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MKTG605 Advanced Strategic Marketing

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MKTG605 Advanced Strategic Marketing

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Course Code: MKTG605
University: University Of Canterbury

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: New Zealand


Case Study: Sanitarium
It’s what’s on the inside that counts on the outside, and that might seem like just another food company’s slogan. But on the inside, we’re a lot more than that. We’re a group of people who believe passionately in the potential of every New Zealander. The potential to be healthy: physically, mentally and emotionally. The potential to be happy. The potential to live life with purpose. And we believe this journey all begins with good nutrition. Because what you feed your body and your mind, changes the way you feel.
Our Promise
On the outside, we may seem like just another food company. But on the inside we’re a lot more than that. It’s why we take a stand on issues of health and wellbeing. Here are some of the key issues we champion or challenge within our industry and the approach we take:

Advertising to children
Sanitarium not sourcing GM ingredients
Sanitarium offers low sodium foods
Eating more plant based foods
Sanitarium initiates removal of artificial colours
Sanitarium gives its profits for charitable purposes
Wholegrains information

A Trend Setter
It’s often said that Sanitarium changed New Zealand’s eating habits? we were the first to introduce healthy and innovative breakfast foods and soy foods. We promoted plant based eating before it became trendy, and we offered wellbeing clinics in our cafes. In caring for the health and wellbeing of all New Zealanders, we have created great breakfast cereal foods, soymilks, spreads and healthy vegetarian foods. We love using natural, wholesome foods to offer you the best of nature’s goodness and flavours.
Good for Our Bodies, Good for Our Environment
We’re always looking at ways of sourcing ingredients and making products on a local level, to help minimise our impact on the environment. Caring for our world is important to us, which is why we choose to honour, preserve and care for our world as a created gift. We consider the environment when making decisions around technology, energy sources and methods of operation, to ensure that the choices we make are sustainable. Investing in Healthy Lifestyles where some of New Zealand’s greatest heroes and sporting legends eat Weetbix every day, and many New Zealanders get the energy they need to power through their own busy lives. But there’s a lot more to Sanitarium besides being New Zealand’s number one selling breakfast cereal. Caring about the community is a core value of Sanitarium and our employees. Whether its New Zealand’s largest kids sporting event, the ‘Weet Bix Tryathlon,’ the Kick Start Breakfast programme for kids in need, or the free health and nutritional advice for all New Zealanders, we’re here because we want to make a difference. Your Wellbeing Journey. We put our profits to good use – they go towards improving the world in which we live. We’ve helped generations of Kiwi kids achieve their potential, by investing in national and local programmes which help children and their families make healthy lifestyle choices. To help everyone on their health and wellbeing journey, our team of nutritionists and health practitioners are ready to help you enjoy a better life. You can talk with our friendly consultants over the phone, ask for health information or download a wealth of knowledge from our website. In everything we do, we are committed to sharing health and hope for a better life. It’s what we do. It’s who we are, on the inside. Because, after all… it’s what we do. It’s who we are, on the inside. Because, after all… it’s what’s inside that counts.
Task: Marketing Plan
Students will conduct an environment analysis to determine strategic options for small business.
Section 1 Environmental analysis
After reading the case study conduct the environmental analysis of Sanitarium.  Your analysis should cover following

Internal environment
External environment
Competitive analysis

Section 2: Marketing Plan
From the environmental analysis, students will formulate a strategic marketing plan for a small businesses including the marketing mix, segmentation, targeting, positioning and monitoring and control systems.
Students will research, evaluate and communicate information in relation to the strategic marketing plan
CEO of Santarium has called an urgent meeting, after conducting as the demand for Weet bix is increasing in Auckland market due to high migration rate. CEO of Sanitarium appointed you to conduct the market research to identify Segments, appropriate targeting & positioning strategies along with proposing an effective Marketing Plan so that clear understanding of Auckland market can be developed to achieve newly developed marketing goal.
Step 1 Market Research
Based on the Task 1 define the marketing objective for the marketing plan for Sanitarium product/ service Weet Bix.
Your research methodology should cover following areas

