Situation Analysis/Target Market Identification Report and Collage free essay sample

09/08/2011 SITUATION ANALYSIS/ TARGET MARKET IDENTIFICATION Curtin College Ms. Desiree Jones Trimester 2, 2011 Situation Analysis/ Target Market Identification SITUATION ANALYSIS/ TARGET MARKET IDENTIFICATION 1. 0 Situation Analysis/ Current marketing Mix 1. 1 Current Product A rnott? s Tiny Teddy is a brand of sweet biscuits which has children aged between 3 – 7 years old as a primary focus market (Ryan 2002). Each biscuit is small in size and formed as a tiny bear which kids find â€Å"cute†. The benefits of buying such a product are that it has no artificial colours, flavours or preservatives (Arnott? s 2009). Plus, it has been proved that in a recommended serve of 13 biscuits, there is only less than a teaspoon of fat and less than 2 teaspoon of sugar. Being a kid? s snack, tiny teddy was supposed not to be sold at the school canteen, but since it meets the â€Å"Amber† school canteen guidelines, this product is allowed to be sold without no restrictions as it does not spoil the health of kids promptly (Choice Food For Kids 2007). As being a snack or a party time good, Arnott? s Tiny Teddy should be convenient to buy. It should be easily found on the shelves of a store as consumers will buy it on impulse or on special occasions. The package of the product is very colourful with features such as leaves, mushrooms, bees, ladybirds, 3 teddy bears – where each one represents a flavour; honey, choc chips and chocolate (Arnott? s 2009). Individual flavoured biscuits are also available if one does not want to buy the variety bag. In one big bag of Tiny Teddy there are 10 little packs of cookies. It depends on the consumer? s loyalty, if no Tiny Teddy is available at a store. But even though, it seems like parents of kids are very loyal in buying Arnott? s Tiny Teddy instead of other brands as they know the health factors that Arnott? take in consideration in manufacturing the Tiny Teddy. The packaging of the product varies on the quantity and other models available. Some are made of boxes and others of plastic (Arnott? s 2009) which makes the product convenient to be disposed as a recycling material. 1. 2 Current Pricing T inny Teddy is product that is found in a very competitive market as the Food snack mar ket has evolved since the yester- year of „boiled lolly?. Consumer needs have changed thus creating an impact on health factors mainly. The price of the product varies from store to store, which usually falls onto the range of $ (AUD) 3. 50-$ (AUD) 5. 0 (OfficeMax 2011). Being in a competitive market, an economist will definitely conclude that if the price of Tiny Teddy rises then the consumer demand of this product will decrease. But, 3 SITUATION ANALYSIS/ TARGET MARKET IDENTIFICATION there are other factors that can affect the demand of this particular good, and such are consumer loyalty, convenience of purchase and quality of the product. Actually the price of Arnott? s Tiny Teddy is between $ 3. 00- $ 5. 00 (AUD) which slightly matches the price of its competitors such as the Cadbury snack sandwich and Cadbury picnic chocolate bars (Great Aussie Food 2011). It all relies on the consumer? s willingness to pay that a purchase decision will be made. The purchase decision process of each buyer varies, thus some consumers will buy it on the basis of the price and others on the basis of quality offered, image and features. According to a research carried by the Campbell Arnott? s Asia Pacific Division showed that the Arnott? s Brand, which includes Tim Tam, Sao and Tiny Teddy, has more than 60% of the Australian Biscuit market and occupies more than 95% of the Australian Household and is currently the number one Australian biscuit manufacturer (Campbell Arnott? APC Action Plan 2010). Thus, this concludes that consumers do not buy that particular brand or its product, such as the Tiny Teddy for this situation, on the basis of price but of quality, features and company image. 1. 3 Current Distribution Being a convenience good or something purchased due to impulse, Tiny Teddy biscuits are available in supermarkets, local groceries, at the delis as well as the school canteen. Examples of supermarkets and groceries are Coles, Woolworths, IGA, Food Works, Flemings, BI-LO, Action Supermarkets and etc (Coles 2011). The product is also available at some gas stations where actually the sale of the good is seen to have a weight. Being a product loved by children most stores and supermarkets have Tiny Teddy as an item to be sold as the brand has a good image and quality is offered in buying the product, which are attributes that attract a potential buyer. Tinny Teddy is found on the middle upper to lower or upper shelves of almost all food stores. This concludes that businesses try to display the product to the maximum to their audience. 1. 