WordPress.com



Table of contentsExecutive Summary – Page 2Introduction – Page 3Product & Branding Strategy – Page 4Pricing Strategy – Page 6Distribution Strategy – Page 9Promotional Strategy – Page 11Recommendations – Page 13Conclusion – Page 15Bibliography – Page 16 Executive SummaryThis report analysed the product and branding strategies; pricing strategies; distribution strategies and promotion strategies in order to make recommendations on how to further develop the product and improve sales of Weet-Bix. Weet-Bix has been classified as a convenience product and has chosen to brand itself as, “An Aussie Icon.” Weet-Bix has achieved this through several methods such as associating itself with Australian sport, sponsorship of the Australian Cricket and Rugby teams and also promoting it long-standing in the market. These factors are all considered when setting the price of the product. Weet-Bix used cost-based pricing and value-based pricing strategies. Their product employs an indirect distribution strategy involving their product being distributed to an intermediary company before it reaches the consumer. Weet-Bix uses many promotional strategies such as advertising (television and print); product placement and; sales promotions. Recommendations include new packaging. A new sports sponsor more specifically we have recommended the Olympics, and a promotional Olympics strategy to go accompany it. We have also recommended researching what consumers like to add to their Weet-Bix and featuring some recipes on the new Weet-Bix packaging. IntroductionWeet-Bix was first introduced to the market in 1920 as a “budget-friendly health biscuit,” (.au). Weet-Bix has chosen to brand itself as an ‘Aussie Icon’, and also as a healthy breakfast option for those who lead an active lifestyle. This strategy has proven successful, as Weet-Bix has been the most popular breakfast cereal in the market for 30 years (.au). Weet-Bix uses cost-based pricing to support its branding as, “budget-friendly,” (.au) and also uses some value-based pricing to take advantage of its successful branding. Weet-Bix level of market exposure is intensive with Weet-Bix sold in nearly every supermarket in Australia, as well as convenience store and even some petrol stations. The promotional strategy exercised by Weet-bix is a marketing mix of advertising, sponsorship, product placement and special sales promotions all targeted towards their loyal consumers. We recommend that the company can further develop the product by introducing new packaging to re-modernise Weet-Bix, sponsor some different sports or possibly apply more current promotions, even possibly exploiting the Olympics.Product and Branding StrategyProduct Classification:As Weet-Bix is a shopping item that is frequently purchased at a low price. There is low customer involvement or effort and therefore it can be classified as a convenience productProduct Lifecycle StageWeet-Bix was first introduced to the market in 1920 as a “budget-friendly health biscuit,” (.au) and is currently in the market maturity stage of product lifestyle. Weet-Bix has been the most popular breakfast cereal for 30 years (.au/about-us). This means that sales have levelled off as Weet-bix has been accepted by most potential buyers in the market. Weet-Bix main focus now is defending its position in the market against competitors such as Nutrgrain. Branding:Weet-Bix has chosen to brand itself as an ‘Aussie Icon’, and also as a healthy breakfast option for those who lead an active lifestyle. It has achieved through promoting its long standing in the market and by associating itself strongly with Australian sport through sponsoring the Australian Cricket and Rugby teams. Weet-Bix also by provides several different sporting events such the Weet-Bix kids TRYatholon (.au) and Brett Lee’s cricket bootcamp (.au). This could be improved by sponsoring more sports such as football, as it is a very popular sport in Australia. To improve the branding of Weet-Bix as a healthy breakfast option Weet-Bix could focus less on associating itself with sports and sponsor a television show such as The Biggest Loser, which is very popular in Australia and also influences people who use the show as an example for what they should eat. This would help promote the branding of Weet-Bix to consumers who aren’t as interested in sport but still want to be healthy.Packaging:29718003810-11812377273657600304165Current Weet-Bix packagingSource: .au00Current Weet-Bix packagingSource: .au0304165Weet-Bix original packaging Source: .au00Weet-Bix original packaging Source: .auThe packaging of Weet-Bix has been changed since it was first created but has remained relatively unchanged for many years since. The brand could benefit from a change in packaging, however the main colours used should remain the same so consumers can still recognise the product. Sports stars who commonly appear in television advertisements for Weet-Bix could be featured on the packaging, or something similar to make the packaging more interesting. The aim should be to make the product stand out on the shelf and catch the attention of consumers. As Weet-Bix is a fairly plain product, suggestions of what could be added to Weet-Bix to make it more interesting could be added to the back of the packaging. For example if some consumers find Weet-Bix too plain and are thinking of trying a different breakfast cereal, a suggestion of adding banana and honey to their Weet-Bix may be the change they were looking for. This would help ensure that consumers continue to buy Weet-Bix. Pricing StrategyApproach to price settingThe price a company charges to the product is either too low to produce a profit or too high to produce any demand. Figure 1Souse: major considerations in setting price (Marketing 8th Australiasian Edition – Kotler)Figure 1 shows