Define two Marketing objectives

Step 2 Segmentation
Based on the data collected by market research identify the different segments of Auckland market using segmentation theories.
Step 3: Targeting
Develop the targeting strategy for above identified market segment and explain the effect of it on Sanitarium market performance.
Step 4: Marketing Mix
You are require to use the information form Task 1 and above market research findings develop the marketing mix for Sanitarium to achieve the above defined marketing goal.
Step 5: Positioning Strategy
You are require to use the marketing mix information develop the Positioning strategy for Sanitarium to position its existing product “Weet Bix” in the mind of newly identified target market in Auckland.
Step 6: Implementation Plan
You are required to provide an action plan for best possible strategy of your choice. Your action plan should be focused on tasks involve to implement the strategy, people accountable for tasks, allocated budget for task and time frame too complete the task so that overall strategy can be implemented successfully within defined timeframe.
Step 7: Identification of barriers to implementation
You are require to identify the possible barriers to implement the positioning strategy.
Step 8: Monitoring and control system
You are require to develop the monitoring and control system to ensure that the implementation of plan can be done effectively and efficiently. Use the Monitoring and control tools to develop your answer.
Step 9: Contingency planning
You are require to propose the alternative positioning strategy plan if the current proposed plan fail to achieve defined marketing objective effectively and efficiently.
Section 3: Stakeholder Engagement
Students will demonstrate effective communication skills to engage with stakeholders.
Step 1
Identify Sanitarium’s internal and external key stakeholders.
Step 2
Explain why employee engagement is so important to the success of Sanitarium.
Step 3
State two approaches that Sanitarium can use to engage with external stakeholders in New Zealand.


