* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download 4.2 Targeting of markets - Assignment Help Australia, Economics
Price discrimination wikipedia , lookup
Digital marketing wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Viral marketing wikipedia , lookup
Pricing strategies wikipedia , lookup
Service parts pricing wikipedia , lookup
Multi-level marketing wikipedia , lookup
Grey market wikipedia , lookup
First-mover advantage wikipedia , lookup
Marketing research wikipedia , lookup
Darknet market wikipedia , lookup
Youth marketing wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Market analysis wikipedia , lookup
Target audience wikipedia , lookup
Direct marketing wikipedia , lookup
Dumping (pricing policy) wikipedia , lookup
Marketing plan wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Market segmentation wikipedia , lookup
Market penetration wikipedia , lookup
Neuromarketing wikipedia , lookup
Perfect competition wikipedia , lookup
Street marketing wikipedia , lookup
Multicultural marketing wikipedia , lookup
Advertising campaign wikipedia , lookup
Product planning wikipedia , lookup
Sensory branding wikipedia , lookup
Target market wikipedia , lookup
Green marketing wikipedia , lookup
Segmenting-targeting-positioning wikipedia , lookup
Marketing channel wikipedia , lookup
Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 Marketing Work Assignment Insert name Institution Tutor Date 1 Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 Executive Summary It is important for firms to conduct an analysis through the use of market research before undertaking any major changes in its business model. As a result of the high competition and change in consumer trends, Sonoma sales and profits have been reducing in the last few months. As a result, the company undertook a market research by analysing the macro environment of the bakery industry in Australia. The analysis helped in identifying various elements facing the industry, as well as the opportunities and threats experienced in the industry. Threats include the high operational costs and the high competition in the industry, while opportunities included the availability of the wide range of products to diversify from as well as the various markets the business can expand to. The various problems that the business is facing include price wars which have driven down the prices of bakery products, inadequate skills to expand into various bakery goods and the high costs of operation. 2 Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 Table of Contents Executive Summary ................................................................................................................................ 1 1.0 Introduction ....................................................................................................................................... 4 2.0 The Macro-marketing Environmental Analysis ................................................................................ 5 2.1 Overview of the Bakery Industry .................................................................................................. 5 2.2 Factors affecting the bakery industry ............................................................................................ 8 2.3 Threats to the bakery Industry .................................................................................................... 12 2.4 Opportunities in the Bakery industry .......................................................................................... 13 3.0 Problem Definition.......................................................................................................................... 15 4.0 Segmentation, Targeting, and Positioning (STP)............................................................................ 17 4.1 Market Segmentation .................................................................................................................. 17 4.2 Targeting of markets ................................................................................................................... 19 4.3 Positioning .................................................................................................................................. 20 5.0 Conclusion and Recommendations ................................................................................................. 21 6.0 References ....................................................................................................................................... 