Edgell
Edgell
Contents
Executive Summary...............................................................................................................................7
Introduction...........................................................................................................................................8
Context Analysis....................................................................................................................................9
Customer...........................................................................................................................................9
Competitor.......................................................................................................................................10
Communication...............................................................................................................................12
SWOT Analysis...............................................................................................................................13
Target Audience...................................................................................................................................15
Brand positioning................................................................................................................................17
IMC Objectives.....................................................................................................................................18
Conclusion...........................................................................................................................................19
Reference.............................................................................................................................................19
Appendix.............................................................................................................................................24
1
Executive Summary
In this report, it reviewed the Australian food manufacturer company, Simplot Australia’s
Edgell. The context analysis of the company includes Customers, Competitors and
Communications. The Duncan SWOT analysis of Simplot Australia’s Edgell has been
conducted. Besides, the target market of Simplot Australia’s Edgell will also be determined in
this report. Next, the brand positioning also be concerned in this report. Lastly, Integrated
Marketing Communication (IMC) objectives will also be listed down in this report. By doing
this, we can deliver the messages to the target audience, increase the brand awareness
towards the company and make the business become more outstanding from the competitors.
2
Introduction
Simplot Australia Pty. Ltd. is a wholly-owned subsidiary of J.R. Simplot
Company. The company is a food manufacturer of frozen vegetables, canned
vegetables, frozen potatoes, frozen seafood and tomato paste. The Simplot
Australia owned Australia’s favourite food brands such as Edgell, Birds Eye, John
West, Leggo’s, Lean Cuisine, Seakist, Harvest, Chiko, I&J and Ally.
3
Context Analysis
Customer
Simplot Australia Edgell’s past customers included those consumers who have high
consciousness of health on chemicals and preservations will prevent them from demanding
canned products (BMI research 2015). Other group of consumers who prefer other brands
such as Heinz and Biona Organic will find other alternatives to replace Edgell’s brand.
Due to hectic, bustling, and increasingly work-oriented lifestyle among consumers. It leads
consumers with less time to cook or do not cook. Besides, studies show that limited cooking
skills, times and funds are preventing young adults from preparing meals (Thorpe et. al
2013). Therefore, they purchase commercially prepared meal such as canned foods, frozen
foods because it is relatively cheaper than restaurant. Simplot Australia’s Edgell current
customers also include large retailers, wholesalers, distributors, B2B business servicing pubs,
quick service restaurants, cafes and food outlets and online retailers (Simplot Australia 2017).
Edgell’s potential customer will be those individuals who seeking for convenience, ease of
preparation, health and nutrition concerns. The convenience trend among consumers is driven
by the desire to create more leisure time due to busy lifestyles (Marketline 2014). At the same
time, consumers also demand for more healthy and comforting food. Edgell has continue
innovate for healthier product to keep pace of consumer lifestyles and habits.
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Competitor
Heinz Foods is a leading canned food manufacturer in United Kingdom (UK). Heinz Baked
Beanz is one of the most successful brand in UK. Heinz holds 8% of shares in Australia
prepared meals market in 2016 (Marketline 2017).
Heinz used radio ads such as Heinz Tomato Ketchup and Heinz Salad Cream (Heinz 2017).
In 2017, Heinz billboards ads appears in New York (Advertising Marketing 2017). Besides,
Heinz has their own corporate social responsibilities called Heinz Micronutrient Campaign
(H. J. Heinz Company 2007).
Heinz has launched promotion gifts such as t-shirt, recycle bag and etc. printed with its logo.
(Heinz 2011). Heinz is offering on-pack promotions on the babies’ snacks (The ODM Group
2017). Heinz held competitions which give prizes to customers who purchased selective
products within the promotional periods (Heinz 2017).
Heinz primarily focused on digital marketing website, Facebook and YouTube where videos
on recipes and demonstrations are published frequently (Heinz Australia 2017). The
Television Commercial Ads such as “Heinz Soup of the day” are advertised on both TV and
YouTube (Heinz Australia 2013).
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The second competitor will be Biona Organic, a brand under Windmill Organics Ltd in UK
which manufactures organic products such as margarines, canned tomatoes and pizza bases
(Windmill Organics n.d.). Windmill Organics is private limited company. They used digital
marketing to communicate with their customers (Biona 2017).
