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Brand Analysis Project - Blackmores - Case Study Example

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The paper "Brand Analysis Project - Blackmores " is a great example of a marketing case study. Blackmores is among the few companies that have recorded positive sales as well as profits in the Australian economy over the years (Roth 2015). With the vast amounts of products that the company deals in, it is possible that the company has gained a candid reputation among retailers and customers…
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BRAND ANALYSIS PROJECT Name: Course: Professor: University: City: Date: Table of Contents Brand Analysis Project Executive Summary Blackmores is among the few companies that have recorded positive sales as well as profits in the Australian economy over the years (Roth 2015). With the vast amounts of products that the company deals in, it is possible that the company has gained a candid reputation among retailers and customers. The emergence of new products from Blackmores with improved product lines and the purchase of BioCeuticals, it is likely that the company has experienced vast amounts in the sale of its products. As much as the popularity of Blackmores owes to the developments in market line and the improvements in products, it has incorporated growth in Asian countries that has helped improve sales (Bettignies & Lépineux 2009). This growth strategy has proven that the company is able to diversify the scope of its products to strengthen the existing business channels and acquire clients from the other countries. Being a brand owner and a member of the packaging supply chain, Blackmores is required to submit constant action plans that will offer clients and retailers the opportunity to view company objectives. Introduction Blackmores is a company founded by Maurice Blackmore in Queensland about 80 years ago. Blackmores is a brand that is geared towards availing supplementary vitamins, minerals, herbs and nutrients, as more consumers tend to direct their attention to natural aspects and remedies for health management (Tovey, Easthope & Adams 2004). With the major improvements made in technology and modernization in science, Maurice discovered that the health nature of herbs and minerals would benefit people who desired to take a different approach from that of prescribed medicine. He aimed at building a smooth and strategic healthcare system that is based on neuropathic principles (Bettignies & Lépineux 2009). The company employs approximately 600 people in their outlets and operates in three countries, Australia, Asia and New Zealand. Blending the vast brands and the strategic marketing processes with continued support for the community contributes to the elevated trust levels among the consumers (Bettignies & Lépineux 2009). Section One Blackmores Brand Description Blackmores places most of its focus on vitamin and supplementary brands that are geared towards ascertaining the health of the clients (Chitty et al. 2015). Among the brands that Blackmores is involved in manufacture and sale, include skincare products, cosmetics, healthcare products, personal care products and hair care products. The products are classified based on the key ingredients of the products. This includes vitamins, minerals, herbs and nutrients. Blackmores approach stems from the traditional application of herbs used as remedies to different ailments and combine them nutritiously with the developed medicines to create an innovative supplement. The investment in creating a wide variety of products derives its force from the company ethics. In Australia, Blackmores is responsible for over 250 vitamin brands of health products and supplements. The company aims at increasing the scope in brand manufacture in rather developed countries such as China. Blackmores in Australia is engaged in offering health products to men, women, children and a variety of teenagers (Tovey, Easthope & Adams 2004). Among the health products for children includes immunities manufactured by Blackmores, edible tablets resembling sweets that the children may use to improve their immunity. Blackmores uses the chewable multivitamins for children since it is a way to assert that the children consume such medications. Omega 3 supplements are among the brands that are offered to children through fruit fishes and are incorporated with a good taste. The sweetness is ensured considering the target market. Brand supplements for women are among the complex brands that are required to conform to the diversity in women bodies and hormones. Bio balance for women as well as Vitality Multi prevents, and cures certain ailments and deficiencies in women. For men, supplements such as Performance Multi, which is a high potency, supercharged multivitamin supplement is manufactured and distributed by Blackmores. At the heart of different brands that Blackmores deals with, Blackmores Sugar Balance has gained massive popularity among the consumers. The sugar balance is manufactured through a chromium-based formula that is aimed at providing essential nutrients needed for the processing and regulation of sugar in the body. It also ensures that energy is kept at a maximum to handle the daily activities. Similarly, super food brands are being adopted in most homes