4 Current Promotion A rnott? brand uses colourful, musical and fast ads to promote the Tiny Teddy biscuits. The 2009 IGA/ Arnott? s promotion consisted of buying 2 Arnott? s Tiny Teddy to enter a price withdrawal of $100, 000 (Lottos 2011). This promotion was effected so as to target parents of kids in buying the Arnott? s Tiny Teddy. Plus, the 2010 audio-visual ad was promoting the Tiny Teddy hundreds and thousands (Youtube 2010). The 4 SITUATION ANALYSIS/ TARG ET MARKET IDENTIFICATION ad consisted of a party where kids were dancing and along were dancing the 3 little tiny teddies featured on the product packaging. One character of the Tiny Teddy scattered the hundreds and thousands little snacks all over the floor while opening when it was dancing. The ad was very captive in colours, music and happy moods. The message behind this ad is that you, kids, can keep the partying or the dancing mood between your friends and you as long as there is still tiny teddy snacks because it? s sure they will love it. 2. 0 Segmentation 2. 1 Segmentation: Definition T he Australian market deals with many buyers who are different from each other. As consumer needs varies from people to people, then technically each consumer or potential consumer is an individual market (Euromonitor International, 2010). Segmentation is not carried out by marketers, but it occurs naturally on the basis of the similarity in the interest level of each individual customer. Actually marketers use segmentation as a tool in identifying each different market. Overall, the grouping of customers and potential customers into smaller and interest similarity groups for a particular marketing proposition, is called segmentation (Kotler et al. 008, 228). Segmentation can be classified into these categories; demographic segmentation, geographic segmentation, psychographic segmentation and behavioural segmentation. Demographic Segmentation- It is the categorisation of a market in groups based on age, gender, family size, family-cycle stage, income and occupation (Kotler et al. 2008, 230). Geographic Segmentation- This is the division of a market into geograph ical units such as regions, states, nations, municipalities and cities. For example, fertiliser producer Ocra from Australia segmented the market for its crop-protection products into geographical units so as to better allocate the right product to the right location at the right time (Kotler et al. 2008, 230) Psychographic Segmentation- This type of segmentation helps in evaluating a market based on lifestyle, social class or personality (Market segmentation, 2011). 5 SITUATION ANALYSIS/ TARGET MARKET IDENTIFICATION Behavioural Segmentation- It is the division of a market on the basis of customer? knowledge of, attitudes towards, uses and responses for the product (Market Segmentation, 2011). 2. 2 Advantages of Segmentation to Current Product D G emographic Segmentation – As stated previously, the demographic segmentation consists of breaking up the market into groups of age, gender, family size, familycycle stage, income and occupation. This type of segmentation will enable marketers of Tinny Teddy to better understand the market that demand tha t particular product in Australia in terms of their age group, where they can illustrate a picture of exactly who to target, an such are kids and their parents. Plus, it will be easy again for marketers to know the price their target market are willing to pay simply just by categorising their market into weight of incomes. Advertisements will be easier to create as marketers will know who to target demographically. eographic segmentation – As it is noticeable that this type of segmentation is related to geographic factors, it will be an advantage to assess the geographical opportunities of the product as it will help them in selecting their target market geographically as in some countries, states or regions the buying behaviour of a market varies. This will specifically outline where the product should be sold the most or least, which means that the distribution of the product is organised and accurate which gives the company less intensive into distributing the wrong amount or the wrong product or model to the wrong region, country or state. Geographic segmentation also helps in determining the size of the targeted market, thus leading the other departments of the firm into determining the quantity of product to be manufactured and its costs and revenues. P ychographic Segmentation – The lifestyle, social class and personality of the targeted audience is determined through this type of segmentation. It is important for marketers to be aware of factors as it will help them in the categorisation of their market. Advertisements will be targeted only to those people who think that their lifestyle, personality and social class are reflected through the brand, category of products and the product itself. Knowing the lifestyl e, personality traits and social class of one? s targeted 6 SITUATION ANALYSIS/ TARGET MARKET IDENTIFICATION audience enhances the way the ad is presented and sent. It will be almost accurate for marketers to know that their promotions had had an impact on their audience. B ehavioural Segmentation – Here a market is evaluated on the basis of the customer? s knowledge of, attitudes towards, uses and responses for the product. The importance of this type of segmentation is as vital as the others as it enables the marketers of Tiny Teddy to better understand the way and frequency on which customers buy that particular good. Having knowledge of that helps them in implementing promotions or new models on occasions they know that the product would be sold. The behavioural segmentation helps also in determining potential buyers also. In evaluating the purchasing behaviour of a market enables also the firm in concluding the sales rate, customer loyalty and the lack of features or quality of the product; if sales are down then the marketers know that their ads are not having effects on the targeted market. 