Discuss About The Capilano And Beekeeper Simon Mulvany Suing.
A marketing plan is a complete blueprint that summaries marketing and advertising efforts of a business for the coming year. It explains the activities of business involved in achieving specific objectives of marketing in a fixed time frame. This report is being prepared in order to prepare a marketing plan for Capilano Honey for the Vietnam market. This marketing plan will explain various business activities of Capilano Honey in Vietnam and will help in achieving desired objectives. Various business activities that will be explained are Value Analysis, Market Segmentation, Positioning, Product, Price, Branding, and Communication.
Since 60 years, Capilano Honey has developed from modest start to being one top supplier of honey, enjoying a desirable status for product invention, best practice processes, and quality honey. Capilano honey has the ability to produce honey of around 45,000 tonnes every year, providing honey to approx. 30 countries across the world. All this got possible just because of the Capilano’s dedicated and hardworking supply team which involves approx. 500 Australian families of Beekeeping (Capilano, 2018).
The leading companies of honey in the market of Vietnam are VINAPI and Manuka Honey.
The company ensures that it offers the best quality of honey to its customers by considering their health and fitness. Capilano Honey is very much focused towards their target and trying to appeal the customers (Capilano, 2018). The honey of Capilano is different from other companies in the market because there will offer the best quality of honey at reasonable prices where on the other side the competitors such as Manuka Honey offer its products at high price. With the support of the devoted customer relationship management Capilano Honey was able to attain a customer satisfaction among current customers and it will also help in attaining good brand equity among the possible or potential customers in the Vietnam Market.
The prices of the Capilano Honey are less as compared to its competitors. It tries to offer honey at a low price as possible. In the market of Vietnam the strategy of the company is to start offering products at lowest price i.e. ? 20 to 30 depending on the type of honey such as Capilano Natural Australian Honey, Capilano Australian Mountain Honey, Capilano Australian Forest Honey. Whereas the major competitor of the company i.e. Manuka Honey offers honey in Vietnam offer products at a higher price.
Honey bees are present on the planet a lot longer than a human being. Honey is considered as an ancient food used by man as a delicious food. It has been utilized as a sweeter ingredient before the extraction of sugar from sugar cane. There are various benefits of using Capilano Honey as it is a solution of concentrated carbohydrate comprising a mixture of simple and compound sugars. The three main sugars are Sucrose, Glucose, and Fructose. Capilano Honey contains 0.8-15% sucrose, 28-36% glucose, and 36-50% fructose based on the floral source (Capilano Honey, 2018).
A process of dividing a potential customer’s market into different segments, or groups depending on different characteristics is known as Market segmentation (McDonald, 2012). The segments that are made are possessed of customers who will reply likewise to strategies of marketing and who share common traits like locations, needs, or similar interests. The market segmentation is categorized into two parts i.e. Macro segmentation and Micro-segmentation
Micro-segmentation – This practice comprises dividing consumers into four groups i.e. geographical, behavior, demographical, and lifestyle (Monk, 2018).
Geographic segmentation – It is a general strategy used when a business provides its services in a particular area. In order to divide the market according to this segment, a business can make use of Geographic/ZIP Code Research. This type of tool is useful for those who are trying to attain demographic information, particularly those identifying to get a normal feel for businesses and households in certain areas (My Bizz Marketer, 2017).
The company can target its market according to the geographic segmentation and can take the support of numerous companies of data collection that provide these type of information for free as well as companies that offer programs of ZIP code look-up like My Best Segments ZIP code look-up which is US bases. Material provided comprises factors like the people surviving in that ZIP code, income as well as median age.
Behavior – Behaviour segmentation splits a population depending on their behavior, the manner people react to, and use of a product (Weinstein, 2013). Cluster Analysis is a tool which is used to classify substances into pre-defined groups, with every group being comparatively alike on a basis of selected attributes. The resultant groups are called as clusters. Therefore, it permits marketers to see the data they have collected and utilized it to recognize segments or sections they can market to.
Demographic – Demographic segmentation is dividing the market as per race, family size, income, age, education, ethnicity, gender, and religion. In order to divide the market, Segmentation trees can be utilized as it is a tool which comprises a marketer making a database from scrape. A segmentation tree can also be said as a difference of a decision tree, which displays the market divided into smaller segments of the market. This tool can be utilized where there is the absence of usable statistical or study data.
Same as a family tree, this tree begins with a service or product name at the top. This is then divided into different branches make of potential markets. This segmentation tree can be utilized by Capilano Honey in order to divide its market. Honey will target kids, teens, and adults in Vietnam. Kids and teens are the primary segments of the company, therefore, they have set the prices of honey according to that.
Lifestyle – It support in understanding the requirement of the customers well and depending on which marketers can make suitable decisions of correctly placing the service or product in the correct segment (Weinstein & Cahill, 2014). Customer lifestyle segmentation tool can be used as it creates small subgroups from the information gathered as per their needs, dislikes, choices, and likes.