as they provide fruit and vegetable options for choice. They prove efficient in boosting the immune system of the body. Blackmores have ensured that they cover diverse issues regarding body health such as the oxidation process of bad cholesterol and the providence of energy in cells, tissues and organs. Brand supplements that play an important role in ascertaining strength include Blackmores Coq10 supplements and Blackmores offer COQ10 supplements in varying (Chitty et al. 2015). Competitive Brands in China China is among the developed countries in terms of industrialization and in the medical field. The major advancements owes to the improvements that have come with technology blended into different fields. Most brands assume that the economic nature in China may be favorable as well as the market needy. Similarly, the assumption that health is a major concern of the Chinese people as they are at the center of unhealthy living may warrant the incorporation of certain brands. To some extent, it may be true. Chinese consumers are becoming more aware of the health risk that is associated with the environment and are undertaking precautions to deal with it. However, brands such as Blackmores may have to face the wrath of many dominating competitors in China (Bettignies & Lépineux 2009). The demand for medically manufactured vitamins in China lowered owing to the effect other natural remedies proved effective. The most competitive brands in China include Nutrite that enjoys a 17.7% consumption rate, By-Health with a 16.1% consumption rate and Tiens with a 12.9% consumption rate. Other vitamin supplements that are popular in China include Centrum, Yangshengtang, GNC and Caltrate. Competitive Environment The Chinese competitive environment has experienced changes in the companies that focus in supplement and vitamin manufacture. Among the dominating companies is Guangzhou By-Health Biological Engineering that manufactures By-Health supplements. It also manufactures and distributes mineral and protein supplements. Guangzhou By-Health Biological Engineering recorded approximately 17.2% rise in revenue in the year 2014, which rose by about 4.1% in the first quarter of 2015. The ability to stimulate the market through brand advertising campaigns has been a steering force for Guangzhou By-Health Biological Engineering. The company also aims at increasing the scope of products it avails to its consumers in the vast competitive market. China also has improved on the market laws that affect how food is manufactured and sold in most retail stores therefore it is likely to create an avenue for the emergence of new health and supplementary products. The regulations regarding the safety of Blackmore’s supplementary products have often seen a shift in the shares Blackmores operates within. The rising appetite for Blackmore’s vitamin supplements in China has caused other companies to diversify their products uniquely from the common Australian branded vitamins (Bettignies & Lépineux 2009). Among the affected companies is CSPC that offers pharmaceutical products in China. The company aims at increasing the market share through purchasing brands that have failed to match to competitor effects. Beijing Scrainen and Ningbo Nuscan are also venturing out to purchase other dominant brands. Most of the deteriorating companies were black spots for the sale of uncertified supplements and other products. Arguably, most of Blackmore’s sales emanate from China as they are among the legal and certified companies offering quality supplements (Roth 2015). The dietary and vitamin supplementary market in China illustrates that consumers are willing to go an extra mile and spend more on such products. This elevates the willingness of suppliers and manufacturers to match up with the demand cycle. Section Two Market Objectives Often, Blackmores has been involved in marketing and advertising with an aim of ensuring that its products are available and used across different countries. The marketing objectives that Blackmores has put in place are centered on the importance of the consumer and the well-being. For instance, during their campaign, Blackmores highlighted one of their objectives as a drive of consideration for the purchase of Blackmore’s vitamin products. Their marketing was purposefully to increase the likelihood of Blackmore’s vitamins product purchases and communicate the key message regarding Blackmore’s goods, the benefits as well as a brief information regarding the company (Bettignies & Lépineux 2009). The marketing campaigns were geared towards assuring the consumers that the products manufactured by Blackmores were certified as usable and harmless to the users. Similarly, the campaign was aimed at building a solid brand that will be at the forefront in case of any nutrition additions to its products. Marketing objectives are aimed at sensitizing the consumers in case of a launch in new products. Target Market Recently, Blackmores has targeted the ageing population in most countries arguing on the popularity in the use of vitamins and supplements. A propelling factor to such ventures owed to the improved formulas for the manufacture of such products that would see the elderly benefit. China constitutes a vast number of ageing population that is likely to require supplement for aided health. Demand for Blackmores