BUS303: Analysis of Marketing Strategies for New Zealand Natural

This report provides a comprehensive analysis of the marketing strategies employed by New Zealand Natural Ice Cream, a global premium ice cream brand. The report begins with an executive summary and an introduction to the company, highlighting its franchise network and product offerings. The core of the report delves into the implications of various marketing strategies, utilizing tools such as Ansoff's Product-Market Growth Matrix, the BCG Matrix, and SWOT analysis to assess the company's strengths, weaknesses, opportunities, and threats. Strategic recommendations are then provided, focusing on enhancing online presence, integrating data repositories, building value-based relationships with distribution channels, and diversifying product offerings. The report also discusses the role of metrics and key performance indicators (KPIs) in managing marketing strategies and identifies suitable metrics for New Zealand Natural. Furthermore, it addresses the complexities of developing marketing strategies, considering organizational size, and outlines professional standards of practice within the company. The conclusion summarizes the key findings and recommendations, providing a clear overview of the company's marketing landscape.

Course Code: BUS303
Course Name: Marketing Management
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[1] Executive Summary
This essay is about the marketing strategies and their evaluation by researching New Zealand
Natural Ice Cream. In this regard, the essay starts with a brief introduction of company followed
by the identification of possible implications using various strategic marketing tools. Moreover,
the role of metrics indicators and suitable metrics are discussed to evaluate the marketing
strategies of company and provide some recommendations based on that. The essay also includes
the complexities in developing marketing strategies in terms of the size of organization and a
discussion about professional standards of practices.
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Table of Contents
[1] Executive Summary 1
[2] Introduction 3
[3] Discussion 4
3-1. Possible Implications on Marketing Strategies 4
(a) Ansoff’s Product-Market Growth Matrix 5
(b) BCG Matrix 7
(c) SWOT’s S&W 9
(d) SWOT’s O&T 10
3-2. Strategic Recommendations for New Zealand Natural 10
3-3. Role of Metrics Indicators in Managing Marketing Strategies 11
3-4. Suitable Metrics for New Zealand Natural Marketing Strategies 12
3-5. Complexities in Developing Marketing Strategies 13
3-6. Professional Standard of Practices within the Organization 15
[4] Conclusion 16
[5] References 17
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[2] Introduction
New Zealand Natural is an Auckland, New Zealand based company of premium ice creams with
its presence in the global market through their franchise network. The company has products of
ice cream, smoothie, and frozen yoghurt, and has franchises in Thailand, New Zealand,
Australia, and others. In 1984, the company started its business as a small creamery at
Christchurch New Zealand and became famous as they are using no artificial flavors and colors.
Rael Polivnick, the founder of the company, saw the potential of this business and bought the
rights to open the very first New Zealand Natural Store at the famous Bondi Beach in Sydney
("History - New Zealand Natural", 2017). According to the given scenario, it has been observed
that temperature of person, place, and the products affect the buying behavior of the customers
and companies need to change their marketing strategies accordingly. This essay has been
attempted to identify the possible implications on marketing strategies of New Zealand Natural
by some strategic tools based on research. The role of metrics indicators in managing the
marketing strategies of the company has been studied to figure out some of the suitable metrics
for New Zealand Natural. Furthermore, the essay also reflects the complexities of developing the
marketing strategies and their differentiation on the basis of the organization size. The essay also
identifies the professional standards of the practices that are followed within the organization.
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[3] Discussion
3-1. Possible Implications on Marketing Strategies
There can be many implications of marketing strategies of Naturals. Example, the value chain
network that utilizes the marketing strategies can affect the overall sales department
The advertisements campaign, that are used for the company can extend on the emotions that are
attached on buying an ice cream. This perceptiveness of the customer must match the core idea
of the campaign, thus, it can be successful in communicating the real ideas to the customers
(Ogunlana, 2010). The advertising campaigns of this organization should be done in
consideration of global customers. The global customers that form most of the revenue
percentage gained the customers. It is of utmost importance, that the customer must be taught of
the value they are going to perceive in their purchased product (Hallbäck & Gabrielsson, 2013).
