Marketing Strategy for Arnott's Tim Tam Chill Me Biscuit

This article discusses the marketing strategy for Arnott's Tim Tam Chill Me biscuit, a new product in the Australian biscuit and confectionery industry. It includes market segmentation, target market, decision-making process, positioning, marketing mix, and strategies to interrupt routine behaviour at the point-of-sale. The target market is young people aged between 12 and 25, and the product is positioned as a luxury biscuit with a unique touch of Messina's gelato. Arnott's uses price skimming strategy, indirect distribution channels, and social media marketing to promote the product.

Running head: FOOD MARKETING
Food Marketing
Student’s name:
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Author’s note:

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Table of Contents
1. Brief background to the industry and product........................................................................2
2. Identification and profiling of key market segments and consumer decision-making process
....................................................................................................................................................3
2.1 Market segmentation and Target market..........................................................................3
2.2 Decision-making for the product category.......................................................................5
3. Development of the marketing strategy of selected product..................................................6
3.1 Positioning of the product................................................................................................6
3.2 Marketing mix..................................................................................................................7
4. Development of strategies to interrupt routine behaviour at the point-of-sale......................9
4.1 Routine behaviour of customers.......................................................................................9
4.2 Interrupting routine behaviour.........................................................................................9
Reference List..........................................................................................................................11

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1. Brief background to the industry and product
Arnott’s is a famous confectioner and it started its journey in the year 1865 in
Newcastle, in Australia. It mainly supplied bread, biscuits and pies to the local people and to
the crews of the ships which docked at the port in local areas. Arnott’s likes to innovate the
food products and it is the industry leader in Australia and in New Zealand. Arnott’snew
product is Tim Tam Chill Me biscuit. This biscuit is unique in nature as this biscuit range
features innovative packaging which changes the colour once the product is exposed to
temperature level below 8 degree Celsius (Arnotts.com.au 2018). Arnott’s Tim Tam Chill Me
range is a partnership product with gelato brand Gelato Messina. Gelato Messina has been
pioneering gelato movement in Australia since the year 2002 and it uses some Messina’s
most popular flavours and Tim Tam is now gelato inspired biscuit for the pleasure of the
people. Tim Tam Chill Me is an emerging confectionary product as it has made partnership
biscuit cookies with gelato.
In Australia, biscuit and confectionery industry has been struggling for last five years
and several factors are responsible for the reason behind reduced revenue in biscuit and
confectionery industry, changing customers' dietary habit, volatile input prices and increasing
external competition. In the last five years, industry revenue has fallen almost 3% and this is
expected to drop further 3% in a current year (Ibisworld.com.au 2018). Current revenue of
biscuit and confectionery industry is AUD 800 million and in Australia, more than 51
businesses are related to biscuits and confectionary. Arnott’s has partnered with Gelato
Messina to produce something new which can attract the customers and shine as emerging
food product as well.

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2. Identification and profiling of key market segments and consumer decision-making
process
2.1 Market segmentation and Target market
Market segmentation profiling
Market
segmentation
Description Major
consumer
needs
Usage level Brand loyalty Price
sensitivity
Geographic
segmentation
Arnott’s can
segregate the
market based
on the people
who live in
urban area or
rural area.
However, the
major buyers
in this
segment tend
to live in cities
mainly,
Sydney,
Melbourne
and Adelaide.
The people
need great
taste
They consume
confectionery
products and
biscuits
several times a
week
Arnott’s is a
famous brand
in Australia
Price is
significant
factor for the
people living
in cities as
price deal is
important
Demographic
segmentation
Younger
people would
like the
Consumers
will like the
cold biscuits
Younger
people
consume the
This young
generation has
a high level of
Different price
deal is
important for

