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UP&GO Liquid Breakfast Christelle Rageh Rhian Streeter Arik Balolong Lorenzo Lapetina Edward Giang

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Table of Contents Current Situation Analysis ............................................................................................. 4 Background research & analysis ............................................................................................ 4

External Research & Analysis......................................................................................... 5 Macro Environmental Analysis.............................................................................................. 5 Political Factors........................................................................................................................... 5 Economic Factors........................................................................................................................ 5 Social Factors .............................................................................................................................. 5 Technological Factors ................................................................................................................. 5 Environmental Factors................................................................................................................ 6 Legal Factors ............................................................................................................................... 6

External Analysis ........................................................................................................... 7 Industry Analysis .................................................................................................................. 7

SWOT Analysis .............................................................................................................. 8 Strengths ............................................................................................................................. 8 Weaknesses ......................................................................................................................... 8 Opportunity ......................................................................................................................... 8 Threats................................................................................................................................. 8

SWOT Analysis .............................................................................................................. 9 Cont. .................................................................................................................................... 9

Competitive analysis ..................................................................................................... 9 DIRECT COMPETITOR BRAND STRENGTHS AND WEAKNESSES .............................................. 10

Porter’s Five Forces Analysis ........................................................................................ 11 Threats of new entrants: .......................................................................................................... 11 The threat of substitution:........................................................................................................ 11 Supplier Power: ........................................................................................................................ 11 Buyer Power: ............................................................................................................................ 11 Competitive Rivalry: ................................................................................................................. 12

Marketing Problem/ Opportunities .............................................................................. 13 KEY STRATEGIC DECISIONS ........................................................................................... 13 Objectives .......................................................................................................................... 13 Marketing Objectives................................................................................................................ 13 Communication Objectives ...................................................................................................... 13

Positioning ................................................................................................................... 14 CURRENT BRAND ITEM EVALUATION ...........................................................................15 Product .............................................................................................................................. 15 Price .................................................................................................................................. 15 Placement (Distribution)..................................................................................................... 15 Promotion.......................................................................................................................... 15 Positioning statement ........................................................................................................ 15

Target Market/Audience .............................................................................................. 17 Current Target Market ........................................................................................................ 17 Behavioural Sequence Model ............................................................................................. 18

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Profile Target Audience ................................................................................................ 19 Liam Hilson – 20 Years Old .................................................................................................. 19

Campaign Budget ......................................................................................................... 20 Percentage of sales method ................................................................................................ 20

Brand Personality/Character ........................................................................................ 21 IMC PLAN ..................................................................................................................... 22 Creative Strategy .........................................................................................................24 Development of Creative Idea ...................................................................................... 25 Packaging Development ............................................................................................... 27 BEFORE .............................................................................................................................. 27 AFTER ................................................................................................................................ 27

Detailed Explanation .................................................................................................... 28 Mock-ups (Tangible Executions) across all Media ................................................................ 28 TV/YouTube/Snapchat AD ........................................................................................................ 28 Print Media ............................................................................................................................... 30 Outdoor media ......................................................................................................................... 31 Snapchat Geofilter .................................................................................................................... 32

Media Strategy: ...........................................................................................................34 Justification of Media Selected ........................................................................................... 34 Media ........................................................................................................................................ 34 Vehicles..................................................................................................................................... 34 Justification ............................................................................................................................... 34 Media objectives ................................................................................................................ 36 Media Plan/Schedule ......................................................................................................... 37 Social Media Calendar ........................................................................................................ 38 Programmatic Buying ......................................................................................................... 39

Other IMC Activities/Elements/tools ............................................................................ 40 Detailed Explanation of Mock-ups of other IMC Activities ................................................... 40 Point of purchase...................................................................................................................... 40 Sponsorship of AFL ................................................................................................................... 40 Shelf wobblers .......................................................................................................................... 41