the main factors affecting the price setting for the product. The company should consider these factors to determine the best price. In order to set up a good price, the company should select many different factors, the cost-based pricing, value-based pricing, competition-based pricing, performance-based pricing and relationship pricing. Weet-Bix uses Cost-based pricing and value-based pricing strategies.Cost-based pricing: the company sets up the price by the cost of product. Weet-Bix set up the different product by different price, such as the original one is cheaper compare to the organic one. The price setting are basic consider to the cost of product itself.Value-based pricing: the price is determined based on the product’s perceived value. Weet-Bix makes a cup of breakfast cereal in order to convenience the customer which is more expensive than a box of breakfast cereal. The consumer is willing to pay more money for the convenience service. In this case, Weet-Bix uses the value-base pricing strategy, which can charge more because of the value added by the convenience service.Pricing strategiesProduct and service mix strategies and price adjustment strategies: the strategy for the price is always changed when product and service is mix. Generally, we are look at five product mix and service mix pricing situation, product/ service-line pricing, optional product/service pricing, Captive product/service pricing, By-product pricing and Product/service-bundle pricing. As weet-bix, the companies usually develop product lines rather than the single product. Such as it provide the many different type of breakfast cereal, the Multi Grain one or Organic one etc.Demand based strategies: The price elasticity of demand usually has three different points, Elastic, Inelastic and Consumers are less sensitive to price increases for necessities. As weet-bix, the price is elastic. Cereal is kind of fast-moving consumer good, is lower price and health product. However there are many substitute products. So that the price cannot too high and too low, the price are always go with the value of the products.Price adjustment strategiesDiscount pricing and allowances: In order to reward customers for certain responses, the most companies adjust their basic price, such as cash discounts, quantity discounts, functional discounts, seasonal discounts and allowances. As Weet-Bix, is usually using quantity discounts to reward customer’s concerns. For example, the Sanatarium Weet-Bix original 375g is $2.89 and the 750g is $4.50. The discount provides an incentive to the customer to buy more quantity from the retailer.Segmented pricing: The companies are always adjusting prices by differences customers, services, products and locations. As Weet-bix, there is more expensive selling price in the convenience shop compare to the supermarket; this price was adjusted by Location. The cost of offering each location is the same, but the different locations are priced differently. The different versions of the product are also priced differently. Such as the company priced Weet-Bix organic with 750g for $5.36, which is $0.83 more expensive than the original one.Psychological pricing: Price is really indicates something about the product. When the customer can adjust the quality for the product, they judge the quality by fewer prices. But when the customer cannot adjust the quality for the product, they are willing to look at the price to adjust the quality. For instant, if the people lack the information for the breakfast cereal, and there are two different products for the cereal, which is 750kg for $4.50 and another is 750kg for $5.00, some people are willing to pay $5.00 because this price indicates the quality.Promotional pricing: The companies sometime to lower their products price or cash rebates to draw more customers. The Weet-bix company launched its ‘Search for your share of ?1m’ Sales promotion, it offering the chance to win cash prizes from ?10 up to ?100,000 with an on- packs of Weet-bix in September last year (Utalk Marketing, 2010). Value pricing: The Weet-bix company provides the 97% wholegrain product to customers which can provide energy to help sustain through the morning. Weet-bix is the most popular breakfast cereal in Australia. Many of us are not eating enough grains and risk missing out on the nutrients. Some breakfast cereals offer wholegrain, protein, vitamins and up to 30% sugar. Higher sugars are easier have diabetes, so that people choose breakfast are more likely choose the lower sugar product. Compare to other product Weet-bix provide the low sugar but high nutrition for the breakfast. To protect its competitive advantage, Weet-bix provides many different designed products. Such as ‘one Square Meal’ was designed by a meal solution for breakfast, lunch- whenever, wherever (Sanitarium, 2011).Geographical pricing and International pricing (not relevant)Distribution strategyAn indirect distribution approach is utilised by Weet-Bix, whereby once manufactured they use such retailer companies as Coles and Woolworths to be the intermediary selling stage for their product. Once distributed to these grocery stores the consumers can then purchase the product from their local intermediary companies. Weet-Bix is distributed over multiple grocery and convenience stores all around Australia giving them a large degree of distribution. This large number of intermediary companies is beneficial as “intermediaries may provide market access that would otherwise be very expensive or impossible for the firm to secure” (Capon, 2007). This corporate channel of distribution employed by Weet-bix makes the shopping experience for consumers simpler and makes the purchasing of their product more efficient. This method delivers the Weet-bix product to the consumers in a setting that they feel