How Target Market Will Achieve Objectives - Essay Example

The Marketing Plan Table of Contents 0 Introduction 5 2.0 Objectives 6 2 Financial objectives 6 2.2. Marketing Objective 6 2.3 Rationale: 6 3.0 Marketing Strategy 7 3.1 Segmentation 7 3.2 Evaluating segment attractiveness 7 3.3 Target Market Selection 8 3.3.1 Target market and profile 8 3.3.2 Rationale for Target Market Selection and How Target Market Will Achieve Objectives 8 3.4 Value Proposition and Positioning Statement 9 3.4.2 Competitive advantage 9 3.4.3 Value proposition 9 3.4.4. Positioning statement 9 Marketing Mix Program and Strategies 10 4.0 Product Strategy 10 4.1 Core of benefits to the target market 10 4.2 Actual Product Layer 10 5.0 Pricing Strategy 11 5.1 Major Pricing Strategy/Approach 11 5.2. New Product Pricing Strategy (or product mix pricing) 11 5.3 Price Adjustment Strategy 11 5.4 Recommended Retail Price 12 5.4.1Rationale 12 6.0 Place Strategy 12 6.1 Distribution Strategy and level of market coverage 12 6.2 Types of distribution channel 12 6.3 Type/s and geographic location of outlets and Rationale 12 7.0 Promotional Strategy 13 7.1 Target Audience 13 7.2 Communication Objectives 13 7.3 Key Message to Target Market 13 7.4 Media Reach Objectives 13 7.5 Media Frequency Objective 14 7.6 Major Media Classes and Media Vehicles within Each Class 14 7.7 Media Scheduling 14 8.0 Action Plan 14 9.0 Control Plan 15 10.0 Conclusion 15 References 16 Bibliography 17 1.0 Introduction The essay is a plan that offers an overview of the biscuit market of Australia. However, it also presents a clear overview of the reputed organization of Australia, Arnott. Arnott is one of the popular Australian icons in the segment of food and beverages for more than 140 years. Due to which, the brand image and market share of the organization of Arnott enhanced to a significant extent as compared to many other rival players such as Kraft Foods Ltd, Goodman Fielder Ltd etc. The organization of Arnott experiences a reputed position in the industry of food and beverage due to its wide range of product lines such as Arnott’s Premier Melting Moments, Emporio Amond Snap, and Emporio Chocolate Temptation etc presenting a unique taste. However, in spite of strong foothold in numerous developing and developed countries, the competitiveness and market share is decreasing due to its locally utilised ingredients of Australia. Other than this, the profit margin and customer loyalty over the brand is decreasing due to extremely high price and intensive competitive rivalry among its rivals. In addition, to the presence of numerous substitute products like cookies by competitive brands such as Kraft Foods Ltd, Tim- Tams, Vita-Wheat, and Cruskits, the market value and reliability of the organization is declining day by day to a considerable extent. Due to these underlining causes, the portfolio and uniqueness of the organization of Arnott is reducing that hinders its total sale and profitability in long run. Furthermore, numerous less competitive local products are capturing the markets of Australia that hindered its loyalty and brand value as compared to other existing contenders in this age (Arnott, 2014). However, in order to amplify the competitive advantage and sustainability of the organization of Arnott, a marketing plan is developed with the help of a new product, Emporio Crispy. 2.0 Objectives 2.1 Financial objectives The financial objective of the organization of Arnott is to amplify its total sale by almost 5 percent of its previous sale by the launch of the new product, Emporio Crispy. Other than this, the profit margin of the organization of Arnott might get enhanced by a considerable extent as compared to its rival players. Only then, it might become successful in improving its dominance and position in the market (Grant, 2010, pp. 423-434). 2.2. Marketing Objective The marketing objective of the organization of Arnott is to amplify its loyalty and reliability in the market of Australia. Along with this, the launch of the Emporio Crispy might become successful in increasing its range of customers that may amplify the prosperity and profitability of the organization. However, in order to do so, the organization needs to offer high attention over the promotional campaigns or advertisements. Only then, the target customers might become aware about the features of the new products, Emporio Crispy of Arnott that may improve its total sale and market share among others. 2.3 Rationale: The rationale of the essay is to develop a marketing plan regarding the launch of a new product of Arnott, named, Emporio Crispy in the market of Australia in order to amplify its reputation and brand value among others. Other than this, this plan also highlights the segmentation, targeting, product strategy, pricing strategy, action plan, control plan etc in order to make the product, Emporio Crispy entirely successful in the market of Australia. 3.0 Marketing Strategy 3.1 Segmentation The new product of Emporio Crispy comprises of almonds, butter, caster sugar etc and so it might be highly preferred by the kids sections as well as the health conscious youth section of the society. This means, Emporio Crispy might be presented to the individual of all age-groups, with high life style and living standard. Only then, the position and brand image of the product, Emporio Crispy might get improved resulting in amplification of its brand value and portfolio in the market of Australia. Other than this, the product of Emporio Crispy might be preferred by the individual of varying age-groups due to relishing and crispy taste that presents a soothing feeling. After ending the entire day’s hard-work, a cup of tea or coffee with Emporio Crispy might stimulate the inner encouragement and motivation for work. This means Emporio Crispy is a source of refreshment of the minds of the individual (Gupta, 2011, pp. 524-534). 