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Marketing Project - Deluxe Case Study (2009)
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Marketing Project 2009 Case Study of Deluxe Foods Ltd. (Globalization VS Localization) Question as Stated Below: Jessica Walters, marketing manager of Deluxe Foods, Ltd.—a Canadian company—is being urged to approve the creation of a separate marketing plan for Quebec. This would be a major policy change because Deluxe Foods’ international parent is trying to move toward a global strategy for the whole firm and Jessica has been supporting Canada-wide planning. The Quebec market was in many ways different, she wasn’t sure how far the company should go in recognizing this fact. She knew that regional differences in food tastes and brand purchases existed not only in Quebec but in other parts of Canada as well. But people are people, after all, with far more similarities than differences, so a Canadian and eventually a global strategy makes some sense too. Jessica Walters was afraid that giving special status to one region might conflict with top management’s objective of achieving standardization whenever possible—one global strategy for Canada, on the way to one worldwide global strategy. She was also worried about the long-term effect of such a policy change on costs, organizational structure, and brand image. Still, enough product managers had expressed their concern over the years about the Quebec market to make her wonder if she shouldn’t modify the current approach. Perhaps they could experiment with a few brands—and just in Quebec. She could cite the language difference as the reason for trying Quebec rather than any of the other provinces. But Walters realizes that any change of policy could be seen as the beginning of more change, and what would Minneapolis think? Could she explain it successfully there? Evaluate Deluxe Foods, Ltd.’s present strategy. What should Jessica Walters do now? Explain
Transcript of Marketing Project - Deluxe Case Study (2009)
Introduction
Introduc)on • U.S. based consumer
packaged-‐food company – Headquartered in Toronto, Canada.
• Brand preferences throughout Canada
Deluxe Food • $2.8 billion worldwide sales • $450 million Canadian sales with 69% contributed from Quebec and Ontario.
• Introduced 6 new products annually for the past five years.
Management Style
• Jessica Walters as markeQng manager. • Monthly meeQng with product managers to discuss developments in local markets that might affect markeQng plans.
• Each managers are free to make suggesQon but final approval relies on Walters.
Possible Reasons
• InflaQon • Threat of job losses due to poliQcal reasons • Lack of managerial Qme and money spent on Quebec market. • 80% of Quebec market are French speaking community.
• GlobalizaQon strategy does not communicate the brand image.
Current Problem
Declining sales growth in Quebec for the past two years.
SWOT Analysis
SWOT Analysis
SWOT Analysis Internal Factor
• Strengths – ConQnuously introducing new products ( at least 6 new products introduced every year)
– Increasing sales for the past 4 years – Ability to control all phases of the food business from Toronto (monthly meeQng with product managers)
– Wide distribuQon network
SWOT Analysis Internal Factor
• Weaknesses – Inflexible global strategy it is currently adopQng – Straight translaQon may not be able to communicate the same brand image
– Lack of understanding of the Quebec market – Slow respond is making decision between localizaQon and globalizaQon despite concerns from product managers
SWOT Analysis External Factor
• OpportuniQes – Growth opportunity in other 8 regions in Canada – Increase spending on convenience food by consumer
– Greater demand for healthier food (health conscious populaQon)
– Healthier frozen breakfast – Expanding their channels of distribuQon
SWOT Analysis External Factor
• Threats – Presence of compeQtors – InflaQon (Country’s economy) – The threat of job losses to poliQcs
Compe)tors • Stouffer’s by NESTLE – Known for such popular fare
• Meatloaf, Salisbury, steak, lasagna, macaroni and cheese, and ravioli.
– Most of which are French oriented food – InteresQng website with Recipes suggesQon – Dinner for One and Dinner for Family – Dinner reward such as “Travel”, “Electronics” and “Home”
Globalization VS Localization
Current Situa)on • Top management – StandardizaQon • Product Managers – LocalizaQon DefiniQon of GlobalizaQon: “… Operates with resolute constancy-‐at a relaQve low cost-‐as if the enQre world (or majority enQQes of it) were a single enQty; it sells the same thing in the same way everywhere.”
Theodore Levi, Harvard Business Review
Evalua)on Table According to 3 Ps
• 3 Ps of InternaQonal MarkeQng Table:
Evalua)on Table – Actual According to 3 Ps
• Deluxe Company:
Deluxe Food • Weighted raQngs of Quebec & Ontario on a scale of 10
Choice of Marke)ng Strategy
• Average of 5.8 in the evaluaQon table • Adopt GlocalizaQon • Especially due to nature of product DefiniQon of GlocalizaQon: “Reconcile the need for consistency of the presentaQon of the brand in all communicaQons across the world, as well as the need for consistency of the presentaQon of brand in all communicaQons across the world”
Product
Suggested Marketing Mix
Product • Staple products
-‐ RouQne rather than habitual
• Actual products -‐ Cake mixes, puddings, pie fillings, pancakes, prepared foods, and frozen dinners.
