BSB 126 Marketing PLAN - GRADE: 6 PDF

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! BSB!126!MARKETING!PLAN !

! NAME: NAME:!! !Zoe!Chui Zoe!Chui--Clark Clark!! ! ! TOTAL!WORD!COUNT:! 1,879! ! I.!SITUATIO I.!SITUATION!ANA N!ANA N!ANALYSIS! LYSIS! !

!

STUDENT!NUMBE STUDENT!NUMBER:!n9928995 R:!n9928995 !

Bundaberg!Rum!is!a! 130-year-old!Australian!Company!that!specialises!in!the!production!of!dark! rum!spirits.!In! 1888,!five!Queenslanders!in!Bundaberg!realised!there!was!a!‘better!use’!for!the!burgeoning!local!sugar!industry! than! solely!making! cakes!(Bundaberg,! 2019).! Since! then,!Bundaberg! Rum! has! grown! into!a! dominant!player!in! both! the! domestic! and! international! rum! markets.! Their! prevalence! in! the! market! is! highlighted! through! longstanding,!successful!partnerships!with!many!famous!companies!and!national!icons,!such!as!budgy!smugglers,! Johnathan! Thurston,!the!Cowboys! rugby! team! and! the! NRL.! The! company! tries! to!encapsulate! such! Australian! values!as!the!unmistakable!spirit!of!always!being!there!for!your!mates,!remaining!optimistic!in!the!face!of!adversity! and!having!a!crack!even!when!all!the!odds!are!stacked!against!you!(Bundaberg,!2019).! ! Bundaberg!Rum!is!known!as!the!world's!best!rum,!seeing!off!many!international!competitors!and!being!awarded! over!20!awards!in!the!last!3!years.!Global!brand!recognition!is!one!of!their!strengths,!however,!the!new!generation! of! consumers,! Gen! Z,! are! inclined! to! drink! less,! seeking! a! more! active! and! healthy! lifestyle! is! one! of! their! weaknesses.!See!Appendix!1A!for!SWOT!Analysis.! ! The!socio-cultural!and!demographic!trends!are!the!most!influential!macro-environmental!factors!to!consider!when! examining!Bundaberg!Rum!in!Australia.!A!full!CDSTEP!analysis!can!be!viewed!in!Appendix!1B.!One!of!Bundaberg! Rum’s!biggest!barriers!to!success!is!the!Australian!socio-cultural!trends!as!the!aging!population!continue!to!change! the!consumer!market.!IBISWorld!(2018)!anticipates!that!alcohol!consumption!will!increase!at!an!annualised!1.5%! over!the!next!five!years.!See!Appendix!1C!for!the!total!consumption!of!alcohol!graph.!! ! Demographic! is! important! when! promoting! products! by! identifying! the! market,! Generation! Z,! through! communication,!then!using!their!lifestyle!to!design!products.!Promoting!is!imperative!as!well!as!maintaining!their! reputation!of!the!world's!best!rum!-!Bundaberg!rum!offers!a!rich!and!bold!taste!of!rum!which!sets!them!apart! from!other!brands.!Bundaberg!rum!needs!to!analyse!the!taste!and!lifestyle!of!Generation!Z!and!develop!to!suit! their! needs.! When! analysing! the! brand! and! market! that! exists! in! Australia,! a! product! development! in! brand! extension!will!be!implemented!for!Bundaberg!Rum.! ! II.!MARKE II.!MARKETING!G TING!G TING!GOAL OAL !

Bundaberg!Rum’s!marketing!goal!is!to!maintain!market!growth!by!appealing!to!and!attracting!relatively!new!and! potential!demographics!of!generation!Z.!!Increase!sales!for!generation!Z!consumers!by!10%!in!5!years.! ! !

!

III.!MARKE III.!MARKETING!ST TING!ST TING!STRATEGY RATEGY RATEGY!!! !

!

Target!Market!1!

Target!Market!2!

Target!Market!3!

Demographic !

Age: !15-29!

Age: !30-59!

Age: !60+!

!

!

!

Gender: !Males!and!Females!

Gender: !Males!and!Females!

Gender: !Males!and!Females!

!

!

!

Income: !Lower!income!levels!

Income: !Steady!income!levels! Income: !Lower!income!levels!

!

!

!

Education/Work!experience:!

Education/Work!experience: !

Education/Work!experience: !

University!and/or!transitioning!

Full-time!employment!

Retired!or!approaching!

into!work! Geographi Geographicc!

Behavioural!

Physiographical!

retirement!

