The aim of this assignment is to conduct a marketing analysis - that is a study of the marketing environment and strategy - of Tassal - http://www.tassal.com.au
The report should contain the following elements:
- Describe the marketing background of the company that includes key information about the industry indicating where the company fits and/or positions itself paying special attention to sustainable practices- environment, society, resources use, etc
- Describe and analyse the following marketing strategies used by the company
o Analyse the main Products, services, suppliers and customers of the company
o Place (distribution)
o (Note: for each of these Ps, please reflect on relevant theory(ies), discuss the strategies applied, and sustainability practices implemented by the company)
- Compare the marketing mix (4Ps) to its closest competitors
- Make recommendations for improvement of marketing mix for product(s) to become more competitive- Include relevant sustainability aspects.
Tassal Group limited, and its subsidiaries are involved in the hatching, farming, processing as well as marketing and selling the Atlantic salmon in Australia. It provides froze, fresh, canned, smoked and hot-smoked together with a medium range of salmon products through its Tasmania and Victoria shops. It also supplies fresh fish shops and supermarkets with fish. Australia is known for its profound ability to produce salmon, a unique kind of ingredient in the preparation of most of the Australian dishes. Salmon range of products is associated with a unique brand which is the Tassal Company. It is among the leading companies involved in farming fish globally. They have been able to consecutively satisfy the increasing demand for salmon products for years both in Australia and worldwide (Business review weekly, 2011). The company is able to manage the productivity chain of salmon products, the wholesomeness of the assets owned by the company account a critical stage of these biologically fit assets. It all commences from hatching the fingerlings within their hatcheries, feeding the fingerlings in a controlled environment and finally moving them back to the Tasmania farm. Being a leading production entity within Australia, creation of an effective strategic marketing plan is of importance to the prosperity of the business while undertaking its economic activities of supply chain management across regional markets. Developing a marketing plan acts as a booster to the company in attaining their set goals and objectives (Brinker, 2016).the report aims at analyzing the marketing approach and strategy for the company’s selected products.
The goal for marketing: Tassal group limited enjoys high domestic market profitability together with high revenue; this is a key booster for them. Creating brands that can withstand market shift trends is the company’s main goal. It if fully en
gaged in local markets by focusing on both retail and wholesale markets for its products. Gifts and preferential are plans devised by the. Tassal management and the marketers with the aim of ensuring discount earning to consumers. Planning of sales in conjunction with an efficiency of operation remain to push beyond limits the growth in incomes as Tassal sustainably result in average dollars and dollars per unit of salmon sold out of Australia’s market sales (Dimson,Marsh & Staunton,2008).
The use of marketing campaigns and advertisements has elevated their brands and driven sales to the pivotal points of retail and wholesale markets. Apart from the company driving local markets, it can change focus and become involved in fish biomass growing. Relating to the survey by the company, high fish biomass gains, conversion of feed and survival improved efficiency of the operational cost and improvement of margins. By doing this, the company’s total earnings will grow at an increasing rate than the revenues and there will be an increase in the marginal returns towards the levels they had targeted (Bruny Island Region,2011)
As part of its marketing strategies, the company engages in sustainable and responsible business practices in order to protect conserve the quality of the environment for both current and future generations (Cuganesan, Guthrie &Ward, 2010).It recognizes environmental protection as a fundamental responsibility. The company’s sustainability strategies include having in place mitigation and comprehensive risk management systems to ensure that its activities do not affect the quality of the environment (Australia Dun & Bradstreet Corporation,2009).The company has continued to grow maintaining its position in the Australian with it main brand Tasmanian Salmon as well as introduction of new brands such as Salamanca seafood and has presented itself as socially responsible company.
This is the process involving looking at right products and the products should be rightly placed on the market with the aid of the appropriate media. The whole process involves products, pricing, distribution, and promotion. Tassal brands are deeply rooted and lead against other Australian retail stores for salmon like Huon Aquaculture Group limited. They aim at providing Australian residents with better health with a varied range of products (Keillor,2007).
