Analysis of Consumer Behavior and Marketing Strategies for Vegemite

This report provides an in-depth analysis of consumer behavior and marketing strategies related to Vegemite, a popular Australian food spread. It begins with an executive summary highlighting the decrease in customer loyalty and the need for strategic recommendations. The report covers a product overview, including its composition, taste, and target market, followed by an examination of marketing issues such as the exclusion of individual factors and integrated marketing communication. A critical analysis of Vegemite's marketing strategies is presented, including market segmentation, positioning, and the strategic recommendations. These recommendations include intensified digital strategies, marketing campaigns and focus on the product, and address the factors of the customer decision-making process. The report emphasizes the importance of understanding consumer behavior to improve customer engagement and loyalty. The report also discusses the various marketing strategies such as market segmentation, market positioning, and strategic recommendations to enhance the marketing performance.

Running Head: Yeast 0
Consumer behavior and marketing psychology
6/12/2019

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Executive Summary
The development of the report is a response to the consumer behaviour associated with the
decrease of loyalty from customers. In the following, the discussion covers the product
overview, marketing strategies, and issues related to the product i.e. Vegemite. In addition,
the report covers the strategic recommendations to execute strategies that help an
organization to fulfil the marketing goals. The possible source of the issue, which has been
highlighted involves integrated marketing communication and exclusion of individual factors.
As per the possible solutions, it has been recommended that they need to use the generation
of innovative products, digital marketing, and better products at lower prices.

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Introduction
The study of consumer behaviour enables marketers to comprehend and predict purchase
behaviour of the customers adequately. It is associated with not only what customers buy but
also with when, how, why, where, and how often they buy it. It is stated that consumer
methodology is utilized to study consumer behaviour and carried at each & every phase of
the consumption procedure (Javornik, 2016). It depicts the study of how people make their
purchasing decision concerning their accessible resources. The behaviour that customers
undertake in using, purchasing, evaluating, seeking, and disposing of products as well as
services in order to fulfil their needs (Rödiger and Hamm, 2015). In the following, the
discussion has also been made on the perception and behaviour of the Australian consumers
and the selected product for the evaluation is Vegemite. It is stated that consumer behaviour
has become a significant part of strategic market planning. In addition, the report is
segmented into two key sections i.e. product overview & marketing issues and critical
analysis of the selected product.
Product overview
The product chosen is Vegemite, which is a black, thick, and salty spread produced from
leftover brewer’s yeast. It is not a gluten-free product, but practically a vegetarian, sugar-free,
and fat-free product. The flavour of the vegemite is slightly salty with a subtle bitterness,
which is eaten while spreading on crackers or bread with some butter. It is stated that some
people like to eat by the spoonful straight from the jar. Vegemite is full of huge vitamin, 0%
fat, special ingredient, sugar-free and exceptional taste. It is considered as the fast-moving
consumer products in Australia. In simple words, it is a thick paste utilized as a bread spread
produced from yeast extract flavoured with onion, celery, and several other ingredients
(Hamilton, Alici and in het Panhuis, 2018).

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Vegemite is an acquired taste that frankly defies description and spread on toast with slices of
cheese to make Vegemite soldiers for Dippy Eggs, which is utilized to flavour soup stocks.
This product is a special product for man as well as women in the age group of 15-60 years
old individuals who love eating nutritious products (Liu et al., 2018). In addition, Vegemite is
a product that has cultural value because of the reason that it is an Australian product. A thick
black jam is commonly consumed with bread and toast. It comes in diverse presentations i.e.
small, medium, and large jars. It is stated that the small jar contains 250 grams, a medium jar
is of 350 grams, and large size is a jar of 550 grams of the product (Lindberg, Nichols and
Yam, 2017). Regarding the taste of the product, several clients say that Vegemite flavour is
just similar to the bitter jam but at the same time, it is salty, which provides flavour to beef
bouillon. Their price of the product differs as per its size as the cost of a small jar is about $3
AUD, a medium jar is about $6 AUD, and a large jar is about $10 AUD respectively (Esty,
2017).
Marketing issues
 Exclusion of some individual aspects- It is stated that the organization psychological
factors have taken into consideration. Individual factors have not been included to
maintain marketing strategies. They are been categorized into age, ethnicity, gender,
and family life cycle model, which is a significant part of the segmentation &
positioning of the market (Kerr and Schulz, 2017). If an organization does not assess
this factor effectively, the inclusion of the products in the marketplace can be a total
disaster. It can be pointed out that the organization has not assessed correctly the
factor of the life cycle, which obey to the diverse stages of a people i.e. children,

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adult, or older people into the family. It can be considered as an issue, which the
organization is losing loyalty from the customers, for instance, without a family life
cycle model, the segmentation of the clients cannot be maintained (Maji, 2016).
 Integrated marketing communication- It is stated that there are diverse marketing
communication methods so the organization needs to make full emphasis on
advertising as this is the simple way to communicate with the customers. It can be
said that there are communication gaps, which needs to be addressed if they involve
other methods of communication such as direct marketing or personal selling as a
marketing strategy. The establishment of integrated marketing communication can
provide effective results as it works like the Pavlovian theory, where clients behaviour
come from conditioned responses (Contois, 2016).
Critical analysis
Marketing strategy
Vegemite is a slightly bitter, malty, salty, and rich in glutamates, which provides a similar to
beef bouillon. It can be utilized as a filling of pastries such as the cheesymite or it can be
utilized to make more dishes that are exotic. It is stated from the fact that customer loyalty
with the organization has reduced during the past year as it is necessary to carry out research
to discover the concerns associated to marketing communication mix and current marketing
strategies utilized by the organization with the selected target (Beverland, Dobele and
Farrelly, 2015). In addition, in this report, there is worthy information that demonstrates
whether marketing strategies are associated with the findings of consumer behavioural
factors. Further, in this report, the strategic recommendations have been made for the
organization depending upon the requisite assets. The organizations maintain diverse
marketing strategies, as they need to maintain strong concentration in the utilization of TV
advertising and social media to promote the vegemite (Venaik and Midgley, 2019).
These strategies are established in three phases i.e. planning, design, and management phase.
In the planning phase, the organizations assess the customer profile and in other words, they
evaluate the preferences that lead people to acquire the vegemite. It is significant to stresses
the fact that the implementation of customers’ needs is part of the consumer decision-making
process comprises of 5 steps i.e. need identification, information search, evaluation of
choices, purchase decision, and post-purchase evaluation. It is stated that the second phase is