comfortable purchasing in. Cereal is not a specialty item and is not an individually sought out item so consumers will purchase it along with other grocery products. Customers that shop at retail grocery stores want to compare and contrast the product and having Weet-Bix there gives them the opportunity to choose one brand over others and this is where the marketing strategies from Weet-bix will play a large role. The promotional, packaging and pricing strategies that Weet-Bix have chosen to use will influence the consumers on the first level to choose their product or at the least become interested in the product. However, once the manufactured good is sold to the retailer a lot of the risk and burden of selling the product now falls onto the retail company, so Weet-Bix share the responsibility of sales with their intermediary establishments. Degree of market exposure: There are three level of market exposure, exclusive, selective and intensive. The number of intermediaries classifies them. Weet-bix is at an intensive level, which outlets as many as possible. Weet-bix is available where and when customers want them, for example, the products are outlet in supermarket, petrol satiation and convenience shop. Since Weet-Bix has a selected target market of families and those with active kids, the product must be easily accessible. Therefore the intensive exposure of distribution correlates well with the markets consumer needs. Although Weet-Bix is distributed intensely around Australia they chose the two main retail outlets Coles and Woolworths as their intermediaries. Coles and Woolworths both have strong retail brand names and therefore if a customer wants to purchase a cereal brand they will most likely visit one of these two chain retailers. Overall Weet-Bix is the dominant force in distribution in the cereal market as it is difficult to find a grocery or convenience store without the product. Physical distribution: The Company employs the supply chain method of delivering and distributing their product. This requires a large amount of organisation between the Weet-bix manufacturers, the retailers and the transportation officers. Since Weet-Bix has chosen to sell their product first to large retail stores, the task of transporting the product usually falls upon the retailer. Most often the stores that purchase the product will have their own delivery system and the manufacturer simply puts their order together for them to collect making it very simple. Weet-Bix is a well-established company and since it is now in its maturity stage with an intensive exposure level and a strong distribution strategy their only concern is to keep their product popular so that stores will continually purchase their brand. This is where promotion strategy comes into play. Promotion strategyThe message Weet-Bix pushes centres upon the idea of a healthy option of cereal for kids that will benefit them with their active lifestyle. The message draws from themes such as active lifestyles, healthy choices, sport and family. The cheap price of Weet-Bix put together with its high quality status transmits the idea of value for money, which is perfect for families and those on a tight budget. Weet-Bix has a strong promotional blend in place. They use multi-media advertising, sponsorship, product placement and sales promotions to constantly remind consumers to purchase Weet-bix over other cereal brands. Since Weet-Bix is in its ‘Maturity’ stage it needs to continuously stay relevant and continue to advertise strongly in order to prompt consumers to resume buying their brand of cereal. Since it is in its maturity stage a large amount of advertising is not necessary, just enough to remind consumers about the Weet-bix brand so that it can maintain its position as a market leader. Advertising: Weet-Bix uses various platforms of media to advertise its product. These advertisements include television ads, newspaper print ads, in-store displays and posters (Woolworths and Coles). All advertisements focus on the Weet-bix message of healthy active kids, through always pushing their slogans of “Aussie kids are Weet-Bix kids” and “How many do you do?”. However, their advertising has been lacking recently with no television commercials being aired or released in the past year and a low number of print advertisements. 34290001822450016129018224500Print Advertisement (2010) In-Store Display and Banner (2011)Print Advertisement- Banner and Display - : Weet-Bix is the proud sponsor of many sporting teams and sporting activities including My Cricket Australia, Kids Tryathalon, Hyundai A-League of Soccer, the Socceroos and television reality show The Biggest Loser. Famous sporting individuals such as Brett Lee, Tim Cahill and Torah Bright and Stephanie Gilmour also sponsor Weet-Bix. These sponsors of Weet-Bix have not changed for a long time and Brett Lee is still the face of Weet-Bix. Since all sponsorship of Weet-Bix is revolved around sport it creates congruence in the consumers mind that Weet-bix and sport go hand in hand. Their sponsorships have associated the Weet-bix cereal with the idea of healthy active Australian lifestyles. Product Placement: Just recently the Weet-Bix brand has joined into the product placement promotional strategy. The brand is one of the first brands to sign up for a revolutionary style of product placement of where a product is now digitally inserted into a program after the show is produced. Weet-Bix signed up with channel 10 to utilise this product placement where there is to be “a digitised Weet-Bix box set to appear in an episode of The Biggest Loser” (Kennedy, 2012). This is a clever strategy by Weet-Bix as the product placement of their brand in a show that is based upon eating healthy and losing weight effortlessly advertises and promotes the healthy option of Weet-Bix