A Subsidiary of the
Qantas Group

Product Nature & Orientation
Where are we now?
• QC offers a Good to the market / airline industry
• Can be seen as offering a Component Part for its B2B customers.
• Displays a Production Orientation as a mass manufacturer of low cost pre-
packed food

Product Life Cycle
Maturity
Sales & Profits
Growth
Introduction Decline
Product
Development
Sales
Profits
Time

Strategies for Profit Improvement
Profit
improvement
Productivity Productivity
improvement improvement
Market Market Product Change Existing
penetration development development asset base assets
Take Improve Improve
Increase New Convert Existing New Cost Increase
competitors’ asset product
usage segments non-users markets markets reduction price
customers utilisation sales
(experience mix
and (margins)
efficiency)
Growth focus Cash and margin focus
Investment Divestment
• innovation • redeployment of
• diversification capital resources
Cash utilisation focus
Source: Marketing (5th Edition), Kotler Brown Adam Armstrong

Ansoff Matrix (Marketing Strategies)
Market driven Product driven
Existing Markets New Products
Market penetration Product Development
Existing • We can achieve 100% of the • Up selling – Business Class food to Economy
Markets Australian airline food market by class.
buying our competitors. • New products – blankets, cushions, toiletries.
Market development Product diversification
• Selling existing product (pre-packaged • Mobile phones, in-air gaming, high end
New Markets meals) through retail outlets. entertainment.
• Consultancy in Food service standards and Quality
Assurance.

(Get) S.M.A.R.T. test
Objectives:
To secure 20% share of the pre-packaged frozen food market within 3
years through building brand equity of Q Perry within targeted segment(s)
(10% (12 months), 15% (24 months), 20% (36 months)).
 Specific
 Motivating/Measurable
 Actionable/Achievable
 Relevant
 Time Bound

Strategies for Profit Improvement
Profit
improvement
Productivity Productivity
improvement improvement
Market Market Product Change Existing
penetration development development asset base assets
Take Improve Improve
Increase New Convert Existing New Cost Increase
competitors’ asset product
usage segments non-users markets markets reduction price
customers utilisation sales
(experience mix
and (margins)
efficiency)
Growth focus Cash and margin focus
Investment Divestment
• innovation • redeployment of
• diversification capital resources
Cash utilisation focus
Source: Marketing (5th Edition), Kotler Brown Adam Armstrong

ISSUE 2
Segmentation, Targeting and Positioning

Effect of existing “airline food” and
proposed “retail” strategies on elements
of marketing strategy
Context Product
Company Price
Customers Place
Competitors Promotion
Collaborators

Market research
• Primary research - involves collecting data first hand.
• Secondary research - involves collecting data which already exists.
This information is obtained to define the market for the product as
well as to determine the needs of potential ‘market segment(s)’.

Segmentation (“retail strategy”)
Objective: To secure 20% share of the pre-packaged frozen food market within 3 years through building brand equity
of Q Perry within targeted segment(s) (10% (12 months), 15% (24 months), 20% (36 months)).
Segments identification process
Total market Segment dimensions Segment profiling Segment attractiveness
 Homogenity/heterogenity  Identifiable/accesible
 Measurable  Differentiable
 Sustainable  Actionable

Segmentation (“retail strategy”) – Q Catering
Geographic
Region Australia, Asia
City Sydney, Melbourne, Adelaide, Perth, Brisbane
Density Urban, Suburban
Demographic
Age 18-25, 26-35, 36-49
Family Size 1, 2, 3+
Family life cycle Single, Married (no-kids), Married (kids)
Gender Male, Female
Income (annually) $20,000- $39,999, $40,000 - $69,999, $70,000+
Occupation Professional, student, technical, clerical
Psychographic
Lifestyle Longhairs, workaholic
Values Family oriented, materialism
Behavioural
Benefits sought Convenience, quality, value
User status Nonuser, ex-user, potential user, first time user

Product Diffusion
Consumers can be grouped according to how quickly they adopt a new product.
Late Majority
34%
Early Majority
34%
Early
Laggards
Adopters
16%
13.5%
Innovators
2.5%
Time
New Product Diffusion Curve

Targeting - strategic decisions
Pursue the segment Develop a new product or
with a current product service offer which meets
or service offer the needs of the segment
Not to pursue the segment at all

GE Matrix - identifying target segments
Business position and its ability to compete
Strong Average Weak
High
Market attractiveness
invest/grow
selective investment
Medium harvest/divest
Low

Targeting (“retail strategy”)
Geographic
Region Australia Objective
City Sydney
Density Urban To secure 20% share of
Demographic the pre-packaged
Age 26-35, 36-49
frozen food market
Family Size 1, 2
within 3 years through
Family life cycle Single, Married (no-kids)
Gender Male, Female building brand equity of
Income (annually) $40,000 - $69,999, $70,000+ Q Perry within targeted
Occupation Professional segment(s) (10% (12
Psychographic months), 15% (24
Lifestyle Workaholic
months), 20% (36
Values Materialism
months)).
Behavioural
Benefits sought Convenience, quality
User status First time user

