Marketing Communications Plan for Quorn - Essay Example

MARKETING COMMUNICATIONS PLAN FOR QUORN By Marketing Communications Plan for Quorn Introduction The Quorn is a product mainly offered in the United Kingdom (UK) and Ireland and is a popular substitute for meat. The brand was initiated in 1985 by a company known as Marlow Foods. Most Quorn consumables compose mycoprotein, an ingredient extracted from a fungus (Fusarium venenatum). The ingredients make the product a highly nutritious healthy food, thus forming its main core benefit. The production of Quorn involves the mixing of dried fungus with egg albumen (ODonnell, Cigelnik, and Casper, 1998, pg. 58). The texture of the resulting mixture is then accustomed to replicate meat before beings pressed into different forms. A recent study on the quantity of carbon footprint of Quorn Frozen Mince in the UK indicated that Quorn contains 70% carbon footprint than beef. The product also contains low fat content compared ordinary meat. The Quorn brand values include increasing market share of the brand products, with 2014 half year results indicating 9% global sales increase (Sadler, 2014, pg. 89). Moreover, the Quorn non-vegetarian consumers also consider the product as a perfect substitute for meat because of its healthy benefits. As indicated earlier, Quorn is produced by a joint venture company involving Rank Hovis Mcdougall and ICI (Marlow Foods). Initially, the product was owned solely by Rank Hovis McDougall (RHM) but in 1990, RHM sold this business to ICI. (Ogorkiewicz, 1970, pg. 4) stated that Imperial Chemical Industries (ICI) was a British chemical company that was the largest manufacturing firm in Britain. The above mentioned companies have undergone fundamental changes and subsequent transfer of Quorn rights. In 2011, Exponent Private Equity and Intermediate Capital Group purchased Quorn for £205m. Marlow Foods offers Quorn’s range of products that include frozen cutlets, nuggets, entrees, "Quorn dogs” and patties (Wiebe, Marilyn, 2004, pg. 18). The company operates two facilities in the UK, and is a popular meat alternate in most of Europe and the US. Quorn is sold by natural foods retailers and various large-scale grocers. Online websites also offer the product such as My Supermarket that prices Quorn Beef Roast (400g) £3.50.For Italy, this plan will outline how the product will enter its market. SWOT Analysis Table 1: SWOT Analysis of Quorn Kotlers 3 Levels of a Product Level I: Core product Quorn core benefit and product is protein. Level II: Actual Product Quorn has an established brand of healthy protein and has excellent packaging. Level III: Augmented Product Quorn product is delivered on request to loyal customers. Figure 1: Kotler’s levels of a product Marlow Foods already sells Quorn to ten different countries worldwide. For reason, it dedicates its large chunks of money towards the marketing strategy. Simon Davidson, their spoke person, has reiterated that Marlow Foods invests in marketing because of the already present strong brand in the UK (Wiebe, 2002, pg. 430). Italy has a vast market and hence the company will shell out over four million sterling pounds for marketing functions such as advertising. Quorn in Italy is a new product but in an existing portfolio since there are substitute products in Italy such as the eggplant. This customer base will form the new target clientele. Target Market Quorn’s target market will comprise of vegetarians, those with diabetes and those who are experiencing overweight challenges. Non-vegetarians are also targeted, as the prices of Quorn would offer cheaper options to regular meat and meat products (Choi, DeSarbo, and Harker, 1990, pg. 180). It also provides an opportunity to those consumers in Italy who are dedicated to fitness, for instance gym-​going individuals. Fitness sis regarded as a current trend and by so the market segment comprising of young adults who want to maintain good physical appearance would constitute an excellent target. A recent study in Italy revealed that 36 percent of young people between the ages of 12 and 16 are overweight or obese. Many of these categories of people would want to avoid meat (McIlveen, Abraham, and Armstrong, 1999, pg. 34). New Product Positioning Product positioning is an important component of Quorn’s marketing plan. The process will aid Marlow Foods determine how best communicate Quorn’s features to their target customers based on their customer needs. (Kaul, and Rao, 1995, pg. 297) suggested that effective product positioning enhances the marketing message. The market segment to target is the vegetarians. To gain a competitive advantage, Marlow Foods will formulate a product motto, underlining the health value of Quorn. This will ward off competitors and create an image on the minds of the target market that Quorn is not just an ordinary product. Quorn is unique, classy and healthy product. Moreover, there is a communication channel