Products range at Tassal Company
The company deals in a wide variety of products which are classified in three broad categories such as fresh, canned, smoked or frozen products. They include Fresh Atlantic salmon portions which are supplied to all shops, including supermarkets, seafood tuck shops, and fresh fish parlors. They can be sold between 160 and 200g. They are nutritious food products and supply up to 861KJ of energy, 20.9g of protein content, have a total fat content of 13.7g just to mention the main constituents. Intakes for consumption of this particular product depend upon an adult’s average diet. The fresh portions can either be premium Tasmanian Atlantic portions or Whole Atlantic Salmon (Marich,2013).
Tasmian rashers can be smoked in beech wood chips to give delicious Smokey flavors and coupled with eggs. This produces very tasty breakfasts. This can only take a few minutes of cooking to be ready (Tassal,2016.) They supply up to 440KJ of energy peer 100g, around 11.8g protein content, and a total fat total of about 6.4g. The average diet of an adult of 8700KJ will determine the daily intakes percentage. It has also been regarded as a good source of omega 3. They can be in 100g packets of sliced smoked Tasmanian Atlantic Salmons or 200g of sliced salmons.
The company also deals in canned roasted Salmon. This is packaged in 410g spring water and can either be boneless or skinless. This product is known to be rich in smoky flavor sensations and its preparation techniques involve roasting it at high temperatures followed by the canning. Roasted salmon is very delicious and can be served along with other meals like pasta, salad, risotto or sandwich. It is perfectly ideal for a large family meal. This particular product is known to supply about 645kj of energy, 22.5 g of protein content and a fat total of up to6.8g. The daily intake percentages depend on intake requirement of the body and could escalate or go down (Brooks,2013)
The company also has Tasmian Salmon and rice. This contains fiber and is produced with grown Atlantic salmon and Mexican flavored brown rice, kidney beans and capsicum. This product is not stored using artificial preservatives, flavors, and colors. Supplies about 1170KJ of energy, 14.3 g protein composition and 13.0g of fat (Ottman,2011).
Frozen salmon, which ranges from Premium Tasmanian Lemon and cracked pepper burgers, packed in 400g. They supply about 846KJ of energy, 21g of protein and 12g of fat. The consumption, just like all other products will depend upon energy needs of an individual.The company has a varied range of users ranging from Salmon users to other seafood users potential target markets that rarely eat Salmon. In order to make potential market consumers purchase their products, consumption has to be increased in two ways: raising the frequency of available users and converting non-salmon users but seafood users. Moreover, most importantly the potential targeted customers are the females, grocery buyers between the age brackets of 25-49years (Tassal Strategy Session, 2017). These customers are to a majority married, they may not be potential customers but may represent family for shopping and this creates a larger market.
It is the amount a consumer cam pay to enjoy the salmon of choice. It is essential in making a marketing plan because it is directly linked to the profits of the firm ad subsequent survival. When the product prices are adjusted they influence the marketing strategy (Tom, 2017). The company increases prices during summer due to limited access to the products in relation to demand. The product quality is related to its prices, relatively high prices on products improves consumer acceptability. Pricing mechanisms used include market penetration pricing, skimming pricing and neutral pricing. Prices will reflect the cost of production. The current prices used by the company have been able to outdo those of their competitors since they were the award winning company for best sales (Keillor,2007).
It entails the company’s initiative to position and distribute various products in places that can be accessed by potential buyers. The company has established shops at every local level in Australia both in retail and wholesale. It has gone further to understand the market they target i.e. middle age females and married couples involved in business. Strategies in place include intensive distribution, exclusive distribution, selective distribution, and franchising. The company has developed an online web page to strengthen their demand and supply chain management.
