MKT 10007 Assignment 2A PDF

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Swinburne Online MKT10007

Ferenc Kis (103080089) Assignment 2A Ferenc Kis 103080089

Swinburne Online Teaching Period 2, 2021

MKT10007 Fundamentals of Marketing Assignment 2A: Brand analysis

(Bega 2021)

Due date: 23 August 2021 Date submitted: 23 August 2021 Word count: 1587 Words

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Ferenc Kis (103080089) Assignment 2A

Table of Contents 1.0 Introduction.................................................................................................. 3 2.0 Summary of the brand................................................................................ 4 2.1 Market Overview.......................................................................................... 4 2.2 Marketing Mix.............................................................................................. 6 2.2.1 Product...................................................................................................... 6 2.2.2 Core............................................................................................................ 6 2.2.3 Actual Product.......................................................................................... 6 2.2.4 Augmented Product................................................................................. 6 2.3 Price............................................................................................................... 7 2.4 Place.............................................................................................................. 7 2.5 Promotion..................................................................................................... 7 3.0 Analysis of micro and macro environmental factors.............................8 3.1 Macro – Environmental factors.................................................................. 8 3.2 Micro – Environmental factors...................................................................8 4.0 Positioning map........................................................................................... 9 5.0 A persona of a target consumer.............................................................10 6.0 Triggering need recognition....................................................................12 7.0 Conclusion.................................................................................................. 13 8.0 References.................................................................................................. 14

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Ferenc Kis (103080089) Assignment 2A

1.0 Introduction

Every business’s goal is to be successful. Therefore, a company must offer services and products which stand out of the crowd and provide value to their customers. A brand analysis provides a viable process to determine the position of a business within the market and its competitors. This report will conduct an analysis on the current market for Bega Lactose Free Cheese.

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Ferenc Kis (103080089) Assignment 2A

2.0 Summary of the brand 2.1 Market Overview Australia’s dairy industry generated $4.8 billion in farmgate value alone in 2019/20. Nationwide cheese consumption has remained at a steady 13.5kg per capita over the last 5 years (Dairy Australia 2020). Whilst Covid-19 continues to challenge market dynamics, robust domestic demand, positive global fundamentals and improved operating conditions depict a strong market outlook (Dairy News Australia 2021). Growth will largely be based on sales of speciality and premium cheeses during the next 5 years, industry revenue is expected to rise at 1.0% annually during that period (Reeves 2021). Bega was established in New South Wales in 1899 and continues to be proudly Australian owned and operated (Bega 2021). The company is the leading cheese manufacturer in Australia with a market share of 22.9% (Reeves 2021). It is estimated by experts that around 68% of the world’s population have a lactose malabsorption issue (NIH 2018). The global market for lactose free products is estimated to be worth $18.4 billion USD by 2025 (Markets and Markets 2021). Bega’s Lactose Free Cheese tries to take advantage of that. (IBIS World 2021)

(Bega Foodservices 2021)

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(Bega 2021)

Ferenc Kis (103080089) Assignment 2A

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Ferenc Kis (103080089) Assignment 2A

2.2 Marketing Mix 2.2.1 Product The product delivers the great Bega taste without the lactose. The two types available are sliced and grated. The sliced option offers 10 slices with an overall weight of 250g, the grated option comes in sizes of 250g or 300g. Both are made of at least 96% of Australian cheeses, produced locally (Bega 2021). 2.2.2 Core The core delivery of Bega Lactose Free cheese is that people wanting to enjoy dairy products do not have to hold back. They can indulge in the benefits of great tasting cheese without the downsides of lactose fuelled side effects.

2.2.3 Actual Product Bega is a well-known brand. Their company logo is highly recognised and consistent throughout their cheese product range. The packaging matches their other cheese products. Packaging can make or break a product (Kwiatkowski 2021). In this instance, the packaging is recognisable and provides the existing features of the box having a lid and the bag being resealable. Instead of heavy colours, a light blue shade was chosen for the packaging. Light blue stands for health, healing and softness (Super Color 2021). 2.2.4 Augmented Product Cheese is a premium product and value is added by having an additional option for people who are lactose intolerant. Bega runs half-yearly competitions where people can win lunch boxes and drink bottles for their children (Creators Club 2021). Occasionally Facebook competitions take place as well.

2.3 Price

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Ferenc Kis (103080089) Assignment 2A

The 250g options sell for $6.00 dollars at retailers, the 300g bag option could not be detected yet. Bulk buying is not an option. Other lactose free cheese products range from $24 to $30 dollars per kilo. Therefore, at $24 dollars the Bega product is an affordable option (Coles 2021). 2.4 Place The product is a new Bega range and therefore, has not found its place on all shelves yet. It can be found at Coles but not at other leading retailers such as Woolworths, IGA nor Aldi. At Coles the product can be purchased either in store or online. Bega products are usually placed in prime locations on shelves. 2.5 Promotion The product is being promoted as new in Coles, as well as being displayed on Bega’s homepage. At this stage, Bega uses its other products’ strength to promote this one by simply placing it next to their already existing range.

