darrell lea sandun samarakoon hannah rowe. media brief market analysis product analysis target...
TRANSCRIPT
Darrell Lea
Sandun Samarakoon
Hannah Rowe
Media Brief
Market Analysis
Product Analysis
Target Audience Analysis
Autobiography
Day in the Life
Pictography
The Darrell Lea product range has undergone several changes
Place of purchase – from speciality stores to over 4300 stores (include Woolworths, Coles, IGA, SPA and pharmacies, newsagencies and post offices)
Logo and packaging has changed to compete in these new places
Product deletions and new products introduced.
Product range will be launched in November 2013Media budget $3.5 million
Darrell Lea
The Darrell Lea range is now accessible for all Australians as an everyday purchase, not only for occasion purchasing
National market
Darrell Lea
The Australian confectionery manufacturing industry has remained strong despite the recession, increasing commodity prices and import competition. The industry has received an annual growth of 2.3%. (Sivasailam, 2013) This stability might attract international confectionary producers, introducing new products and brands.
There is a high market share concentration due to acquisitions and growth among the major companies. Kraft Foods, Nestle and Mars generate the most revenue. (Kulliney, 2012)
64% of Australians consider themselves to be overweight, and 82% are actively trying to lose weight by changing their diet (Nielsen Global Survey, 2012). There is a demand for tasty sugar free confectionery (Ireland, 2013)
Market Analysis
Strengths Reputation. Well known Australian company, long
history Brand Equity Weakness The brand is relaunched, has been out of the
consumers mind for a while. New place of purchase Relatively low media budget compared to
competitors
SWOT Analysis
Opportunities New product range Freedom - no previous media mandatories
Threats Mature and competitive industry Rising costs of production (Research and markets ltd,
2009) Competitors have considerably larger media budgets
(AQX data)
SWOT Analysis
Political Industry wide voluntary front of pack labelling (FED, 2012) New requirements set by Food Standards Australia New
Zealand (Rethink on food fat-free labelling, 2012)Economic Rising commodity costs. A number of companies to close
or scale down their Australian manufacturing operations due to increasing commodity costs. (Research and markets ltd, 2009)
Demand from supermarkets and grocery stores (Sivasailam, 2013)
PEST Analysis
Social Obesity pandemic Health consciousness, chocolate is considered to
be unhealthy
Technological factors New flavouring processes and methods. For
example Lindt has explored flavours such as sea salt, wasabi, black garlic and camel milk chocolate. (Australian Industry Group, 2013)
PEST Analysis
It is a growing industry with a high market share concentration, and the competitors have larger media budgets which put Darrell Lea at an disadvantage. The product is re-launched in a new place of purchase in a time where consumers are more conscious of their health. The new packages and the Darrell Lea name will provide an advantage over competitors products.
What this means for Darrell lea
The retail price is higher than competitors. All Darrell Lea products are made in Australia. Little advertising has been undertaken previously. Originally a seasonal product, now it is to be purchased throughout the year. Consumers grew up with the Darrell Lea brand, but are unaware that they are now available in grocery stores. (Darrell Lea Confectionery, n.d) The products are distributed in over 4000 outlets across Australia.
Product Analysis
The increase of health conscious consumers has made competitors be innovative with their product lines and adapt them to changing consumer trends.
Competitors
Cadbury FavouritesFavourites would become the perfect solution to that timeless social dilemma: what to take as a gift to someone else's casual get-together
Targeted outdoor, near and around supermarkets, and radio to catch mothers close to the decision-making moment. This was supported by online activity to further spread awareness of the new brand platform (Ward & Simpson, 2012)
Choc on ChocChocolates are handmade using a unique layering and moulding process. Communicated the brand ideals visually by using hand-crafted elements in the package, including a hand-tooled font and hand-tied chocolate-coloured ribbon.
New retail listings such as Selfridges and Harrods in the UK and international catalogue listings (Warc, 2012)
What competitors are doing
Mondelez International total 23 235000/month Lindt & Sprungli Aust P/L Total 3 396 000/month Mars Snackfoods Total $9 806 000/month
Darrell Lea total $115 000/month
These are the top three competitors with the highest market share and media spend. (AQX, 2013)
How much are they spending on media?
What media are they using?
Assortments Monthly Media Spend by Competitors
Metropolitan Tele-vision
Regional Television
Metropolitan Press Regional PressMagazines Metropolitan RadioOnline CinemaOut of Home
Block Chocolate Monthly Media Spend by Compet-
itors Metropolitan Tele-vision
Regional Television
Metropolitan Press Regional PressMagazines Metropolitan RadioOnline CinemaOut of Home
(AQX, 2013)
When are they advertising?
(AQX, 2013)
Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-120
1000
2000
3000
4000
5000
6000
7000
8000
Block Chocolate Total $Childrens Products Total $Confectionery-Corporate Total $Sugar Confectionery Total $Seasonal Lines Total $Mints Total $Chewing Gums Total $Assortments Total $
Metropolitan television is the media vehicle that is used the most by competitors
Media spend regularly throughout the year, with chocolate assortments peaking during summer months and block chocolates during winter
The target audience is the group that usually buys the groceries (V% 100, ix 153).The product is used by both the target audience and their family. (Darrell Lea Confectionery, n.d.) The products are to be positioned as a repeat purchase item.
