Arnott’s Biscuits Limited
Arnott’s Biscuits Limited is Australia’s largest manufacturer of biscuits and the second-largest provider of snack food. It is located in Asia Pacific Regions such as Malaysia, Singapore, New Zealand, Japan, and Indonesia. One of the company was invested was Campbell Soup company and its iconic brands of the United States. Therefore, the Campbell Soup company as identical with Arnotts Company selling the Nyam Nyam product with various types of flavor such as Teddy Choco chips, Rice Crispy, Sugar rice, Choco berry, Strawberry, and Chocolate (Corones, 2016). In this report, the discussion has been focussing on a marketing plan and highlighting the target market along with several marketing strategies utilized by the brand. The first part is the background of the company, which is giving an overview of their products, market share, and sections of the regions, which they are covering. The second part is the SWOT analysis that will analyze strength, weakness, opportunities, and threats of the company. The third part is the Marketing Mix where the report will discuss the 4Ps i.e. Product, Price, Place, and Promotion. The third part is STP strategy, which examine the marketing to prioritize intentions and build engagement with different audiences, which are enlightened for the smooth functioning of business innovativeness (Jaeger, Axten, Wohlers & Sun?Waterhouse, 2009).
Arnott’s Biscuits Limited is an organization who is helping over a decade of years in manufacturing biscuits as well as snacks in the Australian Market. The organization has operated as a small bakery primarily in its home state in Hunter Street, North of Sydney as well as New South Wales and Newcastle. They supply biscuits, bread, as well as pies in local town people. They have manufacturing plants in Virginia, Queensland and Shepparton, Victoria in which they manufacture only plain, cream, and savoury biscuits. It is a well-known recognized brand in Australia and universally for manufacturing biscuits. Some of the major products include Caramel Crown, Chocolate Dessert, Bush Biscuits, and Chocolate Butternut Snap (Axten, Wohlers & Wegrzyn, 2008). In the 1960s, a sequence of acquisitions and amalgamations in the Australian market resulted in the production of the Australian Biscuit Company Ltd. It includes State-of-the-art manufacturing creates processes for the same. It is conveyed over 40 countries as well as market share, profitability, and growth. They also indulge in maintaining an environmental policy to satisfy its commitment to operate a business in a method that esteems and protect the family. They also put efforts on decreasing energy consumption and reducing the utilization of packaging material and safeguard the environmental influences of consumer packaging waste are under control. It employs more than 2400 staff associates that assist the maximun interest of the organization. They invest greatly in brand promotion and marketing. Their only motive is to produce great value and outstanding service to millions of Australians. They are moving towards a sustainable future, forming a long-lasting relationship and supporting local jobs in the food industry. Moreover, awareness concerning the consumption of a healthy and balanced diet, enhancing young age population along with growing demand and changing lifestyle which is expected to push demand for a biscuit in future (Martin, Lang, Wong & Martin, 2003).
Marketing Plan Objective
Arnott’s has a target to expand and widen their sale to those customers, who have not utilized any product of Arnott’s. Therefore the main objective of the marketing plan:-
- To develop awareness for Arnott’s Biscuits Limited.
- To enhance brand recognition for the Arnott’s Biscuits.
- To expand the nationwide chain of their store globally(Gamble, Harker, Jaeger, White, Bava, Beresford & Woolf, 2010).
Arnott’s Biscuit Company productions market and sell exclusive user products. The organization has a robust function with extraordinary abilities in new advancement. They have been facing a different problem with the economic recession in the recent past. It identifies all the key strength, weakness, opportunity, and threat that may affect the company most. The analysis is explained in below points:-
Arnott’s is the market leader of the biscuit industry of Australia with a vast number of products. The strength is that they have a strong focus on anticipating and reacting to trend. They understand the needs and wants of customers and they are moving forward to providing great and delicious snacks and beverages to customers for over 135 years of growth and sustained to do so for a generation to come. For over many years of expansion, the quality and flavor are always marked well by the consumer. On the other hand, they have huge factories and employers who always work hard to get a higher value (Thomson, Brinkworth, Noakes & Buckley, 2016). They accumulate the top ingredients from various countries where they localize their factories. They now become the biggest market leader and one of the major desired brands not only in Australia but also in the world.
