Mktg1100 Marketing Management : Segmentation Assessment Answers

In this assessment, working from the materials you developed in Assessment 1, you will be required to individually construct a one-year marketing plan, that will provide growth for your brand within the Australian market.

The assessment requires you to undertake consumer segmentation, targeting and positioning; determine appropriate marketing objectives, develop appropriate brand strategies and corresponding marketing tactics that will deliver the set objectives.

The plan must show your ability to develop an integrated marketing plan that will be relevant to the target consumer, realistic and meet the brand objectives and projections.

The work must demonstrate multiple management skills at the postgraduate level in the areas of business acumen, such as applying correct report writing and referencing skills, selection of appropriate models for application in the assessment task. Further, it must respond to the analysis undertaken from Assessment 1, along with the ability to synthesise information obtained from multiple sources, and apply critical thinking to arrive at a well-supported plan for the brand. 

Components of the assessment

Below is an outline of the sections that you must report on in your submission.

Section 1: Segmentation and brand strategy

1. Consumer Segmentation

Construct a segmentation model and shows a 6 to 8 consumer segments. The model must show your ability to understand the theory of segmentation (meeting all five criteria of segmentation). The segmentation must be founded on both primary and secondary research.

2. Primary and secondary target market

Construct and supply a persona and consumer journey map for both the primary and secondary target market.

3.Positioning / perceptual map

Construct a positioning map that show the points of parity and points of difference for your brand in the category.

4. Brand strategy

You are required to develop a clear strategy, applying one model discussed earlier in the semester. Selection must be appropriate to the situation of your brand in the market (such as leader, challenger, follower, or dog, star etc) and analysis must lead to building competitive advantage. This strategy will need to be delivered upon in the other sections of the plan.

Section 2: Objectives

5. Marketing Objectives

Based on the analysis in Assessment 1, determine two appropriate objectives to achieve growth over the 12 month period (July 2018 to June 2019)

Section 3: Marketing program (note: bulk of the document)

Through the work completed in Assessment 1, construct a plan for product mix management. Use various activities that have been undertaken throughout the course to evaluate the gaps in the market, or product improvement opportunities etc that are in line with the strategies identified in Section 1 Brand strategy. Undertake a suitable pricing review and set the pricing architecture for the brand. Review the distribution strategy being applied currently and determine the marketing channel roles and make a recommendation to adjust accordingly. Note: you MUST address and adjust product, price and marketing channel.

7. Integrated marketing communication plan

Develop an appropriate integrated marketing communication plan that addresses:

• Advertising (traditional and digital)
• Promotion
• Price Promotion (sales promotion using price)

The IMC plan must achieve increased customer acquisition and retention, specific marketing channel activities.

Note: this part must be VERY detailed. Information contained in the plan must be sufficient that an agency or another marketer/employee can pick the plan up and know exactly why the activities was selected, what needs to be done and when it needs to be done.

Section 4: Scheduling, forecasting and control

8. Marketing Schedule & Budget

Illustrate each activity within a schedule that shows the cost of each activity, timing of when it is planned to take place. It is expected the schedule will be broken down by activity, by month, as well as show total costs and the costs for the year.

All assessments will have a maximum budget of $6m for the year (this amount excludes all agency and production costs).

9. Forecasting

Show how the planned activities will contribute to the gap between the current reported sales and the sales required if the objectives are to be achieved. This should be as a spreadsheet and is very detailed.

10. Control

Construct a matrix that show how the plan will be monitored throughout the year. Ensure the control area is appropriate for the marketing activities selected, and are checking against the objectives. Make a brief recommendation on what action could be done if the activity is not achieving its desired outcome at that check-in period. This should be quantified and linked to the marketing schedule, forecast and the objectives.

Answer

Introduction

The main aim of this task is to provide a brief overview about the marketing plan. It is the second part of the assignment. In first part, SWOT analysis, Pestle analysis and porter five forces analysis was done by the Smith Snack food Company. Smith’s crinkle cut chips product has been taken in the task which is one of the well known brands across the world. Here is the discussion about the marketing mix strategies of the firm. It explains that how the organization makes integrated communication plan to expand and flourish the business effectively. Apart from this, the company focuses on the target market to hit the competitors globally. Forecasting, monitoring and controlling have been explained in the task. Further detail of the task has been detailed below.