84% The TA tends to snack during the day (V% 60.7, ix 152) on confectionery items,
They are more health conscious, and lead a full and busy life (V% 81.5) (Roy Morgan Single
Source Data, 2013)
Target Audience Analysis
Aged 25-49 Employed part time (ix 202) Usually buys groceries Has children U18 (V% 92.3, ix 315) Income $70 000-$250 000+ Mean Income $137 500
(Roy Morgan Single Source Data, 2013)
Demographics
0-2 Years3-5 Years 6-8 Years 9-11 Years 12-15 Years 16-17 Years
Children’s age distribution
Target Audience Geographic Data
Darwin - Alice Springs
Tasmania
Western Australia
South Australia
Queensland
Victoria
N.S.W. incl. ACT
Capital CitiesCountry Areas58.4%41.6%
(Roy Morgan Single Source Data, 2013)
Use the Internet (V% 100, ix 110) Read magazines (V% 73.7) Listen to commercial radio 1-3hrs day (V%
64.7)
(Roy Morgan Single Source Data, 2013)
What media do they use?
Went to a supermarket 97.60%Visited friends/relatives 91.30%Used a computer at home 90.20%Went to a department store 81.10%Went to a clothing store or boutique 81.00%Went to a newsagent 75.30%Entertained friends/relatives 73.30%
What activities do they undertake?
(Roy Morgan Single Source Data, 2013)
44 % (ix 200) would consider doing grocery shopping online. The target audience are comfortable conducting transactions on the internet. 57.3% regularly paid their bills and 56.7% conducted banking transactions online.
This could be since the TA are time poor, and these online activities save time.
Online Activities
My name is Helen. I am 36 years old and I have 2 children. I lead a busy life looking after my family and working part time and I am always looking at ways to save time. I like to unwind by curling up on the couch to read a magazine. We are currently paying off our home and have plans to invest in property in the future. My families health and well being is very important to me. I try and lead a healthy lifestyle but I do occasionally indulge myself with something unhealthy.
Autobiography
6am
9am
10am
12pm
2pm
3pm
5pm
6pm
8pm
11pm
Helen’s Week Day
Wake up/Shower/Chores/get kids ready for school
Drop kids off at school/ listen to radio/ billboards
Work/surf the web/ read emails
Lunch/walk
Work
Collect kids from school
Dinner
Sleep
unwind/read a magazine
Yoga/Pilates
7am
9am
2pm
3pm6pm
8pm
10pm
Helen’s Week End
Sleep in/ make breakfast for family
Visit park with family
lunch with friends
Grocery Shopping
Sun Night at homeWatching TV or DVD/Video
Dinner
Sleep
unwind/read a magazine
Pictography
Family
Shopping
The target audience are health conscious, time poor and want to provide the best for their family so they view confectionery that they purchase as a guilty pleasure.
Insight
An analysis of the confectionery market in Australia, including forecasts to 2011, leading company profiles & market segmentation. (2008). Business Wire. Retrieved from http://search.proquest.com/docview/444465776?accountid=13380
Australian Industry Group. (2013, June) Confectionery Industry News. Retrieved from: http://www.aigroup.com.au
Confectionery News. (2013) Mars to Expand Maltesers plant in Australia. Retrieved from : http://www.confectionerynews.com/Manufacturers/Mars-to-expand-Maltesers-plant-in- Australia%20
Darrell Lea Confectionery. (n.d.). In Facebook [Page]. Retrieved 31/08/2013, from https://www.facebook.com/DarrellLeaChocolates
FED: Food regulator could ban fat-free labels. (2012, Feb 17). AAP Finance News Wire.
Ireland, T. (2013). Australian-owned confectionery offers a Sugar-Free treat without the nasties. Media Connections. Retrieved from: http://mediaconnections.com.au/australian- owned-confectionery-offers-a-sugar-free-treat-without-the-nasties/
Kulliney, K. (2012, 4 June). Tasty innovation ensures resilience in cash strapped, health conscious Australia. Confectionary News. Retrieved from: http://www.confectionerynews.com/Markets/Tasty-innovation-ensures-resilience-in-cash- strapped-health-conscious-Australia
Nielburg, O. (2013, 22 August). Analysis: Where is confectionery production moving? Confectionery News. Retreived from: http://www.confectionerynews.com/Markets/Analysis-Where-is- confectionery- production-moving?nocount
Research and markets ltd.; the Q1 2009 independent forecasts and competitive intelligence on australia's food and drink industry. (2009). Food Business Week, ,150. Retrieved from http://search.proquest.com/docview/203666069?accountid=13380
Rethink on food fat-free labelling. (2012, Feb 18). The Mercury. Retrieved from http://search.proquest.com/docview/921865914?accountid=13380
Sivasailam, N. (2013). IBISWorld Industry Report C1182. Chocolate and Confectionery Manufacturing in Australia. Retrieved 26 August 2013. retrieved from IBISWorld database
Warc (2012, May). Gain Customers (Chocolate). Retrieved from the Warc Database.
Ward, T., Simpson, M., (2012) Cadbury Favourites: Thinking outside the chocolate box. Retrieved from the Warc Database.