Uncle Tobys Market Audit Report - Case Study Example

Uncle Tobys Market Audit Report Name Institution Table of Content 1.0 The Australian Target Market…………………………………………………..…..3 1.1 Market Segmentation…………………………………………………….…3 1.2 Consumer Needs……………………………………………………………4 2.0 Marketing Mix………………………………………………………….…………..5 2.1 The Product…………………………………………………………….…...5 2.2 Promotion………………………………………………………….………..6 2.3 The Place……………………………………………………………………7 2.4 The Price…………………………………………………………………….8 3.0 Competitive Advantage……………………………………………………………..8 4.0 Assessment………………………………………………………………………….9 References…………………………………………………………………………..10 1.0 The Australian Target Market 1.1 Market Segmentation Cereals have been found to be profound in meeting nutritional needs of children as well as grown-ups. Uncle Tobys Companyhas been functioning on the slogan of improved diet for improved health. Oats are suitable for consumption for a wide range of meals. In terms of nutrition, the oats have been found to meet the needs of children effectively. Uncle Toby’s oats has a wide market in New South Wales and Western Australia. The large percentage of consumers of oats products from Uncle Toby are mainly households. The many products that have been processed from oats are mainly centered to the needs of the children (Shoebrige,1996). Uncle Toby’s oats are in many categories including the traditional oats, quick cups, quick sachets, etc. From the survey undertaken, Uncle Toby sells a large proportion of it its oats products to bakery owners. The bakery owners process these oats into other products mainly for porridge and other breakfast products. The bakeries attract the highest demand because of the current market for the various products that are processed from oats. The realization of the health risks associated with consumption of first-foods has transformed the priorities of most consumers (Shoebrige,1996). Many of them have turned to cereals as the perfect alternative. At the end of it, the final consumers of the oats products are the school-going children and adults in Australia. Apart from the oats products that are consumed by household, there are also grades of oats that are manufactured for animals. These are mainly premium feeds. Uncle Toby’s Company does not produce much of this as they focus more on those consumed by human beings. Most of the animals that consume premium feeds are mainly racehorses and racing camels. Nevertheless, Uncle Toby does not produce much of the oats as animal feeds. The company’s focus has been upon the consumption by households. Therefore, when assessing market segmentation strategies used by Uncle Toby’s Company, the focus is upon oats consumed by human beings. In this case, the major market for Uncle Toby’s oats has been found to be New South Wales and many parts of Western Australia. 1.2 The Needs of Consumers Having highlighted the consumption index, it is important to analyze the specific nutritional needs. Many consumers require high fiber content in their bodies. The current consumption trends have complicated many Australian health statuses. This is because most of them are reliant on first-foods which constitute high cholesterol content. High cholesterol content risks puts people at a greater risk of suffering high-blood pressure. Oats contains fibers that have the cholesterol re-absorption lowering properties. At the same time, wholegrain contains high natural vitamin content. In addition, the dietary fiber is essential in ensuring that the digestive system is kept healthy all through. The natural energy food products are in line with the current trends in Australia. Many people are actively involved in working and therefore require such nutrients to be able to be fully sustained. Therefore, the oats have been made to specifically meet the current needs of consumers in line with the new living trends. 2.0 Marketing Mix 2.1 The Product Uncle Toby produces a variety of oats products that are marketed in Australia as well as other countries. In analyzing the oats products, the following main categories are used. The first category of oats is the traditional oats. This product has been on the market for a very long period of time. It is tasty and hearty at the same time. It is rich in beta-glucan which lowers cholesterol reabsorption levels. It is made from 100% wholegrain oats. The second category is the Oats Quick. This product is very suitable especially using a microwave because it can be cooked into a hot creamy bowl of oats within 2.5 minutes. They also contain high content of beta-glucan and high fiber content. The third kind is the oats multigrain. This is made of three main grains which are: Uncle Toby’s oats, rye and wheat. It is mostly packed in 750g packets. It is approved Heart Foundation Tick. Another type of Uncle Toby’s oats is the Quick Sachets. This is most convenient for busy families. It is easy to prepare because one needs to add milk alone and heat in a microwave for 90 seconds. It has no artificial colors or flavors. The next type is the smooth and tasty oats. It contains 50% of kids’ daily wholegrain needs. There is also the weight wise oats. This product is aimed at those people intending to maintain their weight. It contains skim milk but does not have sugar. The last oats product is the Quick Cups. In overall the Uncle Toby’s oats are consumer products. The final consumer buys the product for his/her own consumption. This is true for all types of products in the range of oats. The same is applicable to other products being sold by the company. The features of the products that cuts across the various ranges of oats include high-fiber content, rich in beta-glucan, no additives and flavors, milk, 100% wholegrain, easy to prepare, etc. Having looked at the above features, it easy to point out that the CORE product is high-fiber content and beta-glucan. At the same time, the actual product is the range of oats that have been already discussed. The augmented product from most of Uncle Toby’s oats is the milk that is added in most of the oat products. In terms of the brand, the products have managed an effective brand. This is viewed from the manner in which the products are packaged and marketed (Kotler, 2001). The packaging is distinct and differentiated. The rectangular boxes that have been used to package these products have been uniquely done. It makes it easy to associate with edible products. Nevertheless, it is proper to highlight the fact that differentiation in terms of packaging is not that effective. This is because a number of other brands have also designed such packages. Looking at the trend of the products on the market since the company began shows that the oats are at maturity stage. The products have now been consumed almost anywhere possible in the world. 