Environmental analysis 
1. Internal environment analysis: McKinsey 7S Model
Shared vision – The major vision of Sanitarium in its operations in New Zealand is to stand by the issues which are based on the wellbeing and health of the consumers. The company has a strong belief on the potential of New Zealanders. The potential is related to the ways by which the consumers are able to live their lives in an effective manner.
Strategy – The approach that has been applied by the company is mainly based on reducing the usage of genetically modified ingredients. The production of fresh breakfast is an important part of the strategy. Sanitarium considers the consumers to be an important part of the company operations (Barros, Hernangómez & Martin-Cruz, 2016). The company has mainly implemented the cost leadership strategy.
Structure – The organizational structure of Sanitarium is based on the hierarchies that are present in different levels. The needs of consumers are met with the help of different customer service executives of the company. The corporate operations of the company are thereby managed with the help of its head office. The expansion of operations is also important part of the structure which has been developed by Sanitarium in the industry.
Systems – The systems of managing the operations of Sanitarium are mainly based on the methods by which team of the company is able to develop the products and services.
Staff – The efficient team of Sanitarium is able to provide the services to customers with the help of the products which are effective for the consumers and the community as a whole (Daspit et al., 2017). The training which is provided to the employees is a major part of the effective operations of Sanitarium.
Style – The culture of Sanitarium is based on the passion of the team to manage an efficient supply chain.  
Skills – The shared vision of the company is a significant part of the strategy that has been applied by Sanitarium. The skills of the staff of Sanitarium will play a major part in the operations of the firm.
2. External environment analysis 
PESTLE Analysis of Sanitarium 
Political factors – The political factors are able to affect the operations of Sanitarium in the industry. The long-term profitability levels of the company can be maintained in a stable political environment. The levels of success that can be achieved by the company is totally based on the policies that are developed with respect to government regulations which are developed in the country. The major political factors which are able to affect the operations of Sanitarium mainly include, Food Act 2014, The Food Standards Treaty and different trade agreements which have been developed between Australia and other countries.
Economic factors – The inflation rate, interest rate, foreign exchange based rate and savings rate of the country plays a vital part in the operations of Sanitarium. The demand of the products among customers is thereby affected by the levels of investment. The economic situation of the country can thereby affect the operations of Sanitarium (Demir, Wennberg & McKelvie, 2017).
Social factors – The culture which is followed in the society will also be able to affect the demands for the goods that are offered by Sanitarium. The health based factors are considered by the company in order to offer specific products to the customers. The high levels of poverty in New Zealand is able to affect the proper operations of Sanitarium in the country. The popularity of organic foods has been able to make a positive impact on the revenues of Sanitarium.
Technological factors – The fast technological environment is able to affect the production based process of Sanitarium. The food industry is thereby affected in a vast manner by changes in technology (Durand, Grant and Madsen, 2017). The new research and information based analysis is facilitated in an effective manner by the technological environment of the company.
Legal factors – The legal framework of the country of operations is able to affect the policies which are developed by Sanitarium. The employment based rights and consumer based laws need to be followed by the company in order to continue its effective operations.
Environmental factors – The environmental standards which are followed in New Zealand are important factors which are able to affect the proper procedures of Sanitarium and types of products that are offered (Dyer et al., 2015). The usage of scarce resources for the development of products of Sanitarium is an important environmental factor that is able to affect the operations.
3. Competitor analysis: Porter’s five forces analysis of the industry
Threats based on new entrants – The profitability and revenues of Sanitarium will be affected by the entry of new organizations in the industry. The competitive edge of the company which has been developed in the market of New Zealand will play a key part in the facing the new entrants. Sanitarium can operate in a profitable way with the help of innovation in the products that are presented to customers. The company also needs to invest its resources in such a manner which play a major role in increasing the revenues of Sanitarium in the industry. The health food based industry will be able to provide enough opportunities to Sanitarium so that it is able to develop its processes in an effective way (Meyer, Neck & Meeks, 2017).
Bargaining power of the suppliers – The suppliers of Sanitarium will also play a major role in the processes of the firm. The company thereby needs to develop an effective supply chain in order to deliver the best levels of products to the consumers. The supply chain of Sanitarium has been developed in such a manner which has provided assistance in increasing its profitability in the industry. The suppliers are able to play a vital part in the proper operations of the company in the industry. Sanitarium thereby needs to develop an effective supply chain in order to function in the industry in a profitable way. The bargaining power of the suppliers need to be decreased so that they are not able to affect the prices of products (Michael, Storey & Thomas, 2017).
Bargaining power of the buyers – The buyers of Sanitarium are also able to affect the methods by which the company operates in the industry. The management has always tried to source the genuine types of raw materials for developing the products for their customers. The company has been successful in developing an effective customer base with the help of the response that it offers to them. The consumers in the modern environment are able to affect the profitability levels of the company. The firm thereby needs to develop a loyal based consumer base in order to function profitably in the industry (Morschett, Schramm-Klein & Zentes, 2015).
Threats from the substitute products – The major competitors of Sanitarium in New Zealand are mainly Vegemite, Ilovemarmite, Capilano. The products that are offered by these organizations can act as an effective substitute to those provided by Sanitarium. The threats that are provided to Sanitarium by the major competitor Kellogg’s is the highest in the cereal market of New Zealand. Sanitarium thereby needs to develop the products in such a manner which will help the company to create a differentiation in the market and reach the levels of its main competitor (Sakas, Vlachos & Nasiopoulos, 2014).
Rivalry among existing firms – The levels of competitiveness in the industry are quite high and are able to affect the levels of profitability in a huge manner. The revenues of the company have been affected by the ways by which Sanitarium operates in the industry. The sustainable differentiation which has been developed by Sanitarium is an important part of its profitability in the industry. The levels of rivalry can be faced by Sanitarium with the help of proper and efficient strategies which can help the company to function in the market in a profitable manner (Simon, Fischbach & Schoder, 2014).
Marketing plan
Step 1: Marketing research: Two marketing objectives 
The two major marketing objectives that have been developed by the company are mainly based on the ways which are used by the Sanitarium to serve the people of New Zealand with healthy food. The product based objectives of the company are as follows,

Reduction in the gap that is evident in the market between Sanitarium and the market leader Kellogg’s.
Focussing on the development of the company as a leading brand in the market for the consumers who belong to the age below 40 and the kids as well.