23 3 Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 1.0 Introduction Sonoma bakery outlets sell $7 handmade organic sourdough batards, as well as eat boules which are selling out fast. Over the past few years, the sales have witnessed a 15-20% rise leading to the expansion of the artisan baker to larger premises and open more stores. The store though, is facing competition from the birth of other artisan bakers in addition to the cheap house brand bread sold in leading supermarkets. The company reports that the customers who buy the cheap house brand bread are families, not interested in quality but quantity. Under the competition in the bakery industry, the company has focused on taking the market share from other brands in the shelf of the supermarkets and not from the artisan bakers. However, this has been challenging with the current price wars between supermarkets and private label breads in the market. The supermarkets have lowered the price of bread although Sonoma argues that their market segment has not been affected as their customers focus on quality and are not influenced by prices alone. The following report is an analysis of the macro marketing environment analysis which Sonoma operates from. It also involves a problem definition of the challenges and issues facing Sonoma Bakery in the current business environment. Finally, the report conducts an STP process analysis which involves segmentation, targeting and positioning strategies which Sonoma Bakery can adapt in order to secure their market share. This is followed by a conclusion of the major findings of the report as well as recommendations which firms in the industry can adapt to in order to gain a competitive edge. 4 Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 2.0 The Macro-marketing Environmental Analysis 2.1 Overview of the Bakery Industry Sonoma bakery sells hand made organic sourdough batards and whole-wheat boules in Australia. It operates in the baking industry in Australia. The Australian baking industry is very dynamic and has been undergoing various changes over the last few decades (Euromonitor, 2010). The industry can be categorised into four groups by basing this on their business models. These are the corporate plant bakeries, traditional hot bread shops, the franchised hot bread shops and supermarkets in store bakeries. The following is a diagram illustrating the classification. The corporate plant bakers are those bakers that make baked goods and breads for wholesale delivery, which accounts for the majority production of bread in the market (ABS, 2009). The existing shops for the hot breads consist of carrying out retail activities at the site in addition to the manufacturing activities. They rank second in the market production for the bread. The setting up of franchises for the shops for hot bread shows the tremendous market growth. The 5 Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 franchise shops encounter high competition from the supermarkets which have set up store bakeries for the bread (Christopher, et al., 2002). Trends in the economy The recent economic meltdown has resulted to a trend of consumers groups going home for prepared meals which have occasioned a rise in the rise of packaged bread sales. The private label market has continued to grow over the years, and in 2009, it accounted for a market share of 8%. The supermarket retailers have marketed aggressively for their private label products through the use of price discounting and multi pack promotions, especially, for the packaged bread. The private label is reported to have reached 22% of the total value of sales in 2009. The private label is also stocking fewer labelled brands in the packaged pastries and cakes with their share of sales rising to 52% and 35% respectively (Euromonitor, 2010). Competition among the various onsite operations has been on the rise and this has caused prices of related products to reduce sometimes to levels that are lower than the packaged equivalent of bread bakeries from corporate plant. As a result, the market share of onsite operations has increased while the market share of plant bread has experienced a steady decline. This has led to the corporate plant bakers to diversify. Other than the bread lovers, the bread sector involves a wide range of products (Christopher, et al., 2002). These products include the rolls and buns, flat bread, crumpets, breadcrumbs, speciality bread, buttered bread and English muffins among others. The baked goods have grown by 5% in current value term reaching a$5, 383 in the year 2010. The following is a table illustrating the sale of baked goods by category between 2008 and2010 (Euromonitor, 2010). 6 Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 ‘000 tonnes & A$ million Product 2008 2008 2009 2009 2010 2010 Volume Value Volume Value Volume Value Bread 602.8 $3,057.3 622.3 $3,195.8 639.4 $3,355.8 Bread Substitutes 2.1 $34.9 2.2 $37.4 $39.4 Packaged /Industrial Bread 311.0 $1,504.3 320.3 $1,572.0 328.3 $1,650.6 Unpackaged/Artisanal 289.7 $1,518.1 299.9 $1,586.4 308.9 $1,665.7 Cakes 72.5 $839.7 74.8 $872.1 76.8 $912.5 Packaged/Industrial Cakes 13.7 $125.0 14.0 $128.7 14.2 $131.9 Unpackaged/Artisanal 58.7 $714.8 60.8 $743.3 62.6 $780.5 Pastries 105.0 $1,045.1 108.4 $1,084.3 110.5 $1,115.0 Packaged/Industrial 15.9 $105.3 16.2 $106.9 16.4 $108.3 89.1 $939.8 92.2 $977.4 94.0 $1,006.7 780.3 $4,942.2 805.5 $5,152.2 826.7 2.2 Bread Cakes Pastries Unpackaged/Artisanal Pastries Baked Goods $5,383.3 7 Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 Source: Euro monitor International 2.2 Factors affecting the bakery industry There are a number of factors which affect the business environment of the bakery industry. These include political factors, economic factors, social factors, technological factors, legal factors and environmental issues. The analysis of the macro environmental elements in the industry can be conducted through the use of the PESTLE analysis as analysed below. 