1. [Type text] Page 1
B00257643
Hannah Ritchie
Tutor: Eileen Henderson
Business
Submission Date: 2nd
May 2014

2. [Type text] Page 2
Executive Summary
ThisreportassessesTunnock’scurrentposition inthe biscuitindustryand developsanew digital
marketingstrategy.
The SOSTACframeworkwasusedto identify:
 Where TunnocksIs Now
 Where Tunnock’sNeedsToBe
 How Tunock’sIsGoing To Get There
To identifythe currentsituatione-scanningwascarriedoutat bothmicroand macro levels.These
include the use of Porter’s Forces,SWOTanalysisandPESTLE analysis.
Keyissuesidentifiedwere:
 The lack of companymanagedonline presence includingsocial mediachannels
 Threat of Substitutes –there are many substitute productsincludingothersnacksandsweet
treats.
Currentdigital activityof Tunnock’sincludedinformationonlywebsite,amerchandisesite,an
official twitterpage andvariousunofficial social mediachannels.
It became apparent Tunnock’sneedstohave abetteronline brandpresence forexample,Facebook
and Twitterpages.
Future strategicrecommendationsinclude :
Recommendation1
Objectives Activity
To initiate anonline brand
community within3-6months
and developcustomer
engagementwithTunnock’s
social mediaoverthe next3
years
Raise Awareness
 To create a Facebook,Twitter,YouTube,Pinterestand
Flickrpage.Liaisonwiththe companydesignertoensure
brandingisconsistent
 Carry out a TV advertisingcampaign suchasasking
customersto‘Like’the companyon Facebookorto
follow adiscussionpage.
 Addsocial mediainformationonproductpackaging
Encourage engagement(activityshouldbe carried out on a
weeklybasis)
 Use archivesof previousTV campaignstoloadengaging
contentontoYouTube
 Gather contentfromsponsorshipandearnedmediaE.g.
https://www.youtube.com/watch?v=w-FjcMDy7-s
 Put linksfromYouTube onto Facebooktokeep
encouragingcustomers

3. [Type text] Page 3
 Encourage customersto posttheirideasonFacebook,
pinterest,Flickrandtwitter(See Appendix 4)
KPI:
 To physicallyhave fullybrandedcompanysocial mediaaccountsforFacebook,twitter
pinterest,FlickrandYouTube
 The creationof a TV advertfocussedondrivingcustomersonline.Monitoringsocial media
analyticsforan increase inlikesandfollows.
 To physicallyhave the productpackagingredesignedto include the information
 Monitoractual customerengagementonlineviasocial mediaanalytics
Why?It became veryapparentfromthe marketresearchthat theydidnot have a veryeffective
online presence

4. [Type text] Page 4
Contents
Introduction.................................................................................................................................5
Objectives....................................................................................................................................5
SOSTAC........................................................................................................................................5
Where Tunnock’s are Now?..........................................................................................................6
Porter’s Forces (Digital Marketing).................................................................................................6
SWOT analysis.............................................................................................................................. 6
Strengths .....................................................................................................................................6
Weaknesses.................................................................................................................................7
Opportunities............................................................................................................................... 8
Threats........................................................................................................................................8
PESTLE.........................................................................................................................................8
Political........................................................................................................................................8
Economical...................................................................................................................................8
Social...........................................................................................................................................9
Technological............................................................................................................................... 9
SUMMARY ................................................................................................................................. 10
Where Tunnock’s Need to Be...................................................................................................... 10
Strategy Formulation Table......................................................................................................... 10
CONCLUSIONS............................................................................................................................ 12
References................................................................................................................................. 13
Appendix 1................................................................................................................................. 14
Appendix 2................................................................................................................................. 15
Appendix 3................................................................................................................................. 16
Appendix 4 Contentideas for Social Media .................................................................................. 17

5. [Type text] Page 5
Introduction
The aim of thisprojectis to assessTunnock’s currentpositioninthe biscuitindustryand todevelopa
newdigital marketingstrategy. Iwill be takinganemergentstrategyfor3 to 5 yearsdue to the
dynamicnature of digital technologies. SOSTACframeworkwillbe usedtodevelopthisplan. E-
Scanningcomprisesof microandmacro scanningandthisisessential forthe developmentof the
strategy.
Objectives
The objectives forthisprojectare:
 To assessthe currentdigital marketingsituationforTunnock’s
 To developanewdigital marketingstrategy forTunnock’s
 To make strategicrecommendations
SOSTAC
As previouslyindicated,the SOSTACframeworkwill be usedtodevelopastrategicdigital planfor
Tunnock’s.SOSTACisa planningmodel whichwas originallydevelopedinthe 1990s inorder to help
withmarketingplanningbyPRSmith.
SOSTACstandsfor:
Situation – where are we now?
Objectives– where do we want to be?
Strategy – how do we getthere?
Tactics – how exactly do we get there?
Action – what is our plan?
Control – did we getthere?
Its use isto enable the processof structuringplansfordifferentplanningactivitiesandsummarises
the keyissuestoconsiderat eachstage whendevelopingdigital marketingplans. The reportwill
take the format of where we are now,where dowe want to be and concludeswithastrategy
formulationtable thatindicatesTactics,ActionandControl.

