Marketing in Business

Fresh Farm Inc. is an international food company based in the UK, Ireland and the USA. The company consists of four business areas: cheese; processed consumer foods; fresh meats; and catering foods. The company currently employs over 8,500 personnel worldwide and Fresh Farm Inc. is one of the world¡¦s top five cheese makers. The company is the largest producer of pizza cheese in Europe, and the largest cheese maker in the Northwest of the USA. In addition, it is the second largest fresh meat producer in the UK and Ireland.
The case for this assignment concentrates on the production of the cheese products within Fresh Farm Inc. and especially in its Yorkshire Dales Cheese Company, a subsidiary based near Masham, North Yorkshire, in the UK. There have been a number of problems facing the company over the past two years as a direct effect of the macro-environment. Competitive analysis, using Porters Five Forces, was undertaken for the cheese section of the business, which highlighted a number of potential difficulties (See table – Porter Five Forces outputs).
Further consumer research identified that there was a problem with the company¡¦s branding of these cheese products. The research indicated that there was no clear distinction between Fresh Farm Inc. brands, and the supermarkets own-label cheese brands. However, Fresh Farms Inc. had also secured sizeable contracts with large retailers in Europe for the supply of own-label cheeses.
Research also indicated that the consumers have an on-going interest in food and wine. According to the research, they are interested in the enjoyment of food. In the UK there are large numbers of affluent 20-35 year olds who enjoy food. This group enjoys stronger tastes in food and drink products such as specialist coffees and teas. As a result, it was concluded that consumer tastes were also developing in favour of stronger tasting mature offerings in the cheese market. This group also enjoys experimenting with food such as ethnic and speciality foods. Further, the research also showed that dual purchasing (two types of cheese being purchased) was being undertaken. For example, one type of cheese purchased by the actual buyer and another type of cheese being purchased by the buyer for the buyer¡¦s partner.
The research also suggested a tendency for snacking and ¡¥grazing¡¦ (occasional bites of the product) rather than sitting down for a full meal in the home. The research also indicated that health is still a key priority in the minds of consumers, with low fat and convenience being important in the buyer¡¦s decision-making process.
This research was used to help with the launch of Fresh Farm Inc. new brand of mature cheddar Black Barrel in 2008, which was processed and matured by the Yorkshire Dales Cheese Company.
The Launch of Black Barrel Mature Cheddar Cheese:
The Yorkshire Dales Cheese Company, the UK cheese division of Fresh Farm Inc., developed the Black Barrel brand of cheese and launched it in response to consumer demands for a healthy option in the cheese sector. This brand was seen to offer the optimum balance of taste, quality, modernity and distinctiveness. Packed in two sizes (a 200g package and a 2kg delicatessen block for cutting at the counter) it was formulated and designed to attract the affluent young market (ABC1/C2) over 25 years of age. The launch secured maximum shelf impact with all of the major supermarkets in the UK, with a distinctive merchandising tray and versatile wedge-shaped packaging. A comprehensive launch support package, with a special trial price and image-based advertising communicating the ¡¥sheer pleasure¡¦ of eating Black Barrel mature cheddar cheese was implemented.
Marketing in Business September 2013 Final 㦠NCC Education 2013
However, the research two years later has indicated that the brand recall for the Black Barrel brand was very low amongst its chosen target audience. Sales had not grown as anticipated, and there appeared to be no clear distinction between Black Barrel and the supermarket¡¦s ¡¥own-label’ brands of mature cheese in the minds of the target consumers. There was also what seemed to be some evidence of consumer product switching based on price.
Porter¡¦s Five Forces ¡V as conducted by a research agency for Brand Manager.
Bargaining power
Of buyers
Power of
Suppliers
Existing
Competitive Rival
Threat of New
Market Entrants
Threat of
Substitutes
Consumer health:
Concerns about fat concentration levels in dairy market-place products retailer (buyer)
Declining milk
pool (prime ingredient) cheese making short term environmental problems
Established
¡¥niche¡¦ players specialists in own label cheese making and packaging
Low entry cost for smaller cheese makers
High
Low levels of consumer strategic experimentation
Trend towards larger co-operative relationships
High fixed costs
Potential relationships
Own label growth, dominance in the market-place increasing consumer product
choice
Relatively low consumer perceptions of differential between cheese
Low
Scenario
You are employed as a marketing analyst and will work with the Brand Manager for Yorkshire Dales Cheese Company.
The Brand Manager has asked you to produce a full report to address a number of concerning areas regarding the Yorkshire Dales Cheese brand, Black Barrel. You should address the report, in your role as the marketing analyst, to the Brand Manager.

Task 1

Discuss the marketing concept of Marketing Orientation and explain the importance to the Yorkshire Dales Cheese Company of adopting a marketing-orientated approach to their marketing of food products such as cheese.

Task 2

The Black Barrel mature cheese appears to have enjoyed only a short product life cycle. Evaluate why you think this may have occurred, and explain how you would utilise and adapt the marketing mix for this brand, which now appears to be in decline.
Marketing in Business September 2013 Final 㦠NCC Education 2013

Task 3

A suggestion has been made to both your Brand Manager and yourself. The idea is to once again conduct market research to establish why the Black Barrel mature cheese brand had not been successful. Suggest and justify the types of market and marketing research, which could be used.

Task 4
Apply both PESTLE and SWOT analyses (marketing tools) as appendices to your report. The SWOT should be conducted in ¡§a relative mode,¡¨ comparing a leading ¡§own brand¡¨ of mature cheese, to Black Barrel mature cheese. Evaluate your findings in the body of your report.
Task 5
Based on the information you currently have, outline a marketing strategy and plan to re-launch the Black Barrel mature cheese. You may use any of the suitable accepted marketing plan structures in order to complete this task.
Task 6
Be sure to present, format and structure your report to the Brand Manager appropriately. A bibliography and sufficient referencing should also be used.

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