2.2 Promotion Uncle Toby’s used various channels to carry out promotions of its products. This has been one of the strengths that have made this company’s products firm on the market. One of the easiest means of communicating the products used by this company is through Social Media. The company has a Facebook page where the interaction with consumers and potential ones take place (FB page is https://www.facebook.com/officialuncletobys/app_410222365735107‎).Another channel being used by the company to promote its products is the use of renowned athletes to demonstrate the health benefits of using oats and other products. The company has used this platform to promote the value of sports and nutrition. Another one that is used is promotional vouchers sold in shopping malls. This is common with the back to school offers. Another media used is the Television Commercials. For instance, in 2013 there was a TV commercial advertising oats featuring music from Kinks. The TV commercial that used Kink’s All Day and All of the Night is one of the recent common adverts. The used communication options are quite effective. The TV commercial that used Kink’s music did well especially to those who love Kink’s music. It is easy to relate the music with the product being advertised. The same is true with the use of renowned sportsmen and women. Consumers easily get in touch with sports and the products being associated with (Shoebrige,1996). Consumers get the picture that consumption of oats has a health benefit and it provides strength to athletes. When it comes to social media, the number of consumers targeted is very big. Consumers all over the world can be reached through social media. All the selected approaches are in line with the fact that they are dealing with mature products. The only difference could be the fact that they have been differentiated. 2.3 The Place In the distribution of oats, the company uses a number of intermediaries to attain that objective. In most cases, the products move from the company to the wholesaler. From the wholesaler, the products are sold to retailers who sell to final consumers. The specific kind of distribution is intensive in nature. This is can be confirmed through the many outlets that distribute oats. This is suitable based on the price of the individual products. The low price makes it suitable to distribute these products via many distributors (Kotler, 1999). Considering these products are consumed by households on daily basis in Australia, it is easy for them to make daily purchases. So far, the company has been selling some of the products through online shops. The main challenging factor is the bulkiness of the products which may increase the overall costs because of possible delivery costs. Some of the retailers being usedinclude Woolworth, Aussie food shops, eBay, etc. This distribution strategy is appropriate because of the fact that the products have been known on the market and ought to be accessible everywhere. 2.4 The Price The company has been using competitive pricing strategy for marketing its products. The oats products range between $3 and $8 in most of the market outlets. The pricing strategy has been used in connection with the state of competition on the market in relation to oats (Kotler, 2001). In order to maintain the market share in this competitive market, the company has adopted a suitable pricing tactic for this. For instance, the company uses discounts on special occasions to attract instant demand for oats and other products. For instance, the back to school offers are mainly in form of discounts which literally promotes bulky purchases. This has been quite effective in the recent past for the company. While it may be quite difficult to conclude that the company’s price is in line with the product’s PLC stage, the company has done so to keep up with the current competition. 3.0 Competitive Advantage For the products of Uncle Toby’s Company to remain viable in the current market, there is a lot that has been done over time. The data gathered indicates that the oats products have evolved so much over time. The redesigning of the products has been undertaken based on the changing needs of customers (Shoebrige, 1996). At the same time, it is based on the determination of the company to remain upbeat in the main. For instance, some of the oats products have milk content which means that the consumer does not need to add milk during preparation. This is very critical considering most of the oats are prepared by adding some milk. Another consideration that has been made in order to meet the needs of customers is in relation to the time taken to prepare. The differentiation strategy chosen factored on the need to come up with some oats that take merely 90 seconds to be prepared. This basically is the product with the shortest preparation time on the market. This has been specifically targeted to those consumers who are too busy because of their occupation. 4.0 Assessment The company has invested in diverse ways to ensure that the products being sold meet the consumer needs. From the information gathered, the company has been utilizing market research from market data bureaus to understand the changing needs of consumers. Besides, the company has also been carrying out its own private research to identify what exactly consumers want (Shoebrige,1996). This is what has formed the basis for the differentiated strategies that the company has been using. The interaction forum like the Facebook is an avenue that the company has managed to utilize with the bid of gathering information of the specific needs of consumers. The number of products, especially oats that the company sells has been increasing tremendously as a means of ensuring the needs of current customers are met timely. References Baines, P., Fill, C. & Page, K. (2010). Marketing. Oxford: OUP Oxford. Kotler, P. (1999). Kotler on Marketing: How to Create, Win, and Dominate Markets. London: Free Press. Kotler, P. (2001). Kotler on Marketing. London: Free Press. Shoebrige, N. (1996). Slim pickings give Uncle Toby’s food for thought. BRW, 18(13), 70. Shoebrige, N. (1996). Uncle Tobys succeeds because all of its lines fit the core brand values. BRW, 18(48), 75. Read More