AUSTGRAINS PROPOSED MARKETING APPROACH

PORTFOLIO 1: AUSTGRAINS PROPOSED MARKETING APPROACH

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TOC o “1-3” h z u Introduction PAGEREF _Toc64951733 h 3Product Analysis PAGEREF _Toc64951734 h 3Market Overview PAGEREF _Toc64951735 h 4Target Market PAGEREF _Toc64951736 h 5Marketing: Targeting Customers through Social Mechanisms PAGEREF _Toc64951737 h 5Stakeholder Analysis PAGEREF _Toc64951738 h 8Findings and Conclusion PAGEREF _Toc64951739 h 9References PAGEREF _Toc64951740 h 11

IntroductionWould organizations exist without any form of marketing? To answer this question, Gronroos (2006) begins by providing a definition for marketing, terming it as a process that involves teaching the target consumer about a product and why they should choose it over any other available option from the competition. Basically, marketing is all about persuasive communication. Vinerean (2017) noted that marketing has several processes involved in moving products from a business to a consumer: creating a product concept, identifying likely consumers, promoting it, and then moving it using the appropriate selling platforms. Therefore, marketing facilitates the capturing of the attention of a target market, persuading consumers to purchase products, and providing the consumer with low-risk and specific actions that are easy to implement (Gronroos, 2006). Marketing helps to attain the goals of a business as far as a product and a market are concerned. Therefore, organizations would not exist without any form of marketing.

In this paper, marketing principles will be applied to AustGrains new product. The company intends to push the product to different markets across Australia. AustGrains has created a product concept based on several platforms such as eating for wellbeing and health, sustainability, and a combination of such factors that intend to drive the majority of Australians towards better food and diets (Future Food Systems, 2020). For the company, the major headache is that the Australian market has not been very receptive to the new product as expected. Therefore, this report intends to advice the company on the best way forward from a marketing point of view. It will provide an analysis of the market, the product, specify the target market, provide the best marketing concept to apply, and later provide a stakeholder analysis to inform the organization on how to engage.

Product AnalysisAustGrains intends to be a pioneer in the Autralian healthy foods sector. Towards this end, it has partnered with other major players in the food industry in Australia to create a fibre-packed and nutrition-filled pulse-based flours (Future Food Systems, 2020). The product is specifically aimed at covering the increasing demand for nut-free, low-allergen, low-GI, and gluten-free foods (Future Food Systems, 2020). The product also aims at remaining committed to giving Australians a nutritious and sustainable plant-based source of protein. The product is a result of a multilayered problem statement where different players in the food industry have collaborated to identify a gap in the food industry for healthy and sustainable foods that are in line with the growing demand for protein sources that leave the body healthy and the environment better. Therefore, the product relies heavily on scientific methods and extensive research to identify pulse varieties that can be turned into flour to replace the heavily-used wheat and other gluten-containing ingredients. While this product has not necessarily re-invented the wheel, it has used existing pulse legumes (lentils, chickpeas, and mung beans) to add value (Future Food Systems, 2020). The main aim of the product is to increase the consumption of pulse-based products due to their proven health benefits and provide the benefits of sustainability to the increasingly environmental-conscious consumers in Australia and beyond.

The new product will be a breakfast cereal called Pulse Nutri-Bix. The product will have high protein content with reduced gluten and fat levels. The breakfast cereal sector in Australia is a very wide market that is dominated by large players such as Kellogg and Uncle Tobys. Apart from jumping the competition hurdle, the main challenge for Pulse Nutri-Bix will be getting consumers in Australia to quickly accept the product.

Market OverviewTo better understand the Australian food industry, an overview of the local macro-factors is important since the available range of food products and trends are reflective of the political, cultural, and economic diversity and circumstances. Firstly, Australia has an estimated 25.4 million people as of 2019 (Flanders Investment & Trade, 2019). The importance of the population size is in knowing that more than 90% of these people are said by (Flanders Investment & Trade, 2019) to be living in urban areas and more than 67% living within capital cities of Sydney, Melbourne, Brisbane, Perth, and Adelaide. Further, the median age of the Australian Population is at 37 years as of June 2018 (Simon-Davies, 2018). Additionally, (Flanders Investment & Trade, 2019) found that Australians are living longer than ever before. However, more than 50% of the population suffers at least one chronic condition made up of lifestyle and eating factors. Conditions such as obesity, overweight, high alcohol intake, and a lack of physical activity and smoking ae contributory factors to the prevalence of chronic conditions.