The social media campaign used for the products are also needs to be customized in every
possible way. Customization needs less control over standardization, which needs to be
considered. The behavioral aspect of the customer is also affected by the message they receive
from the front-end function of the outlets (Beatham, 2013). It cannot be denied that Ice cream is
one of the most emotional objects of customers life related to warm satisfaction that they receive
after having it. If the satisfaction is everlasting the repurchase and recognition rate of the product
increases. Thus portraying this in the media campaigns is very important.
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(a) Ansoff’s Product-Market Growth Matrix
The Ansoff matrix was introduced by Igor Ansoff. It is a vital tool in strategic planning as it
helps organizations in identifying their growth through the strategy of diversification and
intensification that help in achieving growth by specific amendments in the existing business
strategy of the company (Mhurchu et al., 2016). According to Ansoff model, there are four
different possible strategies: Market Penetration, Product Development, Market Development,
and Diversification.
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Market Penetration Strategy: In this strategy, existing products are used to achieve growth in
existing market. New Zealand Natural’s market penetration strategy is to achieve growth of
customer base in the market by setting up more number of stores in the market as well as places
such as airports, hospitals, schools, highways etc. with entire range of products, through
intensive distribution in order to reach every potential and existing customers.
Market Development Strategy: In this strategy, business is created by developing fresh markets
while continuing in existing products. New Zealand Natural is trying to capture unexplored and
new sectors without developing new products (Mhurchu et al., 2016). New Zealand Natural has
started to shift its focus to new and potential markets such as rural areas and small towns, the
market of sugar-free products for health conscious and diabetic people.
Product Development Strategy: In this strategy, new products are developed for the customer
base already existing. New Zealand Natural has made vast use of this strategy in capitalization
by consistently introducing new products.
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Diversification Strategy: Diversification strategies are vital for future growth opportunities of a
company. Diversification is successful for the launching of a new product in the new market and
helps in providing growth opportunities for the future. Since diversification involves the stepping
of the company into a market with unknown parameters, it is observed as a high-risk strategy.
New Zealand Natural has felt the need of increasing its presence in various markets and have
introduced many new strategies to cover the entire market.
(b) BCG Matrix
BCG Matrix application on a brand helps in identifying the products which act as organization’s
revenue source (Cakir & Balagtas, 2014). Further, it also helps in figuring out those products
which have negligible chances of growth in future to stand in constantly changing trends of the
industry. The BCG Matrix for New Zealand Natural is given below:
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Cash Cows: The products that have high market share and sold in a fully developed industry
where future growth is not expected are known as Cash Cows. Cash Cows are used by the
companies make revenues while being benefited by the products’ profitability as the low
investment are needed for these products.
Stars: The products with high market share and growth potential in the future are termed as Stars
in BCG Matrix. The dynamics of the industry support growth when the industry itself is in
development phase (Cakir & Balagtas, 2014). Companies observe these products as potential
Cash Cows considering the prospects of growth.
Question Marks: The products that are expected to see future growth in market share are termed
as Question Marks. These are named as the Question Mark because these products can either
successfully become a Star, or may become the constant source of loss. If the issues are managed
properly, the products get enough room for growth in the market resulting in growth potential for
the company. However, incorrect management of the issues can have negative effects on the
product’s market share growth.
Dogs: The products with low market share and limited chances of growth in business for the
organization are termed as Dogs. The lower chance of success act as an indicator of careful
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decision-making by the management for investing in the product since much benefit is not
offered by those.
(c) SWOT’s S&W
SWOT’s S&W helps in analysing strengths and weaknesses of the company in the existing
business environment in order to make suitable strategies such that strengths can be utilized for
making profits while weaknesses can be worked out to prevent from losses.
Strengths: These are the business areas in which the company excels and can potentially bring
in profits. New Zealand Natural Ice Cream has the competitive advantage of great brand value in
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the market because of its quality products (Ryan, 2016). The products have been proven best in
the industry by winning several awards every year. The products are accompanied by an image
of being premium and for health conscious people. Products have been franchised to different
countries using different approaches while maintaining the same standard of the brand.
Attractive product packaging is also considered as one of their major strengths.
Weaknesses: These are the business areas which adds to the negative growth of the
organization. New Zealand Natural Ice Cream also has certain weak business areas which should
be improved in order to enjoy continuous growth in the market. These business areas include
lacking distribution system for the retailers, inconsistent manufacturing and etc.
