Segmentation and Brand Strategy in Marketing

This document discusses the concepts of segmentation and brand strategy in marketing. It explores the customer segmentation strategies used by Devondale Tasty Cheese, such as kids segmentation, women segmentation, youth segmentation, calorie conscious segmentation, health conscious segmentation, and smart customer segmentation. It also discusses the primary and secondary target markets of the company. Additionally, it covers the positioning strategies used by the company, including product features or customer benefits, pricing or quality, competitors, and use or application. Finally, it explains the brand strategy of Devondale Tasty Cheese using the Growth-Share (Ansoff) Matrix.

Marketing
1

Contents
Section 1: Segmentation and brand strategy....................................................................................3
1.1 Consumer Segmentation............................................................................................................3
1.2 Primary and secondary target market........................................................................................5
Section 2: Positioning and Brand Strategy......................................................................................6
2.1 Positioning / Perceptual Map.....................................................................................................6
2.2 Brand Strategy...........................................................................................................................8
Section 3: Objective.......................................................................................................................10
3.1 Marketing objective.................................................................................................................10
Section: 4 Marketing programs.....................................................................................................11
4.1 Product development, Pricing and Distribution plan...............................................................11
4.2 Integrated marketing communication plan..............................................................................12
Section 5: Scheduling, Forecasting and Control............................................................................13
5.1 Marketing schedule and Budget..............................................................................................13
5.2 Forecasting...............................................................................................................................13
5.3 Marketing metrics and contingency.........................................................................................14
References......................................................................................................................................15
2

Section 1: Segmentation and brand strategy
1.1 Consumer Segmentation
The segmentation of the customer can be defined as an activity of diversifying a business market
or broad consumer which in general consists of the potential and existing customers into the sub
groups of the consumers on the basis of certain kind of the shared characteristics (Error, et al.,
2015). The segmentation of the consumer allows the organizations for better tailoring their
efforts of marketing to the various subsets of audience. Such efforts can also be make relevant to
the development and communication of the product. The Devondale tasty cheese is an Australian
organization which has its business in dairy products and is considered as the number
organization of Australia. The company has various products such as milk, cheese, nutritional
products and many others for its various customers. The company has growing business and in
the success of the business of organization the customer segmentation is one of the important
strategies of them. The customer segmentation map of the Devondale tasty cheese for the gowth
of their business is as follows:
Kids
segmentation
Women
segmentation
Youth
segmentation
Calories
conscious
segmentation
Health
conscious
segmentation
Smart
consumer
segmentation
Banana
flavored
milk,
chocolate
flavored
milk,
strawberry
flavored
milk,
smoothies of
Calcium
enriched
milk, butter,
cheese,
double flavor
cheese, milk
powder,
skimmed
milk,
flavored
cheese,
smoothies
and butter
skimmed
milk, low fat
milk,
skimmed
milk powder,
reduced fat
cheese, light
spreadable
cream
cheese, and
calcium
enriched
milk, smart
plus milk,
vitamin plus
fat reduction
milk, less fat
butter
Liddells
lactose free
UHT full
cream milk,
Liddells
lactose free
UHT skim
milk,
Liddells
lactose free
3

various flavor less fat butter UHT low fat
milk, smart
plus milk
(Devondale.,
2019)
1. Kids segmentation: in this type of segmentation the Devondale tasty cheese is focusing
on the customers from infants to the children. The products and their marketing strategies
are designed by focusing on this segment. The products of Devondale tasty cheese that
are for the segmentation of kids are moo strawberry flavored milk, moo chocolate
flavored milk, cheese with different flavors and butter (Devondale., 2019). The main
product that is manufactured by Devondale tasty cheese is the flavored milk for kids. The
products are provided to every place whether town or city of the country. The company is
also manufacturing various flavors of smoothies for this segment of their customers.
2. Women segmentation: The Devondale tasty cheese is also manufacturing products that
are women oriented. The dairy products that have nutrition as per the requirement of
females in the country. This segmentation has attracted maximum female customer base
towards the products of the Devondale tasty cheese. The company has also performed
marketing of its product as per this segmentation. The products that the Devondale tasty
cheese is offering to its female customers are calcium enriched milk, milk powder, salted
and unsalted butter and others. The product such as calcium enriched milk is
manufactured for providing extra nutrition to the females which has proven successful for
providing large female consumer base to the company. The products that are female
oriented are not only manufactured for their health purpose but also focus on the
perspective of easy and tasty cooking such as cheese with double and triple flavor. The
female customer base for this segmentation has both women from cities and towns of the
country.
3. Youth segmentation: the products that are manufacture by the Devondale tasty cheese for
attracting the youth of the country which is the individuals that are from 18 years to the
25 years mainly. The products such as skimmed milk, flavored cheese, smoothies and
butter are the products that have provided the youth customer to the company. This
4

