Marketing Plan: Parmalat Australia - Case Study Example

Task 3 Marketing Plan: Parmalat Australia Introduction Parmalat Australia is a multinational dairy company that specialises in the production and marketing of dairy products. Parmalat was founded in 1961 and has over years experienced tremendous growth and success through acquisition of brands, product innovation and the use of innovative marketing techniques. To date, the company is one of the major producers of pasteurized milk, yogurt, fruit drinks, desserts, butter, creams, custard and ice cream in Australia. Most of the company’s products are marketed under brand name such as; Pauls Milk, Trim, Skinny Milk, Vaalia, Breaka and Ice Break. Nevertheless, due the competitive nature of the Australian market and the global market in general, the company is faced with numerous challenges. In order to enhance its competitive edge in the market, the company employs a marketing plan that focuses on market developments and the needs of consumers (Parmalat, 2012; Parmalat, 2012b). This paper seeks to depict a suitable marketing plan that can be used by Parmalat Australia in order to enhance its competitive edge in the market. Foremost, it will examine four marketing approaches and marketing strategies that the company can use to promote its products in the market. Secondly, this paper will describe the benefits and limitations of different marketing approaches and mixes. Lastly, this paper will examine different legislation, codes of practice and national code and illustrate how they apply to the company’s marketing plan. 1.0 Marketing Options Option 1: Business to business marketing Business to business marketing (B2B) is a marketing approach whereby a business markets its service or goods to other businesses. This marketing approach mainly targets companies, institutions and organisations. Using this approach, Parmalat Australia will focus on selling its dairy products to other business. For instance, the company could focus on selling its products to bakeries and food processing plants that use dairy products to manufacture or process their products. Due to the nature of business to business markets, this approach to marketing requires that companies should focus on developing long-term customer loyalty (Barchel, 2007; Hutt & Speh, 2012). Option 2: Relationship Marketing Relationship is a marketing approach that mainly focuses on enhancing customer loyalty, satisfaction and retention rather than short-term sale of products. This approach to marketing recognises the long term value of customer relationship with a business thus it emphasises on attracting, sustaining and enhancing customer relationships. Using this approach to marketing will require Parmalat Australia to focus on understanding the needs of consumers and subsequently use different communication channels to engage and interact with customers in mutually beneficial exchange (Brink & Berndt, 2009). Option 3: Digital Marketing Digital marketing is a form of marketing that centers on the use of digital electronic media channels such as computers, cellular phones, smartphones and tablets among many other digital electronic media to promote products to consumers. This approach to marketing capitalises on the use of applications in digital devices such as apps, internet , mobile interactive channels, social networks, email and websites to communicate to potential customers. Using digital media platforms Parmalat can promote its products, target consumers, communicate with consumers and identify the specific needs of consumers (Pride & Ferrell, 2011). Option 4: Public Relations Public relations can be described as a company’s planned and continuous effort to establish common understanding and mutually beneficial relationship with its target and potential clients and stakeholders. It generally involves conducting research to obtain information about the public’s perception, attitudes and views about the company and subsequently implementing communication activities and programs in order to promote public understand about the company’s aims, goals, product and services (Seitel, 2007). 2.0Marketing Strategies Advertising Advertising is a marketing strategy that focuses on attracting attention, informing and persuading the public to purchase or subscribe to a particular product or service. It can also be described as marketing communication strategy that focuses on attracting the attention of the public through paid announcements in print, broadcast or electronic media such as Newspapers, Television, Radio, Billboards, post signage , websites and notice boards among many other avenues. Basically, companies use advertisements to communicate to their target audience and persuade them to subscribe to their products or services (Belch & Belch, 2004). Celebrity Endorsements Celebrity endorsement is a marketing strategy that involves using a celebrity or a popular person to promote a product on behalf of a company. This strategy involves aligning a company’s product or service to a celebrity with the aim of obtaining the attention and trust of consumers. The use of a popular celebrity to endorse a company’s product can be a powerful tool for marketing mainly because it embedded on the status and influence of the celebrity. Often times, popular celebrities are associated with a particular status, lifestyle and standard of living thus whenever they endorse a product or service, a considerable number of consumers are likely to purchase the product in order to identify and align themselves with the celebrity. Popular celebrities have the capacity to influence and shape consumers perceptions about a product or service offered by a company (Khatri, 2006; Taleja, 2010). Events sponsorships Events sponsorship is a marketing strategy that involves a company providing financial or in-kind support to a popular sporting, educational or cultural event. In return the company obtains the rights of a direct associate or affiliate of the event such that they are able to derive benefits that are related to that association or affiliation. Sponsoring an event enables a company to obtain space or airtime for adverting in the course of the event. It also provides a company with exclusive rights to distribute its product during the event. For example, a company sponsoring the World Cup or Olympics often gets exclusive space and airtime to advertise their products or services as a result they are able to get the attention of millions of people around the world (Skinner & Rukavina, 2002). Point of Sale Marketing Point of Sale Marketing is a marketing strategy that involves promoting a product or service at the point of purchase. In essence, this strategy involves utilising notices, banners or displays to capture the attention of shoppers or consumers in retail stores, gas stations, malls and dispensers. This marketing strategy aims at encouraging impulsive purchases (Stahlberg & Maila, 2012). 3. 