Marketing Communication of Competing Brands - A2 Milk Company - Case Study Example

MARKETING COMMUNICATION OF COMPETING BRANDS By: Professor: Class: University: City: State: Date of submission: Marketing Communication of Competing Brands Introduction To increase the brand sales and market share, A2 milk launched campaign to drive these objectives. The milk is aimed to meet consumer specific demands. Through the campaign, the company planned to sell category need, increase the level of brand awareness, and improve the brand attitude through launching the shows in the television advertisement. Since it was launched in 2003, the milk has been able to change the traditional milk industry. In the marketing campaign, customer health remained the key point. Based on the research, about one in four Australians have problems in taking regular milk which cause digestive issues, diarrhea, and discomfort. As a result, most people believed that they were lactose intolerant. The A2 milk comes from the cows selected to produce milk that contains only A2 protein (Keith, 2009, 122). The campaign aimed to alert many Australians having difficulty with A1 milk that they had alternative. Even though offering the Australians the A2 milk failed to stand out at first glance during the campaign, it differed from the other brands: the A2 milk did not aimed to promote an alternative for the milk-averse customers. However, the campaign aimed to get those customers to try the milk again. The main slogan used in the marketing campaign was that the A2 Milk Company produced safe milk to those with high levels of sensitiveness. Critique Communications Objectives A2 Milk Company hoped that through the marketing campaign, the customers would have a chance to know organizational characteristics, the products, and brands it offers to the market. Therefore, marketing communication is key factor for the company to meet such objective. Marketing communication is considered as all the messages and media deployed to communicate with the market. A2 Milk Company advertisement aimed to promote the safety of the milk to the sensitive customers. Moreover, the purpose of the company was to remind the customers when they want to buy milk that is safe for their digestion, A2 was the best choice. Considering that the milk was an infrequently purchased product, establishing brand awareness played important role in the development of marketing communication. There are two types of brand awareness that the marketing campaign focused on: recall and purchase. The advertisement of A2 Milk Company belongs to remind. Creative Strategies & Tactics The business used the insight strategy which involves coming back to the consumers and their recent concerns regarding the things they eat and drink. The strategy was emotionally invested in the health and making the customers understands where the products come from and the content. Most consumers are always keen to investigate provenance matters especially when the health of their families is involved. In the modern Australian market, the desire of most customers on health often transcends the appealing of the cheaper option. The company knew that if its A2 campaign message on the health and well-being were compelling enough, then the higher point of the milk would not be an issue or barrier to consumption (O'Brien, 2016). Considering the restriction experienced by A2 in its storytelling to the customers, the business chose to target the customers in one of the most powerful methods: through emotional connection. To establish a good market base for the product, the company seized on such modern sentiment and established a campaign strategy which focused on the benefits of the milk. A2 Milk Company understood that the core consumers had long suffered from sensitivity which prohibited them from enjoying the milk. In the campaign, the company created television and outdoor ads which featured the real customers enjoying the milk without previously experiencing discomfort. Instead of extolling on the virtues of A2 beta-casein or the lengthy explanation associated with the intricacies of digestion, the company focused on the campaign that featured real consumers through saying, ‘Thank You A2.’ The Target Customer The segmentation and targeting theme used by the company was ‘Better for you.’ In the western countries, including Australia, mixed grain milk is the common breakfast meal. Nonetheless, studies have revealed that such practices lead to stomach-ache. Based on the customers’ feedback on the A2 milk, children often ask for more glass of milk instead of water of juice as witnessed initially. In addition, A2 milk in itself is a brand name which relate to protein a2 that assist in achieving high ranking keywords, helps save the advertisement cost, and invest in smart marketing campaigns. With its ‘better for you’ slogan, the product was unstoppable. The slogan described healthier products which consumers felt better during consumption. The segment and targeting methods used include demographic, geographic, psychographic, and behaviors (Iacobucci, 2014, 147). Based on the demographic segment, the targets are male and female, kids and adults, income earners, professionals, pregnant women, and young families; geographic segment include global presence in the Australia, New Zealand, USA, and China, western cultures, and Asia. The psychographic segments include customers with the knowledge on the importance of A2 protein, health conscious customers, healthcare professionals, and those who do not take A1 milk in Australia. For the behavior