Household! Household!locati locati location: on:!

Household! Household!locati locati location: on: !outer!

ousehold!location: tion:!! H ousehold!loca

inner!suburbs/city!(preferably!

and!surrounding!suburbs:!not!

old!age!care!facilities!or!their!

close!to!university):!easy!access!

exposed!to!a!lot!of!alcohol!

home!

to!alcohol.!

(by!liquor!stores,!friends)!

Usage:!Heavy!users!

Usage:!Heavy/light!users!

Usage: !light/non!users!

!

!

!

Drink!at!university!bars,!pubs,!

Drink!at!home!or!pubs/bars!

Drink!at!home!!

clubs,!home,!parties,!pres.!

or!restaurants!!

Lifestyle!(4C’s): !Explorer!and!

Lifestyle!(4C’s):!

Aspirer!

Mainstreamer!and!Succeeder!

Life! Life!style!(4C’s): style!(4C’s): !Resigned!

! Target!Market!1!individuals!are!more!likely!consume!alcohol!as!they!have!become!the!legal!age!of!drinking!alcohol! and!are!exploring!the!“college!experience”!or!fall!into!peer!pressure.!Even!though!they!have!low!income!levels,! they!are!the!largest!group!of!alcohol!consumers!and!view!it!as!a!social!event,!this!means!they!are!most!likely!to! frequently! visit!liquor!stores!before!and!during!the!weekends.! Bundaberg!Rum!can!target!this!demographic! to! maintain!growth!through!product!development!strategies,!specifically!-!using!brand!extensions!to!develop!new! products!to!sell!to!existing!customers.! ! Currently,! Bundaberg!Rum! offers! affordable! good! quality! alcohol,!however,! the!main! aspect! that!makes! them! stand! out! is! the! mate! ship! they! promote! through! their! homepage,! social! media! and! advertisements.! Young! Australians,!18-29!years!old’s,!socialise!and!come!together!over!alcohol,!Bundaberg!rum!offers!a!beverage!where! they!can!foster!this!human!connection.!Not!only!does!alcohol!bring!mates!together,!it!can!also!be!used!to!relax!

and!be!stressed!free!from!work!by!winding!down!at!home.!Not!only!is!Bundaberg!rum!an!alcoholic!beverage,!but! its! viewed! as! an! affordable! and! essential! product! in! order! to! have! a! great! time! with! mates.! Alcohol! is! more! affordable!than!it!has!every!being!in!the!past!thirty!years!(Foundation!for!Alcohol!Research!and!Education,!2019).! Bundaberg!rum!differentiates!itself!form!other!rum!beverages!as!it!values!mate!ship!and!the!Australian!culture,! focusing!more!on!the!user’s!beliefs!and!the!Australian!spirit!than!the!alcohol!(Bundaberg!Rum,!2019).!Generation! Z!want!to!focus!more!on!their!health!and!well-being,!by!implementing!a!new!production!focusing!on!Veganism! and!awareness!of!animal!farming,!it!will!provide!a!close!community!as!it!shows!that!the!company!is!aware!of!the! environmental!challenges!we!currently!face!and!the!impact!of!animal!cruelty.! IV.!MARK IV.!MARKETING!T ETING!T ETING!TACTICS ACTICS ACTICS!! ! The!creation!of!new!Bundaberg!Rum!products!via!brand!extension!is!the!most!effective!option!to!maintain!growth!

through!a!product!development!strategy.!As!Generation!Z!are!looking!for!a!healthier!lifestyle,!a!great!way!to!target! customers!is!through!pre-mixed!drinks!using!juices!rather!than!soft!drinks.!A!good!example!is!for!the!brand!to! create!a!pre-mixed!orange!juice!and!rum!beverage.!Freshly-squeezed!orange!juice!adds!another!layer!of!texture! and!flavour,!it!broadens!the!consumption!of!alcohol!by!giving!consumers!more!variety!through!a!larger!selection! of!alcohol.!Bundaberg!rum!has!already!established!their!reputation!in!Queensland,!therefore!it!would!be!an!ideal! location!to!run!a!limited!edition!pre-mixed!drinks!pilot!program!to!see!how!successful!this!product!would!be.! ! !

PRODUCT !