that will be used to relay messages to the target group. The channels include television advertisements that target young adults. Advertising will convey the differentiating characteristics of Quorn to the target market that will add value to the product. Integrated Marketing Communications Plan Objectives For Marlow Food to penetrate to a new market in Italy, there are fundamental aspects that it will consider. To convince potential customers in Italy will require heavy spending in public relations (PR). Public image and general perception is crucial in persuading new customers as well as retaining them (Urban, Hauser, and Urban, 1993, pg. 425). Italians are very sensitive in food and drinks so there is need for Marlow Foods to create a good first impression with this new product Quorn. In this regard, it’s equally important to define concisely clear marketing objectives that are to guide the marketing strategy of the company. The marketing communications plan objectives consist of; 1) To inform potential customers on the Quorn’s product entry 2) To trigger and increase sales revenue of Quorn in Italy through public relations 3) To persuade targeted customers that Quorn is the best alternative to meat in Italy to create a create large market share 4) To create a strong consumer preference and brand recognition Measuring Success of Objectives Evaluating the success of the objectives incorporates SMART table; (Specific, Measurable, Achievable, Relevant and Timed) Objective Specific Measurable Achievable Relevant Targeted and Timed 1. Inform Whether Quorn is now identifiable by the new market Yes Yes Targeted to vegetarians and those with diabetes. 4 months prior to launch 2. Public Relations Evaluating sales revenue Yes Yes Public relation period 3. Market share Percentage sales revenue over total market Yes Yes Healthy eating markets. 8 months before launch. 4. Customer preference Behaviour measures Yes Yes Vegetarians and non-vegetarians are observed months prior to launch Table 2: SMART analysis of marketing objectives Factors Affecting Marketing Communication Choice Marketing communication choice is of essence. There are factors which affect the above choice that are shown in the table below; Factor Relevance Result for marketing communications Nature of the product Can be preserved for long to avoid expiring quickly Suitable for advertising and public relations Stage in product life cycle Introduction stage in Italy Potential consumers are to be informed before through advertising (Shimp, 2010, pg.17). Promotional budget Marlow Foods has an adequate budget since it is well established in UK Sufficient budget would enable Marlow Foods distribute Quorn efficiently Nature of the market Gym-going nation Health conscious individuals seeking to maintain fitness Vegetarians and non-vegetarians Large target market comprising of adults and young people. Public relations in public places such as Italian gyms Chosen Marketing Communication Method Quorn and products are best promoted through public relations. Marlow Foods allocates a substantial budget towards public relations events. Advertisement also plays crucial role in ensuring the product will succeed upon introduction to the Italian nation. Public Relations (PR) Public relations relates to management of dispersion of information involving individuals and organisations. The practice may include exposing individuals via public appearances using issues of public concern. The motive of public relation is to enlighten the society, potential customers and business stakeholders about the organisation (Grunig, 2013, pg. 12). Public relation has a universal function of maintaining a corporate image of a company. Activities under this communication tool include working with the media, acting as the company’s representative and attending media interviews. Creation of brand awareness is also a form of public relation which is aimed at maintaining customer loyalty. However, it is important for Marlow Foods to use this tool in Italy wisely. Quorn as a brand in 2013 had it sales rocket by 13 per cent and Quorn CEO Kevin Brennan highlights the crucial role PR will play in maintaining a continuous growth in sales revenue (Sadler, 2014, pg. 15). For Italy, PR is the marketing tool that will be adopted to inform customers of the new product. The famous athlete, Mo Farah will be an ambassador for Quorn in Italy to emphasize that Quorn contains healthy protein for non-vegetar­ians. Marlow Foods has offered him a multi-million deal to head the marketing campaign. In the first year in Italy, the company will offer him 200,000 sterling pounds to spearhead the marketing of Quorn and Quorn products. Quorn is a product new to Italy and hence information before and when launching the product will affect the strategy of the firm. Advertising Advertising refers to a type of a commercial mass communication intended to promote the sale of a merchandise or service(Prasad, 