(d) SWOT’s O&T
SWOT’s O&T helps in analysing the opportunities and threats for the companies in the existing
business environment which may affect the business in the future in order to amend the future
business goals as per the analysis so that future growth is ensured.
Opportunities: These are those potential aspects of the business which seems to be helping the
company in the future. New Zealand Natural Ice Cream has the opportunity of launching the
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products in any price range as they are already perceived as the premium quality provider of
products (Solomon, 2014).
Threats: These are those potential aspects of the business which seems to be impacting the
business negatively in the future. Threats to New Zealand Natural Ice Cream in sustaining the
business include strong competition in the market and inefficient distribution system which are
disturbing the reach of the products to the potential customer.
3-2. Strategic Recommendations for New Zealand Natural
Now, on the basis of the four strategic tools and the given scenario, three major implications
have been observed as outcomes that can affect the marketing strategy of the business which are
given below:
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 Increasing online presence – the social media tool must be sued to its highest efficiency.
The company’s website has appeared to be attractive but relevance is low in this site.
From a point of view of information shared, they come short on that.
 Integration of online media tool and data repository – the metrics that are used in the
company will be more effective if they are backed by the data repository system. The key
performance indicators are needed to measure but the data storage of the customers
increases the efficiency of the sales department (Ogunlana, 2012). Treating the wide
range of product and managing the different distribution channels will be easy if the data
efficiency and effectiveness is maximised. Moreover, the conversion rate is also
increased by social media marketing.
 Building value based relationship with distribution channel - the distributor that are
associated with them needs to perceive the great value that the company has in the global
market. This will help the company in strategise the partnering implication and
integrating backwardly in the future.
 Structuring strong network global business – the company reputation and brand image
depends on the efficiency of the network channel they uses. Distribution channels that
have good records of past in their local or regional areas must be explored and then
decisions must be taken based on that.
 Diversification - the diversification strategy in the desserts business units can give them
an advantage of increasing their presence as bakery specialists and enhancing the value
chain networks that they operate on.
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3-3. Role of Metrics Indicators in Managing Marketing Strategies
Marketing performance metrics or KPIs (key performance indicators) are not only useful for
marketing professionals, but also for the executives from different non-marketing fields. All the
upper-level employees such as the vice president of sales or chief executive officer of the senior
management of the company require marketing KPIs to implement the marketing activities and
investments to observe the impact on the company's bottom line. This is mainly important for
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making the companies’ marketing budgets during negative situations such as economic
downturns, mergers, and downsizing. In addition, performance metrics help in meeting
customers’ needs, setting up specific business goals, being proactive in the market, and
completely fusing advertising into the business purpose.
The metrics those are useful for marketing are in the departments of channel distribution of
different business units and media handling. The whole point of using this metrics is to move
toward the annual goal of the company, it also help in gain a logical progress report and gaining
the insights on sales evaluation. This metrics are helpful in building the brand equity and
increasing the market share, market return, and customer profitability. After all, the complex
process of tracking the customer segment is needed for building a better relationship and
customer acquisition. The metrics indicators that are used in the marketing are solely for the
usage of measuring performance. The huge database that is gathered from customers’ personal
information to their taste and preference is for the purpose of the help of using it in the further
purchase of the Company’s products by prospective customers. There are certain parameters that
are usually used in measuring these marketing strategies, which are discussed below.
3-4. Suitable Metrics for New Zealand Natural Marketing Strategies
There are 9 metrics traditionally used in measuring the key performance indicators, which is
used to develop strategies. Natural’s is an organization, which is based on Newzealand and
operates all over the world’s major cities and metropolitans by using franchise models. Some
metrics is essential for the company’s growth and efficient marketing strategies
 Cost to generate traffic - as it is operating wholly based on supply-channel operations,
there must be some investment used to generate the multichannel traffic. This can be
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done by using different resources. Outsourcing the distribution agencies, which uses the
frachise cooperation, is of utmost importance. The technical support also comes under the
cost of investments to generate the traffic of the customers. Multi channel user needs to
track the cost used in different marketing tools.
 Marketing spending metrics – The cost per acquisition of new customers are measured
in the metrics. New customer acquisition is said to be five times more expensive than
retaining an old customers (Cramer, 2016). New-Zealand Natural’s ice cream comes
under the luxury item that the customers spends from their income. So it is not easy to
retain a customer if the necessary value of money spend in the luxury item is not
similarly perceived in the customers eye. Again, the incremental spending if not
recovered by the Return on Investment simultaneously, it can affect on the whole budget.
