Marketing Principles: Halo Foods Ethical Food Product Strategies

This report analyzes the marketing strategies of Halo Foods, a UK-based producer of healthy snack bars, focusing on their approach to the ethical food market and their appeal to the millennial generation. The report explores the marketing process, including organizational branding, recognition of consumer needs, and targeting consumer wants. It evaluates the benefits and costs of a marketing orientation for Halo Foods, considering customer-centricity, addressing demand, and competitive advantages. The report also examines micro and macro environmental factors impacting the company, such as customers, suppliers, and economic and social environments. Furthermore, it proposes segmentation criteria, including demographic and behavioral segmentation, and recommends a targeting strategy for a new ethical food product, such as a nutritional bar coated with chocolate and nuts, to attract the target market.

Group B1
MARKETING PRINCIPLES

LIST OF TABLES AND FIGURES
Figure 1: Micro and macro environmental factors..........................................................................4
Figure 2: Marketing segmentation...................................................................................................6

INTRODUCTION
In every organization there are various departments and marketing department is one of
them. Marketing department of the organization is responsible for introducing new products and
services of the company among their consumers. Along with that sales and benefits of the
organization is mostly dependent on the marketing activities of the organization. Halo Foods is
considered as the leading producer of healthy snack bar in UK. It considered as a young
dynamic, young and ambitious business. The company is well known to provide cereal bars at
large scales all over the world. Organization provides different types of snack bars which are
liked by the consumers of the company and the cereal bars includes various nutrition’s in it like
protein, minerals, vitamins and high fibre. Company employs over 300 peoples and produces
over 200 million cereal bars every year (Halo Foods, 2015). The present report will discuss
about the various market research methods which helps the company to know about the interest
of millennial generations towards ethical food products. Report will also analyse the use of
different concepts like segmentation, targeting and positioning strategy of Halo foods.
TASK 1 Understand the concept and process of marketing
1.1 Explain the various elements of the marketing process
Halo Foods is considered as the biggest brand which provide cereal bars to their
consumers all over the world. The company has improved its business of cereal bars and makes
their own brand name by snoop its consumers. Marketing process of Halo foods is to promote
their new ethical product to attract millennial generations in large context. So, the factors of
marketing process are as follows:
Organizational Branding
Branding is helpful for the group to develop the personality of the business along with
their products and services. The brand image of the company shows various views of the
consumers about the organization. Brand only works when firm represent and behave in a
constant way within the market (Christopher.et.al, 2013). Halo Foods used various marketing
communication methods like advertisement and promotion to make their brand recognizable
among the peoples and especially for millennial generation peoples with respect to their new
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ethical food product. The product has no added substances and business has assured that it only
consist cereals in their bars.
In addition to this, it can be stated that customer value need to be referred effectively in
order to ensure about sustainable development. By having an application of methods the better
experience can be offered to customers. In order to have effective development of tools the
issues can be resolved. Tactics of marketing can also be termed as marketing mix in which
different elements are included i.e. product, price, place and promotion. Monitoring and
controlling is element in which every aspect of marketing is analyzed and reviewed in order to
gain the best results from the marketing process.
Recognition of consumer needs and requirements
Marketing process of Halo Foods includes identification of needs and requirements of
millennial generation customers and collection of all needs and requirements in a suitable way by
which the company makes its loyal customers. Millennial generation customers are always
looking for something new, ethical, better, faster and cheaper (Wilson, 2011). In order to do this,
Halo Foods find some new and innovative ways to produce a new type of ethical food also it is
full of nutrition which are always desired by the peoples of Y generation.
Targeting consumer wants
The organization analyzes and understands the current market in which they recognize
needs of Y generation peoples and makes a successful marketing campaign in which they
produce ethical food for the consumers. Halo Foods also considers all the aspects regarding
product marketing and presently available materials in the marketplace. Along with them, Halo
Foods also uses an unusual customer drive sales strategy in market to attract target consumers to
purchase new ethical food (Christopher.et.al, 2013). This strategy is very essential and helpful
for the organization and it should also be used as a method to improve the profit rates of the
business. This strategy is not only beneficial for the organization but is also in the favour of their
consumers.
1.2 Evaluate the benefits and costs of a marketing orientation for Halo Foods
The organization should develop their products by using both product oriented approach
and marketing oriented approach. In marketing oriented approach, the company replies as per the
needs and wants of the consumers and the organization makes its decision as per the needs and
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wants of their customers of Y generation rather than the correct thinking of the firm for their
consumers (Kumar.et.al, 2011). There are mainly five sets of market oriented approach i.e.
product concept, concept of production, selling concept, concept of marketing and societal
marketing concept. Each concepts is associated to social marketing concept and these concepts
are considered as the most common and most advanced practices that are used by most of the
businesses.
Generally, most successful businesses follow the market oriented approach. This
approach takes several benefits and costs to Halo Foods. Following are the benefits of market
oriented approach.
 Customer centric: Marketing orientation is a customer centric process and Halo Foods
mainly concentrates on demands and needs of their Y generation consumers to provide
ethical food products to them.
 Addressing demand: Halo Foods always responds as per the demands of their customers
and strives hard for accomplishing their needs and requirements according to their
demands.
 Making customer benefit: The process of making customer benefit is useful for Halo
Foods to make value of buyer which increases consumer loyalty and regular shopping.
 Reasonable competitive advantage: Halo Foods always develops their products and
services that are grounded on requirements and needs of the customers and company also
ensures that they offer full use of products and services which provides them competitive
edge over its competitors.
Marketing process is used to enhance productivity of the organization. Total cost of
marketing is connected with the delivery of goods and services to their customers (Alrubaiee and
