MKT10007 Assignment 2 - Individual Essay - Grade 86% PDF

Preview

Summary

This individual report focus on SOLO - an Australian Soft drink brand...

Description

MKT1007 Semester 1 – 2021 Assignment 2: Individual Report on Brand

SWINBURNE UNIVERSITY OF TECHNOLOGY SCHOOL OF BUSINESS MKT10007 – Fundamentals of Marketing

Semester 1 – 2021 Assignment 2: Individual Report on Brand Date of Submission: 27 September 2021 Student Name: Student ID: Total words: 1389

1|Page

MKT1007 Semester 1 – 2021 Assignment 2: Individual Report on Brand

Table of contents PART A: Brand Summarizing........................................................................................................................2 SOLO Introduction...................................................................................................................................2 SOLO’s Brand and History........................................................................................................................2 Marketing Mix.........................................................................................................................................3 Applications of the Three Levels Theory..................................................................................................4 PART B: Impacts of micro and macro factors on SOLO.................................................................................6 Microenvironment...................................................................................................................................7 Macroenvironment..................................................................................................................................7 PART C: Persona...........................................................................................................................................6 PART D: Need recognition............................................................................................................................8 REFERENCE..................................................................................................................................................9

2|Page

MKT1007 Semester 1 – 2021 Assignment 2: Individual Report on Brand

PART A: Brand Summarizing (Words Count: 911) SOLO Introduction SOLO, an Australian soft drink, is a well-known ready-to-drink version of traditional ‘pub squash.’ SOLO beverage is yellowish in color and has a lemon flavor, making it one of the most popular soft drinks to help Australian consumers quench their thirst. SOLO has been positioned itself as a highly masculine drink since its inception, and it can be seen to target mostly male consumers of various ages.

SOLO’s Brand and History “The original pub squash has been crushing the thirst of Aussies since 1973. Since the iconic SOLO man ads of the 1970s and 80s, SOLO has long been the drink you need when you work up a real thirst. SOLO Original Lemon has 5% real lemon and provides active, real lemon refreshment.” (Asahi Beverages, 2021) First founded and launched in 1968 by Tarax drinks – acquired by Cadbury Schweppes in 1972. Later in 2009, Schweppes Australia was purchased by Asahi Group Holdings Pty Ltd in a $1.2 billion deal, meaning SOLO and other owned and franchised brands such as Spring valley, Cool Ridge water etc. are now owned by this Japanese Drinks giant (Sharp 2008) SOLO – one of Asahi Beverages' main non-alcoholic drink brands (Asahi Group Holdings, p.29), currently holding one of the top eight brand shares in the carbonates category with 4.2 percent. This category generates $4 billion in revenue and over 1,500 million litres of consumption per year (Passport, 2021), but it is expected to decline by 1.5 percent over the next few years as a result of rising health consciousness and a shift in food consumption habits caused by the COVID-19 pandemic. This is also true for SOLO, whose retail volume has decreased from 80 million litres in 2015 to 65 million litres in 2020. Asahi Beverages also has a diverse portfolio of soft drinks in Australia. Market-leading brands such as Schweppes, Sunkist, and Pepsi Max are included in this diverse selection. This Japanese beverage behemoth controls 34.3 percent of the Carbonates market, trailing only Coca-Cola Amatil Ltd at 48.2 percent (Passport, 2021). 3|Page

MKT1007 Semester 1 – 2021 Assignment 2: Individual Report on Brand

Marketing Mix Product, Price, Place, and Promotion are the set of tactical marketing tools that a company uses to generate the desired response in its target market; this is also referred to as the Marketing Mix (Kolter & Amstrong 2017, p.76). This term will be used to evaluate the SOLO original lemon 375ml can, which is still widely available on the market. Product: The brand is well-known for its original lemon flavor, which has been available for more than 50 years since the first can was released. As seen in the image below, SOLO Original Lemon came in a variety of sizes and packs, allowing customers to find the right one that suits their purposes.

