MKTG6002 Marketing Plan Strategy Oz Assignments

MKTG6002 Marketing Plan Strategy Oz Assignments

MKTG6002 Marketing Plan Strategy Oz Assignments

Introduction

Health consciousness amongst Australian consumers has risen sharply in the past, which has given rise to market for protein powder (Siro, Kapolna, Kápolna & Lugasi, 2008). The scope of current analysis designs a marketing plan for the Company Optimum Nutrition, Inc. (ON) for its product 100% Whey. The Company is a wholly owned subsidiary of Glanbia, which is a leading international nutritional and cheese product development brand. The report analyses the market segment, consumer segment and provides a marketing strategy for the product.

Background and Industry Analysis of the product

Protein powder consumption has risen significantly in the past few years in Australia (Gordon, 2012). The industry in Australia for protein powder is dominated by UPROTEIN 100% and Optimum Nutrition Whey gold Standard. With rising consumers in the current market scenario, there is an increasing influx of companies that are entering the market, especially global brands. The attractiveness of the market has attracted interests of quite a few global companies. There are yet no alternatives that are found for protein powders and gymnasium goers as well as some athletes prefer to start their day with consumption of the powder.

 Figure 1: Background to the Industry
Source: Author

The industry situation remains competitive with rise in online ecommerce businesses offering a host of choices. The companies in the industry are not able to charge exorbitant prices for the product due to presence of large number of competitors (Kitchen & Burgmann, 2010). The industry size is expected to expand further as the population is on rise in various Australian cities. 100% Whey of ON brand occupies considerable market size in the Australia with majority having preference for the product (Marin, Ruiz & Rubio, 2009). The brand having an established market share is often referred by trainers for consumption in the morning or during any other preferable time of the day.

Profiling of Key Marketing Segments

Profiling consumers for understanding the market segment comprises of an integral aspect prior to designing of marketing strategy. Having a detailed knowledge regarding customers will allow attending to the customer demands in a better manner (Oyserman, 2009). The following is a detailed target customer segment for the product undertaken, then analysis of consumer behaviour towards the product.

Target Consumer Market

The product market area being in Australia, the target customer segment in the country according to the following variables has been analysed.

Table 1: Customer Segmentation

Geographic

Demographic

Behavioral

Psychographic

  • Major Australian cities, such as Sydney, Melbourne, Victoria

  • Suburbs in Australia

  • Both male & female can consume

  • Age group 18 years of age till 55 years of age

  • Middle income group and high income group

  • Health Conscious customers

  • Gymnasium Goers

  • Athletes

  • Consumers who are gradually gaining health awareness

  • Obsess individuals keen on losing out weight

  • Students

  • Office Goers

  • Actors

  • Athletes

  • Body builders who want to showcase their bodies

In order to understand the effectiveness of the target market criteria for segmentation, factors of measurability, sustainability, accessibility, differentiable and actionable factors has to be taken into account as given below;

Measurable: There are several data collected for providing inputs related to consumption of protein powders in Australia. In rising demand of the same, the following statistics conducted by Tech Research reveals area wise demand for protein powder is set to increase further. The market segment for protein powder is estimated to worth $389 million according to news.com.au. There has been growth spurt of female customers in this market segment in the last five years with earlier market share being 5-10% which has currently risen to 40-50%

 

 Figure 2: Australia Protein Supplements Market by Region & Value

Source: TechResearch

1. Sustainable: The above data represents gradual growth in the market for protein powder with this segment being high profitable. Reports by news agencies reflect the industry to be growing at a rate of 13% annually. Australian Sports Nutrition, being a popular supplement chain has set up over 32 stores around the country.

2. Accessible: Health supplements and protein powders are available across the country at various retail and wholesale stores. There are online deliveries who are selling a wide range of protein powder. Most student and young office goers prefer to purchase their protein shake through online mediums.

3. Differentiable: The segment of customers can easily be differentiated from others in the market. This segment of consumers comprises of the health conscious and gymnasium goer types.

4. Actionable: There is a need for some food product that needs to be consumed prior to a workout sessions. Such drinks need to be available at affordable rates for the clearly defined target segment.

