MMK101 Marketing Fundamentals

Marketing Strategy
Trimester 1, 2023

Student Name: ARYA KERALIA

Student Number: 222485718

Word Count:
Table of Contents
Target Market, Positioning Strategy and Positioning Statement.....................................................4

5. Marketing Strategy Recommendations........................................................................................4

5.1. Product Strategy....................................................................................................................4

5.2. Pricing Strategy....................................................................................................................4

5.3. Distribution and Logistics (placement) Strategy..................................................................4

5.4. Integrated Marketing Communications Strategy..................................................................4

5.5. Marketing Metrics................................................................................................................5

6. Conclusion and Implications.......................................................................................................5

Reference List..................................................................................................................................5
Target Market, Positioning Strategy and Positioning Statement
Target Market/Consumer profile: Boring Oat Milk is a New Zealand based company which
manufactures and distributes oat milk all over New Zealand. The company was founded by
Morgan Maw. The company is venturing entrepreneurial prospects to enter Australian Market.
That’s why selected target market and optimization of consumer profiling plays an important
role in acquiring the market. Boring Oat Milk could have a size of the market if they targeted
undaunted. Undaunted are people aged in 20-44 years, which makes up to 40% population of
Melbourne as research suggests. They depict of young and married couples who are willing to
spend more to satisfy their wants, as they not very price sensitive. Additionally, they are picky
and have solid reasons and evidences before purchasing or rejecting a product. Furthermore,
they have heavy usage of products and highly loyal to commodity of the brand. Adding to
that, Boring Oat Milk in house manufacturing process provides them with an edge to control
the quality and pricing of the product.

Differentiation strategy: Boring Oat Milk have a unique process of manufacturing oat milk.
They use a process called decanting which seperates oats from oat concentrate. This unique
process has been perfected by the founder Morgan Maw giving them meritiorious quality of
oat milk.

Positioning Statement: The major differentiating factor of Boring Oat Milk is it’s in house
decantation process and self-distribution process enhances it’s product quality and product
price control. Furthermore, they also focus on innovative packaging methods which are
sustainable and supports the environment.
5. Marketing Strategy Recommendations
5.1. Product Strategy (298 words)

Boring Oat Milk is a company that specializes in producing and distributing high-quality oat
milk as a plant-based alternative to dairy milk. The company’s mission is to provide a simple and
sustainable product that is versatile and can be used in various recipes. The achieve core
customer value Boring Oat Milk should introduce the following strategy:

5.1.1 Diversify the product line:

While oat milk is gaining popularity, consumers are also seeking variety in their plant-based
milk options. Boring Oat Milk could consider launching new flavors or incorporating other
plant-based ingredients to appeal to a wider audience. For example, they could introduce vanilla
or chocolate flavored oat milk or blend oat milk with almond or coconut milk to create a unique
taste.

5.1.2 Leverage Sustainability:

The plant-based industry has a strong focus on sustainability and environmental responsibility.
Boring Oat Milk can emphasize their eco-friendly production process, including the use of
renewable energy and sustainable packaging, to appeal to environmentally conscious consumers.
They could also partner with organizations that promote sustainability or donate portion of their
profits to environmental causes.

5.1.3 Focus on product differentiation:

As the oat milk market becomes increasingly competitive, Boring Oat Milk can differentiate
their product by highlighting unique features or benefits. For example, they could create a line of
oat milk products that cater to consumers with specific dietary needs, such as low-sugar, gluten-
free, or organic options. Alternatively they could position their product as a premium oat milk
option by using high-quality oats, implementing a more sophisticated production process, or
offering a unique taste profile. By focusing on product differentiation, Boring Oat Milk can set
themselves apart from other brands in the market and attract consumers who are willing to pay a
premium for a high quality product.

5.2. Pricing Strategy (217 words)

A skimming pricing strategy for oat milk involves positioning it as a premium product that offers
unique benefits such as nutritional value, sustainability, and customization options. This strategy
can result in higher profit margins and works well when there is a segment of a market willing to
pay more for a premium product. Boring oat milk’s nutritional value, with high protein and giber
content, low saturated fat and cholesterol-free composition, can justify a higher price point by
positioning it as a healthier alternative to dairy milk and other planted based alternatives. The
product’s sustainability advantage, with a lower environmental impact than dairy milk and some
plant-based alternatives, can be leveraged to justify a higher price and target consumers who
prioritize sustainability. Finally, customization options can provide a unique and personalized
experience for the consumer and justify a higher price. These factors can be found in a research
article published in the Journal of Food Science and Technology on oat milk’s nutritional value,
an article in the Journal of Cleaner Production on oat milk’s sustainability advantage, and a study
published in the Journal of Sensory Studies on the consumer preference for customized products.
By positioning Boring oat milk as a premium and high-quality product the offers unique benefits,
businesses can implement a skimming pricing strategy and enjoy higher profit margins.

5.3. Distribution and Logistics (placement) Strategy

To align with the needs of it’s market, Boring Oat Milk can create a distribution and logistics
strategy that promotes sustainability and the growth of direct and online marketing. The strategy
that promotes sustainability and the growth of direct and online marketing. The strategy should
include multi-channel distribution, which could involve partnerships with brick and mortar stores
and direct to consumers distribution through online platforms. The company should consider
regional distribution centers to minimize transportation costs and reduce carbon footprint.