segmentation has no impact of geographical area as this range is for both town and city of
the country. This segmentation can also be said as an outcome of demographic
segmentation. The marketing of these products are also performed by keeping the
perception of the youth of the country in mind. About 66% of the population of Australia
is working and among them maximum is youth so the youth of the country is a large
customer base for the Devondale tasty cheese and therefore this segmentation can provide
large profit to the company (Abs.gov.au., 2019).
4. Calorie conscious segmentation: The dairy products that are lower in fat are low calorie
mainly. These products are largely used in the population of the company in their day to
day life. This segment is the part of almost every age group of the county and therefore
such products are able to attract large extent of the customer base. The products such as
skimmed milk, low fat milk, skimmed milk powder, reduced fat cheese, light spreadable
cream cheese, and less fat butter. These products are mainly used by the population that
are residing on cities and mainly working population of the country (Hutchinson, 2016).
5. Health conscious segmentation: the Devondale tasty cheese is also producing products
for the customers that are health conscious. This base is mainly are from the city of the
country and from the youth and working population. These products have extra nutrition
such as calcium enriched milk, smart plus milk, vitamin plus fat reduction milk, less fat
butter and others (Devondale., 2019). This product of the Devondale tasty cheese has
provided large customer base to the company.
6. Smart customer segmentation: these are the customers with specific need such as extra
fat, certain allergies and others. It has seen that 67-75% Australian population is lactose
intolerant which is major hindrance in the consumption of dairy products. The Devondale
tasty cheese is also offering certain products for the lactose tolerant as it is the major part
of their customer base (Pal, et al., 2015). Such products offered by the company are
Liddells lactose free UHT full cream milk, Liddells lactose free UHT skim milk and
Liddells lactose free UHT low fat milk. The other products for this segmentation are
various flavored cheese, smart plus milk and various varieties of butter.
5

1.2 Primary and secondary target market
Primary target market: the primary target market is the customer base that can provide
maximum customer for the country is youth segment. The most of the product of the Devondale
tasty cheese is suitable for this segment and therefore the company does not require huge
alteration in their existing products for increasing sale. The consumer journey map for this
segment is:
Figure 1: customer journey map for youth segment
Secondary target market: The secondary target market of the Devondale tasty cheese is the
health conscious population of the country. The health conscious is a life style which are adapted
by most of the individual of every age therefore it will contribute in enhancing profit of the
company by increasing sale of its product such as skim milk, low fat butter and others. the
customer map for this segment is:
Figure 2: Figure 1: customer journey map for health- conscious segment
6
considering suitable
products such as skim milk
evaluate by social media,
advertisements buy experience
considering suitable
products such as low fat
milk, reduced fat cheese
evaluate by social media,
advertisements buy experience

Section 2: Positioning and Brand Strategy
2.1 Positioning / Perceptual Map
Different organizations use different positioning strategies. There are various positioning
strategies adopted by the various organizations as a part of their marketing activities. Here, a few
positioning strategies have been discussed:
Product features or customer benefits- This is one of the positioning strategies used by the
organizations which strategically focuses on the product characteristics and customer benefits as
well. Often using this strategy, the good features of the product are highlighted among the
customers and how these features would be beneficial to the customers are also highlighted in a
proper manner.
Pricing or Quality- Pricing or price- quality is often used as a positioning strategy by most
organizations as customers consider these two variables as the important ones while making a
purchase. The price and quality of the products are used to position there are customers who
perceive that expensive products will be quality products and also there are customers who
always look for products with low prices. Hence, these two variables are often used for
positioning of products (Atwal and Williams, 2017).
Competitors- Often positioning is also based on the prevailing competition or competitor in the
industry. In this type of positioning, a frame of reference is considered which is one or more
competitors. In few cases, the reference competitor can be seen as a dominant aspect.
Use or application- Based on the product usage, often the products are positioned. For instance,
Nescafe used this positioning strategy and positioned its instant coffee as a winter product for
many years and then launched its cold coffee and positioned it for the summer months.
In context of Devondale Tasty Cheese, the main strategies that are used by the company are
pricing, quality and the health concerns of consumers. For the product Fresh Milk of the brand,
higher price is used for positioning as consumers are mostly of the view that expensive products
will be of higher quality as well. The second variable used is quality and then the health
concerns. In case of the Long Life Milk (UHT), low pricing is used by the brand as it positions
7

the product in a way that can aggressively compete with the local competition in the dairy
industry (Andrews and Shimp, 2017).
Below, the perceptual map for Devondale products has been shown:
Chocolate Falvoured Milk
Skimmed Milk
Double flavoured Cheese Vitamin plus Fat reduction
Milk
Long Life Milk (UHT)Less Fat butter
Skimmed milk powder
Smoothies
Devondale Perceptual Mapping
Health
y
For Kids
Safety
For Adults
For the purpose of perceptual mapping or positioning of the products of Devondale Tasty
Cheese, few of its products from the segmentation table has been used and the attributes that
have been applied to make the positioning map are healthy, safety, for kids and for adults. The
products have been rated on the basis of these attributes to clearly position the products of the
brand in the map.
2.2 Brand Strategy
In order to make the business grow and develop, it is essential that at every step tactical strategy
are formulated and implemented so that the business grows and achieves a sustainable success.
The dairy industry in Australia is huge and there are several local competitors in the industry.
8