3.2 Evaluating segment attractiveness The attractiveness of the segment might be measured with the help of four factors such as measurability, accessibility, and sustainability and action ability. Almost 60 percent of the total population of all-groups would surely prefer the favour and taste of Emporio Crispy as compared to others. However, in order to reach the target segments of the product, extensive promotional campaigns need to be organised by the organization of Arnott. Only then, the level of awareness of the product, Emporio Crispy might get enhanced significantly thereby amplifying its prosperity and brand value. Due to which, the level of sustainability and profitability of the organization of Arnott might get enhanced that may amplify its total demand. However, it is extremely easy to target the current generation as they always prefer to consume products with changed tastes and ingredients (Johnson & et.al. 2011, pp. 656-676). 3.3 Target Market Selection 3.3.1 Target market and profile In order to amplify the image and loyalty of the organization, Arnott introduced a new product, Emporio Crispy. Emporio Crispy mainly targets the kids section as well as the youth section of the society of Australia with age group, 7 to 45 years. Moreover, it also mainly targets those customers, who prefer to change their taste and preferences very suddenly. The product mainly targets the high-profile customers or premium customers so as to develop a distinctive image for itself. Geographic: Country Climate Australia Seaside Demographic: Age Family life style 7- 45 years High Psychographic: Attitude and feelings cheerful and positive Behavioural: Benefits Tasty, healthy, refreshing etc. 3.3.2 Rationale for Target Market Selection and How Target Market Will Achieve Objectives The rationale of this target market selection is to create a strong foothold among the premium segment of the society. This might prove effective for the organization in amplifying its brand image and prosperity of the market of Australia as compared to its rival contenders such as Kraft Foods Ltd. Moreover, it might easily become successful in positioning itself as a premium brand that may amplify its reputation and sustainability (Cengagebrain, 2013). 3.4 Value Proposition and Positioning Statement 3.4.1 Perceptual map Crispy feeling Emporio Crispy (desired position) Delicious taste full of nuts Arnott’s current position High Quality/ healthy 3.4.2 Competitive advantage The competitive advantage of the organization is that, it targets a niche market or premium segment of the society, who is extremely conscious about their health and diets. 3.4.3 Value proposition The value proposition of the product, Emporio Crispy is to present a ‘crispy and cheerful feeling’ to its customers (Cengagebrain, 2013). 3.4.4. Positioning statement The current position of the organization of Arnott is declining due to the presence of numerous substitute products of rival player. Therefore, it introduced, Emporio Crispy in order to amplify its position and competitiveness in the market of Australia by fascinating the customers with the crispy feeling of nuts. Marketing Mix Program and Strategies 4.0 Product Strategy 4.1 Core of benefits to the target market The core benefits of the product, Emporio Crispy is that it presents a crispy and delicious feeling within the minds of the customers. Moreover, due to the presence of nuts, the minds of the target customers might become more sharper and the body, stronger. Due to which, it need to promoted with the slogan, ‘eat healthy and think better’. 4.2 Actual Product Layer Emporio Crispy is targeted to the health sensitive customers, desiring to attain a crispy and charming feeling. It comprises of huge amount of nuts, butter, and fresh cream so as to present a great taste to its customers. This might create a different felling about the products of the brand Arnott within the minds that may amplify their total sale. The above presented Emporio Crispy are created in a rounded design so that it might be engulfed in a single chance. Only then, its delightful taste might be attained and felt. Other than this, the packaging of Emporio Crispy is printed food packaging pouch that are extremely tear resistant, durable and perfect finishing and attracting the attention of the customers of varying age groups. One of the packaged packs of Emporio Crispy is presented below with a label: 5.0 Pricing Strategy 5.1 Major Pricing Strategy/Approach The organization of Arnott always tries to maintain premium pricing policy in order to create a distinctive image and reputation in the market among other rival brands. 5.2. New Product Pricing Strategy (or product mix pricing) The product pricing strategy of Emporio Crispy is competitive pricing for a pack of 10 biscuits in order to position the product among others. Moreover, competitive pricing might also prove effective for the Emporio Crispy to amplify its total sale and profitability in the market. 5.3 Price Adjustment Strategy The organization of Arnott is using competitive pricing in respect to premium pricing so as to enhance its range of customers of varying income groups and life styles. This is done at the initial stages in order to amplify its demand and total sale of the products in the market. 