Muller Light Situational Anlsyis Report

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CONTENTS

PAGES Situational Analysis

P r o j e c t A i m s 1 - 2 M e t h o d o l o g y 3 - 4 P r o p o s e d S t r a t e g i e s 6 A b o u t M u l l e r L i g h t 7 - 8 M a r k e t O v e r v i e w 9 - 1 0 I s s u e s & C h a l l e n g e s 11 - 1 2 C u s t o m e r A n a l y s i s 1 3 - 1 4 C o m p e t i t o r A n a l y s i s 1 5 - 1 8 M a c r o Tr e n d s 1 9 - 2 0 C o r e C o m p e t e n c i e s 2 1 - 2 2 S W O T 2 3

Brand Strategy

L o n g - Te r m G o a l s 2 5 T h e 5 m a r k e t i n g P ’s 26 Ye a r O n e S t r a t e g y 27-30 Ye a r Tw o S t r a t e g y 3 1 - 3 7 Ye a r T h r e e 3 8 - 3 9 Ti m e l i n e 4 0 B u d g e t 4 1 K P I ’s 4 2 Bibliography & Referencing

43-

Ellie Nicholls (N0668833) Word Count:


Project Question

What improvements can be made to Muller Light’s social media presence in order to drive sales and increase customer interaction?

Project Aim The aim of this research is to propose three to five improvements to MullerLight’s social media platforms including Facebook and Instagram to create an integrated marketing campaign for the brand.

Project Objectives 1. Conduct primary and secondary research into the yogurt market in particular: consumer tastes, health concerns and buying habits. In addition to, reviewing competitors and the current user experience provided by MullerLight to offer recommendations that are innovative and will protect the brands market leader status. 2. Create 3-5 improvements to MullerLight’s existing strategies, including improvements to social media platforms and creating new partnerships, that in turn are expected to increase sales by 3-5% over the coming three years. 3. Correctly implement these improvements over the course of three years (research to implementation). 1


Summary

As of 2016 Mullerlight’s sales decreased by 2.2.% as a result of numerous factors, including price wars conducted by supermarkets. Upon reviewing the brand, it was found that Mullerlight’s social media presence is relatively weak; the brands biggest following online is Facebook with 98,800 followers and a weak following of 3,600 on Instagram. Their weak social media following, presents many threats to the brand as more consumers look for brands that integrate their bricks and mortar sales with online activities. In order to protect their market leader status against competitors such as Activia and Actimel, is it vital that the brand reviews the following i m p r o v e s t o h e l p e l e v a t e t h e i r c u r r e n t m a r k e t i n g s t r a t e g y.

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Methodology Primary Research Survey

A survey of 81 participants was conducted based on a series of questions regarding the yogurt and yogurt drinks market. The aim of the survey was to gain insight into the current market drivers and buying habits of MullerLight’s target consumers. The survey was aimed at both males and females aged 18 to 66+ years of age, to gain a deeper understanding into MullerLight’s ranged demographics. H o w e v e r, t h i s m e t h o d w i l l h a v e i t s l i m i t a t i o n s a s i t is likely that the distribution of the survey, which was posted via social media, will not be fully r e p r e s e n t a t i v e o f t h e c o r e c o n s u m e r. D u r i n g t h e u s e r testing stage, key respondents are likely to be used.

Focus Groups

A focus group will be conducted using females aged 18-40, to obtain opinions on the proposed improvements, their aesthetic and practicality. The focus group will include current lapsed and new users of the MullerLight brand, to determine h o w e f f e c t i v e e a c h s t r a t e g y w i l l b e f o r e a c h t y p e o f u s e r. The feedback given by participants will give MullerLight an outline oF the how these improvements will be received by customers generally and allow the brand to make amendments, prior to launching.

User Trials

A Once the new features have been designed, user trials with participants aged 18-55 will be ran to ensure the improvements are both easy to use and functional. The user tests will include a range of tasks including, scanning the new snapchat code and navigating to social media pages, copying recipe plans provided by MullerLight and testing the new pot and spoon design. 3


Q1. How old are you? Q2. How often do you consumer yogurt and/or yogurt drinks? Q3. What healthy yogurt/yogurt drink brand are you most likely to purchase? Please select three. Q4.What features of a ‘healthy’ yogurt/ yogurt drinks is most appealing to you? Choose two. Q5. Have you become more aware and concerned of suagr conent in foods since the recent sugar tax increase? Q6. Would you purchase a dairy and/or lactose free yogurt/ yogurt drink mae by MullerLight, for you or someone in your family? Q7. What celebrities were you aware of being MullerLight’s brand ambassadors? Please select from the following. Q8. What factors contribute to your decisions when buying yogurt? Please select three. Q9. How would you describe MullerLight? Please select three. Q10. Would you be interested in special recipes that use MullerLight as ingredient alternatives?

Rate of interest for MullerLight used in recipes.

What healthy yogurt/yogurt drink brand are you most likely to purchase? Pick three.

