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Bisc&Co.
Its breakfast on-the-go

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BM: Marketing Management Andrea Aiello. Heidrun Reigstad. Juho Marva. Roman Sevostyanov. Susanne vre.

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Executive summary!

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This report focuses on the introduction of the new product: Bisc&Co. into the UK biscuit market. The research paper analyses critical factors in implementing the introduction of the new product in an already saturated market.! Mandatory research analysis of the market portrays that people in the UK have a overgrowing need for quicker and healthier on the go breakfasts.! The objective of this report is to understand where the gap is, within the biscuit market and full it through the use of a product easy to handle, healthy and cheap.! The report will underline that the gap, found through research in various reports such as Mintel and Key Note, is concerned with the change in lifestyle of modern families, with a more on-the-go lifestyle; we dened this particular segment as: parents on-the-go. The segment is outlined as a result of changing in the environmental factors, forcing parents to have less time in morning to consume a proper breakfast in preference to their childrens wellbeing.! The solution is then, according to the analysiss results: Bisc&Co.:its breakfast on the go. This is an innovative product that fuses biscuits with milk in a single container. This enables parents to consume a proper breakfast despite their busy lifestyle.! The paper includes analysis on the gap, segmentation and marketing mix to better understand our nal product proposal. Also the paper presents information about the market and the major brands within it, to better underline how these brands ultimately left a gap behind, exploitable by our new product.!

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Table of Contents!

Analysis of the Biscuit market!..........................................................................................5! Volume & Value !...........................................................................................................5! Competitor Analysis!.....................................................................................................6! Brands Performance:! .....................................................................................................8! Advertising Expenditure! ..............................................................................................12! Distribution!................................................................................................................14! Price! 15! Market trends:!............................................................................................................16! Political:!..................................................................................................................16! Economic:! ................................................................................................................16! Social trends:! ...........................................................................................................18! Technology:! .............................................................................................................18! Environment:!...........................................................................................................19! Legal:!......................................................................................................................19! Gap analysis!..................................................................................................................20! Filling the gap.! ............................................................................................................21! Potential for a new brands!..........................................................................................21! Marketing Mix!............................................................................................................24! Product! .......................................................................................................................26! Brand name:!............................................................................................................27! Packaging:! ...............................................................................................................27! Product Positioning:!................................................................................................28! Brand positioning: !..................................................................................................30! Distribution!................................................................................................................32! Price! 34! Communication mix: Advertising strategy.! ..................................................................35! Message!.....................................................................................................................36! Communication channels ! ........................................................................................36!

References:!....................................................................................................................38! Appendix! .......................................................................................................................40! Factors to be considered when choosing sweet biscuits!..............................................41! Distribution!................................................................................................................41! Price! 42! Market trends!.............................................................................................................44! Types of sweet biscuits consumed!..............................................................................44! The Williams family! .....................................................................................................45! Bisc&Co!......................................................................................................................46!

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Analysis of the Biscuit market!
Volume & Value !
The biscuits market has increased sales in the past four years despite healthier consumer behaviour and the economic crisis in Europe, a"ecting the market. From 2007 to 2011 the biscuit sector grew by 29.2%1. In 2011 the market value increased by 6.5%
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to an estimated value of 2.33bn. In 2010 the packets of biscuits sold, in UK, were approximately 141 million2.!
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Table 1: The UK Market for Biscuits and Cakes by Value (m at rsp) (Mintel report 2011)!

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Key Note market report 2012, Biscuits and Cakes, page: 18 J Stainsbury PLC 2011

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Table 2: PLC curve for the UK biscuit market. (Keynote 2011)!

The biscuit market in UK is relatively mature. Although the market size has increased; growth has varied substantially3. Competition between brands in the UK biscuit market
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is high and brands try to discover a competitive edge by launching new healthier, onthe-go biscuits. This is done in accordance with the current modern consumer lifestyle. There is little room for innovation in the market, and companies are increasingly renewing already existing brands with new recipes4.!
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Competitor Analysis! The biscuit market in UK is mature with many own brands and large multinationals competing against each other. According to Mintel (2012); biscuit companies compete
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Key Note report plus 2011, Biscuits and Cakes, page: 5 Key Note report plus 2011, Biscuits and Cakes, page: 5

on di"erent levels, but mainly with snack and chocolate products. The larger companies in the market are: United Biscuits, Nestl, Kraft Foods and Kellogg's5. The companies
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have a wider amount of well established brands and sub-brands. The majority of these companies have been present on the UK market for a long period of time.! Own-labels are also signicant players in the market; being cheaper and more accustomed to the name of large, already successful, companies for example: Tescos Digestive biscuits; they manage to acquire a signicant share in the biscuit market. Their success is often given by maintaining the same taste as major specialised brands. They are mostly purchased by price sensitive customers. ! As portrayed by Table 3, the leading specialised brands only have 33% of the relative brand share for sweet biscuits. The table shows that others and own-label have 68% of the segment sales. This is a result of number of players in the market6.!
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5 # # 6

Mintel reports: UK April 2012 Companies and Products Mintel report: UK April 2012 Market share

! Table 3: Leading brands shares in sweet biscuits, 20117!