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the design of the marketing strategy in which the organization sets out the messages and
colours to be utilized in the advertising depending upon the psychological factors such as
beliefs, learning & perception, motivation, and attitudes (Dobele, Steel and Cooper, 2015).
The factors, which has been considered to design strategies, which are associated with the
psychoanalytic theory. It is determined as unconscious aspects that stimulate human beings to
make ethical decisions. The third phase is the management phase in which the organization
analyses marketing strategic performance to define whether it is effective or not. It is stated
that the organization does not involve cultural aspects to establish marketing strategies as
evident by the implementation of values and cultures, notwithstanding, there is not an
appropriate implementation of social class. In this point, it is important to consider the
Marshallian Economies theory, which says that individuals can purchase if they can afford
that. Hence, they need to evaluate the social class, which has a major influence on customer
loyalty (Salt, 2016).
It is stated the marketing strategies does not fulfil the expected performance, which can be
resulted in assessing the internal as well as external factors of a strategic plan. The
organization has to take appropriate implementation, which has a major influence on
consumer behaviour in marketing strategy. There is also an increase in the number of
competitors with the increasing habits to eat nutritiously as well as healthy food. So, there are
also increasing in a number of organizations that have to incorporate nutritious products on
their portfolio. The competency is also the significant factor that can have an influence on
having decrease number of clients that consume vegemite. In addition, there are products
with similar features than the vegemite with lower prices, which affects clients when
purchasing. It can be explained concerning the Marshallian Economies theory as the
customers seek for cheaper prices in order to meet the needs (Esmaeilpour and Aram, 2016).
Some marketing strategies can be utilized by the organization for publicizing the vegemite in
the Australian markets-
a) Market segmentation- Vegemite is a highly nutritious product consumed by a woman
as well as elders with a special diet because of its high nutritional features. The people
of Australia from all social class depending upon the needs, living standards,
expenses, perception, and several other factors consume it. It can be differentiated
into several other categories-

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Psychographic segmentation- It is stated that the aspects, which are differentiated
into several other sub-groups i.e. social class, lifestyle, and personality of the
purchasers. These help in developing the product and create an image in the minds of
the customers in the market. All these factors affect the growth as well as sales of the
vegemite.
Demographic segmentation- This sort of segmentation depends upon the factors
such as age group, ethnicity, gender, as well as the income of the buyers. For the
product, vegemite, it is easy to identify the age factor, as elder people and woman
mostly consume it.
Geographic segmentation- While establishing the product, basically during its
marketplace, aspects such as age, family size, as well as income, which is ascertained
by the company.
Behavioural segmentation- In this sort of segmentation, the main element is buying
preference, loyalty status, and customer decisions. It is quite evident that the client is
also targeted differently based upon the benefits that are seeking in vegemite, as some
people might need high nutritional as well as healthy food.
b) Market positioning-It is stated that the company should be well aware of the market
needs as well as preferences and need to effectively communicate with the clients.
The delivery of the products should be highly nutritious, safe, and desired quality.
There should be no delays in the supply of the vegemite and need to maintain an
effective brand image in the minds of the clients. They should create awareness
concerning the product by expending a good amount on advertising (Stocks et al.,
2017).
Strategic Recommendation
 The initial recommendation is to execute an intensified digital strategy. They can
maintain an effective utilization of social media strategy utilizing common platforms
such as Instagram or Facebook, which can increase customer engagement by up to
16% per month. It can be associated to two diverse theories i.e. Pavolian theory,
which is stated as in these days, clients utilize social media to strive for products that
have made customers to purchase products posted in social media. Another theory is
the psychoanalytic theory, as it is stated that individuals utilize social media enforced
by unconscious motivation. There are other positive aspects of social media, for

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instance, if you utilize the correct hashtag, publication, and appropriate filters so that
they can direct great acceptance on Instagram. It develops the significance to
dominate the marketing strategy and social network so that customers can contribute
effectively. The utilization of the digital strategy permits organizations to evaluate the
preferences of the client, for instance, Instagram has an alternative to generate surveys
in asking clients about their favourite products (Boots, Tiggemann and Corsini, 2018).
 Another recommendation is to generate a marketing campaign by asking clients
feedback concerning their experience consuming vegemite. These campaigns can be
sent by Indeed, which will help the organization to collect information to make
changes to recent marketing trends concerning the client’s needs. It is stated that E-
mail marketing is an effective tool that most organizations utilized as a marketing
strategy.
 Additionally, the organization needs to maintain nutritious vegemite and try to make
an effort to initiate a new line of vegemite that has healthier features with lower
prices. It depends upon the Marshallian Economies approach in which several
customers react positively to low prices (Malek et al., 2016).
Conclusion
In conclusion, it is stated that consumer behaviour enables to become a better customer to
take more appropriate consumption associated decisions. In the above, the discussion has also
been made on the issues and product overview depending upon the attitudes as well as buying
preferences. To fulfil the need of the clients, the organization embraced market segmentation
strategy to vary the positive image of vegemite in order to fulfil the certain needs of target
segments.

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