6. [Type text] Page 6
Where Tunnock’s are Now?
To identifythe currentsituatione-scanningwascarriedoutat bothmicroand macro levels.These
include the use of Porter’sForces, SWOTanalysisandPESTLE analysis.
Porter’s Forces Model
Competitive Rivalry –the biscuitmarketisa saturatedmarketwhichhasmanysuppliers.However,
Tunnock’shasa directcompetitorwhichmakesbothTeacake andSnowball products –Lees– thisis
alsoa well-knownScottishbrand.
BargainingPower– inrelationtosuppliers,Tunnock’sproduce inexcessof 1 million biscuitsperday
and needsrawmaterialstomeetthe orders.Thiswouldgive themBargainingPoweroversuppliers.
BargainingPowerof Buyers– thisisnot a major factor as theypromote onthe brand and theyare
reasonablypriced.However,customersmaybe inclinedtobuythe cheaperproductif presented
side byside withLees. Itwouldbe intheirinterest tomonitorLeespricingtoo.
Threat of NewEntrants – newentrantsmayjointhe biscuitmarketbutthe machineryand start-up
costs wouldmake thisdifficultforthemtocompete withthe experience of suchanestablished
brand.
Threat of Substitutes –there are many substitute productsincludingothersnacksandsweettreats.
“Porter’sFive Forcesmodel hasbeenwidelyusedtohelpanalyse the competition” (Chaffeyand
Ellis-Chadwick,2012 p.91
SWOT analysis
The purpose of a SWOT analysisistosummarise the company’sownstrengthsandweaknessesin
the internetmarketingenvironment,external opportunitiesandthreatswhichare presentedby
digital platforms(Doyle and Stern, 2006, p.81).
Strengths
A. Flickrpage.
B. Timeline of Tunnock’scompany history1890-2010 onwebsite.
C. Brightcolourson the website are appealingandengagingforusers.
D. Funand entertainingimagesonwebsite.
E. A differentURLtakesthe customertoTunnocksmerchandise online giftshopand the range
of giftsisvariedandall items are competitivelypriced. The companyisachievingsalesin
America,Australia,Canadaandthe Middle East.
F. Theyinclude asectiononthe company’splannedexpansionforthe future todevelopits
currentoverseasmarket.
G. The website includesall the advertswhichtheyhave usedoverthe years.

7. [Type text] Page 7
H. Theygive detailsof theirfactoryaddress,theiroffice addressinScotlandandanoverseas
addressforsales.
I. The website containsacommunitypoll askingcustomerswhattheirfavouriteTunnock’s
snack is.
J. The website detailsall Tunnock’s products.
K. The company’sexportmarketishuge,covering30 countriesacrosssix continents.
L. The company hastheirownworldchampionshiprallycar.
M. Family-ownedbusiness
N. The company issponsoringJamie Flemingatthe Lacrosse 2014 WorldChampionships to
helppromote theircompany.
O. The company wasthe winnerof Europe’sprestigiousCandyKettleAwardin1999.
P. By December2013, Tunnock’srevenue hadsoaredto£42.2m, comparedwith£37.9m the
yearbefore.
Accordingto Mintel,over2012-13, the UK sweetandsavourybiscuits/crackersandcereal
bars/breakfastbiscuitsmarketincreasedto£2.7 billion.
The sweetandsavourybiscuits/crackersandcereal bars/breakfastbiscuitsmarketisestimatedto
grow to £3.2 billionby2018.
Withinsweetbiscuits,UnitedBiscuitsmaintainedthe leadin2013. Thisincreasedsalesby6% and
thiswas hugelydeterminedbyitsMcVitie’sbrand.Burton’sMarylandwasamongstthe strongest
performingbrands.Cereal bars/breakfastbiscuitscontinuedtobe ledbyKellogg’s.
Everydaybiscuitswere the best-performingcategory.Thisisdrivenbyconsumers’ thriftyspending
habitswhereassavourybiscuitsandcrackerswere the slowestgrowing categoryintermsof value,
withthe modestgrowth of crackers and crispbreadsmutingitsoverall performance.
Accordingto Mintel, 22% of consumersexpressaninterestinsavourybiscuits/crackerswithadded
healthbenefits(e.g.addedvitamins/mineralsandomega3).Interestpeaksamongwomenand25-
34 year olds.
Weaknesses
A. Lack of online presence (Facebook,Twitter)
B. No ‘News’sectiononwebsite
C. Lack of TV advertising
D. Shortage of product innovationinrecentyears
E. Considerabledependence onlongtermcustomers
F. The company tradesonnostalgia – ‘Tunnock’sisa taste of home’andtheirpackaginghas
barelychangedoverthe years.
Accordingto Mintel,the usage of cereal barsand breakfastbiscuitstrail significantly behind.These
have been eatenby59% and 49% of adults,respectively. Thismightbe linkedtotheirhigh interestin
snacksthat are easyto eat whenonthe go and easyto carry.
Accordingto Mintel, the companylosttheirpositiontoCadburysandUnitedBiscuitsin2013.

