Question:
Analyze the Market for Baby Formula Aptamil.
The purpose of the essay is to analyze the market for Baby Formula Aptamil in the Australian market. The market is analyzed using the marketing environment in which the product is manufactured and marketed. Further, the target market and the potential customers of the product are analyzed using a well-designed pricing strategy.
Aptamil Profutura is a well-designed alternative for breast milk by some of the best nutrition experts. It has been designed for the baby toddlers that could give the same amount of nutrition required as the breast milk. The experts of the company are dedicated in manufacturing milk for the infant toddlers with an experience of 30 years (Aptamil Profutura 2, 2017).
Aptamil Profutura is offering a new type of product for the infant toddlers named by Aptamil Profutura. It has been designed by the best experts of the brand and is one of their premium products. It is the most advanced formula designed by featuring a unique blend of ingredients (Aptamil Profutura 2, 2017).
Microenvironment
Competitors
Competitors play a major role while planning and analyzing the market for a product. Brands for dairy products are growing in the FMCG companies in Australia. Aptamil Profutura faces competitions in Australia from companies like Bellamy’s Australia Limited, A2 Milk and others. The company offers similar products like Aptamil Profutura. In such a competitive situation, it is necessary that the company maintain a unique marketing strategy for itself in order to capture the market (Aptamil Profutura 2, 2017).
Customers
Aptamil Profutura manufactures it products to serve different kind of customers such as mothers having infant baby, for gifting purpose and for the internal customer base. The customers also include some business customers that purchase for sale in their stores. The business customers are like supermarkets, grocery stores that take the milk product from the company. Thus, the customer base are spread for the company such as household, for gift purpose, by doctors and business person.
Economic
Economic factor is crucial for the company to get a picture of the economic region they operate. It helps them to decide the level of profit that they expect from the region and the investment they will put on it. There are various economic factors that a company faces and that affect the buying behavior of the consumers. For the milk product that Aptamil Profutura is offering, it is important to know the living standard and style of the people, the growth of Australia over the years (Gupta, 2013).
The Australian economy is a well-developed economy in which the people maintain a modern and advanced lifestyle. The average earning of the people in Australia has been $1556.30 in the year 2015, which was an increase of 2.1 percent compared to previous years (Tradingeconomics, 2017). The GDP of the country according to Bureau of statistics, in the year 2017 has grown by the rate 1.8 percent compared to previous years. The economy also experienced an increase in the household consumption by 0.7 percent. The reproduction rate in Australia is also increasing with a rate of 0.86 percent per 1000 (ABC News, 2017). This serves as a driving force for the company to increase its sale from household consumers. moreover, the company offers its products through online channels as well that is widely used channel in Australia.
Social
Another aspect of macro-environment that will affect the growth of Aptamil Profutura in Australia is the social and cultural aspect of the country. The social aspect that affects the company is the living style of people, the traditional values and the modern lifestyle they maintain. This is because a society believing in maintaining their traditions and old belief and offer their child the homemade nutrition will not prefer such milk (Choez, et al., 2015).
Australia is a developed economy with most of the people preferring modern way of life. Most of the people in Australia are working and thus they prefer such convenient nutritious food for their children. Moreover, most of the people of Australia are health conscious and love to get the best nutritious foods for their baby. Moreover, the advanced society of the economy would love the advanced formula featuring the product (Geoba.se, 2017).
Depending on the content, benefit and usefulness of the product that Aptamil Profutura, it is important to design a target market for the company. The main target market for the company would be termed as the modern middle-income level households.
The defined target market for the product that is the modern medium income level customers is segmented under various categories such as geographic segmentation, demographic segmentation and psychographic segmentation (Solomon, 2014). These categories of segmentation portray different target market for the company. As the infant mil product acts as a supplement for the breast milk and other homemade nutritious foods for the baby, it is necessary that the mindset of the family is supportive for readymade milk. This is because a family with strong traditional believes will never accept this product. Moreover, the company will also target the household with more number of infant children as the product is only for the children. Children with the age range of 6 to 12 months are the main target market for the company (Aptamil Profutura 2, 2017). Moreover, the company also targets the middle-income customers for the product, as the pricing strategy that they maintain is competitive pricing. Moreover, the company will target the regions having the highest birth rate in Australia and supply the products in the stores of those areas. As the milk is presented as the readymade food for the infant children, it suits the fast life of people of Australia. Through online website, the company targets the mothers that are office goers and love to shop for the baby through online. This is the type of psychographic segmentation the company has formed for is customers.