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Ferenc Kis (103080089) Assignment 2A

3.0 Analysis of micro and macro environmental factors 3.1 Macro – Environmental factors

Covid-19 has held its grip over Australia and the world for over 1.5 years now. As a result, supply chains have been interrupted and the overseas demand for Australian cheese has dropped. Exports in 2019-2020 dropped by 1.88%, 20202021 experienced an even further decrease, depicting a drop of 4.85% (Reeves 2021). Furthermore, shipping costs remain high, last year recorded an increase of 205% for container shipping costs internationally (Longley et al. 2021). Inflation is on the rise and gradually impacting the end consumer with higher prices for goods. Hence, making it more difficult to exports products (Tepper 2021). Recent political tensions with China have asked for a change of direction. China is by far Australia’s biggest trading partner with two-way trading reaching $252 billion in 2019, accounting for 27.4% of all Australian trades. Imposed trade restrictions on Australia, taxing Australian goods by up to 80% and even banning certain exporters (BT 2020). Australia will also have to look elsewhere for new markets and growth whilst also aiming to improve relations with China.

3.2 Micro – Environmental factors

Most customers prefer to buy goods from the same brand. They know they can trust the brand and are familiar with the company. Positive experiences build trust and provide additional value to the customer (Sarro 2017). However, accessibility plays a factor and as stated before, the product is not readily available at supermarkets yet. Bad experiences lead to switching brands. Whilst most people do not switch their mobile plans based on one bad experience, because the switching process requires time and effort and the same cannot be said about a product such as cheese (Sridhar 2019). One bad experience can lead to the customer researching other suitable products and in the age of social media, one is quick to post a damaging comment. Covid-19 has had an impact on consumer consumption. Inadvertently a positive one on revenue because of local food consumption. Whilst the supply chain suffered, people started panic buying, resulting in increased sales for staples such as cheese (Keane 2020). The future of grocery shopping will perhaps be a different landscape.

4.0 Positioning map

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Ferenc Kis (103080089) Assignment 2A

Whilst lactose free milk has been around for decades, cheese choices have been rather limited. The positioning map highlights that Bega Lactose Free Cheese is one of the more affordable options, matching Philadelphia and Liddells. However, Liddells scored much higher in terms of accessibility for customers. Other options such as Artisan cheeses compete in the same market but fail to be accessible in general supermarkets and are usually priced at a premium. Bega’s product is new and therefore, the brand preference and loyalty could impact and shift the map at a later stage in terms of accessibility (More business 2021).

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5.0 A persona of a target consumer

Ferenc Kis (103080089) Assignment 2A

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Ferenc Kis (103080089) Assignment 2A

Sarah is 26 years old and is one of Bega’s target customers. She has completed a university degree and works full time. A Hungarian research paper concluded that regular customers of lactose-free products are typically women, who have been diagnosed to be lactose intolerant, are highly educated and under the age of 30 (Szabo et al. 2021, p.1). As people age, their lactase production can decrease, making them more sensitive to lactose (Meier 2019). Sarah is motivated by the fact that she wishes to enjoy cheese without being exposed to the side-effects. Even though she is a high-income earner, she is frustrated by the prices for cheese and the lack of options. She is driven by a product’s quality and accessibility. Therefore, her preferred product is Liddells Lactose Free Cheese Slices since it is affordable, tastes great and most supermarkets store the product. Bega’s Lactose Free cheese is available in two types, sliced and grated, as depicted on page 4 of this report. According to a survey by Roy Morgan (2016), these two types represent a younger demographic in comparison to other types such as block, soft, cream and cottage.

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Ferenc Kis (103080089) Assignment 2A

6.0 Triggering need recognition Sarah’s need recognition is fulfilled by her internal desire for cheese, wanting a lactose free option. It is important for marketers to recognise these needs, allowing them to exploit such by displaying how their product satisfies those demands (Lamb et al. 2018, p. 47). The target market has been identified as individuals who are lactose intolerant but still wish to consume cheese. Bega’s has met those needs by providing a lactose free range which does not compromise on taste. The purchasing process can be divided into 5 stages: previous experience, interest, perceived risk of negative consequences, situation, and social visibility (Lamb et al. 2018, p. 50.). There is a high probability that customers have had good experiences with the Bega brand and therefore, are willing to try a new cheese alternative as well. Bega uses the placement strategy by putting their new product right next to the already existing range. In conjunction with occasional TV ads, Facebook presence and their own webpage.

