Strategic Marketing Plan Maggie Beer


Published on

1 Comment
No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Strategic Marketing Plan Maggie Beer

  1. 1. STRATEGIC MARKETING PLAN 2009-2011 Maggie Beer Extra Virgin Olive Oil Prepared by Sameer Qaiyum 1
  3. 3. Executive Summary Strategic Planning Process This Strategic Plan will serve as the marketing roadmap for Maggie Beer Extra Virgin Olive Oil for FY 2009-2011. The plan is the result of a detailed planning process that involved:  Analyzing existing data on olive oil market  Analyzing the research conducted by Rural Solutions SA  Analyzing the Maggie Beer Spring Newsletter and point of sale materials The process was facilitated by Bob’ o Shea, Professor of Strategic Marketing, University of Ballarat, Australia. During this planning process, all primary Data provided by Maggie Beer management and all the secondary data as well as strategies of Maggie Beer were re-examined, given the challenges facing Maggie Beer in the next three years. 3
  4. 4. Olive Oil is growing business in Australia  Australians consumed 32,5000 t olive oil in 2005/06, up from 16,500 t consumption in 1995/96  Imports also up from 16,000 t in 1995/96 to 29,000 t in 2005/06  Of this imported olive oil, approximately 25% is virgin olive oil  Local production has increased dramatically, with one estimate of more local supply than demand by the end of this financial year  Extra Virgin olive oil is a niche market in overall olive oil market, which in itself is a niche market in overall fats and oils sector.  Extra Virgin Olive Oil has more customer loyalty than other olive oils and is less prices sensitive.
  5. 5. 4
  6. 6. Growth of Maggie Beer Extra Virgin Olive Oil Maggie Beer has some good perceived value both among retailers and consumers due to its previously successful products in niche gourmet food and beverages market. However due to financial constraints, it has very limited presence and limited capacity to produce. This coupled with the fact that there are now too many hard to differentiate local producers in the niche extra virgin olive oil market and the added cost advantage of European competitors, presents a rather sober picture for overall growth, despite the good potential of the niche market in future. These realities have played a major role in shaping the strategies and tactics outlined in this plan. What’s New This plan features a number of new strategies, including:  Clearer definition of Maggie Beer Extra Virgin Olive Oil brand identity strategy by including new Brand attributes to showcase its full potential  Tighter focus on Maggie Beers primary target audience (Confident Gourmets, Health Driven, Women between 25- 54)  Effective partnership strategies with Specialty Store Retailers  More Focus on in-store Promotion  New Message Strategy for inbound visitors to the Farm  New On-line Marketing Strategy 5
  8. 8. Worldwide Olive oil industry is becoming static. Source: INTERNATIONAL OLIVE OIL COUNCIL (IOOC)  Forecasted supply for 2008 expected to exceed supply  It doesn’t apply that the industry in itself is maturing as demand is expected from markets which have been previously shown little growth, specially markets with higher GDP and higher fat per capita consumption such as the US, UK, and Australia. 7
  9. 9. Australian market is booming  Australian consumers are becoming increasingly aware of health benefits of olive oil.  Consumption by non-traditional consumers has increased thereby pumping the overall demand  Supply has also gone up; with one estimate putting up with the figure of local supply equaling local demand.  Table below shows a more conservative estimate of growth of olive oil (Source: ABS) 8
  10. 10. Intense foreign and local completion  Foreign players are key players in the market  They have cost advantage due to experience curve  They have cost advantage due to subsidies by their respective government  They have penetrated the supply chain  Key supermarket brands include Bertolli, Vetta, Olive Grove, Dante, Lupi and supermarket Private labels. These brands sell at retail for $4.00 to $10 per 500ml  Lot of local players; hard to differentiate 9
  11. 11. Supply chain Three distinct supply chain identified  Supermarket; major chunk of olive oil is brought from supermarket  Specialty stores; buyers buy there occasionally, for gifts and other purposes  In South Australia there is a trend of high proportion of consumers buying direct from the producers Rural solutions SA did a comprehensive survey of main retailers and supermarkets to get the feel of their buying behavior some of its key finding was Supermarkets  Pricing is key issue with supermarkets as olive oil sells on price promotion. There is no brand loyalty, as shoppers pick the brand on special  For Australian olive oil products to be stocked they need to match the pricing of the imports.  Supermarkets sell large volumes of olive oil and need to be assured of constant supply and consistency of quality product before they consider stocking an olive oil product.  Large supermarket chains import their olive oil house brands from overseas and have them pack to order each month to ensure freshness.  Specialty olive oil lines, like Viva, represent a very small proportion of total olive oil sales in supermarkets. 10