8. [Type text] Page 8
By 2018, forthe overall biscuitsmarket,withhouseholdswithchildrenagedunder15 beingthe
mainusersof all typesof biscuits,astronggrowth inthe numberof 5-14 year-oldsisexpected.
Opportunities
A. Create a ‘News’sectiononthe website
B. Introduce social CustomerRelationshipMarketingviaFacebook,Twitter,YouTube,Google+,
LinkedInandTumblr.
C. Reviewmarketingandthe range of products available toreachnew youngercustomers
D. Expandtheirmarketintoa healthieroptionproduct
Accordingto Mintel,the amountof interestamongsubstantialgroupsof consumersinsingle
portionsof biscuitswithfillingsandsnackpacks,suggestsopportunitiestofurtherguide usage of
savourybiscuits/crackersasasnack.
Womenare significantlymore interestedthanmeninlow calorie andlow fatvariantsof savoury
biscuits/crackers.
Threats
A. Lack of IT expertise
B. Unwillingnesstomoderniseanduse social networkingasa marketingtool.
C. Governmentfinancial/taxpoliciesforthe businesssector
D. Global recession
E. Computerviruses
Accordingto Mintel (health concernsandfierce competitionfromothertreat andsnacktypescauses
a threat to the market.
PESTLE
The purpose of a PEST analysisistocarry out a systematicassessmentof the forceswhichare
influencingthe online marketingenvironmentandidentifywhichforceshave consequences fortheir
ownmarketingplanningandstrategicplans(Johnsonetal,2008. P268).
Political
Tunnock’smustbe aware of any changesingovernmentintermsof the type of governmentand the
changesthat any tax policies mighthave onthe company’sfinancial stability.Changesintax,
employmentandbusinesslawscouldaffectthe company’sabilitytorecruitandretainstaff andto
expanditsbusinessopportunitiesathome andabroad.
Economical
Tunnock’shave to considerthe current interestrates,the currentrate of exchange andthe current
rate of inflationwhendecidingon the pricingof theirproducts.These factorshave a majorimpact

