Filla Bakery

Home Baked Range Bread

Assessment 3: Client Campaign Report

Name: Po-Hsiang (Sean) Hsu

Student ID: N9123041

Tutor: Elaine Brady

Tutorial time: Thursday 8:00-9:00 A.M.

Word Count: 1639

Executive Summary

This report exemplifies various marketing strategies that were used within a budget of $10,000 to launch a new product and improve the brand awareness of Filla Bakery. A SWOT analysis was drawn to demonstrate the internal and external strengths and opportunities of the product, yet it also analyzed the internal and external weaknesses and threats the product draws in the market.

This report will recommend three integrated marketing strategies aiming to promote both the brand and product of Filla Bakery.

1. Conduct typical product tasting in coffee shops by partnering up with cafes around the city such as Rush and Merlos, and give out free bread samples with every coffee purchased;

2. Designs their shelf display in supermarkets to mimic an oven, with unique packaging depending on the time of day;

3. Promote the new product through popular bloggers, and strengthen market behavior by handing out giveaways.

It is expected that in the next six months, with these integrated marketing strategies, not only would it advocate brand awareness for the company but also outset discussions between consumers about the new product.

Table of Contents

1.0 Client Profile4

1.1 Objectives4

1.2 Competition4

1.3 Internal and External Factors4-5

2.0 Target Audience6

3.0 Branding and Position Strategies6-7

4.0 Marketing Communication Strategies7

4.1 Strategy 1: Partnering up with Cafés7-8

4.2 Strategy 2: Store display and packaging8

4.3 Strategy 3: Promote through popular bloggers8

5.0 Timeline9

6.0 Budget9

7.0 Reference list 10-11

8.0 Appendices 12-14

1.0 Client Profile

Filla Bakery is a family owned business, a private company that was established in 2010, located in Yatala, Queensland. The company specialises in freshly baked Turkish and Lebanese breads, being the major supplier of supermarkets and private stores in Queensland and Northern parts of New South Wales. All products made are based on authentic recipes, traditional ingredients, and all have certifications in NCSI, HACCP and WQA food production standards. In recent times there has been an increase in demand from Australian consumers acquiring an assortment of baked goods, and ‘Artisanal’ brands being accounted for 54% of retail value sales in 2015. Filla Bakery wants to expand its product range following the current market trend, by introducing the Home Baked Olive and Oregano bread. The Home Baked Olive and Oregano bread is semi-baked, conveniently packed in disposable baking moulds, has an extended shell life and oven ready. This product is convenient for consumers that are time poor and prefer ‘home made’ style bread.

1.1 Objectives

The owners have identified the following objectives for the product:

· Increase and achieve minimum sales for the new product

· Increase brand awareness

· Promote the product in supermarkets and large groceries

· Achieve 50% of product tasting among regular shoppers

· Gain 10% market share in the product category within the first 6 months

· Expand its product range in accordance with current market trends

1.2 Competition

Filla Bakery will have to compete with local bakeries, as well as other supermarket brands for their low price. Direct competition includes, but not limited to, Bakers Delight and Brumby’s Bakery for their products that are already perceived as high quality from consumers.

1.3 Internal and External Factors

A SWOT analysis was performed to exemplify both the external and internal factors that affects Filla Bakery’s current market position (see Figure 1: The SWOT Analysis for Filla Bakery’s Home Baked Olive and Oregano Bread).

Figure 1: The SWOT Analysis for Filla Bakery’s Home Baked Olive and Oregano Bread

(IBISWorld, 2016)

As seen in Figure 1, the product is made with authentic recipes and traditional ingredients only, and is oven ready for consumers who are time poor and want a ‘home made’ style bread. In addition, it is a great opportunity for Filla Bakery to introduce its Oregano and Olive Baked Bread with the increase of Australian consumers requiring a wide assortment of baked goods, and ‘artisanal’ brands being accounted for 54% of retail value sales in the past year (IBISWorld, 2016). However, due to poor packaging, and the company not having any marketing or advertisements online, it is difficult to create brand awareness and to introduce the new product to target customers. Industry data also shows a low level of market share with the top four competitors accounting for less than 25% of the industry revenue (IBISWorld, 2016). As a result, several marketing strategies have been introduced to resolve the internal weaknesses of the company.

2.0 Target Audience

Filla Bakery deliver freshly baked goods to major supermarkets, grocery stores, and takeaway stores, and is the major supplier of Turkish and Lebanese breads in Queensland and Northern parts of New South Wales. The new product will use the existing production line, infrastructure and supply chains. As the Australian Bureau of Statistics (ABS) stated, around 80 per cent of women working in the labour force have children (Craig, 2006). Hence, with limited time every day, parents (mostly women) are facing challenges in maintaining balance between work and parenting responsibilities (Clark, 2000). Moreover, there has been an increase of Australian consumers requiring a wide assortment of baked goods and ‘artisanal’ brands (IBISWorld, 2016). Therefore the primary audience for the product is aimed towards working parent, because the Home baked products are convenient for consumers that are time poor and at the same time prefer an artisanal ‘home made’ style bread.

