Optimum Nutrition Marketing Plan

This marketing plan analyses the market for protein powder in Australia and provides recommendations for Optimum Nutrition 100% Whey Protein Powder. It includes target consumer segments, consumer decision making, positioning strategy, and marketing mix.

OPTIMUM NUTRITION MARKETING PLAN
Student Name:
Student ID:
Subject Name: Food Marketing
Subject Code: MKG721
Date Due:
Professor Name:
1

Executive Summary
The market for protein powder is increasing in Australia with female consumers increasing at a
rapid rate. In order to take advantage of the rowing market size, companies need to devise
marketing plans. The current scope of analysis is in regards to Optimum Nutrition 100% Whey
Protein powder. For providing appropriate recommendation to the Company, target consumer
segment has been analysed along with consumer purchase behaviour. It was understood that the
Company can target a wide frame of consumers for the product. Social and psychological
influences are most prominent factors in determining consumer purchase decision relative to the
product. The brand and position analysis of the Company reveals that it currently occupies 2nd
position in the market. Extension of its promotion strategy, by designing its marketing mix
adequately will allow the company gain maximum possible share in the market.
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Table of Contents
OPTIMUM NUTRITION MARKETING PLAN...........................................................................1
Executive Summary.........................................................................................................................2
1.0 Introduction................................................................................................................................3
2.0 Background and Industry Analysis of the product....................................................................4
3.0 Profiling of Key Marketing Segments.......................................................................................6
3.1 Target Consumer Market.......................................................................................................6
3.2 Consumer decision making for product.................................................................................8
4.0 Positioning Strategy.................................................................................................................10
5.0 Marketing Strategy for Optimum Nutrition 100% Whey........................................................11
6.0 Conclusion...............................................................................................................................14
References Lists.............................................................................................................................15
Figure 1: Background to the Industry..........................................................................................................5
Figure 2: Australia Protein Supplements Market by Region & Value.........................................................7
Figure 3: Consumer Decision Making Process............................................................................................9
Figure 4: Position Map..............................................................................................................................11
Figure 5: Marketing Mix for 100% Whey.................................................................................................12
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1.0 Introduction
Health consciousness amongst Australian consumers has risen sharply in the past, which has
given rise to market for protein powder (Siro, Kapolna, Kápolna & Lugasi, 2008). The scope of
current analysis designs a marketing plan for the Company Optimum Nutrition, Inc. (ON) for its
product 100% Whey. The Company is a wholly owned subsidiary of Glanbia, which is a leading
international nutritional and cheese product brand. The report analyses market segment,
consumer segment and provides marketing strategy for the product.
2.0 Background and Industry Analysis of the product
Protein powder consumption has risen significantly in the past few years in Australia (Gordon,
2012). The industry in Australia for protein powder is dominated by UPROTEIN 100% and
Optimum Nutrition Whey gold Standard. With rising consumers in the current market scenario,
there is an increasing influx of companies that are entering the market, especially global brands.
The attractiveness of the market has attracted interests of quite a few global companies. There
are yet no alternatives that are found for protein powders and gymnasium goers as well as some
athletes prefer to start their day with consumption of the powder.
4

Figure 1: Background to the Industry
Source: Author
The industry situation remains competitive with rise in online ecommerce businesses offering a
host of choices. The companies in the industry are not able to charge exorbitant prices for the
product due to presence of large number of competitors (Kitchen & Burgmann, 2010). The
industry size is expected to expand further as the population is on rise in various Australian
cities. 100% Whey of ON brand occupies considerable market size in the Australia with majority
having preference for the product (Marin, Ruiz & Rubio, 2009). The brand having an established
market share is often referred by trainers for consumption in the morning or during any other
preferable time of the day.
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High Industry
Rivalry
Presence of large
number of
consumers/ High
bargainingpower
No
Substitution
Threat
Presence of large
number of Suppliers
(High Power)/
Online, Direct, Retail
Stores, Distribution
Network
New
Companies
Starting
Operations

