This document provides insights into marketing strategies, target market analysis, and positioning map in organizations. It discusses demographic, geographic, psychographic, and behavioral segmentation. The document also includes information about Arnotts Biscuit, its background, macro-environmental forces, and consumer behavior.
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Running head: MARKETING IN ORGANIZATIONS MARKETING IN ORGANIZATIONS Name of the student Name of the university Author note
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1MARKETING IN ORGANIZATIONS Executive summary Target Market-Arnotts Biscuitsets its age barrier of the potential customers between 30 and 60.The Company generally offers biscuits and snacks to the people in Australia and in overseas. Most of the target customer are belonged to the middle and lower class from urban, suburban and rural regions of Australia. Positioning- The organization positioned the brand based on the view of making the consumers aware of their specific objective to produce and distribute quality products. The brand is being positioned at the high quality and competitively lower price, which has supported the venture in continuing with unique propositions in the market. Brief marketing mix-The marketing mix of the organization represented that the venture objective at providing enhanced quality of biscuits and confectionaries in a competitive pricing. The vivid promotional activities that are undertaken by the venture supported the same in gaining a strong market base. On the other hand, the multi-channeled positioning of the offerings also supported the organization in maximizing the volume of sales of the venture.
3MARKETING IN ORGANIZATIONS 1. Introduction 1.1 Background of the company Arnotts Biscuitis one of the most popular and the largest producer of biscuits in Australia. The company is a subsidiary of the parent company named Campbell Soup Company belonged to United States.Arnotts Biscuitalso manufacturers snacks food. The company was established in 1865 with its current headquarter in New South Wales, Australia. There are series of products thatArnotts Biscuithas offered such as SAO, JATS and Tim Tams. Most of these products are belonged to the snacks or biscuits and highly popular among the Australians. As per the annual report of the organization, it can be stated that in the financial year of 2018, the company earned more than AU$1 billion. Presently, there are over 4,000 employees working in the company and always looking for introducing attractive products. 1.2 Macro-environmental forces ElementsIllustration PoliticalTheWorldBankreportstatesthatthe political stability in Australia is moderately stable with an average of 1.02. The government effectiveness is decreasing thatcancreatesomeproblemsforthe business activities ofArnotts Biscuit However,theregulatoryqualityof Australia is very high that helpsArnotts
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4MARKETING IN ORGANIZATIONS Biscuitto develop its business profoundly. EconomicAustralia is considered to be one of the majordevelopedcountrythereforeitis obvious for to witness sharp development in the economic growth. In the financial of 2018 the economic growth is increased at a point of 3.56% which is quite good. Moreover, Australia is its high peak in the eraofglobalizationwherethebusiness organizationsgeteconomicfreedom extensively. As a result of that forArnotts Biscuititcreateshavocimpacttothe business activities. SocialOn the social front, diversity in population is stipulated further the enrichment of the society. The government takes great care for the indigenous people and the aged households sothatthebusinessorganizationslike Arnotts Biscuitalso puts emphasis on the sustainable development practice. Asamatteroffact,thehappyand hospitable nature of the Australian people
5MARKETING IN ORGANIZATIONS also create a better environment for the businessorganizationstoflourish effectively. TechnologicalUse of cutting edge technologies is also considered to be one of the major aspect for the business organizations existed in the Australian market. The government also endorses such efforts and encourage the business organization to update their operations and services with the help of effective technological progress. 1.3 Micro-environmental actors ElementsIllustration Competitive rivalryHigh competition in the restaurant market duetothepresenceofboththe multinational and the domestic companies. The SMEs feel pressure in doing business in Australia due to the heave dominance of the giant companies. Thedevelopmentintourismmakesthe restaurantbusinesshighlyflourishingso thatthecompetitionwilldefinitelybe