Step 2: Segmentation
Four segmentation processes
The process of market segmentation plays key role in the development of a proper marketing based plan. The distribution of potential market is mainly done with the help of segments and groups. The demands of customers who belong to these groups are similar in nature. The process based on segmentation in mainly divided into many steps. The analysis of the food market of Auckland has been able to depict that the demand for its product named Weet-Bix and various other products based on food had increased. The need based on segmentation needs to be identified before the actual process has taken place (Engert, Rauter & Baumgartner, 2016).
The demands for the products have been helpful in the identification of the needs of consumers who belong to different groups. The company thereby divides the population in such a manner which is based on different segmentation related processes like, geographic segmentation, psychographic segmentation and demographic segmentation. The process of demographic segmentation has been found to be the most appropriate for Sanitarium (Ethiraj, Gambardella & Helfat, 2018). Therefore, the four major segments which are related to ways of dividing the market of Sanitariumj are as follows,

The first segment of customers belongs to the group named The Healthies. These are the customers who are mainly concerned about the overall nutrition that they receive from the products.
The second segment of the customers mainly belong to the group named The Energy-junkies. The energy junkies are mainly those who are involved in lots of exercises and huge levels of physical activities.
The third segment of customers belong to the group name The sweet tooth. The third segment thereby comprises of the consumers who belong to the age group between five years to twelve years.
The fourth segment of customers which can be developed in this case belong to the group named The Body Watchers. The Body Watchers are mainly those women who are highly concerned about the image that has been developed and are confident in their activities as well.

Graphical representation of the segments 

First segment
                     The Healthies

Second segment
           The energy junkies

Third segment
                    The sweet tooth

Fourth segment
                The Body Watchers

Step 3: Targeting 
Targeting the strategy to be developed for the segment
The second step of marketing plan is based on the process of targeting. Targeting thereby refers to the ways by which a particular group of people can be fixed and then the company aims at changing them into customers. The process which is followed by the company to reach the proper are at the proper time with the help of effective channels (Steinbach et al., 2017). The channels are decided with the help of the potential group of customers. Sanitarium had planned to target the product named Weet-Bix tryathlon mainly for children. The decisions based on food consumption are made by women based on not only the nutrition based values, the attractiveness of the products also plays a major role in its selection (Frynas & Mellahi, 2015).
The food consumption based decisions at home are mainly made by women with respect to the eating based habits of family members. The target market that has been selected by the company currently includes the mothers and younger generations as well. The main concern in this case is based on the high quality based food and the food products which can support the consumers for the entire day. The company has thereby aimed at targeting the younger generations and the mothers with the help of its different types of products. The mothers have however proved to be an effective choice by the company for the purpose of the providing the products effectively (Hill, Jones & Schilling, 2014).
Two points for the effectiveness of the strategy for Sanitarium
The first point of effectiveness of the strategy is that the mothers are able to make the decisions based food consumption for the entire family. The second point is the mothers are likely to become much more loyal customers as compared to the younger generation.
Step 4: Marketing mix
Four marketing mix strategies for new target market
Marketing mix is another important step that is linked to the marketing plan that has been developed by the organization. This acts as a crucial process in case of influencing the customers in order to develop a loyal base. The failure of proper marketing mix based strategies can thereby lead to the losses of an organization in the industry. The marketing mix of the product is based on the ways by which it can effectively stay in the minds of the consumers (Hitt & Duane Ireland, 2017).
The marketing mix of Sanitarium is based on the 4Ps which include, Product, Price, Promotion and Place. The product criteria are based on the ways by which customers can analyse the products based on their specific needs. The price of products also plays a key role in affecting the processes of Sanitarium in an effective way. The promotion of products is thereby important for the ways by which the organization is able to develop awareness in minds of consumers.
Products – Sanitarium has taken significant steps in order to develop the ways by which the products can create a position in the industry. The products have been showcased in such a manner which will be helpful for the company to operate effectively in the industry. The products that are offered by Sanitarium to the customers are mainly based on the healthy choices of the consumers in the New Zealand food based market. The customers are thereby able to lead a healthy lifestyle by the proper consumption of effective products that are offered by Sanitarium (Trigeorgis & Reuer, 2017).
Promotions – The promotional activities of the company have also been able to develop a place of Sanitarium in the market. The firm has thereby used effective techniques in order to promote the products in the market. The marketing based strategy that has been implemented by Kellogg’s has proved to be effective for its operations. Sanitarium also needs to develop effective marketing based strategies in order to function in the industry in a profitable manner (Wheelen et al., 2017).
Prices – The prices of the products have been decided based on demands in the industry and their position as well. Sanitarium also needs to perform extensive market research in order to decide proper prices of the products. Competitive pricing will be able to increase the profitability of Sanitarium and improve its profitability as well. The prices that are set by the competitors of Sanitarium need to be faced in an effective manner by aggressive price wears (Trigeorgis & Reuer, 2017).
Place – The places which have been decided by Sanitarium in order to promote the products thereby include, schools and other effective areas as well (Hubbard, Rice & Galvin, 2014). Sanitarium needs to select proper areas for the promotions of its products. The company needs to make a significant amount of investment on the different promotional activities which can be performed by the company in an effective manner. The company can further increase its reach in the industry with the help of proper distribution based channel. This can help Sanitarium to increase the awareness of its products in the industry. The team that needs to be developed by the company mainly includes members who are able to perform different duties (Wheelen et al., 2017).
Step 5: Positioning strategy 
The cereal industry of New Zealand is highly competitive in nature and the most important competitor of Sanitarium in the market is Kellogg’s. The positioning strategy of Sanitarium will thereby be based on its competitors. The healthy and high nutrition based products that are offered by Sanitarium are considered to be the most important part of positioning strategy. The value of the products that is perceived by the customers is quite high and the company has been able to provide tough competition to its biggest competitor and market leader. Sanitarium has aimed at positioning itself as the holistic snacking related brand in the market (Karadag, 2015).
Positioning statement developed for the new target market
The positioning statement that has been developed by Sanitarium is based on providing food products to the customers in such a manner so that the families are able to live a healthy life and thrive in their personal lives and career.
Step 6: Implementation plan

