Besides MIS, Golden Circle’s market research department also carries out market research in order to collect primary data to develop detailed planning of marketing strategies to meet customers’ needs. This is important because Golden Circle needs to obtain factual information that is not currently available in the MIS
Wednesday, September 19, 2007
7.0 MARKETING INFORMATION REQUIREMENTS
6.0 COMPANY ANALYSIS
6.1 Issues
1 How can Golden Circle compete effectively with other major players in the juice industry?
2 How should Golden Circle compete to become the number one market share leader?
3 How will Golden Circle maintain the quality of its new product, while keeping prices relatively competitive, as well as holding priorities for research and development?
4 How will Golden Circle maintain its brand equity?
6.2 Company objectives
1 Golden Circles objective will be to introduce a new type of juice that will strengthen Golden Circles position through significant market share
2 Moreover, for Golden Circle to become not only the number one leading brand, but also leading company in fruit juice.
6.3 Marketing objectives
1 To promote the Real Fruit as 100% Australian product
2 To be perceived as a company seeking for customer’s satisfaction and needs with high quality value-for-money products.
3 To capture the patriotic Australian by aggressively promoting its new product “Real Fruits” as an Australian product by an Australian owned company. In addition, it will be Golden Circle’s innovative marketing techniques, flavours, packaging and delivery systems that will ensure the organisations commitment to meet the needs and desires of consumers today and in the years to come.
6.4 Company resources
4 Brand Equity: Golden Circle’s core competency is its brand name. The Golden Circle brand is among the top 15 on Australia's supermarket shelves and is one of the most recognised Australian-owned companies.
5 Regarded as producer of high quality products: The brand has been synonymous with providing families with high quality, value-for-money products.
6 Continuous R&D effort: Golden Circle continues to support the lifestyle of Australian families with innovative beverage, meal and snack solutions.
7 Specialization: Golden Circle is well known as a tropical fruit specialist, especially pineapple, although pineapple products are now only 20% of its product range.
8 High Standard inventory: Golden Circle has a paperless, computerised inventory management system
9 Expansion to Overseas markets: Australia is the principal market for Golden Circle products, however, it exports to New Zealand, Pacific Islands, Japan, Singapore, Sri Lanka, Hong Kong, China, Indonesia, Philippines, New Guinea, New Caledonia, Solomon Islands, Vanuatu, Fiji and Western Samoa.
6.5 SWOT ANALYSIS
6.5.1 Strengths of Golden Circle
1 Golden Circle is the leading brand in fruit juice industry
2 Golden Circle’s strong brand equity as a reliable beverage manufacturer
3 Golden Circle currently holds number two position in the Australian fruit juice market
4 Golden Circle’s extensive and established distribution channels and retail networks.
5 Positive company image projected to the Australian public due to Golden Circle being an Australian owned company. In addition, Golden Circle is able to capitalise on its close access and consistent supplies of local fresh fruits
6 Knowledge of production of range of beverages that extend from juice to soft drinks
6.5.2 Weakness of Golden Circle
1 Although Golden Circle is the brand leader in fruit juice, it does not possess the largest market share in the fruit juice industry
2 Golden Circle lacks product differentiation, hence
6.5.3 Marketplace Opportunities
3 Health consciousness of the Australian market is increasing
4 Expanding market for fruit juice, as a substitute for carbonates
5 Demand for innovation in fruit juice is increasing
6 Better manufacturing environment with the continual and expected growth in the Australian labour productivity
6.5.4 Marketplace Threats
1 Strong competition from established firms like Berri Ltd and Pure & Natural Beverages who may venture into similar products
2 Growing popularity of Juice bars.
6.6 BCG Matrix
(.....) not done yet : p
Tuesday, September 18, 2007
5.0 EXTERNAL MARKET ENVIRONMENT
The introduction of the goods and services tax (GST) in July 2000 has affected many Australian businesses until today. The GST has a major impact on many aspects in which businesses operate, as they are now responsible for collecting tax on behalf of the government.