  12. 12.  Supermarket buyers consider there are too many Australian brands in trying to compete for the limited shelf space in this sector Specialty retailers  Wantsto stock brands that have some consumer pull through.  Wants regular promotion of brands like in store testing etc.  Wants complete technical information about products and their staff be educated by producers  Consistency of supply and taste was important to specialty store buyers.  Labeling of products was important to specialty store buyers, as it was a way of products standing out and of educating consumers.  Wants wholesale price to be lowered as their margin is decreasing day by day  Specialty retailers considered some of fancy bottles difficult to stock, especially those with long necks. 11
  13. 13. Customers  Consumers are relatively uneducated about the benefits of olive oil versus other oils and will substitute when the price of olive oil increases.  Much of the use of olive oil is based on habit and price.  Cost is the major barrier for consumption  Relatively more brand loyalty for virgin olive oil then olive oil Research for market segmentation In 1998 a study was undertaken by IOOC in USA and UK and two round of study were undertaken in 2002 in Australia. All these studies were merged together to create a customer profile and segmentation. The findings of these reports identified six clusters of olive oil consumers with little variation from country to country. 1. Confident Gourmets - Very high involvement /very regular usage 2. Recipe Followers - High involvement /very irregular usage 3. Health Driven- High involvement / regular usage 4. Traditionalists- Moderately high involvement /very regular usage 5. Middle Majority - Limited involvement /irregular usage 6. Indifferent - Very low involvement /irregular usage 12
  14. 14. Where does Maggie bear extra virgin oil stands?  Experience in innovation in gourmet food products giving efficiency in production  known for high-quality niche product- helps in capturing true value of product within Australia  Already have strong channel management with Coles and Safeway; helps in bargaining  Capacity of production limited  Limited brand awareness of its Extra virgin olive oil (For a detailed SWOT analysis see appendix) 13
  15. 15. Strategic Challenges for FY2009-2011  What markets and consumers should Maggie bear target, given the budget situation?  What is the best brand positioning and message strategy for Maggie bear in order to attract the intended customers?  What is the best way to deliver that message, given the current budget?  What is the best promotional strategy for promoting its product in supermarkets/ specialty retailers  How can the Maggie bear maximize the effectiveness of its marketing dollars? 14
  17. 17. Marketing Objectives for 2009-2011 1. Introduce Maggie bear Extra Virgin Olive Oil in specialty stores as a locally grown product that matches imported product with product promotion as pull strategy 2. Increase likelihood of in-state residents to visit and purchase Maggie bear extra virgin oils from its farm 3. Increase likelihood of out of state residents to take in-store tasting sessions in specialty stores 16
  19. 19. Current Brand Image as Quality product Brand Core Benefit: Great Authentic taste 18
  20. 20. Brand Considerations  Maggie Beer current brand image (Great Authentic Taste) appeals to Confident Gourmets, Recipe Followers and Traditionalist users.  However, Maggie Beer Extra Virgin oil has more to offer than just great taste. It also offers: - Health Benefits - Support to local community And it differs from other local Extra Virgin Oil producers because - it has extensive experience in producing niche gourmet food and beverages - its uses traditional methods of production which gives it unmatched taste  To increase its appeal, Maggie Beer needs to pursue a brand strategy that not only builds on the imagery Maggie Beer currently enjoys, but also expands people’s perceptions of its product as different from local producers, and as one providing health benefits as well as highlighting its extensive support to local community 19
  21. 21. Desired Brand Identity for Maggie Beer Extra Virgin Olive oil Brand Core Benefit: Great Taste and Good for Health NOTE: It will take more than one or two years to achieve this expanded brand identity 20