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Brands Performance:! To comprehend how major companies in the biscuit market have performed in the past two years it is necessary to analyse the total revenue from sales, reported in their annual nancial statement. All companies, but one, in 2010 and 2011 have increased their total sales within their biscuits segment of the business. The only underachiever was Nestl, as their revenue from sales decreased massively. All the data is provided in millions of pounds even if, some of these companies are quoted on foreign markets with di"erent currencies; thus for the sake of the research the revenue from sales have been

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Mintel report: UK April 2012 Market share, Figure 38: Leading brands shares in sweet biscuits, 2011

calculated with a proposed exchange rate as from the day the nancial statements were analysed 8.!
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Table 4: Independent Brand Performance in total sales revenue!

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Segmentation!
The biscuits market in the UK is broad and diverse, with many di"erent brands targeting a wide range of the market. The complexity in consumers preferences can be link to the consumers spending habits and general lifestyle. Trends show that spending habits are changing as a result of the economic crisis that the market is facing; also the inuence of healthier products introduced to the market, as part of a political campaign against obesity, has mutated consumer needs and response to sweet biscuits9.!
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Exchange rate from 18th of November 2012 - 1=$1.58, 1=CHF1.502


Key Note report plus 2011, Biscuits and Cakes, page: 6

According to Key Note (2011) the typical consumers of biscuits, in UK, are most likely to be women, aged 35-44, belonging to social grade C2 and B. Their family lifecycle is described as Full Nest 2. This segment involves women who buy low-fat sweet biscuits, rye crackers and savoury biscuits assortments10. Furthermore, the biscuit market is
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segmented by: occasions for eating sweet biscuits; the table below illustrates the target groups.!
Table 5: Most Popular occasions for eating sweet bisuits, by type, January 2012.** Low response rate (75-100)11
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Snaking at home, having a biscuit with a drink, and eating at work (college/university) are the most popular occasions for eating biscuits. Taking into consideration the age of consumers, which fall into these three categories, it is possible to positioning these occasions on a perceptual map, as an indication of the most saturated part of the market (Table 6). It is noticeable that the target market for biscuits is wide in terms of age; yet, the market size allows variations in terms of occasions or other factors like taste, price, convenience to eat, size of the package, etc.12 (see Appendix 1 - factors to
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be considered when choosing sweet biscuits).!

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Mintel report: UK April 2012 Consumer Usage

Mintel report: UK April 2012 Occasions for Eating Biscuits and Crackers, Figure 68: Occasions for eating sweet biscuits, January 2012
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Mintel report: UK April 2011 Factors Inuencing Snacking Habits

! Table 6: Perceptual map of the current biscuits market13!


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Mintel report: UK April 2012 Occasions for Eating Biscuits and Crackers

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Advertising Expenditure! Advertising expenditure decreased from 2010 to 2011 by 2 %. The money spent on ads for the biscuit market is noticeably higher than ads for competing markets such as crisps, nuts and snacks or cereal14. The main advertising channel for biscuits brand
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promotion has been TV.15!


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Table 7: Mintel report, Biscuits, Cookies and Crackers UK, 2012! As showed in the Table 6, Kraft Food has increased their funds in marketing by spending over 6 million in advertisement. According to Mintel (2012) the three major biscuit manufacturer reduced advertisement expenditures in 2011; Kraft Foods, United Biscuits and Kelloggs. However Nestle increased their advertising expenditure on biscuits signicantly, by 1.5 million, when launching their new biscuit brand Aero Biscuit probably to increase the sales revenue16.!
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Mintel report: UK April 2012 Total adspend stays at Mintel report: UK April 2012 Total adspend stays at Mintel report: UK April 2012 Biscuit giants reduce ad spend

Table 8:$Advertising expenditure in the biscuits, cookies and crackers market, by highest spending brands, 2007-11)! 2011 Kraft Foods United Biscuits Nestl Kelloggs A/S RATIO 0.16% 0.16% 0.24% 0.09%

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Table 9: A/S Ratio of major brands taken into consideration.! Advertising expenditures for these companies are marginal expenditures; this is because, according to the calculation, it can be said that Kelloggs is in a leading position when comparing advertising to revenue. ! In the beginning of 2012 companies have continued to invest in advertising, for example; United Biscuits expects to generate 30 million in sales from its Quirks brand by 2015, by launching 3 million Special campaign for the younger consumer segment17. !
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17 #

Joseph (2012)