2.2.1 Political Analysis and Economic Analysis The political system of Australia has been stable for many years and this creates a good business environment to operate in. Having a stable political system enables the businesses to operate in a good business environment. An unstable political climate threatens business operations and causes the cost of doing business to increase across the entire industry (Bhardwaj, 2007). The economic system in Australia has been stable over the years. However, the country was affected by the global financial crisis and this led to consumers becoming more conscious of the money being spent and greatly reduced the disposable income for many families. This also affected the bakery industry as consumers resulted to purchasing of only the functional products (Jooste, et al., 2007). 2.2.2 Social Analysis There are a number of social trends and elements which affect the bakery industry in Australia. These include the trend of consumers being health conscious as well as the aging population. A misconception among consumers in the 1960s, which linked carbohydrates to increased body weight resulted in a decline in the consumption of bread among consumer particularly those who were concerned about their weight. Since the 1980s, there have been 8 Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 increasing scientific evidence which support the link between a diet and disease. The highfibre whole breads have become accepted and more mainstream, as the association between dietary cancer and bowel fibre has become more recognized (Kotler & Keller, 2006). The balancing between ensuring the quality of bread in terms of texture, colour, consumer, and form as well as the take-in the health concerns is required. In recent time, the market has witnessed a reduction in sodium levels, and an increase in fibre content in bread; this is in addition to maintaining partially hydro carbonated fat contents and low saturated fat. The rapid advancements in technology has caused the salt content to be lowered to 400mg/100g and even lower, which is not feasible without change in consumers preference where the sugar contents permits a low sodium content, which can be around 380mg/100g of flat un-leavened breads (Eisingerich & Bell, 2007). The levels of access to information and knowledge about health and diet have increased in the society. Consumers are increasingly becoming health conscious and are recognizing the role of health conscious consumption and attaining optimal health. Consumers are increasingly taking a greater personal responsibility of individual and family health by purchasing more nutritious products, which are heavily reliant on the information about the products. However, research illustrates that individual respond to gradual receptions, whereby, the impact of taste is not very obvious (Jooste, et al., 2007). Another social trend which is affecting the bakery industry is the aging Australian population with an increased level of self funded retirees. Further, as a result of the global financial crisis and its effects of disposable income, retirement savings among others have affected the bakery industry at major levels. As a result of the aging population, individuals are very focused on eating healthy and nutritious foods and as such a need for the industry to promote 9 Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 production of health bread. Further, individuals are faced with a lower level of disposable income and this means that they are opting for more functional goods and products (Euromonitor, 2010). As such, there is a need for the bakery industry to undertake a functional form of marketing and production of functional bakery products (Kotler, 2002). 2.2.3 Technological Analysis After the WWII, there were high technological changes such as automation of many processes. The technological changes resulted in the development of quality control and fully automated bakery plants. As a result, small bakeries were unable to fully compete with large bakery plants. The advancement in technology has resulted in the rapid reduction in production times, which is facilitated through the introduction of rapid dough process. For instance, the CBS-Systems ERP solution is a program whereby bakeries can manage all their business activities on a high level and acquire competitive advantages by optimisation of the various business processes. The following is an illustration of a bakery using the CBNSSystem ERP in its bakery. (CBS, 2014) 10 Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 The Bread Research Institute came up with an approach to lower the preparation