Being one of the largest honey producers has been facing challenges due to the growth of the private labels brands. The biggest customer of Capilano Honey has now become company’s biggest competitor such as Woolworths and Coles. Both these supermarkets are performing well in the market although Capilano also wanted that retailers should make money by selling company’s brand as they are selling their own products (Kitney, 2014). Therefore, they tried to place their brand but the private label products of these supermarkets are affecting the financial outcomes. In the recent years, there is 25% increase in the private label because 85% of the consumers believe that private label brands equal or better quality as other national brands.
Similarly, in Vietnam Capilano Honey can face high competition from the private label brands such as Bonie Bee Co. This company has started offering their private label honey in the market.
Besides this, the company can also face challenges due to the float of information that Capilano honey uses toxic ingredients in its honey because their most of the honey is imported from Argentina, Mexico, and China (Kangaroo Court of Australia, 2016). The company is trying to enter the Vietnam market however due to the information of toxic honey people behavior has changed towards this honey and now became worried about the Australian contaminated honey (Mendes, 2016). This will directly affect the sales of the products.
|
Criteria |
Primary segment |
Secondary Segment |
|
Demographic |
Kids – 4 to 12 Teens – 13 to 19 |
Adult – 20 to 30 |
Capilano Honey is very famous in the Australian market as it is one of the largest honey packers in the world. It is a brand which is recognized by 96% of the population and one of the most trusted brands (Capilano, 2015). It is famous for reliability, flavor, quality and advanced delivery mechanisms.
Customer Benefits – The Company will position itself in Vietnam by explaining the benefits of the honey to the target audience i.e. kids, teens, and adult. Some of the benefits of Capilano honey are reliability, quality, flavor, and taste.
Pricing Strategy – This strategy can also be used by Capilano in order to position itself in the Vietnam market. It can highlight its prices by comparing with the prices of the competitors in the market.
The above positioning map reflects the positioning of Capilano Honey that is going to be in the market of Vietnam. As highlighted above the Capilano honey is positioned in the mid of Low price with high quality.
The positioning strategy that is being used in this is customer benefit and price strategy. Both of these strategies are very useful and will support company in attaining its aim i.e. of offering honey of high quality at low price. The customer benefit strategy will support in attracting customers by explaining the benefits of the honey, it can be done by arranging campaigns in the place. Besides this, the price strategy is also very effective in attracting customers because other companies in the Vietnam market i.e. Manuka Honey offer products at very high cost due to which many people cannot afford it, therefore company decided to position its product at low cost.
For Kids, teens, and adults who want to have tasty, healthy honey Capilano Honey is a perfect choice. That’s because Capilano Honey is made from nectar which is collected from the heart of flowers and is collected by the honey bees.
The Capilano Honey will offer its product in Vietnam at low cost because other companies that are present in the market are offering very costly honey due to which everyone is not able to afford it. Besides this, the company will offer high quality of honey with organic ingredients that can also be used for preparing medicines.
The product of Manuka honey is very expensive as it comes from the bees that fertilize Leptospermum scorparium, or the manuka bush, which produces mainly in Australia and New Zealand (Hatic, 2016). On the other hand, the Capilano Honey is produced from nectar which is collected from the heart of flowers and is collected by the honey bees.
The quantity of compensation or payment provided by one person to another in exchange for a unit of service or good is known as price.
Pricing for Market Penetration – This strategy is aimed towards attracting buyers by offering lower prices on service and good. Various companies make use of this strategy in order draw attention away from their competition; penetration pricing does tend to result in an initial loss of income for the business.
The Capilano Honey will be sold at lowest price i.e. ? 20 to 30 depending on the type of honey customer is picking.
In Vietnam, Manuka Honey is very expensive due to its rare ingredients and manufacturing process. A jar of Manuka Honey cost approx. ? 60 (Export Genius, 2017).
|
Capilano Honey Price |
Manuka Honey Price |
|
? 20-30 |
? 60 |
Unmet Production Cost – if the raw material or equipment became expensive they offering products at low cost will not provide significant profit to the company.
Missed Opportunity – If a company makes luxury products mostly miss the opportunity because they perform cheap marketing of their product. Due to this customer avoid the product (White, 2018).
Advertisement – An advertisement is a form of visual or audio marketing communication that makes use of openly sponsored, and non-personal message in order to sell or promote a service, product, or idea (Einstein, 2017). Capilano Honey will make use of advertisement in order to promote its healthy and qualitative honey to the customers in Vietnam.
In order to advertise, Capilano Honey will make use of campaign, newspaper, television, etc communication strategy. In order to get the position in the market company will do the various campaign in Vietnam in which it will explain the benefits of Capilano honey. Besides this, it will promote its products on television channels which is majorly famous for kids, teens in order to target them.
When it comes to the quality and comparable artistic selections, the most general and safe ideas becomes a serious risk of being unremarkable. On the other side, whenever the business tries to do something different it takes a risk (Villion & Company, 2018).
Advertising Campaign Tagline
“Once you taste the Capilano Honey, you want more of that”.
In the advertisement campaign Company will make use of this tagline by endorsing famous celebrities who will help in promoting the products.
First step – In order to build a strong brand company will first conduct a detailed brand audit in which it will identify its customers and target market i.e. Kids, teens, and adults in Vietnam Market.