It is an essential marketing component of the company. They use promotion to boost their brands i.e. de cost to be highly recognized and increase average sales. Elements of promotion include organizing sales, good public relations, advertising, and promotion of sales. The company uses print media, television and radio and the internet (mostly web pages) to make known their value added products. The company provides sponsorship deals to hospitals that would encourage patients to use their products in improving their health. Its main competitor Huon Aquaculture used lower pricing as a means to promote their products (Tybout & Calder,2010).
Comparison of the marketing mix to the competitors
It is done with relationship to the competitors of Tassal. The company has to analyze activities of the competing firm. This leads us into discussing the SWOT analysis (strength, weakness, opportunity, and threats) under marketing competitor analysis. In analyzing its outcome the following steps were followed: the company analyzed its internal and external environments, it later performed the SWOT analysis and documentation finally an action plan was prepared.
This analysis is required by the company for and during the launch of its products, evaluation of the competitor, making a strategic plan, workshop sessions, planning, and personal development, evaluation of products and decision making (Oddy,2008).
Tassal Group is thriving due to the following reasons: the firm has abundant resources in terms of finance, its brand names are well known to consumers, it enjoys economies of scale, the cost of producing their raw material is low, it has employed talented managers, its marketing skills are superior, the product distribution channels are well established and the decline in sales of substitute commodities (Wallis,2011)Weaknesses
It can experience a drastic decline in sales due to minimal financial resources being available, delays and inefficient ways if product distribution, employees lack the desired skilled in handling its operations and if they are underdeveloped, finally poor management causes a company’s downfall (Weber, 2009).Opportunities
The company enjoys the economic growth that is rapid, rival firms being relatively complacent, changes in consumer tests and preferences, captive nature of their product to new users, a booming economy, decline in sales of substitute products and minimum government regulations.Threats
They weaken Tassal operations through foreign competitors in the market, new substitute products being introduced by rivals, a decline in the salmon lifecycle, and negative shifts of preference of consumers, dynamic strategies of rival firms and an increase in regulations especially health policies (Weinberg,2009).
One of the policies by this company is on improvement on its returns. The group would wish to deliver returns that are acceptable and a few strategies have been put in place to this effect. They had already targeted statutory ROA at 15% in their 2015 financial year. This target was streamlined and made possible by keeping some price and even hiking it in all necessary circumstances. They also strategized market within the locality promoting and supporting all their major customers. They also reduced the production costs in various sections of their operations. To achieve this, there has been the aim of increasing the biomass of fish through any of the various steps, for instance, primary harvest class of fish for the financial year 2015. Also, focusing on Excellency in all operations with an aim to improving the cost of fish (Tybout & Calder,2010). There are number of strategies that the company can use to improve its marketi8ng mix.
Efficient marketing, considering time frames and focusing on product campaigns and promos. This is going to improve the company’s quality of products and returns. Another focus is on a program aimed at increasing efficiency of the operations. This could mean increasing the biomass of fish, which puts in place the new harvest approaches and all smolt inputs. On sustainability, this company has been rated as a global leading company this is because of its continued consistency in the supply of fresh seafood. Tassal has received its full accreditation across all its marine farms. They have also helped to reduce overreliance of fish meals and fish oil feeds. Replacing nets from treated copper nets to kikka nets is also another step taken by the company towards sustainability, use of antibiotics and creation of full ASC dashboards, which help in making real time reports on any fish losses, employment of personnel in the field, health and a technician in the lab together with a health officer for the field. The company focuses on transparency in all its undertakings too, they observe environmental regulations and implement them although transparency at this can be questioned (Pride & Ferrell,2010).
For Tassal to be effective the company also needs both online and offline presence in order to maintain a continuous engagement with their customers. Marketing mix keeps the company information to the target audience. To effectively achieve this company can continue to improve their use of Business cards and brochures, LinkedIn account, blogs and websites, press releases to ensure that as much information reaches the public and also encourage the use of emails for communication. The company can also engage in continuous research to identify market trends and adjust their operations to maintain their competitiveness
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