5.2 Economic Environment
The Economic Survey of Australia 2001 found that Australia is one of the strongest growing economies and this trend will sustain into 2002. Economic growth for 2002-2003 is projected to increase by 3.5-4.0%. This indicates that Australia is a good location for investments. The current inflation rate is at about 2.8%. This low inflation rate also creates an attraction for overseas investments.
In addition, the Australian economy enjoyed positive economic conditions, which promoted consumer confidence and influenced the growing consumption of consumer including soft drinks and fruit juices. This can be seen by the relatively healthy soft drink sales at on-trade, as higher disposable incomes increased expenditure on discretional activities such as entertainment.
5.3 Labour Conditions
Australia is one of the few economies that have growth in labour productivity. Australian labour conditions and productivity is predicted for continued strong performance during 2002-2003. Labour productivity in the market sector rose by 0.8% in June 2001. It is expected to rise by 1.2% throughout the year (Australian Trade Commission). Therefore, businesses that set up production facilities in Australia stand to benefit in the long run.
5.4 Demographic Environment
Growth in two-income families is seeing consumers with higher purchasing power and becoming more sophisticated in their tastes. Consumers are demanding fresher, healthier, and more nutritious food. They are also looking for convenience and fast foods. Whatever the level of processing, consumers also want products with flavour that contain quality and nutritious ingredients.
5.5 Technological Environment
The Australian federal and state governments are now continuously encouraging businesses to spend more money on R&D. Australia has a high Internet penetration and people with high-speed Internet access are growing. By November 2000, about 56% Australian households had access to a computer at home. Therefore, it is quite convenient to advertise our products via the Internet. Despite this trend, the Australian government also protects traditional T.V. broadcasters (ABS).
5.6 Cultural Environment
Australia can be considered as the one of the world’s multicultural nations. Although English is considered the national language, there are more than 200 languages spoken in Australia (Australia Trade Commission 2003). Hence, Australia would be very favourable location to introduce a product that is of Korean origin, particularly when there is a large population of Asians in Australia who would prefer this fruit drink that is based on the similar product which is available in Asia.
5.7 Legal Environment
The processes of deregulation and regulation in Australia, has led to significant changes in the legal framework within which businesses operate. In Australia, there are no anti-trust legislations but there are trade practices for companies to adhere to. The Australian Competition and Consumer Commission (ACCC) are responsible for passing down the laws that prevent unfair competition in the marketplace. This provides a stable business environment in Australia.
On-trade sales of soft drinks and juices would be assisted by strict drink-driving laws, which place a limit on the amount of alcohol someone driving a car might have in their system. This limit is strictly enforced, with constant random breath tests being conducted by police throughout the country. There are strict penalties, including large fines, suspension of licence and even jail terms for those convicted of a drink-driving offence. This atmosphere persuades a large number of people to visit on-trade outlets to purchase soft drinks, such as juices.
4.0 COMPETITIVE ANALYSIS
In analysing the competitors, it was found that the major competitors within the fruit juice drink market include Coca-Cola Amatil, Berri Ltd and Pure & Natural Beverages Pty Ltd. However, the major competitor Golden Circle faces within the fruit juice drink market is Berri Ltd. Berri Ltd lead in overall fruit juice, accounting for almost 51% of off-trade volume sales in 2001. Berri’s leading brands such as Daily Juice, Berri, Australian Fresh, Just Juice, Prima, Sunrise, Squeeze, and Sunburst have helped to strengthen its overall position in fruit juice.
Berri has managed to stay in business without being taken over. With its consolidation led strategy, Berri has managed to stay in business and reduce competition through acquisition of National Foods Juice, in October 1999. This has helped the company to achieve economies of scale and operate competitively against the other major players. One of Berri’s additional strengths is its well-established plants that are strategically located to ensure efficiency in its distribution throughout the country.
