McCain Frozen Pizza Marketing Audit - Case Study Example

Marketing Audit Student’s Name: Instructor’s Name: Course Code: Date of Submission: Table of Contents Table of Contents 2 Introduction 3 1.0 The target market 4 Market segmentation 4 Demographic factors 4 Geographic factors 4 Psychographic factors 5 2.0 The marketing mix 5 2.1 The product 5 2.2 Product promotion 7 2.3 Place 8 2.4 The price 9 3.0 Competitive advantage 10 4.0 Success of the firm 11 Conclusion 11 Introduction The production that I chose to research on in this report is the McCain frozen pizza. This product is famous in Australia. This product is most liked and consumed in the Australian market. The product contains gluten, cereals and other ingredients which make it suitable in the Australian market (McCain frozen pizza 2013). The product is stored on ovens and becomes very hot when it is taken out of the oven. Sample McCain frozen pizza is indicated in the diagram below. The product was introduced in the Australian market in the year 1987 but it was not successful because the marketing strategy which was applied was not effective to make the products successful in the market. Competition was also high and this made it difficult for the product to penetrate into the market. The product is made using the modern technology which appeal to most customers and that is why the product has managed to attract many customers since its reintroduction in the market. The Australian market is so competitive and only the organizations with best marketing strategies can succeed. The main elements which have been taken into consideration and which have led to improved performance of the McCain frozen pizza include the product features, the price, place and the promotion (Ellwood 2002). These elements had led to the effective penetration of the product in the market. This report therefore will discuss the main marketing of McCain frozen pizza in the Australian market. 1.0 The target market McCain frozen pizza is a product which helps to increase energy in individuals. The Australian market is long known to consume foods which are rich in energy, especially for young growing people. In this regard, the target market for the product is the teenagers. However, the children and the parents can also consume some reasonable amounts of the product although the teenagers are the largest consumers of the product (Fill 2002). The target market is appropriate because the teenagers needs energy and nutrients for growth thus they will improve the consumption of the products. The product is also manufactured taking into consideration the Australian culture thus it does affect the social norms of the consumers. The target market will be segmented into various sections depending on their different needs. Market segmentation The target market will be segmented into various segments so that the different needs of the customers will be taken into consideration. The segmentation will be done according to demographic factors, geographic characteristics, psychographic characteristics and the behavioral characteristics of the customers (Fill 2002). Demographic factors Gender groups; the target market will be segmented according to the gander of the customers that is male and female market. The female consumers take about 60% of the target market while the male customers take 40% of the target market. In this regard, more marketing of the product will be done to female customers (Fill 2002). The age group market; since the target market of the product are the teenagers, the market will be segmented into different age groups like between the age of 12 and 16 and between the age of 16 and 20 years. This helps in marketing the products effectively in terms of volume and the prices of the product since each target market has different financial capacities (Philip 2011). Geographic factors The market will be segmented into urban and rural areas. The income for the urban market is higher than the rural market. This implies that there will be price discrimination. The distribution channels to the rural market are also long which implies that subsidiaries will be used (Philip 2011). The quantity supplied and volume of the product supplied to the rural market is lower than in the urban market due to low demand of the customers. Psychographic factors The lifestyle of the Australian people is favorable for the success of the product. About 75% of the households consume McCain frozen pizza (Fifield 1998). This implies that there is market for the product in the Australian market. Most of these customers are located in the urban center than in rural areas. Therefore the market will be segmented into urban and rural since their needs are different. Finally, the market will be segmented into high income earning and low income earning segments. The high income earners are the people working for the government and businesses (Fifield 1998). These segments help identify the needs of the customers like the volume of the product and effective packaging needs. 2.0 The marketing mix 2.1 The product The product am using in this research study is McCain frozen pizza. It is among the products which are consumed largely in the Australian market. I chose this product because it is among the best performing products in the Australian market (Proctor 2000). The can be classified as the product line. This is because the product is packed in different starting from 100g, 200g, 500g and even 1kg. The need for different sizes is to ensure the different needs of the customers in terms of their financial status are met. The product meets the needs of the customers because it is of different sizes and also the package is effective. The product itself is of good quality which satisfies the needs of the customers. The value of the product on the other hand helps to satisfy the needs of customers since they get good quality product which is equivalent to its value (Proctor 2000). The products look attractive to attract the attention of the customers as shown in the diagram below. McCain frozen pizza I a convenient product. This is because the product is bought frequently by the customers. I chose this category of products because it helps to reflect the current buying behavior of the customers since they don’t have to seek for the product. Convenient products help to understand customers better and the marketing elements (Proctor 2000). The important attributes which make the product effective to meet the needs of the customers is the quality, different sizes and the packaging system which is used to package the product. The core product of McCain frozen pizza are the attributes of the product which influence the customers to buy the product. These attributes include the quality and quantity of the product and the satisfaction the product can satisfy to a consumer. The actual product is translating the benefits of using the products