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Distribution!
Customers tend to buy biscuits through the following channels of distribution:! % Grocery retailers (mini/super/hyper-market)! % Independent (small local shops)! % Internet! % Caf/restaurant! % Public canteen! % Train/tube/bus stations, airports, gas stations18.!
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Buying biscuits in Grocery Retailers is the rst choice for consumers19. Large packages
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are stored in the shelves and singe-items, more likely to be among other on-the-go snacks, are near by the checkout stations. Also, the growing range of single-item packages has led to an increase in displaying biscuits with other ready to eat items20.
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Supermarkets can stock large amounts of products, which fulls the need of all consumer-shopping habits21. According to Key Note (2011) Tesco, ASDA, Sainsburys
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and Morrison accounted for 76.1% of all grocery sales in as of November 2010 (see Appendix 2 for overview of retailers). However, other channels of distribution may have signicant potential due to their convenience. Having located a point of sales at a location with high ow of people, seller can ensure constant purchases of the lower

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Key Note report plus 2011, Biscuits and Cakes, page: 26 Key Note report plus 2011, Biscuits and Cakes, page: 26 Key Note report plus 2011, Biscuits and Cakes, page: 26 Key Note report plus 2011, Biscuits and Cakes, page: 26

volumes of biscuits. Also, the location of the selling point seems to have little e"ect on customers choice in terms of price. !

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Price!
Biscuit market in UK can be described as well established; in terms of price. The table presented in Appendix 3 represents a sample of the biscuit production. Being that not all biscuits are priced the same, the prices per 100g where calculated as: 48p/100gr22.
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The price di"erence between the cheapest and the most expensive products in the sample is quite low at 15%23. Due to the decrease in growth in 2009, the biscuit market
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has experienced a larger level of discounting and promotional o"ers which has caused the consumers to become less brand loyal, taking advantage of cheaper deals instead24. This has led to a decrease in the average price of biscuits, making the
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manufactures compete strongly on price to win customers loyalty back25. Also,


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consumers on a budget, got greater access to premium and branded products causing the price range in between major brands and own brands to become closer26. !
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See Appendix 4 Summarised, popular biscuit production and prices.


mySupermarket groceries 2012, Plain Biscuits in Tesco Key Note report plus 2011, Biscuits and Cakes, page: 13. Key Note report plus 2011, Biscuits and Cakes, page: 13. Key Note report plus 2011, Biscuits and Cakes, page: 13.

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Market trends:!
PESTEL-analysis identies trends in environment. These trends reect both consumer habits as well as internal aspects for biscuit manufactures.!

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Political:!

In 2011 The Guardian reported that: UK Prime Minister David Cameron is ready to consider a fat tax to tackle Britains increasing obesity level. Cameron stated that a similar idea was already implemented in Denmark thus the UK should consider it as well27. On May 2012 the British Medical Journal, unveiled a research where taxes for
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unhealthy food and drinks would have to be at least 20% to have any real e"ect on obesity and heart disease28. !
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Economic:!

Consumer behaviour is changing because of the economic crisis and this reects their spending habits29. More consumers tend to prepare their meals at home and bring their
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own lunchboxes to work30. Individually wrapped packages and mini sharing formats is a
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result of such changing behaviour31. Biscuit manufacturers have increased their retail
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Press Association, 2011. UK could introduce fat tax, says David Cameron. British Medical journal, 2012. 20% fat tax needed to improve population health. Key Note report plus 2011, Biscuits and Cakes, page: 1 Key Note report plus 2011, Biscuits and Cakes, page: 3 Key Note report plus 2011, Biscuits and Cakes, page: 1

prices in 2011, although sugar prices have remained steady over the last three years, as a result of wheat costs increasing32.!
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Mintel report: UK April 2012 Broader market environment

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Social trends:!

Consumers are getting more concerned about ingredients contained in food; therefore, the market (manufacturers) customises and adapts to customers needs by o"ering healthier options33. The packaging, on the biscuit bars, contains information about the
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ingredients and the benets the products contains. However, Mintel (2012) reports: 20% of all adults bought sweets and chocolate in January 2012, which is an improvement from 14% in January 201134. According to Mintel (2012), in 2011,77% of adults where
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snacking in between meals. This a"ects British consumption habits massively making the British population prone to buying more biscuits. ! Brands are struggling to change the customers perception about healthier biscuits, as the consumers regard sweet biscuits as indulgent snacks (see Appendix 4)35.!
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Technology:!

Major brands understand the importance of research into the development of new recipes nutritionally fullling for consumers requirements; an example of such development may be presented by Kraft Foods; Kraft established a: Centre of Excellence at their Bourneville factory, which includes innovative labs, a new pilot plant facility and a collaboration kitchen or else a creative space for the experimentation of new ideas. !

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Key Note report 2012, Biscuits and Cakes, page: 4 Mintel report: UK April 2012 Internal market environment Mintel report: UK April 2012 Internal market environment

Environment:!

In order to stay competitive and add value to products, companies in the food market are trying to carry out environmentally friendly operations. These may include the following:! % % % % % % Reducing carbon emissions ! Eliminating waste to landll ! Reducing water use! Driving environmentally friendly transport! Sustainable sourcing ! Reducing packaging and recycling biscuit wrappers!

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Legal:!

