MMK101 Marketing Fundamentals - Assessment Answer

Introduction

Marketing strategy involves developing a long-term plan to provide direction to the company for attaining a competitive edge in the market (Ichsan et al., 2022). This research report highlights some strategic recommendations, based on the findings of primary and secondary research of the market and organization for Boring Oat Milk. In the marketing mix strategies that include product strategy, pricing strategy, place strategy and promotion strategy are being developed as per the expectation of the target customer. The resort is also prepared by considering the outcomes of STP (Segmentation, targeting, and positioning) of Boring Oat Milk.

Target Market, Positioning Strategy and Positioning Statement

Target Market/Consumer Profile

The finding of the STP report states that the target market includes customers of Australia with the age group of 20-30

Differentiation strategy:

The differentiation strategy of Boring Oat Milk emphasizes naturally developed oat milk, every unit purchased contributes to sustainable development as a certain proportion of every unit will be spent on planting, which will ensure greenery and facilitate sustainable development.

Positioning Statement:

The positioning strategy states the differentiation strategy of Boring Oat Milk which is based on naturally developed products that ensure sustainability and quality.

Marketing Strategy Recommendations

Boring Oat Milk is a brand dealing in providing oat milk to ensure sustainability in the supply chain of international marketing and pioneering the ordinary and domestic one (Boring Milk, 2023). The marketing mix strategies of the company will also be focusing on its main objective, which is sustainability and environmental focus. The marketing mix strategy describes the plans for developing the product in its product strategy, the process of deciding the price in its pricing strategy, the medium and channel through which the product will be delivered to the end user in place strategy and the method of communicating the features and benefits of the product to its customer for persuading them to purchase in its promotion strategy. These all strategies are discussed below in terms of Boring Oat Milk.

Product Strategy

Vegan milk involves non-cow milk such as oat and soya milk. The increasing trend of vegan has increased the amount of consumption of vegan products. This rise is also because of an increasing concern of society towards cooperation with nature (Sexton et al., 2022).

Figure 1: The Rise of Vegan and vegetarian lifestyle.

(Source: Greenhouse People, 2018)

To ensure the complete acceptability of the product by the customer, marketers need to make sure that product should possess all those attributes that the consumer desire and want to have.

Figure 2: Reasons for preferring vegan

(Source: BBC, 2018)

In above figure (Figure 2) highlights the reason why consumers are shifting towards veganism and reducing the level of meat consumption. The most prominent reason is the health factors, vegan diet that include oat milk is found to be highly effective in reducing the level of cholesterol (Onning et al., 1999).

The vision of Boring Oat Milk is to deliver the quality and sustainability of their products this marketer must focus on ensuring environmental focus during each process of the product cycle. Also offering health benefits by providing sufficient nutrients in the oat milk so that customers can gain complete satisfaction. Taste is also a reason for the shift of customer from meat-based products to vegan products. In this connection, Boring oat milk has an opportunity to widen the oat milk flavors and product portfolio to cater wide customer base (Boring Milk, 2023).

Pricing Strategy

Pricing Strategy is considered an integral component of the marketing strategy as it enables the creation of revenue (Kienzler et al., 2017). This marks it as a crucial component of the marketing mix. Pricing is a value that a customer pays to procure the product, so it becomes the responsibility of the business to provide a justified value in terms of their product offerings. The pricing strategy must consider multiple associated costs for the business, as it is a medium to recover them. There are also multiple pricing strategies like psychological pricing, premium pricing, economic pricing etc. For Boring Oat Milk competitive pricing will be a suitable strategy as it will enable the recovery of cost and additional margins of the company, also it will help in sustaining the competition.

The price of different competitors in oat milk marketing is mentioned below

Table 1: Price of Oat Milk in Australia

(Source: Codey, 2021)

From the above table (Table 1), it can be observed that the price of oat milk in Australian marketing ranges between $2.5- $ 5. In this connection, it is articulated that Boring Oat Milk also keeps the price of their product in this range to remain competitive in the market.

Distribution and Logistics Strategy

When purchasing the consumer goods like oat milk convenience availability is an important factor in taking a final purchasing decision. It has been observed that the easy accessibility of such products increases the possibilities of purchase and increases consumption. As a result, the supply chain for the oat milk should be well integrated, which directs the flow of goods from the supplier to the end user in less time and cost-effective manner (Trihatmoko et al., 2018). As the company emphasizes natural and environmental concerns it should try to involve environmentally friendly transportation in the supply chain and use green materials in packaging as it will contribute to goal 15 of SDG goals which states the protection, restoration and promotion of sustainable use of terrestrial ecosystems (Gov.UK, 2021).

The oat milk should be made available in small retail stores to supermarkets. It is also available through online platforms.