into actual buying of the product by considering the benefits that can be achieved after using the product other than those of the competitors (Ziethmal & Bitner 2003). Finally, the augmented product is the afterward benefits which the customer can reap from using the product like after sale service and warranties. The McCain frozen pizza has an effective brand because it sounds unique from the brands of the competitors and also the products are equivalent to the brand. The brand name is justified by the quality of the product offered hence it is effective. The packaging of the product is done appropriately using tins. The tins used to package the product are of different sizes and different colors to satisfy the needs [of the customers. Like discussed above, the product is packaged in different sizes like, 100g, 200g and 500g to suit the different needs of the customers (Ziethmal & Bitner 2003). This packaging offers different marketing functions. For instance, it helps to attract the attention of the customers and also can be stored for a long time and this offers added advantage to the customers hence helps in marketing. Packaging is also done attractively to attract customers as indicated below. The McCain frozen pizza is in the growth stage of the product life cycle (Ziethmal & Bitner 2003). This is because the product has been in the market for more than six years and the customers have knowledge on the existence of the product. The profit reaped from the product is also high, implying that the product has already penetrated into the market hence growth stage of the product life cycle. 2.2 Product promotion McCain frozen pizza has an effective brand in the Australian market. Most of the teenagers have adequate knowledge about the product brand. The product is advertised regularly to influence the buying behavior of the customers. There are various methods which are used to market the product and they include impersonal and personal communication (Van 2002). The most common communication which is used to promote the product is the TV media. The TV media where the product is effectively promoted is the TV4ME in the programme called children view time. This is the programme which is most viewed by the teenagers. The product is also promoted in the internet since most of the teenagers use the internet especially the u tube. The online promotion has helped the product to reach many customers since it covers large geographical area. Due to globalization, many teenagers are fond of browsing to understand how other people live in the world and in the process they get access to the product advert. There are various messages which are passed across when promoting the product. The message involves the changes in the product like the packaging and the sizes of the product. Other information which is passed across when conducting the promotion is the corporate social responsibility. This is the message which indicates the sponsorships programmes by the company as well as pricing, improved product features and the place where the products can be found (Van 2002). This information is important and crucial when conducting the marketing as it makes the promotion complete. The different promotion is effective in different product life cycle stages. At the introduction stage, there is vigorous promotion to create awareness of the product in the market. At the growth stage, continues promotion will also be done to attract and retain customers and even at the maturity stage promotion is done as a defensive strategy to defend the product from being extinct and finally at the decline stage promotion is done to make sustainable profits (Randall 2001). Promotion is therefore important at every stage of the product life cycle. 2.3 Place The distribution strategy which is used to supply the product to the customers is direct distribution. The product is supplied directly to the retailers who then sale the product to the customers. The main retailers who supply the product to the customers in Australia include the Woolworth and Coles retailers. This is the only strategy which is used to distribute the product to the customers. The other strategy used is during promotions when the products are distributed directly to the customers without passing through the retailers (Randall 2001). This strategy has been chosen because it is the only way the product can reach the customers faster. In addition, the product does not long distribution channels hence the shorter channel is effective which increases the value of the product. The company also distributes the product online. The customers can access the advertisement online and make orders without visiting the retailers to buy the product. The order is then made online and distributed to the customer’s premises (Hatton 2000). This is the most valuable strategy which is preferred by most customers since it helps to distribute the product to the customers when the demand is urgent. This distribution strategy helps to satisfy the needs of the customers by ensuring that the product is made available to the customers to satisfy their demand. In addition, the direct distribution to retailers strategy is not costly which otherwise increase the price of the product (Hatton 2000). This helps to keep the price of the product affordable thus satisfying the customers in terms of price. This distribution strategy is effective in relation to the product life cycle. Since the product is at the growth stage, it is of no much significance to use longer channels of distribution since the market is limited. Wholesalers will be used when the product market will be expended to overseas market (Hatton 2000). In this regard therefore, the distribution strategy is appropriate to the stage of the product life cycle. 2.4 The price Since McCain frozen pizza is a convenient product, the price of the product should not be too high that cannot be afforded by many customers. In addition, there are some competitors who have come up with substitute products which are branded differently, like pizza frozen, there is the need to ensure the product remains competitive in the market. In this effect the pricing strategy applied in promoting the product is a competitive pricing strategy (Hoyer & MacInnis 2001). The product is charged slightly lower than those of the competitors hence leading to competitive advantage. In addition, the different sizes of the product are charged differently according to the size of the product. This higher the size the higher the price and lower price for lower volume of the product. Pricing strategy is the best way to attract and retain customers. It has enabled the product to have competitive advantage in the market. The price of the product is charged higher when the demand is high and low when the demand is low. Effective pricing helps to attract the attention of the customers thus the product has been