Supply chain management involves:

Raw Materials Assembly Dispatch Consumers

To further promote sustainability, the company can focus on eco-friendly logistics by using fuel-
efficient vehicles, renewable energy, and biodegradable packaging materials. Optimizing
delivery routes can also reduce fuel consumption and carbon emissions.

Boring Oat Milk can also leverage social media platforms and influencers to promote it’s product
and create an interactive website with features such as product recommendation, reviews, and a
subscription model. A subscription model can offer regular deliveries of the product and help the
company retain customers.

By implementing this distribution and logistics strategy, Boring Oat Milk can meet the needs of
it’s target market while also promoting sustainability and ensuring long-term growth and
success.

5.4. Integrated Marketing Communications Strategy

Integrated marketing communication (IMC) refers to the strategic coordination and integration of
various promotional tools and communication channels to convey a consistent message to a
target audience. IMC involves using a combination of advertising, public relations, personal
selling, sales promotion, and direct marketing to achieve marketing objectives.

Another set of promotion tools that can align with the target market’s media habits and meet the
company’s objectives of creating brand awareness, promoting brand engagement/interaction, and
advocating sustainability include content marketing, public relations and event marketing.

5.4.1 Content Marketing:

Content marketing involves creating and sharing valuable, relevant, and consistent content to
attract and retain a clearly defined target audience. Boring Oat Milk can create various types of
content, such as blog posts, videos, and infographics, that educate and entertain it’s target
market. The content can focus on topics such as the benefits of drinking oat milk, healthy
lifestyle tips, and sustainable living practices. To advocate sustainability, the company can create
content that highlights it’s sustainable initiatives, such as using eco-friendly packaging and
sourcing ingredients from sustainable sources. By providing value-added content to it’s target
market, the company can establish itself as credible and trustworthy brand.

5.4.2 Public Relation:

Public relations involves building and maintaining positive relationships between an organization
and it’s stake holder. Boring Oar Milk can use public relations to secure media coverage in
relevant publications, blogs, and social media platforms. The company can pitch story ideas that
highlight it’s unique selling points, such as it’s sustainable initiatives and partnerships with like
minded organizations. To advocate sustainability, the company can focus on building
relationships with journalists and bloggers who cover sustainability and environmental topics. By
building a positive reputation in the media the company can increase brand awareness and
establish itself as a socially responsible brand.

5.4.3 Event Marketing:

Event marketing involves creating or sponsoring events to promote a product or service. Boring
Oat Milk can host events such as pop-up shops, tastings, and workshops that engage with it’s
target market. The events can feature interactive elements such as product demonstrations,
games, and contests to encourage brand engagement and interaction. To advocate sustainability,
the company can focus on hosting eco-friendly events that align with it’s sustainable initiatives.
For example, the company can use compostable cups and cutlery, encourage carpooling, and
partner with other sustainable brands to create a more significant impact.

In conclusion, Boring Oat Milk can utilize a combination of content marketing, public relations,
and event marketing to create brand awareness, promote engagement and interaction, and
advocate sustainability. By focusing on sustainable initiatives and establishing positive
relationships with stakeholders, the company can build loyal customer base and establish itself as
a socially responsible brand.

5.5. Marketing Metrics

Marketing metrics are quantitative measures used to track and analyze the effectiveness of
marketing campaigns and strategies. Marketing metrics for the selected strategies of 4p’s are:

5.5.1 Product: Revenue growth rate and customer satisfaction rate

5.5.2 Price: Price premium and price sensitivity index

5.5.3 Place; market penetration rate and channel efficiency ratio

5.5.4 Promotion: Conversion rate and social media engagement rate

Revenue growth rate and customer satisfaction rate measures the success of the product strategy.
Market penetration rate and channel efficiency ratio measure the effectiveness of the distribution
strategy. Conversion rate and social media engagement rate measure the effectiveness of the
promotional strategy in generating sales and engaging with the target audience. These metrics on
provide insights to improve the marketing mix strategies and drive business growth for Boring
Oat Milk

6. Conclusion and Implications

The key findings from assignment 1 show that the demand for plant-based milk in Australia is
increasing due to health, environmental, and animal welfare concerns. Soy and almond milk are
the most popular types of plant-based milk, but oat milk is growing in popularity due to it’s taste
and sustainability. In contrast, cow’s milk consumption is declining in Australia.
The key findings from assignment 2 suggest that the Australian oat milk market is highly
competitive, with several established and new players enter the market. The market is driven by
health and sustainability concerns, and oat milk’s popularity is expected to continue to grow. The
main challenges for new entrants to the markets include brand recognition and supply chain
management.

In light of these findings, my recommendation to Boring oat milk is to ender the Australian
market. The demand for plant-based milk increasing, and oat milk is gaining popularity due to
it’s taste and sustainability. However, Boring oat milk will need to differentiate itself from
established brands in the market and invest in effective supply chain management to ensure
consistent product availability. Boring oat milk should also consider incorporating unique
flavours and marketing strategies to appeal to the Australian market. Overall, the potential
benefits of entering the Australian market outweigh the challenges, and Boring oat milk has the
opportunity to capture a share of the growing plant-based milk market in Australia.

Reference List