6MARKETING IN ORGANIZATIONS intensive. Threat of new entrantsLow threat of the new entrants due to the heave presence of both the big and small food and snacks companies. The restaurant business is already at its highest point and start saturating rapidly. As a result of that there is no point for the newentrantstoestablishbusinessand market capitalization effectively. Bargain power of the suppliersModerate level of suppliers’ power can be seen in the Australian market due to the limitedrangeofqualityrawmaterials suppliers. The multinational companies do not feel pressureduetotheirinternational supplyingnetwork.However,companies likeArnottsBiscuitfacehugepressure from the suppliers. Power of the buyersBuyers are always considered to be of high esteem and most of the business activities in Australia are influenced by the customer behaviors. For the hospitality industry, it is highly
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7MARKETING IN ORGANIZATIONS important for the business companies to set itsgazeonthechangingnatureofthe customer behavior so that the company can gain strategic advantage in the competitive market. ForArnottsBiscuitthecustomersare identified as the most important aspect to deal with and for this the company tries to take sustainable attitude in business. Threat of substituteHigh threat of substitute product is always a big challenge for the hospitality industry in Australia. Big business organizations like McDonalds andStarbuckscreateimmensechallenge forArnotts Biscuitto expand its market. 1.4 Consumer behavior The consumer behavior ofArnotts Biscuitis primarily based on four key components in terms of the demographic, geographic, psychographic and behavioral segmentation. Therefore, it can be stated thatArnotts Biscuitputs great deal of impact on the customer behavior and tries to define the consumer behavior in terms of the specific target segmentation.
8MARKETING IN ORGANIZATIONS 2. Target market analysis 2.1 Demographic The demographic segmentation is based on the demographic variables in terms of the vitalandsocialcharacteristicsofpopulation,education,incomeandage.Accordingto Beheshtian-Ardakani, Fathianand Gholamian (2018) the demographic segmentation of target market is highly important for the business organizations in order to develop a better marketing strategy based on the target customers. 2.1.1 Age The age barrier ofArnotts Biscuitis based on both the existing and the possible customers of the restaurant. For instance,Arnotts Biscuitsets its age barrier of the potential customers between 5 and 60. A number of reasons are responsible for this type of age related segmentation like the better acceptability of foods for the both the children and adolescent people. 2.1.2 Gender There is no gender discrimination follows byArnotts Biscuit.The organization primarily sets its target to both men and women who are sought to buy the snacks. As a matter of fact, another reason is also significant in this context such as the maximization of customers. 2.1.3 Occupation Most of the customers ofArnotts Biscuitare children with an age from 5 to aged people of 60 years old. Therefore, the occupation is not supposed to be an important variable forArnotts Biscuitin order to access the target customers.
9MARKETING IN ORGANIZATIONS 2.2 Geographic The geographic segmentation of target customers is based on the principle of climate, local population,marketdensity, regionaltopography and theurban, suburban and rural footprints (Grunert, 2018). Based on this understanding, it can be stated that the geographic segmentation ofArnotts Biscuitsets on both the urban and rural population. As a matter of fact, the suburban population is also encapsulated into the target customer canvas. One of the major purpose of the organization is to maximize the target customers. However, another major thrust of the organization is on the local communities in the densely populated areas in both urban and suburban regions. There is a list of menus that the organization is provide to its potential customers based on their geographic location as well. As a result of that putting emphasis on the indigenous and minority groups facilitate a better strategic advantage for the organization to set its business profoundly in the local regions. 2.3 Psychographic As far as the psychographic segmentation of the target customers are concerned, it can be stated that there are huge importance of the psychographic division among the business organizations in order to understand the social class and lifestyle of the potential customers. From the research of De Keyser, Schepersand Konuş (2015) it can be stated that the variables of lifestyles, motives and the personality attributes enable the companies to set an effective business orientation for get proper psychological information of the customers. 2.3.1 Social class The Social class ofArnotts Biscuitare encompasses all kind of people irrespective of high or low. However, the company primarily sets its target on the middle and lower class people because they are the potential customers who will buy the homemade foods offered byArnotts