products have often recorded tremendous figures in China with most people preferring natural products (Bettignies & Lépineux 2009). Blackmores ensures that it competes vigorously in the retail market as it distributes most of its products in the retail outlets. Another target market that Blackmores has identified is the middle and high-end market where most of the people with stable wages are. In most cases, the people here do not have time to eat or visit the hospitals in search of medication. Therefore, they enter into a retail store and purchase a supplement. Infants are also a potential market that Blackmores aims at exploiting. Considering the unique nature of children, infants require dietary supplements to facilitate healthy growth. The women also occupy a vast market space as their bodies experience complex modes. General Marketing Strategy As a popular brand, Blackmores applies different marketing strategies that are aimed at ensuring consumers understand the value of the company. The marketing strategies take into account various aspects such as growth, building up existing business channels, acquisition of other businesses and expansion to areas such as Asia (Schnaars 1991). Among the general marketing strategies that Blackmores has adopted is the use of digital media to advertise its products (Kitchen & Pelsmacker 2004). The brand that is now active in Facebook through all dominating markets applies search engines to accumulate traffic in its websites. Blackmores uses its digital marketing tea to sensitize the consumers of ant campaigns regarding the use of natural supplements as a way of ensuring a healthy living. Blackmores aims at becoming market leaders in the corresponding category as well as ensure innovated communications in their systems. The brand is also evaluating the impact of associating itself with companies through social media to boost sales and attract consumers. Promotion is among the any strategies that have been used by Blackmores to spearhead the sale of natural supplements and vitamins through educating the public regarding the benefits of using its products. As it releases more products into the market, Blackmores offers its consumers the opportunity of benefiting from these sales through offering health education (Bettignies & Lépineux 2009). The majority of retailers who are pharmacists are educated on the prescription procedures and the consequences that come with using a certain supplement. Similarly, to promote its products, Blackmores has launched a marketing campaign known as Today’s the Day to inspire natural health. Blackmores also oversees a number of Australian events and sponsors a number of people to take part in such activities. Among the amenities that Blackmores provides includes that of an active hotline where consumers are sensitize on different supplements. This marketing strategy creates assurance on the consumer regarding the credibility of Blackmores towards ensuring a safe and healthy environment (Schnaars 1991). Role of the Brand As much as Blackmores plays an important part in ensuring that vitamins, herbs and supplements are availed to the needy market, its role surpasses this objective. The Blackmores Group has a long-term commitment to ensuring that the company maintains a socially responsible practice as they focus on creating a sustainable system in healthcare and service delivery. The Blackmores Group consists of various parts that play an important role in the achievement of company objectives. BioCeuticals is among the most important parts of Blackmores that plays a major role in the provision of healthcare practitioner and therapeutic supplements. The major principles of this element in Blackmores include integrity, innovation and quality. They play a major role in ensuring that alternative as well as complementary medicines are integrated and recognized as part of the healthcare system in most countries (Bettignies & Lépineux 2009). This element is focused on ensuring that they perform extensive research as well as evaluate the scientific aspect regarding Blackmore’s supplements and vitamins before availing them to the public. Their main objective is do design medicines that aim at improving the lifestyle of the patients, educing pain related ailments and promoting the well-being. Another important element of the Blackmores Group is the pure animal wellbeing that shows Blackmore’s passion for animals. This sector consists of veterinary professionals who are concerned with the well-being of injured animals through providing innovations as well as certified clinical healthcare products for animals (Bettignies & Lépineux 2009). The Blackmores institute is another element of Blackmores that plays an important role in shaping aspirants who desire to pursue careers in the corresponding field. The institution that was launched in 2012 is a certified center of excellence that takes part in research activities, pharmaceutical reviews and educational programs geared towards a safe practice. It also offers advice regarding new ventures through carrying out exploitations to discover the vulnerability and functionality. The university gives students an opportunity to be part of a diverse community. As a major brand, Blackmores needs to ensure that it is at the forefront of all the developments in the supply chain sector to ensure