3. 0 Target Market Identification 3. 1 Geographic Segmentation T he variables of this type of segmentation consist of the geographic location where the product is to be sold and the characteristics the location have. The country in which the product will be manufactured and sold is Australia. This characteristic is important because, marketers will need to understand and identify the targeted market present in that country. Most of the population of Australia is found in the suburbans and urban areas and thus, the sales of the product will be higher there compared to the less dense or rural areas. As the product is designed specifically for a type of market, mainly children aged between 3-7 years old, most schools, entertainment centres, cinemas, shopping centres, parks and stores are found in the suburban and urban areas of Australia. 3. 2 Demographic Segmentation 7 SITUATION ANALYSIS/ TARGET MARKET IDENTIFICATION I n this section, marketers make an evaluation of the market on the basis of age, gender, family size, family-cycle stage, income and occupation. Tiny Teddy is sweet snack that is targeted to a specific market, children aged between 3 to 5 years old. Tiny Teddy can lso be purchased or consumed by adults as it is considered a snack for break times. Everyone, boys and girls both can consume the Tiny Teddy as there is no specific model made for a specific gender type. Being the number one biscuit manufacturer, and having Tiny Teddy as one of its best products, it is assumed that that the consumers are aware and informed about the features and attributes of the product because it is considered that the consumers are well educated. Tinny Teddy can be consumed by anyone, but it was designed for people who are aged as stated previously and who are singles, students. Tiny Teddy is convenience good thus anyone with any income can buy it. As the product come in little packs in one bag, it is easy to equally divide the snack bag if there is more than one child in a family. 3. 3 Psychographic Segmentation P sychographic segmentation as described earlier is a division, on a basis of the lifestyle, social class and personality traits, of the targeted audience. It was mentioned earlier in the first section, Current Product, Tiny Teddy are less in fat and sugar compared to other snacks of the same range. This implies that this product was designed for consumers who follow a healthy lifestyle. Plus, with the character of being a health conscious, the product and the brand also reflect that the consumer is from middle to upper class of the society who is economically stable and culturally informed. People with the interest of unification, party and outdoor activities will be keener to buy this kind of product. Being an Australian made product, believers from the VALS2 are the best fit audience to place as a target market for this particular product. â€Å"Experiencers† also fall onto this category but it depends on their brand loyalty as they favour new products. The best fit buyer will be physically and socially active. Tiny Teddy reflects the emotion to be together and always happy. 3. 4 Behavioural Segmentation T his section of the segmentation process deals with the usage of the brand, the benefits desired, user status and rate, loyalty and what is the readiness stage and overall attitude of the consumers towards the brand. Tiny Teddy was designed in 8 SITUATION ANALYSIS/ TARGET MARKET IDENTIFICATION first place as a snack, which implies that it can be used for parties, picnics and outdoor activities. It can also even be considered as a bedtime snack or school lunch box snack. Consumer seem to be very loyal to the brand and the product itself as it offers the benefits of a low fat and sugar content snack, a rather affordable price and it is convenient to be found. Plus, as it is sold in the Australian market, Arnott? s, the brand, is considered Australian made and owned (Arnott? s 2009), which concludes that Australians will support their own brand and manufacturer, which in short means they will be very loyal to that brand. 9 SITUATION ANALYSIS/ TARGET MARKET IDENTIFICATION Discussion/Rationale of the Target Market Images Chosen Table 4. Completion of Discussion/Rationale of the Target Market Images Chosen Table Column 1: SPECIFIC Characteristics of your assigned brand’s 1 primary target market that you provided in Section 3. 