Bundaberg!Rum!is!an!iconic!successful!brand!because!the!company!pioneered!rum!in!Australia,!creating!a!uniquely! tasting! rich! and! bold!rum! experience.! Their! success! can! be! attributed! to! the!unrivalled! pride! that! they! take!in! manufacturing!the!highest!quality!rum,!such!quality!gives!the!rum!a!uniqueness!for!Australians.!Bundaberg!Rum! currently!offers!a!variety!of!rum!selection!suited!to!the!current!generation’s!taste,!however,!a!development!can! be! made! for! Generation! Z’s! taste.! Bundaberg! Rum! does! currently! provide! for! millennials! and! generation! X,! however,! Generation! Z! are! being! raised! with! dominant! values! that! prioritises! a! healthier! lifestyle.! Similarly,! through! increased! awareness! of! the! horrors! carried! out! in! the! farming! industry! e.g.! animal! cruelty! growing! portions!of!society!are!turning!to!veganism.!Therefore,!by!promoting!and!producing!a!new!line!of!rum!pre-mixed! with!tropical!fruity!juices!whilst!promoting!veganism!to!suit!the!lifestyle!of!the!culture!Bundaberg!Rum!is!trying!to! enter!is!the!best!way!to!immerse!themselves!through!Generation!Z.!! !! Bundaberg!rum!are!always!bringing!great!Australian!icons!together,!partnering!and!promoting!with!relevant!and! reputable!legendary!businesses!and!rugby!legends.!This!can!be!seen!through!an!unmistakable!partnership!with! Australia’s!favourite!sport,!the!NRL,!as!they!rekindled!and!old!flame!back!in!2016,!bringing!mates!together!and! uniting!them!around!the!best!Australian!spirit!and!a!classic!game!of!rugby.!Assuming!that!the!target!market!is! Australian!residents!between!the!ages!of!18-29,!a!product!development!is!the!best!way!to!acquire!and!maintain! the!growth!for!the!company.!Developing!and!promoting!their!product!to!broaden!their!market!would!maintain! growth!in!Australia.! !

!

PRICE !

Price!is!crucial!when!planning!the!future!of!a!business.!When!setting!prices,!some!considerations!are!cost-based! pricing!methods,!value-based!pricing!methods!! or!competition-based!methods.!The!cost-based!pricing!method!determines!the!final!price!by!starting!with!cost! then! determining! a! profit! margin.! Competition-based! pricing! method! is! setting! prices! according! to! the! competition.!The!value-based!pricing!method!is!looking!at!consumer’s!perceived!value!and!benefits!and!setting! the!price!accordingly.!To!maintain!growth!for!Bundaberg!rum,!they!need!to!expand!their!production!line!according! to!the!Generation!Z!market.!Currently,!Bundaberg!Rum!operates!using!a!value-based!pricing!structure,!using!both! the!quality!of!the!rum!and!the!experience!consumers!receive!from!the!product!to!determine!the!costs.!However,! Bundaberg!rum!has!maintained!this!same!method!from!Generation!Y!to!Generation!Z,!which!is!one!of!the!main! reasons!the!growth!decreased!in!2016-2017(IBISWorld,!2018).!Using!the!competition-based!pricing!method!would! be!more!effective!as!it!would!increase!the!number!of!consumers!as!the!new!production!line!corresponds!with! Generation!Z’s!lifestyle.! !

!

!!!

!!

!

!

Company!objectiv Company!objectives es !

Maintain!market!growth!and!appeal!to!Generation!Z.!

Customers!

18-29!year!olds,!university!or!transition!into!work,!weekly!alcohol!drinkers,!light-heavy!drinkers!

Costs!

Variable!cost:!varies!with!production!volume!

Competition!

Major!competition!with!other!high-end!brand!of!rum!e.g.!Captain!Morgan,!Bacardi,!Sailor!Jerry,! Havana!and!Coruba,!etc.!

Channel!Members !

Manufacturers,!wholesalers!and!retailers!

! PLACE!(DISTRIBUTION) ! !

Bundaberg! Rum! wants! to! maintain! their! market! growth! throughout! Generation! Z! in! the! domestic! Australian! market.!Currently,!Bundaberg!distributes!their!products!to!Liquorland,!BWS,!Dan!Murphy’s,!First!Choice!Liquor! and!Bottle-O!throughout!the!Australia.!Bundaberg!Rum!already!has!a!store!located!in!Bundaberg!where!you!are! able! to! tour! the! distillery! and! get! free! samples! of! their! products! throughout! the! tour.! To! further! develop! the! Bundaberg! Rum! brand! for! consumers,! they! can! expand! their! product! through! premixed! juices! and! promote! veganism.!This!would!give!new!and!loyal!customers!a!link!to!the!brand!through!correlating!with!Generation!Z’s! lifestyle,!values!and!beliefs.!The!strategic!relationship!between!a!well-known!rum!brand!such!as!Bundaberg!rum,! and!Generation!Z!would!be!mutually!beneficial.!! ! ! !