that it covers all aspects in business. Over the years, Blackmores has maintained a steady growth evident from the first cholesterol supplement product it released in 2011. Although it has remained vibrant in ensuring a channeled development as well as marketing endeavor, Blackmores needs to ensure that it exploits larger aspects in terms of consumer attraction. The business is no force to reckon with and the possibility of emerging competitors because of resembling marketing strategies may cost the brand a great deal. Blackmores needs to maintain a friendly and ideal workplace that will create a positive perception to consumers (Bettignies & Lépineux 2009). Blackmores needs to ensure business and product continuity through an environmentally safe manufacturing procedure in the production of natural supplements. Statement of Brand Positioning In terms of brand values and positioning, Blackmores is geared towards ensuring that its products are safe for consumption and produced using the most natural and pure ways. Blackmores intends to concentrate consumers to its stores by sensitizing the public on the importance of using natural supplements compared to manufactured medication. The brand applies its vast marketing skills as well as professional approaches to translate the workers knowledge on natural and nutritional advancements into quality and innovated strategies that are centered on healthcare provision. Blackmores achieves projection of brand elements through incorporating research and developing programs to realize effective manufacture and distribution (Bettignies & Lépineux 2009). The brand identifies the importance of the consumers and their concentration on healthcare satisfaction using natural methods. Blackmores Engages the consumers through educative programs focused on the benefits of supplements and vitamins. Social responsibility and environmental value build the confidence of the mass towards Blackmores as a brand. Values Objectives Blackmores to become effective highlights its mission objectives as well as vision through different values. Integrity, leadership, passion for natural health and respect are among the values that build Blackmores into a popular company. Blackmores takes pride in using high quality products for most of it supplements that are endorsed by most organizations. The objectives of these values are closely associated with financial gain and profitability. Blackmores vividly reflects the adherence to such values in the annual and bi-annual sales of vitamins and supplements. The aim of such values is to ensure efficiency in the performance and handling of tasks within Blackmores. Increased activity through sales is achieved by respect on the part of Blackmore’s employees. Similarly, the numbers of applicants who have sent applications to Blackmores have increased over the years arguing that the company places value on its employees. Effective leadership has proven an advantage when it comes to spearheading new investments. For instance, the team in charge of Blackmores Asia is composed of competent leaders who are required to perform as per the required standards. Furthermore, with effective leadership, Blackmores ensures that it provides all the necessary information regarding its products to their customers. The objectives of such values are to provide some sort of guidance and insight on how the company intends to achieve its objectives. Section Three Analysis of Brand Aspects Brand Awareness / Consumer Knowledge Blackmores intends to market most of its brands through different marketing methods. Brand awareness is aimed at making customers identify with a certain brand in terms of the goods and services being offered. The increasing brand investment has been facilitated by the increase in sales to Chinese consumers and entrepreneurs through export sales. Similarly, the Blackmores Sydney Running Festival that attracted a mass of about 33,000 consumers and participants is among the ways Blackmores has ensured it maintains brand awareness. With the new designs in the Blackmores website, the company has been able to attract more consumers to view the objectives, products and services offered by Blackmores. It has also included a section of consumer engagement geared towards building consumer relationship (Kitchen & Pelsmacker 2004). Blackmores uses the effect of social media and their website to steer sales and create brand awareness. Points of Parity/Difference In relation to the brand indifference, Blackmores ensures that ill its products are derived from natural elements such as herbs, minerals and nutrients. In this case, Blackmores ensures that its production, manufacture and sale of al the brand products are exemplary. Most of the competitive companies apply unnatural elements in their vitamins and dietary supplements to improve factors such as the expiry and functionality. This interferes with the natural aspect of the product. Blackmores aims at ensuring it maintains a natural and holistic approach to health placing concentration on social responsibility and environmental conservation. Brand Elements Blackmores brand elements are classified into three. They include reliability, effectiveness and accessible. Such elements are projected through the incorporation of strategic business practices in all the sectors of production, manufacture, distribution