time for dough; this process was referred to as the rapid dough process and it involved the use of additives to enhance oxidation. The processing techniques in addition to packaging led to bread staying fresh for numerous days and as such raising its shelf life. The utilization of the pre-mixed flours, dough and automated equipments and enabled bread manufacturers to specialize and compete with large producers, in addition to allowing for a continuous supply of bread (Bhardwaj, 2007). Furthermore, the online stores, whereby, consumers can purchase their baked goods have increased over the years. The overseas market for baked products has increased in recent times, especially in the speciality lines. For instance, the overseas market for Christmas cakes and wedding cakes has increased exponentially. This provides a new area of competition of the bakery industry (Bhardwaj, 2007). 2.2.4 Legal Analysis In the Australian business environment, the infrastructure costs are high especially in terms of the high rent in the shopping centres. The high costs of conducting business pose a threat to the industry. The rental and legislation tenancy agreements which dictated opening and closing times have a huge impact on the baking industry. The operating hours in large shopping centres, especially, on public holidays are usually combined with penalty rates. Further, the consumer regulations concerning the administrative workload create challenges to the small bakeries because of increase in prices. The autonomous retail bakeries also encounter issues of the increasing operational overheads, which include the increase in the 11 Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 workers minimum wage and inadequate suitable sites from the slowdown in the development of shopping centre (Christopher, et al., 2002). 2.2.5 Environmental Analysis There is an increased public outcry for efficiency and sustainability in the production process. This has led to firms focusing and making consideration on various environmental issues, for instance energy efficiency. In the bakery industry, there has been an increased focus on energy efficiency and reductions in the green house gas emissions. In the year 2003, a project was undertaken to establish and how to use a bakery Mascot in demonstrating the energy efficiency of a best practise for bakeries. The project illustrated a 32% saving in the energy costs annually, as well as a 48% reduction in green house emissions annually. The project illustrated such best practice elements such as refrigerator, oven efficiency and hot water supply, and environmental practices such as minimisation of waste, renewable energy sources, and water conservation (Ries & Trout, 2006). 2.3 Threats to the bakery Industry Human resource personnel in the bakery industry consists of workers who do not have sufficient skills and this has an effect on the diversification efforts in the industry as well as efforts to gain a competitive advantage over the imported goods. The labour costs include the penalty rates costs for the holidays and the extraordinary hourly provisions are also a challenge to the industry. This is amidst commonality prices which remain stable as a result of the promotional and price discounting activities which are aggressively used by both the branded manufactures and the private brand retailers. As such the commodity prices in the industry cannot be increased from the high costs of the production process (Christopher, et al., 2002). 12 Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 The products price war in the market, especially, among major supermarkets poses a significant threat to the industry. The price war among the various retailers in the industry poses a significant threat on competition in the industry. For instance, the price war has resulted in the decrease in level autonomous retail bakeries who in 2009 had maintained dominance with 64% of the market share. The wars in the prices have led to a drastic reduction in the market share held by the retail bakers operating independently; this had led to a reduction in their sales volumes. The independent bakeries operate under reduced profit margins, and the reduction in sales across the industry would result in many retail bakeries going out of business (Kotler & Keller, 2006). Another challenge to the industry is that it focuses primarily on the domestic market with the sales from the exports having less than 1% of the turnover in the industry. In the 2001-02 exports, bread and its related products were valued at $4.9 million. The perishable natures of the bread products, as well as economies of scale and logistics are the main threats to the industry. However, frozen dough as well as pre-baked products is emerging as an export opportunity especially to the Asian markets (Euromonitor, 2010). From the period between 1997-1998, there has been a yearly increase of 31% in the value attributed to the exports. 