Evaluation & Control .................................................................................................... 42 Outline Evaluation/Tracking ............................................................................................... 42 Techniques ......................................................................................................................... 42 Corrective Scenario ............................................................................................................ 42

References ................................................................................................................... 43

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Current Situation Analysis Background research & analysis

About Sanitarium “It's what's on the inside that counts” Sanitarium, founded in 1898 was initially born from the desire of an individual to make healthy, nutritious foods for Australians. Long before becoming known, Sanitarium was encouraging the benefits of wholesome plant-based foods with an aim to give Australians healthier choices. Today they are the largest health Food Company that’s still 100% Australian owned. They also operate through 12 production facilities in Australia and New Zealand. It additionally exports its products to 26 countries around the world (Breakfast Cereals in Australia 30). Sanitarium’s food segment is divided into five units: breakfast, vegetarian, beverages, spreads and snacks (Breakfast Cereals in Australia 30). It's often said that Sanitarium changed Australia's eating habits as it discovered a gap in the market for healthy alternatives to the classic, high-carb western breakfast. This report will be focusing on UP&GO by Sanitarium. UP&GO was created in 1990 when Sanitarium created the liquid breakfast industry in an attempt to revolutionise breakfast and satisfy the time-poor consumer. Sanitarium found that a large percentage of Australians were going without breakfast and created a product that can be consumed on the move. UP&GO is a liquid breakfast range claiming to have the nutritional value of 2 Weet-Bix and milk. It is considered the number one product in the liquid breakfast category with 99% of market share and is available in a range of varieties, sizes, and flavours ("Our Story" Sanitarium.com.au).

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External Research & Analysis Macro Environmental Analysis Political Factors Sanitarium is a Health Food company completely Australian owned and operated, complying with all Australian food regulations and standards. Operating as a charity, it also adheres to the Australian Government’s Charities and Not-for-profits Commission rules and regulations. Keeping its religious roots separate from its marketing and Sanitarium Health Food Company, its core tagline remains at the centre of their company “Health Wellbeing” and its source of inspiration of 1 Genesis 1:29 (Sanitarium, Profits for charitable purposes 2017).

Economic Factors As previously stated, operating as a charity, Sanitarium is exempt from company income tax – however, pay other related Australian company taxes. “All of Sanitarium profits are transferred to the Seventh-Day Adventist Church in Australia which in turn operates charitable activities…” (Sanitarium, Profits for charitable purposes 2017) Its income comes from its products sold and as well as considerable donations, sponsorships, government grants, bequests, investments and other forms of income (Sanitarium Health and Wellbeing New Zealand Online Branding,15).

Social Factors With an increasingly health-conscious population, the liquid breakfast category has faced considerable ridicule in the media as it has been found to have extremely high rates of sugar and little fibre (Dalley, 2014). Being marketed as a healthy food company, Sanitarium continuously researches and develops products to promote a convenient and a relatively healthy diet for its tagline of ‘Health Wellbeing”. Sanitarium can be perceived as a relatively healthy food and nutrition source (Tanesha). Understanding that there is nothing healthier and fresher than straight from a tree or from the ground, Sanitarium aims to provide the healthiest possible products to its target customers (Of health-conscience, yet busy audience) (Sanitarium, Profits for charitable purposes 2017).

Technological Factors The factors of technology improvement for Sanitarium would be under the Food-Technology sector (recipes) and machinery used to produce food items. Such as more efficient ovens, mixers, food cleaning stations, etc. The Recipe/formulae of food items (namely UP&GO) could lead to new flavor combinations, adding nutritional value or ingredients in a cost-effective and large-scale manner. (Sanitarium, Profits for charitable purposes 2017). Engineering technology that could affect Sanitarium would be the construction of their packaging. Such as the materials used to contain UP&GO, or even the shape, as special packaging (more complex than a water-tight box) would require even more complicated folds, sealing, protection and handling (Sanitarium, Profits for charitable purposes 2017).