Biona used social platform Facebook, Twitter, Instagram and website to share recipes,
product usages and updating news to their consumers (Biona Organic 2017). On their official
website, they showed the tutorial on preparing meals with their products, Lentils (Biona
2017). Biona owned a channel in YouTube which started 3 months ago and their first video
was “Biona Kitchen: Raw Hot Cross Buns” (Biona Organic 2017). Besides, Biona also held
an Organic Giveaway to the public (Biona Organic 2017). In addition, Biona frequently
updating their post on social platform to enhance their communication with customers.
(Biona Organic 2017).
Overall, Heinz have 8% market share while Simplot’s Edgell have 4.5% (Marketline 2017).
Windmill Organic does not go public, so there is no market share. All three companies are
emphasis on digital marketing. Besides, Television Ads also adopted by Heinz and Edgell
(Nishiot 2008). Moreover, Heinz is doing something different from its competitors such as
On-pack promotions, radio advertisement, promotional items and competitions. Public
relations also be carried out by Heinz and Edgell and only they are doing corporate social
responsibility.
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Communication
In 2010, Edgell launched a campaign “Eat Well. Be Well” which reminds consumers eating
vegetables as part of a healthier lifestyle. The “Bursting with Goodness” campaign on corn,
beetroot and chick peas follows the successful of “Eat Well. Be Well” (Campaign Brief
2017). The latest campaign “Salad with Substance” from BWM Dentsu in 2016 aimed to
position Edgell Bean Salad as nutritious that suits with consumers’ busy lifestyles (Ricki
2017). The campaign appears in print, digital, out-of-home (OOH) and supported by social
media. BWM Dentsu successfully produced long-standing brand assets and award-winning
integrated campaign for Simplot’s Edgell (The Stable 2016).
Throughout the years, Edgell has tried to advertise with television (TV). In 1964, they started
its first TV ads “Fresh from an Edgell country garden” and continues its TV ads with the
objective to develop a brand which relevant to their consumer’s lifestyles (Ricki 2017).
However, the advertisement remains with the ideal of “Fresh from an Edgell country garden”.
To further drive visits to website and social platform, Edgell also advertise full page ads in
lifestyle magazines, New Idea (Jones n.d.).
In 2013, Edgell collaborated with Hardhat Digital to make their first social campaign project
and a website, The Edgell +1 (Hardhat n.d.). The objective of Edgell +1 is to simplify the
modern-day and nutritious recipes online each month by adding just one additional vegetable.
The aim is to provide consumers with not only one reason to buy Edgell product but to select
the brand more often.
Edgell predominantly used Facebook’s multi-product links ads and videos. They used their
social content network to pass their message out by posting new recipes and ideas. They also
presence in Instagram, Twitter, Pinterest to communicate a cross-section of the market.
Lastly, Edgell had given commitment to encourage consumers to recycle steel cans in 2017.
As an Australian canned vegetable manufacturer with more than 25 per cent of all sales,
Edgell used it market clout to spread word on recycling (Can and Aerosol News 2017).
Besides, they include “Recyclable steel” logo on the product labelling. The packaging will
present a positive message to the consumer which contributes positive repercussions.
7
SWOT Analysis
Strengths
One of the strengths that Simplot’s Edgell is the ionic brand in Australia with over 80 years’
establishment (Simplot 2017). Edgell brand has become the symbolic of Australian canned
product. Furthermore, Simplot has wide coverage of distribution network in Australia. The
main distribution channel of Edgell are large retailers, hypermarkets and supermarkets such
as Woolworths (Marketline 2014).
Weaknesses
The most significant challenge is the lower brand awareness of Edgell in global markets
compared to the leading competitor, Heinz. The other disadvantage is product is largely
undifferentiated. As a result, Edgell will faced intensified rivalry, difficult to retain customers,
have to compete in term of price and customer loyalty (Marketline 2014).
Opportunities
Due to the changing consumer lifestyle and demographic, where consumers are spending less
time preparing for meals. Besides, the younger consumers with limited cooking skills seeks
for easy prepared meals (Agriculture and Agri-Food Canada 2010). At the same time,
consumer not only demand for convenience but also healthier choices (Lyon & Kinney 2013).
Threats
The growing consciousness on healthy foods has discourage a number of consumers from
consuming canned products regularly (Marketline 2014). Strong competitive brands such as
Heinz may reflect lower sales of Edgell brands as it has higher market penetration. The strong
demand in frozen foods are overtaking canned product market as a substitution.