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10MARKETING IN ORGANIZATIONS Biscuit.One of the primary concern of the organization is to increase the number of customers based on their community status and the middle and lower class suburban population will help the organization to achieve its goals. 2.3.2 Lifestyle It is also pertinent for theArnotts Biscuitmanagement to keep an eye on the lifestyle of the people and their trends. It will deliver a better practice for the organization to set its product better on the basis of the lifestyle of the target customers. Mostly, the mainstreams, aspirer and thefamilypeopleareconsideredtobethetargetcustomersofArnottsBiscuitandthe organization intends to introduce more menu on the basis of their lifestyle. 2.4 Behavioral segmentation Yang et al. (2016) articulated that the role of the behavioral segmentation is top segregate the market on the basis on consumption behaviors of the customers. It includes different variables such as the benefit expectation, brand loyalty, price sensitivity and the volume usage. 2.4.1 Benefit expectation For most of the potential consumersArnotts Biscuittries to bring unique snacks items with better packaging and services. The office goers and the aged customers will get high benefit by this measure because they do not have either enough time to eat or physical ability to visit a restaurant. As a result of that theArnotts Biscuitoffers them tasty and crunchy biscuits that will bring them happiness andmake them highly beneficial to purchase the snacks and biscuits of Arnotts Biscuit.
11MARKETING IN ORGANIZATIONS High Quality Low quality High priceLow price 2.4.2 Price sensitivity Another major concern is the price sensitivity. As most of the customers ofArnotts Biscuitare middle and lower class people therefore a moderate pricing strategy attracts them more to buy the quality foods prepared and served byArnotts Biscuit. 3. Marketing strategy 3.1 Positioning map Positioning statement-“There is no substitute for quality”(Arnotts.com., 2019) The brand has targeted a wide range of customers with the objective of continuing with the effectiveness of the operations of the venture. The major modifications that are undertaken by the organization are reliant on the assessment of the needsof the target audience. It has been noted that the Australian customers are mor4e inclined towards the quality of the offerings over
12MARKETING IN ORGANIZATIONS the price of the same. Therefore, the businessat enhancing the quality of the offerings. It has helped the businesses in continuing with the effectiveness of the operations in adherence to the demand of the customers. The business has taken steps to develop the strategies with the objective of adhering to the quality related needs of most of the Australiancustomers. On the contrary, the continuous development of the line of products has supported the organization in continuing with the strategic position of the same in the markets. Reynolds and Yetton(2015) stated that the development of quality of the products assist an organization in maximizing the volume of sales. In this relation, the business has taken step to develop quality range of products to gain over the trust and loyalty of the customers in the Australian markets.The different activities that are undertaken by the organizations are reliant on the smooth functioning of the systems in adherence to the demand of the customers. 3.2 Product: Three levels of product Thecoreproductthatisbeingofferedbythe business are a variety of biscuits that supported the venture in continuing with the effectiveness of the operationinadherencetothequalityrelated
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13MARKETING IN ORGANIZATIONS Core productdemand of the consumers. The benefits that are offered by the business is based on the assessment of the needs of the consumption based needs of Generation Y and Generation Z. The core product offering of the organization is based on attracting the attention of the primary target customers of the business.Theprimarycustomersofthe organization will assist the venture in continuing withtheeffectivenessoftheoperationsin adherencetothedemandoftheconsumers (Arnotts.com., 2019). Actual productThe actual product that is being produced by the organization isreliant on factors like quality, color, style, branding and trends (Kasemsap, 2014). The enhanced quality of the product and the branding operations of the venture has supported the same in continuingwithpositivevaluefortheproduct (Arnett& Wittmann,2014). On the other hand, the packaging and standardization that are being adhered by the organization supported the same in continuing with its resources for continuing with positive operations of the same in the different markets (Arnotts.com., 2019). Augmented productThe customer based services and the PR activities that are undertaken by the business supported the same in continuing with customer loyalty and trust
