The business will determine the price of this product very carefully, because they do not want to make the price is not suitable with the market’s condition. Kraft Tiger Energy which are included in elasticity products that the cross-price elasticity of demand will be negative or positive it depends on whether the two products are complements or substitutes (Hubbard et al 2010, 109). The determined of the price is very important because, if consumers feel that the price is greater than the product’s value, they will not buy the product (Kotler et al 2009, 349). The Producer of Kraft products must carefully to set their price, if they set the products overpriced, the quantity of demand for their product will decrease, because of that they must make an equilibrium price to prevent this situation.
- Current Distribution
The distribution of Kraft Tiger in the market is spread widely, almost all supermarkets in Singapore sell Kraft Tiger. Kraft Tiger is able to reach a lot of consumers because they have a high scope distribution. There are a lot of locations that consumers can find this product because this product is distribute all parts of Singapore, such as in Market Place, Carrefour, Giant Hypermarket, Fair Price, NTUC and Cold Storage.
The distribution of this product is an indirect channel, in this case Kraft Tiger uses intermediaries to distribute their products which give opportunity to the consumers to get Kraft Tiger from wholesaler or retailers that acting as a unified network (Kotler et al 2009, 396). Kraft Tiger distribute their product to consumers by use of wholesalers and retailers which act as their intermediaries to reach an extensive distribution (Michael J. Baker, 2002). The consumers cannot buy this product directly from the producer and they only get this product from supermarkets due to the limited connection between consumers and producer, supermarket is the related intermediary between producer and consumers (Michael J. Baker, 2002).
Kraft Tiger is included in convenience product (Kotler et al 2009, 272), which are sold in a low-price and wide distribution, this thing will not make the consumers get difficulty to find this product. Kraft Tiger is a product which is purchased in a frequent time, because of that the consumers will purchase this item without planning and they will purchase this item frequently. The Consumers will buy it because they have already known that Kraft Tiger have a high standard quality and the products will available everywhere due to the wide distribution of this product (Kotler et al 2009, 272). Kraft Tiger also will satisfy their consumer’s needs, because of that they use channel decision (Kotler et al. 2009, 393) to control their products and try to have a greater efficiency of selling their products in market. Moment of consumers are purchased this item frequently, it will make the quantity of demanded will stable, which will help the producer to distribute Kraft Tiger.
- Current Promotion
Kraft Tiger, as a high standard product will be need to attract their consumer’s attention. In this case, they advertise their product in internet and television. The most famous advertise sentences are “Bring Out The Energy” (Bring out the tiger n.d) and “There’s a Tiger for everyone! Choose your Tiger range of biscuits to find out what goodies are packed inside them”(Kraft Foods. n.d). These two advertisements are familiar in their products. Their interesting sentences of their advertisement can make the consumers become more interest and it will make their consumers trust that they will get extra energy after they consumed Kraft Tiger.
Kraft Tiger use some promotions to reach their targets to attract consumers, when Kraft Tiger advertise their product they used asynchronus communication which is able to carry on a one-way communication with the consumers (Kotler et al 2009, 449). The advertising that they are used can make an integrated relationship between producer and consumers that can make consumers feel comfortable with the product’s offer. On the other hand, producer also want to reach higher target such as, trigger quick in sales that can make more profit for their product, with their advertisement it can make their product is become well-known. They use a lot of promotional tools that positively will effects to the consumer readiness stages of awareness, preference, purchase and knowledge. (Michael J. Baker, 2002). This thing will impact their consumer’s behavior to be more loyal to buy Kraft Tiger.
Kraft Tiger are using combination of slice of life, fantasy, mood or image and personality symbol (Kotler et al. 2009, 462) in their current theme promotions which are their message execution. The illustration of the combination of their message execution can be seen in their special features that represent about their product, which is a tiger called Tigo which illustrate to consumer to have energy like a tiger, after they consume Kraft Tiger. This symbol is show the company’s expertise to making their product become more interesting and try to take their consumer’s attention, (Kotler et al 2009, 462) to attract their consumers and reach their target market which focus on the company’s marketing effort.
Generally, the purpose of advertisement is to make consumers think about the product of the company in a certain way. In this case, Kraft Tiger is promotes their product which is sending by the company in a same messages to their consumers, it is happened because the company has same purposes that is want to keep their product is always well-known by their consumers and they want to have extra benefits of their advertisement with use same message, that can make the outflow of their budgeting can be more efficiency.
- Situation Analysis/Current Marketing Mix
- Segmentation Theory
Market Segmentation is a concept that dividing the market into direct group of buyers that used to matching of the consumer needs (Kotler et al. 2009,228). This concept can be used as a marketing tool that depends on the most appropriate variable which is used to subdivide the total of demanded into economically viable segments (Michael J. Baker, 2002). This is the most important thing for some corporation to know how they must make the market segmentation which has a lot of impacts for their business in the future. Especially, for a big corporation this concept is very useful to retain more consumers, coordinating commercial activities and reach better opportunities to growth. (“MBS posts bumper profit”, 2011, A4)
- Explain 3 benefits from using segmentation
Market segmentation is important concepts that must be used by all companies to reach their target effectively and efficiently. In this case, Kraft Tiger uses geographic segmentation which based on geographic variables (Kotler et al. 2009. 230). In modern country, instant snack is very useful consumptions and it is become daily need. In this case Kraft Tiger can use the opportunity of their instant snack to reach more consumers and they used geographic segmentation to make the best decision to distribute their product widely.