3.0 Profiling of Key Marketing Segments
Profiling consumers for understanding the market segment comprises of an integral aspect prior
to designing of marketing strategy. Having a detailed knowledge regarding customers will allow
attending to the customer demands in a better manner (Oyserman, 2009). The following is a
detailed target customer segment for the product undertaken, then analysis of consumer
behaviour towards the product.
3.1 Target Consumer Market
The product market area being in Australia, the target customer segment in the country according
to the following variables has been analysed.
Table 1: Customer Segmentation
Geographic Demographic Behavioral Psychographic
o Major
Australian
cities, such as
Sydney,
Melbourne,
Victoria
o Suburbs in
Australia
o Both male &
female can
consume
o Age group 18
years of age
till 55 years of
age
o Middle
income group
and high
income group
o Health
Conscious
customers
o Gymnasium
Goers
o Athletes
o Consumers
who are
gradually
gaining health
awareness
o Obsess
individuals
keen on losing
out weight
o Students
o Office Goers
o Actors
o Athletes
o Body builders
who want to
showcase their
bodies
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In order to understand the effectiveness of the target market criteria for segmentation, factors of
measurability, sustainability, accessibility, differentiable and actionable factors has to be taken
into account as given below;
Measurable: There are several data collected for providing inputs related to consumption of
protein powders in Australia. In rising demand of the same, the following statistics conducted by
Tech Research reveals area wise demand for protein powder is set to increase further. The
market segment for protein powder is estimated to worth $389 million according to
news.com.au. There has been growth spurt of female customers in this market segment in the last
five years with earlier market share being 5-10% which has currently risen to 40-50%.
Figure 2: Australia Protein Supplements Market by Region & Value
Source: TechResearch
Sustainable: The above data represents gradual growth in the market for protein powder with this
segment being high profitable. Reports by news agencies reflect the industry to be growing at a
rate of 13% annually. Australian Sports Nutrition, being a popular supplement chain has set up
over 32 stores around the country.
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Accessible: Health supplements and protein powders are available across the country at various
retail and wholesale stores. There are online deliveries who are selling a wide range of protein
powder. Most student and young office goers prefer to purchase their protein shake through
online mediums.
Differentiable: The segment of customers can easily be differentiated from others in the market.
This segment of consumers comprises of the health conscious and gymnasium goer types.
Actionable: There is a need for some food product that needs to be consumed prior to a workout
sessions. Such drinks need to be available at affordable rates for the clearly defined target
segment.
3.2 Consumer decision making for product
Analysis and understanding consumer decision making process undertaken for the product will
allow marketers of the company design specific strategies in meeting the same (Hawkins, Best,
& Coney, 2009). Analysis of consumer decision making process for food marketing allows step
by step decision making for the product. The following is the consumer decision making criteria,
which will be followed for the product.
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Figure 3: Consumer Decision Making Process
Source: Author
The consumer decision process for consuming 100% Whey is conducted in a step by step
manner. However, major drivers for consumer purchase decisions that marketers need to pay
attention to comprise of the influences that triggers purchase of 100% Whey (Huang, Lurie &
Mitra, 2009). Consumers are more likely to be influenced by their colleagues with whom they
work out in the gym or by gym instructors and trainers. Social group will play a major role for
driving consumer decision making towards the product. Psychological factors such as
perception, learning and motivation will have a major role. As a consumer is more likely to drink
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Post Purchase Behaviour
Feeling energetic behaviour exercising or going to gym
Purchase Decision
Decision for ideal price vs volume
Evluation of Alternatives
Evaluation of price v/s benefits and volume for each product Category
Information Search
Online Sources (Social Media)/ Gym Instructor/ Friends/ Collegues
Need Identification
Food before Exercising

a protein shakes that are consumed by body builders and fitness trainers (Ernst, Hoyer &
Rübsaamen, 2010). Therefore, the marketers of the Company need to focus on the psychological
and social influences to drive purchase decisions for the product.
4.0 Positioning Strategy
The Company Optimum need to position its brand 100% Whey in the market such that it is able
to fulfill customer need and demands (Huang & Sarigöllü, 2014). The product will follow
marketing strategies by modifying communication mix to be able to reach maximum possible
consumers. The positioning strategy of the Company is aimed at;
Aim: To create an exclusive market for the product.
Goals for the positioning strategy are to;
o Increase product sales
o Bring about maximum consumer awareness in the health and fitness industry
There is present various protein powders in the market, with the current brand being known to
provide the best possible value for money (Galician, 2013). The position of the brand in the
market is depicted in the following figure;
10

Figure 4: Position Map
Source: Author
5.0 Marketing Strategy for Optimum Nutrition 100% Whey
Defining the marketing mix for the product allows identifying specific factors of product, price,
place and promotion that need to be designed for it (Gurău, 2008). The brand’s product already
has market wide acceptance, the following figure depicts in detailed marketing mix that has to be
adopted for the product.
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Dymatise
Nutrition
Elite Whey
Protein
Powder
Macs Super
Whey Protein
Powder
BPI Whey HD
Ptimum
Nutrition Whey
Gold Standard
MuscleTech
Platinum
100% Whey
Protein
Powder

Figure 5: Marketing Mix for 100% Whey
Source: Author
Product: The product 100% whey of Optimum Nutrition brand already occupies second position
in the market (Ivy, 2008). However, the Company need to consider the growing segment of
females, therefore designing a product that matches the taste buds of female consumer can
provide the Company substantial benefits. The Company can introduce newly flavored 100%
whey drinks for its female consumers specifically.
The packaging can include attributes of feminism to easily attract female consumers. Packaging
in pink colored packs or smaller drinkable bottles can provide significant advantages to the
Company. It can include a guidance of consuming the drink or preparing flavored drinks, which
can provide exclusivity to the product.
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Brand Promotion
Social Media
Sampling at Gym
Attractive Female Packaging
Retail Stores
Wholesale Distributors
Direct Marketing
Online Marketing
Competitive Pricing
Channel Based Pricing
100% Whey
Flavoured Protein Drink
Product Price
PromotionPlace

Price: Currently the product industry is highly competitive in nature; hence the Company has to
follow competitive pricing for the same. The Company in order to create a niche for the product
can package 100% whey into smaller bottles and price them at substantial low rates. This will
allow the Company to gain market share and introduce products to non-users as well.
Place: The brand of the product is currently made available across majority, retailers,
distributors, wholesalers and online platforms. The Company can make tie-up with medicinal
shops and keep their products (Owen & Humphrey, 2009). Moreover, it can also make its
product available at gymnasiums by making tie-ups with them. This would allow the Company
undertakes push-sales for the product.
Promotion: The Company’s promotional strategy includes social media promotion and online
promotions mainly (Castronovo & Huang, 2012). However, the Company needs to also consider
making banners and posters and displaying them at gymnasiums or in sports club. Distribution of
posters at major city points will increase visibility for the product and allow in communicating
targeting customers (Chen & Xie, 2008.).
The Company can make use of feedback from online customers in order to be able to connect
with new age customers. As higher percentage of customers now a days review online customer
feedback while selecting their products. Especially in regards to protein powder, feedback can
have a major role to play.
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6.0 Conclusion
The target market segment for protein powder 100% whey can attend by attending to the
marketing mix strategy as discussed. The brand in order to become more competitive in the
market has to undertake extensive promotion strategies such that it is able to reach out to its
customers. Moreover, the brand needs to orient itself towards female customers such that it can
get attention of the emerging market in Australia.
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