Effective Marketing Strategy For Plant-based Food Products: A Case Study On Cashews In Australia

Analysis of the Australian Food Industry

As the competition in the market is increasing in a drastic manner, it is imperative put stress in the implementation of effective marketing strategy which can have a firm impact on strengthening the position of a company in the market. This is the way, through which strong relationship with the customers can be maintained by generating positive perception among them. According to the discussion of Solomon et al. (2014) increased awareness and education among the customers are playing a pivotal role in the way of modifying the contemporary food industry of Australia. The demand of high quality and nutritious food products is increasing in a rapid manner. Australia is one of the most significant nations around the world, which is being considered as the largest plant-based food products (Australian Organic Food Directory. 2018).

This paper focuses on effective marketing strategy of plant-based food products. Cashew has been chosen as the product. Detailed analysis of the Australian food industry along with the product will be made. This paper will also shade light on the consumer behavior along with the role, played by consumer decision making process. The way, through which the product can be positioned in the market will be highlighted. Both marketing mix and point of scale strategy in the context of Cashew will be discussed at the last portion of the paper.      

The contemporary food industry of Australia is changing in a fastest rate due to the changing demand of the customers. The customers are becoming much more health conscious in recent times. The inclusion of trendy diet in the conventional lifestyle is leading the people to be choosier while consuming food. It has been reported that Australia is the third fastest growing nations across the globe, where the rate of consuming plant based food products is considerably high (SBS News. 2018). The customers are becoming more inclined towards consuming healthy and nutritious food free from sugar and any kind of preservatives. Researchers are showing that there are more than 2 millions of people, aged in between 18 are becoming more inclined towards following meat-free diet. Baker (2014) commented that food ethics, sustainability and improved health consciousness are the driving forces, leading the people to follow a plant- based diet.

As the plants are rich source of nutrients that are highly required for promoting health and well-being. This is the reason, for which Australians are showing interest in consuming plant based food. As cashews are the largest source of high quality of nutrients, consumption of rate of this product is also very high. Australia is one of the largest scale cashew growers, which are aiming to amplify their plantation in order to attain success. It has been reported that cashew plant in Australia hold almost 1,030 hectare property in North Queensland (ABC News. 2018).  

Consumer Behavior and Market Segmentation

Market segmentation is defined as the process of segmenting the market in accordance with the needs and requirements of the customers. Hansen et al. (2017) shaded light on the fact that age, socio-economic background and level of education among the customers play a significant role in the appropriate segmentation of the customer. One of the greatest forces, which drive the companies to implement effective market segmentation strategy is the behavior of the customers. Increased trend among the customers towards consuming healthy food products is acting as a driving force behind such sustainable development of cashew industry. As discussed by Hartline and Ferrell (2014) the latest trend to have healthy and nutritious food products is driving the customers to consume more number of customers due to its rich nutritional value. Therefore, it is imperative to segment the Australian market in accordance with the requirements of the customers.

Australian cashew industry has mainly targeted that group of customer who are extremely focused towards consuming healthy and nutritious products. Wensley (2016) shaded light on the fact that this segment of market generally involves those group of customers, who are extremely committed towards consuming those products that have rich nutritional value. It is important to note in this context that, as cashew is rich with proteins and vitamins, this group of customers has been targeted. This is one of the lowest fiber nuts, rich with additional vitamins and minerals. Cashew plays a significant role in protecting the heart from any kind of harmful diseases by lowering the level of blood pressure. As the elderly people aged in between 55 to 69 are much more vulnerable towards heart disease, this group of people is to be targeted in order to promote cashews in the market. Zeriti et al. (2014) put stress on the fact that with the assistance of effective market segmentation strategy, competitive advantage can be attained, which is very much needed to strengthen the position of a company in the market.  

Table 1: Market Segmentation of Cashews

(Source: ABC News. 2018)

Consumer decision making process is defined as the mode, through which the customers explore their fundamental requirements and gather valuable information regarding a products, which are the key in the making of purchasing decision. Culture, social value along with the group are some of the most important factor that drive consumer decision making process. According to according to Sacks et al. (2015) it is the general tendency among the customers to perceive the voluble information regarding a product before making their purchasing decision. Prompt emergence of internet and technology is making it easy for the customers to get valuable data about the product. Detailed information regarding the cashew industry of Australia is available online. This is supporting the customers to learn about the features of cashew. Such detailed information is playing a significant role in encouraging the customers to buy the product.