Second Step – In order to get success in the branding of the production company will prepare its value proposition statement i.e. ‘The Company ensures that it offers the best quality of honey to its customers by considering their health and fitness”.
Third Step – Here, the company will create the voice, feel, and look of its brand with the help of marketing channel (Louis, 2018).
Fourth step –Several strategies will be adopted to increase the brand awareness such as advertisements, campaigns.
The Capilano Honey will definitely make use of its current brand portfolio. This will help the company in attracting more customers due to its effective brand image in Australia. This can be used by representing the company’s performance in the previous market through advertisement.
The company wants to have a brand personality in the eyes of customers that represents its high quality of products at low cost.
It is expected from the above marketing plan that company will definitely make its place in the Vietnam honey market by offering its quality products at low cost. The company will get 20% increase in its sales with the help of marketing plan and will give strong competition to the existing companies.
In order to penetrate the product in the next 5 years company will make some innovations in the packaging and the systems of product delivery which will help the industry in reaching to the target market and overcome inherent problems and purchaser anxieties related with honey, like mess and stickiness.
Conclusion
In the conclusion, it can be said that the above-specified marketing plan will support company in attaining the Vietnam market by offering high quality of honey and low price. Besides this, the advertisement strategy of the company will support in gaining the customers of existing players in the market. The advertising campaign will help the company in explaining the benefits of the Capilano Honey to the customers. Demographic segmentation will be used in order to segment the market. Along with this company will position in the market by using strategies i.e. customer benefit and price strategy. Moreover, the product of Capilano is different from its competitor in terms of manufacturing process and price.
References
Andrews, R. (2018). All About Fructose. Retrieved from https://www.precisionnutrition.com/all-about-fructose
Capilano Honey. (2018). All About Honey. Retrieved from https://www.capilanohoney.com/au-en/health-wellness/naturally-good
Capilano Honey. (2018). Our Heritage. Retrieved from https://www.capilanohoney.com/au-en/hive-to-home/our-heritage
Capilano. (2015). Company Profile. Retrieved from https://www.capilanohoney.com/uploads/Corporate/company-profile/pdf/CP-Company_Profile.pdf
Capilano. (2018). Capilano Story. Retrieved from https://www.capilanousa.com/capilano-story/
Capilano. (2018). Quality Assurance. Retrieved from https://www.capilanousa.com/capilano-story/quality-assurance/
Einstein, M. (2017). Advertising: What Everyone Needs to Know. 3rd edn. U.K: Oxford University Press.
Export Genius. (2017). Vietnam Import Data of Manuka Honey. Retrieved from https://www.exportgenius.in/import-data/vietnam/manuka-honey.php
Hatic, D. (2016). What Is Manuka Honey and Why Is It So Expensive? Retrieved from https://www.eater.com/2016/8/25/12644050/manuka-honey-why-so-expensive
Kangaroo Court of Australia. (2016). Australia’s Capilano Honey Admit Selling Toxic And Poisonous Honey To Consumers. Retrieved from https://kangaroocourtofaustralia.com/2016/09/17/australias-capilano-honey-admit-selling-toxic-and-poisonous-honey-to-consumers/
Kitney, D. (2014). Capilano sees private label honey as a sticky problem. Retrieved from https://www.theaustralian.com.au/business/capilano-sees-private-label-honey-as-a-sticky-problem/news-story/81b4a770f406a957cfabfcf951e1af4b
Louis, M.S. (2018). 5 Steps to Building a Strong Brand Identity When the Game Is Constantly Changing. Retrieved from https://www.inc.com/molly-reynolds/5-steps-to-building-a-strong-brand-identity-when-the-game-is-constantly-changing.html
McDonald, M. (2012). Market Segmentation: How to Do It and How to Profit from It. 5th edn. U.S: John Wiley & Sons.
Mendes, J. (2016). Capilano and beekeeper Simon Mulvany suing each other as honey dispute turns sticky. Retrieved from https://www.abc.net.au/news/2016-11-15/capilano-beekeeper-suing-each-other-over-social-media-posts/8024150
Monk. (2018). How to Use Micro Segmentation Marketing Effectively in Marketing Automation. Retrieved from https://monk.webengage.com/how-to-use-micro-segmentation-in-marketing-automation/
My Bizz Marketer. (2017). Market Segmentation – Tool and Techniques. Retrieved from https://www.mybizmarketer.co.ke/market-segmentation-tool-and-techniques/
Villion & Company. (2018). Risk In Advertising: When Does It Pay To Take Creative Risks? Retrieved from https://villing.com/articles/risk-in-advertising/
Weinstein, A. (2013). Handbook of Market Segmentation: Strategic Targeting for Business and Technology Firms. 3rd edn. U.K: Routledge.
Weinstein, A., & Cahill, D.J. (2014). Lifestyle Market Segmentation. 4th edn. U.K: Routledge.
White, W. (2018). Market Penetration Strategy: Definition & Pros and Cons. Retrieved from https://inevitablesteps.com/marketing/market-penetration-strategy/
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