Executive Summary
The purpose of this report is to identify a
new target audience or domestic market segment (within Australia) for Cadbury’s
Cherry Ripe, and re launching the product effectively using Integrated Marketing
Communications (IMC) approach
In order to achieve the above mentioned
goals, the paper follows an approach of:
-
Prospecting and analysing
potential new markets for the product.
-
Establishing communication
objectives for launching in an identified market segment.
-
Devising a strategy, an appropriate
media plan to fulfil the communication objectives laid down.
-
Hiring and scheduling for
appropriate media, selected under the media plan.
-
Determining the time frame and
indicative budget for executing the plan.
The paper points out, the current positioning
of the product; indicates a suggested future path; lays down a strategy to
achieve certain objectives and benchmarks as part of future goals; and presents
such information in a logically coherent manner, citing references and, giving
choices and recommendations.
Executive Summary 1
1. Introduction 3
2. Target Audience 3
3. Marketing Plan 4
4. Integrated Marketing Communication
Objectives 5
5. Integrated Marketing Communication 6
6. Media Plan and Media Schedule 8
7. Budgeting 9
8. Recommendations and Conclusion 9
References 10
1. Introduction
Cherry Ripe is a brand of chocolate bar,
originally introduced by Australia’s then largest confectionery company, Mac
Robertson’s, in 1924. Cherry Ripes is claimed to be Australia’s oldest chocolate
bar by Cadbury since it acquired Mac Robertson’s. The brand continues to be a
widely appreciated and consumed chocolate bar; in fact a Roy Morgan study
pointed out that Cherry Ripe held 11% share of a purchase market, constituting
9.6 Million people. This is just a percent behind Mars chocolate which
dominates the greatest share of the purchase market with 12%. (ref.1)
Being an over 88 years old chocolate bar,
Cherry Ripe relates better to the mature part of the total chocolate market in
Australia. The average age profiling for Cherry Ripe consumer is 35-49 (usually
residing in the country side). (ref.2).The brand has an image of sophistication
and represent a symbol of indulgence and romance. Therefore, until now, the
brand’s promotion has included focusing on romance, pleasure and hedonistic
motives. A strong example being, a February 12, 2010 advertisement release, in
which all pages of mX newspapers were printed in wild cherry scented ink, and
pictorial messages such as a bouquet filled with cherries prompted potential
consumers to gift a cherry ripe to their beloved on Valentine’s Day. Such an
approach to promotion was a first of its kind. (ref.3)
However, Cherry Ripe is fast losing market
share due to its limited appeal and a fast aging target audience vis-à-vis
competitors such as Mars and Kit Kat, which appeal to a broader market
(including youth) and have an everyday appeal as against occasion based appeal
for Cherry Ripe.
The only survival option for Cherry Ripe is
to, identify a new target market, influence purchase behaviour in that market
and develop a strong preference or loyalty for the brand in such market.
Approximately, 67.5% of Australia’s total
population, being in the working age (ref.4), of which a huge portion lies in
the age segment of 15-29 – represents a behemoth marketing opportunity in a
market segment with actual liquid purchasing power and inclination for
chocolates.
Cadbury, while devising a relaunch strategy
must focus on the above discussed target audience.
2. Target Audience
It is suggested for Cherry Ripe to target
youth as its new target audience with an aging current target market comprising
of people of age 35-49, youth (age 15-29) provides a plethora of possibilities
for the brand.
Discussed below are some of the key characteristics
of this target audience:
2.1. Mass Market- The youth comprises a huge part of current Australian population.
With over 2/3rd of its population in the working age band, the youth
represents great purchasing power as a potential market.
2.2. Disposable Income- People between the ages of 15-29, possess great spending abilities
although they do not have deep pockets largely. Such a population has the
capacity to earn and spend.
2.3. Readiness- The target audience is a young and experimenting one. They do not
have strict preferences or bias hence, suggesting use and getting them to try a
new product is not particularly difficult.
2.4. Female References- A study indicates (ref.1) that a large number of chocolate
consumers are likely to be females between the ages of 14-24 years. This
population of females is already targeted in the group of 15-29 year olds.