Consumer decision making for product

Analysis and understanding consumer decision-making process undertaken for the product will allow marketers of the company design specific strategies in meeting the same (Hawkins, Best, & Coney, 2009). Analysis of consumer decision-making process for food marketing allows step by step decision making for the product. The following is the consumer ethical decision-making criteria, which will be followed for the product

 Figure 3: Consumer Decision Making Process
Source: Author

The consumer decision process for consuming 100% Whey is conducted in a step by step manner. However, major drivers for consumer purchase decisions that marketers need to pay attention to comprise of the influences that triggers purchase of 100% Whey (Huang, Lurie & Mitra, 2009). Consumers are more likely to be influenced by their colleagues with whom they work out in the gym or by gym instructors and trainers. Social group will play a major role for driving consumer decision making towards the product. Psychological factors such as perception, learning and motivation will have a major role. As a consumer is more likely to drink a protein shakes that are consumed by body builders and fitness trainers (Ernst, Hoyer & Rübsaamen, 2010). Therefore, the marketers of the Company need to focus on the psychological and social influences to drive purchase decisions for the product.

Positioning Strategy

The Company Optimum need to position its brand 100% Whey in the market such that it is able to fulfill customer need and demands (Huang & Sarigöllü, 2014). The product will follow marketing strategies by modifying communication mix to be able to reach maximum possible consumers. The positioning strategy of the Company is aimed at;

Aim: To create an exclusive market for the product.

Goals for the positioning strategy are to;
Increase product sales
Bring about maximum consumer awareness in the health and fitness industry

There are present various protein powders in the market, with the current brand being known to provide the best possible value for money (Galician, 2013). The position of the brand in the market is depicted in the following figure

Figure 4: Position Map
Source: Author

Marketing Strategy for Optimum Nutrition 100% Whey

Defining the marketing mix for the product allows identifying specific factors of product, price, place and promotion that need to be designed for it (Gur?u, 2008). The brand’s product already has market wide acceptance, the following figure depicts in detailed marketing mix that has to be adopted for the product.

Figure 5: Marketing Mix for 100% Whey
Source: Author

1. Product: The product 100% whey of Optimum Nutrition brand already occupies second position in the market (Ivy, 2008). However, the Company need to consider the growing segment of females, therefore designing a product that matches the taste buds of female consumer can provide the Company substantial benefits. The Company can introduce newly flavored 100% whey drinks for its female consumers specifically.

The packaging can include attributes of feminism to easily attract female consumers. Packaging in pink colored packs or smaller drinkable bottles can provide significant advantages to the Company. It can include a guidance of consuming the drink or preparing flavored drinks, which can provide exclusivity to the product.

2. Price: Currently the product industry is highly competitive in nature; hence the Company has to follow competitive pricing for the same. The Company in order to create a niche for the product can package 100% whey into smaller bottles and price them at substantial low rates. This will allow the Company to gain market share and introduce products to non-users as well.

3. Place: The brand of the product is currently made available across majority, retailers, distributors, wholesalers and online platforms. The Company can make tie-up with medicinal shops and keep their products (Owen & Humphrey, 2009). Moreover, it can also make its product available at gymnasiums by making tie-ups with them. This would allow the Company undertakes push-sales for the product.

4. Promotion: The Company’s promotional strategy includes social media promotion and online promotions mainly (Castronovo & Huang, 2012). However, the Company needs to also consider making banners and posters and displaying them at gymnasiums or in sports club. Distribution of posters at major city points will increase visibility for the product and allow in communicating targeting customers (Chen & Xie, 2008.).

The Company can make use of feedback from online customers in order to be able to connect with new age customers. As higher percentage of customers now a days review online customer feedback while selecting their products. Especially in regards to protein powder, feedback can have a major role to play.

Conclusion

The target market segment for protein powder 100% whey can attend by attending to the marketing mix strategy as discussed. The brand in order to become more competitive in the market has to undertake extensive promotion strategies such that it is able to reach out to its customers. Moreover, the brand needs to orient itself towards female customers such that it can get attention of the emerging market in Australia.