9. [Type text] Page 9
on howbusinessesfunction,howfinancial decisionsare made andthis,inturn,affectsthe
company’sprofitmargins.
Accordingto Mintel,everydaybiscuitswere the best-performingcategory.Thisisdrivenby
consumers’ thriftyspendinghabitswhereassavourybiscuitsand crackerswere the slowestgrowing
categoryin termsof value,withthe modestgrowth of crackersand crispbreadsmutingitsoverall
performance.
Social
Tunnock’sneedtoconsiderthe healthrestrictionsandthe rate of growth inthe population.The
companyalsoneedstoconsiderthe age distribution of itscustomers andthe companymust remain
responsible tothe healthandsafetyof itsworkforce.Increasingtrendsinsocial factorsaffectthe
demandfora company's productsandthe wayin whichthe companyoperates.Tunnock’salsoneed
to be aware of consumerattitudesandopinionsandtheirbuyingpatterns.
Crispbreadis the onlyproductthat has a strong female preference initsusage.Thisisdue toits
healthypositioning.
Sweetbiscuitsare along-establishedcupboardessential eatenby92% of adults,with45% eating
themat leasttwice a week.Crackersandsavourybiscuitsenjoyusage at77% and 73%, respectively;
however,usage frequencyisconsiderablylowerthanof sweetbiscuits.
Cereal barsand breakfastbiscuitstrail significantly behind.These have been eatenby59% and 49%
of adults,respectively. Thismightbe linkedtotheirhigh interestinsnacksthatare easyto eat when
on the go and easyto carry. Withinsweetbiscuits,UnitedBiscuitsmaintainedthe leadin2013. This
increasedsalesby6%and thiswas hugelydeterminedbyitsMcVitie’sbrand.Burton’sMarylandwas
amongstthe strongestperformingbrands.Cerealbars/breakfastbiscuitscontinuedtobe ledby
Kellogg’s.
Health-relatedattributes,includinglowcalorie,fatcontentand fibre content,are the greatest
interesttocustomerswhenitcomestosavourybiscuitsandcrackers.Only14% of new launches
carrieda low/no/reducedfatclaimin2013, and 3% a low/no/reducedcalorie claim. 22% of
consumersexpressaninterestinsavourybiscuits/crackerswithaddedhealthbenefits(e.g.added
vitamins/mineralsand omega3).Interestpeaksamongwomenand25-34 year olds.
The amount of interestamongsubstantial groupsof consumers insingle portionsof biscuitswith
fillingsandsnackpacks,suggestsopportunitiestofurtherguide usage of savourybiscuits/crackersas
a snack.
By 2018, forthe overall biscuitsmarket,withhouseholdswithchildrenagedunder15 beingthe
mainusers of all typesof biscuits,astronggrowth inthe numberof 5-14 year-oldsisexpected.
Technological
Tunnock’sneedtokeepup-to-date withthe evolutionof new technologyand alsothe progressionof
Research andDevelopmentprocesses.Eachof these can potentially determine if there are any new
obstacleswhichmightmake itdifficultforTunnock’stojoina particularmarketplace e.g.changesto

10. [Type text] Page 10
governmentregulations inthe foodprocessingindustries.Technological changescanaffectcosts,
qualityand generally leadstomodernisation of factorymachinery.
SUMMARY
Currentactivity:
 Website (See Appendix1)
 Flickr(See Appendix 2)
 Official merchandise sitebuttheydon’tmanage it (See Appendix3)
 Unofficial Facebookpagesforproducts
 UnpaidmediaincludingYouTube clipsandPRarticles
Where Tunnock’s Need to Be
Tunnock’sneedtohave a betteronline brandpresence forexample,FacebookandTwitterpages.
Theyneedto set upmobile oronline platformsinorderto promote theircompanythrough
improvedTV advertisingand theymusttry to reachthe maximumnumberof customers.
While the companyfeelsthatthe brandmarketsitself,itshouldrecognisethe benefitsof creatingan
online brandcommunity.Social mediatools,suchasTwitterandFacebook,can be usedto develop
brand advocates.Theycouldalsoconsidersellingthe actual productsonline.
Strategy FormulationTable
The purpose of a StrategyFormulationtable isto identifyall alternative strategies,review eachof
these optionsandtoselectthe beststrategywhichfitsinwitha company’stradingenvironment,its
internal resourcesandabilities.
The purpose of SMART goalsisto assessthe suitabilityof objectivessettoguide differentstrategies
or the improvementof the full varietyof businessprocesses.
Recommendation1
Objectives Activity
To initiate anonline brand
community within3-6months
and developcustomer
engagementwithTunnock’s
social mediaoverthe next3
years
Raise Awareness
 To create a Facebook,Twitter,YouTube, Pinterestand
Flickrpage.Liaisonwiththe companydesignertoensure
brandingisconsistent
 Carry out a TV advertisingcampaign suchasasking
customersto‘Like’the companyon Facebookorto
follow adiscussionpage.
 Addsocial mediainformationonproductpackaging
Encourage engagement(activityshouldbe carried out on a
weeklybasis)
 Use archivesof previousTV campaignstoloadengaging