! !

PROMOTION ! Objecti Objective ve!

Task !

Media Media!Cos !Cos !Costt !

!Creating!

Social!Media!

Instagram! &! Fa Facebook! cebook! ads: ! daily! budget! $3500! a!

awareness!

of! Instagram! Instagram!& &! Facebook! Facebook!ads: ads: !Potential!audience!of! week:!5!weeks!=!$17,500!+!$1750!tax)!=$19,250!

Veganism!

and! 4.5!Million!people!who!can!view!the!ad!and!41K!-! Facebook!Event:!max!2!months!ahead!=!$0!

their!

new! 259K!people!daily!over!a!course!of!a!week’s!worth!

production-line!

YouTube YouTube:! :! max!50,000!views!a!week: !50,000!views!

of!ads.!!

=!$5,000!to!$15,000!≈!$10,000!

Facebook!events:! Free!of!Charge!

Billboard: ! $1,900! per! month,! print! cost! $500,!

YouTube YouTube!! ads:! over! 1.9! Billion! users!on! YouTube.! installation! site! cost! $395! =! For! two! months,!

Typically,!10c-30c!per!view!

$3,800+$500+$395=!$4,695!

Billboards Billboards:! :! min! lease! of! 28! days.! 74%! of! people! Radio! advertis advertisements: ements: ! 4! ads! a! day! for! 5! weeks! =!

read!billboards!

140!ads!x!$100!per!ad=!$14,000!

Radio!Adverti Radio!Advertisements:! sements:!!

!

$100!per!ad!

Total=!$47,945!

Bundaberg!Rum!webpage ! Events:! free!of!charge!

! ! Promotion!for!the!awareness!of!veganism!and!advertising!their!new!production!line!can!mainly!be!done!through! social!media.!Competitor!Bacardi!has!multiple!global!Facebook!events!and!added!an!incentive!for!consumers!who! can!share!their!event.!Consumers!receive!cheap!frenzy!drinks!for!the!price!of!$3!mixers!and!$7!mojitos.!This!led! to!consumers!sharing!the!event!which!increased!the!events!exposure.!Paying!for!social!media!advertisements!can! be!costly,!however,!it!does!raise!awareness!and!helps!with!promoting!as!the!audiences!is!well!connected!with! social!media.!Creating!events!through!Facebook!can!save!money!and!time!instead!of!doing!physical!promotion,! such!as!flyer! and!poster,!thus!not!wasting!resources!and!not!contributing!to!deforestation!and!climate!change! emissions.! !

!

V.!REFERENCES !

! Alcohol!advertising!and!young!people's!drinking!|!Young!Consumers!|!Vol!10,!No!1.!(2019).!Retrieved!from! https://www.emeraldinsight.com/doi/abs/10.1108/17473610910940756! ALCOHOL!ADVERTISING:!THE!EFFECTIVENESS!OF!CURRENT!REGULATORY!CODES!IN!ADDRESSING!COMMUNITY! CONCERN.!(2014).!Retrieved!from! http://www.alcohol.gov.au/internet/alcohol/publishing.nsf/Content/DCAD325BC0743EB3CA257EE0001AA BAB/%24File/Alcohol%20Advertising%20Final%20Report%20April%202014.PDF! Australian!Drinking!Habits:!2007!vs!2017.!(2019).!Retrieved!from!https://drinkwise.org.au/our-work/australiandrinking-habits-2007-vs-2017/#! Budgy!Smuggler!Swimwear.!(2019).!Retrieved!from!https://budgysmuggler.com.au/! Bundaberg!Region!-!Bundaberg!Rum!Crowned!World's!Best.!Again.!(2019).!Retrieved!from! https://www.bundabergregion.org/corporate/blog/446-bundaberg-rum-crowned-worlds-best-again! Bundaberg!Rum!Range!&!Rum!Distillery!Tours.!(2019).!Retrieved!from!https://www.bundabergrum.com.au/! Bundy!Smuggler!Promotion.!(2019).!Retrieved!from!https://www.bundabergrum.com.au/bundy-smugglerpromotion! Fruit!juice!vs!soda!beverage!health!risk.!(2019).!Retrieved!from! https://www.npr.org/sections/thesalt/2014/06/09/319230765/fruit-juice-vs-soda-both-beverages-pack-insugar-and-health-risk! LIVING!SPIRITS:!A!history!of!the!Bundaberg!distillery.!(2019).!Retrieved!from! https://www.bundabergrum.com.au/distillery/chapter/01! NADK:!Do!younger!or!older!Australians!drink!more!alcohol?!(2019).!Retrieved!from! https://nadk.flinders.edu.au/kb/alcohol/consumption-patterns/quanitity-consumption/do-younger-orolder-australians-drink-more-alcohol/! Pricing!&!taxation!–!FARE.!(2019).!Retrieved!from!http://fare.org.au/policy/pricing-taxation/! Shim,!S.,!&!Maggs,!J.!(2009).!A!Psychographic!Analysis!of!College!Students'!Alcohol!Consumption:!Implications! for!Prevention!and!Consumer!Education.!Retrieved!from! https://onlinelibrary.wiley.com/doi/pdf/10.1177/1077727X04272365! The!Story!Behind!Our!Liquid.!(2019).!Retrieved!from!https://www.bundabergrum.com.au/unmistakably-ours! Total!Alcohol!Consumption.!(2018).!Retrieved!from! http://clients1.ibisworld.com.au.ezp01.library.qut.edu.au/reports/au/bed/default.aspx?entid=25048!