3.0 Branding and Position Strategies

Filla Bakery is not just providing a product, but offering a solution that satisfies customer needs. As stated by Aaker and Joachimsthaler (2012), an effective brand strategy allows firms to increase their potential in competitive markets. Therefore, in order for Filla Bakery to stand out in the market, and attract customers, the Home Baked product would be identified under the family branding strategy. The reason being, Filla Bakery already offers multiple products under the bread category with consistent branding, leading to strong brand equity. As mentioned by Keller (2001), with strong brand equity it increases profit margins, product expansion, and most importantly customer loyalty, as consumers are willing to pay more for the product because they trust the brand.

Moreover, since bread is a daily need for a majority of families, product characteristic and premium pricing are used as the competitive positioning strategy for Filla Bakery to differentiate from their competitors. According to Grant (1991), even if the product is set at a premium price, the value of the product depends on the characteristics or uniqueness of a product; therefore consumers are still willing to pay more for a product with no substitute.

4.0 Marketing Communication Strategies

As stated by Solomon (2009), attitude is an evaluation of a product or service that has been served over time; hence it also satisfies personal rationale, which affects the consuming behavior of consumers. Consequently, the three marketing strategies performed on Filla Bakery’s new Home Baked product would be based on an attitude model known as the Theory of Planned Behavior.

4.1 Strategy 1: Partnering up with Cafés

The first client’s objective is to achieve 50% product tasting among regular grocery shoppers. While new product tastings are typical and done in-stores, the target audience is working parents (mothers), and as such they are often time conscious, have a regular shopping list, and often do not stop for free tastings (Cuddy, Fiske and Glick, 2004). This decreases the percentage of product tasting among the target segment. As a result, to stand out from the competition and achieve 50% product tasting it is suggested that Filla Bakery should partner up with cafés around the city such as Rush and Merlos, and give free samples with every coffee purchased in cafés rather than supermarkets. The reason being, drinking coffee is a morning routine for most Australians as it is part of the Australian culture (Tucker, 2011). In addition, each free sample should also come with a discount coupon as seen in Appendix 1, to lead customers to supermarkets for future purchases. According to Berry (1995), discount coupons could attract customers to stores; increase sales and reputation of the brand.

4.2 Strategy 2: Store display and packaging

The second client’s objective is to make a plan to promote the new product launch in supermarkets and large groceries to achieve minimum sales. It is recommended that Filla Bakery design their shelf display to mimic an oven, as seen in Appendix 2. Not only would this strategy attract time conscious consumers but also promote the products ready-to-bake advantage. As stated by Turley and Chebat (2002), at least 70% of product selections are made in the stores, and with an unique store display, it highlights the product’s main features, builds brand awareness, provide unique experiences and more information for customers. Moreover, to gain consumer awareness it is also suggested that Filla Bakery create a unique packaging for their new product, as seen in Appendix 3. Depending on the time of the day the question on the packaging will answer the question at the forefront of every consumers mind. As mentioned by Belch and Belch (2003), unique packaging attracts consumers, differentiates from its competitors, and sends out messages to the targeted consumers.

4.3 Strategy 3: Promote through popular bloggers

The client’s last objective is to achieve 10% market share in the product category. To obtain this objective, it is suggested that Filla Bakery should sponsor famous bloggers such as Brisbane Devoured and Eatin’ Mess by Laura Kelly to encourage discussion about the brand. Not only could they use Filla Bakery products in food reviews but also their morning routine posts to promote the new product and increase brand awareness and trust. As stated by Castaldo, Perrini, Misani and Tencati (2009), consumers trust the opinions of those they relate to or trust over standard advertisements, such as TV, print or radio. Hence, in the modern world today, blog marketing is cheap, increases brand awareness and customer interaction (Hill, 2005). Yet, according to Maxham (2001), word of mouth is one of the most powerful marketing tools used to increase brand awareness and the trust of a new product. Therefore, with the unique launch strategy, it is aimed to create hot discussions and conversations online about the brand among target consumers.

5.0 Timeline

As seen in Appendix 4, all three strategies will be practiced in the following 6 months. A week before product launch, bloggers will introduce the new bread to consumers, to build publicity about the product. Afterwards, more blog posts would be posted, as well as in-store displays for the remaining 6 months. Hence, in the introductory launch stage, café sampling and coupon deals will only run for the first 2 months. It is predicted that, with these strategies, the product will gain premium standing in the Artisan Bread industry and the number of coupons redeemed at stores as well as measuring blog interaction will measure success and effectiveness of the marketing campaign.

