Effectiveness of the Marketing Mix: of Sanitarium WeetBix - Case Study Example

SANITARIUM WEETBIX Name Institution Professor Course Date Sanitarium WeetBix Overview The purpose of this market audit report is to research and examine the marketing mix of Sanitarium WeetBix within the context of Australian market. In addition, the report offers a detailed evaluation of the effectiveness of the marketing mix in response to the needs and wants of the Australian target-market. The report is organized in four critical sections. The first section focuses on evaluation of the target market in Australia with reference to composition and segmentation. The second section focuses on the marketing mix in Australia: product, price, place, and promotion. The third section and fourth sections of the report concentrates on the competitive advantage as well as effectiveness of the marketing mix in accordance with the needs and wants of the target market. Section 1: The Australian Target Market In the course of handling the needs of the organization as well as consumers in the market and industry of operation, Sanitarium WeetBix focuses on targeting children between 3 and 8 years. Sanitarium WeetBix has been the most common breakfast cereal in the Australian because of its ability to offer substantial requirements in accordance with the needs and preferences of the consumers in the target consumers. The target audiences require substantial energy to facilitate effective growth and development as well as participation in the physical activities during childhood. The purpose of the product is to offer quality nutrition to the target audiences and their families. This is evident in the usage of critical Australian personalities with reference to Brett Lee and Tim Cahill towards encouraging the young Australians to start their day with a healthy breakfast to facilitate the achievement of their goals and targets. From the above illustration, Sanitarium WeetBix focuses on targeting young Australians (active society members) requiring the essential energy to execute their duties and obligations in the course of the day. The organization focuses on adopting diverse techniques and mechanisms towards handling diverse needs and preferences of the target audience. This is evident in the provision of diverse products in sizes or quantity to handle differences in needs and capacity to procure the products in accordance with the demands of the target audiences in diverse markets. Sanitarium WeetBix brand focuses on handling nutritional needs of the young and active members of the society through provision of substantial energy in the course of encountering daily activities and goals (McDonald, 2012). The information on target audiences is essential for the business entity to understand the needs and preferences of the consumers. In addition, the information is critical in determining mechanisms towards handling the needs of the target audiences in the most effective and efficient manner towards realization of competitive advantage in the market and industry of operation. Section 2: Marketing Mix Marketing mix of Sanitarium WeetBix focuses on integration of pricing techniques, elements of the product, promotional techniques, and place or distribution techniques in order to achieve competitive advantage in the market and industry of transaction. Effective marketing mix is essential in handling the needs and preferences of the target audience with reference to the case of Australia. Product WeetBix is one of the common products in the case of the Australian market. It is essential to note that WeetBix is a shopping item experiencing frequent purchases at low prices in comparison to other products in the market. In addition, consumers’ involvement or effort is low in the procuring of this product making it a convenience product. this classification has been essential in the rapid development and coverage of the product in the market and industry of transaction. In addition, WeetBix came into the market in 1920 as a ‘budget-friendly health biscuit’. Currently, the product is in the market maturity stage of the product life cycle. This requires business entity to focus on adopting and implementing cost effective and differentiation techniques in the course of achieving competitive advantage as well as improved market share among the consumers in the case of Australia (Kennedy, 2012). The product has been the most popular breakfast cereal for more than three decades. From this perspective, the sales have leveled off following the acceptance of WeetBix by most potential and actual buyers in the Australian market. In the current context, the purpose of Sanitarium is to defend WeetBix’s market position and coverage against critical competitors such as Nutrgrain. Branding is an essential element in determining the effectiveness of the product in the market and industry of operation. In the context of the Australian market, WeetBix focuses on branding itself as an ‘Aussie Icon’. In addition, the product brands itself as a healthy breakfast option for those who lead an active lifestyle. The branding has been achievable through effective promotion of the long standing of the product in the market as well as strong association with the Australian sport in relation to sponsorship to the Australian Cricket and Rugby teams. Similarly, the product has been on the forefront of offering diverse sporting events in the form of the WeetBix kids, TRYatholon, and Brett Lee’s cricket boot camp. From the branding perspective, the company has substantial opportunities to continue this sponsorship program while considering football, which is very popular in the case of Australia. Improvement of the branding of WeetBix as a healthy breakfast should consider integration of some facets of the society through collaborating with diverse television shows whole considering promotion of nutritional living. The approach will essential in promoting the branding of the product to consumers not interested in sports, but want to live a healthy life. Figure 1: WeetBix original packaging (weetbix.com.au) Figure 2: Current WeetBix packaging (weetbix.com.au) Packaging is an essential approach for the consumers to identify relevant products in the distributional stores. In addition, packaging is essential for effective and efficient mobility of the product from one location to another. In this context, packaging has been critical in enhancing the promotion of brand of the product in relation to WeetBix while seeking to handle diverse needs and preferences of the consumers. From the above figures, there has been a transformation in the packaging of the product. The color of