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This report analyzes the growth of Australian pork exports to Singapore from 1999-2001 and evaluates the effectiveness of a marketing campaign launched in 2001. It finds that Australian pork's success in Japan prior helped its image. When disease outbreaks banned imports from Malaysia and Indonesia, Australia emerged as a top choice. The 2001 campaign successfully launched the Airpork brand among young supermarket shoppers and dispelled beliefs that frozen meat is less fresh or healthy. The report recommends that Airpork analyze competitors, target different market segments, and audit cold chain processes to fuel further growth.
Description originale:
Case Study for Australian company called Airpork which exports to singapore.
This report analyzes the growth of Australian pork exports to Singapore from 1999-2001 and evaluates the effectiveness of a marketing campaign launched in 2001. It finds that Australian pork's success in Japan prior helped its image. When disease outbreaks banned imports from Malaysia and Indonesia, Australia emerged as a top choice. The 2001 campaign successfully launched the Airpork brand among young supermarket shoppers and dispelled beliefs that frozen meat is less fresh or healthy. The report recommends that Airpork analyze competitors, target different market segments, and audit cold chain processes to fuel further growth.
This report analyzes the growth of Australian pork exports to Singapore from 1999-2001 and evaluates the effectiveness of a marketing campaign launched in 2001. It finds that Australian pork's success in Japan prior helped its image. When disease outbreaks banned imports from Malaysia and Indonesia, Australia emerged as a top choice. The 2001 campaign successfully launched the Airpork brand among young supermarket shoppers and dispelled beliefs that frozen meat is less fresh or healthy. The report recommends that Airpork analyze competitors, target different market segments, and audit cold chain processes to fuel further growth.
1. Executive Summary This report was commissioned to examine the factors that influenced growth of Australian pork limiteds export to Singapore from 1999 to 2001 and to analyse the effectiveness of the marketing campaign launched in May 2001. The report also intends to recommends ways to fuel further growth in future. The research draws attention to the fact that Australian porks product image was built by its success in Japan prior to the time period identified for analysis. This, along with its presence due to investment in pilot cold chain process led to Australia emerging as natural choice for pork imports when Nipah virus outbreak in Malaysia and Indonesia lead to the imports being banned from those countries. The advertising campaign launched in 2001 was successful in launching the Airpork brand as brand of choice for young consumers who preferred shopping in supermarkets. This campaign was also successful in dispelling the belief that frozen meat is not fresh and is unhealthier compared to fresh meat. It is recommended: That Airpork conducts thorough analysis of potential competitors to position itself as brand of choice. That Airpork creates strategies and advertising to target different market segments. That CAPE conducts and audit of processes for cold chain system. 2. Table of Contents
1. Executive Summary ......................................................................................................................... 2 2. Table of Contents ............................................................................................................................ 3 3. Introduction .................................................................................................................................... 4 4. Analysis of growth from 1998 to 2001 ............................................................................................ 5 Analysis of two Ps: Product and Presence ......................................................................................... 5 Product ............................................................................................................................................ 5 Presence .......................................................................................................................................... 5 External factors at play in the market................................................................................................. 6 5. Benefit analysis of advertising campaign since 2001 ...................................................................... 7 Needs and Wants analysis .................................................................................................................. 7 SWOT Analysis..................................................................................................................................... 8 6. Proposal for further growth ............................................................................................................ 9 Target Competitors ............................................................................................................................. 9 Target different segments of the market ........................................................................................... 9 Process and logistics ......................................................................................................................... 11 Summary of recommendations ........................................................................................................ 11 7. Conclusion ..................................................................................................................................... 12 8. Self Assessment............................................................................................................................. 13
