin Espresso Flavoured Biscuits will help Arnott’s Ltd to not only significantly distinguish from all other liquor biscuit brands but also develop a competitive advantages position among the local rivals in the market.
Arnott’s has always been committed towards good dietary habits and consistent with established government and scientific criteria (Eelen, Verlegh and Van den Bergh 2015). Tim Tam’s Virgin Espresso Flavoured Biscuits is primarily marketed for consumers of over 18 years who are ardent lovers of liquor chocolates (Huang and Sarigöllü 2014). Thus the company introduced liquor based biscuits which the Australian biscuit and cookie lovers can have anywhere at their convenience.
Advertising in shopping malls
The company aimed to endorse their recent product in several leading shopping centres in
Australia where they can easily target their customer base and seek their preferences towards this newly launched product (Raheem, Vishnu and Ahmed 2014).
Use of premium offers
Arnott’s can use exclusive offers on the newly launched product in order to attract greater level of customers who find it hesitant to pay such exclusive amount for biscuit brand and typically choose local brands (Huang and Sarigöllü 2014).
Conclusion
Therefore, from the above discussion it can be concluded that the potential sales increase opportunity of Virgin Espresso Flavoured Biscuits in the Australian food market can only be attained through significant incorporation of marketing mix. The paper has comprehensively evaluated the brand positioning and marketing activities of the company in order to acquire a better understanding of future sales growth of newly launched product.
References
Arnott's Australia 2018. About Arnott's | Arnott's Australia. [online] Arnott's Australia. Available at: https://www.arnotts.com.au/about-arnotts/ [Accessed 29 Sep. 2018].
Arnott's Australia 2018. Inside my Tim Tam | Arnott's Australia. [online] Arnott's Australia. Available at: https://www.arnotts.com.au/our-food/inside-my-tim-tam/ [Accessed 29 Sep. 2018].
Arnott's Australia 2018. Tim Tam | Arnott's Australia. [online] Arnott's Australia. Available at: https://www.arnotts.com.au/products/tim-tam/ [Accessed 29 Sep. 2018].
De Pelsmaeker, S., Gellynck, X., Delbaere, C., Declercq, N. and Dewettinck, K., 2015. Consumer-driven product development and improvement combined with sensory analysis: A case-study for European filled chocolates. Food quality and preference, 41, pp.20-29.
Eelen, J., Verlegh, P. and Van den Bergh, B., 2015. Exploring the effectiveness of the label “NEW” in product packaging and advertising. ACR North American Advances.
Francis, H.M., Stevenson, R.J., Oaten, M.J., Mahmut, M.K. and Yeomans, M.R., 2017. The immediate and delayed effects of TV: impacts of gender and processed-food intake history. Frontiers in psychology, 8, p.1616.
Fuller, G.W., 2016. New food product development: from concept to marketplace. CRC Press.
Hanssens, D.M., Pauwels, K.H., Srinivasan, S., Vanhuele, M. and Yildirim, G., 2014. Consumer attitude metrics for guiding marketing mix decisions. Marketing Science, 33(4), pp.534-550.
Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market outcome, brand equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132). Springer, New York, NY.
Jacobsen, L.F., Grunert, K.G., Søndergaard, H.A., Steenbekkers, B., Dekker, M. and Lähteenmäki, L., 2014. Improving internal communication between marketing and technology functions for successful new food product development. Trends in food science & technology, 37(2), pp.106-114.
Malik, A. and Sudhakar, B.D., 2014. Brand positioning through celebrity endorsement-A review contribution to brand literature. International Review of Management and Marketing, 4(4), pp.259-275.
Raheem, A.R., Vishnu, P. and Ahmed, A.M., 2014. Impact of product packaging on consumer’s buying behavior. European journal of scientific research, 122(2), pp.125-134.
Scott, D.M., 2015. The new rules of marketing and PR: How to use social media, online video, mobile applications, blogs, news releases, and viral marketing to reach buyers directly. John Wiley & Sons.
Spinelli, S., Masi, C., Dinnella, C., Zoboli, G.P. and Monteleone, E., 2014. How does it make you feel? A new approach to measuring emotions in food product experience. Food Quality and Preference, 37, pp.109-122.
Tyagi, S., Choudhary, A., Cai, X. and Yang, K., 2015. Value stream mapping to reduce the lead-time of a product development process. International Journal of Production Economics, 160, pp.202-212.
Zhu, Z., Tam, T.K., Sun, F., You, C. and Zhang, Y.H.P., 2014. A high-energy-density sugar biobattery based on a synthetic enzymatic pathway. Nature communications, 5, p.3026.
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