Hannah Rowe Darrell Lea Sandun Samarakoon Media Brief Market Analysis Product Analysis Target Audience Analysis Autobiography Day in the Life Pictography Darrell Lea The Darrell Lea product range has undergone several changes Place of purchase – from speciality stores to over 4300 stores (include Woolworths, Coles, IGA, SPA and pharmacies, newsagencies and post offices) Logo and packaging has changed to compete in these new places Product deletions and new products introduced. Product range will be launched in November 2013 Media budget $3.5 million Darrell Lea The Darrell Lea range is now accessible for all Australians as an everyday purchase, not only for occasion purchasing National market Market Analysis The Australian confectionery manufacturing industry has remained strong despite the recession, increasing commodity prices and import competition. The industry has received an annual growth of 2.3%. (Sivasailam, 2013) This stability might attract international confectionary producers, introducing new products and brands. There is a high market share concentration due to acquisitions and growth among the major companies. Kraft Foods, Nestle and Mars generate the most revenue. (Kulliney, 2012) 64% of Australians consider themselves to be overweight, and 82% are actively trying to lose weight by changing their diet (Nielsen Global Survey, 2012). There is a demand for tasty sugar free confectionery (Ireland, 2013) SWOT Analysis Strengths Reputation. Well known Australian company, long history Brand Equity Weakness The brand is relaunched, has been out of the consumers mind for a while. New place of purchase Relatively low media budget compared to competitors SWOT Analysis Opportunities New product range Freedom - no previous media mandatories Threats Mature and competitive industry Rising costs of production (Research and markets ltd, 2009) Competitors have considerably larger media budgets (AQX data) PEST Analysis Political Industry wide voluntary front of pack labelling (FED, 2012) New requirements set by Food Standards Australia New Zealand (Rethink on food fat-free labelling, 2012) Economic Rising commodity costs. A number of companies to close or scale down their Australian manufacturing operations due to increasing commodity costs. (Research and markets ltd, 2009) Demand from supermarkets and grocery stores (Sivasailam, 2013) PEST Analysis Social Obesity pandemic Health consciousness, chocolate is considered to be unhealthy Technological factors New flavouring processes and methods. For example Lindt has explored flavours such as sea salt, wasabi, black garlic and camel milk chocolate. (Australian Industry Group, 2013) What this means for Darrell lea It is a growing industry with a high market share concentration, and the competitors have larger media budgets which put Darrell Lea at an disadvantage. The product is re-launched in a new place of purchase in a time where consumers are more conscious of their health. The new packages and the Darrell Lea name will provide an advantage over competitors products. Product Analysis The retail price is higher than competitors. All Darrell Lea products are made in Australia. Little advertising has been undertaken previously. Originally a seasonal product, now it is to be purchased throughout the year. Consumers grew up with the Darrell Lea brand, but are unaware that they are now available in grocery stores. (Darrell Lea Confectionery, n.d) The products are distributed in over 4000 outlets across Australia. Competitors The increase of health conscious consumers has made competitors be innovative with their product lines and adapt them to changing consumer trends. What competitors are doing Cadbury Favourites Favourites would become the perfect solution to that timeless social dilemma: what to take as a gift to someone else's casual get-together Targeted outdoor, near and around supermarkets, and radio to catch mothers close to the decision-making moment. This was supported by online activity to further spread awareness of the new brand platform (Ward & Simpson, 2012) Choc on Choc Chocolates are handmade using a unique layering and moulding process. Communicated the brand ideals visually by using hand-crafted elements in the package, including a hand-tooled font and hand-tied chocolate-coloured ribbon. New retail listings such as Selfridges and Harrods in the UK and international catalogue listings (Warc, 2012) How much are they spending on media? Mondelez International total 23 235000/month Lindt & Sprungli Aust P/L Total 3 396 000/month Mars Snackfoods Total $9 806 000/month Darrell Lea total $115 000/month These are the top three competitors with the highest market share and media spend. (AQX, 2013) What media are they using? Assortments Monthly Media Spend by Competitors Block Chocolate Monthly Media Spend by Competitors Metropolitan Television Metropolitan Television Regional Television Regional Television Metropolitan Press Metropolitan Press Regional Press Regional Press Magazines Magazines Metropolitan Radio Metropolitan Radio Online Online Cinema Cinema (AQX, 2013) When are they advertising? 