BSBMKG501A Evaluate marketing opportunities
How has brand value been created by the Tilba Cheese Factory? (5 points)
Within the context of evaluating marketing opportunities, brand value relates to the intangible aspects of a company that act as a major source of competitive advantage and benefit for both consumers and sellers. For example, a strong brand value allows for a faster purchase decision process for consumers as information can be gathered quickly, and alternatives will often not be considered with equal weighting. Healy confirms this stating that “Good brands create shortcuts in product choice” (p. 136). Brand value is created in conjunction with the components of the marketing mix. Each of the four components must promote a consistent message in order to achieve desired success.
Focal point – In creating a point of recognition through means such as a logo, or slogan, a company can convey the essence of what their brand stands for. For example The Tilba Cheese Factory labels all products in a way that promotes a boutique, high quality and speciality vibe that separates the company not only from main stream competitors such as Kraft and Coon, but also further promotes the boutique nature of the brand. Healy states symbols can be used to allow for instant recognition of a brand, while also revealing its character. (Healy p. 129) 2.
Co-Branding is a strategy that promotes two brands on one product. This method is useful for credibility and the establishment of new brands through associating an often prominent brand with a newer less established brand. In reference to the Tilba Cheese case, the credibility and brand value of the ABC factory was increased when aligned with the established Menora Gourmet Products distributor, thus allowing for the attention of larger buyers such as Woolworths. 3.
Producing speciality goods is an effective tool that allows for a company to separate itself from competitors. The ABC cheese factory prides itself on producing products different to those of competitors. When their distributor requested that a vintage cheese be produced, Storey quoted “I don’t like doing anything the same as anybody else, we had to create this vintage cheese that was noticeably different and which quickly became a best seller,
Using Porter’s value chain and referring back to previous case answers, describe how value can be increased for both customers and the Tilba Cheese Factory. Consider both primary and secondary activities. (10 points)
Porter’s value chain is an internal process that identifies primary and secondary activities that can be altered in such a way, to further benefit customers and the business. Healy states that primary activities include: inbound logistics, operations; outbound logistics and marketing and sales. Secondary activities include: firm infrastructure, human resource management and technology developments. Below one primary and secondary activity will be discussed in relation to the Tilba Cheese case study.
Primary: Marketing and Sales
The ABC Cheese factory could add brand value through further promoting the boutique nature of the company. This could be done through the creation of a highly informative, interactive website that included pages such as “Watch your cheese being made” which could utilise video and photos to illustrate the start to finish production of the cheese. This type of promotion could allow the consumer to feel a sense of closeness to the company as the cheese is no longer just a finished product. Secondary: Technological development
Along with the new website, an online ordering area could be made available. This would allow for increased sales not only within local markets but also significantly increase international sales and awareness. Healy confirms this as a valid strategy “Value can be added by: providing an online ordering system and integrating these with warehouse and dispatch areas...
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