The program based on implementation of the plan

Action plans

Goals to be achieved


Time taken


Updating the product which has been considered (Weet-bix)

Adding nutrition based elements to the product to make it effective.

Improving the taste in order to compete with Kellogg’s.

Research and development based activities of Sanitarium

2 years


Making changes in the packaging based activities of the company.

Increasing the target market in order to develop leadership position.

Making advertising based research.

6 months


Promotion based strategy

The different materials which are required for advertising the products on digital platforms.

The enhancement of profits of the company is a major goal.

Department of advertising.

Weekly basis


Developing effective banners and television advertisements.

To increase the revenues of the company in the industry.

Brand management department.

Yearly basis


Monitoring policy

The checking of budget needs to be done every week.

To ensure that the available funds can be used efficiently.

Finance department of the company.

Monthly basis.

Not required.

The customers and opinions need to be surveyed on a periodic basis.

To analyse the demands for the products of Sanitarium in the market.

Marketing team of the company.

Monthly basis.

Not required.

Five tasks based on the implementation of the plan 
Task 1 – The changes need to be made in promotional plans in such a way which can help the company to create its position in the cereal industry of New Zealand. The improvement of revenues will play a major role in proper operations of Sanitarium in the industry as compared to Kellogg’s. This task can be performed in an effective manner by the brand manager of the company. The promotional activities of need to be planned in order to reach the customers and create awareness among them as well.
Task 2 – The second task is based on selecting the proper areas where the products of the company can be promoted. The selection of proper marketing based areas will play a vital part in increasing the profitability levels of Sanitarium. This task can be done by the operations manager of Sanitarium. The areas where the products can be promoted effectively needs to be decided by the operations managers so that the activities can be effective in nature.
Task 3 – Sanitarium can think of bringing improvements in the products that are offered to the consumers. The products which are thereby provided to the customers need to be developed according to their needs and demands. Sanitarium needs to make significant investments in order to bring improvements in the products that are offered to the customers. The management needs to make effective decisions along with the proper coordination of the employees.
Task 4 – The company can conduct proper survey and feedback process in their websie in order to collect the opinions of people in an effective manner. The collection of opinions in a proper manner will play a major role in proper operations of Sanitarium and the success of its products as well. The feedback which is provided on the website by customers can be analysed in an efficient manner by the company in order to bring changes in the operating processes. This will be helpful for the company to reach the goal of operating the levels of ots major competitor Kellogg’s.
Task 5 – The company can increase the profitability with the proper coordination of the employees with the customers. The human resource managers of the firm will play a key role in the ways by which the plan is implemented. The leadership based activities that are performed by the managers will be able to affect the processes of the company. The leaders need to collaborate and coordinate with the employees in such a manner so that they can become an active part of the marketing plan that is to be implemented.
Step 7: Identification of the barriers to implementation
Two major barriers 

