Sustainable Marketing And Management Tassal Salmon Oroducer Company

Question: Discuss about the Sustainable Marketing And Management Tassal Company. Answer: Introduction Tassal is one of the largest Salmon producer companys in Australia operating in the Tasmanian Seafood Industry. Tassal is a combination of Tasmanian and salmon and is one of the Australias largest food businesses with a local market share of approximately 65% (Wallis, 2011). The company owns two hatcheries, six marine farms as well as three processing facilities. Tassal has continued to experience growth despite the global oversupply of salmon that has caused a drastic decline in prices. The sustainable growth is due to Tassals shift of focus to the local market. For instance, the company experienced n increase in net profit after tax in the previous five years despite the companys decision to exit the lower-return market. The companys strategy on infrastructure investment and their focus on growing domestic market per capita consumption present excellent strategies that ensure delivery of sustainable growth (Wallis, 2011). Marketing Background of the Company According to Tassal market research, the consumption rate of salmon per person stands at 1.6 kg annually. However, the company aims to improve this up to over 3kg annually which is the European average. This is possible through substantial investment in retail stimulus programs, product development and quality branding mechanisms (Wilkins, 2005). For the purpose of raising awareness on salmon as the best protein option besides chicken and beef in Australian households, the company launched first TV advert campaigns. The advertisement focuses on showing a range of simple salmon dishes with highlights on freshness, health, and versatility. The marketing campaign also involves print ads in lifestyle magazines as well as recipes on some of the leading recipe websites. The rise in demand for salmon in Australia is attributable to increase in awareness on healthy eating, simplicity in cooking and convenience including influence from Asian cuisine on Australian diet (Luther, 2013). However, the processes of marketing products from the Company have been progressive through accrual on increasing sales to its brand as well as their line of products. This is since the company offers diversified products that are aligned towards customer taste and needs (Ahmed and Rafiq, 2002). Such sound marketing strategy is possible through the provision of robust and efficient distribution infrastructure, application of strategic product pricing, as well as giving elaborate and diversified product portfolio (Andruss, 2010). Positioning Tassal ensures the creation of brand awareness through print and TV advertising especially during major holidays like Easter and Christmas seasons. The market demand from the same market segment incorporates different consumer needs, therefore, the possibility of users having the desire for various and unique offers within the same segment. Such cases demand that the product supplies brand with unique characteristics geared towards satisfying consumer needs. This requires that the company prioritizes in accordance to distinctiveness, importance, superiority, communicability, affordability as well as high levels of returns (Kotler and Keller, 2007). The strategy on positioning as used by the company ensures sustainability is maintained by producing and supplying healthy food products to the market. The extent of potentiality that the Company can utilize is clearly perceived through Grahams Easy Matrix, see Appendix II. Product vs. Sustainability The product range for Tassal includes fresh, canned, frozen and packed salmon. For sustainability purposes, the company invests heavily on farming waters infrastructure as well as bio-asset and distribution network. Tassal spends heavily on capital infrastructure that underpins the production in farming and processing. This ensures full maximization on production efficiencies as well as growth while minimizing risks. The need to increase automation and streamlining technology increases volume while concentrating on value addition, therefore, lowers operating costs (Payne and Holt, 2001). Price vs Sustainability The changes made in pricing mechanism in this industry affect demand, therefore, making the pricing system to be considerably highly elastic. This is since in such cases the consumers preference is to embrace substitute protein products with affordable prices of probably of similar qualities (Lindgreen and Finn, 2005). Importantly, the company utilizes strategic changes within its product distribution strategy whereby they give discounts on large purchases of company products, and at the same time, the company uses loyalty programs through distributors which are useful in making up for issues on price elasticity. The sustainability of the companys presence in the market calls for the implementation of premium pricing as a strategy that eventually assists in price justification of products by quality. Such system is capable of producing maximum benefits not only to the company but also to distributors and retailers of the products (Fill, 2009). Sustainability requires that Tassal changes its pricing strategy where penetration pricing technique seems appropriate. The pricing mechanism is preferable since the technology proves efficient in situations where intensive distribution channel is applicable for the sole purpose of intensifying product presence within target markets (Fill, 2009). In this