54%

4

MullerLight

52%

Activia

40%

Actimel

31%


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Proposed Strategies Parnertship with ‘Fabletics

- Kate Hudson as MullerLight’s new brand ambassador - Fabletic sportswear give aways - Fabletic inspired pot designs on promotional packs

‘Cooking with Muller ’ Campaign

- Introduce ‘Cooking with MullerLight’ videos weekly across Facebook and Instagram platforms - Encourage user generated content

‘Snapcode’ Campaign

- Introduce ‘Snapchat Codes’ onto pot designs - Unlocks a temporary MullerLight themed filter - Users are navigated to the brand’s social media sites

Pop-Up Events

- Touring the UK -Pop up stalls,exercise classes and live demonstrations -Brand Ambassador appearences

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Müllerlight

Müller UK & Ireland is owned by the Unternehmensgruppe Theo Müller. It employs around 12,000 people in a business which comprises two distinct business units: Müller Milk & Ingredients and Müller Yogurt & Desserts. Müller Yogurt & Desserts is the UK’s leading yogurt manufacturer, responsible for major brands such as Müller Corner, Müllerlight and Müller Rice. Muller has held the market leading position in the UK’s yogurt segment since 1995. MüllerLight in particular, has proven to continue to grow in the spoonable yogurt market, as thebrands strong emphasis on health credentials has boosted popularity amongst the ever growing health-conscious consumer. MüllerLight was launched in the 1990’s with just three products in the sub-brands portfolio. Now, MüllerLight is largest brand within the Müller conglomerate, selling 13 pots per second across the UK. The brands retail sales value was £171.1m in 2017 and is the number one brand in the chilled yogurt pot market.

“MüllerLight is the UK’s number one brand in the chilled yogurt pot market.” -.MullerLight’s Marketing Team

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Product Portfolio

MullerLight offers a wide range of delicious yogurts and dessert pots, all at under 99 calories. Each range comes in multiple flavours, including limited edition styles inspired by tastes of exotic countries.

Singles

Goodies

Fat free yogurt. Nine traditional flavours including strawberry, toffee and vanilla. Limited edition ranges available.

Lighter version of the popular Muller corner yogurt with crunchy biscuit pieces.Available in three flavours.

Fruitopolis

Chocolate Fix

Combines fat free Greek-style yogurt with a layer of fruit. Less than 90 calories and available in 3 flavours.

Chocolate dessert pot at 99 calories, available in milk chocolate and salted caramel flavours.

Kremas

Greek Style

The UK’s first whipped Greek-style yogurt, fat free and less than 99 calories. Available in three exotic flavour combinations.

Greek style yogurt in six flavours, fat free and now with 0% added sugar. Available in 4 packs and large 500 gram tubs.

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Market Overview MüllerLight UK operates within the diary sector, in particular the spoonable yogurt market and the healthy yogurt and dessert market. According to a Passport report by Euromonitor, yogurt value growth increase by 1% in 2017 to reach £1.8 billion in the UK. Mullerlight, a sub-brand for the multinational company Muller, continued to see a rising pattern for volume sales. Whlst, suffering decreased sales value by 2.2% over the 2016-2017 period due to the brands use in supermarket price wars. However, this appears to be an overall trend for the ‘spoonable yogurt market’ with competitors such as Activia (Danone) suffering larger decreases in sales value by 10.4%. VALUE

2014/15 £m 177

Activia (Danone)

Yeo Valley

MullerLight

% 10

2015/2016 £m 185

% 11

2016/2017 £m 181

%

% change from 20152017 11 -2.2

191

11

163

10

146

9

-10.4

97

6

109

6

112

7

+2.8

SMART Objectives

S P E C I F I C : Each marketing strategy will be carefully selected so

that they are realistic and achievable within a 3 year time frame. These will be chosen after a situation analysis on the brand as well as a SWOT analysis to identify the opportunities the brand has.

M E A S U R A B L E : The success of each strategy will be measured

through KPI’s such as impressios and shares on social media campaigns and increased sales.

A C T I O N A B L E : MullerLight should be capable of achieving these strategies due to their skills in marketing.

REALISTIC:

The proposed strategies are well within the MullerLight marketing budget. They are also realistic to the brands aims as they have a strong focus on healthy living.

T I M E : The objectives will be measured every 3-6 months of each year in order to identify if there any improvements needed and to assess brand growth and profit levels. 9


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Issues & Challenges

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S l o w G r o w t h The maturity and saturation of the spoonable yogurt market makes it difficult for the segment to find new

users, this is particularly evident for MullerLight as the brands sales decreased by 2.2% from 2016/2017. This is a particular issue for MullerLight as newer brands such as YeoValley benefited from sales increases of 2.8% for the same year; such brands have competed well against more established brands by maintaining a large product portfolio to cater a variety of different consumer needs such as: Lactose-Free yogurts, Probiotic Yogurts and breakfast granola and yogurt bowls. Whilst, MullerLight regularly innovate with flavours, it is clear that this is not enough to keep consumer interest and engagement in the brand high.

Increased Competition

Supermarket own-label yogurts performed strongly over 2016/2017, with a growth of 2.1% According to Mintel. This is due to price cuts in the supermarket own-label yogurts as part of on-going price wars and increased spending towards research and development; supermarkets are now producing more sophisticated yogurts, boasting dietary and health benefits such as Calcium, Vitamin C and D. Consequently, low prices and increased health benefits have furthered consumers incentives to switch in a market that struggles to maintain customer loyalty. This could create long-term issues for MullerLight as own-labels are now a direct competitor, perhaps even having what consumers may consider greater health benefits. To help ease the effects of increased competition, it may be necessary for MullerLight to develop their recipe by adding vitamins and marketing this alongside their fat free USP.