2.4 Opportunities in the Bakery industry Despite the threats facing the bakery industry, there are a number of opportunities for growth. First with the advancement in technology and the wide use of the internet, firms in the bakery industry can diversify their markets to include having online stores, whereby, consumers can order products from their websites and the products are delivered to their homes. This will greatly reduce their costs for such elements as distribution and also meet the current trends in consumer ship, whereby, consumers are leaning towards online purchases (ABS, 2009). 13 Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 Related products include the frozen products such as cakes, pastries, breads and pizzas. The following is graph showing varied products in the frozen products category. As Further, the bakery products provide an extensive range of bread and its related products which firms can diversify to. These range from the various types of breads, different types of cakes and different types of muffins among others. The firms can also venture into exporting of bakery products to various markets. For instance, the Asian market provides an opportunity to expert certain bakery products and half cooked dough among others (Eisingerich & Bell, 2007). An area with opportunity is the frozen product category with the current global market share growing steadily and expected to rise over the next few years. The frozen products can be exported as well as utilised domestically and as such an area of growth for Sonoma (Euromonitor, 2012). The following figure illustrates the global market for frozen products. 14 Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 3.0 Problem Definition Sonoma, as evident in the introductions focuses on selling handmade organic sourdough batards and whole-wheat boules. The company operates in the bakery industry in Australia. As illustrated in the macro environmental analysis, the industry is very competitive with various sections of the market offering diversified products and services. This has led to firms such as Sonoma to rethink their marketing strategy and evaluate a new way of doing things so as to be able to remain competitive in the market (Kotler, 2002). The challenges facing the firm includes inadequate bakery skills to diversify into a wide range of bakery products, structural challenges with regards to the high cost of operations, the price wars from the major supermarkets leading to low priced bakery products in the market and the threat of focusing on one form of market (Ball, et al., 2004). In the past few years, the supermarkets operating in the country have engaged in price wars which have forced the prices of bakery products to reduce significantly. The price wars by the majority supermarkets also pose a threat to the baking industry. The raging wars with regard to the market prices affect the independent bakers negatively, in a field that they had dominated up to the year 2009, with a market share quoted at 64%. These raging price wars 15 Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 based on price for bread by the leading supermarket stores has led to a sales reduction in many of the bakeries who operate retail stores. There is likelihood for many of the independent retails stores for bakeries being run out of the market as the sales go down due to the low profit margins (Kotler & Keller, 2006). For instance, Woolworth’s price cuts from 15% to 85% and the other major supermarkets swiftly followed suit. This price cut together with the onsite bakery at the stores has led to the supermarkets taking a huge market share in the market (Bhardwaj, 2007). ). The price producer indexes in Australia for 2014 are shown in Appendix 2. There is also intense competition that the company encounters from the mushrooming artisan bakers. The artisan bakers are offering the same products both in price and quality and thus posing a direct competition for the company. The Sonoma bakery has a business model which focus on customers who value quality over other elements such as price. As such they have focused on producing high quality products which they sell to clients who love value for their money and are just not looking to feed their families. This has allowed the company to continue being competitive over the years as the consumer trends illustrates a change to buying more nutritious and healthy foods despite the prices of these products been high. As such, the company has been able to compete successfully with the cheap house brand bread, which was sold in major supermarkets such as Woolworths, Aldi, and Coles. However, the rise of other artisan bakers practicing a similar business model is also significant. This has led to the company looking to rethink its strategy and develop a strategy which will secure its competitiveness (Euromonitor, 2010). 