Market analysis

The purpose of the study is to make a comparative analysis of brand portfolios of two popular brands in Australian cheese industry based on the CBBE model for brand equity evaluation. Application of Choice of appropriate brand elements (eg logos, characters) and analysis of Marketing program activities (esp. the marketing mix) and recommendations provided to the observations made. 2. MARKET ANALYSIS Being the second largest cheese market in Asia-Pacific, Australia is forecast to continue accounting for a large part of this market.

The natural cheese market is worth approximately $373 million and the next biggest is processed cheese with approximately $225 million. Both segments are growing in value at approximately 5% per annum. House brands figure largely in the cheese category with about 31% of the market and growing. A growing sector of the cheese market is the fat reduced category, currently holding 24% of the total natural and processed business. 2. 1 KRAFT Kraft Foods is the #1 US food company and #2 worldwide (after Nestle).

With sales of over $48 billion and some of the world’s best known brands in its stable, Kraft, the US food company, is undeniably a leader in the industry. Its North America unit makes the world’s largest-selling cheese brand Kraft; cookie and cracker baker Nabisco; and the milk-dunking favorite Oreos, all these brands have revenues of at least $1 billion. Its international business unit offers more than 50 of its brands that regularly hit the $100 million mark. The business spans five core sectors: snacks, beverages, cheese, grocery and convenient meals.

Kraft holds the number one share position in 21 of their 25 top categories in both the US and internationally. Category leadership provides Kraft with major strategic advantages, including the benefits of scale, consumer loyalty and in-store emphasis by retailers. F1. 1 Kraft’s $1 billion brands Source: http://www. kraft. com/brands/1bil. html Brands in Portfolio Kraft and Cracker Barrel natural cheese; Philadelphia cream cheese; Kraft grated cheese; Polly-O cheese; Kraft, Velveeta and Cheez Whiz process cheeses; Deli Deluxe process cheese slices; and Breakstone’s and Knudsen cottage cheese and sour cream

2. 2 BEGA Bega is the Number 1 selling Australian brand in both full fat natural and reduced fat cheeses. Bega Cheese sales are approximately $800 million and production of 200,000 tonnes of dairy products. Located in the Bega Valley, it is owned and operated by 100 local dairy farmers and has been a part of the Australian landscape since 1899. Fonterra Brands are the exclusive agents for the Bega brand in Australia. 3. MARKETING MIX 3. 1 KRAFT As a cheese & food service manufacturer, Kraft produces primarily natural, processed and cream cheeses.

The company’s popular international brands are Kraft and Cracker Barrel natural cheese; Philadelphia cream cheese; Kraft grated cheese; Polly-O cheese; Kraft, Velveeta and Cheez Whiz process cheeses; Deli Deluxe process cheese slices; and Breakstone’s and Knudsen cottage cheese and sour cream. Kraft focused on importance of the retail environment as a way of targeting consumers and encouraging them to try new and existing products is explored. There is also a focus on packaging, not only its ability to provide on-shelf standout in terms of its colour and shape, but also its functionality from a supplier, retailer and consumer point of view.

The price versus quality debate is considered as well as the global trend towards “masstige” – prestige for the mass market. The traditional forms of media are fragmenting fast and can no longer be relied upon to reach a brand’s target audience. It is accepted that between 50% and 70% of television advertising is wasteful because it cannot be guaranteed to reach its target audience. However, in one month, around 95% of households will pass through a supermarket – a statistic that retailers and brand owners need to consider when planning the launch of any new product.

3. 2 BEGA On average, approximately 50 million items carrying the Bega brand name are sold annually in Australia. Bega products are now exported to many countries around the world including all popular South East Asian markets, the Middle East and Central and South American destinations. In addition to export achievements and due to the new state of the art, cutting and packaging facility, Bega Cheese now packs natural cheese and processed cheese products for many local and international marketers.

Bega’s flagship is natural cheddar cheese. The most popular variety is Tasty, but it is available in Mild, Extra Tasty and Strong ‘n Bitey Vintage as well. Bega’s fat reduced products are all best sellers; Bega Super Slim for serious cholesterol and weight watchers is 90% fat free and So Light allows cheese lovers to reduce fat intake by 25% without sacrificing taste. Bega is also famous for tasty Super Slices – the cheese slice for the more mature palate.

The full range of Bega Cheeses is extensive, and just a few of the more famous labels are mentioned above. Advertising for each of the Bega Cheese reduced fat products, So-Light Natural and Super Slim Slices, projects a modern theme and appeals to people with contemporary lifestyles. Bega invests heavily, mainly on television, to promote the brand. This strong support, combined with the consistent high quality of product and the regular introduction of innovative new products, accounts for the huge success of the Bega brand.