Thus, segmenting the market proves to e beneficial for the economy, as it is the best way the company can streamline its customers and their need. By segmenting the market, Aptamil Profutura is able to offer the product to the potential customers. This will help the company to target the best customers of the product.
The market for the milk that the company is offering can be positioned based on various aspects such as advantages of the product, the nutrition content, formulation of the product and others. Positioning is the type of name or image the brand is occupying in the market based on the product it is offering. The positioning helps in differentiating the product of a brand from other similar brands. Positioning is done according to the type of market the company is targeting. However, there are different types of positioning that the company can use such as price-quality approach and product-user approach. The company chooses the price-quality approach because it tries to put itself as one of the most featured and advanced quality product (Schlegelmilch, 2016). This is the reason it has designed the milk with some of the most advanced formula and nutrients. On the other hand it is seen that the company uses product-user approach in which it portrays its product as the most useful and healthy food for the babies. It offers the some of the most needful nutrients to the baby such as energy, carbohydrates, fat and protein in right amount. It is has positioned itself as a useful and affordable baby food brand in Australian and international market.
According to (), a brand design a positioning for itself through a positioning map that helps them to formulate the perception that the consumers will hold for their brand. The positioning map shown below represents the position of Aptamil Profutura compared to its competitors in the FMCG industry of Australia.
From the above positioning map, it is seen that the company has positioned itself better than its competitors have. It is seen that A2 Milk of Australia has positioned itself as one of the most valuable as well as high priced brand. It offers healthy and nutritious milk for the infants at a higher price and targets the rich customers. However, another competitor has positioned itself as high priced milk and trying to move itself from low valued to high valued milk as per its price. However, it is seen that Aptamil Profutura has positioned its new product at low priced product and is of high value to the customers. This is due to its advanced featured formula that it has used in the product. This has helped the company to gain a competitive advantage over its competitors.
Conclusion
From the above analysis, it can be concluded that Aptamil Profutura is inventing new formula 2 milk for toddler from age group 6 to 12 months. It has been seen that for the product the company is deciding to offer it at a competitive price and target the household customers of Australia. Moreover, it is seen that the economic and social condition of Australia supports the demand for such milk, which offers as a substitute for breast milk. This is because most of the mothers in Australia are working and prefer to offer nutritious food to their toddlers.
References
ABC News. (2017). Australia’s economic growth jumps, but is it sustainable?. Retrieved 18 November 2017, from https://www.abc.net.au/news/2017-09-06/gdp-economic-growth-abs-data-june-quarter-2017/8877618
Aptamil Profutura 2. (2017). aptanutrition.com. Retrieved 18 November 2017, from ehttps://www.aptanutrition.com.au/our-products/follow-on-formula/aptamil-profutura-2-premium-follow-on-formula.aspx
Choez, W. O., Cortázar, M. Q., Cruz, S. H., & Carvache, K. R. (2015). A framework for PEST analysis based on neutrosophic cognitive map: case study in a vertical farming initiative. Neutrosophic Sets and Systems, vol. 17/2017: A Quarterly International Journal in Information Science and Engineering, 2(4), 57.
Geoba.se. (2017). Geoba.se. : Gazetteer – Australia – 2017 – Statistics and Rankings Retrieved 18 November 2017, from https://www.geoba.se/country.php?cc=AU
Gupta, A. (2013). Environmental and pest analysis: An approach to external business environment. Merit Research Journal of Art, Social Science and Humanities, 1(2), 13-17.
Schlegelmilch, B. B. (2016). Segmenting Targeting and Positioning in Global Markets. In Global Marketing Strategy(pp. 63-82). Springer International Publishing.
Solomon, M. R. (2014). Consumer behavior: Buying, having, and being (Vol. 10). Upper Saddle River, NJ: Prentice Hall.
Tradingeconomics.com. (2017). Australia GDP Growth Rate | 1959-2017 | Data | Chart | Calendar | Forecast. Retrieved 18 November 2017, from https://tradingeconomics.com/australia/gdp-growth
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