2009)mainly executed through the media. Advertising, particularly TV advertising, plays an essential role in organisations’ communication with its clients. (Fill, 2005, pg. 511) notes that advertisement is scrutinised together with consumers experience and remembering the brand. Brand awareness therefore can be achieved with the aid of what customers feel when they view an advertisement. Additionally, for efficient advertisement, one should consider the behaviour of the targets audience. Quorn entrance in Italy will be highly facilitated by advertisements. Quorn products are allocated 5million pounds a year for the sole purpose of advertising. In Italy, therefore, since it’s a new market, 10% of this budget will be used for advertising. This budgetary allocation will ensure broad scale awareness is generated for the new product in the market. Objectives of advertising will be determined before rolling out this tool. Since it has been already determined to create brand awareness and increase sales, the next step is to design the message. Caution must be observed in designing the message which should be brief, attractive, informative and distinctive to enhance Quorn’s positioning. The new advertising design would comprise of a short message of Quorn for non-vegetarians. Evaluation of the Plan The proposed plan shall be evaluated to determine if the plan is a success. Introducing an existing product to a new market requires extreme care in executing its marketing strategy, or else the product will decline (Jain, 1993, pg. 140). To evaluate whether Quorn will experience product growth upon its inception in Italy, there are main aspects to be measured. These aspects to be considered are brand recognition and popularity, product demand, market share and efficiency of marketing communication tools. The first method to be used in determining the market share is conducting market research analysis. This research will aim at determining whether consumers recognise the brand (Quorn) and whether consumers can recollect specific messages from the advertisements (Hoyer, and Brown, 1990, pg. 145). Fashionable advertisements are also noticeable in social media where young people express their emotions freely. Consequently, advertisements which have the greatest impact on clientele attract great charges from media houses. If media houses commence charging higher than before, then the communication tool is a success. Increase in sales revenue will be measured by financial analysis of income statements and comparing them with the company’s overall statements. Demand and supply forces of Quorn can also be assessed in the country. More vendors looking for licenses to deal with this merchandise will mean that the commodity has been a success. More demand for the product means that this marketing objective of increasing sales revenue has been obtained. Referrals from customers and corporate recommendations will also be monitored and the more the referrals the better the situation (Chen, and Xie, 2008, pg. 482). Public relations will be evaluated by analysing public opinions on healthy eating in Italy. Moreover, the effectiveness of the public relations can be assessed by monitoring the popularity of Marlow Foods in Italy. Sponsorship deals by both individual and corporate organization can indicate whether the public relation practices have been fruitful. If sportspeople look for sponsorship deals then the tool is effective and efficient. Brand loyalty can also be used to indicate success or failure of this plan. Brand loyalty can be measured by Marlow Foods introducing loyalty cards that enable customers earn points whenever they purchase Quorn. (Macdonald, and Sharp, 2000 pg. 10) stated that consistency in purchase by a customer will point out if the brand has gained loyalty. The campaign of the new product will be monitored consistently to achieve objective observations. This information will assist the management of Marlow Foods formulate better future marketing strategies and policies for benefit of the business. Summary Quorn is a highly healthy product that would satisfy the growing need of eating healthy amongst the Italians. If Marlow Foods can successfully adopt this plan in its marketing strategy then Quorn will succeed in Italy. The marketing communication tools used in form of advertising and public relation will undoubtedly create a strong brand. The marketing objectives can easily be evaluated using various market research techniques and should ascertain whether they have successfully attained their goals. References Ambler, T., & Styles, C., 1996. Brand development versus new product development: towards a process model of extension decisions. Marketing Intelligence & Planning, 14(7), 10-19. Chen, Y., & Xie, J., 2008. Online consumer review: Word-of-mouth as a new element of marketing communication mix. Management Science, 54(3), 477-491. 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