2.5. Consumer Associations-The target audience has strong associations and preferences such as
fast food, sports, computer games, driving, working out, etc. It can be a useful
strategy to associate/piggy back marketing efforts with the promotion
activities, the target market already strongly prefers.
2.6. Impulsive- The consumer in the age of 15-29 tends to be impulsive in his/her
purchase decision. For example, loose change while checking out at a grocery
store counter may motivate a prospective consumer to purchase a Cherry Ripe.
Thus, it is imperative for distribution channels to make the product available
to the consumer at an arm’s reach.
2.7. Lifestyle- A young audience prefers product which absorb into their fast paced
lifestyle without posing a hindrance.
3. Marketing Plan
Given Cadbury Cherry Ripe’s
new choice of target market, a marketing plan brief has been arrived at which
will guide decisions under the integrated marketing communication plan. The
major points under this plan have been outlined below:
3.1. People- The target audience for relaunch of Cadbury Cherry Ripe has been
discussed in point 2. The new market segment comprises of youth (includes both
sex) between the ages of 15-29.
3.2. Price- of the product will play a critical part in attracting the youth
market. Since, such an age segment does not possess huge income it is advisable
to stick to economy pricing to encourage consumption trends among the youth.
Currently, Cherry Ripe is priced in the range of 2$-5$ available in 55g-216g
pack, and 18g special treat pieces. It is advisable to readjust prices to
1.70$-3.5$ to appeal to the pockets of a young market.
3.3. Product- The original Cherry Ripe will remain essentially the same. Since,
it is believed that it already caters to the taste of a huge population and has
been preferred since generations; only a difference in marketing effort is
needed to re establish its charm among the upcoming generation.
3.4. Placement- The target market is already known for making impulse buying
decisions. Hence, it is imperative to place the product at an arm’s reach to
motivate better sales. Some of the suggested places where Cherry Ripe should
build presence are, Convenience Stores, Grocery Stores, Coles, Woolworth,
Kmart, BigW, Service Stations, Gas Stations, News agents, etc.
3.5. Promotion- Since the age band of the target market is 15-29, it is obvious
that youth centred advertising promotion and selling effort is required. It
would suit the brand to appoint prominent youth icons as brand ambassadors,
associate with activities such as super bowl or other sporting events, co brand
with fast food eateries such as Mc Donald’s, initiate viral/buzz marketing on
social media or public spaces (example, flash mobs); or promotional schemes
such as win one on purchase of every six, two for price of one, or winning
holidays, sports equipment or wild card entry to certain reality TV shows.
3.6. Packaging- A little modification is needed to Cherry Ripe’s current packaging
philosophy. Currently Cherry Ripe comes in pack of 55g, 85g, 216g and 18g
special treat pieces. It would do well to the brand to introduce more variants
of small packs to promote impulse buying behaviour and encourage frequent
consumption.
3.7. Physical environment- The ambiance or the mood of every marketing effort should portray an
environment that goes well with the actual lifestyle choices of the target
market. Thus relaxing with a Cherry Ripe in a snack break at office or at half
time during a basketball match relates a lot with the market we are targeting.
4. Integrated Marketing Communication Objectives
After a functional understanding of the
target market and the proposed marketing plan is achieved, a communication
expert can proceed to determine the objectives of IMC which will help make
choices and selections while bringing the communication plan in action.
4.1. A foremost objective of Cherry Ripe’s IMC plan will be to stimulate interest among the new target
market, to at least try the product. This can be done by placing teasers or
buzz marketing.
For example, teasers could be placed at bus terminals,
at sports events, advertisement during youth centric TV shows, reading: ‘Did
you experience Ian Thorpe’s secret today?’; assuming, company has roped in Ian
Thorpe as its brand ambassador.
4.2. Encouraging trial through teasers and buzz marketing efforts which can be gradually
diverted to an established place for product trial like, give away with fast
food combos at McDonald’s, with a ticket to a sporting event, etc.