Smith’s snackfood company is a British Australian manufacturing company which is well known for its potato chips. It is owned by the American multinational company PepsiCo. The organization manufactures and sells various types of Snack foods. The organization was incorporated in 1920 in the United Kingdom. The main aim of the firm is to render unique services to the target audience. It will help to accomplish the desired objectives and targets (Smiths, 2018).

Section 1.Segmentation and brand strategy

Consumer segmentation

Segmentation plays a vital role to attract and retain the customers in the international market. According to the research findings, it can be stated that the Smith’s snack food company has ensured that the products and services are produced in an effective manner for the health conscious consumers in the global market. The company focuses on the tastes, preferences and choices of the consumers in order to increase the sales and revenue of the firm. It has been analyzed that segmentation is a process of dividing the entire market into the different segments to meet the long term goals and objectives (Forbes, Kahiya and Balderstone, 2016). The older people come in the main segment of the firm. This segment is highly encompassed of older people in the society that holds a significant share of the market. Along with this, middle and upper class people are also considered the main target market of the company in the competitive market. The firm has confirmed that product’s fat level is below 40%. To ensure convenience, the organization has several packs from which that a purchaser can choose. It has been noted that majority of impulse buyers chose the smaller packs as compared to the larger packs. It has been analyzed that kids are considered the primary consumers of snack chips. As such, the company has put various types of effective and unique strategies to attract and retain consumers in the global market. To satisfy the needs and requirements of the kids, the organization has always been producing the snacks in the marketplace. This has enabled the firm control a large share of this market. Smith’s crisp is one of the biggest brands of Smith’s snackfood company. The other brands include Twisties, and Doritos that help in increasing the revenue of the firm (Duarte, Raposo and Ferraz, 2013).

Along with this, segmentation is done by the company on the basis of geographic, demographic, behavioral and psychographic areas. In demographic basis, Smith’s snackfood company focuses on the weather, and climate of the country to attract target market across the world. It will help to increase and enhance the sale of Smith's Crinkle Cut chips in the global market. Along with this, demographic area also affects the growth and progress of the firm. In demographic areas, the company also focuses on the age, sex, occupation, relationship status, and religion to maximize the number of customers in the international market. Psychographic area includes personality, values and social class life. These factors also affect the selling process of the firm. The firm needs to identify and analyze these factors to overcome the competitors. Lastly, behavioral factors also affect the profitability of snack food Chips Company (Oakes and Smith, 2013).

                                               (Source: https://medium.com/think-with-startupflux/customer-segmentation-models-52ef7738823a)

The above mentioned customer segmentation model shows that how the Snack food Chips Company is dividing its market on the basis of geographic, psychographic, demographic and behavioral areas.

Primary and secondary market

The primary market of the company include middle class, upper class and kids who like to eat chips in various flavor at any price. This market also includes the grocery retailers who buy the company’s products to resale the products in the global market. The primary market helps in making effective decisions within the organization. It shall be noted that primary target market plays a remarkable role in the decision making process in the organization. When the company introduces new snacks and chips in the market, then a marketing research and survey is done by the firm to analyze and identify the tastes, preferences and choices of primary target audience. By considering the primary target market, Snackfood Chips Company has been able to make a dynamic image in the minds of the customers. The secondary market include older people who buy the snackfood Chips in the marketplace (Groza and Ragland, 2015).

The above mentioned diagram indicates that primary target market plays a significant role to sell the snackfood chips products in the market. The diagram shows that primary market covers 55% area of the entire market and rest of market covered by the secondary market.

Positioning/perceptual map

After considering the needs and requirements of the consumers, level of involvement of primary market and competition, an effective and dynamic positioning map is created for Smith’s Snackfood Company (Bamiatzi and Kirchmaier, 2014). By this positioning map, the company attempts to show the thoughts, ideas and perception of its customers in the global market. The positioning map for Smith’s Snackfood Company has been elaborated below.                                                                        

The positioning map of Smith’s snackfood company shows that the company is making unique and effective decisions regarding the products that have been offered by the firm. This positioning map also helps in identifying and analyzing the prices of the products. The company also focuses on the kids and upper class people to maximize the outcomes and returns in the international market. Also, it will help to overcome the competitors (Gupta and Jaiswal, 2013).