6.0 Budget

As seen in Appendix 5, $10,000 AUD was provided for the 6 months of marketing campaign for the new product launch. Firstly, to achieve 50 % product tasting, Café partnerships (Merlo) will have to be negotiated, but it is estimated to cost around $1000 AUD per month, as Filla Bakery will provide all the products for free sampling. Moreover, to increase sales for the new product, costs will incorporate printing and design of coupons, store display and packaging costs, totalling up with $2500 AUD. Lastly, to increase 10% market share, $3000 AUD will be allocated to blogger sponsorships and activities they conduct throughout their online platform. To sum up, with the leftover budget, in the future Filla Bakery could introduce snack size bread to expand their target range towards university students and option for children’s lunchboxes.

7.0 Reference List

Aaker, D. A., & Joachimsthaler, E. (2012). Brand leadership. Simon and Schuster.

Belch, G. E., & Belch, M. A. (2003). Advertising and promotion: An integrated marketing communications perspective. The McGraw− Hill.

Berry, L. L. (1995). Relationship marketing of services—growing interest, emerging perspectives. Journal of the Academy of marketing science, 23(4), 236-245.

Castaldo, S., Perrini, F., Misani, N., & Tencati, A. (2009). The missing link between corporate social responsibility and consumer trust: The case of fair trade products. Journal of business ethics, 84(1), 1-15.

Clark, S. C. (2000). Work/family border theory: A new theory of work/family balance. Human relations, 53(6), 747-770.

Craig, L. (2006). Does father care mean fathers share? A comparison of how mothers and fathers in intact families spend time with children. Gender & society, 20(2), 259-281.

Cuddy, A. J., Fiske, S. T., & Glick, P. (2004). When professionals become mothers, warmth doesn't cut the ice. Journal of Social Issues, 60(4), 701-718.

Grant, R. M. (1991). The resource-based theory of competitive advantage: implications for strategy formulation. California management review, 33(3), 114-135.

Hill, J. (2005). The voice of the blog: the attitudes and experiences of small business bloggers using blogs as a marketing and communications tool.Unpublished dissertation, University of Liverpool. Retrieved from http://jeffreyhill. typepad. com/voiceblog/files/MBADissertation. pdf.

IBISWorld,. (2016). Market Research Reports & Analysis | IBISWorld AU. Clients1.ibisworld.com.au. Retrieved 1 June 2016, from http://clients1.ibisworld.com.au/reports/au/industry/majorcompanies.aspx?entid=4227

Keller, K. L. (2001). Building customer-based brand equity: A blueprint for creating strong brands.

Maxham, J. G. (2001). Service recovery's influence on consumer satisfaction, positive word-of-mouth, and purchase intentions. Journal of Business Research, 54(1), 11-24.

Solomon, M. (2009). Consumer behavior buying, having, and being (8th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.

Tucker, C. M. (2011). Coffee culture: Local experiences, global connections. Routledge.

Turley, L. W., & Chebat, J. C. (2002). Linking retail strategy, atmospheric design and shopping behaviour. Journal of Marketing Management, 18(1-2), 125-144.

8.0 Appendicies

Appendix 1

Appendix 2

Appendix 3

Appendix 4

Appendix 5

Strategy 1

Cost

Total

Café Partnership (Merlo)

$1000/ month

$3000

Strengths

Products are oven ready

Convenient for consumers that are time poor and want a ‘home made’ style bread

Conveniently packed in disposable baking moulds

Made with authentic recipes and traditional ingredients only

Already has an existing production line, infrastructure and supply chains.

Weaknesses

The product is not the fastest take away or pick up option

Shapes, flavours and spices evoke a “home-made bread” image

The increase of Australian consumers requiring a wide assortment of baked goods can boost the revenue, as the industry profit is estimated at 13.5% of revenue in 2015-16.

‘Artisanal’ brands accounted for 54% of retail value sales in 2015, and estimated to account for 13.3% of industry revenue

The industry shows a low level of marketshare concentration, with the top four competitors accounting for less than 25% of the industry revenue

Threat

Survey shows that the percentage of Australians who eat bread dropped from 80% to only about 65% of Australians eat bread daily

Purchases of inputs for the product is the industry's largest cost. Hence, due to fluctuating commodity prices for wheat and sugar, will remain a factor for the industry over the next couple of years

Advertising and promotional costs have increased during the past 5 years as supermarkets expanded their existence in the general bread sector.

Sponsor food bloggers to announce the new product launch

Opportunities

The brand presence of the company is not as strong as compared to its competitors

It is a premium product

The company does not implement the Internet in their marketing plan

Poor packaging

2