International Marketing For Carman’s Kitchen

Market Analysis

Discuss about the International Marketing for Carman’s Kitchen.

Carman’s Kitchen Has been in business for the past 20 years producing food products and creating recipes for its customers. It has grown over the past two decades and has attracted international markets. The business founder in her late teen bought the Muesli for a $1000 and has grown the business into a billion dollar enterprise. Carolyn Creswell has won some of the prestigious prizes including the Telstra Australian businesswoman of the year in 2012. Her company’s export products to 32 countries and has the muesli brand leading in supermarkets’ in Australia (Clark, 2014). The business brand is customer-oriented and delivers what is familiar with the people. The company has strategically positioned itself as being a flexible and dynamic business and responds within a short time to customer needs.

The company has employed over 150 workers at the head office in Melbourne and others at the manufacturing bases. Ingredients, suppliers and checking the quality of the ingredients is done inherently though it also sources the designs packaging of the products within the region. The manufacturing process of the goods is delegated to manufacturing companies. The company indirectly produces the food products which is advantageous in managing the product and reducing the workload of the company(Wilson et al., 2016). The company marketing strategy relies on quality products which attract more markets.

Most of the products from the company have been used in airlines as snacks, and it accounts for close to 7% of its customers (Hamid, 2010). The largest share of its products is sold in the supermarkets across the globe. The market has been favorable for the company due to increase in the value of private label products over branded products. The competition between the private sector and the manufacturers resulted in the closure of some manufacturing plants. Many of the manufacturing companies dismissed the potential threat that private labels posed to their operations. Success achieved by Carman is as a result of poor projection by manufacturing companies. The business founder defines herself as being optimistic and a risk taker, having built her company from a small store to an acclaimed international brand. Carmen has continuously grown and developed strategies that would be crucial to the company in case of any breakdown in the production to consumption process of the products.

For a company to achieve its goals and objectives, there must be steps and procedures to be followed. There are several models used in the market analysis; The STP (Segmentation, Targeting and Positioning) and the SWOT (Strengths, Weakness, Opportunities and Threats) are the commonly used models. The STP is increasingly becoming popular as it shifts focus from products to customers as explained by Andriole (2009). Traditionally, most models used in the analysis focused more on product differentiation which does not apply to the current market dynamics. The articles will focus on the use of STP in marketing analysis of the Carmen’s Kitchen products. STP model creates customer-based products that connect to their preferences.

STP Model

This is the first step that involves placing customers in categories depending on their needs and preferences. This is important in developing products that resonate well with a section of the customers and not all of the customers. Classification of customer types is crucial in ensuring customer satisfaction and sense of acceptance of their preferences. Carmen’s approach focuses more on the customers’ wellbeing. They have a flexible market response as they do what the customers prefer. They are swift to change the product if they gather that the customers’ opinions are contrary to the company’s policy. For instance, the formulation of Blueberry Superfoods was as a result of poor reception of the blueberry, nut& seed. This move saved the line from being pulled out, and consequently, the sales went up. 

This requires the company to determine the size of the target market. For segmentation to be done, the market scope should be wide so as differences in the market can be identified. The existing differences are analyzed to project the profit. These target market placed in segments should be accessible for the company to realize its goals. Carmen has been in the market for the past two decades and has made major strides in attracting customers from across the globe. It has developed an interactive and engaging system through the creation of recipes that the clients are willing to experiment. The customers are engaged through an interface that allows the company to collect feedback which is essential for the improvement of the company’s products.

This involves mapping the market occupied by a competitor and giving factors that make them favorable. This provides a business insight to its current situation in the market. It is a step in which a business can identify a possible niche in the market and strategize on how to exploit that gap. Carman has positioned itself as an authentic brand with customer touch to its brand. The company has focused on providing the customers with top notch products. The company exploited the markets by paying attention to every small aspect of customer preferences.

It has stood out from other cereal-based production companies as its label has become a sensation to the customers and it has assisted in the marketing of the brand by use of word of mouth. It has managed to position itself in the media as a likable product. Its marketing strategy aims at reaching to new customers using enticing methods that do not irritate. Carman exploited the shift in the new market trend to more private labels that focus on the customers’ needs rather the traditional manufacturing of products that were out of customer touch.