  22. 22. Brand Identity Strategy  Continue to reinforce current brand imagery.  Build stronger image for PLUS attributes. - different from local producers, - providing extensive health benefits - as well as highlighting its extensive support to local community 21
  23. 23. Brand Positioning Maggie Beer is among the few local producers which can match European’s in taste and appeal as well as its health benefit is there for all to see 22
  24. 24. Brand Promise Those rare beverage products which combine great taste with equally great health benefit 23
  25. 25. Core Creative Strategy  Emphasize the emotional benefits of supporting home grown product  Economical Benefits of supporting home grown product −local employment − Local revenue generator − Potential for import later on o Health Benefits from Extra Virgin Oil − Extra Virgin Olive oil lowers the levels of total blood cholesterol − ANTIOXIDANTS IN OLIVE OIL − Epidemiological studies suggest that olive oil exerts a protective effect against certain malignant tumors (breast, prostate, endometrial, digestive tract) − An olive-oil-rich diet is not only a good alternative in the treatment of diabetes; it may also help to prevent or delay the onset of the disease -Extra virgin olive oil reduces obesity -It has been documented that olive oil intake bolsters the immune system against external attacks from microorganisms, bacteria or viruses 24
  26. 26. Projecting Desired Brand Identity  Primary vehicles for projecting brand identity are advertising, online marketing, in-store promotion and PR  Advertising, online marketing, in-store promotion and PR need to resonate with existing customer base - Stimulate repeat purchase  However, advertising, online marketing, PR and in-store promotion must also attract people who have not yet tried Maggie Beer Extra Virgin Olive oil - Need to attract more first-time users - Need fresh executions of expanded brand positioning. 25
  27. 27. Maggie Beer Brand Identity Elements Maggie Beer should:  Develop new slogan that better sums up Maggie Beer Extra Virgin Oil expanded brand positioning  Revisit the current Extra Virgin logo (“to effectively communicate health as well as local produce effect”). 26
  29. 29. Concentrating on Australian Market only at present  Though US,UK and Australia has been identified as potential growth market by IOOC  Entering foreign market at this point is not feasible due to financial constraints.  Australian market in itself is a very big market for a small company like Maggie Beer 28
  30. 30. Market Segment Considerations  Within the overall Australian market, there are opportunities to appeal to specific market segments that have sufficient numbers to be attractive. The most obvious segments are: 1. Confident Gourmets - Very high involvement /very regular usage 2. Recipe Followers - High involvement /very irregular usage 3. Health Driven- High involvement / regular usage 4. Traditionalists- Moderately high involvement /very regular usage .  Maggie Beer should target no less than one-thirds of the available market  Over-segmentation should be avoided 29
  31. 31. Target Audience Strategy  Define the target audience by age. Primary target audience: 25-34, 35-54 Secondary audience: 55-64 People in age group of 25-34 and 35-54 are more inclined to innovation and are more health conscious  Define the target audience by gender. Primary target audience: women Deciding what oil to use for cooking is still primarily decided by females  Define the target audience in terms of household income. Median household income: AU$1,027/weekly (Source: ABS)  Define the target audience in terms of usage. Primary target audience: Confident Gourmets, Health Driven Secondary audience: Recipe Followers, Traditionalist. NOTE: This targeting strategy will be used to maximize reach against primary target audience. However, secondary audiences will see this advertising as well. 30
  33. 33. Audience Mindset towards Travelling To Farm to Buy Extra Virgin Olive Oil  Rural solution SA in their study found that there is trend in  SA to buy olive oils directly from producers  Maggie bear presently sells its extra virgin olive oil through farm sales and internet  No actual survey at present to exactly pin-point the attitude and behavior of customers going directly to farms  Supporting local community, can be one of the reason  Freshness of product  Relative cheapness  Relaxing environment 32
  34. 34. Message Strategy for inbound visitors  Message strategy for 2009-2010 will be like this.  Brand message: “Come to Maggie Bear Farm.” You’ll enjoy all the pleasures of Barossa Valley (scenic, relaxing, historic) PLUS the benefit of buying locally produce world class extra virgin olive oil at cheaper rates- all just up the road.  Promotional Message : “Come to Maggie beer Farm… and come now” Here are the reasons for coming to Maggie Beer Farm, supported by special events, special packages, and other promotional events with expiry dates.