Consumer Decision Making Process

Figure 1: Consumer decision making process of cashews

(Source: Australian Organic Food Directory. 2018)

The inclusion of this process play a pivotal role in keeping the customers more attracted towards the products. For instance, taste of a product is a major factor in making it more lucrative among the customers. Lucrative taste of the cashews is one of the most significant factors, driving wide range of customers to make their buying decision. This is the way, through which the brand identity of cashews is also being strengthened, which can have a firm impact on keeping the customers inclined towards a product. In addition to that, Atkins and Bowler (2016) highlighted the fact that rich nutritional value of cashew is also a vital factor in driving the interest of the customers. Factors such as protein, mineral, iron, sodium and carbohydrate have made the product to be a great source of nutrients. This is the reason, for which customers are becoming more inclined towards cashews.   

Marketing strategy comprises of all the goals and objective of an organization related to marketing along with a comprehensive business plan to compete all the marketing based activity in a compressive manner. This is the way, through which the position of a company in the market can also be amplified. Marketing strategy of cashew nuts is discussed below. 

Product:

The quality of product along with pocket friendly price are two of the most significant factors in catching the attention of the customers. This is the mode of keeping the customers happy and satisfied. Jenkin et al. (2014) opined that intense consciousness towards health is acting as a driving force behind reshaping the food industry of Australia. As product is one of the most significant factors of Australia, it is imperative to produce the product in an appropriate manner. There are multiple type of soils that can be used in order to produce cashews. However, well-drained and deep and friable soils is best for strengthening the root system. In addition, deep salt and red latosols are being considered as the ideal factor for the development of cashew seeds. There are multiple ways, through which the production of cashew seeds can be initiated.

Self-pollination and open pollination are two of the most effective ways, through which the cashew can be produced in an effective manner. Proper method of fertilizing is needed to be implemented for the appropriate production of cashew seeds. As discussed by McDonald and Wilson (2016) the condition of soil along with the climate are also a very vital factor in determining the stage of development of cashew seeds. As Queensland is the greatest source of cashew production, it is imperative to execute mango-fertilizing schedule in order to attain sustainable growth of the corp.

Marketing Strategy for Cashews

Place:

Product positioning and branding are the critical factors in driving the attention of the customers. As the health related awareness among the customers is increasing in a rapid manner, cashews are gaining much admiration in recent times. Equipped with rich vitamin and minerals, this is the one of the major sources of preventing heart diseases. Fill and Turnbull (2016) stated that there lies the way, through which cashews can be placed in the market. The rate of high blood pressure and heart diseases are considerably high in Australia. This rate of significantly high among the people aged in between 55 to 69. Therefore, Cashews can be placed in this group of people. Bendle et al. (2016) stressed on the ground that As this is a greatest source of rich proteins and nutrients, Cashews can also be placed among children. This is the way, through which a much number of customers can be attained. 

Price:

Price of a product is also a critical factor in attracting a vast range of customers. Thus, it is imperative for the Australian cashew industry to follow premium pricing strategy for the sake of setting price as per the affordability of the target market.    

Promotion:

Appropriate packaging of the product also plays a major role in catching the attention of the customers. According to Kumar (2016) the containers of Cashews are equipped with lucrative image along with its nutritional value, which help the customers to make their purchasing decision. The product can be promoted in different healthy campaigns along with diet management session.  

 Table 2: Brand positioning of cashews

(Source: Atkins and Bowler 2016

Figure 2: Brand positioning of cashews

(Source: Author)

Proper branding of product plays a significant role in engaging a vast range of customers and thereby increasing rate of profitability. This is the key of gaining competitive advantage, which is very much needed to strengthen its public image.

