Product Description:
My chosen product is Onken yoghurt. I have decided to develop on this product by creating new range of Onken yoghurts pots. In order to develop this product, I will be changing the size of the pots to a smaller pack of four, whilst also keeping the original 450g individual pot and also changing the logo design to idea four from the questionnaire. This is the one that got the best results on the questionnaire. See appendix 1 for logo design and new sizing of packaging.
Onken have always produced larger sized yoghurt pots (450g) and to begin with this was a success as they were one of the first brands to provide this. They also focus on a providing a healthy brand of yoghurts that are full of flavour. However now that more brands began to sell the larger pot they are starting to become less well known and are losing out on sales. The market leaders for yoghurt are shown on appendix 2. All of the brands that are the market leaders provide customers with both smaller four packs of yoghurt and also the larger 450g individual yoghurt pots. By looking into how successful these brands have been once introducing a variety of sized yoghurt pots I came to the conclusion that if I were to do the same for Onken it would increase their customer base and in turn, increase their sales. By redesigning the packaging I was also hoping to attract new customers and hopefully this would add to the increase of sales for Onken yoghurt. I believe that by having both the larger 450g pots and the smaller 125g snack pots, will be beneficial to the brand as it will help improve the brand awareness and widen their customer base.
I found out that 44% of people who completed my questionnaire would prefer to have a smaller yoghurt pot (125g) and 44% would prefer to have the larger yoghurt pot that Onken already provide. This is another reason for them to add another sized yoghurt pot to their brand as they will be able to increase sales by almost double. By completing the focus group I was also able to get people’s views of what they thought about the Onken logo and the majority of people in the focus group think that it is a plain and boring and think that it would make the packaging look a lot more appealing if they were to re-design it.
Customer needs and wants:
A need is the functional side of the product, the part that you will expect every brand of that product to provide you with. For my product this will be nutrition, calcium, healthy bacteria and healthy calories. A want is what you desire in the product. For my product this will be nice flavour, a range of flavour, variety of pot size and aesthetically pleasing packaging. My target market is mixed and varies over all ages. There is also no main gender that it will be aimed at either. However I will be mainly aiming it at a family target, as it is the sort of product you will buy during a weekly shop.
Reasons why:
I have chosen to redesign Onken yoghurt pot sizes and packaging as it is a brand of yoghurt I like to buy and I feel that if they were to update their packaging and provide customers with a wider choice range for size, they would be able to increase their sales. To begin with Onken was a well-known brand as it was one of the first yoghurt companies to produce the larger yoghurt pot. However in recent years their sales have decreased due to the expansion of other yoghurt companies as more and more have started to produce the larger pots as well as the smaller pots. This puts onken yoghurt at a disadvantage as it means they have a smaller range of customers.
Aims and objectives:
These are my main aims and objectives for the rebranding of Onken yoghurt:
Increase brand awareness
Onken yoghurt has already established a customer base but over the past few years, due to other yoghurt brands expanding their product range, this has dropped. At one time Onken was one of the leading brands selling larger yoghurt pots, however now that other brands such as Actimel have started catching on to this trend, Onkens customer base has fallen and they have become less well known. Onken does however still have existing customers and this will help when introducing a new size yoghurt pot. With Onken already being an established business it gives me more opportunities when starting up a new development, as I will already have existing customers, human and financial resources, a team of well-trained and experienced staff and plenty of capital to work with. However due to the fact that Onken yoghurt has become less well known I will need to still focus on increasing brand awareness. At the moment they have few advertising methods, with their main one being a short YouTube advert that was released in 2012 (3 years ago). I will be using new advertising techniques to try to increase brand awareness for Onken yoghurt. These will include TV adverts, advertising in food magazines, and on billboards close to the supermarkets/shops. By advertising the brand I will also be keeping up with my competitors, such as Activia, Actimel etc.
Improve profitability
By developing on the original Onken brand and making a new sized yoghurt pot, it will improve brand awareness and possibly entice new customers into buy Onken. This will increase profits, as there will be more sales due to the higher amount of customers. This will lead to increased profits and more capital for the business.
Diversification
For Onken yoghurt I will not be using diversifying as one of my aims or objectives as I will be developing on an existing product rather than creating a whole new service or product.
Marketing segmentation:
This involves dividing my market into subgroups with common characteristics that’s can be targeted in the marketing mix. By analysing each segmentation I can focus on the needs of that specific group within the target market and use strategies to suit them. Segmentation is done on things such as income, age, gender, geographic region, ethnic group and socio-economic class.
Demographic segmentation:
This segmentation covers things such as age, gender, religion/race, education, occupation, income, marital status etc. My target market is highly varied as I am aiming my product at people who shop in supermarkets mainly, and this covers a lot of people. I have chosen to not focus on one specific target market in the sense of age and gender as I feel that this would limit my customer base greatly. By choosing to have my target market as people who shop in supermarkets it gives me a larger customer base. By not having a more specific target market it does however limit my ability’s to target them. I am going to have to use a more varied approach to advertising this product. From my focus group results I was able to find that the best way to advertise this product, to people who use supermarkets on a weekly basis, would be on TV adverts, a variety of magazines and billboards that are situated close to or outside of the supermarkets. The new improved yoghurt pot sizes will appeal to all customers as it will give them a wider range of products to chose from and it will also help increase my customer base as it will give the business a new customer base of people who are only wanting the smaller yoghurt pots.
Geographic segmentation:
This is where the market is split into where things are needed most. This could affect the product, as you may need to change certain features of it depending on where it is being sold, so as it is able to fit into the local area. This can be a thing such as changing the language of it for different countries or having packaging that is culturally sensitive.it could also be affected by an areas climate, population density and level of income. With Onken being not a luxury brand of yoghurt it means that it is an affordable snack. By having it at an affordable price it is not being segmented due to levels of income. The climate of an area is more likely not going to affect the sales of my product, as it isn’t a product that is associated with either warm or cold temperatures. The only way this would affect it is that in warmer countries it may need to have a shorter sell by date depending on where it is sold as the heat could affect the yoghurt. The main way that geographic segmentation could affect Onken yoghurt is through population density. This is because my product is being sold at supermarkets and so I will need to make sure that my product is being sold in areas with high population surrounding the supermarkets so as I am able to have a larger customer base.
Psychographic segmentation:
This segmentation is to do with the customer’s lifestyles, what they do for hobbies and their interests etc. It isn't to do with demographics and so it can reach all people. Onken, as a brand, is trying to promote the fact that it is a healthier snack option so psychographic segmentation will affect it. People who are either having pack lunches at school/work or people who want to be healthier in what they eat will mainly influence it. Onken will be influenced mainly by people who are wanting to have them in pack lunches as the smaller pots will be able to fit nicely into the boxes, whoever the original larger pots are not able to. The other influence of people who are wanting to be healthier is already being achieved as Onken already provides a healthier snack option, however by having the smaller pots people may be more likely to purchase them as they feel like they wont be wasting/wont need to eat as much or eat them as fast.