case, it is possible to reach and satisfy customers who focus on value and quality in products within different market segments. It is also crucial that the company should develop strong partnership relations with large retailers within each market segment since this ensures the expansion of distribution channels that eventually contributes to higher sales (Piercy, 2009). Promotion vs. Sustainability In stimulating retail sales, Tassal runs price promotions with both retail and wholesale customers. In this case, Tassal also supplies cards with branded recipe that ensures effectiveness in communicating its brand profile. Tassal does most of its promotional programs through the leading recipe website such as Taste.com. They utilize the companys website in performing various promotional activities (Chaffey et al., 2009). The selling point of the companys advertisement on the internet depends highly on online brand recognition. The reason being, such ad utilizes the aspect of graphics to depict quality, an aspect that is crucial to ensure the brand maintains leadership in various market segments (Egan, 2007). The companys promotional activities through the internet are tailored to capture the attention of the families who are the majority in the largest market segments for protein products. The marketing strategy is sustainable since it leads to a significant influence on product sal es within target market segments of fresh, tinned, frozen and smoked fish. The sustainability part of it comes in the branding of salmon as fresh through internet marketing owing to easy accessibility and low costs involved in comparison to other forms of marketing (Clakins, 2012). The application of creative advertising as a promotional tool on the media platform should account for approximately 70% of all resources allocated. These resources are those focusing on sensitizing consumers concerning the benefits of its products. (Drewniany and Jewler, 2008). On the other hand, the company should ensure allocation of significant percentage to print media and internet advertising. In this case, the media advertising mechanisms should portray the product as having an advantage in quality over the competitors. Moreover, Tassal should utilize the personal selling mechanism as one most active channels of advertising for its low costs. Besides, its means of execution is simply face-to-face communication, use of coupons as well as loyalty programs within various segments (Drewniany and Jewler, 2008).For sustainability, the Marketing executives engage in product marketing, whereby they have the responsibility of ensuring appropriate allocation of resources necessary for p romotional activities. Such marketing processes should incorporate important aspects of public relations, advertising, and sales promotions. However, the process calls for an elaborate research that is necessary as precedence to any implementation plan within target markets. Such process guarantees the existence of a robust relationship between consumers and Tassal's products (Kotler and Armstrong, 2012). The use of promotion mix that involves awareness campaigns through such channels as social media and the internet are vital to the success and progression of the company within the industry (Barker et al., 2013). In this case, creativity in advertisements captures potential customers for they present product qualities. In this case, extensive publicity and personal selling are possible promotional tools that ensure the Company attracts a significant percentage of consumers within different market segments. Consequently, an aspect of identifying how effective marketing relates with productivity proves to be a major factor especially in defining market position (Omera and Bernard, 2007). Importantly, such products require the use of celebrities and third-party endorsers to reinforce the product brand image amongst the young generation globally. Place/Distribution vs. Sustainability For sustainability as the largest farmer of salmon in Atlantic, the company chooses to be selective on business partners despite having economies of scale. For instance, the company opted to cut its distribution contract with one of the largest supermarket chains in Australia, Coles for the reasons of ensuring stock sustainability in the long-run (Wallis, 2011). The strategy makes the company avoid over-reliance on few large buyers. Therefore, the remaining fish surplus can as well be exported at rather higher costs in the global market. The aspect of developing supply chains in Asian emerging markets presents the company with growth opportunities (Wooten, 2011). In the current global market, there is a necessity for Tassal to identify effective distribution channel that touches on all target populations within various segments. For instance, in the Australian market, Tassal makes use of retailers as well as chain stores for the purpose of distributing products. The other efficient and sustainable method involves the use of strategic alliances, for instance, the acquisition of De Costa Seafood opened a new market for the company, increasing its total target market from salmons $ 700 million. The entire market now includes over $ 4 billion in seafood. The acquisition made it possible the increase in revenue of over 50% in the last half of 2015 (Christenson et al., 2017). The strategy on leveraging current operations, distribution as well as reducing production costs has helped in improving margins for De Costa. Sustainability calls for the company to consider