S u g a r Ta x I n c r e a s e

Targets for yogurt manufacturers, including MullerLight, to cut sugar in their products by 20% by 2020, were set by the UK government in 2016. A questionnaire [Appendix 1] found that 49% of respondents felt ‘low in sugar’ was one of the most important factors whilst purchasing yogurts; illustrating a high concern for sugar content for many yogurt users/buyers. As a result of this, it will be necessary for MullerLight to show themselves as proactive on this issue and should consider reformulation as an option for reducing sugar in their products. An average pot of MullerLight yogurt includes up to 8 grams of sugar, rules on nutritional claims from theEuropean Food Safety Authority (EFSA) state that a low-sugar claim can only be made if a product “contains no more than 2.5g per 100ml for liquids”. Failing to reduce sugar in products could mean MullerLight has to increase prices due to the tax, thus making them less price competitve over ‘healthier’ brands. However, consumer concerns around artificial sweeteners are likely to prove a significant barrier to the use of these as a sugar alternative, MullerLight holds market leader status, suggesting the curent recipe is favoured by consumers, reformulating the recipe could affect future sales, if it is negatively received by consumers.

Vitamin D Diets In 2016, health advice was issued regarding Vitamin D in diets. It is recommended that adults receive 10 micrograms of the vitamin each day, however it was stated that this was difficult to receive this amount from most dietary sources. Whilst, MullerLight offers little health benefits in comparison to competing brands such as Yakult, Activia and Actimel who claim benefits from probiotic bacteria in their products. In light of this health advice and a 2016 Vitamin and Supplements report conducted by Mintel [Appendix 2], MullerLight should consider investing into Vitamin D-fortified yogurts. By tapping into this relatively unexplored market MullerLight could increase consumers perceptions that they are a ‘healthy’ brand, including to younger health-conscious males. 12


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Customer Analysis

Pen Portrait Lucy is a 29 year old, living in London as a receptionist and part-time beauty blogger. Fashion is a huge part of Lucy’s life, with shopping being a regular hobby of hers; however, since moving to London she has realised the importance of saving. Lucy loves to look and feel good, attending weekly Zumba classes and is a member of a local jogging club. On the weekends, Lucy does allow herself to induldge: cocktail nights and meals out with her friends. During the week she tries to balance this out by watching watch she eats. Lucy is an optimistic and open-minded young woman, which allows her to reflect on events around her, this inspires her to be adventurous and try new things, as well as to not take life too seriously. Her on the go lifestyle means her iPhone is her number one source of entertainment and news, she often downloads magazines such as Elle and Closer to keep up to date with her favourite celebrities. In the future, Lucy would love to progress further as a fashion blogger and work within the media and also go travelling around the world.

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Competitor Analysis

Activia, owned by Danone, is a brand that specialises in probiotic yogurts. Activia has a range of 8 yogurt products, including probiotic dailies (drinkable yogurts), light yogurts, lactose-free yogurts and Greek yogurts. Activia’s main marketing strategy is based around the health benefits from consuming probiotic yogurts, claiming that Activia may “help reduce the frequency of minor digestive discomfort, when consumed twice a day for two weeks as part of a balanced diet and healthy lifestyle.” A survey (shown in Appendix 1) that Activia was the second most popular yogurt brand in the market; 39% of said they would buy Activia. A strength of the Activia is that the brand’s large product portfolio caters to many different tastes, this is a benefit because they have tapped into different segments of the market thus maximising sales growth. Activia and other Danone brands are the highest-spending advertiser (in the spoonable yogurt market) in 2016, accounting for a third of total adspend. However this spend on marketing appeared to have little effect on the brands sales, in the year 2016/17 Activia’s sales fell by 10.4% and has been decreasing since 2013 according to Mintel.

Organic yogurt brand YeoValley stormed into the UK’s top 5 yogurt brands in 2013 and has since progressively gained momentum in sales. The brand accounted for 6% of total yogurt sales in the UK, with sales worth £97 million (2.4% increase from the previous year). The brand operates within several markets and has a large product range named ‘Yeogurt’ which includes % fat Greek yogurt, natural yogurt and lactose-free yogurt. A strength of YeoValley is that they have a strong emphasise on British Heritage and organic recipe, both of which have a strong appeal to consumers. A weakness however, is that the health benefits related to eating YeoValley are not marketed to their consumer which may allow them to compete more effectively as a ‘healthy’ yogurt brand.

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Danone’s Light & Free, is MullerLight’s closest competitor in terms of the brand’s overall style and positioning of being an enjoyable fat free yogurt available in a variety of flavours. MullerLight and Light & Free alike both have a large focus on Greek style yogurts, 0% fat and predominantly focus on the 18-45 year old consumer. A strength of Light & Free is that they have already made successful collaborations such as the exclusive music campaign with Spotify. The partnership offers unique music prizes to customers, allowing Light & Free the opportunity to bring their brand attributes to an audience of relaxed and engaged music fans. A weakness of the brand is that their product portfolio is a small collection, just focusing on Greek yogurts, this will limit their reach to customers who may enjoy other styles of yogurts.

Supermarket Own-Label Supermarket own-label yogurts performed strongly over 2016/17. According to Mintel they grew in sales by 2.6%. Although, volumes grew ahead of values as the retailers cut prices for their own-label drinking yogurts as part of their ongoing price wars. The rise in own-label volume sales was helped by increased new product development activity, several retailers built up their yogurt ranges over the last two years. For example, Asda was especially active in innovation and developing new products during this period, including launches emphasising products calcium and Vitamin C, D and B6 content prominently on-pack. This should appeal to the 22% [Appendix 2] of yogurt users who see vitamin content as making a yogurt healthy. It is likely that own-label yogurts will continue to grow in popularity with consumers as they are cheaper in price than leading brands but offers the same health benefits.