Brand strategy

A brand strategy is a plan made in advanced with the intent to enhance and increase a company’s brand visibility in the consumer marketplace. By using this strategy, the company has been able to increase and enhance the brand equity and consumers trust. Brand strategy is initiated by Smith’s snackfood Company to create a strong and attract image in the global market. In brand strategy, firstly the company determines its long term objectives and goals in the competitive market. No company can survive and grow its business without setting effective goals and objectives (Weinstein, 2013). Goals and objectives provide a right and effective platform to the company for attaining long term mission and vision. After setting the goals and objectives, Smith’s Snackfood Company analyzes and evaluates the choices, desires and tastes of the target audience. For this purpose, a comprehensive market research and survey is done by the firm. It analyzes and identifies the primary and secondary market to gain competitive advantages globally. After analyzing the needs and requirements of the consumers, the firm identifies and measures the barriers and issues that are existed in the market. These barriers and obstacles are also known as market conditions and they can keep the company’s products and services from being successful. Branding strategy helps in identifying and measuring the target audience that helps to determine the progress of the firm (Kahiya, Forbes and Balderstone, 2016). Besides this, the company uses effective and attractive packaging strategy to attract the smith's Crinkle Cut chips products in the international market. In addition, promotions and advertisement are done by the firm under the branding strategy. The company cannot attract the maximum of customers without using promotional and advertisement strategy. Packaging strategy helps in differentiating the products of the firm from the competitors. Branding strategy is important for leaders, top management and employees within the organization. To make successful and effective image in the market, Smith’s Snackfood Company focuses and measure the actions, plans and procedures of the competitors. It will also help to strive with rivalries in the marketplace. In this way, it has been noted that the company uses unique and attractive branding strategy to make a strong financial position in the global market (Wismer, 2014). It shall be noted that Smith’s snackfood company uses unique and effective branding strategy such as Ansoff matrix strategy. It is one of the biggest and attractive branding strategies. It includes product development, market penetration, diversification and market development.

Market development: It is one of the biggest stages of Ansoff matrix for the firm. With using market penetration, the company has been able to capture the whole market in the global world.

Product development: In this strategy, Smith’s snack food Company tries to create new products and services targeted at its existing market to attain growth and success.

Market development: By using this strategy, the firm tries to expand and explore its business activities and operations after focusing on the different markets.

Diversification: It is one of the effective and unique strategies of the firm. The organization tries to grow and explore its market share by introducing and offering new products in the marketplace. It is most risky and challenging strategy because both the market and product development is required.

Branding strategy for Smith’s Snack food Company

                                                                                                                              Section 2.Objectives

Smith’s Snackfood is one of the biggest and leading brands in the world who offers various types of chips to the consumers in the international market. In today’s era, the company is the leading player of savoury snacks with a value of 25% in 2017. The organization offers crinkle cut potato chips in various features and flavors. After analyzing the assessment 1, two appropriate objectives to attain growth over the 12 months period have been detailed below.

• To increase in sales and revenue by 10% till June 2019. It is one of the foremost objectives for Smith’s Snackfood Company.
• Secondary, the organization wants to become a global player in snack food industry. In this way, the firm can achieve its long term mission and vision by minimizing the cost of the firm (Zikmund et al, 2017).

• To increase and enhance the market share by 10% till June 2019.
• To attain financial sustainability in the competitive snack food industry in the country.

The marketing program plays a significant role in each and every company to retain maximum number of clients in the market. Smith’s snackfood company uses marketing mix to overcome and retain the competitors globally. The product development, pricing and distribution plan have been stated below (Confos and Davis, 2016).

Product development: One of the significant strategies that used by the firm is product development. It shall be noted that Smith’s snackfood company focuses on the quality and features of the crinkle cut chips products to enhance and attract the kids in the global market (Smith and Zook, 2011). Under this strategy, the firm produces innovative products for increasing and enhancing the selling activities of the company. The smith’s crinkle chips is one of the attractive brands of the firm. The other products include Cheetos, Burger Rings, Cool pak popcorn, Frazzles and grain waves etc. To maximize the profitability and revenue, Smith’s snackfood company focuses the quality and aspects of the competitor’s products. It will help to distinguish its products from the rivalries. In today’s era, the firm is trying to introduce new and innovative products in the marketplace to become successful in the international market (Papadopoulos and Martín Martín, 2011).