3. Introduction The Airpork brand is unique in the sense that it was created and marketed after tremendous success enjoyed by Australian Pork Limited from 1999 to 2001. Many have argued that the marketing effort was a waste as the sale was already at all time high and the commodity was self selling. This report looks at the reasons for the success till 2001 and then goes on to use marketing concepts to analyse the success of marketing campaign launched in 2001. The report proves that the marketing effort was needed for long term sustainability of the Airpork brand and sales in Singapore. This analysis is then used to put together proposals for future growth in the region. 4. Analysis of growth from 1998 to 2001 Australian pork exports to Singapore increased from 60,000 kg in 1998 to 28.8m kg in 2001. This was achieved because of range of external factors and unique market conditions prevalent in the Asian pork industry. This report lists some of these factors and aims to analyse them in order to get a better idea of situations that can influence the business in future. The next two sections would then build upon the learning from the past in order to audit the effectiveness of the marketing campaign that followed and to formulate strategies in order to make the Australian pork exports to Singapore sustainable. Analysis of two Ps: Product and Presence Product It has been identified that although Australian pork did not command a big share of the Singaporean pork industry, Australian pork industry had built rMBA in other Asian countries, particularly Japan. After the advent of foot and mouth disease in Japan and then in Taiwan and South Korea, subsequently, Australia was chosen as a country of choice for pork exports. Japanese consumers rated Australian pork highly because of bright meat and snow white fat, high quality feed grain, clean and green image. Australian livestock is also classified as high quality primarily because of it being free from diseases. Presence Malaysia was initially supplying majority of pork exports to Singapore before the outbreak of Nipah virus in Malaysia and Indonesia. Australias clean and green image combined with rMBA earned from its exports to Japan during foot and mouth disease there, made it a natural choice for Singaporean importers. Singaporean Government initially banned Australian pork imports on the ground of hygiene in 1997. This turned out to be blessing in disguise as it lead to Singapore govt and Australia pig research and development corporation working on pilot project to export pork using new cold chain system. CAPE established Australian pork industry quality programme (APIQ) and set up standards for supply chain which were over and above Singaporean standards. All these factors lead to a superior supply chain system being developed which met Singapore Governments hygiene standards. The product and presence form major part of the marketing mix and has been summarised in the table below. It can be easily noticed that even without the price and promotional factors, these two Ps helped create a strong case for Australian pork industry. Product Presence Quality of Australian livestock (free from diseases) Japanese consumers rate Australian pork highly because of bright meat and snow white fat, high quality feed grain, clean and green image High health standards from Singapore govt for supply chain of frozen pork After initial ban in 1997, Singapore govt and Australia pig research and development corporation worked on pilot project to export pork using new cold chain system CAPE established Australian pork industry quality programme (APIQ) and set up standards for supply chain which were over and above Singaporean standards
External factors at play in the market Some external factors were at play in the market during the time of growth. These are summarised below and can be seen as major contributors for the Australian pork industries success from 1999 to 2001: World meat consumption has been increasing (pork dominates with 43%). It can be argued that probably the demand was higher than supply during this time period. Australian pork industry restructure strategy was formulated by the Australian government. This resulted in $24 million being allocated for the industry. Confederation of Australian pork exporters (CAPE) was formed from this fund. Foot and mouth disease in Taiwan and Japan. Australian pork industry turned out to be a major supplier to Japan even before 1999. Nipah virus in 1998 in Malaysia led to ban on imports from there. Imports may not resume because of geographical factors and its proximity to bat colonies (which was identified as root cause). rMBA enjoyed by Australian beef exporters with 23% of world export combined with Australia being second largest exporter of lamb meat.
5. Benefit analysis of advertising campaign since 2001 Australian Pork Limited (APL) launched the Airpork brand in March 2000 and started a major advertising campaign in May 2001 utilising television, newspapers, magazines and sides of double-decker buses. The campaign aimed to focus on the following: Change perception that fresh meat is superior Differentiate Airpork from other frozen thawed pork Communicate the message that fresh meat is air-freighted into Singapore daily Some critics have their reservations on the effectiveness of this extravagant marketing campaign considering the tremendous success enjoyed by APL prior to its launch. This section uses needs and wants and SWOT analysis of the market to analyse the effectiveness of the campaign. This report explains why the marketing campaign was successful for the long term sustainability of APLs export to Singapore. The final section will then look at recommendations for future growth. Needs and Wants analysis Consumer/Buyer group Needs Wants Singapore Government Health and safety Standards for supply chain system Hygiene awareness for its citizens Improve infrastructure in Singapore for cold storage and transportation Traditional buyers or consumers from older generations Part of daily diet Free from disease Fresh pork (as compared to frozen) Quality of the meat Particular about level/layer of fat in different parts of pork Premium quality meat Young consumers Part of daily diet Free from disease Save time in shopping Quality of the meat Humane treatment of animals Clean and green product Premium quality meat
From the analysis above, the marketing campaign can be seen as successful in the following areas: Traditionally there is an inherent preference for fresh meat to frozen supermarket products in Singapore. As consumers are mostly driven by habit and consumption of fresh meat is seen as healthier and tastier choice, once the impact of virus is forgotten, Indonesia can eat into Australian share. The conclusion here is that the marketing campaign was needed to change perception that fresh meat is superior. Prior to Nipah virus outbreak Aus pork was perceived to have tainted or milky/beef taste. The market campaign was successful in conducting a blind taste which revealed that they actually preferred Australian pork thus building a premium quality image for Airpork. Young shoppers who prefer supermarket brands, needed to be targeted. The campaign communicates the message that fresh meat is air-freighted into Singapore daily. It also aims to differentiate Airpork from other frozen thawed pork SWOT Analysis