However, whilst Berri dominates fruit juice with more than half of total volume share, it does not own the leading brand. Golden Circle retains the leading place, accounting for 16% of total juice sales. Therefore, it will be through vigorous competition, innovative marketing techniques, flavours, packaging and delivery systems that will ensure Golden Circle become not only the leading brand, but also leading company in Australian fruit juice.
Monday, September 17, 2007
3.0 CUSTOMER ANALYSIS
3.1 Segmenting Dimensions
3.1.1 Geographic Segmentation
Information from ABS shows that Australia is divided into six states and two territories. The six states are New South Wales (NSW), Victoria, Queensland, Southern Australia, Western Australia and Tasmania. Main bulk of the population is resided in NSW and Victoria. With 84.72% of urbanization in Australia, most households purchases most of their products from shopping centres or retail stores.
3.1.2 Demographic Segmentation
ABS statistics show that the number of the population aged between 10-19 years is slowly increasing. This age group consists of 2.6 million consumers. The group from 20-34 years has fallen during the 1990s. But there will be significant increases between the 40 and 50 age group, as the baby-boom generation will move into this sector. By the end of the 20th century the 50 to 64 age group increased by 26%. Therefore it is essential that the baby-boom generation be taken into consideration in the marketing mix, especially promotion (ABS).
Australian statistics shows that the average weekly income for males is $780.60 and for females it is $521.50. Moreover, both high-income earners and low-income earners are increasing significantly (The Economic Survey of Australia 2001). This suggests that consumers have higher purchasing power.
3.1.3 Psychographic Segmentation
As there is an increase in the average Australian wage (ABS), people now have more disposable income. As a result, and from our survey, consumers are more willing to purchase new products put out in the market. ‘Real Fruits’ will be a new product available, and the unique taste and flavours will appeal to the Australian population.
3.1.4 Behavioural Segmentation
Deglos Consultancy surveyed a sample size of 50 people to obtain more knowledge of consumer behaviour (Appendix 1). Results show that 65% of people purchases fruit juice products from supermarkets, 25% from retail outlets and 10% from other outlets, such as vending machines, cafes/restaurants and kiosks. 60% purchased fruit juice products twice a week, 25% once a week and 15% once every other time. 45% buy fruit juice simply for the taste and 35% buy it primarily for health benefits and 20% buy fruit juice for thirst. 20% also said that packaging, such as glass for fruit juice drinks is more attractive. In addition, 73% of those surveyed, stated they would be prepared to try a new fruit juice that contained real fruit pieces. 75% of them play sports and other outdoor games as their hobbies. Finally, it was important to note that traditional flavours, such as ‘Orange’ was the most popular, accounting for almost 70% of those surveyed (Kotler et al 2001).
3.2 Key Influences on Buying Purchase
3.2.1 Psychological Influences
Consumers buying actions are often affected by motivation, perception, and learning. Motivations are associated with individuals’ needs and wants. Theses desires can lead to a drive, where they will actively purchase the product or service. The needs can be classified into four major categories, namely Physiological, Safety, Social and Personal needs.
“Golden Circle’s Real Fruits” is a fruit juice drink which is distinctively classified as a physiological need in consumers’ psychological influences. It is essential for the marketing plan to meet consumers’ perceptions, provoke a learning experience and ultimately encourage needs and wants from them; hence drives of purchasing can be achieved as a result.
3.2.2 Social Influences
Consumers’ buying behaviour can be influenced through his/her interactions with family, social class, culture, reference group, and opinion leaders. In the juice industry, consumers’ social influences would not affect Golden Circle’s Real Fruits’ sales level significantly; however, since the product is in its market introduction stage, it is important for Golden Circle’s Real Fruits to realise the benefits of having a reference group or opinion leader who recommends Golden Circle’s Real Fruits. This is due to the fact that consumers tend to trust and follow reference groups and opinion leaders.
3.3 Type of Buying Situation
The product is likely to be bought by the customer in a situation where customers are tired of similar products, and want to try something new and different. Golden Circle will make the environment of where the new products are to be sold as appealing as possible, so that it would arouse customers to come and try the new product, in which they would include décor and any other visual cues to which a customer may be exposed during the service encounter.