4.3. Differentiating Cherry
Ripe- One of Cadbury’s closest competitor in the
youth market is Mars. Cherry Ripe stands the advantage of differentiating
itself as the oldest most establish choice of generations in a lifestyle of
work, sports, and ‘no time for self’. Differentiation on the lines of – ‘it is
what the Tyrannosaurus gets, to enjoy a break!’ – Hence, the idea of classic,
powerful and energy is communicated at once.
4.4. Once an understanding is reached on the target market’s needs and
the company’s offer to satiate those needs, the IMC plan can focus on
stimulating demand.
4.5. The next objective in the line will be to, increase market penetration and encourage repeat and impulse purchase behaviour, a characteristic
of any youth oriented market. However, a major barrier here will be countering
efforts of MARS which already is a leader in this segment with over 12% of
total market share.
4.6. Establishing a product
image for Cherry Ripe which appeals to a young
audience will not only influence sales volume but, also establish, modify and
reinforce desired attitudes; countering competitor’s strategy and building
support and acceptance for Cadbury’s Cherry Ripe.
4.7. Alignment with existing
marketing efforts by least disturbing existing
variables or, launching new variables in close conformity to existing, will
also help retain current target market and share.
5. Integrated Marketing Communication
As a communication expert one will give top priority to
building up a seamless brand communication model, which utilises various modes
of communication to express the brand’s core message.
It is advised for Cherry Ripe to employ IMC as
elucidated in the following points:
5.1. The foundation- At this stage it is of importance to clear the basics. Marketers
should be thorough with the characteristics of the brand and their offering to
the end user. A marketer ought to know the needs, attitudes and expectations of
the target market. Also a keen watch on competitor’s activities is needed.
Cherry Ripe is the oldest and one of the most popular chocolate
brands in Australia; it is aiming to reposition itself among a younger
audience. Though the brand portrayed a sophisticated image of indulgence, it
needs to remould the existing portrait of indulgence and pleasure to suit the
needs, expectations and behaviours of a young market; making them realise how
Cherry Ripe can contribute to their lifestyle by making work, rest and play,
pleasurable and energetic.
5.2. The corporate culture- Cadbury’s vision statement is ‘a Cadbury in every pocket’; relating
to this vision statement, the IMC plan is working aptly to increase market
share and penetrate deeper to put a Cadbury in everyone’s pockets.
All this will be executed in line with Cadbury’s mission
statement, ‘Our reputation is build upon quality, our commitment to continuous
improvement, it will ensure that our promise is delivered.’ Thus Cadbury’s
focus on quality will never be forsaken to pursue any strategy. Moreover, it
will be strengthened to gain loyalty of newer markets.
5.3. Brand focus- One of the major points in IMC approach will be to develop a Brand
Focus; an identity of the brand, its target audience will relate to. In case of
Cherry Ripe an identity is needed that promotes acceptance of the chocolate bar
among a young audience.
Essentially, Cherry Ripe should focus on the following
points to create a relationship with the youth:
5.3.1.
Old is Gold- Cherry Ripe can cash in on
its long standing reputation by presenting its modern relevance,
5.3.2.
By appealing to the lifestyle of a young population.
5.3.3.
This is to be achieved by
sending a message which presents the bar as a means of indulgence, relaxation and reenergising while pursuing a hectic or
a demanding lifestyle.
The brand’s focus should be on cashing on its already
present strengths like, the status of a ‘classic’ chocolate, easy affordability
and already popular image of hedonism.
5.4. Consumer Experience- Cadbury’s focus here will be to create an experience for the end
user which meets and exceeds their expectations. Three major points are
reiterated and of special relevance in Cherry Ripe’s case:
5.4.1.
Packaging- Size, style and type of
packaging should be such so as to promote impulse buying behaviour and
encourage repeated consumption on the go! Small pack variants fit the demand
for such an objective perfectly.
5.4.2.
Placement- Cherry Ripe should be placed
so widely so as to be available at arm’s reach thus, aligning with Cadbury’s
vision statement.
5.4.3.
Price- Economically priced bars will
stimulate and reinforce impulse and repeat purchase behaviour.