Selling biscuits involves a wide number of legal obligations and other risks such as e.g. product contamination, spoilage, product tampering, allergens, or other adulteration. Companies in the biscuits market are legally obliged in their own interest as well as the customers to recall products that have become tainted or damaged during the process of transportation from the factory to the retailer/wholesaler. The costs of a signicant product recall can be associated with lost sales and bad customer perception. In order to meet customers needs with allergies, a growing percentage of hypoallergenic biscuits are available in the market36. A signicant product liability judgment against
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biscuits producers could also result in losses. Negative publicity could adversely a"ect

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Key Note report 2012, Biscuits and Cakes, page: 4

the reputation of brands even if a legal claim is meritless, does not prevail or is not pursued37.!
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Gap analysis!

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The gap is a result of the changing trends in the environment and the change in consumer behaviour in recent years. According to Key Note (2011), 57% of parents in the UK skip breakfast38, due to lack of time or willingness to prepare food in the
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morning. The preference of a frugal cereal bar or pack of biscuits, instead of a proper full breakfast, is often a common choice. Even though government acts and public awareness campaigns stress the fact that breakfast is the most important meal of the day, several people tend to skip breakfast. Due to a chaotic lifestyle, where breakfast is skipped and lunch usually tends to be fast-food or binge eating products, the UK population is due to reach a 60% obesity level by 206039.The demand for healthier
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products has increased exponentially due to customers becoming more aware about having a healthy diet40. This has also led to an increase in demand for miniature, lower
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calories products41. !
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Kelloggss 2011 Annual Report Key Note report 2011, Breakfast Cereals, page: 3

Government O&ce for Science,2007


Key Note report plus 2011, Biscuits and Cakes, page: 3 Key Note report plus 2011, Biscuits and Cakes, page: 5

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Filling the gap.!

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The gap can be lled by o"ering an alternative to a proper breakfast. This must include a high nutritional value: in order to resist until lunch time, be convenient to carry around and take very little time to prepare and eat. The gap is going to ll the sweet biscuits segment which contains a wide range of products to tend to all consumers needs (see Appendix 5). Currently, the market is experiencing a large introduction of healthy biscuits, in order to obviate the glum prediction on obesity increases predicted by the UK Government O&cer for Science (2007). Since this is becoming a growing trend, the new product o"ered must be both healthy and convenient to eat during the morning, as well as while travelling. The objective is to nd a solution to the customers breakfast problem.!

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Potential for a new brands!
Entry into the UK biscuit market is complicated by the presence of the major brands with a large variety of biscuit brands42. The biscuit market has little room for innovation; a
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factor which may reduce the possibility for a new brand to enter the market. The most feasible strategy for a new product would be to incorporate into a brand already wellestablished in the market; in order to use all of its already successful, distribution and promotion channels. !

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Mintel report: UK April 2012 Market Size and Forecast

Target Market!

The perceptual map of the current biscuits market, portrayed in part 1, outlined the most popular occasion for eating biscuits. However, the trends in the environment create opportunities to attract new segments, as illustrated in Table 9.!

! Table 9: Potential gap in the market!

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The target market has an active lifestyle, where they eat biscuits as a breakfast or/and while travelling. These consumers are mainly families, where both parents are working, have low income and buy convenience products. Due to the market size, other factors also needs to be taken into consideration, such as; taste, price, convenience to eat, size of the package, etc.!

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Potential Competitors! Potential competitors are any own brand or regular brand that o"ers a healthy breakfast meal which is convenient to bring on the go. Potential competitors within this segment are any own-brand or regular brand that o"er biscuits that appeals to the same target market selected. ! The only way to surpass competitors would be to achieve a unique selling point, through creating a product di&culty to imitate and market the product as a full breakfast, onthe-go, easy to eat and o"ered at an average price. Belvita Breakfast biscuits43 and
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Kellogg Nutrigrain Biscuits44 are the most likely competitors. Their products are healthy
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and satisfy the daily need of bres and vitamins. The biscuits are marketed as a proper breakfast, but yet they cannot be compared as a full, proper breakfast since they are implying the need to purchase a separate product, such as milk, to complement the breakfast.!

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Belvita Breakfast 2012, Belvita Breakfast Biscuits Kelloggs 2012 - nutrigrain biscuits

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Marketing Mix! The next section will be focusing on the marketing mix and the four Ps; product, price, promotion and place.! Target customer! After segmenting the biscuit market in UK, a new segment can be identied or else: people who eats biscuits while travelling and as a part of a breakfast meal. A market consists of customers with di"erent needs and preferences. Customers will respond di"erent on any o"er, which is why the customers must be divided in target segments with similar characteristics45. The new target group is called: parents on-the-go. !
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Meet the Williams family:! The Williams are a London family of four, with children aged six and nine; both parents are aged 35, are fulltime workers with a stable nancial position belonging to social grade C.! As illustrated in Appendix 6, the family has a busy lifestyle, especially during mornings. Mum and dad wake up at 6.30am, take a shower, dress themselves and their children. Just before 7.15am, Mrs. Williams start to prepare breakfast and lunchboxes for the children. In the meantime Mr. Williams feed the cat before running out the door to catch the bus toward the train station that will eventually lead him to work. Mrs. Williams` workplace is close to their house thus, she may take the car since she needs to drive the children to school. Back at home, while the children eat breakfast, the six year old boy spills his cereals on the oor; Mom starts to clean up in order for the boy to nish his