the package is vital in identification of the product. The company focuses on integrating sport stars on the packaging, which is an interesting strategy in marketing the products. The aim of this packaging technique is to ensure that the product stands out on the shelf while grabbing the attention of the consumers. Price Price is an essential component of the marketing mix because of its importance in determination of the revenues as well as other activities of the company with reference to quality and marketing. Companies have the obligation of charging too low prices to produce a profit or too high prices to generate substantial demand. There are diverse factors affecting the setting prices in this market and industry of transaction. Some of these factors include product costs, competitors’ prices, external and internal factors, and consumer perceptions of value. In the course adopting an effective pricing mechanism, business entities should consider cost-based pricing, value-based pricing, performance based pricing, competition-based pricing, and relationship pricing techniques for the achievement of a good price (Kotler et al, 2008). According to this market audit report, WeetBix focuses on exploiting cost-based pricing technique as well as value-based pricing mechanisms to achieve competitive advantage in the market and industry of operation (Richter, 2012). According to the cost-based pricing technique, business entity tends to set up the price by the cost of the product. It is essential to note that WeetBix focuses on setting up the different product in accordance with diverse prices. For instance, the original product is relatively cheaper in comparison to the organic one. In the course of value-based pricing, business entities focus on exploitation of the perceived value of the product in the market and industry of operation. From this perspective, WeetBix focuses on making a cup of breakfast cereal in order to offer convenience to the consumers, which is more expensive in comparison to a box of breakfast cereal. It is essential to note that consumers are willing to pay more money for the convenience services thus integration of the value-based pricing in the market in relation to exploitation of the benefit in satisfaction of the needs of the consumers in the market and industry of transaction. In the case of WeetBix, the company focuses on developing product lines rather than generation of single products. This is evident in the production of different types of breakfast cereal to handle the needs and preferences of the consumers in the market and industry of operation. There are also essential pricing adjustment techniques in the course of marketing and promotion of the products. For instance, WeetBix focuses on exploitation of quantity discount towards rewarding concerns of their customers, which act as an incentive to the consumers to procure more quantity from the retailer. Business entities always adjust their prices by differences in customers, services, products, and locations. For instance, it is more expensive to procure WeetBix at the convenience shop in comparison to the supermarket because of the tendency of the retailers to adjust prices in relation to location (Schindler, 2012). Another essential technique worth noting in this report is the integration of the promotional pricing technique, which is vital in enhancing the image and reputation of the company. The purpose of this pricing strategy is to ensure that business entity has substantial opportunity to increase its market coverage while handling the needs and preferences of the consumers. Place (Distribution) In marketing and distributing diverse products, business entities focus on adopting and implementing different distribution approaches. In the case of WeetBix, the company concentrates on exploitation of an indirect approach. In this case, the manufactured products use retailer entities in the form of Coles and Woolworths to reach consumers through intermediary selling mode. These grocery stores provide substantial opportunities for the consumers to purchase the product through their local intermediary entities (Pride & Ferrell, 2010). It is ideal to note that WeetBix focuses on utilizing numerous groceries and convenience stores across Australia with the intention of obtaining a large degree of distribution. The approach is beneficial since intermediaries offer market access, which would be very expensive or impossible for the business entity to secure. The corporate channel of distribution by WeetBix is critical in making the shopping experience for consumers to be simpler thus efficiency in the procurement process (Lamb et al, 2012). In addition, consumers have the opportunity to enjoy such products at their local areas. Consumers have the opportunity to purchase the product along with other grocery products because of these intermediaries thus efficiency and effectiveness in the course of purchasing the products. Moreover, the company has the opportunity to transfer risk burdens to the retailers upon manufacturing thus reduction in the cost of operation and marketing of the product. There are three critical degrees of market exposure: selective, exclusive, and intensive. It is essential to note that WeetBix focuses on exploitation of intensive level, which concentrates on utilization of many outlets as possible in the distribution of the products in accordance with the needs and preferences of the consumers. From this perspective, WeetBix is available where and when consumers want them: supermarkets, petrol stations, and convenience shops. The company concentrates on ensuring accessibility of its products to the target market of families and active children. Intensive exposure is essential in handling the needs and preferences of the consumers in the Australian market. Categorically, WeetBix comes out as a product of dominant force in distribution in the cereal market since it is difficult to locate a grocery or convenience store without the product. In addition, the company concentrates on employing supply chain method in delivering and distribution its products thus extensive organization between WeetBix manufacturers, transportation officers, and retailers. From this illustration, it is essential to note that WeetBix is a well-established company in its maturity stage with an intensive exposure level as well as a strong distribution strategy. The intention of the company is to ensure that the product remains popular in the market and industry of operation. Promotion WeetBix focuses on pushing the promotional idea on the healthy option of cereal for kids in encountering their active lifestyle. This indicates