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product (Aged
between 12
and 25)
Young people
and belong
from the
middle class
are to be
targeted.
and chocolate
flavours
confectionery
products more
switching
behaviour in
brand
preference
the consumers
Psychographi
c
segmentation
Quite social,
lifestyle is
good and likes
to taste
different type
of food
products and
health-
conscious
people will be
segmented.
Educated and
aware of
health factors
and
nutritional
level would be
targeted.
Stay healthy
and consume
different taste
of food during
the leisure
time
This type of
people do not
consume the
confectionary
products on
the routine
basis and they
like to
consume
confectionary
and biscuits
occasionally
Gelato is
getting
popular in
Australia and
gelato
influence may
lead to the
better success
of Arnott's
Tim Tam
Price is not a
huge factor for
this segment
as they can
spend money
if they like the
product

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Target market:
Among the three market segment, Arnott's may target the demographic market
segment for Tim Tam Chill Me. In the Demographic market, young people aged population
aged between 12 and 25 are to be targeted. School going children can take this to school as
Tiffin and young college goers and professionals can have it. Young teenagers and young
population like to taste something new always and gelato has its own attraction among the
young generation. Young generation is aware of the hygiene and Arnott’s would target the
young people who belong from the upper class and middle class of the society who can afford
the price. Middle and upper-class people are willing to pay for premium quality biscuits. As
stated by (Goulding 2017), benefit of targeting young population is that they are more in
numbers and they share their experience fast.
2.2 Decision-making for the product category
The first step of purchasing something new is associated with identification of need
which leads the buyers to purchase products or service (Solomon et al. 2018). Arnott’s can
sell this new pack of biscuits as a break from the monotonous taste of traditional biscuits as it
offers unique taste and it fills the hunger as well.
The second stage is information gathering and customers search the information from
the personal sources, commercial sources and public sources. Arnott’s needs to promote the
products through different channels and the customers must hear the names of the products
often. Tim Tam ChillMe is a new product; therefore, the potential customers would like to
taste for once.

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The third stage is evaluating the alternativeswhich are available in the market. After
gathering the information, customers can search for the same types of products in the market.
The consumers always like to purchase the best option available for them in the market. Tim
Tam needs to advertise so that the customers only find the products on internet when they
will search for the alternative.
The fourth stage is about purchasing the product. When the customers would not find
the similar product which offers gelato taste in biscuits; the customers would definitely
purchase the product. The customers will go to the nearby shops or to the supermarkets to
purchase the products; hence it is important to distribute Tim Tam Chill me in each part of
Australia.
The fifth stage is about purchase evaluation where the customers evaluate the
purchase. Young population likes to put a review on the internet after using the service or
products (Claiborne and Sirgy 2015). The target market of Arnott's is the young generation
and they provide their experience of Tim Tam Chill Me on the internet and it may be part of
word-of-mouth publicity.
3. Development of the marketing strategy of selected product
3.1 Positioning of the product
Positioning strategy differentiates the brand from the competitors and effective
positioning determines the success of the newly launched product (Heinberg et al. 2017).
Arnott's can share the communication and intended message through positioning. Arnott's can
positions Tim Tam Chill Me as a luxury biscuit as it has a unique touch of Messina's gelato
and it promises of high quality and fine tasting biscuit. Unique taste and unique combination
of gelato with biscuit make Tim Tam Chill Me a unique one.

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Figure 1: Perceptual mapping of Tim Tam Chill Me (Arnott’s)
(Source: Self-researched)
3.2 Marketing mix
Product: Arnott’s makes Tim Tam biscuits which are delicious smooth cream
sandwiched between 2 crunchy biscuits and it is coated with Tim Tam chocolate and white
chocolate. Tim Tam has actually four ranges, Arnott’s Bites, Family Value, Classic and
Gelato Messina. Tim Tam Chill Me falls under the category of Gelato Messina. Arnott’s
offers Tim Tam Gelato Messina in choc cherry coconut, iced coffee, caramel and vanilla,
choc mint in Turkish delight flavours. Therefore, Arnott’s takes the strategy of product
differentiation as they offer the completely different type of gelato Messina which is
completely new in Australia. Time Tam Chill Me is also available in the market with
different flavours which suggest about product line stretching. Product differentiation and
product line stretching strategy have a distinct advantage to stand out from other marketers
(Greenstone 2017).