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Jobber (2010) page: 261

breakfast and be ready to go to school. At 8.00am, the children are at school and Mrs. Williams is on her way to work. ! After a long day at school and work, Mrs. Williams drives to the supermarket to shop for groceries. Mr. Williams, in the meantime, is cooking dinner. Mrs. Williams is in a hurry, so she can get back before dinner is served; this forces her to rush through the store; sleep shopping.! As illustrated, the Williams family has a hectic morning; therefore the parents often skip breakfast in order to make sure their children go to school with an appropriate meal.! It is important to understand how the Williams choice criteria are used when selecting a product or service46. When the Williams parents are evaluating di"erent fast moving
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consumer goods, low involvement is needed and the most important criteria is price, taste and performance of the products: in fewer words how convenient the product is47.
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Due to their buying behaviour and personal experience, the Williams are less inuenced by advertising and therefore, most of their decisions are based on emotions making them prone to brand loyalty48. !
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The new product is going to full the need for nutrition in the morning or while travelling. Customers do not buy products: they buy benets to full their needs. The core benet of the new product is a full caloric intake needed for a breakfast, with a

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Jobber (2010) page: 129 Jobber (2010) page: 115 and 118 Jobber (2010) page: 128

tasteful avour, which will give a feeling of fullness. This need can be described in Maslows pyramid as a basic/physiological need, as biscuits are food. Furthermore, the new product is going to full Esteem Needs, which relates to the consumers prestige and feeling of accomplishment, due to the feeling of eating healthy.!

! Table 10: Maslows Hierarchy of Needs!

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Product! The objective is to nd a solution to the customers breakfast problem. The core product is the convenience of having a full breakfast all in one container, with the combination of healthy biscuits and fresh milk. The main feature of this product is such combination, also it must satisfy the nutritional needed as well as easy to carry around. The quality of the product should be higher than the average own-brands, due to the

increasing awareness of health related issues; also it should be user friendly to avoid confusion during usage. !

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Brand name:! The new brand is going to be called Bisc&Co. The brand name is enjoyable, and relates to the format name of business partnership. It can be seen as a partnership between biscuits and milk, to create a convenient combination. The brand name leaves room for diversication with di"erent complementary products or biscuits to target diverse segments of the market. An example could be: chocolate biscuits with chocolate milk. ! The slogan is Bisc&Co: its breakfast on the go. The name comprises the slogan of the product for a more direct impact with the consumers perception.!

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Packaging:! Bisc&Co. has to be seen as enjoyable and interesting; also it must be perceived as a neutral product that may be brought to the work place. The packaging colour should comprise visually appealing primary colours such as: red, yellow and blue, (Appendix 7 illustrates a proposed prototype drawing for the product), which reects both the biscuits and feeling towards a grown up segment. The packaging should portray associations with pleasure and a feeling of exclusiveness, so that customers can enjoy a proper breakfast. ! The format of Bisc&Co. is a cubic carton, large as the palm of a hand: in order to improve handling. The design comprises two sections for biscuits and milk. The left part

contains biscuits and the right part milk. The package can be divided into two parts, making it convenient to be enjoyed separately. Bisc&Co. contains a standard glass of milk, or 275ml; which is considered an appropriate intake for breakfast. The biscuits are concealed in plastic wrap within the box and are served in ve separate pieces. Bisc&Co. will be produced in with a plastic resistant material, in order to avoid damage from impacts. Also it should be easily recyclable. ! Product Positioning:! Major players in the biscuits, market have all attempted to introduce various subbranded products in the recent years. Bisc&Co is supposed to extend the number of positioning options. The examples of these range extensions are presented in the table below49:!
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Brand

Product Limited-edition Dark Chocolate variant of biscuits Biscuit with a chocolate-lled centre

Claimed positioning Indulgent avour combination Appealing to younger consumers Upmarket and indulgent version, treat for special occasions Increased chocolate content for chocolate-lovers Tapping into consumer interest in sharing bags Better avour combination

UB

Bite-sized biscuits, priced at 1.99 Biscuit range with more chocolate content and updated packaging Sharing bags for existing products

Product features layers of milk chocolate and white chocolate on a biscuit centre Cadbury
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Mintel report :UK April 2012 - Companies and Products section

Cadbury Limited-edition Halloween range Biscuits with a layer of marsh mellow and chocolate topping Highlighting holiday season mood Lunchbox Treat with slashed price to encourage trial

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Table 11: Possible product positioning for UB and Cadbury.! Considering the market gap analysis, the product positioning of the competitors can point out the key product features that are going to play a major role in gaining competitive advantage. These features include increased indulgence, better taste, portability of a single pack, convenience to eat on-the-go and healthiness. Although traditional biscuits are still easier to share, this does not create any signicant threat to the intended Bisc&Co positioning (Table 12). What the customer gets is a reasonably priced and balanced combination of indulgence and decent daily nutrition in a convenient package.!