14MARKETING IN ORGANIZATIONS towards the product offerings of the same. The guarantee on quality helped the same in assuring the customers and thereby retaining the trust and loyaltyofthesame.Thedevelopmentofthe productlineshassupportedtheventurein continuing with the effectiveness of the operations in adherence to the demand of the customers in the different market sections (McMurrian & Matulich, 2016). On the other hand, the enhancement in the qualityoftheproductofferingssupportedthe venture in securing a sustainable position in the markets. 3.3 Price The business will be implementing the competitive pricing strategy, which will assist the venture in ensuring the continuous profitability of the same (Arnotts.com., 2019). The pricing strategy has not only supported the business in continuing with a stronger market base but also supported the same in enhancing the rate of profitability. Dahnil et al., (2014) opined that the pricing strategy of an organization assists in enhancing the rate of operations in the different market contexts. The different aspects of change that might be undertaken by the organization is reliant on the uninterrupted functioning of the systems in adherence to the demand of the customers (Hassan,Nadzim& Shiratuddin,2015). The assessment of the needs and the behavior of the customers have supported the same in continuing with the pricing strategy for meeting the requirements of the target customers. The adherence to the competitive pricing
15MARKETING IN ORGANIZATIONS strategy has supported the concerned venture in manipulating the price of the products in adherence to the price that is quoted by the other organizations. 3.4 Placement The business objectivesat distributing the products through tie-ups with different supermarkets and online stores. It has supported the venture in maximizing the scope of operations of the same through maximizing the involvement of the target customers (Mills& Plangger,2015).On the other hand, the business also developed strategies for making their products available in the different e-commerce platforms for enhancing the scope of availability of the products to the customers (Siamagka et al., 2015). The multi- channeled distribution network of the organization supported the same in continuing with their enhanced brand name. On the contrary, the greater availability of te products in the markets supported the organization in continuing with the operation sin adherence to the demand of the customers (Taneja& Toombs,2014). The multi-channeled positioning of the products and the distribution of the same supported the business in enhancing the scope of operations of the same in the different markets (Arnotts.com., 2019). The effective positioning of the product and the assurance that is provided by the organization on the quality of the products supported the same in gaining over the trust and confidence of the customers (Adina, Gabriela& Roxana-Denisa,2015). Moreover, the convenientpositioningofthecommoditiessupportedtheventureincontinuingwiththe effectiveness of theoperations in adherence to the demand of the customers.Customers’ demand mapping has supported the concerned venture inpositioning the offeringsin the desired locations, which supported the organization in continuing with the availability.Steenkamp (2014) noted that the effective positioning of the offerings in the markets assists an organization
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16MARKETING IN ORGANIZATIONS in continuing with the operations in adherence to the demand of the customers. Therefore, the business utilized the hybrid medium of positioning and product distribution for maximizing the involvement of the customers. Effective positioning of the products in the market and the quality assurance also supported the venture in gaining over the trust and confidence of the customers while enhancing the sales volume of the same (Arnotts.com., 2019). 3.5 Promotion Promotion helps an organization in continuing with a positive brand image in the competitive markets. Stubbs and Warnaby (2015) also noted that effective promotional activities assists an organization in continuing with awareness among the customers. Customer awareness assists an organization in enhancing the operations of the same while4operating in different global markets. In this relation, the major objectives of promotion that is being undertakenby the concerned ventureis based on maximizing the rate of awareness among the customers.The maximized rate of awareness among the consumers assists an organization in increasing the sales volume of the same (Maarit Jalkala & Keränen, 2014). On the other hand, the effectiveness of the promotional activities