Integrated Marketing Communications Strategy

An integrated marketing communication strategy provides strategic plans that ensure collaboration and promotion of marketing communication to the targeted audience. It tends to amplify brand marketing campaigns and messages and build a consistent image (Camilleri, 2017). For developing an integrated marketing plan marketer needs to identify different channels of marketing communication. Various channels that Boring Oat Milk can use for its marketing communication include:

1. Content Marketing: It involves marking content available online in the forms of blogs, pop-ups, and video marketing. Boring Oat Milk can share content related to the health benefits of including oat milk in the diet. They can also create contents that tend to justify the advantages of the ingredients in the oat milk they are offering. This will create an impression among customers regarding Boring Oat Milk.
2. Email Marketing: IT is more of a personal form of communication to the targeted audience, it involves targeting customers by sending informative mail through emails. Boring Oak Milk can persuade customers through this marketing communication technique to enroll for their subscription to timely milk delivery (Camilleri, 2017).
3. Social media marketing: It is another tool for marketing communication that involves building a relationship, creating brand awareness, and generating mass traffic on the website by using social media platforms. These platforms include Instagram, Facebook, and Twitter. When all the above-mentioned tools are combined with the social media and digital marketing campaign this can create an exceptional result for the Boring Oat Milk.

The marketing communication plan focused upon the targeted audience which are youth that are health conscious and people who are inclined towards veganism. The communication plan for marketing Boarding Oat Milk should emphasize the company values, the quality and benefits generated by the consumption of oat milk and its impact on the environment.

Marketing Metrics

The marketing metrics provide a quantitative way to measure the performance of marketing efforts (Bendle et al., 2016). They are also used in measuring the effectiveness of marketing campaigns. As per the marketing communication channels plan the metric that can be used to measure the performance are as followed:

1. For measuring the performance of content marketing, the amount of traffic visited the blog, the number of content downloaded or the number of content shared can be the metrics (Amazon, 2023).
2. For e-mail marketing, the number of emails opened and unsubscribed can be used to measure its effectiveness.
3. The number of followers, amount of customer engagement and social impression is the metric that can be used to measure the effectiveness of social media marketing efforts (Amazon, 2023).

Conclusion

The report highlighted different marketing strategies and plans that Boring Oat Milk can include in their marketing plan, to attain an advantage in competitive marketing. As a successful marketing strategy can decide the future of an organisation, the marketer should provide due consideration to all the factors that can adversely affect their marketing strategy implementation and performance.

As a consumer product Boring Oat Milk is operating in a highly competitive market, so the company should implement its marketing strategy while considering the action of its competitor. Moreover, they should keep their differentiation and positioning strategy inclusive to their marketing plan to ensure uniqueness in the competition.

Reference List

Amazon, (2023). The importance of marketing metrics in digital advertising. Retrieved from: <https://advertising.amazon.com/blog/marketing-metrics#:~:text=Marketing%20metrics%20are%20a%20quantifiable,your%20campaign%20on%20audience%20actions.>

BBC (2018).Veganism: Why are vegan diets on the rise? Retrieved from: https://www.bbc.com/news/business-44488051

Bendle, N. T., Farris, P.W., Pfeifer, P. E., & Reibstein, D. J., (2016). Marketing Metrics. (3rd ed.) Retrieved from: https://www.academia.edu/41617497/MARKETING_METRICS_THIRD_EDITION

Boring Milk, (2022). A Boring Report about growing oats in New Zealand. Retrieved from: https://accounts.google.com/b/0/AddMailService

Boring Milk, (2023). Boring. https://boringmilk.com/collections/all

Camilleri, M. A., (2017). Integrated marketing communications. 1(5). Retrieved from: http://dx.doi.org/10.1007/978-3-319-49849-2_5

Codey 2021. Best Oat Milk Australia- The ultimate list compared. Retrieved from: https://plantbasedpurpose.com/best-oat-milk-australia-the-ultimate-list-compared/

Gov.UK. (2021). Implementing the sustainable development goals. Retrieved from: https://www.gov.uk/government/publications/implementing-the-sustainable-development-goals/implementing-the-sustainable-development-goals--2

Ichsan, M., Farida, N., & Listyorini, S. (2022). Marketing strategy, competitive advantage and marketing performance: Study of small medium- Size enterprise at Ancol. 1(3).285-301. Retrieved from: http://dx.doi.org/10.54408/jabter.v1i3.53

Önning, G., Wallmark, A., Persson, M., Åkesson, B., Elmståhl, S., & Öste, R. (1999). Consumption of oat milk for 5 weeks lowers serum cholesterol and LDL cholesterol in free-living men with moderate hypercholesterolemia. Annals of Nutrition and Metabolism, 43(5), 301-309. Retrieved from: https://doi.org/10.1159/000012798

Sexton, A. E., Granett, T. & Lorimer, J. (2022). Vegan food geographies and the rise of Big Veganism. Progress in Human Geography. 46(2). 605-628. Retrieved from: https://doi.org/10.1177/03091325211051021

Trihatmoko, R.A. & Mulyani, R. (2018). Distribution strategy for new product marketing success: Fast Moving Consumer Goods (FMCG) Business. 7(12). Management and Human Resource Research Journal. Retrieved from: https://www.researchgate.net/profile/R-Trihatmoko/publication/330424968_DISTRIBUTION_STRATEGY_FOR_NEW_PRODUCT_MARKETING_SUCCESS_FAST_MOVING_CONSUMER_GOODS_FMCG_BUSINESS/links/5d332a68299bf1995b39eae7/DISTRIBUTION-STRATEGY-FOR-NEW-PRODUCT-MARKETING-SUCCESS-FAST-MOVING-CONSUMER-GOODS-FMCG-BUSINESS.pdf

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