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Brand Positioning Positioning map to illustrate brands in terms of their health benefits and price per single pot (prices were taken from supermarket, Asda).

Positioning map showing brands in the yogurt markets consumer trust in accordance to price per pot (prices were taken from supermarket, Asda).

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Brand Positioning

Positioning map to illustrate brands in terms of their flavour and price per single pot (prices were taken from supermarket, Asda). Flavourful

High Price

Low Price

Flavourless

Summary As illustrated in the three brand positioning maps, MullerLight operates in a highly compettive market. Typically in all three maps, MullerLight is positioned closely to Light & Free, YeoValley and Activia due to simialr price points and offering multiple flavours. The first positioning map illustrates a gap in the market for a yogurt that offers multi health benefits. MullerLight should consider improving their recipe to include less sugar, probitoic bacteria or multiple vitamins in order to gain a USP as a highly healthy yogurt brand.

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MACRO TRENDS

Health & Wellness Progressive health and wellness consumers and the emerging influence of Gen Z are increasingly significant in redefining food culture, despite being a minority group in terms of overall numbers. However, by sharing their knowledge to mainstream consumers who are looking for guidance in the area, this minority may cause significant disruption to brands within the health and wellness food/drinks market. This will particularly affect MullerLight as progressives are moving away from ‘condition management products’ such lowering cholesterol or blood pressure, and dieting products that are low fat or low carb according to Hartman Group analysts. Instead, they consider quality of the food specifically fresh and less processed. Therefore, consumers are likely to move away from products that are fat-free and towards quality fats found in items such as nuts, avocados and dark chocolate. MullerLight’s USP is its 0% fat and low-calorie recipe, if such qualities of their products are no longer desired the brand could see a shift in consumers buying more ‘natural’ brands such as YeoValley. It may be necessary for he brand to consider using ‘natural’ sweetners or other quality fats in efforts to satisfy progressive health consumers.

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Ageing Population The UK population is ageing, by 2040 it is projected that nearly one in seven people will be over the age of 75 according to the Government Office for Science. This change in demographic across the UK, may affect MullerLight as usage of spoonable yogurt is highest among under 35’s and declines after the age of 45, falling to its lowest among over 55’s. The number of over 55’s is expected to increase by 10.3% by 2022 and this is likely to affect MullerLight sales growth in the future as older generations require products that are aspirational and suit their lifestyle. To increase growth and remain popular amongst the majority of consumers, MullerLight should conduct market research into the over 55’s to help with research and development for products aimed specifically at the older generationthis would help them to compete with the likes of Benecol and Actimel who market predominantly at over 55’s.

Smart & Connected Revolutionary changes in technology and globalisation has changed the way consumers today go about daily activities, from interacting with friends, shopping and reviewing. As a result of this, brands are expected to have a strong online presence which is representative of their values and overall aesthetic. MullerLight will be affected negatively by the constantly changing technology if they choose not to adapt to consumer demands. Therefore, MullerLight should improve their online channels and the way they communicate with customers in a way that is consistent with their overall brand.

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CORE COMPETENCIES

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Thick and creamy recipe favoured by customers: Notably MullerLight is thicker and creamier in comparison to other diet brands.

Effective and reliable relationships with B2B customers, including Tesco, Asda and Morrisons.

Product Development: offers over 40 different pots in new and exotic flavours.

Distinctive brand propostion that focuses on a customer group looking for guilt free desserts.

UK’s market leader for spoonable yogurts and desserts. Large market share creates huge competitve advantage and barriers to entry.

High brand recognition

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- High sugar content: Each pot contains 8 grams of sugar, less ideal product for those concerned with sugar content. This will also affect the brand in new sugar tax laws.

- Innovation: MullerLight is devoted to continue innovating its products and packaging, releasing new flavours and pot styles regularly.

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- Turn focus to consumer concerns on sugar by reducing grams per pack or changing recipe to use natural sweeteners.

- Focus on health & welless trend to target wider audience and meet consumer demands.

- Demographic change will lead to a higher demand in new products: the ageing population gives opportunity for the brand to focus on older consumers and create a yogurt product suited to their needs.

OPPORTUNITIES

- Thick and creamy recipe: Notably MullerLight is thicker and creamier in comparison to other diet brands.

- Uncertain future for the economic state of Britain.

-Fluctuation in milk prices from UK farms, unreliable and unstable supplies.

- Increased competition from supermarket own-labels and international brands.

THREATS

- Increased competition: Growth in sales from own-label yogurts.

- Weak social m edia presence: I n comparison t o competitors MullerLight has a s mall social m edia presence, showing inconsistencies with their offline and online presence.

- Market S aturation: The spoonable yogurt market is predicted t o have relatively slow growth and MullerLight competes heavily against similar ‘healthy brands’.

- Sourcing local: dairy supplies are based Market Drayton, Shropshire. In 2010/11, over 90% of Muller’s demand of milk was sourced from Market Drayton.

- High customer trust: MullerLight is the UK’s number 1 yogurt brand therefore it can be considered a trustworthy brand.