! Table 12: Factors inuencing product positioning! Brand positioning: ! The brand position for Bisc&Co is to create a new, unique position, in the marketplace; Bisc&Co. will try to achieve a top-of-mind position. The brand is going to be positioned as brand asset; this takes into consideration the perception of the features such as image, slogan and price50. Bisc&Co is going to create an image in peoples mind where,
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Bisc&Co, is perceived to be adaptable to peoples busy lifestyle, whilst o"ering a healthy option with quality certication51. This must apply to the target customers emotional
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bonds and evaluation process. Bisc&Co. must also be perceived as health-driven and quality driver; where the ingredients will be natural and full of vitamins and bre. This is how Bisc&Co. distinctive from other competing brands. !
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Jobber(2010), page: 315 Jobber (2010), page: 307

Bisc&Co. need to cut through the ambient noise and stand out from all the competitors that o"ers an on-the-go breakfast option. The solution to standing out will be the core benet of a full breakfast that combines biscuits and milk. Bisc&Co. has no direct competitors, currently, on the market, however the only similar products, to Bisc&Co , will be the cereal/porridge pots by major brands such as Kelloggs. To be able to compel the customers to take action, Bisc&Co. must be perceived as trustworthy since, customers are known to turn towards trusted brands during the decision process52. The
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branding positioning will provide the logic that justies customers decision making, by being the preferred breakfast option in the market.!

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Jobber (2010(, page: 307

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Distribution!
Products need to be available in right quantities, on time, and in a convenient location. To ensure e"ective distribution, a channel strategy is needed.!

! Table 13: Channel strategy!

Market, producer, product and competitive factors inuence the channel selection53. For
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Bisc&Co, the chosen channels are B and C, as illustrated in Table 13. 83% of British adults in UK do grocery shopping in Tesco, Sainsburys, Asda and Morrisons54. During
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recent years, due to the growth of retailers; producers are more willing to supply directly to large retailers rather than operating through wholesaler. Also, the company that produce Bisc&Co.s` brand must have the nancial and managerial resources to operate with large grocery chains; a possible problem, di&cultly solvable, for smaller brands. In using wholesalers, Bisc&Co can be distributed to smaller and local stores, such as petrol

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Jobber (2010), page: 632-633 Mintel report: UK April 2012 Channels to Market

stations and corner outlets. These are the most convenient places to attract a wider range of people on the go.
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! Table14: Distribution channels or consumer goods56!


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Grocery retail shops, dominate the selling point in the biscuit market57. As Bisc&Co. is
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positioned as an on-the-go product, it should be available in both grocery stores and in all possible smaller outlets. In using intensive distribution, it will aim to achieve saturation coverage of the market space58. The product should be exposed in the biscuit
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and cereal aisles as well as in the checkout station of any shop, in order to attract both

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Jobber (2010), page: 628 Jobber (2010), page: 628 Key Note report plus 2011, Biscuits and Cakes, page: 26 Jobber (2010), page: 634

usual consumers as well as quick-shoppers (or else people shopping for a specic product and being interested by Bisc&Co. whilst waiting to pay). Being available in both, supermarkets and corner outlets, the product can meet customers need in the right place, at the right time. The convenience purchase aspect of is vital for Bisc&Co59. Also,
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the location of the selling point seems to have little e"ect on customers` choice in terms of price.!

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The channel integration strategy includes conventional marketing channels, franchising and channel ownership60. Since Bisc&Co. is a FMCG61, conventional marketing channels
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are most suitable. The product is not positioned as an exclusive product and high control over other parties in the chain is not needed62. !
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Price! The pricing strategy is going to take into consideration various factors including competition, regulatory issues, production costs and price sensitivity of the customers. The strategy is likely to combine the following features of di"erent pricing models (penetration, competition based pricing, skimming): !

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59 # 60 # 61 # # 62

Jobber (2010), page: 634

Jobber (2010), page: 634 Fast Moving Consumer Goods Jobber (2010), page: 635

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Table 15: Pricing models.!

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Bisc&Co. is a combination of dairy products and biscuits, which provides a full breakfast meal. Since a biscuit and diary producer, cannot benet from higher output volume, the target customer group is price-sensitive and strong competition allows customers to switch between di"erent brands: products e"ortlessly a new product cannot be positioned as a fully premium o"er63. !
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However, the average price for biscuits is 48p/100g and the average price for fresh milk is approximately 5.5p/100ml64; the product is likely to create value that justies a price
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of 3, compared to an average biscuit package or milk carton. !

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Communication mix: Advertising strategy.! Bisc&Co. is going to be positioned as a high quality and healthy option with great taste. The main target for Bisc&Co. advertising campaign is to introduce a new sub-brand and give the target customer an opportunity to experience the new product. When competing in a saturated such as the biscuit one, it can be di&cult to di"erentiate from other competitors. The advertising strategy will be designed directly for the target
63 # # 64

Jobber (2010), page: 450 Based on a sample from mySuperstore.co.uk

customers and Bisc&Co. will be aimed at an adult audience, as portrayed by analysis of the gap in the market. The target goal for Bisc&Co. is to reach sales of 50 million by year 2016.!