From the SWOT analysis, the market campaign can be seen as successfully tackling the following: rMBA o Although rMBA of Australian pork industry was good because of impact of foot and mouth disease in Taiwan, South Korea and Japan plus Nipah virus in Malaysia and Indonesia, the strong brand needed to be built for sustainability. Indonesia has also grown in the same time period from 11 percent to 24 percent. Because of inherent preference for fresh meat, Indonesia can outgrow Australian exports. Other competitors like US and Canadian exporters can decide to position themselves as competitor for Airpork. Unless Airpork builds rMBA in the market, other brands can easily replace them in near future. Australia can build on its reputation for quality of its livestock. From Ansoff Matrix, it can be argued that new market needed to be developed as although the product existed prior to 1998 but it did not position itself in Singapore market. This results in market development activity. Situation Analysis Internal Analysis Strengths Australian high standards and perception of good quality from Australia Weaknesses Cold Chain system issues, bad brand awareness in Singapore for Airpork from study in dec 2000 External Analysis Opportunities Young generation prefer supermarket brands, foot and mouth disease and Nipah virus in other exporter countries Threats Perception of premium quality meat from US & Canada, re- emergence of Indonesia 6. Proposal for further growth The SWOT and Needs and Wants analysis in the previous section have highlighted potential areas of improvement as well. This section makes some recommendations with regards to tackling potential competitors, targeting various market segments and making improvement to process and logistics. The results are summarised at the end of this section. Target Competitors Potential completion can emerge from North America and Indonesia in future. Given below are the recommendations to tackle this challenge: North American pork is perceived as high quality and demands a premium. It is recommended that an analysis of the quality of the pork from North America be conducted and Airpork needs to develop product line which can be positioned as a competitor of the US and Canadian pork to be sold at a premium. This will lift the overall brand image of the Australian pork. It is also recommended to focus on growing market by targeting Indonesian pork which demands 24 percent of the market still. This is mostly due to live exports and preference for fresh meat. Two pronged approach can be: o To increase awareness of hygiene issues related to wet markets o Consider selling livestock to Singapore (after consideration of humane slaughtering practices) Target different segments of the market Given below (on the next page) are different market segments to target and the recommendations for each segment:
Work with govt to increase awareness of risks from wet market Consider selling livestock (if Singapore meets humane slaughtering standards) Consumers who prefer freshly slaughtered pork Further marketing for freshness of the meat Improve the packaging to differentiate the brand from other frozen meat (fresh green packaging) Consumers who are concerned about health standards awareness campaign Consumers who are concerned about humane treatment of livestock Target high end restaurants to buy and promote premium quality Australian pork in order to lift brand image Singapore has a large luxury cruise industry which can be targeted Potential partners Create a new discount brand Discount shoppers Create a premium brand extention Upmarket Shoppers Tie up with supermarket to offer free home delivery of fresh meat Internet Shoppers Process and logistics Since issues have been identified with Cold chain system and Singapore suffers from infrastructure issues with regards to cold storage and transportation, it is recommended to: Conduct an audit of the cold chain system. Stringent processes and checks are needed to implement standards set by CAPE. Put together a proposal to Singapore government for a joint investment to upgrade infrastructure in Singapore (chiller space, refrigeration and de-boning rooms). Summary of recommendations The recommendations have been summarised below by categorising them into marketing mix and multiplying it with strength of rMBA. Marketing Mix (4 Ps)
X Strength of Relational Market- based Assets
Further growth in future Services we offer Possibility of offering internet shoppers for free home delivery Fee structure Extend brand to premium range and create new brand for discount shoppers Availability Increase availability in wet market and restaurants. Improvements to Cold chain system. Investment in Singaporean storage infrastructure. Promotional efforts Continue tie up with celebrity chefs, extend tie up with premium restaurants and cruise ships
Existing client base Joint marketing effort with big supermarkets like Isetan and GIANT Loyalty Build loyalty with young shoppers Awareness Joint awareness campaign with Singapore govt on hygiene issues of wet markets. Quality of frozen food Reputation / image Tie up with high end restaurants in promoting quality of Australian pork. Fresh green packaging. Word of mouth Use social media tools for awareness through word of mouth Current activity From past activity
7. Conclusion Although, the Australian pork limiteds exports to Singapore had grown from mere A$200,000 in 1998 to A$113 million Airpork brand in 2001, the report proves that this was mostly achieved because of combination of unique market conditions and the quality of Australian livestock. It has been proven with help of needs and wants analysis plus SWOT analysis that the marketing campaign has been successful in building an Airpork brand which is sustainable and ready for future challenges. The report also has shows a path to achieve future growth by targeting competitors, improving logistics and by segmenting and strategies for targeting those market segments. 8. Self Assessment The strengths of your submission o The analysis of existing market situation and identifying that two Ps were responsible for its success. o The needs and wants analysis to identify success factors in marketing campaign. o Market segmentation to suggest future growth areas. The weaknesses o Lack of references from other marketing books and theories o Lack of independent research on other local factors that can probably influence sales. How the submission could possibly be improved (if you had more time or the chance to do it again) o Conduct research from independent sources to gain better understanding of local conditions in Singapore instead of depending solely on the case study. The grade you think that it deserves o C+ What you would particularly like feedback on from the course facilitator. o Whether right tools were identified for analysis of market conditions? o If it was real business report, what other tools could I use to conduct further analysis of the local market conditions?