Psychographic segmentation is also used by Kraft Tiger to learn about their consumer preference for their product. In this case Kraft Tiger produce some different tastes of their product to satisfy their consumer’s needs, such as children that like chocolate tastes, and for consumer who do not like chocolate the original tastes is design for them and also the susu tastes that can replace the usefulness of drink milk. This case are shown that psychographic segmentation is helping Kraft Tiger to determine what kinds of products they must produced related to their consumer’s preference.
Kraft Tiger also use the market segmentation especially for behavioural segmentation. In this case, Kraft Tiger learn about their consumer’s loyalty on their product and the impact on the quantity demanded, if the price of the product is change that related to the elasticity of this product (Kotler et al. 2009, 237). Moment of the producer know about their consumer’s loyalty can impact the production in their product become more effective and efficient.
- Target Market Identification
- Geographic Segmentation
Singapore which is a small city that located in South East Asia, which total area is only 647.5 sq km (About Singapore, n.d). This situation will make Kraft Tiger have easy way to distribute their product and dispersed all areas in Singapore by using intermediaries such as supermarket and retailers. Singapore density is included in an urban, which is led the country is in modern era and with a small numbers in unemployed resident. Mainly, this situation will make married career women busier with their own business and want instant things. The impact of the urban lifestyle will give opportunity for Kraft Tiger to sell their product, due to the practical matters and will make people consume instant snack.
Like most of South East Asia country, Singapore is generally has hot weather and interspersed with rain in all areas. The temperature is 30 degree of Celsius in general and never touch below 20 degree of Celsius (About Singapore, n.d) which is included in Eastern seaboard (Kotler et al. 2009, 231) will make extra benefit for Kraft Tiger to distribute and sell their product in Singapore because the temperature is suitable with Kraft Tiger which is cannot be sold in country which has a low temperature, because it will make the crunchy of the biscuits will decrease. Singapore which is has smaller number in city size which only 4 million people (Singapore Demographic, n.d) will make Kraft Tiger is easier to distribute the product in Singapore because the cost of distribution can be reduced to make the distribution of Kraft Tiger is more efficient.
- Demographic Segmentation
Kraft Tiger is targeting their consumer in Generation X (Kotler et al. 2009. 232) for their product, with age between 30-40 years old. Generally, married career women have incomes about $10.000-$15.000 monthly to fulfill their daily needs (Kotler et al. 2009. 231). In this case this will make married carrier women will not think too much about price difference between Kraft Tiger and their competitors because they will prioritize the quality of the product.
Kraft Tiger is target their market for married career women that do not have a lot of time in their home, this things give opportunity for Kraft Tiger to produce their instant snack that can be carried every time. Generation X usually is categorized in Full Nest I (Rama Rao, 2010) in the life cycle stage, whose has children, this situation make Kraft Tiger produce family pack in their product that is a very useful food for their children to carry out in their daily activities and also can be provisions food for their children which is brought to their school.
- Psychographic Segmentation
Married career women is recognized in Thinkers (About VALS, n.d) stage of lifestyle in VALS2 classifications, this situation make married career women pointed to high incomes about $10.000-$15.000 (Kotler et al. 2009. 231). Married career women is included in lifestyle targeting in activities part which is in communities because generally married career women always assimilate themselves to communities, interest that they focus in food to fulfill their daily needs, and lifestyle targeting in opinion is in products because they are sensitive with some products. Married career women also included in Roy Morgan Values Segments “Visible Achievement” (Roy Morgan Research, 1997), due to married career women consider that family is the most important thing and provide their family in high quality of environment. Married carrier women are very practical and realistic of doing things. They are capable to buy the best for everything by considering value of money and quality.
- Behavioural Segmentation
Kraft Tiger is recognized in convenience product (Kotler et al 2009, 272), as a convenience product the consumer’s user status of this product is regular user, because they are frequently purchases this product. The benefit from consuming Kraft Tiger are give the consumers extra energy that is needed for their daily activities and can be is instant snack that can be carried every time, especially for vegetarian people that can consumed Kraft tiger safely.
The consumer of Kraft Tiger especially married career women is identified as a medium user because their consumer purchases this item regularly every time they need. Kraft Tiger brand-loyalty is recognized as somewhat (Kotler et al 2009, 237), because their target market as married career women usually tempted with some promotion of the other products that will effects their loyalty for Kraft Tiger.
The married career women is categorized in interested in awareness status (Kotler et al 2009, 237), because they purchase Kraft Tiger in the market without planning or thinking, they will purchase it directly when they need it and usually they consume in leisure time.
5.0 Reference List
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(Accessed August 18, 2011)
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Baker, Michael J. 2002, The Westburn Dictionary of Marketing,
http://www.westburnpublishers.com/marketing-dictionary.aspx (Accessed August 2, 2011)
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(Accessed August 10, 2011)
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http://www.kraftfoodscompany.com/brands/featured-brands/tiger.aspx
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“MBS posts bumper profit.” 2011. The Straits Times : A4.
Rao, Rama. 2010,” Family Life Cycle”
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http://www.vanhaaften.nl/index.php?option=com_content&view=article&id=75&catuid=48&Itemid=53 (Accessed August 8, 2011).
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http://www.roymorgan.com/products/values-segments/visible-achievement.cfm
(Accessed August 20, 2011)
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by
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