Arnotts Biscuit Marketing Plan: Target Market and Strategies Report

This report provides a comprehensive marketing analysis of Arnotts Biscuit, a major Australian biscuit and snack food producer. It begins with an executive summary outlining the company's target market (30-60 age group, middle/lower class), positioning (quality and competitive pricing), and marketing mix. The report then delves into macro and micro-environmental factors, including political, economic, social, and technological forces, as well as competitive rivalry, supplier power, and buyer behavior. A detailed target market analysis follows, examining demographic (age, gender, occupation), geographic (urban, suburban, rural), psychographic (social class, lifestyle), and behavioral segmentation (benefit expectations, price sensitivity). The marketing strategy section covers positioning, product (three levels), price, placement, and promotion. The report concludes with an overview of the marketing plan's effectiveness, referencing the importance of quality and customer needs in the Australian market. The report utilizes relevant marketing concepts and models to provide a strategic overview of Arnotts Biscuit's operations.

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Executive summary
Target Market-Arnotts Biscuit sets 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.

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Table of Contents
1. Introduction.................................................................................................................................4
1.1 Background of the company..................................................................................................4
1.2 Macro-environmental forces..................................................................................................4
1.3 Micro-environmental actors...................................................................................................6
1.4 Consumer behavior................................................................................................................8
2. Target market analysis.................................................................................................................8
2.1 Demographic..........................................................................................................................8
2.1.1 Age..................................................................................................................................8
2.1.2 Gender.............................................................................................................................9
2.1.3 Occupation......................................................................................................................9
2.2 Geographic.............................................................................................................................9
2.3 Psychographic......................................................................................................................10
2.3.1 Social class....................................................................................................................10
2.3.2 Lifestyle........................................................................................................................10
2.4 Behavioral segmentation.....................................................................................................11
2.4.1 Benefit expectation.......................................................................................................11
2.4.2 Price sensitivity.............................................................................................................11
3. Marketing strategy.....................................................................................................................12
3.1 Positioning map...................................................................................................................12
3.2 Product: Three levels of product..........................................................................................13
3.3 Price.....................................................................................................................................15
3.4 Placement.............................................................................................................................16
3.5 Promotion............................................................................................................................17
4. Conclusion.................................................................................................................................18
References......................................................................................................................................19

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1. Introduction
1.1 Background of the company
Arnotts Biscuit is 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 Biscuit also manufacturers snacks food. The company was
established in 1865 with its current headquarter in New South Wales, Australia. There are series
of products that Arnotts Biscuit has 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
Elements Illustration
Political  The World Bank report states that the
political stability in Australia is moderately
stable with an average of 1.02.
 The government effectiveness is decreasing
that can create some problems for the
business activities of Arnotts Biscuit
 However, the regulatory quality of
Australia is very high that helps Arnotts

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Biscuitto develop its business profoundly.
Economic  Australia is considered to be one of the
major developed country therefore it is
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
era of globalization where the business
organizations get economic freedom
extensively. As a result of that for Arnotts
Biscuit it creates havoc impact to the
business activities.
Social  On 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
so that the business organizations like
Arnotts Biscuit also puts emphasis on the
sustainable development practice.
 As a matter of fact, the happy and
hospitable nature of the Australian people

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also create a better environment for the
business organizations to flourish
effectively.
Technological  Use 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
Elements Illustration
Competitive rivalry  High competition in the restaurant market
due to the presence of both the
multinational and the domestic companies.
 The SMEs feel pressure in doing business
in Australia due to the heave dominance of
the giant companies.
 The development in tourism makes the
restaurant business highly flourishing so
that the competition will definitely be

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intensive.
Threat of new entrants  Low 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
new entrants to establish business and
market capitalization effectively.
Bargain power of the suppliers  Moderate level of suppliers’ power can be
seen in the Australian market due to the
limited range of quality raw materials
suppliers.
 The multinational companies do not feel
pressure due to their international
supplying network. However, companies
like Arnotts Biscuit face huge pressure
from the suppliers.
Power of the buyers  Buyers 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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important for the business companies to set
its gaze on the changing nature of the
customer behavior so that the company can
gain strategic advantage in the competitive
market.
 For Arnotts Biscuit the customers are
identified as the most important aspect to
deal with and for this the company tries to
take sustainable attitude in business.
Threat of substitute  High threat of substitute product is always
a big challenge for the hospitality industry
in Australia.
 Big business organizations like McDonalds
and Starbucks create immense challenge
for Arnotts Biscuit to expand its market.
1.4 Consumer behavior
The consumer behavior of Arnotts Biscuit is primarily based on four key components in
terms of the demographic, geographic, psychographic and behavioral segmentation. Therefore, it
can be stated that Arnotts Biscuit puts great deal of impact on the customer behavior and tries to
define the consumer behavior in terms of the specific target segmentation.

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2. Target market analysis
2.1 Demographic
The demographic segmentation is based on the demographic variables in terms of the
vital and social characteristics of population, education, income and age. According to
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 of Arnotts Biscuit is based on both the existing and the possible
customers of the restaurant. For instance, Arnotts Biscuit sets 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 by Arnotts 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 of Arnotts Biscuit are children with an age from 5 to aged people
of 60 years old. Therefore, the occupation is not supposed to be an important variable for Arnotts
Biscuit in order to access the target customers.

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2.2 Geographic
The geographic segmentation of target customers is based on the principle of climate,
local population, market density, regional topography and the urban, suburban and rural
footprints (Grunert, 2018). Based on this understanding, it can be stated that the geographic
segmentation of Arnotts Biscuit sets 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 of Arnotts 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 by Arnotts

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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 the Arnotts Biscuit management 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
the family people are considered to be the target customers of Arnotts Biscuitand the
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 consumers Arnotts 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 the Arnotts Biscuit offers them tasty and crunchy biscuits that will
bring them happiness and make them highly beneficial to purchase the snacks and biscuits of
Arnotts Biscuit.

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High Quality
Low quality
High priceLow price
2.4.2 Price sensitivity
Another major concern is the price sensitivity. As most of the customers of Arnotts
Biscuitare middle and lower class people therefore a moderate pricing strategy attracts them
more to buy the quality foods prepared and served by Arnotts 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