WEAKNESSES

STRENGTHS

SWOT Analysis


Brand Strategy

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L o n g - Te r m Goals W h e r e D o e s T h e B r a n d Wa n t To B e L o n g - Te r m ? Remain Market Leader MullerLight aims to maintain its market leader status and gain back lost market share.

I m p r o v e ‘ H e a l t h y ’ Yo g u r t Perceptions MullerLight to be perceived as a ‘healthy’yogurt brand, products made to look easy to use in everyday life.

Improve Social Media Platforms Increase social media following, accessibility and improve overall online experience and aesthetic for users.

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T h e 5 P ’s PRODUCT

The MullerLight pot takes on a new designer collaboration with gym-wear brand Fabletics. The new design will act as the foundation for the three year strategy and should help generate larger sales.

PRICE

The fabletic collaboration pots will remain the same price of £0.68 to remain competitive and to continue to meet consumers expectations of an affordable yogurt brand

PLACE

Pop-up stores and exercise events throughout the third year will be located in busy places such as university campuses, train stations and shopping centres. All UK supermarkets will also stock the new pot.

PROMOTION

An online media campaign will be created based on the ‘Meals with MullerLight ‘hashtag and recipe tutorials which will enourage customers to create their own user generated content using MullerLight products. This concept will be used across the full three yearsand will be incorporated into the pop-up stores via live tutorials and tasting sessions.

PEOPLE

Fitness enthusiasts Kate Hudson and Louise Thompson will be collaborating with MullerLight to elevate the brand awareness of the new pot and online campaign ‘Meals with MullerLight’. These influencers will form a relationship with the brand and help increase MullerLights reach through posting about the brand on their own social media accounts.

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YEAR ONE

Hypothesis

- To increase user engagement levels by including interactive elements on pots that direct users to various social media pages. - To increase user engagement and increase sales, through an online video campaign. Year one will focus on improving MullerLight’s social media presence, by actively posting interesting content that will engage their target market. As a addition to their current pot designs, MullerLight should include a Snapcode as an interactive visual that will elevate other online campaigns, such as the proposed ‘Meals with MullerLight’.

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‘ M e a ls wi th MüllerLight’ Ca mpai gn

Meals with MullerLight’ is a campaign that will encourage consumers to incorporate MullerLight into recipes such as cheesecake, breakfast bowls and smoothies. The interactive concept will provide viewers with step-by-step recipes and follow the same aesthetic as their current Instagram posts. The goal of this campaign is to create an online community which will offer advice on how to lead a healthier life whilst still enjoying delicious food using MullerLight products. The campaign will be frequently posted on both the brands Instagram and Facebook videos and photos with the hashtag ‘Meals with MullerLight’. The campaign should encourage users to make and share their own ‘Meals with MullerLight’ photos and videos, reinforcing the idea that MullerLight is a lifestyle choice and will not come across as pushing exercise and dieting. 54% of survey participants said they would be interested in recipes using Mullerlight as a healthy alternative. The campaign has the potential to prompt user generated content in which customers share their own recipes online. According to Forrester, 53% of users aged 18-29 are active Instagram users. Thus, makig it a likley success as this is a huge proportion of the brands target consumer. 28


‘Snapcode’ Campaign

The second part of strategy will include a ‘SnapCode’ campaign, which will help to increase user engagement levels by including interactive elements on pots that direct users to various social media pages, including the Instagram page thus helping to promote the ‘Meals with MullerLight Campaign’. Using a Snacpchat code will increase brand awareness as snapchat is one of the most popular platforms of social media used with the 18-25 age group. In 2017 Snapchat have 300 million users already which is expected to continue growing over time. Having a Snapchat code for Muller Light will not only create further brand awareness but will also create brand engagement with more consumers using the snap code. Furthermore, a snap code campaign may widen the brands target market to teenage girls who predominantly use the app, this will be beneficial to the brand as it may result in increased sales with this particular age group.

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Benefits

- Reach: According to Business Insider, Snapchat users make over eight million Snapcode scans a day. Since these users are already actively using the Snapchat app, your Snapcode campaign does not feel like an intrusive interruption to their routine behaviours. - Low Costs: Snapchat does not charge advertisers for using Snapcodes. The only costs MullerLight will incur for this campaign is the printing of the actual code onto products such as wrappers and the pots. - Navigation: Snapcodes can direct users to external website, this will benefit MullerLight as users can be redirected to various platforms such as Instagram or Facebook, dependent on which campaign they use. - Data Collection: Advertisers can use Snapcodes to collect useful data and behaviours. For example, MullerLight can create the option to prompt users to enter their names and email after scanning the company’s campaign Snapcode.This data collected can contribute to future campaigns and strategies. An example of navigate users

how incorporating Snapcodes into their online campaign could to other websites, thus elevating other campaigns further.

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YEAR TWO Hypothesis

To increase brand awareness by partnering with a popular sportswear brand.

January - March 2019

Focus groups conducted, with emphasis on the pot design and competition. Additionally, free samples will be handed out in busy cities and towns, to create a buzz on the new product.

April - May 2019

Count down via social media sites to reveal the new faces of MullerLight.