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Price: Arnott’offers Tim Tam Chill Me gelato Messina and it is new to the customers.
Arnott’s will take price skimming strategy setting the price of the product at relatively high
initial price at first; Arnott's lowers the price with the time. Price skimming strategy will
provide the benefit of having a higher return at the initial stage and the organisation will be
able to make a profit at the initial period. Price skimming is the temporal version of the
discrimination of price.
Place: Arnott’s sells the products to the open market, retail shops and in
supermarkets. Tim Tam Chill Me is going to be available in open market and in supermarkets
also. Arnott’s uses indirect distribution channels in Australia so that the end customers get the
product easily. As stated by Huang and Sarigollu (2014), indirect distribution is a condition
in which the manufacturer sells the product indirectly to the consumers taking help of
wholesaler, intermediaries and distributors. Arnott’s Australia involves the distribution of
product passing through the steps as it moves from manufacturing through distributors to
wholesalers and to the supermarkets.
Promotions and branding: Arnott's has been in the Australian market for more than
150 years. Australians are familiar with Arnott's since long and Arnott's do maintain the
branding through using communication channels.
 Tim Tam Chill Me is a new offering to the customers and Arnott's started its
promotion using social media pages of Arnott’s. Arnott’s Australia has its presence in
Facebook, Twitter and Instagram.
 On social media pages, Arnott’s Australia introduced the new products to the
customers along with price and new attributes. Social media advertisement is cheap
and it has the potential to reach a wide range of customers.

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 On social media, Arnott’s Australia can start the campaign like sharing a selfie with
Tim Tam and hashtag Tim Tam.
Facebook
(82,900 likes)
Twitter
(2,400 followers)
Instagram
(3,530 followers)
Brand presence Business page and
solving queries
Profile page Sharing images and
videos
Viral brand exposure Asking for likes,
comments and share
Retweets and
comments
Share and reacts on
images
Impact on website
trafficking
Post link of new
product
Direct posts from
other social media
page
Quality image
Advertising
opportunities
Facebook ads Promote brand Posting new image
Table: Social media marketing plan
(Source: Self-developed)
Arnott’s can start internet marketing strategy using PPC (Pay-per-click) and SEO
(Search Engine Optimisation). When the customers would search for the confectionery and
biscuits products, the customers will automatically find the name of Tim Tam Chill Me on
their internet pages. SEO strategy will increase the traffic on the website of Arnott's and
people will search the information related to Tim Tam Chill Me on the internet. Internet
marketing is always helpful to make a brand image in the industry.
Arnott's can also take a print advertisement in Australia so that the customers must
hear about Tim Tam Chill Me and its uniqueness. Print media advertisement has longevity in
promotions and people can find the newspapers or magazines even after a few days. Arnott's

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can advertise on The Australian, The Daily Telegraph, The Advertiser, The Sydney Herald
Morning and The Age.
4. Development of strategies to interrupt routine behaviour at the point-of-sale
4.1 Routine behaviour of customers
The customers like to purchase the products with which they have past experience.
Past experience of the customers reflects when they purchase the products and it is the brand
loyalty of the customers. Brand resonance is very important as the brand name of a product
automatically influences the customers to purchase from the same brand (Solomon et al.
2014). In food product, routine response behaviour is seen. In food product, the customers
always prefer to purchase from the same brand and brand recognition plays an important part
in routine response behaviour. Tim Tam Chill Me is a new biscuit and the customers are used
to with different biscuits. However, Arnott’s has its brand recognition among the customers;
Arnott’s needs to promote the biscuits in such a way so that the customers must purchase the
new Tim Tam Chill Me gelato Messina.
4.2 Interrupting routine behaviour
Specific packaging: Tim Tam Chill Me has high-quality packaging and packaging
focuses on maintaining the hygiene of the customers and the sanitation of the area. Most
importantly, Arnott's uses unique packaging as the packaging colour changes once the
product is exposed to temperature level below 8 degrees. Unique packaging and colourful
packaging of products for different flavours will attract the customers (Singh et al. 2016).
Labelling: Arnott’s is using the holographic seal for avoiding any kind of tampering
of the products. Arnott's Australia is a certified company and it will provide written
information of the nutrient value of Tim Tam Chill Me on the packaging. Arnott’s uses the