Core Product • Taste – Do not enjoy cooking but eaQng
• NutriQon -‐ Part of their health and wellness
• Convenience -‐ From store to home
Branding
• Brand name -‐ “Deluxe Food”
§ Short & simple § Easy to spell and read § Easy to recognize and remember § Easy to pronounce § Can be pronounced in only one way § Can be pronounced in all language
§ SuggesQve of product benefits § Adaptable to packaging/ labeling needs § No undesirable imagery § Always Qmely § Adaptable to any adverQsing medium § Legally available for use
• Logo – 5 Main Steps – Visibility – Applica)on – Simplicity – Color – Timelessness
• Logo – Warm colors
• Red and orange used – Classy font – Professional image
• Side view of chef
• Slogan
– CompeQQve advantage of providing good quality – Short and direct
Packaging
• ApracQve packaging – NutriQon label – Print Materials and RelaQonships with Health FoundaQons
Double Chocolate Muffin Mix
Price
Suggested Marketing Mix
Price
• Value-‐based pricing • Value-‐opQmized pricing
Place
Suggested Marketing Mix
Place
• Geographical market Canada • LocalizaQon market [Quebec] – Key to ability to apract customers – Major impact on retailer’s profits
Site Loca)on • Major supermarkets • “Mom & Pop” stores – Stocked a higher proporQon of shelf space for Deluxe foods in Ontario
– Fast disappearing in Canada except Quebec
Increase of Shelf Space Availability
• Extension of ExisQng Shelf Space – Increase of shelf space in supermarkets – Placement of products on the middle shelves (Eye-‐level view)
• ApracQve Portable Stand -‐ ApracQve yet portable new shelf stand -‐ Creates specialty and public awareness
Designated tailored shelf space
Beper “retail environment” “Retail environment" is meant to be used interchangeably with retail store, and generally refers to a business or establishment that offers consumer products for sale.
Increase Distribu)on Channels
• Convenience Stores – Placed products in well-‐established line of convenience stores
Examples: “AlimentaQon Couche-‐Tard Inc”, “Beckers Milk’ and “Quickie Mart” or the world’s largest convenience retailer, “7-‐Eleven”.
• Specialty Store: Deluxe Gourmet Store -‐ Direct distribuQon -‐ Superior value to selected target market
Example: ‘Deluxe specialty gourmet store’
ü Cater and sell Deluxe Food products ü Niche market and a brand new experience
‘Deluxe specialty gourmet store’ ü Quality and service ü Feed back and suggesFons ü Future changes and development ü CreaFng more value than compeFtors
Promotion
Suggested Marketing Mix
Promo)on • Current Strategy – Standardized AdverQsing method – Quebec: Straight translaQon from English to French
• May be IneffecQve – Context of messages may not project brand image in Deluxe
– Maximum exposure is needed to heavy weightage
Recommended Strategies “Push” Strategy
• Push Strategy – AcQve engagement to push product to consumers
– Great Strategy to introduce product – Push-‐markeQng makes your brand pervasive and ubiquitous • “Pushing” product to let consumer try out
Media Adver)sing
• Media AdverQsing – Raise mass awareness – Through different channels such as: -‐ Radio, TV, magazines, and even trains
• Possible outlook of Deluxe’s Campaign
Media Adver)sing
• Sponsoring of TV shows – Especially in Quebec
• In this region, TV talk shows that feature topical issues and discussed over dining table • “Joie de vivants” – Quebecers “enjoy life” • “Bon vivants” – Enjoy talking, eaQng and socializing
Recommended Strategies “Pull” Strategy
• Pull Strategy – Consumers are apracted by the product of company and draws themselves towards company
– This strategy encourages customer to seek company out
Websites www.deluxefood.com.ca
Deluxe Food Nourriture dse luxe
Products > Baking Mix > Muffin Mix
>> Double Chocolate Muffin Mix
Double Chocolate Muffin Mix
Double Chocolate Muffin Mix
Whole wheat flour and high-‐fiber cereal are the goodies tucked in a chocolate-‐lover's sweet muffin.
Prep Time: 15 min Start to Finish: 35 min Makes: 12 muffins
GO Nutri)onal value
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• Websites – Easy NavigaQon
• Provides all informaQon – NutriQonal informaQon, Company history and etc.
• Warm color palepe that is consistent with brand image • Main categories and search bar available on the lex panel • AcQviQes and recipes to encourage repeated visits
Glocaliza)on in Promo)on
• Localize adverQsing and promoQon, but have a consistent brand image – Localized AdverQsing
• Use of words – No direct TranslaQon – Using “play of words” -‐ “Jeax de mots” – Appeals to Quebecerss’ love for language and sense of humor
• Careful choice of Color palepes – Quebecers prefer bright colors
Conclusion: It is recommended that
applies Glocalizaion