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Environmental Factors Due to Sanitarium being an agri-business (commercial agricultural businesses) and promote their healthy ‘natural’ foods, harvest yields are vital to Sanitarium’s operation as a business. If negative environmental factors (such as climate change) effect Sanitarium’s agricultural farms, they would not be able to meet demands of consumers in the long run (Sanitarium, Profits for charitable purposes 2017).

Legal Factors Legal factors that would have an impact on Sanitarium would be the possible health claims their products make. Sanitarium must be very careful in their product descriptions, purpose and use if their claims are well beyond their actual performance. Other legal implications would be possible contamination of their food items, if such an issue were to occur, a great-scale recall of products would follow along with consumers desiring a costly form of compensation and would create a negative perception of the brand (Tanesha). Another legal factor could be the formula or recipe a product may use that has been filed for patenting by a competitor, or at least a very similar product.

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External Analysis Industry Analysis The Australian breakfast cereal market has Figure1 significantly grown over the recent years; this industry is predicted to continue growing at a similar rate. According to the “MarketLine” report, the ready-to-eat cereals is the largest segment of the breakfast cereal market in Australia, accounting 91.6% of the market’s total value (Breakfast Cereals in Australia 7). The ready to eat breakfast cereal was the market’s most productive in 2014, with total revenues of $1,074.6m, equivalent to 91.6% of the market's overall value. However, the hot cereals segment accounts for the remaining 8.4% of the market. (Breakfast Cereals in Australia 10). The nature of the product, UP&GO by Sanitarium is competing in a number of industries as it claims to be the nutritional value of a breakfast, however in liquid form. The functional beverage industry governs sports, energy and health drinks. It is a huge, and fast growing, competitive market with two major market share holders; Coca-Cola Amatil (CCA) and Asahi (Wu 23). With an increasing demand for health conscious and on-the-go drinks for the health driven, time-poor consumer, the health and sport drink segments are growing steadily to meet these demands. Growth of marketing has largely been facilitated and fostered by the two major market share holders who have expanded the energy drink segment through large scale marketing campaigns (Wu 23). With an ample range of functional beverages on offer, there is huge competition, which is on the increase as new entrants are taking market share. Companies are increasingly needing to relaunch products with an emphasis on value added to the consumer, through a functional ingredient providing benefit to the consumer, larger packaging, or sales promotions. UP&GO, who market themselves as a breakfast replacement, differentiate themselves from the mass and provide an alternative to the time-poor consumer. This shift in health consciousness has additionally harboured a decline in breakfast cereal consumption as parents steer away from sugar dense breakfasts in an attempt to provide children with a healthier start to life. The introduction of the Health Star Rating system has fostered a demand for healthier breakfast alternatives such as muesli and granola (BSR 16). This demand for convenience has also been seen in the breakfast cereal industry which has started producing products such as Monster Health Food Co’s ‘breakfast in a bag’, appealing to time poor consumers. UP&GO compete indirectly with these products which attempt to provide to the timepoor consumer.

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SWOT Analysis Strengths

Weaknesses

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Decrease in soft drink consumption – energy/health drinks market may front this

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Business restricted to Australia and New Zealand, which means limited market share

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New entrants are likely to be discouraged due to strong competition and required innovation UP&GO holds 99% market-share

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People are unaware of nutritional content – equivalent to 2 W eet-bix and milk High Sugar content of product – not as healthy as it claims

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Health related functional drinks are likely to benefit from increasing health consciousness Time poor consumers require on the go

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alternatives Sustainable packaging

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Meal replacement drinks are gaining popularity

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Depreciating Australian dollar makes imported goods more expensive, meaning consumers are more likely to purchase domestically – UP&GO is produced domestically

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Packing limits consumption – cannot be stored after opening

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Consumers are moving away from high sugar content drinks

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Competition has increased as new entrants are taking market share – initially UP&GO was the only liquid breakfast drink, many oth...