Case Study: Arnott’s Emporio Marketing Strategy Essay

EXECUTIVE SUMMARY The Australian cracker and crispbread market was worth $245.4 million in June of 20031. With the Australian biscuit market accounting for about $100million annually. Arnotts Biscuits controls approximately 56% of this market2. Where over the past few years, has seen to an increase in demand of premium quality biscuits. The Emporio range of cafà © style biscuits were first launched by Arnotts in January 2001 to meet this increase in demand for a high quality biscuit to emulate the cafà © lifestyle at home. By June 2003, the Emporio brand of biscuits was expected to be worth over $10million dollars to the Arnotts corporation3. The following will aim to provide an analysis of the Emporio Brand, highlighting the target market along with the various marketing strategies used by the brand. TARGET MARKET Originally the Emporio brand was marketed as a cafà © selection range of gourmet biscuits, to be enjoyed on special occasions. The brand was targeting a niche high-class market, to illustrate prestige and quality. The target audience included successful women over 30. However, the product was repositioned in the middle of 2003, with various campaigns to target a different market. In order to successfully implement these changes, a business must first segment its market, in order to clearly identify the demands of the potential customers. Segmentation can occur through aspects of: Geographic location The selection of Emporios is available nation wide, with over 95% of supermarkets accepting the product4. However, particular attention is paid to particular regions, such as highly populated metropolitan areas, where the range and quantity of products are greater. Demography The targeted age has not differed from the original positioning of the product, however, particular attention is given to attract males, as well as maintaining the strong relation with women. This is achieved via adapting and introducing new lines. Emporio remain a premium biscuit, and thus are tailored to the â€Å"white collar† professions, with medium to high income. Psychograph Through changes in the lifestyles of this demography, a new more casual trend of entertaining has emerged, for which purpose this product is been portrayed. Behavior The Emporio brand has kept with tradition of providing an image of supreme quality and prestige, however, one, which can be, now enjoyed daily. MARKETING STRATEGIES Product It is important to identify the product at different levels; at the core the product is a biscuit to be consumed with coffee. This core product is  surrounded by another level of identification, which allows the Emporio brand to be recognized as one of quality. This is the actual product where different styles of the original Emporio, combine with the quality and brand recognition of Arnotts. The success of Emporio can be enjoyed, due to its successfully implementation of positioning strategies, where an immediate image of value and quality was assigned with the Emporio name. A combination of positioning strategies was used include: Positioning by benefits and quality – where the different range of biscuits always insured that ingredients very used of the highest quality and at they’re freshest. Positioning by price – people often associated a product’s price with its quality. Emporio’s ranges of biscuits are a premium biscuit far expense than others available on supermarket shelves, reinforcing it as a quality product. Positioning by usage occasion – in its earlier marketing, the biscuit was shown as an occasional product. Through repositioning the biscuit provides a separate range, for â€Å"daily indulgence†. Packaging for the Emporio brand has been recognized as an important determined in its success by Arnott’s vice president of brand management Peter West. Packaging was â€Å"instrumental in ensuring the welcome, and positioning the brand†, he says5. The Emporio range is packaged to be recognized as a superior biscuit, which resemble cafà © quality biscuits, via its individual packaging of each biscuit. The packaging also shows clearly with vivid colours and pictures of the type of biscuit used to distinguish between other competitors. Price Emporio also implements a range of pricing policies. To represent high quality and distinguish itself from other ranges of biscuits it implements  price points; along with price and quality interactions. Where customers believe a higher price can be associated with better quality. Since Emporio’s remain an exclusive product, a relatively high price can be changed in order to maximize profits, market skimming. Promotion The Emporio brand has employed numerous advertising methods to create awareness, and ultimately induce convection to purchase their product. The use of nation wide television advertisements in 2003, to reposition the brand has seen a come back in late 2004. Combined with regular advertisement in respected food, and fashion magazines. Television: The television ads portrays the target market of success businessmen and women in post of lawyers, secretaries, and other executive roles enjoying a relaxing â€Å"treat† with their coffee, whist singing the jingle. The brand has also made use of ‘below the line’ promotion techniques, free sampling and point-of-purchase displays. Product sampling has mostly occurred to encourage other styles of the Emporio biscuit via online grocers. Place Emporio Biscuits are able to use the Arnotts brand and worth to gain access to direct channels, where the product is distributed to metropolitan areas, along with shopping centers across the nation. The distribution of the brand is intensive, where the product is available at all possible supermarkets. With over 95% of national supermarkets embracing the product. Rosemary Ryan, â€Å"Arnott’s Emporio biscuit makes a savoury move†, B&T,HYPERLINK â€Å"http://www.bandt.com.au/news/ac/0c0175ac.asp† http://www.bandt.com.au/news/ac/0c0175ac.asp, viewed on 18 May 2005. Ed Weiss, â€Å"Australia†, Biscuit World,HYPERLINK â€Å"http://www.biscuitonline.com/index.jsp?page=article&magazineID=4&articleID=107† http://www.biscuitonline.com/index.jsp?page=article&magazineID=4&articleID=107, viewed on 18 May 2005. Unknown, â€Å"Secrets of success: products that win†, B&T,HYPERLINK â€Å"http://www.bandt.com.au/news/d2/0c0058d2.asp† http://www.bandt.com.au/news/d2/0c0058d2.asp, viewed on 18 May 2005. Unknown, â€Å"Secrets of success: products that win†, B&T,HYPERLINK â€Å"http://www.bandt.com.au/news/d2/0c0058d2.asp† http://www.bandt.com.au/news/d2/0c0058d2.asp, viewed on 18 May 2005 Unknown, â€Å"Secrets of success: products that win†, B&T,HYPERLINK â€Å"http://www.bandt.com.au/news/d2/0c0058d2.asp† http://www.bandt.com.au/news/d2/0c0058d2.asp, viewed on 18 May 2005