  35. 35. 33
  36. 36. Strategy should be two phased.  Promote cultural and locally produce effect first (2009- 2010).  Expand cultural and local message to include health benefits once perceptions for cultural and local assets increase sufficiently. 34
  37. 37. Overall Communications Strategy  Modes used for delivering the brand message: -Radio advertising -Magazines - In-state PR - District welcome centers  Modes used for delivering “come now” messages: - Newspapers, magazines - Direct mail - Public relations - Packages and promotions - Point-of-visitation materials - Online marketing 35
  38. 38. Creative Strategy for messages  Emphasize the emotional benefit of the travelling to Maggie Beer Farm - Relax and unwind - Have fun  Leverage the positive imagery already associated with Barossa Valley - Only Australian destination on the New York Times list of '53 places To Go To in 2008' - Gourmet lover's paradise enriched in a strong cultural heritage reflected in its wine, food, buildings and people.  Emphasize the economical benefits of supporting home grown product −local employment − Local revenue generator − Potential for import later on o Use packages and special deals to communicate good value. v Call to action is: Go to Or call 0 8 8562 4477 NOTE: The Extra Virgin Olive Oil communication strategy for farm visitors cannot run as stand alone, it need to be incorporated with the overall Maggie Beer communication strategy for farm visitors 36
  40. 40. Advertising Strategy  Use Gourmet, Food, Women and Health Magazines to reach the largest possible audience in Maggie Beer target markets - Exploit Gourmet, food, women and health magazines influence on their readers to build Maggie Beer extra virgin olive oil brand image as a locally produce, world class, great health benefit oil. - Direct viewers to Maggie Beer website for more information about its extra virgin olive oil.  Support with limited newspaper and local radio advertising.  Depend on Tourism District to place point-of-visitation advertising 38
  41. 41. Advertising Tactics  Create three versions of ads. - One for Australian Gourmet Traveler stressing locally produce exceptionally high quality of Maggie Beer extra virgin olive oil - One for Well Being Magazine featuring great health benefits of Maggie Beer extra virgin olive oil. -One for The Australian Women’s weekly highlighting the mouth watering taste achieved in recipes due to Maggie Beer extra virgin olive oil  Purchase enough Magazine space in Australian Gourmet Traveler, Well Being and Australian Women’s Magazines for Maggie Beer extra virgin olive oil to be well above the minimum threshold for being read and recalled  Produce and distribute a co-op advertising with local district tourist board  Run twice a month local Radio ads. 39
  43. 43. Rise of the Internet in Australia  According to ABS data, in 2004-05, about one-third of Australians were shopping online — a dramatic increase, up from just seven per cent in 2000.  Recent data from Nielsen shows that total annual online spending in Australia jumped 63 per cent in 2006 to $12.5 billion.  That means that each one of the more than six million Australians who shop online spends, on average, more than $2,000 a year on internet purchases.  Internet sales are no longer just made up of large ticket items such as travel and accommodation, it is being used more and more for everyday purchases  Australian card holders spent $36.2 billion on Visa debit and credit cards during the fourth quarter of 2005, (the latest figure available). Source: Chris Pearce, Parliamentary secretary to the treasurer 41
  44. 44. Online Strategy for Connecticut  Use website to communicate in details the technicalities of its extra virgin olive oil.  Use for promotional activity  Enhance the website to provide a detailed presentation of health benefits achieved by extra virgin olive oil  Use online marketing to increase customer retention.  Use online marketing to generate inquiries from specialty stores.