that the promotion technique of the company focuses on four elements: active lifestyles, healthy choices, family, and sport. The tendency of the company to charge low price for the product substantiates its high quality in transmission of the idea of value for money, which is essential for families and individuals within a tight budget (Rao, 2009). Since the product is in its maturity stage, it is ideal for the company to ensure that the product remains relevant and popular through continuous advertisement and promotional techniques. The approach ensures that consumers resume buying the brand of the cereal upon grabbing of their attention by availability of the products in diverse promotional platforms. The product is a market leader hence the need to maintain this position through exploitation of various platforms of media such as television ads, newspaper print ads, in-store displays, and posters (Smith & Taylor, 2004). The advertisements concentrate on a message for the healthy active kids through slogans such as “Aussie kids are WeetBix kids” and “How many do you do?” Nevertheless, the adverts have been lacking recently in the traditional advertisement platforms. Another technique for advertisement of the products is the tendency to sponsor many sporting teams and activities include of Cricket, TRYthalon, and Hyundai A-League of Soccer, the Socceroos, and television reality show with reference to the Biggest Loser. The company focuses on utilization of famous sporting personalities in the form of Brett Lee, Torah Bright, Stephanie Gilmour, and Tim Cahill in marketing of the product in accordance with the demands and needs of the consumers. Other marketing techniques include sales promotion and product placement. Product placement strategy aims at exploiting technological advancements in the modern society with reference to the case of Australia. The purpose of these techniques is to enhance the market coverage of the product while making the product to remain relevant in accordance with the needs and wants of the consumers. WeetBix also focuses on exploitation of social media platforms such as Twitter and Facebook to interact with potential and actual consumers in the market and industry of the operation. Section 3: Competitive Advantage The marketing mix of WeetBix has been essential in aiding attempts of the company towards realization of competitive advantage in the market and industry of operation. Effective pricing strategy, adequate promotional techniques, quality branding, and availability or accessibility of the product are essential in offering competitive advantage of the company in the course of handling the needs and preferences of the consumers (Bowman & Gatignon, 2010). For instance, the ability of the company to offer quality products at affordable products enables consumers to have numerous incidents of purchases rather than going for products from the competitors. In addition, increased accessibility of the products at numerous intermediaries and groceries is essential in satisfying the needs and preferences of the consumers in the market and industry of operation. The maturity of the product ensures that the product has substantial market coverage with the opportunity to exploit economies of scale in handling wants and needs of the consumers. On the other hand, the company seeks to adopt and integrate quality products and services to sustain extensive competition against other products and services within the market and industry of transaction. Another critical reason for procurement of WeetBix by consumers is the ability of the business company to incorporate intensive distribution techniques focusing on enlarging market coverage of the product. From this illustration, it is ideal to note that marketing mix for WeetBix is ideal in providing competitive advantage against stiff competition in the cereal industry in Australia. Section 4: Effectiveness of the Marketing Mix From the findings of this market audit report, I believe that the firm has been successful in developing a competitively differentiated marketing mix for the consumers in its target market. This is because of the ability of the business entity to tailor its marketing mix in relation to the needs and targets of the consumers in the market and industry of transaction. In addition, the marketing mix has been ideal in improving relevancy and position of the product in the market while handling the needs and wants of the consumers in the case of Australia. This is evident in the increased accessibility of the product among the consumers seeking to satisfy their needs and tastes (Kennedy, 2012). Moreover, the marketing mix has been the massive contributor to the market position of the product enabling WeetBix to acquire market leader position for more than three decades. On the other hand, the marketing mix has been vital in meeting the needs and wants of the target consumers in the case of Australia. This is through the approach the business entity to adopt and exploit indirect marketing and distribution technique to enhance accessibility of the product to the consumers in their relevant locations. Similarly, promotional techniques have been ideal in maintaining the position of the product in the market seeking to exploit demands and wants while adhering to quality and value policies to increase the base of potential and actual consumers within the market and industry of transaction. List of References Bowman, D., & Gatignon, H. 2010. Market response and marketing mix models: trends and research opportunities. Boston, now. Kennedy, J. 2012. Digital Weet-Bixbox in The Biggest Loser. February 29th 2012http://www.bandt.com.au/news/media/digital-weet-bix-inserted-in-the-biggest- loser Kotler et al, 2008.Marketing 8th Australasian Edition, Pearson Publishing, Sydney Lamb, C. W., Hair, J. F., & Mcdaniel, C. D. 2012. Essentials of marketing. Mason, Ohio, South-Western Cengage Learning. Mcdonald, M., & Dunbar, I. 2012. Market Segmentation: How to Do It and How to Profit from It. Chichester, John Wiley & Sons. Pride, W. M., & Ferrell, O. C. 2010. Marketing. Australia, South Western Cengage Learning. Rao, V. R. 2009. Handbook of pricing research in marketing. Cheltenham, UK, Edward Elgar. http://public.eblib.com/EBLPublic/PublicView.do?ptiID=433355. Richter, T. 2012. International marketing mix management: theoretical framework, contingency factors and empirical findings from world-markets. Berlin, Logos. Schindler, R. 2012. Pricing strategies: a marketing approach. Thousand Oaks, Calif, Sage Publications, Inc. Smith, P. R., & Taylor, J. 2004. Marketing communications: an integrated approach. London, K. Page. Read More