For Devondale Tasty Cheese, developing tactical strategies is extremely important in order to
survive in the industry and maintain its stable position. For developing strategies for Devondale,
the Growth- Share (Ansoff) Matrix can be used (Fahy and Jobber, 2015).
Source- www.smartdraw.com
Using the growth share matrix, Devondale can conduct an assessment of its various products as
to which products generate higher profitability and brand value for the company and which
generates least profitability or brand value. In accordance with the assessment the brand can
enhance the marketing of the higher value products and improve their sales. On the other hand,
in case of the low value products, the company can discontinue the product lines if necessary.
Devondale Tasty Cheese products can be categorized with the help of this matrix and appropriate
strategies can be developed thereafter (Hastings and Stead, 2017). The light spreadable cream
cheese, calcium enriched milk, lactose free milk, infants’ formula milk are among the products
that can be categorized under the ‘stars’ category. These products have high market share and
high market growth as well and hence, these products must be produced more and promoted well
9

among the consumers. The various flavored milk such as chocolate flavored, banana flavored
and strawberry flavored may be categorized under the ‘dogs’ segment as these products generate
a comparatively low profit. As the people are growing health conscious, too much of flavored
milk will not be demanded by the consumers. It is similar with the various flavored smoothies
and the high fat and calorie products like cheese, the demand for which may decrease in near
future (Blythe and Martin, 2019). The products for the healthier segment of consumers can be
categorized as the ‘question marks’ since these products, currently have a low market share but
there are opportunities or chances for high market growth. With the growing consciousness of
people to remain healthy and maintain a healthy lifestyle, these products like skimmed milk, low
fat milk, skimmed milk powder, calcium enriched milk, less fat butter will have a higher market
share in the future. Thus, these products have the most probability of market growth in the
future. Finally, for the ‘cash cows’ category, fresh milk and long- life milk (UTH) are suitable as
these products do not have high growth opportunities but have high market share and can
generate much profitability (Forney and Häberli, 2016).
Devondale Tasty Cheese is required to promote the products which are healthier for kids as well
as for adults. Further, the company must also highlight the features of the products in order to
promote a healthy lifestyle for the consumers. Once, the consumers are convinced, they will
adapt to healthy living and these products will generate high sales and profitability for the
company. However, on the other hand, among the wide range of products there are few which
the company should discontinue which will also cut down the costs incurred. Further,
innovations can also be carried out in the company.
Section 3: Objective
3.1 Marketing objective
The marketing objective for the growth of the business of Devondale tasty cheese is as follows:
 To increase the customer base of every segment of the products
 To use the modern marketing technique for developing more market.
10

Section: 4 Marketing programs
4.1 Product development, Pricing and Distribution plan
Product mix refers to the total number of product lines that ae offered by the company to its
consumers. In context of Devondale Tasty Cheese, there are quite many product lines that are
company offers like milk, cheese, butter and others. The company offers all dairy products in
wide variants. Devondale Tasty Cheese offers almost every product line related to dairy. There
are different varieties of dairy products that the company offers. However, if a product
development is to be proposed for Devondale Tasty Cheese, it can be said that the company can
focus on extending its range of yoghurt (Belanger and Bredesen, 2018). There are yogurts
offered by the company but the flavors can be expanded more. Different refreshing fruit flavors
can be added with the help of natural fruit pulp and quality flavored yogurts can be offered to the
consumers. This will enhance the revenue and profitability of the company. Further, the
company can start a range of milk cookies and cakes. The cakes can be placed in the desserts
section along with Devondale ice creams. The cakes and cookies prepared from the dairy
products of Devondale will attract loyal consumers immediately. This product line will also
complement the existing product lines of the company. If the growth-share matrix is used here,
this product line can be estimated to be a ‘star’ with high growth opportunities, as there are
various opportunities of innovation under this product line (Chaffey and Ellis-Chadwick, 2019).
In order to manage the product mix through the distribution channel and avoid any conflict in the
channel, the distribution cannel can be split. The company can launch these products under a
different section and the distribution channel members can be split in order to manage the new
product lines effectively and efficiently. Also, initially the company can distribute to a few
regions where the target consumers such as kids and families are present. In these areas, the
demand for the flavored yogurts as well as milk cookies and cakes will be more.
The pricing strategy for the products must be competitive so as to compete with the local brands
as well. The company must target the middle income and high- income group and keep the prices
of the yogurts low. This will enable the company to compete with the local brands aggressively.
In case of the milk cookies and cakes, the organisation can choose to price the products lower
11