and sale. Blackmores has been effective in providing its products to a variety of consumers such as those in China. Marketing Support Program The Chief Marketing and Digital Officer in Blackmores possesses the afferent ability to integrate diverse marketing support programs through strategic digital media plans to achieve the marketing objective. Blackmores has been engaged in consumer centric programs that apply digital aspects geared towards a successful and commercial marketing support program. Brand Leveraging Most of the profits accrued by Blackmores owes to the leveraging factor that is placed on the growing brand group as well as recoveries from the Blackmores institutions. Blackmores has also leveraged the use of brand ambassadors in areas such as China that has enabled the company to build trust and quality among consumers. Celebrities have been used during advertisements and in their personal websites to steer the marketing objective for Blackmore’s products. Brand Extensions (Existing and Future) Currently, Blackmores is expanding its effect in China, as the market is rather demanding. The new regulations in China provide a suitable business environment that Blackmores seeks to exploit further. The creation of more channels will imply diversification in distribution in Blackmore’s supplements and vitamins. Asia is among the avenues that Blackmores has identified as strategic areas of extension. They intend to penetrate the Turkey and Vietnamese market by increasing the scope of investment in the near future. Section Four Brand Equity Most organizations focus on building a strong brand that will be recognized by many companies. A strong brand is likely to counter the effect that most competitors have as well as suffice as useable in case of any management crisis. Furthermore, creating a strong brand is likely to build customer loyalty, increase cooperation with retailers, suppliers and consumers, increase the effectiveness of market communication and ease the process of expansion (Dou 2013). However, most of these aspirations are associated with diverse conditions that a company is required to fulfil. In the case of Blackmores, it is important to understand the factors that strengthen the company as a brand and the methods of building a strong brand. Customer-Based Brand Equity that was developed by Keller offers four brand building blocks that may be applied by Blackmores in expanding its customer base. However, for this to be possible, the model is required to be logical, systematically integrated and grounded, it had to be applicable in a practical environment and it had to cover all aspects regarding the brand. Arguably, this model assumes that the consumers are aware of the brand and its products. Customer-Based Brand Equity Model Brand identity refers to the ability of consumers to recognize a brand easily regardless of an emergence in newer brands. Customers need to know more about the brand rather than the name and the physical characteristics. Once customers understand that a certain brand dominates the market in a certain category, it is possible to say that the brand has gained identity. In the case of Blackmores, brand identity can be ascertained in different ways. Nonetheless, the brand has gained identity in different countries such as Australia and China despite the massive competition from other companies. Blackmores distributes most of its products across different retailers that assists in building a solid brand identity. Identity acquired by Blackmore’s warrants eligibility for consideration by a consumer who requires supplements and vitamin products. Similarly, a move to creating a salient brand through associations and placing logos of other prominent companies will help Blackmores build a brand identity. Brand identity is just the foundation of developing brand equity by Blackmores. Most consumers may look at the brands meaning and the image it pot rays to other consumers. Brand meaning implies developing a solid brand image that will ensure the character of the business is top class. Brand meaning is often associated with performance and imagery (Heding et al. 2009). Blackmores has maintained a constant state of performance over the years that have seen it succeed in most of its ventures. Blackmores ensures that it maintains brand performance by adhering to its values and objectives and ensuring that its products satisfy the needs of the customer. To ascertain brand meaning, Blackmores needs to ensure that the product is of high quality, reliable, durable and serviceable, it is effective, efficient and affordable. Ascertaining the brand image will take the effort of the manufacturers in ensuring that the supplements and vitamins meet the social and psychological needs of the consumers. Brand response defines a situation where consumers respond to a brand. In China, consumer demand for Australian manufactured vitamin and supplementary products has raised therefore showing positive response. Response from the consumers is displayed through feelings and judgments (Heding et al. 2009). Blackmores receives a positive response from consumers of its products through improved sales or digital media response. Blackmores succeeds in ensuring brand quality through manufacture of natural products, it has ensured brand credibility owing to the