Marketing Strategies - Breakfast Cereals in Australia
Introduction
Healthy Co. Pty Ltd is a food processing organisation located in Queensland, Australia. ‘Nutri Mix’ breakfast cereal is the product developed by the company for this market and it’s focused on nutrition and healthy life choices. The initial research was focused on six local macro-environment factors that could potentially impact the product. The factors in favour of marketing such a product on the Australian market reside in an aging population as proportion of total population, forcing the government to focus on nutrition as a means to slow down health care expenses (IGR, 2004); the local market being a stable and developed one; the country’s technological development enabling advanced marketing and logistics techniques; and an increased concern for 21st century nutrition trends, pointing to an alarming growth rate of child obesity. Between 1985 and 1995 the child obesity grey almost 50% in both genders (Parliament of Australia, 2006)
Target market
Demographic segmentation refers to the process of dividing the market into groups based on variables such as age, gender, income, occupation, education, religion, race, nationality, family size, etc.
Age is an important demographic variable for ‘Nutri Mix’ as the product will target certain segments that are more likely to consume healthy food products. The logic behind using age as a segmentation variable is the fact the consumer needs and wants change as they grow older and marketers need to design products, packages and promotions to meet these needs and wants. The healthy breakfast cereal product will focus more on children – 3 to 12 years old and senior adults – above 65 years old. The children segment is chosen due to the parents’ increased concern regarding child obesity in Australia, whereas the senior segment is chosen due the government’s increased concern for growing health care expenses generated by an aging population and a shrinking taxation base generated by a slow down in natality rates.
Healthy Co. Pty Ltd is a food processing organisation located in Queensland, Australia. ‘Nutri Mix’ breakfast cereal is the product developed by the company for this market and it’s focused on nutrition and healthy life choices. The initial research was focused on six local macro-environment factors that could potentially impact the product. The factors in favour of marketing such a product on the Australian market reside in an aging population as proportion of total population, forcing the government to focus on nutrition as a means to slow down health care expenses (IGR, 2004); the local market being a stable and developed one; the country’s technological development enabling advanced marketing and logistics techniques; and an increased concern for 21st century nutrition trends, pointing to an alarming growth rate of child obesity. Between 1985 and 1995 the child obesity grey almost 50% in both genders (Parliament of Australia, 2006)
Target market
Demographic segmentation refers to the process of dividing the market into groups based on variables such as age, gender, income, occupation, education, religion, race, nationality, family size, etc.
Age is an important demographic variable for ‘Nutri Mix’ as the product will target certain segments that are more likely to consume healthy food products. The logic behind using age as a segmentation variable is the fact the consumer needs and wants change as they grow older and marketers need to design products, packages and promotions to meet these needs and wants. The healthy breakfast cereal product will focus more on children – 3 to 12 years old and senior adults – above 65 years old. The children segment is chosen due to the parents’ increased concern regarding child obesity in Australia, whereas the senior segment is chosen due the government’s increased concern for growing health care expenses generated by an aging population and a shrinking taxation base generated by a slow down in natality rates.