16 Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 The figure above indicates the proportion of bread exported products from Australia to the world. http://grdc.com.au/Research-and-Development/GRDC-Update-Papers/2011/04/What-the-worldwants-from-Australian-wheat-what-our-customers-are-telling-us Another problem facing the company is the focus on one single market. In order to be competitive it is crucial for a company to diversify its market. This can only be done by understanding its market and understanding the needs of the consumers. With the high competition various firms in the bakery industry, it is thus important for Sonoma bakery to conduct an intensive market research and develop a new business model which will secure its productivity (Buchanan, 2007). 4.0 Segmentation, Targeting, and Positioning (STP) 4.1 Market Segmentation Market segmentation refers to the categorisation of the market into distinct group of customers who have identical needs and product, in addition to service requirements. Market segmentation has the objective of consolidating the scarce resources and gains a competitive advantage. Through segmentation, the elements of the marketing mix are designed so as to fulfil the needs of the numerous markets segments. There are two approaches which can be 17 Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 undertaken when segmenting markets. The first is the breakdown method which adopts the position that the market involves customers who are essentially the same, and as such involves identifying groups who share particular differences. The second method is recognized as the built-up method which argues that the markets involve customers who are all have varying needs and as such the task is to recognize the similarities. The break-down method is the most widely used approach (Bhardwaj, 2007). Through segmentation, a profile criterion is applicable and it involves an analysis of the demographics encompassing age, gender as well as social economics. This is based on the levels of income and the classes held in the society as well as the physical location. The psychological approach is another criterial used to classify the segments attributable to the consumer markets through the consumer attitudes and perceptions. This was also penned on the gains that the customers got from their products and brands of choice. The other aspect is the behavioural approach to segmentation which encompasses the usage and purchase of the products as well as the product possession. (Appendix 1 is a representation of the consumer consumption trends in Australia for the year 2014). There are a variety of strategies applicable for market segmentation in the bakery industry (Eisingerich & Bell, 2007) 18 Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 The image above indicates an overview of the bakery market in Australia. http://www.roymorgan.com/findings/5853-who-will-win-bread-wars-201410072253 4.2 Targeting of markets The second section of the STP process is the targeting of markets which entails targeting the different segments that have been undertaken. Once a market is identified, the firm need to select an approach to target its market segments. There are different marketing approaches which can be undertaken. These include differentiated, undifferentiated, and concentrated customised target marketing approaches. Undifferentiated approach involves perceiving the market as a single mass-market with only one marketing strategy being adopted for the entire market (Kotler, et al., 2008). A differentiated targeting approach entails realizing that there are numerous markets segments and as such a different marketing strategy is conceived for each segment. A concentrated marketing approach concentrates on a few strategies and market segments. A customised targeting strategy focuses on each customer. Sonoma should utilise a differentiated targeting markets for its various market segments (Jooste, et al., 2007). 19 Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 4.3 Positioning Positioning refers to the means by which the products can be differentiated from one another in order to provide a reason for the customers to buy. It involves the physical attributes and the second on the brand and development of a brand for the customers. Positioning involves providing the product offered to the market. There are a number of positioning and repositioning strategies which the company can use for its products. In re-positioning for instance, Sonoma can change the way the product was communicated to the original market. It can also involve changing the target market and delivering the same product to the market. Further, both the market and the target market can be changed. For instance, Sonoma can change its products to biscuits and also change the market to providing the products to various distribution channels such as ones based supermarkets and other shops (Buchanan, 2007). The image above indicates how Sonoma differentiates its products to fit the cookie market segment.http://www.starkinsider.com/2011/10/sonoma-find-moustache-baked-goodspumpkin-whoopie-pies.html 20 Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 5.0 Conclusion and Recommendations In conclusion, the analysis on the macro environment of the bakery industry and the problem identification helped the