expertise, trustworthiness and likeability posed on its products. In terms of feelings, Blackmores has gained positive response owing to the socially acceptable nature of its products that are accredited healthy for consumption. A feeling of security has affirmed that Blackmores has gained from the use of its products by different consumers. However, the criteria for ensuring brand awareness is to affirm that consumers have ready access to Blackmore’s products and anytime consumers think about supplements and vitamins, the immediate thought would be Blackmores. Another Customer-Based Brand Equity measure would involve creating a candid brand relationship with consumers, suppliers and other stakeholders. The identification and resonance that the consumer has with a brand is likely to build or break the business (Heding et al. 2009). Blackmores has a strong connection with the consumers considering their high affinity for Australian manufactured supplements. Major factors that may signal the presence of brand relationship includes brand loyalty, attachment and corresponding attitude, sense of community and active participation. Arguably, Blackmores ha succeeded in ensuring that it maintains a positive brand relationship through engaging in frequent educational programs, taking part in community activities and involving the consumer during various ventures. The strongest brands are likely to excel in all the four areas. Consumer thoughts, feelings and actions towards a certain brand are expressed through the CBBE model (Heding et al. 2009). Moreover, the CBBE model proves effective when planning, implementing and interpreting new brand strategies such as Blackmores in China. Section Five Recommendations Situation Analysis The use of vitamins and supplements in China has increased in the recent years with people aged above 60 years being the neediest. Arguably, supplements have brought a change in most countries that would have rather used prescribed manufactured medication as vitamin supplements. However, companies such as Blackmores aim at incorporating the use of vitamin supplements that are manufactured from natural products such as herbs, minerals and nutrients. Although competitors such as CSPC and Guangzhou By-Health Biological Engineering surround the Chinese market, Blackmores is certain that it will penetrate the market force and emerge the most popular brand. The domination of Australian manufactured supplements in Asian countries proves to be a driving force that will see a success in China. Objectives This project is expected to help Blackmores penetrate the Chinese market despite the presence of competitive market. Blackmore’s sales are required to increase gradually as the brand gains popularity. Blackmores aims at ensuring that the demand for vitamins and supplements is countered by the systematic and efficient supply of such products. To ensure conquers acquire supplements at an affordable cost to counter the competitor effect. Marketing Strategies Blackmores will need to implement unique marketing strategies that will help in concentrating consumers and countering competitors. The marketing strategies will take into account the market segmentation in terms of age, gender and region. It will incorporate the use of modern technology as well as the Chinese economy. Blackmores will use penetration pricing with social media advertising and promotion to acquire consumers. Distribution will be enhanced all through the retail stores in the retail supply chain. Action Plan Blackmores will introduce the most common products at an affordable cost to see the reaction of the consumers. Blackmores will acquire a license for all business activities pertaining to the sale, purchase, manufacture and distribution of vitamin and dietary supplements in China. Pricing will be set at the normal retail price as in other countries. Quarterly sales promotions will be carried out with a yearly education program set. Contingencies Blackmores will deal with competitor effects by introducing more natural and healthier vitamin and dietary supplement products. References Top of Form Top of Form Top of Form Bettignies, H, C, & Lépineux, F 2009. Business, globalization and the common good, Oxford: Peter Lang. Bottom of Form Chitty, W, Luck, E, Barker, N, Valos, M, & Shimp, T, A 2015. Integrated marketing communication, South Melbourne: Cengage Learning. Dou, R 2013. Proceedings of 2012 3rd International Asia Conference on Industrial Engineering and Management Innovation, Berlin, Heidelberg: Springer.Top of Form Heding, T, Knudtzen, C, F, & Bjerre, M 2009. Brand management: Research, theory and practice, London: Routledge.Top of Form Kitchen, P, J, & Pelsmacker, P 2004. Integrated marketing communications: A primer, London: Routledge.Top of Form Roth, M 2015. Top stocks 2015: A sharebuyer's guide to leading Australian companies, Milton, Qld: Wrightbooks.Top of Form Schnaars, S, P 1991. Marketing strategy: A customer-driven approach, New York: Free Press.Top of Form Tovey, P, Easthope, G, & Adams, J 2004. The mainstreaming of complementary and alternative medicine: Studies in social contex, London: Routledge.Top of Form Bottom ofBottom o Bottom of Form Bottom of Form Bottom of Form Bottom of Form Bottom of Form Bottom of Form Bottom of Form Bottom of Form Read More
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