0 of report – NOT JUST CATEGORIES (abbreviate to fit the space below) Column 2: Image that illustrates characteristic given in Column 1 (Insert pictures below)v Column 3: Explain how the image shown in Column 2 illustra tes the SPECIFIC characteristic of your assigned brand’s 1 primary target market that you provided in Column 1. Justify your choice of the picture in Column 2. Australia Geographic Map of Australia filled with the Australian flag. Urban and Suburban areas Urban area with very tall buildings, a highway, busy roads and compact with lots of small and medium buildings. At school Kids in the canteen, with the canteen personnel serving them food. 10 SITUATION ANALYSIS/ TARGET MARKET IDENTIFICATION In the park Kids playing in the background, the green lawn of the park, trees and the little girl jumping in front of the camera. Column 1: SPECIFIC Characteristics of your assigned brand’s 1 primary target market that you provided in Section 3. 0 of report – NOT JUST CATEGORIES (abbreviate to fit the space below) Column 2: Image that illustrates characteristic given in Column 1 (Insert pictures below) v Column 3: Explain how the image shown in Column 2 illustrates the SPECIFIC characteristic of your assigned brand’s 1 primary target market that you provided in Column 1. Justify your choice of the picture in Column 2. Kids aged 3-7 years old. Demographic Little girl and boys smiling at the camera. Gender Gender symbols representing both male and female. 11 SITUATION ANALYSIS/ TARGET MARKET IDENTIFICATION Family Common family structure with the Dad, Mum, 3 kids and the dog. Educated Book, certificate and hat represents education or someone who is eductated. Column 1: SPECIFIC Characteristics of your assigned brand’s 1 primary target market that you provided in Section 3. 0 of report – NOT JUST CATEGORIES (abbreviate to fit the space below) Column 2: Image that illustrates characteristic given in Column 1 (Insert pictures below) v Column 3: Explain how the image shown in Column 2 illustrates the SPECIFIC characteristic of your assigned brand’s 1 primary target market that you provided in Column 1. Justify your choice of the picture in Column 2. Healthy Lifestyle Psychographic Fruits and vegetables arranged in such a way that it forms a heart which represents that a healthy option. 12 SITUATION ANALYSIS/ TARGET MARKET IDENTIFICATION Upper to middle societal class Man carrying bag of money represents, economical stability Socially and physically active Young girls in soccer outfit and with a soccer ball, smiling and waving hands represents being social and physical at the same time Happy/jovial Smiley smiling represents happy mood. Column 1: SPECIFIC Characteristics of your assigned brand’s 1 primary target market that you provided in Section 3. 0 of report – NOT JUST CATEGORIES (abbreviate to fit the space below) Column 2: Image that illustrates characteristic given in Column 1 (Insert pictures below) v Column 3: Explain how the image shown in Column 2 illustrates the SPECIFIC characteristic of your assigned brand’s 1 primary target market that you provided in Column 1. Justify your choice of the picture in Column 2. 13 SITUATION ANALYSIS/ TARGET MARKET IDENTIFICATION Loyalty Behavioural Dog with kid represent loyalty as dogs are considered very loyal. Affordable Piggy bank partying represents there is enough money for all. Communism People holding hands together describe unification. Positive attitude. Thumbs up means like or have a positive opinion or is the right one. 14 SITUATION ANALYSIS/ TARGET MARKET IDENTIFICATION 5. 0 Reference List Ryan, Rosemary. 2002. Arnott? s Get Lively with Tiny Teddies. BT News. Accessed August 01, http://www. bandt. com. au/news/arnott8217s-gets-lively-with-tiny-teddies Arnott? s Tiny Teddy. 2009. Arnott? s. Accessed July 20, http://www. arnotts. com. au/ourproducts/products/arnotts-tiny-teddy. aspx ARNOTT? S Tiny Teddy. 2011. What We Say. Choice Food for Kids. Accessed July 27, http://www. choicefoodforkids. com. au/review/ARNOTTS-Tiny-Teddy-Chocolate Arnott? Tiny Teddy Variety Multipack of 10. 2011. OfficeMax. Accessed July 29, http://www. officemax. com. au/office-supplies/tea-room-supplies/foodcondiments/biscuits/arnott-s-tiny-teddy-biscuits-variety-multipack-of-10. html Arnott? s Tiny Teddy. 2011. Great Aussie Food. Accessed August 01, http://www. greataussiefood. com. au/listProduct/Food/Biscuits+-+Sweet//25 Campbell Arnott? s APC Action Plan. 2010. Campbell Arnott? s Asia Pacific Division Action Plan 2010- 2015. Accessed August 4, http://www. arnotts. com. au/downloads/file/aboutus/SignedCopy-CampbellArnotts20102015APCActionPlan. pdf Coles Tiny Teddy Racing Cars. 011. Coles Online. Accessed August 3, http://blog. colesonline. com. au IGA/ARNOTTS 100 Local Heroes $100, 000 Reasons Promotion. 2010. Lottos. Accessed July 29, http://www. lottos. com. au/competitions/viewthreadlite. php? tid=221250 Tiny Teddy Hundreds and Thousands Ad. 2010. Youtube. Accessed August 5, http://www. youtube. com/watch? v=hIXDwKOWoaMfeature=related Australian Market. 2010. Euromonitor International. Accessed July 26, http://www. euromonitor. com Market Segmentation. 2011. Market Segmentation Company (UK) Limited. http:// www. marketsegmentation. com 15 SITUATION ANALYSIS/ TARGET MARKET IDENTIFICATION