The paper "Market Audit Report of Arnotts’ s Tim Tam" is a good example of a marketing case study. The following report discusses how Arnotts’ s has utilized its marketing mix to promote Tim Tam chocolates and maintain a large market share. The Tim Tam chocolates, which have been in the market for several decades, face increased competition than before. Nevertheless, the brand is able to not only survive through the competition but is able to be one of the most popular and valuable brands in Australia and beyond. In its maturing stage, the brand is capable of expanding customer base in spite of the increasing competition.
Through augmentation of products, Arnotts’ s has managed to gain superior customer loyalty, which is in turn related to increased revenue and profitability (Company Profile, n. d). The company uses the price-skimming strategy in which it sets the lower price but the higher quality compared to competitors. This way, the company utilizes pricing as a signalling tool. The company spends heavily on advertising and public relations. The Tim Tam chocolates are distributed widely in places that allow customers to reach them easily.
Arnott’ s uses a vertical marketing system in which Tim Tam chocolate is distributed through indirect and direct channels. By utilizing these strategies efficiently, Arnott's are able to increase the Tim Tam’ s customer loyalty, the rate of adoption and brand equity. Company background and Product Description Tim Tam is one of the chocolate brands manufactured by Arnott’ s. Arnott’ s is the largest chocolate biscuit manufacturer in Australia. With an extensive brand portfolio strategy, Arnott’ s is focused on increasing production capacity, market penetration and distribution network. Over the years, the company has recorded impressive revenue and profitability growth except during periods of economic recession when consumer expenditure declines.
This chocolate brand was first introduced in Australia in 1963 and has been marketed intensively to become Australia’ s most favorite chocolate biscuit. Currently, Arnotts’ s sells about 30 million Tim Tam packs each year in Australia alone. The Tim Tam chocolates are designed by combining different ingredients, chief among them being caramel, vanilla, milk, chocolate flavor and butter (Tim, 2004). Target Market Analysis According to Roswell (2005), Australia’ s chocolate biscuit consumption per capita per year is one of the highest in the world.
This is because, in Australia, chocolate biscuits are considered part of the daily diet and are hence eaten as a food rather than as a snack as is the case in other countries. Constant value sales of chocolate biscuits are expected to increase by 15% over the next few years. Generally, chocolate consumers in Australia as in other countries continue to look for more indulgent and healthier functional products with original flavors even if at a premium price. Arnott’ s Tim Tam chocolates are the most favorite in Australia.
The brand has a market share of 68%. The brand is well represented in all parts of the country and enjoys strong brand equity as a domestic manufacturer with a time tested legacy. Originally, Arnott’ s Tim Tam chocolates were marketed as gourmet biscuits that could be enjoyed on special occasions. The initial brand targeted a high-class market niche that valued quality and prestige. Part of the target audience included successful women and children. However, the target market was repositioned to include different market segments (Company Profile, n.
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History of Arnott’s. Retrieved 1st December 2012 from http://www.arnotts.com/history.aspx Arnott’s (n.d.).
Roswell, A 2005, Tim, Tam and Tom Settling the Tariff-trust Question: A Debate. Arguments on Both Sides Fully Reported, Sydney, Rohde & Haskins.
Tim, A 2004, Dr. Arnott's 24 Realistic Ways to Improve Your Health, Perth, Pacific Press Publishing.
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