The paper “ Market Penetration of the Brands - Milly’ s Cheeses, Little Barrel, Cow Creed, Udder Fun, Geraldine’ s, and Red Dog” is an informative example of an assignment on marketing. Market analysis involves collecting data on the market trends of some of the important market variables and thereafter analyzing them to make important conclusions that are relevant for a firm’ s strategic options. (Bruggen & Wierenga, p26). Conclusions made this way are based on the statistical inferences which on the other hand depend on the given data from the market. In this case, there are certain market trends in the cheese market in which Milly's Cheeses belong, trends that need to be analyzed for better-informed decisions thereafter.
A promising company development strategy through comprehensive and technical marketing analysis is all Mrs. Smart needs to make in order to answer the confusion in his case. This analysis targets the retail market in Australia, the competition with other cheesemakers, and the cheeses consumers prefer the most. In order to come up with a perfect analysis of the three sets of market components above, three variables need to be examined: cheese variety, region, quantity, and price.
Consider the table below showing how cheese varieties and their prices spread across the three regions; Clare Valley, Fleurieu Peninsula, and Adelaide Hills. The cheese sales in Australia within the time schedule given reveals the total sales and sales revenue of Blue vein, Goat's milk and Soft White in the region of Adelaide Hills, Clare Valley, and Fleurieu Peninsula are 13824 and $76227.11, respectively as shown on Table 1below. The volumes of the three varieties in terms of their market share are also Blue vein, Goat's milk and Soft White are 32.76%, 34.05%, and 33.19%, respectively, and the market shares in Adelaide Hills, Clare Valley, and Fleurieu Peninsula are 32.38%, 34.07%, and 33.55%, respectively.
Notably, fro the table, Clare Valley has the highest market share than the other two regions. The region also has the highest average pricing than the other three regions as shown in table2 below. Table 1: the market share of the three cheese varieties Table2: shares of the three varieties of the cheese varieties Niche analysis of the market is typical of the brand development and market expansion among potential customers.
According to. ..brand survival in a market environment embraces the concept of the niche theory. Table 4: penetrations of the seven brand in the Cheese market environment According to the table above, Milly’ s Cheeses, Little Barrel, Cow Creek, Cheese Please, Geraldine's, Udder Fun and Red Dog represent the highest market shares and penetration to lowest respectively. The brand Red Dog has a higher purchase frequency than Udder Fun, Cheese Please and Geraldine's, which means it has excess loyalty. Therefore, the niche brand in this market is Red Dog. From the table below, it can be shown that Milly’ s cheese has the biggest brand in the market followed by Little Barrel, Cow Creek, Cheese Please, Geraldine's, Udder Fun and Red Dog.
It has a purchase frequency of 5.53 which is 0.91. In this way, it is very favorable to attract new buyers from other brands and sell products to them than it is to sell more products to sustain customers. Mrs. Smart should opt for this choice. It is important, therefore, Mrs. Smart to invest more in attracting new customers for the Little Barrel than investing more in the existing customers.
The loyalty f the existing customers are not questionable based on the statistics above, while that of the potential customers is yet to be determined.
Bruggen, G. H. V., & Wierenga, B. (2006). Marketing management support systems: principles, tools, and implementation. Boston [u.a.], Kluwer Acad. Publ.
Cooper, L. G., & Nakanishi, M. (2008). Market-share analysis: evaluating competitive marketing effectiveness. Boston, Kluwer Academic Publishers.