able to satisfy the pricing need of the customers. The tactic which is used to price the products is the price discrimination (Hoyer & MacInnis 2001). The product is priced differently in different markets depending on the customer characteristics. Low income market segment pays less for the product and high income earners [like the civil servants pay higher for the product. In this regard, this pricing strategy is effective in the product life cycle (Hoyer & MacInnis 2001). The product is at growth stage and therefore there is a need to attract many customers. Competitive pricing and price discrimination will therefore help to improve satisfy the different needs of the customers in terms of pricing they want, hence improves the brand of the product. The table below indicates the prices of McCain frozen pizza t in both retail outlets Product size Price at Coles Price at Woolworth 100gram $3.15 $3.25 500gram $4.27 $4.45 200gram(tube container) $3.79 $3.89 600gram $5.78 $5.89 3.0 Competitive advantage The company has achieved the competitive advantage due to its strategies it applies which have not been exploited by the competitors. The competitive advantage of the company has been associated with effective application of the marketing mix which includes the product, price, place and the promotion (Kerin & Peterson 2013). To start with, the product has unique features which satisfy the needs of the customers better like quality of the product and the performance. This has helped to improve the loyalty of the customers in the product. In addition, pricing of the product is effective. The price of the product is relatively affordable by the customers. Market segmentation has also helped to increase efficiency in pricing since there is price discrimination in different markets (Kerin & Peterson 2013). In this effect, there is effective pricing at each market which does not exploit the customers depending on their income. On the other hand, there is an effective distribution of the product. The product is distributed through retailers thus the channel of distribution is not long which can otherwise increase the price of the products. This helps to satisfy the demand of the customers by ensuring the product is available to the customers when needed (Kerin & Peterson 2013). Finally, the promotion of the product is effective. It is promoted through TV4ME and through online. Many customers can access the TV and in the process, they will access the advertisement made. Since the target market of the product is young people who are fond of using the internet, they will access the advertisements online and can be influenced to buy the product (Kotler & Chernes 2012). 4.0 Success of the firm From this research, it can be concluded that the firm has succeeded in offering the products in the market by effectively applying the marketing mix. The firm has been and will be able to gain competitive advantage by focusing on the changes in the market and offer product attributes which will help to satisfy the needs of the customers better (Kotler & Chernes 2012). The success of the firm has been associated with the focus on the local market before going international. The firm focuses on the competitors and how they develop their products as a way of attracting more customers (Kotler & Chernes 2012). For instance, increasing the product attributes will help to improve the satisfaction of the customers. Despite the product being sold locally, the sales of the product have been increasing implying that the McCain frozen pizza is performing well in the market. In addition, the success of the firm depends on the motivation of the employees. When the employees are motivated, they will offer their best skills to improve the quality of the product and also offer better quality services like customer relationship which will help to improve the reputation of the organization. The employees can be motivated by offering training opportunities to improve their skills (McDonald 2002). Since the firm distributes the product to the supermarkets, the customers are able to access the product easily. This helps to satisfy the demand of the customers since the product is readily available and this improves the competitive advantage of the firm (McDonald 2002). Moreover, since the product is priced according to the prices of the competitors, the firm is likely to succeed because it will attract many customers due to effectiveness in pricing. Finally, the promotion of the product also contributes to the success of the firm. Frequent advertising helps to influence the customers to buy the product thus the firm improves its reputation, which in turn improves the performance of the firm leading to success. Conclusion McCain frozen pizza is a product which is performing well in the Australian market. The target market for the product is the young people who still need nutrients and energy to grow. The product has succeeded in the Australian market because of the effective application of the marketing mix. In the first place the strategy which is used to price the product is a competitive pricing strategy and there is also price discrimination which helps to satisfy the needs of the customers. The product is distributed using the retailers thus the product reaches the customers better while the promotion is done online and through TV. The product itself is of high quality, thus, it satisfies the need of the customers. The firm has succeeded because of the effective implementation of the marketing mix and this has been proved the increase in sales of the product. References Ellwood, I. (2002). The Essential Brand book. London: Kogan Page Limited. Fill, C. (2002). Marketing Communications, Contexts, strategies and applications. New York: Prentice Hall. Fifield, P. (1998). Marketing Strategy 2nd Edn. Butterworth Heinemann. Hatton, A. (2000). The Definitive Guide to Marketing Planning. FT/Prentice Hall, Hoyer, W.D. & MacInnis, D. J. (2001). Consumer Behavior, 2nd Edition, USA: Houghton Mifflin Company Kerin, A.R & Peterson, A.R. (2013). Strategic Marketing Problems, Cases and Comments. London: Pearson. Kotler, P. & Chernes, A. (2012). Strategic Marketing Management. New York: McGraw Hill. McDonald, M. 2002. Marketing Plans: How to Prepare Them, How to Use Them 5th Edn. Butterworth Heinemann. McCain frozen pizza. (2013). McCain frozen pizza. Retrieved on 23rd from http://shop.coles.com.au/online/national/mccain-pizza-base-frozen Philip, K. (2011). Contributions to Marketing Theory and Practice. Jossey-Bass: San Francisco. Proctor, T. (2000). Essentials of Marketing research. UK: Financial Times-Prentice Hall Randall, G. (2001). Principles of Marketing, 2nd edn. London: Thomson Learning. Van, A. B (2002). The Brand Management. Checklist, Kogan Page. Ziethmal, K. & Bitner, P. (2003). Services Marketing: integrating customer focus across the Firm. London: McGraw Hill. Read More