It has become one of the most popular and recognized brands of biscuit in Australia and yet has to deal with troubles from not only by competitors. Collecting data from the customer and gathering the feedback are the two main weaknesses. With the big brand, as Arnott’s sustain with the important market share is the first and foremost objective of them. They utilize locally obtained Australian Ingredients and a number of costly products accessible in the market. On the other hand, they are robust in pretending and reacting to trend but this is not enough with the big brands. Their main weakness is the price, which always remain greater than other biscuit businesses. The prices of certain products are not economical (Sutton, Kamvounias & Taylor, 2015).
The company has the opportunity to increase its worldwide system particularly in the Asia-Pacific region with the introduction of Tim Tam’s into the Chinese market. Therefore, there are incredible chances for this industry in increasing new customer market, particularly in India and China. Furthermore, it is essential to maintain strong sales to grow and to produce a new market in there. It increases footprint in all countries presently present, which can upturn fortified products and can certainly expand to the breakfast and cereal segment. They can also enter into the new category of cookies. On the other hand, improvement in product and packaging proposal provides an opportunity to regenerate itself in the Australian market. The organization has been advancing its framework and increasing its spending productivity in the company, which will generate important saving. As they realize that the cost saving is a significant part of investing in the brands which can enlighten their growth opportunities (Boots, Tiggemann & Corsini, 2018).
SWOT Analysis
Arnott’s have specific issues with the commodities cost. As of the greater price of agricultural supplies such as food oil or wheat that will still influence the outcome, so it makes the price always improving, which can undesirably influence the productivity of the company. Therefore, the outcome is that the net profit is reduced last year. In addition, other threats of the company are strong pricing burden from competitors i.e. GOOD Man Limited the price, which is greater than other product so it may make customer change their mind of perception. The entry of international companies such as Kraft, which is strong competition from Arnott’s. Less expensive products may replace it and this can harm the company’s reputation. They have positioned themselves in a very congested part of the market; so many brands have the control to take the market from them. It can be unappealing to the future, and this may influence the sustainability, profitability, and predictability (Dickenson, 2016).
They believe in maintaining consumers with product standardization as well as an alteration for the same. It safeguards a high product standard with unique taste in the most suitable way. While marketing their Arnott’s requires designing a marketing mix, which is effective and efficient and includes product, price, place, and promotion to accomplish the desired goal.
Arnott’s Biscuit Limited delivers a full range of products to its potential targeted consumers. It offers a variety of chocolates, spanning of plain biscuits as well as fruits and creams (Appiah & Amoako, 2016).
- Chocolate Biscuits
- Shapes
- Crispbread
- Tim Tam
- Sweet Biscuits
- Savory Biscuits
- Crackers
It is important to recognize the product at various levels; at the core, the product is a biscuit to be spent with coffee. This core product is enclosed by another level of proof of identity, which permits the brand to be familiar as one of quality. It is positioned by quality and benefits and quality where the range of biscuits always ensured of the highest quality and fresh. It is positioned by price as people often associate a product’s price with its quality (Fuller, Fong, Gerofi, Leung, Leung, Denyer & Caterson, 2016).
Arnott’s Biscuit Limited sorts in offering the maximum interest of potential consumers. They also implement an assortment of pricing policies to signify high quality and distinguish itself from another assortment of biscuits. Consumers believe that a higher price can be connected with better quality. It remained a high-class product as the relatively high price can be transformed in order to take full advantage of profits market competitor-based pricing in relation to opponents in order to stay competitive. It is been the most common brand in Australia taking approximately 60% of the biscuit market share, it is a differentiated product challenging based on price. However, to sustain the market leader position, the price should be fixed just a bit greater, so that the superior brand image could be attained in growing market share. They could still make a considerable profit utilizing the approach as it has already accomplished efficiency, cost advantages, and economies of scale (Khamis, 2016).