  45. 45. 42
  46. 46. Website Tactics  Redesign website -Provide a direct link for extra virgin olive oil on its main page. -Provide link in to the health studies already being published online outlining the great benefits of extra virgin olive oil - Create a separate Webpage linked directly to extra virgin olive oil page describing in details the production process of extra virgin olive oil - Create page “What’s UP” with link in the extra virgin olive oil page describing all the ongoing promotional activity - Create “gift extra virgin olive oil” button, where customers can send directly the extra virgin olive oil gift wrapped to anyone in Australia.  Feature website address prominently in all advertising. - Send people to the website for more information about Maggie Beer extra virgin olive oil.  Work closely with Google to optimize search engine results with respect to extra virgin olive oil 43
  48. 48. PR Strategy  Enhance perception of Maggie Beer extra virgin olive oil; emphasize health and taste benefits  Encourage SA residents to take Farm trips  Create pride and sense of belonging towards the locally produce extra virgin olive oil  Focus promotion on primary target audience  Maintain awareness levels with existing customers  Leverage advertising buys  Maximize promotional and sales endeavors  Editorial coverage in gourmet, food, health and women magazines 45
  49. 49. PR Tactics  Press Trips -Group Press Trips -Individual Press Visits  Food trade shows -Such as “The Good Food and Wine Show”.  TV food shows -SBS food safari etc. -where a chef might be shown using Maggie Beer extra virgin olive oil  TV and Radio talk shows -where Maggie herself is interviewed on her latest product- extra virgin olive oil 46
  51. 51. Specialty Stores Dealing and Promotional Strategy  Induce specialty stores to stock Maggie Beer extra virgin olive oil  Enhance perception of Maggie Beer extra virgin olive oil among specialty store managers  Educate store staff on the technical details of Maggie Beer extra virgin olive oil  Encourage visitors to pick up Maggie Beer extra virgin olive oil over and above other displayed extra virgin olive oils 48
  52. 52. Specialty Stores Dealing &Promotional Tactics  Education of staff -One of the most important concerns that came out from the survey of specialty stores was their desire to be educated about the product -Trained sale force to educate specialty store staffs about the product, process, benefits and the differentiating factor of Maggie Beer extra virgin olive oil  Inducing specialty stores - Expert designed Product labels containing accurate product information such as: where grown, what varietals, type of crushing, crushing date, taste characteristics and acid levels - Expert designed bottle, with proper necks so that they can be easily stocked - Complete assurance by Maggie herself on the consistency in taste and supply - Promotional wholesale pricing strategy to match European season - Sharing the marketing strategies with store managers as an assurance for enough pull through being generated in the market  Encouraging store customers -In-store display carts - Product sampling 49
  53. 53. -Consumer sweepstakes -Point-of-sale merchandising -In-store signage -Direct mail to store regular customers 50
  55. 55. Market Research Strategy  Track the perception of Specialty store visitors towards Maggie Beer extra virgin olive oils  Track the perception of Farm and online visitors towards Maggie Beer extra virgin olive oils  Track purchasing behavior and attitudes of those Specialty store visitors who buy other brand  Track the background of online visitors  Track perception of store managers who stocks Maggie Beer extra virgin olive oil 52
  56. 56. Research Tactics  Conduct an annual perceptual tracking study (Brand Image Study) involving store managers, store visitors and farm visitors  Ties with company who create online visitor profiles -Daydream Websites is a good example  Online survey through closed structured questionnaires for online visitors  Use of snow-balling technique by recruiting university students to create store surveys 53