Segmentation

Indonesia has become a close trading partner to Australia with many companies securing deals with the Indonesian importers. There is an increase in demand for Australian goods in Indonesian markets. Indonesian consumers prefer international products with the increasing change in lifestyles towards a western culture (Hundloe, Blagrove, & Ditton, 2016). More food products are being exported to Indonesia from Australia which has resulted in the expansion of franchises and supermarkets’ to meet this demand.

Australian goods in the Indonesian market have attracted more customers because of their reputation. Many companies focus on the quality of the products as a marketing strategy increasing the chances of holding its market share (Dominici, 2006). Carmen’s kitchen could analyze Indonesian market using the STP model. This will enable it to understand the market landscape and identify opportunities that they could exploit.

This is the first step in understanding the market dynamics. Consumers need to be categorized to ensure that specific products reach a particular customer. Indonesia has a growing youth population who aspire modern lifestyles which have resulted in a shift from traditional or local products to international brands. The youth population drives the landscape of the global brands. Carman’s success relies on the ability of its products to appeal to the younger generation.

Processed foods are increasingly being used in the urban population. Paying attention to their choice of goods is important in developing a strategy for the marketing and distribution of products. Carman has an advantage because its products do not violate the Halal certification. Indonesia is predominantly Muslim country; therefore, certain products cannot do well in the country without a halal certification

The growing youth population makes the Indonesian market favorable for companies selling their products to these people. Carman’s products have the ability to appeal from this population as they represent a western culture which this section of the customers’ is getting inclined to. The youth population determines how the company operates as they are increasingly dominating the market trends. Carmen should also identify the increasing urbanization in Indonesia as an opportunity for its products. Leinbach, T. R. (2004) explains that working class individuals and families prefer processed food as the shift from traditional practices of preparing food from scratch. This group is a potential consumer group that Carman needs to attract. The company has increased the chance of success as the size of the market groups large, and demand is rising.

Targeting

Carmen’s products have become successful in many countries because they were able to identify areas where there was a niche, and the product was projected to have good sales. The products should have a halal certification for it to perform in an Islamic Country. Distribution channels are essential in availing the product to consumers. Carman should identify a reputable importer who understands the market and can develop strategies for attracting customers. The company can identify importers, food operators or retailers whom they could sign a deal with to manage their products in the country. It is important to research on the identified potential distribution channel on its ability to understand the target group consumer dynamics and their legality, suggests Sternquist, B. (2007).

Conclusion

The success of Carman’s products stems from good leadership. The founder knows the entire operations of the business which gives her an understanding of brand trends. Strategies have become a backbone of the activities that the company relies on. The founder attributes the success to a projection of future threats and opportunities that the company is likely to face. Growth of the company is a summation of a marketing mix that the company has used for the past two decades

References

Andriole, S. J., (2009). Business Technology Trends Analysis. London Press.

Clark, P. (2014). Modern Australian food: delicious classic & contemporary food from the city, country & coast.

Dominici, G. (2006). Ecology of Insular Southeast Asia the Indonesian Archipelago. Amsterdam, Elsevier.

Hamid, E. S., (2010). Indonesia in ASEAN trade co-operation: the impacts of tariff reductions on Indonesian imports.

Hundloe, T., Blagrove, S., & Ditton, H., (2016). Australia’s role in feeding the world. Pearson

Leinbach, T. R., (2004). The Indonesian rural economy: mobility, work, and enterprise. Singapore, Institute of Southeast Asian Studies.

Mishra, S., (2007). Strategic case analysis: business concepts, strategy frameworks, and solved business cases as Socratic dialogues. Fremont, Calif, Franteractive, Inc.

National Aboriginal and Torres Strait Islander Art Award. (2011). 28 Telstra National Aboriginal & Torres Strait Islander Art Award. [Darwin], [Museum and Art Gallery of the Northern Territory].

Sternquist, B., (2007). International retailing. New York, Fairchild Publications.

Unesco & WHO Collaborating Center for Research on Primary Prevention of Cardiovascular Diseases. (2009). Food culture: development and education: building food culture and education for longevity. Hyogo, Japan, World Health Frontier Institute.

Wilson, A. M., Mccullum, D., Henderson, J., Coveney, J., Meyer, S. B., Webb, T., & Ward, P. R., (2016). Management of food incidents by Australian food regulators. Nutrition & Dietetics. 73, 448-454.