Price: SOLO uses one of the most common strategies, which is selling products as a pack. This sales strategy makes customers feel as if they are getting a better deal by purchasing the entire pack rather than individual can/bottle. The most popular SOLO Lemon cans pack is 30x375ml and currently available at a retail price of $18-20 (Woolworths, 2021) Place: You can easily find SOLO along with other brands from Asahi Beverages in most of the major supermarkets and retailers such as Woolworths, Coles and Seven Eleven since Asahi has the second most of the market shares just behind Coca-Cola Amatil Ltd. Promotion: SOLO has always been known for being a highly masculine drink through its famous portrayal of “the SOLO Man” advertisements which often featured scenes of men participating in activities such as athletics or extreme sports. The commercials have created an unforgettable advertising icon that appealed to a sense of traditional “Aussies” values – the beloved pub (Breke, 2019). Below are two photos from the iconic “the SOLO man” advertisements, one of

4|Page

MKT1007 Semester 1 – 2021 Assignment 2: Individual Report on Brand which is the original SOLO Man from the 1970s and the other is the recently reintroduced SOLO Man from 2012.

Advertisement 1: The first SOLO Man, Mr. Ace drinking a SOLO can (Darval, 2017)

Advertisement 2: The recently reintroduced SOLO Man drinking SOLO from a bucket (Lynchy, 2012)

Applications of the Three Levels Theory According to Kotler, in order to better understand a product, it is recommended that each product be examined as if it were three separate products - the core benefit, the actual product, and the augmented product. These three levels will be used to evaluate the SOLO product.

SOLO's core product is to help its customers quench their thirst quickly while also providing a refreshing feeling. Carbonated drinks have been shown to contribute to a healthy, enjoyable diet when consumed in moderation (Jagan & Ramalakshmi 2011, p.177), making SOLO fizzy lemonade a great soft drink to boost energy and provide essential vitamins and minerals.

SOLO's actual product is available in seven different flavors: SOLO Original, SOLO Sub, SOLO Lemon & Lime, SOLO Low Carb, SOLO Guarana, SOLO Brew, and SOLO Strong, and comes in a variety of sizes and shapes, including a 200ml can, a 375ml can, a 600ml bottle, and so on (Bruce, 2008). This gives consumers more options based on their lifestyle, preferences, nutritional requirements, and physiological constraints.

There is not much to say about SOLO’s augmented product, however as a sponsor of the Football Federation of Australia in 2009, the brand held a competition called “SOLO KICK THE CAN,” in which participants had the opportunity to meet the SOLO Man and receive the brand’s

5|Page

MKT1007 Semester 1 – 2021 Assignment 2: Individual Report on Brand product as part of the prizes.

Advertisement 3: SOLO Kick The Can Advertisement Campaign (Waybackmachine,)

6|Page

MKT1007 Semester 1 – 2021 Assignment 2: Individual Report on Brand

PART B: Impacts of micro and macro factors on SOLO (Words Count: 336)

Microenvironment More than 80% of carbonated drink sales come from supermarkets, making this a huge factor that can have a significant impact on the performance of soft drink brands, including SOLO. Among SOLO's various retailers, Woolworths and Coles Group – which currently hold up to 65 percent of the market share (Wallis, 2021) – are major trading partners.

According to the graph from Finder's study, among the consumers polled, Woolworths and Coles Group are the most popular primary stores, with 45 percent and 35 percent of customers voting, respectively. As a result, Woolworths and Coles are crucial in distributing SOLO's products to consumers; the more people who have access to the products, the more sales SOLO can make.

Figure 1. Which grocery store do you primarily use? (Finder, 2021)

With these major supermarket chains being so important and popular in the Australian market, it is easy to see how SOLO's sales will suffer if the partnership with these retailers fails. A large

7|Page

MKT1007 Semester 1 – 2021 Assignment 2: Individual Report on Brand portion of SOLO's distribution outlets would be pretty much eliminated, resulting in a significant drop in sales and consumer influence.