Perceptual mapping
Price
Quality

Positioning (“retail strategy”)
Objective: To secure 20% share of the pre-packaged frozen food market
within 3 years through building brand equity of Q Perry within targeted
segment(s) (10% (12 months), 15% (24 months), 20% (36 months)).
Positioning Tasks Value Proposition
• Identifying a competitive advantage • High quality frozen pre-cooked meals for people “on the go”.
Marketing Mix
• Selecting the right competitive
• Product: high quality frozen pre-cooked meals
advantages to promote as the
value proposition • Price: premium
• Communicating and delivering • Place: supermarkets and boutique delis
the chosen position to the target
customers • Promotion: packaging, advertising and sales promotions

ISSUE 3
Implementation, Coordination & Control

Buyer decision model
Post purchase
behaviour
Purchase decision
Evaluation of alternatives
Information Search
Need Recognition
Adapted from Kotler (2000) pp.203-205

Roles in the consumer buying process
Initiator
User
Buying
Decision Influencer
Buyer Decider
Adapted from Kotler et al (2001) p.127

Implementing an Integrated Marketing
Communication (IMC) Plan
Identify target consumers
Determine the response sought for the message
Generate message content
Select Channel of Communication
Select Message source
Evaluate promotional campaign
(Kotler et al 2004 pp. 613-619, as cited in Marketing Management course material)

Channel structure
Indirect
Retailers Consumers
Company

Selecting and Implementing
Appropriate Distribution Channels
• Channel ownership impossible, hence the use of a conventional
distribution channel
• A horizontal marketing system can be used to reach some retailers.
• Selective distribution via cluster ranging
• Dependence on a small number of very large retailers a risk (co-operation/
competition trade off)

Implementation/Co-ordination Summary
Ownership of Marketing Plan
• Action plan
• Champion and owner
• Compensation and Reward
• Management and Reward
Support for the Marketing Plan
• Resource allocation
• Skills development
• Communication
• Time
Adaptability of Marketing Plan
• Continuous improvement
• Feedback Metrics
• Persistence
• Adaptive Roll-Out
Adapted from Best 2005, as used in Marketing Management course notes

Sample Action Plan
Objective Respons Action Timeframe
ibility
1 Conduct Simulated Test Market to test OK Generation of appropriate data One month
product concepts. to amend Mktg plan if
appropriate.
2 Approach key prospective retail partners JH Engagement and follow up One month
to gauge interest in ranging the Q leads generated
Catering product. Itemise potential
roadblocks to acceptance, feedback on
reaction to product concept.
3 Recruit appropriately experienced and PM Commencement Three months
qualified personnel to manage the
distribution channel relationship with retail
partners.
4 Schedule monthly progress update SC Clear communication of all Monthly
involving all key internal progress, roadblocks and
stakeholders/project responses to unforeseen events
champions/ownership team
5 Brief agency on creative requirements for AF Receipt of draft concepts Four months
advertising support using IMC.

Control
Quantitative Short-term
Measurement Achieving specific
and Evaluation and broad goals
Qualitative Long-Term
Approach
Persistent Adaptable

Quantitative
Measure of Analysis to Plan Actual Deviation
Performance demonstrate (example only) (example only) (example only)
1. MARKETING Reporting Monthly Reporting Annual Report Monthly = Options
(Internal) (External) Annual = Result
Market Share Primary Research
To secure 20% share of EG AC Nielsen
the pre-packaged frozen
food market within 3
years….
Brand Equity Primary Research
…through building brand EG CRM Data
equity of Q Perry within
targeted segment(s)
2. FINANCIAL Reporting Monthly Reporting Annual Report Monthly = Options
(Internal) (External) Annual = Result
Sales Primary Research FY0809 FY0708 20%
EG Staff & CRM A$Y.Y m A$X.X m
Vs Budget Primary Research FY0809
(M’gmt Accounts) A$Y.Y m
Vs Last Year Primary Research FY0708
(M’gmt Accounts) A$X.X m
Operating Profit Primary Research A B C
(M’gmt Accounts)

Qualitative
Market Intelligence
• Supplier information
• Retailer information
• Competitor information
Market Research
• Awareness
• Satisfaction / Loyalty Internal Information
• General Feedback (sales staff etc)
• Market Share
• Commentary (management
accounts etc)
• CRM
Gaining “powerful insights”. Kotler (04), U4.7

Flexibility
…against Threats, as demonstrated in SWOT:
Adaptable Persistence
Marketing Factors change in Context Customers
Financial Factors change Company Collaborators

Questions?