firm in identifying opportunities for growth and the threats facing the industry. The STP process will also be instrumental and assist in developing a marketing strategy for the firm. Marketing objectives should be derived from the corporate objectives. It is important for the market to develop marketing strategy which is guided by the business environment facing the firm as well as the marketing strategies (Macintosh, 2009). An integrated approach must be followed through the utilisation of segmentation, targeting, and positioning commonly referred to as STP approach. The technological advancement and arrival of the internet led to opportunities for new business models. Companies and firms with large and profitable segments have had to re-evaluate their approach. Further, business facing challenges in the markets with the increased competition also needed to revaluate the approach and develop a business model which would utilise the business opportunities available (Buchanan, 2007). The rise in the application of the STP process has been necessitated by the persuasive nature of the markets that are already mature, and the diversification of the consumer needs. This is anchored by the capacity of a company to foray into the specialised markets. In order to recognize new product opportunities, it is essential to extend suitable communication and positioning strategies and how to effectively allocate resources to the key marketing activities (Kotler & Keller, 2006). Due to the challenges facing Sonoma in the bakery industry in Australia, there is a need for the organisation to commission for segmentation Research needs to be done to enable them to re-scope their marketing strategy. The company operates in a highly dynamic environment and as such, the research should be a continuous process with regular intervals to ensure that 21 Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 the company keeps in touch with the various changes in the market. STP refers to three capacities which involve segmentation, targeting, and positioning (Ries & Trout, 2006). The benefits of Sonoma conducting the STP process entails enhancing the competitive position of the company by offering focus and direction of the marketing strategies, which includes new brand differentiation, product development, in addition to targeted advertising. Additionally, the company will be in a position to recognise the prospects for growth in the market through targeting the new customers as well as the market segments with growth potential and new users (Eisingerich & Bell, 2007). 22 Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 6.0 References Anderson, J.C. & Narus, J.A. (1990), “A model of distributor firm and manufacturer firm working partnerships”, Journal of Marketing, vol.54, no.1, p. 42–58. (ABS) Australian Bureau of Statistics, (2009), Apparent Consumption of Foodstuffs, Australia, cat. no. 4306.0, ABS, Canberra. Ball, D., Coelho, P.S., Machás, A. (2004) "The role of communication and trust in explaining customer loyalty: An extension to the ECSI model", European Journal of Marketing, Vol. 38 No.: 9/10, p.1272–93 Bauer, H.H., Grether, M. & Leach, M. (2002), “Building customer relations over the internet”, Journal of Industrial Marketing Management, vol.31, no.2, p. 155–163. Bhardwaj, D. (2007), “Relationship Marketing in Context to the IT Industry”. The Journal of Business Perspective, vol.11, no.2, p.57- 66. Bloemer, J., de Ruyter, K. and Wetzels, M. (1999), “Linking perceived service quality and service loyalty: a multi-dimensional perspectives”, Journal of Marketing, Vol. 33 No. 4, p.1082-106. Blomqvist, R., Dahl, J. and Haeger, T. (1993), “Relationship Marketing: Strategy and Methods for Service Competition”, IHM Forlag, Goteborg. Calonius, H. (1988). “A Buying Process Model. In: Innovative Marketing—A European Perspective”. Blois and S. Parkinson, Editors, Proceedings from the XVII Annual Conference of the European Marketing Academy, University of Bradford, England 23 Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 CBS, (2014), CSB-System ERP Solution for the Bread and Bakery Industry http://www.csb.com/us/us/industries/food/bread_and_bakery.1183.html Chen, Z.X., Shi, Y. & Dong, D.-H. (2008) An empirical study of relationship quality in a service setting: a Chinese case. Marketing Intelligence & Planning, vol.26, no.1, p.11–25 Christopher, M., Payne, A., & Ballantyne, D. (2002). “Relationship Marketing. Creating Stakeholder Value”. Butterworth-Heinemann.. Coote, L.V., Forrest, E.J. & Tam, T.W. (2003), “An investigation into commitment in nonWestern industrial marketing relationships”. Industrial Marketing Management, 32, 7, p. 595–604. De Wulf, K., Gaby Odekerken-Schröder,G., and Iacobucci,D. (2001), “Investments in Consumer Relationships: A Cross-Country and Cross-Industry Exploration.” Journal of Marketing, vol.65, no.4 p.33–50. Eisingerich, A.B. & Bell, S.J. (2007), “Maintaining customer relationships in high credence services.” Journal of Services Marketing, vol.21, no.4, p. 253–262. Euromonitor (2010), Packaged Food in Australia, Chapter 6 Bakery products, Euromonitor Fournier, S., Dobscha, S and Glen Mick, D (1998), “Preventing the premature death of relationship marketing” Harvard Business Review, p.42-51 Garbarino, E. & Johnson, M.S. (1999), “The different roles of satisfaction, trust and commitment in customer relationships. Journal of Marketing, v.63, no.2, p. 70–87. 