5.5. Communications Tools- Various communication tools are suggested to be employed by Cadbury
under the IMC program. Role of all such tools is elucidated below:
5.5.1.
Advertising- it is one of the basic
approaches to a communication program. Under Cadbury’s Cherry Ripe advertising
campaign, the following media are suggested to be used:
a) Magazines- Of genres such as sports, automobiles and tech reviews are of prime
focus. Such publications are widely consumed by the target audience hence, this
choice of media should prove effective.
b) Newspapers- Advertising on the gossip page might help attract attention as it
is a hot spot for an often gossip mongering youth population.
c) Radio- It can prove an effective medium since a lot of young office goers
follow the radio on the go, in their cars or, cabs. Internet radio is also a
good option to target a tech savvy customer.
d) Television- Ad films should be placed during screening of sports matches,
musical concerts, movies or shows appealing to the interests of the target
audience.
e) Outdoor- Utilising bus posters, hoardings at bus stands and out of home
advertising at high footfall areas like public squares and subways.
5.5.2.
Promoting- Cherry Ripe is advised to
take up the following paid for promotion:
a) Brand Ambassadors- Appointing prominent youth icons as brand ambassadors to generate a
better connect with the prospective market segment.
b) Sponsoring- Youth centric events and organisations such as sports events,
musical concerts, musical bands or sports teams.
c) Social Media- The power of social media has been widely recognised in modern
times. It is of utmost urgency to develop a creative approach to building
target audience on platforms such as Facebook, Twitter and Youtube.
5.6. Promotional Tools- Apart from paid communication tools, Cherry Ripe will be suing
various paid and unpaid promotional tools to start generating sales volume and
building a relationship with the customer.
5.6.1.
Sales promotion- Such efforts will help
build direct sales by promoting brand recognition for Cherry Ripe.
a) Coupons- Promotional offers like discount coupons and free gifts will not
only promote trial but also reinforce repeat purchase decisions among an
audience which does not has huge financial resources at disposal.
b) Contests- Regular contests can be held through various avenues like social
media and kiosks in grocery shops to attract a prospective consumer and to
introduce him/her to the brand.
c) Co branding- with other non competing products, which are also preferred by the
target market. For example, Cherry Ripe can co brand with the likes of Subway
or McDonald’s which attract a very young population already.
5.6.2.
Publicity- Unpaid for promotion in the
form of press releases that are favourable to Cherry Ripe (like, on the
advantages of Cherry and Chocolate for a healthy lifestyle) and associating
with events covered by press in multiple mediums (like, sponsoring a charity
beach volleyball match gets covered on
national news). Such indirect branding will create an image in the subconscious
of a prospective consumer and will help establish a favourable brand image.
5.7. Integration Tools- It is imperative for Cadbury to maintain a customer relationship
management database/software to receive, analyse and actuate on feedback
received. Various statistical and analytical tools must be utilised to measure
and control the progress achieved by integrating marketing communication
program’s tools. The purpose of these tools is to measure progress, highlight
deviations and assist in correction of deviation found.
6. Media Plan and Media Schedule
Cadbury’s Media Plan along with a tentative
schedule is mentioned below:
|
Media
|
Frequency
|
Duration or
Type
|
|
1.
Magazines
|
Monthly
|
3 Months
|
|
2.
Newspapers
|
Bi annually
|
Very creative campaigns like the one issued by
Cadbury on February 12, 2010.
|
|
3.
Radio
|
Daily 5-10 Slots at rush hour timings.
|
8-12 weeks
|
|
4.
Television
|
Daily 50 slots approximately during specific shows
and particular channels.
|
8-12 weeks
|
|
5.
Outdoor
|
Alternative between certain appealing locations
|
6 months – 1year
|
|
6.
Brand Ambassador
|
|
Contracting for 1-2 years
|
|
7.
Sponsoring
|
1 event per quarter
|
Adopting on continual basis as part of CSR.
|
|
8.
Social Media
|
Forever
|
|
|
9.
Coupons
|
Daily
|
4-6 weeks
|
|
10.
