Company and market analysis for Uncle Tobys Company

Company and market analysis for Uncle Tobys Company The Uncle Tobys Company has a long and vibrant history, having gone through several name, location and ownership changes to get it to where it is today. The Uncle Tobys Muesli Bars is the ready to eat product suitable for people of all ages, their philosophy was that improved diet leads to improved health by balance and nutrition. The Uncle Tobys company was originally established as Parsons Bros, in Melbourne by Leonard and George Parsons when they arrived in Australia from England in 1861 and commenced manufacturing John Bull Oats. In 1893, The Uncle Tobys Oats product was introduced to the market by Clifford Love and Co in Sydney and entered the homes hearts and of Australian families, its the first shown as Uncle Tobys products in trade market. In the past hundred years, Uncle Tobys renamed a lot of times until 1989, the company was officially renamed as Uncle Tobys Company, and the stage was set for the birth of the brand we know and love today, Launch of Yoghurt Topps Muesli Ba rs. Uncle Tobys was one of sections of the Goodman Fielder food company, yet was separated by parent company Burns Philp in December 2005. In 2006, Swiss food giant Nestle purchased Uncle Tobys manufacturing facility and brands. SWOT Matrix 6 Marks Product: __Uncle Toby Muesli bars______ Strengths Products have required accreditations Right products, reliability and quality Better product life and durability Good customer loyalty differentiated products Creativity and imagination of staff Weaknesses Customer lists not tested Organisational infrastructure No direct marketing experience Dont have a detailed plan yet Lack of marketing expertise Limited budget Opportunities Local competitors have poor products Could extend to abroad Can surprise competitors Could expand the scale of supplier deals Threats Legislation could impact Taxation is introduced on product Fierce price competition Possible negative publicity Competition from other providers The 4Ps Analysis ¼Ã‚ Product, Price, Place and Promotion Products Several kinds of finest cereal bars as health product for balancing nutrition products. An instant breakfast catering all segments who want health and quick breakfast without preparation. A tasty snack for children and also it could be supplement for older adult to consume. Uncle Tobys Muesli Bars is the wholegrain product. Wholegrain content is important in peoples daily diet; its naturally nutrient can help maintain your familys wellbeing. The products contain wholegrain oats and wheat. These are intact grains, which mean they are slowly digested and contribute to products low glycemic index (GI)*. Uncle Tobys Muesli Bars contain on average 7% of the daily intake for sugar per bar. This means you can enjoy the goodness of wholegrain in a tasty snack as part of a balanced diet. And here are no artificial colours and flavours in the product and they are all source of fibre products. Many of the products in Uncle Tobys range are high in fibre, with an average serving delivering at least 3g of fibre towards your daily requirement of 30g. Some fibres, such as the whole grain wheat can also act as a prebiotic, nourishing your friendly bacteria and helping with digestive balance. The Uncle Tobys Muesli Bars got 3 different types of packages; they are Standard Packs (6 bars/120g), Value Packs (12bars/240g), Value Packs (18bars/360g, WOOLWORTH only). And it also got nut crumble, apricot, choc chips these 3 flavours on CRUNCHY, choc chip, forest fruits, apricot and white choc chip these 4 flavours on CHEWY, strawberry, raspberry, apricot, mango passionfruit and honeycomb these 5 flavours on YOGHURT TOPPS. These means Uncle Tobys Muesli Bars provide different products with different flavours to satisfy the different needs of customers. The variety of products makes the company different from other competitors. The business concentrates on changing the products since new variants or ingredient created that enhance ultimate multisensory food experience for making lots of kind product to satisfy different target markets and maintain original target market loyalty. Price Table 1 Brand Price (per 100g) Carmans AU $ 2.28 Uncle Tobys AU $ 2.16 Nature Valley AU $ 2.14 Cadbury AU $ 2.09 Be Nature AU $ 2.08 Coles AU $ 1.56 Table 1 demonstrates the price of different muesli bars products brand that can be found in COLES. The highest price of brand of muesli bars is Carmans which values AU $2.28 per 100g. The product of Uncle Tobys ranks second high price in COLES (AU $2.16 per 100g) that indicates its price strategy associates with non-price competition. By contrast, the brand of Coles which is the lowest price (AU $1.56 per 100g) stands for price competition. As can be seen from table 1, Uncle Tobys adopts non-price competition strategies. It emphasizes characteristic product features, quality, service, packaging, promotion or other factors to differentiate its product from competing brands rather than focusing on price. Although Uncle Tobys takes non-price competition strategy, the annual sales generates more than US $600 million in terms of retail sales that is not corresponsively in undesirable results (General Mills 2006). In 2001, Uncle Tobys has a yearly turnover of about US $900 million (ITP.net 2005). A little bit higher prices than competitors due to higher