24 Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 Gruen, T.W.., J.O. Summers and F. Acito (2000), “Relationship Marketing Activities, Commitment, and Membership Behaviours in Professional Associations”, Journal of Marketing, Vol.64, p.34-49 Gummesson, E. (1997), “Relationship marketing as a paradigm shift: some conclusions from the 30R approach”, Management Decisions, vol.35, no.4, p.267-272 Hackney, D. (2000), “Business intelligence technology and tools for CRM”, in Proceedings of DCI Customer Relationship Management Conference, Boston, MA, 27-29 June Huczynski A. A. and Buchanan, D.A. (2007), “Organizational Behaviour (Sixth edition)”, FT Prentice Hall. Jooste, C.J., Strydom, J.W., Berndt, A. and Du Plessis, P.J. (2009). Applied Strategic Marketing. 3th Edition. Johannesburg: Heinemann Publishers (Pty) Ltd. Kotler, P. and Keller, K.L. (2006). Marketing Management, 12th Edition. Upper Saddle River, New Jersey: Prentice Hall. Kotler, P. (2002). Marketing Management, 11th Edition. Upper Saddle River, New Jersey: Prentice Hall. Kotler, P., Armstrong, G., Wong V., and Saunders, J. (2008), “Principles of Marketing. Fifth European Edition”. FT Prentice Hall. Lacey, R. & Morgan, R.M. (2007), “Committed customers as strategic marketing resources”. Journal of Relationship Marketing, vol.6, no.2, p.51–65. 25 Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 Liang, C.-J., Wang, W.-H. & Farquhar, J.D. (2009), “The influence of customer perceptions on financial performance in financial services”. International Journal of Bank Marketing, vol.27, no.2, p.129–149. Macintosh, G. (2009), “Examining the antecedents of trust and rapport in services: discovering new interrelationships.” Journal of Retailing and Consumer Services, vol.16, no.4, p.298–305. Massey, G.R. & Dawes, P.L. (2007), “Personal characteristics, trust, conflict, and effectiveness in marketing/sales working relationships.” European Journal of Marketing, vol.41, no.9/10, p.1117–1145. Moorman, C., Deshpande´, R. and Zaltman, G. (1993), “Relationship Between Providers and Users of Market Research: The Role of Personal Trust”, Marketing Science Institute, Cambridge, MA. Moorman, C., Zaltman, G. and Deshpande (1992) “Relationship between providers and users of Market Research: The Dynamics of Trust Within and Between Organizations”, Journal of Marketing Research, 29 (August), p.314-328 Oliver, R.L. (1999), “Whence consumer loyalty?” Journal of Marketing, Vol. 63, p.33-44. Palmatier, R.W., Dant, R.P., Grewal, D. and Evans, K.R. (2006) “Factors Influencing the Effectiveness of Relationship Marketing: A Meta-analysis” Journal of Marketing, vol.70 (Oct.), p.136–53 Palmer, A. J. (1996) "Relationship marketing: a universal paradigm or management fad?” Learning Organization, Vol. 3 no.3, p.18 – 25 26 Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 Rapp, S. and Collins, T. (1990). “The Great Marketing Turnaround”. Englewood Cliffs, NJ: Prentice Hall. Reichheld, F.E. and Sasser, W.E. Jr (1990), “Jr Zero defections: Quality comes to service”, Harvard Business Review, Vol. 68, p.105-11. Rigby, D. K., Reichheld, F. F., and Schefter, P (2002) “Avoid the Four Perils of CRM,” Harvard Business Review, February, vol.80, no.2, p.101-109. Ries, A., and Trout, J. (2006), Positioning: The Battle for your Mind, London: McGraw-Hill Professional. Schiffman, L.G. and Kanuk, L.L. (2004). Consumer Behaviour, 8th Edition. New York: Prentice Hall. Sheth, J.N. (2002) “Evolving relationship marketing into a discipline”, Journal of Relationship Marketing, Vol.1, No.1, p.3-16 Sheth, J.N. & Parvatiyar, A. (1995) “The evolution of relationship marketing”, International Business Review, vol.4, no.4, p.397–418. Sirdeshmukh, D., Singh, J., and Sabol, B. (2002), “Consumer trust, value, and loyalty in relational exchanges”. Journal of Marketing. Vol.66, p.15-37. Sweeny, J. and Webb, D. (2002). “Relationship Benefits: An Exploration of Buyer-Supplier Dyads” Journal of Relationship Marketing, Vol.1, no.2 March, p.77 – 91 27 Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 Thurau, T.H., Gwinner, K.P., Gremler, D.D. (2002), "Understanding relationship marketing outcomes: An Integration of Relational Benefits and Relationship Quality” Journal of Service Research, February, vol. 4 no. 3 p.230-247 Zeithaml, V.A, (1988), “Consumer perceptions of price, quality, and value: a means-end model and synthesis of evidence”, Journal of Marketing vol.52, no.3, p.2–22. Appendices Appendix 1: Consumer consumption trends in Australia 2014. 28 Visit www.universityassignmenthelp.com.au E-Mail – info@ universityassignmenthelp.com.au Call/WhatsApp - +61 478 793 640 Appendix 2: Price Producer indexes for Australia in 2014. 29