Marketing Strategies - Breakfast Cereals in Australia

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Healthy Co. Pty Ltd is a food processing organisation located in Queensland, Australia. ‘Nutri Mix’ breakfast cereal is the product developed by the company for this market and it’s focused on nutrition and healthy life choices. The initial research was focused on six local macro-environment factors that could potentially impact the product. The factors in favour of marketing such a product on the Australian market reside in an aging population as proportion of total population, forcing the government to focus on nutrition as a means to slow down health care expenses (IGR, 2004); the local market being a stable and developed one; the country’s technological development enabling advanced marketing and logistics techniques; and an increased concern for 21st century nutrition trends, pointing to an alarming growth rate of child obesity. Between 1985 and 1995 the child obesity grey almost 50% in both genders (Parliament of Australia, 2006) Target market

Demographic segmentation refers to the process of dividing the market into groups based on variables such as age, gender, income, occupation, education, religion, race, nationality, family size, etc. Age is an important demographic variable for ‘Nutri Mix’ as the product will target certain segments that are more likely to consume healthy food products. The logic behind using age as a segmentation variable is the fact the consumer needs and wants change as they grow older and marketers need to design products, packages and promotions to meet these needs and wants. The healthy breakfast cereal product will focus more on children – 3 to 12 years old and senior adults – above 65 years old. The children segment is chosen due to the parents’ increased concern regarding child obesity in Australia, whereas the senior segment is chosen due the government’s increased concern for growing health care expenses generated by an aging population and a shrinking taxation base generated by a slow down in natality rates. Gender is another relevant variable for ‘Nutri Mix’ market segmentation. This variable is widely used in consumer marketing, mostly in clothing, cosmetics or toiletries. However, given that one of the main age segments targeted by the breakfast cereal refers to children, the product’s specifications, package and promotional activity should focus on the female segment as they hold the buying decision. Behavioural segmentation consists of dividing customers into groups based on the way they respond to, use or posses knowledge regarding a product. Occasions can be used to group consumers into different segments. For instance, Kelloggs, one of the largest breakfast cereal producer worldwide, encouraged its consumers to eat its products on the occasion of getting up. One other behavioural variable refers to the product’s benefits. In this case, the benefits are related to the health and well being of the consumer. ‘Nutri Mix’ is recommended for people with weight problems, as well as people with healthy eating habits. Psychographic segmentation refers to the process of dividing the market into groups based on variables such as social class, lifestyle or personality type. ‘Nutri Mix’ is a product designed for the middle class in Australia and with a healthy life style (individuals that practice outdoor activities, individuals that spend a lot of energy and individuals looking to improve the state of their health). Personality type segmentation can be useful at a later point in time for designing targeted promotional activities. However, in the beginning this variable will not be considered relevant for the market segmentation. Geographic segmentation consists of dividing customers into groups based on variables such as region of the country to or rural/urban area in which they are located. The breakfast cereal product will be launched in Western Australia, more specifically Queensland, third state in the country as size of the population with 4,35 million inhabitants...
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