11. [Type text] Page 11
contentonto YouTube
 Gather contentfromsponsorship andearnedmediaE.g.
https://www.youtube.com/watch?v=w-FjcMDy7-s
 Put linksfrom YouTube ontoFacebooktokeep
encouragingcustomers
 Encourage customersto post theirideas onFacebook,
pinterest,Flickrandtwitter(See Appendix 4)
KPI:
 To physicallyhave fullybrandedcompanysocial mediaaccountsforFacebook,twitter
pinterest,FlickrandYouTube
 The creationof a TV advertfocussedondrivingcustomersonline.Monitoringsocial media
analyticsforan increase in likesandfollows.
 To physicallyhave the productpackagingredesignedto include the information
 Monitoractual customerengagementonlineviasocial mediaanalytics
Why?It became veryapparentfromthe marketresearchthat theydidnot have a veryeffective
online presence
Recommendation2
Objectives Activity
To furtherengage consumerswiththe Tunnock’s
brand inparticularmalesinearly20s or 30s (in
line withrecentTV advertisingcampaignstarget
audience) withinyear1-3.
Firstyear would focusoncreationof app and 2-5
yearswill focusonencouragingengagementand
continuousdevelopmentof the app.
 To liaise withathirdparty supplierin
orderto developagamingapptargeted
at engaging20 to 30 yearoldmales.
Raise Awareness
 To promote the gamingapp through
social media,productpackagingand
traditional advertising.Prelaunchto
create hype and postlaunchto build
awareness
Encourage engagement
 Addadditional levelsof difficultyto
encourage interaction
 Have competitionsforhighestscores
and randommilestoneswithprizes
includingbothbiscuitandmerchandise
products.
KPI: The appis developedandalsothe numberof people thatdownloadthe app

12. [Type text] Page 12
 The physical appis developedanddeliveredwithinthe timeframe.
 To physicallyhave the productpackagingredesignedto include the information
 To physicallysee advertisinginthe virtual social mediaenvironment
 Monitornumberof people downloadingthe appsandregularlyplayingthe game
Why?Tunnock’srecentTV campaignwastargetedat malesintheir20s to 30s and it wouldbe a
realisticoptiontobuildonthis.Inadditiontothis,primaryresearchhasindicatedthatTunnock’sis
involvedinsponsoringextremesportswhichisattractive tothistargetgroup.Appshave a track
record of engagingwiththistargetgrouptoo.
CONCLUSIONS
I have assessedthe currentdigital marketingstrategyandfoundthattheyhave little onlinepresence
and engage infewdigital marketingactivitiesmainly:informationwebsite,Flickrandmerchandise
site.However,theydohave anunofficialfollowingonsocial mediachannelssuchasFacebook.
The suggesteddigital marketingstrategywastoinclude sellingthe biscuitproductsonlineand
developinganonline brandcommunitythroughcompanymanagedsocial mediapages.
Strategicrecommendationsincluded developingagamingapp andencouragingan online brand
community.

13. [Type text] Page 13
References
Mintel MarketResearchReports (March 2014) Biscuits, CookiesandCrackers
Barrie,J. (2013). TunnocksGolden Ticket - We Go Behind The ScenesAt Home Of Scotland'sMost
FamousBiscuits. Available:http://www.dailyrecord.co.uk/news/scottish-news/tunnocks-golden-
ticket-go-behind-2242757. Last accessed18th April 2014
Fleming,J.(). ThomasTunnockLimited. Available:http://jamiefleminglacrosse.weebly.com/sponsor-
--tunnocks.html.Lastaccessed18thApril 2014
Cameron,G. (2012). Tunnock'smerchandisemovetakesthebiscuit. Available:
http://www.heraldscotland.com/business/company-news/tunnocks-merchandise-move-takes-the-
biscuit.18740301. Last accessed18th April 2014
http://s.telegraph.co.uk/graphics/tunnocks Article Title- WrappersDelight.Lastaccessed18thApril
2014
Doyle,Pand Stern,P(2006) MarketingManagementandStrategy(5th edition),Prentice Hall,
London
Johnson,G.,Scholes,KandWhittington,R(2008) ExploringCorporate Strategy(7thedition),
Prentice Hall, London
Wright,S. (2013). Tunnock'senjoysexpansionin exports. Available:
http://www.heraldscotland.com/business/company-news/tunnocks-enjoys-expansion-in-
exports.22846474. Last accessed18th April 2014
http://www.tunnock.co.uk/ Lastaccessed18th
April 2014
Chaffey,D.(2012). What is the SOSTACmarketing planning modeland how do you useit? Available:
http://www.smartinsights.com/digital-marketing-strategy/sostac-model/.Lastaccessed22ndApril
2014
Chaffey,D(2012). Digital Marketing:Strategy,Implementation and Practice.Edinburgh:Pearson.
Pg218-219
Chaffey,D(2012). Digital Marketing:Strategy,Implementation and Practice.5thed.Edinburgh:
Pearson. P208-209
Chaffey,D(2012). Digital Marketing:Strategy,Implementation and Practice.5thed.Edinburgh:
Pearson.p124

14. [Type text] Page 14
Appendix 1

15. [Type text] Page 15
Appendix 2

16. [Type text] Page 16
Appendix 3

17. [Type text] Page 17
Appendix 4 Content ideas for Social Media

18. [Type text] Page 18
(Google images2014)