Macroenvironment The rise in health consciousness can alter consumer lifestyles and food purchasing behavior, which has slowed high-sugar soft drink sales volumes over the last five years (Yeoh, 2021), making this an important cultural trend that soft drink brands must be aware of. According to Spice's research, 86 percent of Australians are trying to be more health-conscious regarding their diet. When people commit to a healthier lifestyle, soft drinks tend to be one of the first things that they eliminate from their diet. Particularly after the COVID outbreak, an increasing number of Australians began to consume fewer unhealthy foods and snacks (Ronto et al. 2021). Needless to say, this does not bode well for soft drink companies as well as SOLO. With the changing cultural trend of consumer lifestyles and food purchasing behavior, this can have a significant impact on SOLO revenue growth and may necessitate SOLO innovating healthier soft drinks to appeal to health-conscious consumers.

8|Page

MKT1007 Semester 1 – 2021 Assignment 2: Individual Report on Brand

PART C: Persona Age Group

Age Group between 25 and 44 years old, as they have been reported to be

and

consume the most soft drinks when compared to the other age groups.

Age range

Figure 2. Trends in proportion and mean consumption – by age (Dawes et al. 2020) Gender

Males are the target consumers of SOLO products, as evidenced by the “The SOLO Man” commercial series.

Income

Consumers in the “middle income group” are the primary target market for SOLO products, as research has shown that this group often spends more on overall food consumption (Bulletin, 2020)

9|Page

MKT1007 Semester 1 – 2021 Assignment 2: Individual Report on Brand Education

Educated, since over 80 percent of male consumers between the ages of 25 and 44 are reported to be fully engaged in education (Australian Bureau of Statistics 2020).

Motivation

Soft drinks are effective in providing consumers with a refreshing feeling due to the flavor and the addictive fizzy factor provided by carbonation. Furthermore, carbonated beverages can help them stay awake due to the dopamine surge caused by sugar and caffeine (Drayer, 2019)

Frustration

Frustration arises as a result of recent trends in re-evaluating consumers’ diets in order to their health (Food&Beverage Insider © 2021). It has been established that excessive soft drink consumption is associated with a variety of negative health outcomes, including dental caries, type 2 diabetes, metabolic syndrome, and the displacement of healthier food and beverage options from the diet (Hector D et al. 2009).

Criterias for

Important purchase factors considering for shopping carbonated drinks among

choices among competing brands are the taste, how well-known the brand name is, competing

and the retail price (Somasekhar & Kumar, 2017)

brands

10 | P a g e

MKT1007 Semester 1 – 2021 Assignment 2: Individual Report on Brand

PART D: Need recognition (Words Count: 142)

The buying process as known as the first step of the CDMP, according to Kotler, begins when the buyer recognizes a problem or need, and it can be triggered by both internal and external stimuli. This process is described as need recognition. It is clear that SOLO marketers have been using external stimuli to influence how the persona wants their products since the 1970s through their advertising campaigns. Despite being changed throughout the years, the iconic “The SOLO Man” advertisements always appear

11 | P a g e

MKT1007 Semester 1 – 2021 Assignment 2: Individual Report on Brand with a second adventure of men doing activities or extreme sports and finish it up with a SOLO can (Breke 2019). This commercial strategy makes people, particularly men, feel more connected whenever they participate in a strenuous activity, leading them to want to drink SOLO as "The Thirst Crusher" (a slogan SOLO used in advertising campaigns in the early 1990s).