June - December 2019

Introduction of new TV and Facebook ad’s featuring Kate Hudson. Louise Thompson to regularly upload sponsored posts to Instagram and snapchat platforms

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Partnership with

MullerLight currently have a partnership with British Athletics, however a survey [Appendix 1] found there was limited awareness of this, particularly in regard to their brand ambassadors. Results found that less than 5% of respondents were aware that British Athletes, Adam Gemili and Dina Asher-Smith, are MullerLight’sbrand ambassadors. There was also a strong misconception that Muller Corner ambassador Nicole Scherzinger was MullerLight’s ambassador. It is vital that MullerLight make a clearer connection between themselves and their partnership, as it could strengthen their market position as a ‘healthy’ yogurt brand. In order to, boost awareness of this partnership and continue to inspire the British public to enjoy and become involved in athletics,MullerLight should consider making an additional partnership with the sportswear brand Fabletics. Fabletics is a suitable brand for MullerLight to partner with because their target consumers align well with their own, women aged 21-45. They also share similar values to MullerLight, to inspire women to enjoy their lives and love the way they look.

At Fabletics, we create clothing that inspires you to stay active, whether that means competing in an iron(wo)man competition, sweating in the studio, or chasing after your kids. Our on-trend designs are high in quality at prices you’ll feel good about. This is where the inspiration starts. Beyond the clothing, we foster a community of people who embrace our mantra – “Live Your Passion” – every day. 33


Pot Design

To effectively intergrate MullerLight’s new partnership with Fabletics, Muller should design special promotional packs featuring patterns inspired by Fabletics. The eyecatching, fun patterns will be accompanied by a compeition which will act as a visual aid to signify to customers that it is a promotional pack.

Fabletic pattern designs for collaborative yogurt pots

to es anc ith Ch in w w

The competition will offer customers the chance to win free fabletic outfits by entering a code into the MullerLight website. Not only will this incentivise customers to buy the pot but it will also drive online traffic to their competition website. The new pot design will first be introduced onto the ‘Goodies’ pots.

GOODIES

S E I D

O O G

Peel Here To Win

Prototype design of the Muller and Fabletic partnership Goodies Lid

Prototype design of the Muller and Fabletic partnership Goodies multipack sleeve

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Brand Equity

By collaborating with Fabletics, MullerLight will be making their sponsorship to British Athletics and healthy living far clearer. Fabletics is a women’s sportswear brand, which has seen rapid growth over the last two years, the athletic company announced a 200% growth from 2014-2016, making it one of the fastest-growing companies in the athleisure market. The brands success has been influenced by its marketing technique of using aspirational fitness guru and actress Kate Hudson in their campaigns. Fabletics is offering more than just gym-wear but a lifestyle too that comes with wearing their garments. Therefore, if MullerLight collaborate with Fabletics, their customers may begin to make a lifestyle association with MullerLight too: as they are a 0% fat yogurt brand with strong ties to British Athletics and a sports-wear brand. MullerLight’s sponsorship aims (with British Athletics) are to inspire Britain to be more active and enjoy a healthier lifestyle. By running a competition involving prizes of sportswear this is giving women, who are trying to lead a healthier lifestyle by consuming MullerLight products, the means to take part in more exercise whilst looking stylish and on-trend – something the MullerLight customer cares about. Such a prize should drive sales as more customers want more chances to win an outfit. Furthermore, MullerLight’s affordable price of £2.50 for a 4x107g multipack in comparison to the cost of the outfits up grabs (£57 on average) incentivises the reason to buy MullerLight over competitors.

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Brand Ambassadors K AT E H U D S O N

Kate Hudson is an Ameican actress and fitness enthusiast, she is also the founder of Fabletics. Hiring Kate Hudson as a MullerLight brand ambassador would help elevate the partnership with Fabletics because of her high profile in health and fitness - consumers would perceive as being favourable to MullerLight and may encourage them to purchase products because of this. Kate Hudson is a public figure who many women would aspire to be like: healthy, in shape and successful, this may encourage them to purchase MullerLight to feel like they can achieve anything she can. More over, Kate Hudson could feature in the fabletic collaboration TV adverts to raise more brand awareness. Kate could make special appearances at pop-up events which would attract a lot of attention, as the events will be percieved as exciting. During these events, Kate could run an exercise class and take photo opportunities with fans - thus spreading the MullerLight name further as it can be seen in these photographs.

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LOUISE THOMPSON

Louise Thompson is a British reality-tv star and newfound fitness finatic.Louise would make a good brand ambassador for MullerLight because she aligns well with what the brand represents: she is a notable Britsh figure and often posts on social media about loving yourself and having body confidence - thus making her appealing to MullerLights audience. Her ambassadorship will include featuring MullerLight in various social media posts including Instagram and leading a live exercise class at one of MullerLight’s pop-up events.

Mock up of an online post made by Louise Thompson. Louise has over 1.1 million followers, thus her sponsored MullerLight posts will be seen a broad reach of consumers.

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YEAR THREE

Hypothesis

To increase brand awareness and engagement by opening pop-up stores and exercise classes across the UK. Year Three will help to elevate ‘Meals with Muller ’, the fabletic collaboration and brand ambassador strategies. Pop-up stores will strategically tour the UK, in particular busy cities and towns to target a wide range of consumers. The pop-up stores will include personalisation stations, in which the customer can add their own toppings to their yogurt. There will also be live recipe demonstrations and pop-up exercise sessions. 38


Pop-Up Events

The UK events will run from May to July, on the run up to summer when there is lots of pressure on women to look ‘beach ready’. MullerLight will ease the pressure off women by running events with relaxed atmospheres creating a body positive community. The events will run in London Westfield, The Bullring Birmingham and Trafford Centre Manchester. These busy shopping areas should attract a broad range of consumers and gain lots of attention. The event will be publicised via social media accounts to ensure consumers know when MullerLight will be in a city near them. The success of the events will be measured by head count and particpation levels in events. If there is a positive reaction, MullerLight could run these events yearly.

