1.3 Current Distribution
Since Kraft Tiger use indirect marketing channel, which is retailing channel in its distribution, consumers can find this product in many locations. Retailers is the intermediaries who sell directly to end consumers and may purchase direct from manufacturers or deal with wholesalers (Baines, Fill and Page 2008, 563). There are many types of retailer,one of which, that is usually sell Kraft Tiger, is supermarket. Supermarket is a large, low-cost, low-margin, high-volume, self-service store that carries a wide variety of food, laundry and household products (Kotler et al. 2008, 403). The Rapid economic growth makes Singapore has many supermarkets these days, just as Fair Price, Cold Storage, and Carrefour. These supermarkets not only exist in one area. Consumers can find them in central businness district and shopping centre. Central business district is the are of business at the heart of a city or town while shooping centre is a group of retail businesses planned, developed, owned, and managed as a unit (Kotler et al. 2008, 409)
Certainly, consumer cannot buy Kraft Tiger directly from the company, because the company has choosed indirect marketing channel for its distribution, which is retailling channel. According to the channel, the company, Kraft Foods, has to sell it to retailers, such as supermarket. The retailers usually buy in the big amount, because they want to sell it again and they surely have many branches. The consumer, obviously, do not want to buy in the big amount, they only buy for their needs.
Since Kraft Tiger belongs to convenience product, its distribution must be in low price and widespread. The other reason is because biscuit is in impulse product category. The other examples of this category is chocolate bar and candy. These product are normally available in many different places, often in supermarket check out, because counsumer sometimes look for it and purchased with little planing or search effort , almost as an afterthought (Kotler et al. 2008, 272). Due to its affordable price, sometimes we can see tiger energy chocolate biscuit in the convenience store. Convenience store is a small store, located near residential area, open long hours seven days a week, carrying a limited line of high-turnover convenience goods (Kotler et al. 2008,404).
1.4 Current Promotion
Promotional messages is a marketing strategy developed by a business to promote a product or service. The promotional message is meant to get across a certain message about the good or service the company is promoting (Business Dictionary 2011). We can see the promotional messages of Kraft Tiger in many advertising media, according to Brassington and Pettitt (2006, 688) advertising media are called on to perform the task of delivering the message to the consumer. Kraft Tiger used newspaper, internet, and point of sales promotion (POP).
The media which is effective are newspaper and POP because many of singaporeans who are doing the grocery is the parents, or we can say, the generation x and baby boomers. Most of the generations, sure read the newspaper almost everyday. Internet’s advertisement is not really effective because many of that generations even can not use the computer. In the newspaper, Kraft tiger used display advertisement which has wider variations in size, shape, and location within the newspaper, and uses a range of graphics, copy and photography (Brassington and Pettitt 2006, 694). Moreover, POP is an offer ranging from a theme promotion in store to a specially arranged selling area. (Kotler et al. 2008, 488). POP is the most effective one, because it stands in the store.
Furthermore, for every promotion of the products, there is communication goals which is held by the company. Zikmund and d’Amico (2002, 398) stated that communication goals is what the marketer wants a promotional message to accomplish, which are to gain attention, to be understood, to be believed, and to be remembered. Kraft Tiger also has the same communication goals. The advertisement was made in order to make the consumer aware about Kraft Tiger and know about the current promotion.
The theme for current promotion of Kraft Tiger is slice of life. This theme give the message to the consumers to eat Kraft Tiger, if they can, everyday they eat Kraft Tiger. Moreover, all the promotions send the same message for the consumers.
2.0 Segmentation Theory
2.1 Define and explain segmentation
Market segmentation help the marketers to find their marketing opprtunities more efficiently. It can be defined as the process to identify the big homogenous market to be more spesific according to needs, wants, and demands. The purpose of marketing segmentation is to suit the marketing mix with the customer wants in the targeted segment.(Business Dictionary 2011). According to Schiffman et al. (2008, 38-59), there are nine types of segmentations, but only four of them are usually used by the marketers, namely geographic segmentation, demographic segmentation, pscychographic segmentation and behavioural segmentation.
2.2 Three Benefits to Kraft Tiger from using segmentation
Obviously, with using segmentation, Kraft tiger gains several benefits in selling the products. Firtsly,. Kraft Tiger can apply geographical segmentation to determine its distribution around Singapore. About 57 % of Singapore’s residents are concentrated in ten areas, some of the highest are, Bedok, Jurong West and Tampines. The other information which can be used is the growth rate of residents. Sengkang is the area which suffer the highest growth rate. (Singapore Department of Statistic 2010). By using this information, Kraft Tiger can focus its distribution in the crowded area, but still pay attention to other places, because generally, Singapore residents are distrubuted around the island. Their home possibly in Tampines, but their offices sometimes in central region.
Moreover, by using market segmentation, Kraft Tiger will meet consumer needs more precisly. This thing will happen because segmentations frequently provides a marketers the oppurtunity to expand a market by satisfying effectively customer needs and wants (Drummond and Ensor 2005, 67). Kraft tiger only produce vanilla the first time it was established, but now, it also produced chocolate flavour. They produce the new flavour because we cannot denied that kids love chocolate.
Furthermore, Behaviour segmentation allow Kraft Tiger to know about consumer usage of product. Kraft Tiger produced the smaller pack of its product to satisfy its consumer’s need for travel. The traveller certainly will choose the smaller pack because it is easier for them to put in the bag.