8000 7000 Block Chocolate Total $ 6000 Childrens Products Total $ 5000 Confectionery-Corporate Total $ Sugar Confectionery Total $ 4000 Seasonal Lines Total $ 3000 Mints Total $ Chewing Gums Total $ 2000 Assortments Total $ 1000 0 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 (AQX, 2013) Metropolitan television is the media vehicle that is used the most by competitors Media spend regularly throughout the year, with chocolate assortments peaking during summer months and block chocolates during winter Target Audience Analysis The target audience is the group that usually buys the groceries (V% 100, ix 153).The product is used by both the target audience and their family. (Darrell Lea Confectionery, n.d.) The products are to be positioned as a repeat purchase item. 84% The TA tends to snack during the day (V% 60.7, ix 152) on confectionery items, They are more health conscious, and lead a full and busy life (V% 81.5) (Roy Morgan Single Source Data, 2013) Demographics Aged 25-49 Employed part time (ix 202) Usually buys groceries Has children U18 (V% 92.3, ix 315) Income $70 000-$250 000+ Mean Income $137 500 (Roy Morgan Single Source Data, 2013) Children’s age distribution 0-2 Years 3-5 Years 6-8 Years 9-11 Years 12-15 Years 16-17 Years Target Audience Geographic Data Darwin - Alice Springs Tasmania Western Australia South Australia Queensland 41.6% 58.4% Capital Cities Country Areas Victoria N.S.W. incl. ACT (Roy Morgan Single Source Data, 2013) What media do they use? Use the Internet (V% 100, ix 110) Read magazines (V% 73.7) Listen to commercial radio 1-3hrs day (V% 64.7) (Roy Morgan Single Source Data, 2013) What activities do they undertake? Went to a supermarket Visited friends/relatives Used a computer at home Went to a department store Went to a clothing store or boutique Went to a newsagent Entertained friends/relatives (Roy Morgan Single Source Data, 2013) 97.60% 91.30% 90.20% 81.10% 81.00% 75.30% 73.30% Online Activities 44 % (ix 200) would consider doing grocery shopping online. The target audience are comfortable conducting transactions on the internet. 57.3% regularly paid their bills and 56.7% conducted banking transactions online. This could be since the TA are time poor, and these online activities save time. Autobiography My name is Helen. I am 36 years old and I have 2 children. I lead a busy life looking after my family and working part time and I am always looking at ways to save time. I like to unwind by curling up on the couch to read a magazine. We are currently paying off our home and have plans to invest in property in the future. My families health and well being is very important to me. I try and lead a healthy lifestyle but I do occasionally indulge myself with something unhealthy. Helen’s Week Day 6am Sleep 11pm 8pm unwind/read a magazine Wake up/Shower/ Chores/get kids ready for school 9am Drop kids off at school/ listen to radio/ billboards 10am 6pm 12pm Lunch/walk Dinner 5pm Yoga/Pilates Work/surf the web/ read emails 2pm 3pm Collect kids from school Work Helen’s Week End 7am Sleep 10pm Sleep in/ make breakfast for family 9am Visit park with family unwind/read a magazine 8pm 2pm Sun Night at home Watching TV or DVD/Video 6pm Dinner 3pm Grocery Shopping lunch with friends Pictography Family Shopping Insight The target audience are health conscious, time poor and want to provide the best for their family so they view confectionery that they purchase as a guilty pleasure. An analysis of the confectionery market in Australia, including forecasts to 2011, leading company profiles & market segmentation. (2008). Business Wire. Retrieved from http://search.proquest.com/docview/444465776?accountid=13380 Australian Industry Group. (2013, June) Confectionery Industry News. Retrieved from: http://www.aigroup.com.au Confectionery News. (2013) Mars to Expand Maltesers plant in Australia. Retrieved from : http://www.confectionerynews.com/Manufacturers/Mars-to-expand-Maltesers-plant-inAustralia%20 Darrell Lea Confectionery. (n.d.). In Facebook [Page]. Retrieved 31/08/2013, from https://www.facebook.com/DarrellLeaChocolates FED: Food regulator could ban fat-free labels. (2012, Feb 17). AAP Finance News Wire. Ireland, T. (2013). Australian-owned confectionery offers a Sugar-Free treat without the nasties. Media Connections. Retrieved from: http://mediaconnections.com.au/australianowned-confectionery-offers-a-sugar-free-treat-without-the-nasties/ Kulliney, K. (2012, 4 June). Tasty innovation ensures resilience in cash strapped, health conscious Australia. Confectionary News. Retrieved from: http://www.confectionerynews.com/Markets/Tasty-innovation-ensures-resilience-in-cashstrapped-health-conscious-Australia Nielburg, O. (2013, 22 August). Analysis: Where is confectionery production moving? Confectionery News. Retreived from: http://www.confectionerynews.com/Markets/Analysis-Where-is- confectioneryproduction-moving?nocount Research and markets ltd.; the Q1 2009 independent forecasts and competitive intelligence on australia's food and drink industry. (2009). Food Business Week, ,150. Retrieved from http://search.proquest.com/docview/203666069?accountid=13380 Rethink on food fat-free labelling. (2012, Feb 18). The Mercury. Retrieved from http://search.proquest.com/docview/921865914?accountid=13380 Sivasailam, N. (2013). IBISWorld Industry Report C1182. Chocolate and Confectionery Manufacturing in Australia. Retrieved 26 August 2013. retrieved from IBISWorld database Warc (2012, May). Gain Customers (Chocolate). Retrieved from the Warc Database. Ward, T., Simpson, M., (2012) Cadbury Favourites: Thinking outside the chocolate box. Retrieved from the Warc Database.