without the viewers even being aware of it. Sales Promotion: There are a few promotions occurring involving Weet-bix at the moment. One of the promotions is an incentive promotion where kids receive a ten-dollar discount to their ‘tryathlon’ registration if they purchase two boxes of Weet-bix cereal. The second promotion that has just recently finished was the opportunity to win a cricket experience with famous cricketer Brett Lee. This promotion involved entrants writing a short message about their memorable cricket moment and the winner was to receive tickets to the match day of cricket where they would spend the day with Brett Lee himself. Both of these promotions gave Weet-Bix a strong marketing edge over the other brands, as it was both a strong incentive to purchase Weet-Bix as it enticed kids who are interested in sport and the promotion stayed true to Weet-Bix’s theme of active and healthy. It was a very directed and focused promotion to a small target audience but was overall very effective.RecommendationsWeet-Bix already has strong marketing strategies in motion. Their large affiliation with sport has helped them maintain a strong advantage over other cereal brands. There are a few issues in their strategies that could be altered or fixed up. As stated earlier both Weet-Bix’s branding and sponsorships have not changed for a long time. To stay relevant with the ever-changing market we suggest a re-modernisation of Weet-Bix while keeping along with its core theme and message. All consumers may not always like change but it is always effective at getting attention and bringing excitement to a product. The packaging itself needs to be modernised with a bolder image on the box, the colour scheme should stay the same so that consumers can easily recognise the brand but the word “Weet-Bix” and the image on the box of Weet-bix should be more attention grabbing. Perhaps an image of a child playing cricket, but instead of a cricket ball it could be replaced with Weet-Bix. This would be more of an exciting image for kids to see on the box than the current image of two Weet-bix in a bowl and it would stay relevant to the theme of “Healthy living” and their sponsored sport of cricket. The logo of Weet-Bix could be changed slightly with simply using a different font. The packaging and promotion of Weet-Bix could be used together. Weet-Bix could ask its consumers what they like to add to their Weet-Bix or recipes they have created with Weet-Bix. This could be done via Facebook, an online survey or even a promotional competition where the best recipe wins. These ‘Weet-Bix recipes’ could then be added to the package on the back. There could even be a new recipe on each new dispatch. This would involve the consumer and make them feel more apart of the Weet-Bix product. Along with new promotions Weet-Bix should consider getting new sports sponsors. Their main sponsor Brett Lee is getting old and is not as popular as he used to be. With new popular cricketers rising each year Weet-Bix should contemplate choosing a new face for their product. There is also the possibility of going in a new direction with not only a new face of Weet-Bix but sponsoring a different or another sport along with cricket. For example soccer players such as Tim Cahill and the Hyundai A League is already sponsored by Weet-Bix but is not promoted as highly as cricket. Weet-Bix could become the absolute dominant sporting choice of cereal if it sponsored not only cricket and soccer but also other sports such as netball, Afl or hockey. The company should also exploit upcoming sporting events such as the World cup of soccer or the 2012 Olympics. There are numerous promotional strategies that the Olympics could be utilised in. The box that Weet-Bix comes in could have a cut-out collectible Olympian card where each card has statistics and a photo of an Australian athlete competing in the Olympics. Australian pride is at its highest when the Olympic games are happening and everyone wants to support their Country’s athletes. So, Weet-Bix should appeal to this by promoting the Olympics in not only their sales promotions but packaging and also advertisements. They could bring in a special slogan to further emphasize that Weet-Bix is an all-Australian cereal company and their patronage towards the Australian Olympic team. It could be something as simple as “Proud to be Australian”, and this simple reminder of patriotism will influence other loyal Australians to purchase Weet-Bix. ConclusionTo conclude Weet-bix has a strong marketing strategy in action but could improve in certain areas. Their pricing strategy has and currently still is working quite well and continues to offer good value for money. Their packaging and branding are sufficient enough but could be improved and maybe enhanced. Their distribution is very strong and they have penetrated the cereal market on great level with intense exposure. As long as their product is in demand their distribution will continue to be strong. The promotional strategy is where Weet-Bix has been strong in the past but has recently been lacking. Since Weet-Bix is in its Maturity stage it needs to constantly stay relevant and promote its product. If Weet-Bix becomes stronger in the promotional strategy it will stay the leader of the cereal market. Reference list-Capon, N. 2007. Capon’s Marketing Framework. Wessex Inc, New York-Kennedy, J. 2012. Digital Weet-Bix box in The Biggest Loser. February 29th 2012 , viewed on May 18th 2012. -Kotler et. Al, 2008. Marketing 8th Australasian Edition, Pearson Publishing, Sydney-“One Square Meal” (2011), Sanitarium, viewed on May 2012 -Weetabix’Search for your share of ?1m’ sales promotion, 2010, Utalk , viewed on May 16th ‘Search_for_your_share_of_?1m’_sales_promotion ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download