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Ferenc Kis (103080089) Assignment 2A

7.0 Conclusion This report presented a market overview with its data related strengths and challenges. Bega’s cheese product range was on display, evaluating a market mix and taking micro-and macro environmental factors into consideration. A position map was used to determine the products place in comparison to competitors and a target audience was established. Whilst Bega has a strong brand recognition and loyalty, it is evident that the product placement will need improvement. The aim must be to make the product readily available, without customers having to research where to find it. The quality of the product is excellent and affordable in comparison to its competitors. However, active marketing effort will be required to increase product awareness.

8.0 References

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Ferenc Kis (103080089) Assignment 2A

Bega 2021, Brief History, viewed 21 August 2021, . Bega 2021, Lactose Free, viewed 21 August 2021, . Cheese Range [image], in Bega Product Range, Bega, viewed 21 August 2021, < https://bega.net.au/product-range0.html>. Coles 2021, Lactose free cheese, viewed 21 August 2021, . Creators Club 2021, COLLECT THEM ALL, viewed 21 August 2021, . Dairy Australia 2020, Australian Dairy Industry In Focus 2020, viewed 21 August 2021, . Dairy News Australia 2021, Dairy industry’s outlook is positive, viewed 21 August 2021, . Educated woman [image], in Educated Woman Stock Photos, dreamtimes, viewed 21 August 2021, . Farming [image], in Bega Heritage 2021, Bega, viewed 20 August 2021, . Keane, D 2020, Coronavirus is casing panic buying, but what does that mean for Australia’s food security?, viewed 22 August, < https://www.abc.net.au/news/2020-03-16/coronavirus-is-not-a-threat-to-foodsupply-experts-say/12058412>. Kwiatkowski, K 2021, The Importance of Product Packaging & Branding, viewed 21 August 2021, . Lamb, C W, Hair, J F, McDaniel, C & Summers, J & Gardiner, M 2018, MK TG 4, 4th edn, Cengage Learning Australia Pty Limited, Southbank, Victoria, Australia. Liddells cheese [image], in Products, Liddells, viewed 21 August 2021, < https://www.liddells.com.au/en/products>. Longley, A, Bosley, C & Hipwell D 2021, Surge in Shipping Costs Globally Could Cause Price Hikes From Coffee to Toys, viewed 21 August 2021, .

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Ferenc Kis (103080089) Assignment 2A

Major cheese players [graph], in Cheese Manufacturing in Australia, IBIS World, viewed 21 August 2021, < https://my-ibisworldcom.ezproxy.lib.swin.edu.au/au/en/industry/c1133a/industry-at-a-glance>. Markets and Markets 2021, Lactose-Free Products Market, viewed 21 August 2021, < https://www.marketsandmarkets.com/Market-Reports/lactose-freeproducts-market-4457397.html>. Meier, J 2019, Can Cheese Be Lactose-Free, viewed 21 August 2021, < https://www.thespruceeats.com/what-is-lactose-free-cheese-591226>. More Business 2021, Steps to Brand Recognition: Build Brand Recognition for Your Business, viewed 21 August 2021, . National Institute of Diabetes and Digestive and Kidney Diseases 2018, Lactose Intolerance, viewed 21 August 2021, < https://www.niddk.nih.gov/healthinformation/digestive-diseases/lactose-intolerance/definition-facts>. Reeves, M 2021, Cheese Manufacturing in Australia, viewed 21 August 2021, < https://my-ibisworld-com.ezproxy.lib.swin.edu.au/au/en/industry/c1133a/industryat-a-glance >. Reeves, M 2021, Cheese Manufacturing in Australia, viewed 21 August 2021, . Roy Morgan 2016, What do your cheese choices say about you?, viewed 21 August 2021, < http://www.roymorgan.com/findings/7085-what-do-your-cheesechoices-say-about-you-201612120902>. Sarro, D 2017, Why Customers Consider Buying Products from Familiar Brands and The Role Played by Promotional Products!, viewed 21 August 2021, < https://www.linkedin.com/pulse/why-customers-consider-buying-products-fromfamiliar-brands-sarro/>. Sridhar, S 2019, What’s Stopping Your Customers from Switching Brands: Loyalty or Lack of Choice?, viewed 21 August 2021, < https://freshdesk.com/general/customers-switching-brands-blog/>. Super Color Digital 2021, The Meaning of the Color Blue, viewed 21 August 2021, . Szabo, E, Szakos, D, Kasza, Gy & Ozsvari, L 2021, ‘Analysis of the target group of lactose-free functional foods for product development’, Akademiai Kiado, no. 1, pp. 1-9, viewed 21 August 2021, < https://www.researchgate.net/publication/350695969_Analysis_of_the_target_gro up_of_lactose-free_functional_foods_for_product_development>.

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Ferenc Kis (103080089) Assignment 2A

Tepper, T 2021, Why Is Inflation Rising Right Now, viewed 21 August 2021, . Various brands [image], in Products, Bega Foodservice, viewed 21 August 2021, < https://begafoodservice.com.au/products/>....