5.4 Recommended Retail Price The recommended retail price for a pack of 10 of the product of Emporio Crispy needs to be at-least 15 Australian Dollar (AUD). 5.4.1Rationale Such a recommended price is presented to a pack of 10 biscuits of Emporio Crispy in order to make it available for all. 6.0 Place Strategy 6.1 Distribution Strategy and level of market coverage The product of Emporio Crispy is presented through direct distribution channels, i.e. manufacturer to wholesaler, then to retailer and then to customers. Moreover, it needs to include intensive market coverage strategy so as to improve the availability of the products to all its customers. 6.2 Types of distribution channel The product of Emporio Crispy might be distributed through varied types of distribution channels such as direct and indirect distribution channels in order to improve its total sale and demand as compared to others (Drummond & Ensor, 2010, pp. 332-344). 6.3 Type/s and geographic location of outlets and Rationale The location of the outlets needs to be placed in the central regions of Australia so as to increase the demand of the product, Emporio Crispy as compared to others. Along with this, the product needs to be presented in all super markets, hyper as well as hypo markets of Australia. 7.0 Promotional Strategy 7.1 Target Audience The target audience of the product, Emporio Crispy is mainly the individual of age groups 7 to 45 years, so as to improve its total sale and reputation in the market o f Australia as compared to many other rival players. 7.2 Communication Objectives The communication objectives of the product of Emporio Crispy are to improve the total market share of the organization of Arnott. This might be possible only by offering high attention over advertising or promotion. The organization might promote the product with the slogan: “Eat Healthy and Think Better” in social networking sites, bill-boards, television channels, online sites etc so as to improve its level of awareness (Bradley, 2010, pp. 252-267). 7.3 Key Message to Target Market Sweet and Crunchy to present a pleasant feeling!!!!!!!!!! 7.4 Media Reach Objectives The objectives of media are to increase the range of customers by almost 80 percent towards the product, Emporio Crispy so as to improve the total sale. 7.5 Media Frequency Objective The aim of the media frequency is to reach the objectives of the organization to its customers as quickly as possible so as to accomplish it. This might be done by promoting advertising campaigns vigorously for 6 months (Beall, 2010, pp. 223-234). 7.6 Major Media Classes and Media Vehicles within Each Class The major media class is television and social media as it reaches maximum extent of the customers of all-groups in a very small period of time. 7.7 Media Scheduling The advertisement of the products, Emporio Crispy need to be provided within 9am to 12 pm all days the week so as to increase the awareness of the customers. 8.0 Action Plan Task When Who Budget Extensive promotion of the product Before the launch of the product By the organization $ 1 Development and hire of sales team Before the launch of the product Human resources $ 1 Sales training Before the launch Human resources $1 Launch of online sites (Armstrong & Kotler, 2010, pp. 123-134). Before the launch It department $1 9.0 Control Plan When is it to be measured When is it to be measured? How is it to be measured? Who is responsible? Sales budget monthly By profit and loss account CEO Market Share Yearly Sales report Marketing manager Sales volume monthly By profit and loss account Sales manager Profit quarterly Balance sheets Marketing manager 10.0 Conclusion Conclusively, it might be stated that in order to improve the market share and total sales of the organization of Arnott, new product development is extremely essential. Due to this regard, the launch of Emporio Crispy might prove extremely effective thereby amplifying its brand image and reputation in the market of Australia among many other rival players. Other than this, the development of the new product might also amplify the prosperity and brand value of the organization that may increase its dominance and position in the market in this age of competitiveness. However, to make the products of Emporio Crispy successful, extensive promotion is essential in order to increase the awareness of the customers. Only then, the demand of the product might increase resulting in amplification of its total profitability and revenues. References Arnott, 2014. About Arnott. [Online]Available at: http://www.arnott.com/ [Accessed on 14th May, 2014]. Armstrong, G. & Kotler, P. 2010. Marketing: An Introduction. Germany: JohnWiley & Sons Beall, A, E. 2010. Strategic Market Research: A Guide to Conducting Research to solve problems. Boston: Harvard Business School Press. Bradley, N. 2010. Marketing Research: Tools & Techniques. New York: McGraw-Hill. Cengagebrain, 2013. Marketing Research. [Online]Available at: https://www.cengagebrain.co.uk/content/kent03279_1844803279_02.01_chapter01.pdf [Accessed on 14th May, 2014]. Drummond, G. & Ensor, J. 2010. Introduction to Marketing Concepts. New York: Cengage Learning. Grant, R, M. 2010. Contemporary Strategy Analysis. London: Sage. Gupta, S, L. 2011. Marketing Research. New York: McGraw-Hill. Johnson, G. & et.al. 2011. Exploring Strategy: Text and Cases. (9th edn). London: Harlow Pearson Education Limited. P: 115. Bibliography Pride, W. M. & Ferrell, O. C. 2004. Marketing. London: Sage. Read More