segment, the targets were the customers linked to A2 Milk Company brand with enhanced digestive comfort and reduced milk sensitivity program. In Australia, sensitivity is increasing the concern of consumers which influence their purchasing power. Market Partitioning and Competitive Frame In the Australian market, the A2 milk products are found in the main grocery chains and several café stores. There are several studies that reveal that A1 type of protein cause harmful health risks to the users; however, this has remained a controversial issue which has not had clear conclusion. It is from such background that A2 Milk Company aims to take the advantage and increase its revenue. A2 milk only contains A2 type of beta-casein protein instead of A1 protein which is found mainly in the regular milk and lacks protein which causes risks of contracting various diseases. Currently, most of the dairy products within the market have both A1 and A2 proteins. Hence, through investing in the Australian market, the A2 would be making new position in the market with regard to competition and among the customers while comparing with other products. Discussion The aim of any campaign is to remind or bring to the attention of the customers of the existence of the product. The main competitor is A2 Milk Company is Olper Milk. In its marketing segmentation and targeting, A2 Milk Company used demographic, psychographic, behavioral, and geographic while Olper Milk used demographic, psychographic, and behavioral. Although Olper Milk focused on the demographic factors that affect various market functions, these factors do not affect its boundaries and limits. The main targets of A2 were those Australians suffering from consuming A1 milk which has A1 protein; however, Olper Milk focused on the potential buyers and users from both the middle class and families. Most studies often indicate that most of the lower class families often have different attitudes towards the processed milk. The aim of all companies within the milk sector is to try and change the image of the packed milk (Smit, 2007, 95). Due to such image created on the processed milk, although the producers do not like case, Olper Milk gained the image which factored in the special social class. For Olper Milk, the red colour was chosen for packaging which was considered eye-catching and distinctive compared to the main competitors within the Australian milk sector. Through its campaign, Olper Milk believed that its product would be positioned in a manner that conveys the message likely to fulfill all the purposes of the consumers. The marketing campaigns need to position the products based on their uniqueness. To increase the market share and change the attitude of the customers, it is important that the businesses consider the changing consumer needs and have products targeting all the social classes depending on their perceived value (Keith, 2009, 131). The product strategy used in the campaign should include all the features and core values to receive maximum level of customers’ satisfaction. Olper Milk undertook a massive advertisement campaign on the billboards, ads, and newspaper which had organizational logos to make it easy to identify the products in the market. Marketing strategy needs to be specific to the needs of the customers due to differences in consumer tastes and preferences. Each campaign was to be utilized to let people understand the existence of product in the market. The marketing communication plan needs to revisit various aspects involved in creating the overall marketing plan which should have been in both cases: A2 Milk Company and Olper Milk Company. It was important that the businesses return to the fundamental questions associated with value creation and creation of customers who at the centre of the business. From the marketing and sales perspective, the companies should have adjusted their approaches to such issues to enable adequate understanding of the customers and increase their needs (NZX, 2015). The marketing communication messages for both companies should have started with how they would position their products. After understanding various needs of the customers and the market conditions, the businesses are at liberty to design its product and messaging that meet various needs of the customers and create the required market value. Conclusion Based on the analysis, marketing campaign assisted both A2 Milk Company and Olper Milk Company to communicate the existence of the products to the Australians. Each product highlighted some of the opportunities it presents to the market and established efficient marketing and campaign strategies which ensure coverage of wider market scope. Marketing communication is a way of reaching the customers in the modern competitive business environment; however, their effectiveness depends on adequate understanding of the needs of customers. References Iacobucci, D. (2014). Marketing Management (MM) (4th ed.). South-Western: Cenage Learning, Mason. Keith, W. (2009). Devil in the Milk: Illnes, Health and the Politics of A1 and A2 Milk. North America: Chelsea Green Publishing. NZX. (2015, April). The a2 Milk Company (a2MC) at a glance. Retrieved September 1, 2017, from https://www.nzx.com/files/attachments/211670.pdf> O'Brien, E. (2016, March 2). a2 Milk is turning the dairy world on its ear. Retrieved September 1, 2017, from http://www.smh.com.au/business/retail/a2-milk-is-turning-the-dairy-world-on-its-ear-20160229-gn6xea.html Smit, L. (2007). Marketing communication. Cape Town: Pearson Education South Africa. Read More