Day 1

Pop-up store opening: The store will open to the public where free yogurt pots will be handed out to consumers. The may choose to personalise their yogurt at the topping station for an added charge.

Day 2

Live Exercise Class: Ran by one of the brand ambassadors a free exercise class will take place, consumers will be encouraged to take part and will be shown a variety of simple routines/ moves to do at home. The exercise class will be fun and lighthearted and will suit the target consumer who may have limited experience with exercise. Participants will be filmed as part of footage for one of the brand ambassadors social media posts.

Day 3

Live ‘Meals with MullerLight’ Demonstration: The demonstrations will be ran by either a member of staff or a brand ambassador. A small audience will be invited in to watch demonstrations of recipes using MullerLight. After, some audience members will be asked to try the final product, this session will be recorded as footage for the ‘Meals with MullerLight’ campaign. 39


Budget POP-UP STORES In popular locations such as the Bullring, Birmingham or London Westfield shopping centre, the rent of pop-up store can range from £30,000 to £40,000. MullerLight would need to consider the time frame for rent, including setting up the pop-up events alongside the interior design and the cost of the yogurt freebies. This strategy would need to gain lots of media publicity and increase sales for it to be worthwhile.

COLLABORATIONS A collaboration with Fabletics would be costly for MullerLight and the price of this will have to be discussed with both brands. However, both brands will benefit from this strategy as they will help to increase eachother’s reach increase. Fabletics is likely to accept the deal as it can be seen as an opportunity for them to grow further in the UK.

BRAND AMBASSADORS The cost for brand ambassadors will vary greatly, for a social media post alone the brand can expect to pay atleast £3,500 per post for each celebrity.

SOCIAL MEDIA IMPROVEMENTS Year One of the strategies will be the most cost effective. Social media accounts will be ran by their in-house PR employees. The only additional costs MullerLight will incur in the addition of the Snapcode to packaging such as lids and sleeves, and equipment such as cameras and cooking utensils for the ‘Meals with MullerLight’ campaign.W

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I M P L E M E N TAT I O N T I M E L I N E


K P I ’s

SALES If the brand strategies are successful, MullerLight can expect an increase in sales, this will gain back lost market share of 2.2% in 2016. MullerLight should aim to increase sales by 3% in the first year and an overall increase of 5-6% for the three years.

BRAND AWARENESS

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Bibliography

Books: - McDonald, M. & Wilson H (2011) Marketing Plans 7th Edition - John Wiley & Sons - Smith, PR & ZE Zook (2011) Marketing Communications: Integrating Offline and Online with Social Media Koogan Page, 5th Edition Databases: - Mintel Group, May 2017. Social Media and Networks. Smart insights. Available from: http://academic. mintel.com/display/793285/ [Accessed 10 January 2018]. - Mintel Group, 2016. Yogurt and Yogurt Drinks - UK - July 2016. Mintel Group. Available from: http:// academic.mintel.com/display/748669/ [Accessed 10 January 2018]. -Academic.mintel.com. (2018). Vitamins and Supplements - UK - September 2017 - Market Research Report. [online] Available at: http://academic.mintel.com/display/793779/ [Accessed 10 Jan. 2018]. Websites: - Singh, S. (2014). The 10 Social And Tech Trends That Could Shape The Next Decade. [online] Forbes. Available at: https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/ sarwantsingh/2014/05/12/the-top-10-mega-trends-of-the-decade/&refURL=&referrer=#c1f70f3a62c3 [Accessed 8 Jan. 2018]. -Muller, 2017. Muller, Mullerlight. Available from: https://www.muller.co.uk/nc/our-brands/muelleryogurt-desserts-brands/brands/all/filter/subbrand/47 [Accessed 5 December 2017]. - MegaTrend. (2015). The Ageing Population. [online] Available at: https://trend-monitor.co.uk/ megatrend-3-the-ageing-population/ [Accessed 8 Jan. 2018]. -Forbes. (2015). Health & Wellness. [online] Available at: https://www.forbes.com/sites/ thehartmangroup/2015/11/19/consumer-trends-in-health-and-wellness/#65daffe5313e [Accessed 1 Jan. 2018].

References -Muller, 2017. Muller, Mullerlight. Available from: https://www.muller.co.uk/nc/our-brands/muelleryogurt-desserts-brands/brands/all/filter/subbrand/47 [Accessed 5 December 2017]. -- Mintel Group, May 2017. Social Media and Networks. Smart insights. Available from: http://academic. mintel.com/display/793285/ [Accessed 10 January 2018]. - Mintel Group, 2016. Yogurt and Yogurt Drinks - UK - July 2016. Mintel Group. Available from: http:// academic.mintel.com/display/748669/ [Accessed 10 January 2018]. -Academic.mintel.com. (2018). Vitamins and Supplements - UK - September 2017 - Market Research Report. [online] Available at: http://academic.mintel.com/display/793779/ [Accessed 10 Jan. 2018].