Pricing strategy: The price of the products in Smith’s Snackfood Company is based on the quality and aspects of the products. It has been stated that the competitor’s products are less expensive as compared to Smith’s snackfood company. The company sets the higher prices of the products due to its unique features and quality (Lamb et al, 2011).  The customers can pay extra money due to get better quality of the snack food products. Sometimes, the company also provides discounts and offers to the customers to increase and enhance the purchasing power of the customers in the international market. The company makes effective and unique pricing decisions after considering the needs and wants of the consumers (Wheelen and Hunger, 2011).

Distribution/place strategy: The Company uses effective and valuable distribution channel to sell the crinkle cut chips across the world. It shall be noted that the company follow FMCG channel of distribution (Kotler, 2015). Effective and dynamic place are decided by the firm to increase the demand of the crinkle cut chips products in the market. The firm sells its products to retailers and distributors. The consumers can buy the products through distributors and retailers. The crinkle cut chips products are great in demand. With the help of crinkle chips products, the organization can easily move their other products and services in the market. Along with this, distributors get discounts on the attractive and stronger products, if they purchase some weaker products (Barquera et al, 2018).

The implementation plan for Smith’s snackfood company has been stated below.

Now it has been recommended that the company should focus on the product, price and distribution strategy in order to meet the long term requirements of the firm. Along with this, it should focus on the advertisement and packaging strategies to retain the consumers and to promote the smith crinkle cut chips products.

Integrated marketing communication plan

The company uses integrated marketing communication to maintain good relationship with customers in the market (Steenkamp, 2017). By using this plan, the company has been able to attain long term goals and objectives in the competitive market. Smith’s snackfood company maintains effective coordination and communication with customers by using integrated marketing communication plan.  The integrated marketing communication plan includes advertising, public relations, direct marketing, sales promotions and personal selling. Effective advertisement strategies are used by the company in integrated marketing communication plan. Furthermore, the employees of the firm make unique relationship with public to promote the products of the firm. The organization can use direct selling and promotional tools to enhance and increase the sale in the global market (Percy, 2014). The integrated communication plan for Smith’s snackfood Company has been detailed below.

Section 5.Sheduling, forecasting and control

Marketing scheduling and budget

Before initiating the marketing plan marketing scheduling is done by the firm. In this stage, the company fixes the time to perform tasks and duties effectively. Along with this, effective and appropriate budget is made by the company. Budget is made by the company after considering the all costs and expenses (Forbes, Kahiya and Balderstone, 2016). Scheduling also plays a vital role while making marketing plan for Smith crinkle cut Chips Company. Under scheduling, documentation and other formalities are done by the firm to initiate the marketing plan.

Forecasting

Forecasting is done by the company to initiate the marketing plan effectively and efficiently. It will help to reduce and eliminate the future risks and challenges in the marketplace. Furthermore, the company can attain its long term mission and vision effectively (Belch et al, 2014). The company also uses spreadsheet to arrange the data effective and efficiently. It will help in calculation and keeping data separately.

Control

To maintain the control on the various activities, the organization focuses on the finance, marketing, customer’s choices and innovation. After making a plan, monitoring and controlling is done by the firm effectively (Smith and Zook, 2011). Now it is recommended that the firms should make effective budget to make marketing plan successful. Along with this, it should focus on the Ansoff matrix to capture and cover the entire market for launching the new and innovative snack food products in the global market. Effective marketing team shall be appointed by Smith Snack food Company to implement new marketing plan for Smith crinkle cut chips.

Conclusion

On the above mentioned analysis, it has been found that Smith’s snackfood is one of the leading companies in the world who is providing various types of snack foods to the customers. Marketing plan is made by the organization to beat the competitors. The above analysis shows that how the firm makes marketing plan after considering the choices and needs of the customers. The company uses marketing mix strategies and STP (segmentation, positioning and targeting) strategies to make unique and effective marketing plan. Lastly, forecasting and monitoring is done by the Corporation to gain competitive advantages. In this way, the company can initiate the marketing plan for attracting more consumers.