Message!
The content of the message is to make a rational appeal to target customer. The message will be presented through the demonstration of part of the daily life styles. The structure of the message is to make the target customer understanding the importance with breakfast and how easy it is to bring Bisc&Co. while travelling to work and information about all important ingredients to start the day in a healthy way. Bisc&Co.s communication objective is to provide consumers an easy enjoyable breakfast option.! The advertisement will portray; the Williams family, in their normal morning routine. The parents stressed out from having to preparing breakfast and take children to school whilst rushing to own job unfed and extremely stressed; suggesting the only solution is: Bisc&Co. it's breakfast on the go.!

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Communication channels ! The most convenient way to deliver the message is through four communication channels: sample table in groceries shops, TV ads, free newspaper ads and billboards in strategic places for example: tube station.! The primary purpose of a new sub brand is to stimulate the emotions of the target audience. The rst communication channel, mentioned above, o"ers samples to target customers; This gives the customers a possibility to taste the product before buying it;

also it creates an interest in the product, due to the colloquial skills of sales people promoting the brand. Awareness is a key word, and Bisc&Co will rst expose stands in large metropolitan cities such as: London, Birmingham, Manchester, Liverpool, Leeds, Glasgow, Southampton, Cardi" etc. ! The TV advertisement will be approximately 30-40 seconds, depicting a scenery from the Williams family lifestyle. The most convenient times to unveil the spot, would be during morning shows, for example: sponsoring the BBC morning show, have ads in cartoon channels on Sky or any other digital media. It is common that children watch cartoons in the morning whilst having breakfast, thus consequently forcing their parents to view the same channel. ! Bisc&Co., di"erently from other children aimed spot, will aim at parents and stand out from the usual children advertisements that usually run on cartoon channels.! The communication strategy also, may be carried out through free newspapers such as Metro or the Evening Standard in London and similar ones around the UK. The variety of people that reads the newspaper will remarkably enlarge the product's awareness.! To make the communication strategy complete, Bisc&Co. will be advertised through advertising spaces around cities. The locations will be on various transport media e.g. tube and busses. Fusing these strategies would ensure a wide coverage in any city and appeal to the target customers taken into consideration (or else people who need an alternative breakfast option in the mornings)!

References:! Belvita Breakfast 2012, Belvita Breakfast Biscuits [online] Kraft Foods United Kingdom, Available at:http://www.belvitabreakfast.co.uk/? gclid=CIq2yPzG9rICFSTHtAodohgA7g&gclid=CMrB4q2wzrMCFanItAodM0QAfA [Accessed: 20.10.2012]! British Medical journal 2012, 20% fat tax needed to improve population health [Online] Available at: http://www.bmj.com/press-releases/2012/05/14/20%E2%80%9Cfat-tax%E2%80%9D-needed-improve-population-health [Accessed: 29.10.2012]! Joseph, S., 2012. McVities unveils debut as campaign for new biscuit range. [online] Available at: http://www.marketingweek.co.uk/mcvities-unveils-debut-ad-campaignfor-new-biscuit-range/3033613.article [Accessed: 18.11.2012]! Jobber, D., 2010, Principles and Practice of Marketing, 6st edition, McGraw-Hill education, Maidenhead, Berkshire.! J Sainsbury PLC 2011, Lifting the Lid on the Nation's Favourite Biscuits - Anyone for a Digestive? [online], Available from: http://www.j-sainsbury.co.uk/media/latest-stories/ 2011/20110718-lifting-the-lid-on-the-nations-favourite-biscuits-anyone-for-adigestive/ [Accessed: 10.10.2012].! Kellogg's 2011, Annual report [online], Washington, D.C., Available from: http:// www.sec.gov/Archives/edgar/data/55067/000119312512085976/d279714d10k.htm [Accessed: 10.10.2012].! Kelloggs 2012, Kelloggs nutrigrain biscuits [online], Available at: http:// www.nutrigrain.co.uk/ [Accessed: 10.10.2012].! Key Note market report 2012, Biscuits & Cakes [online], Available from: www.keynote.co.uk [Accessed: 30.09.2012].! Key Note market report plus 2011, Biscuits & Cakes [online], Available from: www.keynote.co.uk [Accessed: 30.09.2012].! Key Note market report 2011, Breakfast Cereals [online], Available from: www.keynote.co.uk [Accessed: 30.09.2012].! Mintel reports: UK April 2012, Biscuits, Cookies and Crackers [online], UK, Available from: www.mintel.com [Accessed: 30.09.2012]! Mintel reports: UK April 2011, Biscuits, Cookies and Crackers [online], UK, Available from: www.mintel.com [Accessed: 30.09.2012].!