The ongoing trend among customers towards purchasing a product is the major factor towards promoting it in an appropriate manner. There lies the significance of point of scale.  McDonald and Wilson (2016) observed that point of scale, in its simplest form can also be considered as point of purchase, is regarded as the situation, place along with a time, when a transaction in the retail sector is being made. Behavior of the customers play a significant role in exploring the durability of point of scale. Therefore, it is imperative to generate positive behavior among the customers for the sake of attaining higher rate at point of scale. As the customers are becoming more inclined towards eating healthy and nutritious food, it is imperative to offer them with high quality of food. This is the key of protecting their health and well-being and thus keep them inclined towards Cashews. The customers must also be informed regularly regarding the nutritional content of Cashews, which can help them to take prompt purchasing decision. This is the way, through which brand loyalty can also be strengthened (Hansen et al. 2017). As salt is extremely dangerous for high blood pressure, it is imperative to avoid salt while packaging Cashews.    

Marketing Mix and Point of Scale Strategy

Conclusion: 

From the above discussion, it can be concluded by saying that implementation of appropriate marketing strategy is very much needed in order to promote a product in the market and thus catch the attention of the customers. As the majority of Australian population is showing their concern towards consuming plant based food in order to protect their health and well-being. Cashew is one of the famous plant based food, being consumed by wide range of customers. Integrated with rich vitamins and minerals, Cashew is equipped heavily with rich nutritional content. In order to promote the product properly in the market, initially market segmentation is needed to be carried out. This is the great food for lowering blood pressure level. As the rate of heart disease is significantly high among the people, aged in between 55-69, it is imperative to target this range of people. Appropriate pricing strategy is also be implemented for catching the attention of the customers.   

Reference List:

ABC News. 2018. Is there cash in cashews? [online] Available at: https://www.abc.net.au/news/2011-03-18/is-there-cash-in-cashews/2653046 [Accessed 3 Oct. 2018].

Atkins, P. and Bowler, I., 2016. Food in society: economy, culture, geography. Routledge.

Australian Organic Food Directory. 2018. Plant Based Brands. [online] Available at: https://www.organicfooddirectory.com.au/directory/listing/plant-based-brands [Accessed 3 Oct. 2018].

Baker, M.J., 2014. Marketing strategy and management. Macmillan International Higher Education.

Bendle, N.T., Farris, P.W., Pfeifer, P.E. and Reibstein, D.J., 2016. Marketing metrics: The manager’s guide to measuring marketing performance. Pearson Education.

Fill, C. and Turnbull, S.L., 2016. Marketing communications: brands, experiences and participation. Pearson.

Hansen, J.M., McDonald, R.E. and Mitchell, R.K., 2017. Marketing Benchmarking, Triangulated Isomorphism, and Firm Strategy. In Creating Marketing Magic and Innovative Future Marketing Trends, 11(4), pp. 533-543.

Hartline, M.D. and Ferrell, O.C., 2014. Marketing Strategy: Text and Cases. CRC Press.  

Jenkin, G., Madhvani, N., Signal, L. and Bowers, S., 2014. A systematic review of persuasive marketing techniques to promote food to children on television. Obesity reviews, 15(4), pp.281-293.

Kumar, V., 2015. Evolution of marketing as a discipline: What has happened and what to look out for. Journal of Marketing, 79(1), pp.1-9.

McDonald, M. and Wilson, H., 2016. Marketing Plans: How to prepare them, how to profit from them. John Wiley & Sons.

Sacks, G., Mialon, M., Vandevijvere, S., Trevena, H., Snowdon, W., Crino, M. and Swinburn, B., 2015. Comparison of food industry policies and commitments on marketing to children and product (re) formulation in Australia, New Zealand and Fiji. Critical Public Health, 25(3), pp.299-319.

SBS News. 2018. Vegan trend takes hold in Australia. [online] Available at: https://www.sbs.com.au/news/vegan-trend-takes-hold-in-australia [Accessed 3 Oct. 2018].

Solomon, M.R., Dahl, D.W., White, K., Zaichkowsky, J.L. and Polegato, R., 2014. Consumer behavior: Buying, having, and being (Vol. 10). London: Pearson.

Wensley, R., 2016. The basics of marketing strategy. Routledge.

Zeriti, A., Robson, M.J., Spyropoulou, S. and Leonidou, C.N., 2014. Sustainable export marketing strategy fit and performance. Journal of International Marketing, 22(4), pp.44-66.

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