than the normal industry rate of the bakeries or brands selling cakes and cookies. This will
increase the demand for these product lines (Atwal and Willliams, 2017).
4.2 Integrated marketing communication plan
Marketing communication plan or the advertising strategies of the company must be planned
very strategically as every product line offered by the company has to be advertised and
communicated to the consumers to make them aware of the product. For the new proposed
products, proper marketing communication plan is extremely important as the consumers have to
be informed of the new launch by Devondale Tasty Cheese. Here, two communication areas in
relation to the above proposed products have been discussed below:
Advertising (traditional and digital) – Advertising and promotion is significant and when a
product is launched, it becomes all the more necessary to communicate it to the consumers. This
directly impacts the sales revenue of the company. In context of Devondale Tasty Cheese, the
products can be promoted or advertised through traditional means and through the digital
platforms. In traditional advertising, the company can use billboards outside malls and retail
store as well as supermarkets, hoardings to advertise the products (Andrews and Shimp, 2017).
Further, advertisement campaigns can be designed and aired on television, radios which will
attract the consumers who are interest in watching television or are regular in listening to radio
channels. Other than this, the digital platforms can be used to advertise and promote the products
as most of the population have access to social media and are active more on these websites.
Through the digital media, like, social media platforms of Facebook, YouTube can be used and
other than these, the company can advertise the products on other websites. The digital media
will enable the company to reach a million consumers at once.
Price Promotion (sales promotion using price) – Sales promotions are useful in advertising as
they attract consumers to great extent. Low prices of products are taken as an advantage here to
attract consumers. In context of Devondale Tasty Cheese, the company can offer the consumers
with an initial launch discount which will attract consumers as they would get the product as
much lower prices than normal.
12

Section 5: Scheduling, Forecasting and Control
5.1 Marketing schedule and Budget
Within the budget of $ 6m, the marketing budget can be prepared as follows:
Particulars Amount ($m)
Marketing research 1.2
Traditional Advertising 0.86
Social media and video advertising 1.62
Digital marketing 2.32
Total 6
5.2 Forecasting
2020 2021 2022 2023 2024
0
2
4
6
8
10
12
Sales ($m)
Here, the forecast for 5 years has been shown. It can be seen that the sales revenue of the
company in case of the new products is seen to be growing over the years.
13

5.3 Marketing metrics and contingency
The marketing activities as mentioned in the budget has to be conducted in a proper manner
under proper monitoring and supervision. The market research, development of communications
plan and implementation has to be done appropriately. It is recommended that an exit plan is
developed in case any of the strategies fail to provide the company with the expected results (Fill
and Turnbull, 2016).
14

References
Abs.gov.au. (2019). Population - Australian Bureau of Statistics. [online] Available at:
https://www.abs.gov.au/Population [Accessed 24 May 2019].
Andrews, J.C. and Shimp, T.A., 2017. Advertising, promotion, and other aspects of integrated
marketing communications. Nelson Education.
Atwal, G. and Williams, A., 2017. Luxury brand marketing–the experience is everything!. In
Advances in luxury brand management (pp. 43-57). Palgrave Macmillan, Cham.
Belanger, J. and Bredesen, S.T., 2018. Storey's Guide to Raising Dairy Goats: Breed Selection,
Feeding, Fencing, Health Care, Dairying, Marketing. Storey Publishing.
Blythe, J. and Martin, J., 2019. Essentials of marketing. Pearson UK.
Chaffey, D. and Ellis-Chadwick, F., 2019. Digital marketing. Pearson UK.
Devondale. (2019). Devondale | Products. [online] Available at:
https://www.devondale.com.au/products [Accessed 24 May 2019].
Error, B.M. and Wong, C.J., Adobe Inc, 2015. One-click segmentation definition. U.S. Patent
9,081,863.
Fahy, J. and Jobber, D., 2015. Foundations of marketing.
Fill, C. and Turnbull, S.L., 2016. Marketing communications: brands, experiences and
participation. Pearson.
Forney, J. and Häberli, I., 2016. Introducing ‘seeds of change’into the food system? Localisation
strategies in the Swiss dairy industry. Sociologia ruralis, 56(2), pp.135-156.
Hastings, G. and Stead, M., 2017. Social marketing. Taylor & Francis.
Hutchinson, N., 2016. Batten down the hatches: The dairy industry in crisis?. Geodate, 29(3),
p.17.
15

Pal, S., Woodford, K., Kukuljan, S. and Ho, S., 2015. Milk intolerance, beta-casein and
lactose. Nutrients, 7(9), pp.7285-7297.
16