The GDP of Australia has grown steadily over the last 3 decades, establishing a growth rate well above the OECD average (Flanders Investment & Trade, 2019). With this growth, the Australian food industry has flourished. Changing lifestyles due to availability of disposable income have meant changes in trends from home cooking to eating take-out and restaurant dining. The consumption of fast foods has spiked owing to the availability of income and a change in the food consumption trend in the country.

Due to the growth of the economy, the stability of the political climate, and the expansion of social elements, people have had access to information, including knowledge about the need to change lifestyles to include healthy eating and regular exercising. Social factors coupled with growing environmental concerns are focusing on the food industry to contribute in providing sustainability solutions to the world. According to a recent study by (Flanders Investment & Trade, 2019), more than 97% of Australians do grocery and food shopping at large supermarkets, with new consumer concerns including green product packaging, healthy foods, and foods that are in line with sustainability concerns. As a result, players in the food industry, including AustGrains, have turned to innovation to connect to newer ideas that will support the expectations placed on the entire industry.

Target MarketThe target market for the pulse-based flour is the middle class health-conscious consumers in their early thirties seeking greener food options that address both sustainability and health concerns. This category of consumers want food that is not only better for them but also important for the environment. The middle class health-conscious consumers, especially those in their early thirties, make up a significant number of employed Australians. Ghvanidze et al. (2019) note that health-conscious consumers are increasing in number globally. Due to influences from the social economic, and cultural factors, Australian consumers have been increasingly paying more attention to how food is produced and providing support to business that show care for the environment. Some of the popular products in Australia right now are those that target this market. Companies in the food industry have been forced to respond to the health and sustainability concerns by providing plant-based protein, alternatives to meat and fast food, coming up with waste initiatives, and creating unique and new packaging ideas to give the eco-conscious consumer all of their priorities in one product. AustGrains will target the same group of consumers for its revolutionary pulse-based flour and other products.

Marketing: Targeting Customers through Social MechanismsThe pulse-based AustGrains products will take the form of goods. AustGrains should provide the pulse-based flours in the form of flours (for purposes of home use and for other players in the food industry such as restaurants to use in making food) and as complete products such as chips, tart, pizza crusts, and protein-rich breads. In this form, the consumer will be able to interact directly with the product, see the difference with other products in the same category, and make a decision on whether to consume or not. The product will be made visible through appealing visuals, a display that reflects the brand, considering the target market, clarity of signage, and making the product stand put. The advantage of using the product in the form of goods is that the product will be physically available to a consumer in retail stores, supermarkets, and other platforms that boost sales. Therefore, the AustGrains pulse-based flours and other products will be able to reach wider markets in a goods form that will be distributed in supermarkets and farmer market for better sales.

For the product to be accepted in the Australian market, and specifically for the chosen target market made up of middle class health-conscious consumers in their early thirties seeking greener food options that address both sustainability and health concerns, a social mechanisms marketing approach will be most effective. Torronen et al. (2019) define social mechanisms as a theory that explains the causes of events. Social mechanisms enable change by linking the macro to the micro and vice versa. The social mechanisms theory, according to Kemper & Ballantine (2017), is based on a concept that people are influenced by their environment and in time, they influence the environment back. At the micro level, Mitchell, Schuster, & Drennan (2017) assert that events scale up to the macro level causing an interruption in the way people operate in different environments. In the case study, for example, there is a micro level need for healthier foods in order to improve personal lifestyle goals. Collectively in the macro level, the Australian population is looking for nut-free, low-allergen, low-GI, and gluten-free foods to support a healthier lifestyle. The result is that there is a growing and rapid movement among the Australian middle class to move to other food options that provide protein-rich, plant-based diets that are nut-free, low-allergen, low-GI, and gluten-free foods, and in line with the sustainability goals that have underlined the crisis of this century.

Figure 1: Coleman’s Boat

Cultural factors are some of the macro changes at a country level that are influencing how an individual in Australia consumes food and the type of food chosen Mitchell, Schuster, & Drennan (2017). Social factors including peers, family, culture, and meal patterns in the food industry have led to a wave of a diet-conscious Australian regarding the food taken as a macro level association. Action-formation mechanisms have led to a shift in the way people consume food, including a reduction in the amount of fat and cholesterol taken. These have in turn led to an impact on the opportunities and incentives for an individual. Even in individual company, people will rarely consume foods rich in fat or cholesterol due to the macro-level influences. The beliefs of an individual regarding proteins and their role, including the need to supplement food with plant-based products have been altered through a notable proliferation of information on foods. Consequently, other individuals have shifted the way they consume foods in a transformational mechanism structure. For example, smoking has reduced significantly as a result of macro-level influences on individuals and the spread of the ae to other people. The macro-level effect of the change in food consumption is a movement away from foods classified as unhealthy and an inclusion of healthy alternatives such as vegetables and plant-based proteins.