assists an organization in demonstrating their unique propositions to the customers for delineating their competitive benefit. Therefore, In this relation, the concerned venture has taken steps to develop a range of promotional strategies with the objective of making the customers aware of the propositions while maximizing the rate of involvement of the same. The business has taken steps to develop sales promotionthrough the utilization of the discounts and offers (Arnotts.com., 2019). The sales promotional techniques of the venture supported the same in maximizing the volume of sales (Gengler & Mulvey, 2017). On the other hand, the different aspects of change that are undertaken by thee organizations has supported the same in continuing with the effectiveness of the operations in adherence to the demand of the
17MARKETING IN ORGANIZATIONS customers.Moreover, the business also developed their potentials of encouraging social media and digital mediapromotions. It supported the venture in adhering to the common trends of marketing that are being adopted by most of the companies.The marketing campaignsthat are undertaken by the business along through sponsorships and collaboration withthe other supportive industries has supported the venture in continuing with the positive brand image for influencing the buying behavior of the consumers. 4. Conclusion Therefore, from the above analysis it might be stated that the external and internal environments of an organization assist the same in designing the marketing strategies with the purpose of making the customers aware of the propositions. The Arnott’s biscuit company has different challenges, which is enumerated in the section of the research. However, the company has taken steps to develop a comprehensive marketing strategy wit the objective of enhancing the rate of sales volume through positive communication, promotion, new product development and impressive pricing standards. The developments in the operation of the venture has supported the same in continuing with the effectiveness of the operations in adherence to the demand of the customers,.Therefore,theenhancementinthemarketingplansupportedtheventurein continuing with its potentials of making business while adhering to the demand of the consumers in diverse global markets.
18MARKETING IN ORGANIZATIONS References Adina, C., Gabriela, C., & Roxana-Denisa, S. (2015). Country-of-origin effects on perceived brand positioning.Procedia Economics and Finance,23, 422-427. Arnett, D. B., & Wittmann, C. M. (2014). Improving marketing success: The role of tacit knowledge exchange between sales and marketing.Journal of Business Research,67(3), 324-331. Arnotts.com (2019).Arnott's Australia | Celebrating Arnott's iconic biscuits and crackers and rich heritage in Australia. [online] Arnotts.com. Available at: https://www.arnotts.com/ [Accessed 11 May 2019]. Beheshtian-Ardakani, A., Fathian, M., & Gholamian, M. (2018). A novel model for product bundling and direct marketing in e-commerce based on market segmentation.Decision Science Letters,7(1), 39-54. Dahnil, M. I., Marzuki, K. M., Langgat, J., & Fabeil, N. F. (2014). Factors influencing SMEs adoption of social media marketing.Procedia-social and behavioral sciences,148, 119- 126. De Keyser, A., Schepers, J., & Konuş, U. (2015). Multichannel customer segmentation: Does the after-saleschannelmatter?Areplicationandextension.InternationalJournalof Research in Marketing,32(4), 453-456.
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19MARKETING IN ORGANIZATIONS Gengler, C. E., & Mulvey, M. S. (2017). Planning pre-launch positioning: Segmentation via willingness-to-payandmeans-endbranddifferentiators.JournalofBrand Management,24(3), 230-249. Grunert,K.G.(2018).Internationalsegmentationinthefooddomain:Issuesand approaches.Food Research International. Hassan, S., Nadzim, S. Z. A., & Shiratuddin, N. (2015). Strategic use of social media for small business based on the AIDA model.Procedia-Social and Behavioral Sciences,172, 262- 269. Kasemsap,K.(2014).Theroleofsocialmediaintheknowledge-basedorganizations. InIntegratingsocialmediaintobusinesspractice,applications,management,and models(pp. 254-275). IGI Global. Maarit Jalkala, A., & Keränen, J. (2014). Brand positioning strategies for industrial firms providing customer solutions.Journal of Business & Industrial Marketing,29(3), 253- 264. McMurrian, R. C., & Matulich, E. (2016). Building customer value and profitability with business ethics.Journal of Business & Economics Research (JBER),14(3), 83-90. Mills, A. J., & Plangger, K. (2015). Social media strategy for online service brands.The Service Industries Journal,35(10), 521-536. Reynolds, P., & Yetton, P. (2015). Aligning business and IT strategies in multi-business organizations.Journal of Information Technology,30(2), 101-118.
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