Marketing Mix
They serve its consumers in and around Australia. It sets its product in high quality standard as well as high esteem stores in case of supermarket sessions in an efficient method. They are talented to utilize the brand and value to gain access to direct networks, where the product is distributed to municipal areas, along with shopping centers across the country. The distribution of the brand is concentrated, where the product is obtainable at all supermarkets and covering over 95% of national supermarkets, which embrace the product (Leitch & Merlot, 2018). However, the rural penetration of the organization is still less because of the encounters of the distribution in a rural area:-
- FMCG distribution network
- Breaking the majority is applied
- Strong delivery in the country
- Rural spreading need to be stronger
Arnott’s Biscuit Limited intends at familiarizing products with the assistance of internet advertisements and TV. It has engaged various advertising strategies to generate awareness, and ultimately persuade convection to acquire their product. The utilization of nationally television advertisements to reposition the brand has seen a comeback. It has shared with regular advertisements in respect food as well as fashion magazines. It is required for the organization for connecting in digital promotions in the system of social networking sites (Jaeger, Cardello, Jin, Hunter, Roigard & Hedderley, 2017). They do not promote food products to kids under the age of 12 unless of the resulting standards:
- It signifies wellbeing dietary habits as well as recognized systematic and government criteria for the same.
- It indulges in fitness events in the upcoming future.
- Promotion, as well as marketing advertisement happenings, state in a healthy lifestyle. It plans in tempting for audience with the aid of comminication in a global manner.
The television ads depict the target market of success businesspersons and women in the post of secretaries, lawyers, and other executive roles. They also made utilization of ‘below the line’ promotion methods, point-of-purchase displays, and free sampling which has commonly occurred to boost other styles of the Arnott’s biscuit via online grocers (Kim, Prescott & Kim, 2017).
The Arnott’s utilizes the market segmentation to subdivide the target into various categories, which are based on their demands, interest, and needs. It helps the company to recognize the aspects of their target market.
Arnott’s segmented in embracing quality concern customers for the same (Atkinson, 2017). Occasionally customers involve those whose diet pattern eliminates biscuit, for example, teens under 12 years old who are more concern towards the perception of “balanced diet”. They have created a strong obligation in responsible marketing to teenagers because of healthy diet sensitivity. Non-consumers involve people with obesity, non-sweet lover, high-calories food, diabetes, and health concern people who refuse to intake high calories food are excluded. From the segmentation analysis, it can be stated that customer attitudes and morals are multifaceted and thus difficult to respond properly. Therefore, the concept of value-creation is very essential to gain feedback, seek customer benefit experience, and finally accomplish differentiation, adaptability, and competitiveness (Givoni, 2014).
Arnott’s targets medium as well as the higher-class customers. It tries focussing on teens under the age of 12. The organization targets Brazilian food market that possesses the supreme competitor. It intends at offering high standard product line and concentrating on getting into the market. Their plan is to make Arnott’s biscuits as High Standard brand, which can be recognized by, all over the world. It states that by qualifying the high price of the products, safeguards collective value in the final product in a huge manner (Marx, Isenring & Lohning, 2017). It is based on demographic, geographic, psychographic, and behavioral, which are explained below-
- Demographic- They are concentrating on the age group that differs from customer stretching from 12 to 42 years, gender involves both male and female, and incomes involves consumer with a monthly income of $3500.
- Geographic- Arnott’s concentrates on main cities in and around Brazil. It largely gives emphasis on the customer profile for the smooth running of the business.
- Psychographic- They targets customer that strive for quality products and superior class consumers who do not mind in remunerating additional for buying of the products.
- Behavioral- Arnott’s consumes products on a continuous basis(Stangis & Smith, 2017).
Arnott’s binds to the wellbeing of Australian people. The major important factor is brand positioning. They mostly position themselves as a producer of food with offering high quality and cost benefits to their customers. It helps the company to capture a huge market share (Humphreys, McFarlane, Burt, Kelly, Weatherall & Burrell, 2017).
Conclusion
From the above, it is concluded that the marketing plan plays a significant role in the competitive world. Every company needs a strong marketing plan to operate the market or for entering into a new market. It is significant to comprehend the point that Arnott’s reflects as the biggest brand in the food sector. It is observed that the organization targets teenagers who are involved in consuming delicious biscuits. This is the reason that they creates and manufacturer’s healthy and tasty biscuits for the children. In the final section, marketing mix and SWOT analysis are explained with appropriate justification. It is essential to use extra spending on advertising activities so that customers stay conscious of new products as well as services. This organization should try to attain innovative concepts for further improvement in any form. It should conduct market research in managing the desires as well as inclinations of the target customers. They target superior class so it is essential to concentrate on superiority rather on capacity. It is because premium consumers are set to pay any value for the superior quality. These individual are fitness concern and depend on exclusive products. They should try in recollecting the prevailing consumers because they are profitable in contrast with the attainment of new consumers in the market.
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