REFERENCE

Asahi Beverages 2021, Solo, viewed 22 September 2021,

12 | P a g e

MKT1007 Semester 1 – 2021 Assignment 2: Individual Report on Brand Amelie Breke, The SOLO Man, WTFWAD?, viewed 24 September 2021,

Australian Bureau of Statistic 2020, Education and work, Australia, survey data over time one current or recent study, educational attainment, and employment, viewed 25 September, < https://www.abs.gov.au/statistics/people/education/education-and-work-australia/latestrelease#engagement-in-employment-and-or-education> Ari Sharp 2008, Schweppes sold for $1.2bn, The Sydney Morning Herald , The Sydney Morning Herald, viewed 22 September 2021,

Asahi Group Holdings 2021, FACTBOOK, viewed 22 September 2021,

‘Advertisement 1: The first SOLO Man, Mr. Ace is drinking a SOLO can” [advertisement], in Darval, K 2017, The 'Solo man' dies aged 74: Australian advertising icon Michael 'Acey' Ace who shot to fame plugging the 'man's drink' and inspired Paul Hogan character Leo Wanker passes away, Mail Online, viewed 25 September 2021, ‘Advertisement 2: The recently reintroduced SOLO Man drinking SOLO from a bucket’ [advertisement] in Lynchy, 2012, BMF SET TO BRING BACK SOLO MAN WITH NEW CAMPAIGN LAUNCHING NATIONALLY ON FEBRUARY 5, Campaign Brief, viewed 25 September 2021, ‘Advertisement 3: SOLO Kick The Can Advertisement Campaign’ [advertisement], in SOLO Kick The Can, Waybackmachine, viewed 25 September 2021,

13 | P a g e

MKT1007 Semester 1 – 2021 Assignment 2: Individual Report on Brand Bill Bruce 2008, Schweppes launches Solo Strong in Australia, FoodBev Media, viewed 23 September 2021,

Cooke, G 2019, Consumer Sentiment Tracker | finder.com.au, finder.com.au, finder, viewed 25 September 2021,

Cokis, Tomas;McLoughlin, Kate 2020, ‘Demographic Trends, Household Finances and Spending | Bulletin – March Quarter 2020’, Bulletin, Reserve Bank of Australia, no. March, viewed 27 September 2021,

Drayer, L 2019, What makes soda so addictive?, CNN, viewed 25 September 2021,

Food&Beverage Insider 2021, Better-for-you options appeal within the soft drinks market, Food&Beverage Insider, viewed 27 September 2021,

‘Figure 1: Which grocery store do you primarily use?’ [figure], in Wallis, S 2021, Supermarket statistics 2021, Finder, viewed 25 September

‘Figure 2: Trends in proportion and mean consumption – by age’ [figure], in Dawes, E, D’Onise, K & Spurrier, N 2020, Trends in soft drink and sugar-sweetened beverage consumption among South Australians, focusing on distribution of intake by subpopulation, Wiley Online Library, viewed 25 September 2021,

Hector, D, Rangan, A, Louie, J, Flood, V, Grill, T 2009, Soft Drinks, Weight Status and Health: A Review, viewed 25 September 2021,

14 | P a g e

MKT1007 Semester 1 – 2021 Assignment 2: Individual Report on Brand Kotler, P & Armstrong, G 2017, Principles of marketing,15th edn, Pearson Education Limited, Ebook Central (Proquest).

Mohan Rao, LJagan & Ramalakshmi, K 2011, ‘Introduction to soft drinks’, Recent Trends in Soft Beverages, pp. 177–178, viewed 25 September 2021,

Passport 2021, Carbonates in Australia, viewed 22 September 2021,

Ronto, R, Nanayakkara, J, Worsley, A & Rathi, N 2021, ‘COVID-19 & culinary behaviours of Australian household food gatekeepers: A qualitative study’, Appetite, vol. 167, p. 105598, viewed 25 September 2021,

Somasekhar, G, Kumar & Kishore, T 2017, Factors Influencing on Buying Behavior of Softdrink Products – a Perpetual Study, viewed 25 September 2021,

Woolworths, 2021, Solo Lemon Cans 30x375ml Pack, viewed 24 September 2021, < https://www.woolworths.com.au/shop/productdetails/773142/solo-lemon-cans>

Wallis, S 2021, Supermarket statistics 2021 | Finder, finder.com.au, finder, viewed 25 September 2021,

Yeoh, Y 2020, Soft Drink Manufacturing in Australia, IBISWorld, C1211A

15 | P a g e...