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
Student ID:
Student Name:
Tutor:

[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.
1

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
2

[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.
3

[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.
4

(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.
5

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.
6

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:
7

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
8

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
9

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
10

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:
11