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labelling to encourage the potential buyers to purchase the products for the information and
convenience.
Merchandising: Arnott's would tie up with Coles and Woolworths to show off the
new product Tim Tam Chill Me gelato Messina on the forefront of the supermarket so that
the customers can easily find the products. The supermarkets will place the products closest
to the doors and near the billing counters. Arnott's will request the supermarkets to place Tim
Tam Chill Me near to cash register counter so that it may catch the buyers' eyes.
Marketing collateral: Marketing collateral refers to the brochure or collection of
media used to support the sales of the product (Velasco et al. 2016). Arnott’s will use web
content and sales scripts to accelerate the sales of Tim Tam Chill Me. In addition, Arnott’s
will distribute brochure, pamphlets and promotional flyers inside the supermarket grocery
section to inform the customers about Tim Tam Chill Me.

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Reference List
Arnott’s Australia. 2018. Tim Tam Biscuits. Available at:
https://www.arnotts.com.au/products/tim-tam/ [Accessed 2nd Oct 2018]
Claiborne, C.B. and Sirgy, M.J., 2015. Self-image congruence as a model of consumer
attitude formation and behaviour: A conceptual review and guide for future research.
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Dibb, S., 2017. Changing Times for Social Marketing Segmentation. In Segmentation in
Social Marketing (pp. 41-59). Springer, Singapore.
Goulding, C., 2017. Navigating the complexities of grounded theory research in
advertising. Journal of Advertising, 46(1), pp.61-70.
Greenstone, M., 2017. The Continuing Impact of Sherwin Rosen’s “Hedonic Prices and
Implicit Markets: Product Differentiation in Pure Competition”. Journal of Political
Economy, 125(6), pp.1891-1902.
Heinberg, M., Ozkaya, H.E. and Taube, M., 2017. The influence of global and local iconic
brand positioning on advertising persuasion in an emerging market setting. Journal of
International Business Studies, 48(8), pp.1009-1022.
Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to the market outcome,
brand equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp.
113-132). Springer, New York, NY.

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Ibis World. 2018. Biscuit Manufacturing and Confectionery. Available at:
https://www.ibisworld.com.au/industry-trends/market-research-reports/manufacturing/food-
product/biscuit-manufacturing.html [Accessed 2nd Oct 2018]
Singh, J., Rhoads, G.K. and Marinova, D., 2016. Frontline Store Manager’s Entrepreneurial
Orientation for Merchandising and Service Role Performance: Scale Development and
Validation. In Marketing Challenges in a Turbulent Business Environment (pp. 93-98).
Springer, Cham.
Solomon, M.R., Dahl, D.W., White, K., Zaichkowsky, J.L. and Polegato, R., 2014. Consumer
behaviour: Buying, having and being (Vol. 10). London: Pearson.
Solomon, M.R., White, K., Dahl, D.W., Zaichkowsky, J.L. and Polegato, R., 2017. Consumer
behaviour: Buying, having and being. Boston, MA, USA:: Pearson.
Velasco, C., Woods, A.T., Petit, O., Cheok, A.D. and Spence, C., 2016. Crossmodal
correspondences between taste and shape, and their implications for product packaging: A
review. Food Quality and Preference, 52, pp.17-26.