Contests
|
3-4 times a year on national scale; Monthly on
social media
|
1-2 weeks duration for completing each contest
|
|
11.
Co branding
|
With 1-2 brands on a national scale
|
For 3-4 months
|
Thus, it can also be summed up that, time frame needed for IMC
efforts to be actuated is a year; this will be the approximate time to achieve the
set objectives of the marketing plan outlined.
7. Budgeting
Although it is quite difficult to arrive at a random
budget for the IMC program to relaunch Cherry Ripe; it may be useful to
allocate budget as a percentage of sales since,
-Cherry Ripe is a long existing popular product earning
quite well, making available a large corpus of funds.
-Existing allocated promotional expenditure fund for
Cherry Ripe division can be utilised to work on the new approach.
However, the approach has a drawback that it does not
establish a cause and effect relationship between the funds and the achievement
of objectives under the IMC approach. This can be provided for by putting
strict accounting and financial reviews to measure progress, deviation, overall
return on investment and profitability of the return.
Currently Cadbury has a 36% market share and a retail value of over
$35 million. (ref.2). 20% of all revenue/turnover can be allocated as budget
for relaunching IMC program for Cherry Ripe.
8. Recommendations and Conclusion
The paper has been able to point out a suitable
approach for Cadbury to reposition its popular chocolate brand Cherry Ripe in
the Australian market.
The findings and the research cited in the
paper establish that targeting a market segment which is young will provide
long term sustenance to the brand.
However, it is also strongly recommended to
follow an integrated marketing communication approach to present a unified
message about the brand from all marketing platforms utilised by the company.
While doing so it is also imperative to give due importance to time frame and
budgetary constraints, for systematic and successful completion of activity.
We’d like to conclude on the note that, as
complexities and roles of interfaces are increasing in modern organisations
such as Cadbury’s, it is even more necessary to employ approaches such as IMC,
in order to coordinate between various facets of a marketing strategy.
References
1.
www.roymorganonlinestore.com
– Mars bars, cherry ripe & kit kat – the favourites among chocolate bar
consumers.
2.
Buenocampaign.wikiscapes.com/micro+computer
4.
En.wikipedia.org/wiki/demographics_0f_australia
Assignment Brief
Assignment -1
Strategic management includes analysis of the internal and external environment of the
firm, definition of the company’s mission, and formulation and implementation of strategies
to create or continue a competitive advantage.
Choose any company of your choice. The company can operate in the international
environment or in the domestic environment. The company can be from any country.
Write a strategic management report based on details shown in the table below. Your report
must include all factors stated below.
You must use terms found within the study of management. You are encouraged to look up
various textbooks and journals to further explore these terms and to gain additional
knowledge on management to develop your knowledge and the quality of the assessment.
Description Recommended word length
1 Introduction of the company, the nature of its business
and any other relevant facts
2 Formulate a SWOT (Strengths, Weaknesses,
Opportunities & Threats) analysis in table format of the
chosen company.
3 Provide a scope of the External Analysis (General
Environment) of the company based on:
3.1 Demographic trends
3.2 Economic conditions
3.3 Political / legal forces
3.4 Socio-cultural conditions
3.5 Technological changes
4 Provide a scope of the External Analysis(Competitive
Environment) of the company based on:
4.1 Intensity of rivalry among competitors
4.2 The threat of new entrants
4.3 The threat of substitutes
4.4 Suppliers
4.5 Customers
5 Provide an internal environment analysis of the chosen
company based on:
5.1 Resource Types
5.2 Firms Capabilities
6 General conclusion of the analysis and the company 100
7 Provide recommendations based on corporate level and
business level strategies for the chosen company.
Total no of words 1500-2000
You are required to consult and fully reference a MINIMUM OF 5 SOURCES (e.g. ,
book;www;journal article from the full-text databases ; current affairs magazine ;
newspaper etc.). The use of WIKIPEDIA online encyclopedia is NOT allowed. You must use
the APA Referencing system to acknowledge your sources of information (both in-text,
and as a reference list at the end).
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