Al-Nazer, 2010). Marketing cost includes the expenses that are associated with rearranging title
of products to the consumers. There are different types of costs like sales promotion, web, public
relations, direct marketing and advertising.
 Halo Foods use direct marketing procedure, for instance, company mails out a letter
regarding to its upcoming ethical food product to their passionate purchasers.
 Halo Foods utilizes several channels for advertising their ethical food product like
cinema, magazines, TV and newspapers.
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 Nowadays, Halo Foods promote their food products through internet. Even organization’s
website provides all the necessary information about the particular product of the firm.
It has been witnessed that application of orientation values might enhance the cost of overall
operation. By having a consideration of values overall performance can be advanced but at the
initial level the costing factor will also get impacted in negative manner. After some time and
consideration of standards the cost can be controlled for long term period. Marketing cost
includes the expenses that are associated with rearranging title of products to the consumers.
TASK 2: Be able to use the concepts of segmentation, targeting and
positioning
2.1 Macro and micro environmental factors
Figure 1: Micro and macro environmental factors
(Source: Background to PESTLE analysis, 2014)
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Every organization carries out their operation in a particular environment. The business
environment is classified in two types’ that are macro and micro environment (Aragay.et.al,
2011). Both of these environments have huge impact on marketing decisions of the
organizations.
Micro environmental factors
These are the factors that are close to the business and have essential effect on the
activities and success of Halo Foods.
 Customers: Consumers are considered as the main element of the organization and Halo
Foods attracts Y generation customers by providing them excellent products and services
according to their spending habits and command in their loyalty.
 Suppliers: Suppliers are considered as another essential aspect and if the organization has
improved their supply chain then the company is able to achieve competitiveness and to
provide quality products to their consumers (Aragay.et.al, 2011).
 Shareholders: They are important for business development of the organization and it is
crucial for managing good relationship among shareholders. It helps out company to
ensure higher benefit and long term success of the business.
 Competitors: Halo Foods possess varied set of competitors; hence it is essential to focus
for the organization to stay alert about the activities and products of the competitors.
Macro environmental factors
These factors have wide scope and are not in the control of an organisation. It has long
lasting impact over the business operation.
 Economic environment: This environment covers buying and spending capabilities of
the consumers. With the change in income level, more of customers get attracted towards
it that aids in enhancing its sales volume. Further, economic growth and positive
exchange rate helps the company in enhancing its sales volume.
 Technological environment: Technological factors include latest and innovative
technology, machineries and systems (Giljum.et.al, 2011). Halo food uses latest
technology and mechanism for developing nutritional energy bar. This helps in optimum
utilisation of resources.
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 Political environment: It includes laws and regulations of local and national
governments and different political parties. Halo Food fulfils the norms set by ruling
party and also adheres to legislation related to hygiene and industry standard. This helps
the company in gaining support from regulatory bodies.
 Social Environment: With the changing needs and buyer behaviour, Halo Food is able to
market its products with ease. Customers are now more conscious about nutritional food
and it certainly helps the company in boosting its sales volume. From this, overall market
share of company gets increased.
Figure 2: Effect of Environment on Marketing Decisions
(Source: Tutorials point. 2017)
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2.2 Propose Segmentation Criteria
Figure 3: Marketing segmentation
(Source: Ahmad, 2014)
Halo Foods has large range of cereal bars, diet bars and chocolate enrobed snack bars
according to different types of consumers. In this respect company segments the entire market in
several sections by considering various factors.
Halo Foods uses demographic segmentation strategy in which the organization targets the
customers according to their age. Company has several cereal bars for various peoples of
different age group and it has been offered to them as per their taste and preference. The main
targets of Halo Food are peoples of millennial generation who are inclined majorly towards
ethical foods (Wedel and Kamakura, 2012). In this respect, organization can develop a special
nutritional bar which is coated with chocolate along with nuts and cashew. This will aid in
gathering the attention of kids and customers of other age group. This set of product will help in
competing with prominent chocolate company as well namely Cadbury, Nestle, etc. Business has
been offering special nutritional bar which is coated with chocolate along with nuts and cashew
that has nutritious cereals which helps to attract Y generation peoples as they are interested in
ethical brands and products. Even it has been seen that they prefer to select healthy options such
as organic food despite of strong economic situations.
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Hence, it is essential that company must focus on behavioural segmentation in order to attract the
customers on the basis of benefits. Through this, the company can able to market the product on
the basis of nutritional value of products which will help Halo Food in increasing its sales
volume. From behavioural segmentation, parents of small kids will also have influenced to
purchase the nutritional bar for their kids instead of chocolates. This will prove effective for the
company and results in boosting market share.
2.3 Choose a targeting strategy for a selected product/service
Every organization should follow different targeting strategy like concentration or niche
marketing, differentiated or selected marketing and undifferentiated or mass marketing. Halo
Food has new special nutritional bar coated with chocolate and nuts which possess high
nutritious cereals. This product is considered very essential for the company as they want to
target peoples of millennial generation who are only interested in eating chocolates with high
nutritional value. In this context, company need to adopt undifferentiated marketing where it
aims to attract kids and other age group customers who are keen to purchase nutritional kids.
Majorly kids and girls will be focused for this product as these set of customers purchase
chocolate, hence by targeting them, company will able to boost the sales. Also, it will influence
parents as well to buy these nutritional bars for their kids. So, this innovation is helpful for the
organization as they could attract large number of peoples for their new ethical product.
Company uses four different areas like health, interest, quality of product and easy access. The
targeting strategy of organization is mainly based on concentrated targets of Y generation
peoples which are interested in nutritional chocolate. Company has the plan to make a special
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