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Published byWesley Lester Modified over 8 years ago
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November 2007 Western Star Olive – Natures Pure Gold Cecily Chen 11910275 Rory Fitzpatrick 21369623 Alison Luckfiel 12320951 Nadia Schoner 19482256 Tongchit Torsuwan 20404255Ren Zheng 11815698
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Agenda Situational Analysis Company Analysis Idea Generation Concept Development & Testing Business Analysis Product Testing Commercialisation
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Situational Analysis Butter is 14% of retail sales & represents over $100 m Spreadable oils & fats is 49% of retail sales & represents over $400m Butter consumption in Australia is slowly increasing Global demand is also slowly increasing Euromonitor 2007 IBIS World, 2007 Retail Sales Value Share 2007 Olive oil 26% Vegetable and seed oil 10% Cooking fats 1% Butter 14% Spreadable oils and fats 49%
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Situational Analysis Fonterra is the major player Popular brands include: –Mainland, Western Star, Allowrie & Devondale New Innovative Products –Low fat, natural, additives IBIS World, 2007
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Situational Analysis
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Company Analysis Fonterra’s mission statement, quite simply is “Dairy is our life's work. It's our passion and it's what we do best.” The focus is on: –Ensuring when anyone thinks dairy they think Fonterra –Putting the customer first –Making dairy an integral part of people’s nutrition –Delivering an integrated cow to customer value chain –Making Fonterra’s brands first choice –Employing and motivating talented people around the world –Winning and retaining the loyalty of shareholders
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Company Analysis Brand Ranking in Spreadables Western Star ranks 7 th on percentage BCG Model
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Company Analysis Seek to penetrate market with existing product & develop new product
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Company Analysis Major player with available resources within the dairy industry
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Idea Generation Based on mega trends & company position / capability Cross functional team Field trips to all section of the value chain Scour world markets / products Zing technology
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Idea Generation Screening Maps Evaluation Final Concept
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Concept Development & Testing Western Star Olive – Natures Pure Gold was progressed to concept testing
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Concept Development & Testing Utilised internal customer service team –Profiled consumer types –Focus groups –Individual interviews Connection with attributes & benefits Intention to purchase was over 50%
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Business Analysis Marketing objectives: –Increase market share for functional spreadable. –Increase business unit’s profitability
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Business Analysis ROI – 254%
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Business Analysis
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Awareness-Trial-Repeat Model Total no of household 2,400,000 Aware0.5 Try0.6 Repeat0.4 Average no of repeat per annum (150G) 14 Unit cost$ 0.48 Break even sales $ 1,965,906 Awareness-Trial-Repeat Model Total no of household 2,400,000 Aware0.5 Try0.6 Repeat0.4 Average no of repeat per annum (375G)10 Unit cost $ 1.00 Break even sales $ 2,752,269 Awareness-Trial-Repeat Model Total no of household 2,400,000 Aware0.5 Try0.6 Repeat0.4 Average no of repeat per annum (500G)9 Unit cost $ 1.27 Break even sales $ 3,145,450 Total Average Number of Repeat Purchase Per Annum is 33 Times
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Product Testing Focus groups Retailer interviews & demonstrations Simulations –Distribution –Warehousing & display –Packaging Testing –Customer Usage
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Product Testing Perceptions Effect of new product Expected uptake –Year 1: 5% market share –Year 2: 7% market share –Year 3: 10% market share
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Commercialisation Marketing Strategy - Mass market penetration Marketing Mix –Product >Leverage off existing brand, appeal to consumer on health benefits, taste, convenience and purity of product –Price >Obtain slight premium for benefit –Place >Grocery chains >Deli’s & health food stores
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Commercialisation Promotion Budget Market Research74,000 Advertising258,000 Sales & Promotion258,000 Packaging & Distribution147,000 TOTAL$737,000
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Commercialisation Monitoring & Evaluation Future of the product and marketing strategy Recommendation –Move the product to the commercialisation phase
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Thank you Questions
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