VI.!APPENDICES! ! Strengths !

•

Different,commercials,to,easily,reach,their,consumers,through,social,media.,,

•

Promotion,,Partnerships,and,Sponsorships:,Johnathan,Thurstan,,the,NRL,,the,cowboys’,rugby, team,,budgy,smugglers,and,Bundy,smugglers,

Weakne Weaknesse sse ssess !

Opportuni Opportunities ties!

•

Evidence,of,a,strong,consumer,base,,enhancing,the,brands,image,through,the,industry,

•

Awards,listed,in,Appendix,1D,

•

Strong,brand,recognition,

•

Upcoming,Generation,Z,wanting,to,live,a,healthier,lifestyle,

•

Mainly,target,young,adult,men,

•

Dependent,on,the,Australian,market,

•

Advertising,Facebook,events,to,enhance,the,demand,of,alcohol,by,increasing,parties,,festivals, and,events,

Threats !

•

expand,and,promote,the,products,to,include,veganism,

•

Technology,advancements,

•

Generation,Z,wanting,a,healthier,lifestyle,

•

The,violence,associated,with,alcohol,

•

Competition,with,other,Rum,brands,

! Culture !

Australians!have!had!the!luxury!to!can!afford!to!consume!alcohol!at!a!cheap!price!since!the!1980’s.!! Health!and!Environmental!Conscious!

Demographics !

Gen!Z,!people!aged!18-29,!are!heavy!alcohol!consumers,!generally!drink!more!standard!drinks!on!a!single! occasion!than!any!other!group!(National!Drug!and!Alcohol!KnowledgeBase,!n.d.).!

Social!trends !

Gen!Z!are!inclined!to!drink!less,!seek!a!healthier!lifestyle,!and!there!are!growing!concerns!relating!to! alcohol!and!violence.! The!social!environment!impacts!the!alcohol!industry!

Technology!

Gen!Z!grew!up!surrounded!by!technology,!thus!social!media!advertising,!Facebook,!Instagram!and! collaborations!can!change!the!customer’s!outlook!

Economics !

targeting!consumers!who!encourage!and!support!veganism!and!who!want!live!a!healthier!life!by!creating! a!new!production!line!with!premixed!drinks!mixed!with!juice!instead!of!soft!drinks.!

Political/l Political/legal egal !

Australian!Liquor!Laws!

! 1D:,Awards,received,for,Bundaberg,Rum,(Bundaberg!Rum!Crowned!World's!Best.!Again,!2019).!

Bundaberg,Rum:,Vi Bundaberg,Rum:,Visitor, sitor,

! 2016,,2018,&,2019: ,Distillery,Challenge,Awards:,World’s,Best,Distillery,Event,(The,Spirit,of,

Experience !

Bundaberg,Festival)! ! 2017,,2018,&,2019: ,Distillery,Challenge,Awards:,World’s,Best,Distillery,Retail,Experience! 2018:, -,Queensland,Tourism,Awards,–,Winery,,Brewery,or,Distillery,Experience:,Gold!

•

Queensland,Tourism,Awards,–,Tourist,Attraction:,Silver,

2017:, -,Distillery,Challenge,Awards:,World’s,Best,Distillery,Educational,Experience!

Bundaberg,Rum:,Sol Bundaberg,Rum:,Solera ...