mySupermarket groceries 2012, Plain Biscuits in Tesco [online], Available from: http:// www.mysupermarket.co.uk/#/grocery-categories/plain_biscuits_in_tesco.html [Accessed: 10.10.2012].! Stodell. H, 2012. Kelloggs enters the breakfast biscuit arena with Nutri-Grain. [online] Available at: http://www.thegrocer.co.uk/fmcg/ambient/cereals/nutri-grain-entersbreakfast-biscuit-arena/229792.article [Accessed: 18.11.2012]! The Food & Drink Innovation Network, 2012. New Belvita Breakfast avours for 2012. [online] Available at: http://www.fdin.org.uk/2012/01/new-belvita-breakfast-avoursfor-2012/ [Accessed: 18.11.2012] ! Press Association, 2011. UK could introduce fat tax, says David Cameron. [Online] Available at: http://www.guardian.co.uk/politics/2011/oct/04/uk-obesity-tax-davidcameron [Accessed on 29th November 2012]! BBC, 2007,Government O&ce of Science. http://news.bbc.co.uk/1/shared/bsp/hi/pdfs/ 22_11_07_modelling_fat.pdf [Accessed on 29th November 2012]!

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Appendix!
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1. Factors to be considered when choosing sweet biscuits!

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Source: Figure 52: Factors to be considered when choosing snacks, sweet biscuits and savoury (non-sweet) biscuits, February 2011! Mintel reports: UK April 2011, Biscuits, Cookies and Crackers [online], UK, Available from: www.mintel.com [Accessed: 30.09.2012].!

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2. Distribution!

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UK Supermarket Retailers By Total Share Of The Market (%), 2010 Tesco ASDA Sainsbury Morrisons Waitrose Aldi Lidi Iceland Somereld Others 30.7 17.0 16.4 12.0 4.1 3.0 2.4 1.7 1.0 11.7 100

Total

Source: Table 3.4: UK Supermarket Retailers by Total Share of the Market (%), 2010! Key Note market report plus 2011, Biscuits & Cakes [online], Available from: www.keynote.co.uk [Accessed: 30.09.2012].!

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3. Price!
Summarised, popular biscuit production and prices! Brand Oatland Biscuit Co Oaties $ Tesco Malted Milk Biscuit $ Tesco Nice Biscuits $ Tesco Rich Tea Finger Biscuits $ Tesco Reduced Fat Rich Tea Biscuits $ Oatland Biscuit Co Butter Crunch Twin Pack $ Oatland Biscuit Co Nice Twin $ Lotus Original Caramalised Biscuits $ Wibisco Shirley Biscuits $ McVitie's Classic Rich Tea Biscuits $ McVitie's Hobnobs Twin Pack $ Ovaltine Biscuits $ McVitie's Hobnobs $ Osem Petit Beurre Biscuits $ Regal Foods Cake Rusk Original $ Regal Foods Sugar Topped Pu" Pastry Finger Biscuits $ Regal Foods Cake Rusk Original $ Wibisco Shirley Biscuits $ Fox's Ambers Caramel $ Fox's Ambers Original Cookies $ Fox's Butter Crinkles $ Price (p/ 100g) 16,3 17 19,5 21,2 23 25 25 26 30 33,2 33,2 33,3 36,3 43,6 44,5 44,5 46,3 47 58,8 58,8 59,5

Imperial Jeera Biscuits $ Tesco British Treacle Tart Biscuit $

59,6 60,4

Regal Foods Baqar Khani - Pu" Pastry Delight 64,3 $ Crawford's Marie Biscuits $ Tesco Everyday Value Rich Tea Biscuits $ Crawford's Thin Arrowroot $ Ovaltine Biscuits Small $ Nola Ouma Buttermilk Rusks $ Regal Foods Pu" Pastry Twist $ Regal Foods Pu" Pastry Delight $ Imperial Tea Rusks $ Tesco Marbled Swirl $ Average price (p/100g) 64,5 7,7 74,5 77,3 79,8 82,2 85,9 100 111 48,8 15%

Price di"erence

Source: ! mySupermarket groceries 2012, Plain Biscuits in Tesco [online], Available from: http:// www.mysupermarket.co.uk/#/grocery-categories/plain_biscuits_in_tesco.html! [Accessed: 10.10.2012].!

4. Market trends!

! Source: Figure 15: Perceptions of healthiness of cereal bars, crackers/savoury biscuits and sweet biscuits, by demographics, October 2011.! Mintel reports: UK April 2011, Biscuits, Cookies and Crackers [online], UK, Available from: www.mintel.com [Accessed: 30.09.2012].!

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5. Types of sweet biscuits consumed!

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Source: Figure 33: UK retail value sales of sweet biscuits, by segment, 2011! Mintel reports: UK April 2011, Biscuits, Cookies and Crackers [online], UK, Available from: www.mintel.com [Accessed: 30.09.2012].!

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6. The Williams family!
The drawing illustrates a typical morning for the family Williams.

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7. Bisc&Co!

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Figure 1 Visual Design.!

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