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9
Target Audience
Product Name Edgell Canned Carbonara Lentils
Edgell has many large customers such as retailers and wholesalers, but the end users of their
normally are individuals who have a busy lifestyle. These people can be divided into three
major groups according to the age groups and they are adolescent in between age of 14 and
19, young and middle-aged adults in between age of 20 and 64, and elderly in between age of
65 or above. After segmentation, the majority income level of each of the group would be
determine.
Young and middle-aged adults have the most product usage among the three groups. Majority
consumers purchase canned food because it is most cost effective and accessible nutrient
option (Comerford 2015). Majority of young and middle-aged adults are in an income level
of under $6000 (Appendix 2) and with a busy working lifestyle which make them don’t have
time to cooking. Besides, majority of them perceive their cooking skills as a barrier to
preparing meal (Thorpe et al. 2013). Therefore, they will end up choosing to purchase
commercial prepared meals such as canned food as their meal solution. (Thorpe et al. 2013).
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Media has been recognized as a transmission tools for suppliers to convey their product
messages to their users. So, understand the media consumption of each group is important.
Heavy media users can more quickly know the latest messages or news as compared to
medium and light users. On average, group of young and middle age has the heavy media
consumption as compared to the other two groups. There are approximately 94% of the
young and middle-aged have ever accessed to internet (Appendix 2).
The size and degree of commonality of a target audience is important because it concerns
about the product sustainability. Target audiences are people who have a busy lifestyle which
include all age groups. Young and middle-aged adults take a big portion of 66% in the total
population whereas adolescent and elderly take a small portion of 19% and 15% respectively
(Australian Bureau of Statistics 2016).
Therefore, young and middle-aged group will be an ideal target market. This is because this
group has equipped most of the terms and conditions such as canned lentils usage size and
degree of commonality. They are requesting for a convenience, ease of preparation, less time
consuming and nutrient-dense food (Chiva 1997). Hence, canned lentils will be their best
choice for the meal as it fulfils the requirements. In addition, economic price is also an
attractive point of it (Comerford 2015). Therefore, this group would be the best target market
of the canned carbonara lentil.
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Brand positioning
Brand positioning is “a relatively stable set of consumer perceptions (or meaning) of a brand
in relation to competitive alternatives” (Kates & Goh 2003). Edgell’s brand provides high
energy, protein, fibre and low sugar canned lentils (FatSecret 2017). Edgell is high in protein
among other competitors (Australian Food News 2016). Study shows that healthy level and
premiumization are the main perceptions in consumer’s mind (Datamonitor 2008).
Diagram 1
Diagram 1 shows Edgell Brown Lentils against the competitors that represented by vertical
axis is the healthy levels of lentils and the horizontal axis is the premiumization of the lentils
brand in consumer’s perception. Heinz stands at higher healthy level while Biona Organic
stands at lower level. Edgell placed on the moderate position between Heinz and Biona
Organic. Hence, Edgell can use the position mapping to enhance their strategy on positioning
their products.
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13
IMC Objectives
To raise Edgell’s brand awareness by 20% among the current and potential customers
using consistent message within a year.
To develop favourable brand attitudes towards Edgell by 20% among the current and
potential customers within a year.
The objective is to increase Edgell brand awareness and brand attitudes where Simplot should
continuously advertise the brand more relevant with their consumers. Edgell positioned their
brand as nutritious and provide the customer the reason to pick the brand more often.
Therefore, Edgell brand must be mentally and physically available in the mind of consumers
to achieve the objective. Meanwhile, create a positive brand attitudes with various kind of
consistent communications
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Conclusion
All in all, this report consists of context analysis which includes the 3C’s, customers,
competitors and communications which would give a clear understanding about the on that
research parts. The SWOT analysis of the Edgell brand of Simplot Australia would enhance
the company competitive advantage in the industry. Target audiences analyze the market of
individuals have a busy lifestyle. Then, it provides a narrow and specific group which has the
highest possibility to consume the canned food. The brand positing would help the Edgell
brand to penetrate and stabilize themselves in the market. Lastly, the IMC objectives is
setting up to be attained in one year to raise brand’s awareness and brand attitudes.
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Reference
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Appendix
Appendix 1
Appendix 2
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Appendix 3
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Appendix 4
Appendix 5
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