470G Bega smooth peanut Butter case study

Introduction and Company Background

1.1 Introduction

High quality products, ranging from cheese to condiments, the Bega Group supplies it all. Some of the more popular items from the Bega Group, include peanut butter, vegemite and their vast variety of cheese. This report will conduct an analysis of the current situation of Bega smooth peanut butter 470g from the Bega Group. Following this, three reccomendations will be developed for an upcoming advertising campaign.

1.2 Company Background

Founded, 15th of July 1899 in Australia, the Bega Group created a diversified food and drink company with current manufacturing sites in New South Wales, Queensland, Victoria and Western Australia. Bega’s products are now exported around the world, available in most supermarkets and general stores. It is reported that Bega is responsible for over 500 employees and 20% of their overall production is exported to over 50 countries, showing the huge reach the Bega Group really has. According to the Sydney Morning Herald, the Bega Group is reportedly worth 1.1 billion dollars and is one of the leading players in the Australian stock market food manufacturing sector. Bega Group uses market factors such as purchasing behaviour, financial stability and age, relasing different products which target these niche markets, greatly differentiating itself from competitors. Furthermore, the effective placing and concentrated distribution of Bega products within stores such as Woolworths, Coles and IGA creates an increase of market demand and a great visual marketing strategy.

2.0 Background and Situational Analysis

2.1 Industry Analysis

Provide an overview of the Size, Growth or Decline, Opportunities and Trends in the “market/industry” in Australia. Back up all points with a citation with ideas from your research of the facts and stats from Passport, IBIS World, Company 360 and other quality Reports / Website like Roy Morgan and ABS.

Firstly, you should gather information on the industry as a whole. For example:

• What is the size of the industry in Australia?
• What are recent trends in the industry?
• What is the industry potential? E.g. Growth rate, industry life cycle, etc.
• Any information about the industry that could be useful for your decision-making

The bega group falls into two industries, these including the dairy and food processing industry. As Bega has expanded to retail stores it also falls under the retail and food service industry. However, as this report is focusing on Bega’s smooth peanut butter the industry this report will be focusing on is ‘sweet spreads’. The sweet spreads industry in Australia has a high demand, with consistent demand for niche gourment spreads. The increase of plant based products, gluten free products, nut free, dairy free products, low calories and sugar products and overall healthy alternatives to every product, creates several trends within the industry. Human being’s health needs are ever changing which creates an ever growing need for the food processing industry.

2.2 Competitor Analysis

Now you need to determine who are the main competitors in the industry. For example:

• Who are the key players?
• What are their points of similarity and difference? You can create a table on this too.
• How do the main competitors differentiate themselves in the marketplace?
• What are the most common forms of the main competitors’ communication strategies e.g. TV, magazine, in-store promotions, etc.?
• What are the most common forms of Advertising Approaches among the main competitors? Include images of how they advertise and what channels they mostly use.
• Make a large vertical table with only max 3 competitors per page (i.e.: you might like to have 2 tables with 2-3 in each
• Put the first column as the brand / product itself then create 5 others for a mix of direct and indirect competitors

The Bega Group has several key competitors, some of these being nescquick and A2 Milk. However, this section will prominently focus on the key competitors for Bega’s smooth peanut butter 475g. Some key competitors to consider are: Mayvers smooth peanut butter 375g, Lotus biscoff 400g, Ferraro Nutella 400g and Capilano Pure Honey 500g.

2.3 Consumer Analysis

Now you need to provide a description of the consumer market associated with the product category. For example:

• Who are they? (e.g. their demographic, psychographic, geographic and behavioural characteristics)
• What are the issues facing consumers of this product category?
• What are the factors important to consumers when making the purchase/consumption decisions in this market?
• Are they influenced by others? Do they make the purchases themselves?
• Are there particular consumer needs not being met in the current marketplace?
• Try to research on Roy Morgan and look at consumer trend reports on issues with your category e.g.: single use plastics, eco-friendly, health-conscious consumers etc.
• Additionally, create a Mood Board and insert say 3-10 pictures that represent the consumer persona (e.g.: Shows age, gender, reference group, interests and activities, style of clothes etc) – Google some example mood boards.

3.0 Advertising and Creative Strategies Campaign Analysis and Opportunities

3.1 Advertising and Creative Strategies Campaign Analysis

This section should include the following points:

• Strengths and weaknesses of the current Major Advertising and Creative Strategies Campaign of your chosen company and the likely outcomes of this approach.
• The focus of the current Major Advertising and Creative Strategies Campaign and the company’s profitability because of this approach.

4.0 Recommendations and Conclusion

4.1 Recommendations – Explanation of action/solution to address the issue related to the stakeholder via recommendations (Major Advertising and Creative Strategies Campaign)

• THREE recommendations (Major Advertising and Creative Strategies Campaign).
• Please provide justifications for each recommendation using the analysis of market opportunities.
• Please also analyse the costs and benefits associated with the THREE recommendations.
• Please support your arguments with research-based evidence from business and academic sources where appropriate

Further instructions on your recommendations:

Provide suggestions for what key actions are to be implemented from your analysis of the Company and Brand.

• Recommendations should be actionable and implementable suggestions you have made because of your analysis.
• Creatively Brainstorm what things you and your team will need to do moving forward?
• Do not use first person – Please write in third person like the rest of your report
• Please ensure you back up some of your ideas with sources to affirm the suggested outcomes – use some sources from in your paper already like Passport or Journals etc on a few points if possible
• Maybe some multi-citing at the end of each sentence from a few sources you have used above as well as maybe some new ones to affirm these ideas with literature
• Feel free to use some headings and/or dot points if needed but ensure you have a few meaningful long sentences around each recommendation.
• Potentially have 3 longer recommendations or 5 shorter ones but have at least 4-6 sentences min on each recommendation.
• Feel free to include any ideas you think are workable for the business to reposition in assignment 3 - Campaign

Please note that the focus of this assignment is to develop three recommendations for Major Advertising and Creative Strategies Campaign. This assignment allows for some strategic management analysis to inform implementation. However, the key focus is on the Advertising and Creative Strategies aspects and development of Advertising strategies for the chosen company as you move into Ass 3.