3.0 Target Market Indetification
3.1 Geographic Segmentation
Singapore is a very tiny country which only 617 square kilometres. In 2010, Singapore’s total population is 5,076,700 (Singapore Department of Statistic 2010). That is a huge number for a tiny island like Singapore. Due to that situation, Singapore’s resident are dispersed around the island. This can give the information for Kraft Tiger to distribute its product around the island, so all of the Singapore’s residents can buy it. Singapore now is a highly developed country, which is mean its density is urban. Singapore’s residents are busy to work all day, even sometimes, they do not have time to eat lunch. Using this information, Kraft Tiger can distribute its product in the convenience stores, so whether the people do not have time to buy lunch, they can buy Kraft Tiger easily and do not hungry. Located only 85 miles north from the equator, Singapore’s climate features uniform temperature, plentiful rainfall and high humidity. Global warming makes Singapore feel hotter than it used to be. Thus, people will easily tired and want to eat snacks. Moreover, Kraft Tiger include many vitamins and minerals in their biscuits (enermaxx), so the target market will gain their energy to continue their activities. Eventhough Singapore is divided to some regions, such as west region, central region, and east region; but the the overall condition in all region are the same, the law and regulation are the same as well. This situation lets Kraft Tiger to use the same marketing strategy throughout Singapore.
3.2 Demographic Segmentation
Kraft Tiger targeting their products to generation Y who were born between 1993 and 1996 (age 15-18). According to Blackwell, Miniard and Engel (2006, 246), Gen Y has much free time and likes shopping more than their parents. The other reason is because Gen Y is more active and has a lot of outdoor activities which need additional energy. Furthermore, Kraft Tiger segments their product for low – middle income person. Most of Generation Y still depend to their parents for money, thus Kraft Tiger come with affordable price for everyone. Most of Gen Y are students, so they have a lot of activities in their school and most of them also have activities outside school, both in weekends and weekdays, such as, extraculicular programmes, shopping and sports. Thus, Kraft Tiger provide enermaxx to refill both their physical and mental energy. Kraft Tiger can be eaten for everyone, so it targets all of the nationality. For Indian, which most of them are vegetarian or do not eat cow, can eat Kraft Tiger, because Kraft Tiger do not contain meat.
3.3 Psychographic Segmentation
Kraft Tiger segment their target for generation Y, according to VALS2, generation Y’s lifestyle is including in experiencers type. The experiencers are active in physical ardor, sports, outdoor recreation, and social interests (Experiencers 2011). This type is suitable for Kraft Tiger because they will need extra energy in their huge activities. For the activities, generation Y usually spend their big proportion of money in shopping, they like to look good and have a cool stuff. It is an advantage for The selling of Kraft Tiger, love shopping means more purchasing of Kraft Tiger biscuit. Moreover, generation Y interest is in media. The youngsters are really attracted to new media, such as internet and new high tech gadget. Generation Y’s opinion is about the future. They are still young and still preparing the broad future ahead. For Roy Morgan classification, generation Y is included in “look at me type” as they active socially, taking part in cool or hip activities, consumer of music related media and influenced by peer group (Look At Me 2011). Kraft Tiger’s target market personality is money/price since it targets for low-middle income people. (Personality Targeting 2011).
3.4 Behavioural Segmentation
Kraft Tiger targets the light users. This is happen because there are many substitute product for Kraft Tiger and generation Y is brand switching, so there will be a few of heavy users. Due to brand switching behavior, their loyalty status can be considered as none. They want to buy different brands everytime or something in special price when shop (Kotler et al. 2008, 237) . For the usage of the product, Kraft Tiger’s consumer will consume the biscuit mostly in their work place. They eat it when they have no time to eat or want to gain more energy (as a snack). The target market will purchase Kraft Tiger for their personal need. They will consume it individually, or when they are together with their family and relatives. Furthermore, when the target market buy Kraft Tiger, they search for the main benefits that different from its competitor (Kotler et al. 2008, 236). The main benefit which can be obtained by buying Kraft Tiger is the high nutrition as Kraft Tiger provide 9 vitamins and 6 minerals. These vitamins and minerals act as a enermaxx to fill the target market’s energy in both physical and mental activities.
4.0 Discussion/Rationale of the Target Market Images Chosen Table
5.0 Reference List
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Blackwell, Roger D., Paul W. Miniarol and James F. Engel. 2006. Consumer Behaviour. U.S.A : Thomson South Western.
Blythe, Jim. 2008. Consumer Behaviour. England : Thomson.
Brassington, Frances and Stepehen Pettit. 2006. Principles of Marketing. England : Prentice Hall.
Drummond, Graemme and John Ensor. 2005. Introduction to Marketing Concepts. Oxford : Elsevier.
Experiencers. 2011. Strategic Business Insight. Accessed August 21, .
Hubbard, Glenn R., Anne M. Garnett, Philip Lewis and Anthony Patrick O’Brien. 2009. Microeconomics. Australia : Pearson.
Kotler, Philip, Steward Adam, Sara Denize and Gary Armstrong. 2008. Principles of Marketing. Australia : Pearson.
Look At Me. 2011. Roy Morgan. Accessed August 21, .
Marketing Segmentation. 2011. Business Dictionary. Accessed August 15, http://www.businessdictionary.com/definition/market-segmentation.html.
Personality Targeting. 2011. Right Click Webs. Accesses August 29, .
Promotional Message. 2011. Business Dictionary. Accesses August 1, .
Schiffman, Leon, David Bednall, Aron O’Cass, Angela Paladino, Steven Ward and Leslie Kanuk. 2008. Consumer Behaviour. Australia : Prentice Hall.
Singapore Department of Statistic. 2010. Census of Population 2010 : Advance Census Release. Singapore : The Author.
Solomon, Michael R., Greg W. Marshall and Elnora W. Stuart. 2009. Marketing : Real People Choices. U.S.A : Pearson Education.
What is Enermaxx?. 2011. Bring Out The Tiger. Accessed July 25,
Zikmund, William G., and Michael D’Amico. 2002. Market Segmentation : The Power of Marketing. U.S.A : South Western.
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kminami (student)