References Lists

1. Australia Protein Supplements Market Size, Share, Analysis & Forecast 2023 | TechSci Research [WWW Document], n.d. URL https://www.techsciresearch.com/report/australia-protein-supplements-market/1702.html (accessed 10.2.18).
2. Castronovo, C. and Huang, L., 2012. Social media in an alternative marketing communication model. Journal of Marketing Development and Competitiveness6(1), pp.117-134. Retrieved on 20th September 2018, from http://www.na-businesspress.com/JMDC/castronovo_abstract.html
3. Chen, Y. and Xie, J., 2008. Online consumer review: Word-of-mouth as a new element of marketing communication mix. Management science54(3), pp.477-491. Retrieved on 28th September 2018, from https://pubsonline.informs.org/doi/abs/10.1287/mnsc.1070.0810
4. Ernst, H., Hoyer, W.D. and Rübsaamen, C., 2010. Sales, marketing, and research-and-development cooperation across new product development stages: implications for success. Journal of Marketing74(5), pp.80-92. Retrieved on 26th September 2018, from http://journals.ama.org/doi/abs/10.1509/jmkg.74.5.80
5. Galician, M.L., 2013. Handbook of product placement in the mass media: New strategies in marketing theory, practice, trends, and ethics. Routledge. Retrieved on 28th September 2018, from https://books.google.co.in/books?hl=en&lr=&id=60BkvlrtDuIC&oi=fnd&pg=PP2&dq=marketing+product&ots=1s_Yiy1NaT&sig=D822JL7MA8uGn7-rlSB6vmrj7Gg#v=onepage&q=marketing%20product&f=false
6. Gordon, R., 2012. Re-thinking and re-tooling the social marketing mix. Australasian Marketing Journal (AMJ)20(2), pp.122-126. Retrieved on 17th September 2018, from https://www.sciencedirect.com/science/article/abs/pii/S144135821100084X
7. Gur?u, C., 2008. Integrated online marketing communication: implementation and management. Journal of communication management12(2), pp.169-184. Retrieved on 23rd September 2018, from https://www.emeraldinsight.com/doi/abs/10.1108/13632540810881974
8. Hawkins, D., Best, R.J. and Coney, K.A., 2009. Consumer behavior. McGraw-Hill Publishing. Retrieved on 10th September 2018, from https://s3.amazonaws.com/academia.edu.documents/30395843/13907_1596_5200_1_syllabus.pdf?AWSAccessKeyId=AKIAIWOWYYGZ2Y53UL3A&Expires=1538449944&Signature=yEaI3JN6azarQlTMwXzMquLStRo%3D&response-content-disposition=inline%3B%20filename%3DConsumer_behavior.pdf
9. Huang, P., Lurie, N.H. and Mitra, S., 2009. Searching for experience on the web: an empirical examination of consumer behaviour for search and experience goods. Journal of marketing73(2), pp.55-69. Retrieved on 9th September 2018, from http://journals.ama.org/doi/abs/10.1509/jmkg.73.2.55
10. Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market outcome, brand equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132). Springer, New York, NY. Retrieved on 15th September 2018, from https://link.springer.com/chapter/10.1007/978-1-4939-0277-4_8
11. Ivy, J., 2008. A new higher education marketing mix: the 7Ps for MBA marketing. International Journal of educational management22(4), pp.288-299. Retrieved on 19th September 2018, from https://www.emeraldinsight.com/doi/abs/10.1108/09513540810875635
12. Kitchen, P.J. and Burgmann, I., 2010. Integrated marketing communication. Wiley international encyclopedia of marketing. Retrieved on 28th September 2018, from https://onlinelibrary.wiley.com/doi/abs/10.1002/9781444316568.wiem04001
13. Marin, L., Ruiz, S. and Rubio, A., 2009. The role of identity salience in the effects of corporate social responsibility on consumer behaviour. Journal of business ethics84(1), pp.65-78. Retrieved on 8th September 2018, from https://link.springer.com/article/10.1007/s10551-008-9673-8
14. Owen, R. and Humphrey, P., 2009. The structure of online marketing communication channels. Journal of Management and Marketing Research2, p.1. Retrieved on 29th September 2018, from https://www.halklailiskiler.com/pdf/The-structure-of-online-marketing-communication-channels_1306308797.pdf
15. Oyserman, D., 2009. Identity-based motivation: Implications for action-readiness, procedural-readiness, and consumer behaviourJournal of Consumer Psychology19(3), pp.250-260. Retrieved on 12th September 2018, from https://www.sciencedirect.com/science/article/pii/S1057740809000746
16. Protein powders and supplements: Why Australian women are spending millions | news.com.au — Australia’s #1 news site, n.d.
17. Siro, I., Kapolna, E., Kápolna, B. and Lugasi, A., 2008. Functional food. Product development, marketing and consumer acceptance—A review. Appetite51(3), pp.456-467. Retrieved on 28th September 2018, from https://www.sciencedirect.com/science/article/pii/S0195666308004923.