maximization on salmon growth efficiencies, making use of selective breeding to improve the size and also maximizing conversion ratios. The aspect of utilization of supermarkets on a frequent basis owing to their ability to accommodate and stock different products having the same brand name is necessary. This is contrary to convenience stores that only deal with a limited line of the pro ducts. However, such distribution mechanism demands enhancement through availing of goods to retailers of different kinds; off-premise and on-premise (Eggert and Ulaga, 2002). The aspect of diversification of products ensures the manufacture of products that are capable of satisfying the various consumer categories within different market segments. However, taste and nutritive requirements are crucial ingredients that guarantee recovery and enlargement of the companys market share. The other consideration should involve portraying salmon as a convenient and delicious source of protein that is easy to cook and economically feasible to consumers, not forgetting the producer. The success of the entire process of distribution demands an elaborate investment mechanism within the distribution infrastructure (Baker and Hart, 2007). The efficiency within the distribution channels of the company requires the incorporation of many distribution centers within the target market segment (Khanna, 2010). At the same time, the location of the storage facilities should be considered, whereby sustainability calls for the allocation of such facilities to be at closer proximity to production and breeding facilities. At the same time, the entire distribution should be done through the companys network of distribution channels that comprises convenience stores as well as supermarkets (Weihrich, 2010). From the perspective of Paas (2009), involving sound strategy in marketing products requires an elaborate plan that ensures implementation and development of innovative technologies. The use of direct marketing through social sites, emails and companys websites as previously discussed in this paper is appropriate. Additionally, the use of actionable data that incorporates the use of different databases that gives customer inform ation and inventory movement including the records of product returns is crucial. Such initiatives are critical when it comes to the point of identifying potential clients who usually identifies closely with the companys products. Such cases can utilize best multi-channel marketing procedure, which presents the best means through which products can reach consumers of different categories (Barnes et al., 2009). Comparison to Rivals The industry structure in most instances is perceived to be oligopolistic. This is since there are few dominants within the market, which accounts for a higher percentage of available segments. In this industry, the two lead players are Huon and Petunia (Porter, 2013). Notably, it is important that the analysis of the products within this industry be done based on competition within the market and especially by market share (Fifield, 2007). The seafood industry is characteristic of stiff competition amongst the rival groups; the few companies have dominance in the global market for quite some time. The industry records annual farming of approximately two million tons of salmon on the global front. The industry identifies Chile and Norway as worlds largest producers of salmon with 38% and 56% respectively of worlds production. However, Australia contributes a negligible percentage of approximately 2%. Tassal accounts for 49% of the total volume of salmon farmed in Australia. The other main competitors in the market are Huon and Petunia accounting for 38% and 13% respectively (Christenson et al., 2017). Recommendation Tassal should not only focus on market sustainability but also concentrate on environmental sustainability as one of the purchasing drivers for seafood. In this case, the focus should be on how to utilize waste waters from their hatchery facilities. For instance, such waters can be used for irrigation on agricultural lands. On the other hand, the product range of Tassal demands that they should identify and concentrate on the key buyers of seafood products within the various market segments. In this case, the key buyers are mainly independent retailers, distributors, shopping malls, and on-trade establishments. This, therefore, requires the use of updated strategies capable of attracting and retaining potential customers. Notably, the aspect of buyer power increases by the presence of large shopping malls as well as hypermarkets that account for a significant percentage of total market percentage; this provides consumers with the opportunity of high negotiating power. For this purpos e, Tassal should note that strong brands attract the consumers in the seafood market; therefore, the company should develop a strong brand with an inclusion of fresh products that will contribute towards the companys success in obtaining considerable market share (Close, 2012). References ACNielsen. 2010. Marketing Information Company providing research, information, Analysis and Insights to consumer products and service industries. Available at https://www.acnielsen.com/ Ahmed, K., Rafiq, M .2002, Internal Marketing tools and concepts for customer Focused management, Heinemann Elsevier, London Andruss, P. 2010. Market Segmentation. Marketing News, 6(44), 25 Baker, M., Hart, S. 2007. The Marketing Book. London: Routledge. 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