 Visitor’s acquisition KPI is – having a retail chain has its own advantage and
disadvantages. The sales funnel is calculated based on conversion rate of visitors
(Parmenter, 2015). The online visitor’s measurement is easy to calculate but having a
parameter for physical stores are important. There are some observations that needs to be
looked upon, like visitors numbers, sources of the visitors coming, unique visitor
classification. Tracking the sources and using the reporting tools are easy.
 Buyer metrics - frequency of buying or retaining customers is calculated in this metrics
system. This values are Average Order Value (Beatham, 2013). This helps in
understanding the different customer levels. It also makes them easy to compare the
different segment of customers. The market share and equity is derived after that which
helps in calculating Customer Lifetime Value (CLV). This metrics includes all the top
and bottom line parameters of sales. Naturals being dependent on the supply chain
management and logistics capability of the companies that are associated with them
through different channels, needs to integrate a reliable data management system.
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3-5. Complexities in Developing Marketing Strategies
While developing the marketing strategies for the businesses, the management faces a lot of
complexities which differ according to the size of the company. Following are some of the
complexities in the development of marketing strategies:
(a) Demand Determination: Large businesses such as New Zealand Natural face a lot of
difficulty in determining the demand for the product in the market. Since the products in large
businesses are generally divided into three categories, first category of products are for those
who get satisfies with the basics and do not have any preferences, second category of products
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are priced at medium range that is easily affordable for the high-income groups and quite
premium for low-income groups and the last category of products are for high-income groups
only that is unaffordable for even middle-income groups (Venugopal & Vishwanathan, 2017).
While making the marketing strategies, the company has to identify varying demands of the
product according to the area.
(b) Varying Localities: The marketing strategies formed can easily be implemented and
communicated to the people in the urban areas through various modes such as advertising
campaigns, radio channels, newspaper advertisements, etc. However, in rural areas, it is harder
for the companies to use these techniques for reaching them. Thus requiring them to be more
careful while strategizing and planning. Small businesses, on the other hand, can easily market
their products effectively in the surrounding market because of the smaller market size of these
businesses.
(c) Focusing the Essentials: Essentials of a product will differ for the people on the basis of
their income, community, locality and other different factors. The low-income group will buy the
ice cream with a purpose of eating something frozen and sweet, the middle income group will
add the preference of flavor to the purpose of buying it, while the higher income group will also
consider the freshness, richness, and other such preferences (Mone et al., 2013). The larger the
business, the larger market they will cover which is directly proportional to the variety of people
expecting to fulfil different types of essentials from the product, Whereas small business will
focus on fulfilling the expectations of smaller markets with the lesser variety of people.
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3-6. Professional Standard of Practices within the Organization
The standard of practices followed in the New Zealand Natural is very professional as they have
made commitments which take care of all of their retail customers, their franchisees, their café
and restaurant operators, and their staff. The commitment to the retail customers involves
practices which make them feel good via pleasurable and fun experiences by offering them
exceptional quality products that are tasteful ("Know Us - New Zealand Natural", 2017).
Commitments to the franchisees include the practices that can provide a retail system which is
comprehensive with professional services and supports so as to get benefited from an
international chain that is well branded to help the individuals to become successful retailers. For
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restaurant & café operators their commitment includes practices that involve the distribution of
products with quality through impressive support and service that can add value to the
businesses. For their staff, commitment includes practices which can offer an environment that
increases personal growth, team spirit, and job satisfaction.
[4] Conclusion
On the basis of above discussion, it can be concluded that New Zealand Natural had successfully
implemented its marketing strategies in order to foster positive growth by using the brand image,
rich taste, and premium quality. However, there are certain weaknesses and threats related to
distribution strategies that have been observed through the findings of the study. Overall, New
Zealand Natural is all about premium products, brand image and market reputation, and
assurance of quality products by committing to all the customers, restaurant and café operators,
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franchisees, and staff. Hence, the marketing strategies developed by considering the role of
temperatures of people, place, and products affect the buying behavior of the customer.
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[5] References
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from http://www.nzn.com.sg/us/history/
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from http://www.nzn.com.sg/us/know-us/
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