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Appendices App 1

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List of Illustrations Cover Page: Kate Hudson Image: Kate Hudson Image. (2018). [image] Available at: https://i.pinimg.com/originals/23/a8/58/23a858695868fe0cb99547e669c5b871.jpg [Accessed 14 Jan. 2018]. MullerLight Logo: Logo. (2018). [image] Available at: http://1.bp.blogspot.com/-5omRVmx_PE8/UkYiG8L7uZI/AAAAAAAACow/ bBOefVpHj_Y/s1600/M%C3%BCllerLight-logo.jpg [Accessed 11 Jan. 2018]. Contents: Muller Splash: MullerLight Splash. (2018). [image] Available at: https://files1.coloribus.com/files/adsarchive/part_1413/14131655/file/ muller-dairy-products-mullerlight-splash-strawberry-small-91054.jpg [Accessed 14 Jan. 2018]. Page 1-2: Backround Granola Image: Background Image. (2018). [image] Available at: https://i.pinimg.com/originals/11/b7/03/11b703442b94bc22a683633aeaf17d03.jpg [Accessed 12 Jan. 2018]. Page 5-6: Banner: Yogurt on Spoon. (2018). [image] Available at: https://bloximages.chicago2.vip.townnews.com/thesouthern.com/content/tncms/ assets/v3/editorial/b/ca/bca81aaa-ddb9-11e2-b05b-0019bb2963f4/51c9ce59cc486.image.jpg [Accessed 20 Jan. 2018]. Page 7-8: Muller Info (All Images): Muller Yogurts (2018) [image] Available at: http://www.lightandfree.co.uk [Accessed 15 Jan. 2018]. Page 9-10: Muller Ad Background: Muller Ad. (2018). [image] Available at: Background Image. (2018). [image] Available at: https://i.pinimg.com/ originals/11/b7/03/11b703442b94bc22a683633aeaf17d03.jpg [Accessed 12 Jan. 2018]. [Accessed 13 Jan. 2018]. Page 13-14: Pen Portrait Images1. Whiting, H. (2016). Twenty Something Image. [image] Available at: http://www.toomuchisnotenough.co.uk/twenty-things-us-twentysomething-women-have-to-contend-with/ [Accessed 2 Dec. 2017]. 2. Darling, B. (2016). Best Bars On The Coast For Cocktails With The Girls. [image] Available at: https://www.theurbanlist.com/images/ made/content/article/a_list_images/metropolist/best-bars-for-cocktails-with-girls_5_740_486_s_c1.jpg [Accessed 2 Nov. 2017]. 3. Calerdal Council (n.d.). Legs, Bums and Tums Class. [image] Available at: https://www.calderdale.gov.uk/v2/sites/default/files/styles/ sports_activity_header/public/sports/class/legsbumstums.jpg [Accessed 2 Nov. 2017]. 4. Magazine image. (2012). [image] Available at: https://vasare.co.uk/2014/05/12/spring-summer-2014-lofficiel-magazine-fashion-trend-inspiration/lofficiel-fashion-magaizne-spring-summer-2014-2015-2016-style-trend-design-collection-vogue-elle-zurnalas-madachanel-ballenciaga-stella-mccartney-isabel-marantan-cool-textile-collage-cool-trendy-5/ [Accessed 2 Dec. 2017]. 5. Grimshaw, A. (2016). Big Ferdinand Burger London. [image] Available at: http://www.abouttimemagazine.co.uk/wp-content/uploads/2016/02/bigfernand-0577.jpg [Accessed 2 Dec. 2017]. Page 15-16: Activia Logo: Activia Logo. (2018). [image] Available at: http://www.activia.co.uk [Accessed 15 Jan. 2018]. YeoValley Logo: YeoValley Logo. (2018). [image] Available at: http://www.Yeovalley.co.uk [Accessed 15 Jan. 2018]. Light & Free logo: Light & Free Logo. (2018). [image] Available at: http://www.lightandfree.co.uk [Accessed 15 Jan. 2018]. Page 19-20: Greek Yogurt theme: Muller Santorini. (2018). [image] Available at: http://blog.making-pictures.co.uk/wp-content/uploads/2012/04/Muller_Santorini_r3.jpg [Accessed 14 Jan. 2018]. Page 21-22: Core Competencies: Granola. (2018). [image] Available at: http://www.vegkitchen.com/wp-content/uploads/2011/12/Fruity-yogurt-parfait. jpg [Accessed 11 Jan. 2018]. Page 23-24: Granola Close Up: Granola. (2018). [image] Available at: http://www.vegkitchen.com/wp-content/uploads/2011/12/Fruity-yogurt-parfait. jpg [Accessed 11 Jan. 2018]. Strategy Images: - Mullerlight splash. Available from: https://naotw-pd.s3.amazonaws.com/styles/aotw_card_ir/s3/images/mullerlight-spill-vanilla-choc. jpg?itok=cDD5hPuf\ [Accessed 6 December 2017]. -Mullerlight. Available from: https://naotw-pd.s3.amazonaws.com/styles/aotw_card_ir/s3/images/mullerlight-spill-strawberry. jpg?itok=F5X8hVbs [Accessed 6 December 2017]. -Mullerlight stawberry. Available from: https://www.muller.co.uk/fileadmin/user_upload/Dairy_goodness/Yog4_190x735.jpg [Accessed 6 December 2017]. -yoghurt Mullerlight. tesco. Available from: https://www.tesco.ie/groceries/MarketingContent/Sites/Retail/superstore/Online/p/i/buylist/ campaigns/41868/ad41868_headerBG_TW46.jpg [Accessed 6 December 2017].

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I can confirm that this work has gained ethical approval and that I have faithfully observed the terms of the approval in the conduct of this project. Signed (students) ………………………………………………….

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