3.4 Relationships with Customers
Golden Circle will expect competitors to begin offering products with similar concept to “Real Fruit”, therefore it should seek ways to serve and strengthen relationship with existing customers to develop a competitive advantage. This can be done by satisfying customers’ needs and expectations and create value through consistently offering high quality products to keep them loyal to the company, which will lead to increase profit for Golden Circle. Consumers in fruit juice market would be motivated by different dimensions; health conscious consumers would be interested in nutrition, families with children are interested in bulk buying and economic value, children are interested in fun packaging. Therefore, Golden Circle’s continuous research and development will be essential to build strong customer relationship.
2.0 CURRENT MARKETING SITUATIONS ANALYSIS
The range of non-alcoholic beverages includes carbonated diet and regular soft drinks, sports and isotonic drinks, bottled and packaged waters, fruit juices and drinks and cordials. Fruit juice makes up 25% of this segment (Australasian Soft Drink Association).
Health related issues are major reasons for the growth in the fruit juice drink sector. For example, changes in consumer lifestyle have helped sustain sales of soft drinks, despite their mature nature. Changes towards healthier lifestyles saw an increasing shift towards a healthier diet. This has consistently raised the profile of fruit juice.
Consumers increasingly perceive fruit juice as a healthier substitute for mainstream carbonates. Sales of fruit juice grew by around 2% in current value and volume terms in 2002 to reach sales of A$1.2 billion and 638 million litres (Euromonitor International, Global Market Information Database).
In addition, fruit juice proved very popular in Australia as a breakfast drink during the review period. The vast majority of Australian households purchase such products on a regular basis. Fruit juice is relatively mature with industry sources suggesting that the current household penetration rate of these products is as high as 95%. Euromonitor estimates that per capita annual consumption stands at 34 litres in 2002.
As consumers become more health conscious, manufacturers will seek to increase sales by launching functional juices to inject sales into the matured fruit juice.
1.0 INTRODUCTION
The Australian non-alcoholic beverages industry is one of the most dynamic and progressive sectors of the food and beverage market. At the beginning of this new century, soft drinks of all types were the number one item in consumers’ supermarket shopping trolleys and the number one preferred beverage of choice.
In the fruit juice market, Berri Ltd and Golden Circle are the leading companies in this industry. Despite the fact that Golden Circle has better brand equity than Berri Ltd, large market share is dominated by Berri Ltd. It is for this reason that this marketing plan is prepared for Golden Circle, to enable them to obtain significant market share whilst maintaining their high brand equity. This is a primary objective for Golden Circle, and this goal can be achieved through the introduction of a unique product to meet customer’s ever-changing requirements of taste.
Throughout this marketing plan, situational, customer and competitor analysis will be conducted, followed by examination of issues relating to the external environment and marketing information requirements. Furthermore, specific detail will be given to the company analysis of Golden Circle, followed by extensive discussion of the new product’s target market and marketing mix strategies.
Finally, implementation and control procedures are necessary to be considered, leading to particulars of forecasting and estimates of cost and sales. Furthermore an action plan will provide an outline of the activities to be carried out to fulfil the requirements needed for the successful implementations of marketing strategies proposed.
Executive Summary
In evaluating the macro environment of the organisation, it is evident that Golden Circle has the potential to strengthen its current market position, whilst retaining brand equity. The plan is to introduce a new product to a present market (24% reconstituted juice) which is currently in decline stages. The new product ‘Real Fruits’ is so unique and innovative that it will attract sufficient number of consumers and recover the declining sector of the 24% reconstituted juice. Overall, this will present Golden Circle with a product development opportunity.
Star that not far away!
Star that not far away! I am studying Marketing management. In next few weeks, I will do a research about Australian non-alcoholic beverages industry. I will keep adding new contents to finish this report. well, if u have any suggestion use the comments button. : D
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