The proposed campaign will follow the same patterns that have largely led to a shift in the demand of healthy products. The pulse-based flour and related products will be packaged and marketed for the eco-conscious consumer, creating an idea of urgency and a need to quickly shift to plant-based, fibre-packed and nutrition-filled, nut-free, low-allergen, low-GI, and gluten-free foods. It is recommended that AustGrains sells the idea of a mandatory change in behavior and lifestyle that will result in both micro and macro level benefits to an individual, the society, and their environment. The pulse-based products will be sold as versatile and sustainable sources of protein that are full of essential vitamins and fibre with low fat and allergens among other benefits. The product will then be packaged as the change that is needed to reduce the rates of chronic ailments resulting from poor feeding habits in Australia. The products will also feature an element of contributing towards sustainable foods for the betterment of the environment. Therefore, AustGrains will not be selling the benefits of the products but showing why a change is needed toward more healthy and sustainable feeding habits.

Stakeholder AnalysisStakeholders include all people and entities that have an interest or contribution to an organization or industry. A number of stakeholders exist and they could help enable or prevent the success of AustGrains in its endeavour to change the way Australians see food in terms of health and sustainability. The main stakeholders include: consumers, environmental groups, food manufacturers, investors, food business, Australian food regulatory and enforcement agencies.

Figure 2: Power/Interest Stakeholder Prioritization Map

Consumers, investors, and the Australian food regulatory and enforcement agencies have high power and high interest. These stakeholders are also decision makers on various levels and have a huge impact on the success of a product or organization. Their expectations must be met without fail. They have the power to create obstacles or success for the product and the brand. Therefore, AustGrains should keep them engaged, meet their needs, and manage closely. Food manufacturers, food businesses, retailers such as Coles and Wesfarmers, and environmental groups have high interest but low power. Their influence is reduced to creating manageable issues. Nonetheless, AustGrains should keep them informed, monitor lightly, and respect their interests, in order to ensure their support. They should be engaged to make sure that no major problems arise.

It is also worth noting that competitors will play a vital role in dictating the success of AustGrains’ Pulse Nutri-Bix. For example, the product will have to battle Kellogg’s Corn Flakes and Sanitarium’s gluten-free Wheetbix option. Such competitors have high stakes in the industry and are likely to influence the direction of the new product through pricing strategies and improvements to their own strategies. With their established markets, they are also likely to explore the pulse-based market. Findings and Conclusion

In the report, marketing principles are applied to AustGrains new product as the firm intends to push the product to different markets across Australia. AustGrains has created a product concept based on several platforms such as eating for wellbeing and health, sustainability, and a combination of such factors that intend to drive the majority of Australians towards better food and diets. However, the main problem that the company faces is that the Australian market has not been very receptive to the new product as expected, preferring other product that have traditional and conventional elements in taste and acceptability. The discussion recommends the targeting of the middle class health-conscious consumers in their early thirties seeking greener food options that address both sustainability and health concerns. The reasoning behind this targeting is that said consumers want food that is not only better for them but also important for the environment. Additionally, the middle class health-conscious consumers, especially those in their early thirties, are targeted because they make up a significant number of employed Australians.

For the product to be accepted in the Australian market, and specifically for the chosen target market made up of middle class health-conscious consumers in their early thirties seeking greener food options that address both sustainability and health concerns, a social mechanisms marketing approach will be most effective. The pulse-based flour and related products will be packaged and marketed for the eco-conscious consumer, creating an idea of urgency and a need to quickly shift to plant-based, fibre-packed and nutrition-filled, nut-free, low-allergen, low-GI, and gluten-free foods. AustGrains will not be selling the benefits of the products but showing why a change is needed toward more healthy and sustainable feeding habits. The main stakeholders include: consumers, environmental groups, food manufacturers, investors, food business, Australian food regulatory and enforcement agencies. The most important stakeholders include consumers, investors, and the Australian food regulatory and enforcement agencies because they have high power and high interest regarding AustGrains.

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