product quality, unusual product features and brand reputation but usually get price discount for products. (High price-High quality policy) Place/Distribution The types of marketing channels for Uncle Tobys product is a long-standing channel that producer conveys goods to a wholesalers, then to a retailer, and a retailer sell the product to the consumers. It is the most economical distribution channel for Uncle Tobys to be a long-standing channel as costs is lower than Uncle Tobys performs marketing their products. The product of Uncle Tobys, locates to intensive distribution allots products to customers by a range variable of outlets such as supermarkets and convenience stores. Efficient distribution of Uncle Tobys product is that produces products to Coles, WOLWORTH, 7-11 and other similar supermarkets and outlets. Customers purchase over three-quarters of all groceries in supermarkets. In terms of convenience stores, it extends opening hours and locates in a convenient place that people can purchase product frequently. Beside people can order products form Uncle Tobys Muesli Bars through internet which leads to cost reduction for consumer and supplier and make more convenient to purchase or even buy product directly from manufacture. Promotion Uncle Tobys were working together with the Royal Life Saving Society-Australia with the goal of preventing the drowning deaths of more than 50 children each year. Uncle Tobys invest half million dollars over three years to help teach Australian children how to swim and survive in the water in partnership with Royal Life Saving. As one of Australias top sports sponsors, Uncle Tobys has a solid history of Olympic team sponsorship. From 1988 to 2008 the company was official sponsor of the Australia Olympic Team. Below-the-line promotion: indirect expenditure on promotion refers to those methods of promoting products that do not use direct advertising such as free gift or getting stars to endorse products or news and magazine storles featuring the product. Uncle Tobys also doing the promotion in the supermarket like WOOLWORTH, Coles. They offer the fair price at anytime. Uncle Tobys brand which has developed a reputation for successful above-the-line advertising (TV, radio, poster), that makes Uncle Tobys became the 29th sales in Australia. Physical Evidence The Uncle Tobys name is synonymous with high-quality, great-tasting food the world over, so the promotion for their product always focus on delicious, tasty and high-price get high-quality. More recent years Uncle Tobys was one of the first in food industry to print Guideline Daily Amounts(GDAs) on the packs of product for showing the percentage of the recommended intake of calories, sugar, fat, saturates and salt for each portion of product clearly as Uncle Tobys is being a nutritionist. Hence the products from Uncle Tobys pay more attention on balance nutrition and health eating. Process The manufacturing system includes 3 parts in process: processing, packaging and storing. Packaging and storing- The cereal will be send to packaging area once they passed the quality check and place it into individual box and cases, then transport by conveyer belt to warehouse until they shipped to stores for retail sale. Conclusion The product variable in marketing mix emphasis health and quick cereal breakfast or snack without preparation which fit all ages, it means wide range of target market such as health claim are more popular for everyone, female are shape conscious and convenient food are common now, more price variable pays more attention on the target market who willing to pay a little bit more for higher quality product than competitors but sometime the customer will get reward for loyalty or price discount ( see promotion ).Also this business done well job at boost sales and brand value by using varied promotion methods since this business established, they try to make products available on hand everywhere as well. The buyer for Uncle Tobys Muesli Bar will be parents or older adult and cereal are purchase one of the fastest-moving product in supermarket, also research shows the most influencer are kids. Despite they pay more attention on target market for 8-11 years child, but Uncle Tobys Muesli Bar hard to make product diversify for growing different target markets for increasing profit, they wish their products not only for everybody but also can be consumed in any time, Uncle Tobys Muesli Bar contains comprehensive target markets for example health and instant breakfast for everyone, sweet snack for chide and adult, also supplement for older adult which Uncle Tobys Muesli Bar can be consumed all day in different ways. Successful business use all the tools at their disposal to stay at the top of their chosen market and Uncle Tobys Muesli Bar are able to use a number of business tools properly in order to successful in ready-to-eat cereal market by re-position the brand through the use of marketing mix, return the brand to grow, improve the frequent of purchase and introduce new customers to brand. This business is sound marketer to carefully segment and deliver an outstanding proposition for their customers. The vision and idea from founder Uncle Tobys which strong commitment to nutrition, health and quality driven improvement for their products and process to make Uncle Tobys business being a leader of cereal and snack producer in the world.