0 Benefits and Restrains of Marketing Approaches Groundswell Marketing Approach This marketing approach mainly involves using word of mouth to communicate to consumers about the products and services offered by a company. It focuses on fostering word of mouth by encouraging consumers, the media, bloggers and various agencies in the community to share their unbiased opinion about a particular product or service. Some of the key benefits associated with this marketing approach are that it is cost-effective, has long-term value and effective in strengthening the image of a brand. However, some of the disadvantages of this approach is that it is difficult to control, has a slow pace and limited reach to a wide segment of consumers (Dietrich & Lingston, 2012). Top-Down Marketing Approach This marketing approach involves using well known influencers, celebrities , the media, public relations and advertising campaigns to communicate to consumers in various market segments about new products. In this case, the message that reaches consumers on the ground comes from a position of authority. Some of the benefits associated with this marketing approach is that it commands attention and is effective in boosting consumers’ confidence in a product or service offered by a company. On the other hand, some of the limitations associated with this approach is that is expensive to implement and highly regulated (Dietrich & Lingston, 2012). Flanking Approach This approach to marketing focuses on direct confrontation with competitors. It involves using strategies that will displace or limit the influence of the competitor in a particular market segment. Flanking may involve introducing new or improved products in the market so as to counter those offered by the competitor. It may also involve concentrating and directing resources to a market segment that is threatened by other competitors. This marketing approach can be beneficial and effective in repositioning a company’s product in the market. It also enhances a company’s competitive edge in the market. However, the flanking approach can be expensive to implement and may alter a brand’s image as it attempts to keep up with other brands in the market (Dietrich & Lingston, 2012). Direct Marketing Approach This approach to marketing targets consumers directly by eliminating intermediaries between consumers and companies. It often involves the use of techniques such as sending direct postal mails, door to door campaigns, calling, leafleting and so forth. Direct marketing approach is cost effective and persuasive mainly because it enables companies to interact with consumers. It also enable companies to effectively target specific market segments However, this approach can sometimes be considered as invasive and intimidating to due its direct approach(Dietrich & Lingston, 2012). 4.0 Benefits and Restrains of Marketing Mixes Internet Marketing Currently, the internet is one of the most commonly used tools/medium for marketing. Some of the benefits associated with the internet as a marketing mix, is that it is cost effective. A company can market its product through websites and social media networks at lows costs. Secondly, the internet has a wide coverage and is not limited to a particular geographical location. Thus it can reach a wide market segments. It is also a fast and convenient way of disseminating to consumers. However, the using the internet for marketing is limited in the sense that it does not allow consumers to see or touch products before purchasing. It is also difficult to target consumers who are computer illiterates or less tech swavy by using the internet as a marketing tool (Pride & Ferrell, 2011). Television Advertising Television provides a convenient, engaging and flexible medium for advertising due to its widespread coverage, popularity and incorporation of both audio, visual, text and special effects elements. Television advertising also has a strong impact since it incorporates visual and audio elements which create a lasting impression in the memory of consumers. One of the limitations associated with the use of television as a marketing tool is that is extremely expensive. Advertisements aired through television have also been considered as being intrusive and monotonous such that many consumers ignore or avoid commercial every time they are aired (Gilani, 2013). Penetration Pricing Penetration pricing is a marketing mix strategy that involves setting the price of a product lower than similar products in the market in order to attract new or more customers. This pricing strategy is beneficial in the sense that its helps to raise awareness about a new product, it attracts new customers and enables a company to obtain a wider market share than its competitors. However, this strategy alters the image or value of a product. Cheap products are often considered to be of low quality. This strategy can also cause a company to incur losses (Richards 2012). Intensive Distribution This is a marketing strategy that involves distributing or selling products through many outlets such that consumers can find products in almost all outlets and commercial locations that they visit. It aims at maximum market coverage. Intensive distribution is beneficial in the sense that it promotes wider consumer recognition,impulse buying and increased sales. Nevertheless, it is expensive to implement and difficult to control since it involves a large number of retailers (Lamb, Hair & McDaniels, 2010). 5.0 Legislations/code of practice/national code A. ADMA Direct Marketing Code of Practice These are a set of standards or expected code of practice meant to guide or regulate direct marketers who are members of the Australian Direct Marketing Association (ADMA). These codes of practice aim at promoting best practice in direct marketing, reduce risks of breaching marketing regulations and enhancing consumer confidence in ADMA members. These codes set specific standards of practice for players in the direct marketing industry particularly when it comes to their relation with consumers. They also serve as a benchmark for resolving disputes (ADMA, 2013). B. Australian E-Commerce Best Practice Model This code of practice sets standards for protecting consumers in e-commerce. It provides businesses a voluntary model to guide their practice particularly when it comes dealing with consumers online (Treasury, 2006). C. Australian Government Policy Framework for Consumer Protection in Electronic Commerce This framework highlights Government policy for consumer protection as far as electronic commerce is concerned. It illustrates the Government vision and goals to empower and support Australians so that they can be at the forefront of global commerce as electronic traders and consumers. This framework further provides details about principles and standards that can be used to maximise consumer protection (Hockey, 1999). D. Free TV Australia Commercial Television Industry Code of Practice This is a self-regulatory code of practice that is meant to govern or regulate free-to air television broadcasters in Australia. This code of practice aims at safeguarding the interests of consumers and businesses. Standards in this code are largely drawn from the Broadcasting Service Act. They mainly aim at ensuring that the commercial content broadcasted is fair, accurate, respectful and sensitive to the needs of all audiences (FreeTv, 2013). E. Defamation Defamation is the spread of false information that can harm the reputation of an individual, business, group, company or institution. Defamation law in Australia aims at protecting the reputation of individuals, groups and companies from unfair attacks. This law tries to balance individual’s right to speech and the protection of reputation (George, 2012). References Australian Direct Marketing Association (ADMA) (2013). ADMA Code of Practice. Retrieved on November 25, 2013from Barschel, H. (2007). B2B Versus B2C Marketing: Major Differences Along the Supply Chain of Fast Moving Consumer Goods. Munich: GRIN Verlag. Belch, G. E. & Belch, M. A. (2004). Advertising and promotion: An integrated marketing communications perspective. (6th ed.). 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