The first barrier that is able to affect the implementation is the position of the company in the industry. The market leader has a loyal base of customers which will provide hindrance in the plans of Sanitarium. The loyal customers of Kellogg’s tend to stay with the company even if lower prices are provided by the others in the industry.
The second major barrier that can be identified in this case is linked to the absence of proper resources of the company in order to develop marketing strategies which can help in reaching up to the heights of Kellogg’s. The lack of proper resources of the company is an important issue that can affect the ways by which the company aims at implementing the marketing plan.

Effect of each barrier 
The loyal customer base of the market leader will play a main part in the methods by which Sanitarium is able to develop the base of customers in an effective manner. The lack of proper resources will provide hindrance in the improvement of appropriate promotional strategies in order to generate awareness in the minds of consumers. The company will not be capable of promoting the products among the customers due to lack of appropriate resources. The development of appropriate resources is thereby important for the proper operations of Sanitarium after the implementation of newly developed marketing plan. The barriers which are thereby faced by the company are important for its operations and proper implementation of marketing based plans.
Step 8: Monitoring and control based systems
Two standards developed for monitoring the performance 
The first standard that can be developed for the purpose of monitoring the performance of the organization is based on reaching the profitability level and market based standard that has been achieved by the leader. The second standard is related to the development of a proper evaluation of the performance based measures of the employees who are a part of the plan.
Two control based systems proposed for controlling the process of implementation
The process of implementation can be controlled with the help of proper control based systems. The control system of this plan will include the following two processes,

The first part of control system can be termed as preventive control. This process will be implemented by Sanitarium in order to prevent the issues that can take place in the company due to inefficient implementation of the plan. The preventive control system will be helpful for the company to detect the issues which can occur in the entire implementation based process. On the other hand, the company needs to develop proper systems which can be helpful for prevention of errors which can take place in the system.
The second part of the control system is termed as corrective control. The management of Sanitarium can thereby change some parts of the plan if they are not implemented in an effective manner. The issues which have occurred in the implementation plan in spite of many preventive measures can be checked with the help of corrective measures which are formed by the company. The management thereby needs to act in a prompt manner in order to correct the issues that have occurred in the operations.

Step 9: Contingency planning
Contingency positioning statement
The contingency positioning statement which can be developed for the marketing plan is based on the usage of biotechnology in an effective manner in order to develop the products for providing competition to Kellogg’s.
Help provided by this plan to the company 
The plan will help the organization in the following way,

The implementation of marketing plan will play a key role in the ways by which Sanitarium can create a position close to the market leader.
The marketing plan will help the company to develop an effective and loyal customer base in all the age groups.

Graphical representation of the control system 

Figure 3 – Control systems
Source – Created by author
Section 3: Stakeholder Engagement 
Step 1: Identification of two internal and two external stakeholders
The two major internal stakeholders of the company are the employees and the suppliers of Sanitarium. The external stakeholders of the organization are mainly the consumers and the shareholders of Sanitarium.
Step 2: Identification of two points on the importance of engagement
The two major importance of engagement are as follows,

The engagement of the employees will help in the proper implementation of the marketing plan.
The engagement of suppliers and customers will help Sanitarium in the development of an effective network of the company (Kasemsap, 2014).

Step 3: Two approaches based on stakeholder engagement 
The company can aim at engaging the stakeholders in the following two ways,

The first method is based on the involving the employees within the decisions that are made by the companies.
The second approach is based on the methods by which the company can interact in an effective way with the consumers so that their needs and demands can be analysed and fulfilled (Karadag, 2015).

The report can be settled by stating that Sanitarium can operate in a profitable and further achieve its objectives with the help of proper application of the marketing plan that has been formed. The company can thereby increase its profitability by improving the product line and its reach. The improvement of distribution channels has also been provided with importance in the analysis that has been done in the report. The organization will be able to achieve its objectives with the proper coordination of the employees and the customers. Sanitarium can reach the profitability levels of Kellogg’s with the help of the marketing plan which has been suggested.
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