bisc & co, it's breakfast on the go

8/13/2019 Bisc & Co, It's Breakfast on the Go.

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Executive summary

This report focuses on the introduction of the new product: Bisc&Co. into the UK biscuit

market. The research paper analyses critical factors in implementing the introduction of

the new product in an already saturated market.

Mandatory research analysis of the market portrays that people in the UK have a

overgrowing need for quicker and healthier on the go breakfasts.

The objective of this report is to understand where the gap is, within the biscuit marketand full it through the use of a product easy to handle, healthy and cheap.

The report will underline that the gap, found through research in various reports such as

Mintel and Key Note, is concerned with the change in lifestyle of modern families, with a

more on-the-go lifestyle; we dened this particular segment as: parents on-the-go.

The segment is outlined as a result of changing in the environmental factors, forcing

parents to have less time in morning to consume a proper breakfast in preference to

their childrens wellbeing.

The solution is then, according to the analysiss results: Bisc&Co.:its breakfast on the

go. This is an innovative product that fuses biscuits with milk in a single container. This

enables parents to consume a proper breakfast despite their busy lifestyle.

The paper includes analysis on the gap, segmentation and marketing mix to better

understand our nal product proposal. Also the paper presents information about the

market and the major brands within it, to better underline how these brands ultimately

left a gap behind, exploitable by our new product.

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Table of Contents

Analysis of the Biscuit market 5 ..........................................................................................

Volume & Value 5 ...........................................................................................................

Competitor Analysis 6 .....................................................................................................

Brands Performance: 8 .....................................................................................................

Advertising Expenditure

12

..............................................................................................Distribution 14 ................................................................................................................

Price 15

Market trends: 16 ............................................................................................................

Political: 16 ..................................................................................................................

Economic: 16 ................................................................................................................

Social trends: 18 ...........................................................................................................

Technology: 18 .............................................................................................................

Environment: 19 ...........................................................................................................

Legal: 19 ......................................................................................................................

Gap analysis 20 ..................................................................................................................

Filling the gap. 21 ............................................................................................................

Potential for a new brands 21 ..........................................................................................

Marketing Mix 24 ............................................................................................................

Product 26 .......................................................................................................................

Brand name: 27 ............................................................................................................Packaging: 27 ...............................................................................................................

Product Positioning: 28 ................................................................................................

Brand positioning: 30 ..................................................................................................

Distribution 32 ................................................................................................................

Price 34

Communication mix: Advertising strategy. 35 ..................................................................

Message 36 .....................................................................................................................

Communication channels 36 ........................................................................................


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References: 38 ....................................................................................................................

Appendix 40 .......................................................................................................................

Factors to be considered when choosing sweet biscuits 41 ..............................................

Distribution 41 ................................................................................................................Price 42

Market trends 44 .............................................................................................................

Types of sweet biscuits consumed 44 ..............................................................................

The Williams family 45 .....................................................................................................

Bisc&Co 46 ......................................................................................................................

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Analysis of the Biscuit market

Volume & Value

The biscuits market has increased sales in the past four years despite healthier

consumer behaviour and the economic crisis in Europe, a " ecting the market. From 2007

to 2011 the biscuit sector grew by 29.2% . In 2011 the market value increased by 6.5%1

to an estimated value of 2.33bn. In 2010 the packets of biscuits sold, in UK, were

approximately 141 million . 2

Table 1: The UK Market for Biscuits and Cakes by Value (m at rsp) (Mintel report 2011)

Key Note market report 2012, Biscuits and Cakes, page: 181

J Stainsbury PLC 20112


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Table 2: PLC curve for the UK biscuit market. (Keynote 2011)

The biscuit market in UK is relatively mature. Although the market size has increased;

growth has varied substantially . Competition between brands in the UK biscuit market3

is high and brands try to discover a competitive edge by launching new healthier, on-

the-go biscuits. This is done in accordance with the current modern consumer lifestyle.

There is little room for innovation in the market, and companies are increasingly

renewing already existing brands with new recipes . 4

Competitor Analysis

The biscuit market in UK is mature with many own brands and large multinationals

competing against each other. According to Mintel (2012); biscuit companies compete

Key Note report plus 2011, Biscuits and Cakes, page: 53



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on di " erent levels, but mainly with snack and chocolate products. The larger companies

in the market are: United Biscuits, Nestl, Kraft Foods and Kellogg's . The companies5

have a wider amount of well established brands and sub-brands. The majority of these

companies have been present on the UK market for a long period of time.

Own-labels are also signicant players in the market; being cheaper and more

accustomed to the name of large, already successful, companies for example: Tescos

Digestive biscuits; they manage to acquire a signicant share in the biscuit market.

Their success is often given by maintaining the same taste as major specialised brands.

They are mostly purchased by price sensitive customers.

As portrayed by Table 3, the leading specialised brands only have 33% of the relative

brand share for sweet biscuits. The table shows that others and own-label have 68% of

the segment sales. This is a result of number of players in the market . 6

Mintel reports: UK April 2012 Companies and Products5

Mintel report: UK April 2012 Market share6


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Table 3: Leading brands shares in sweet biscuits, 2011 7

Brands Performance:

To comprehend how major companies in the biscuit market have performed in the past

two years it is necessary to analyse the total revenue from sales, reported in their annual

nancial statement. All companies, but one, in 2010 and 2011 have increased their total

sales within their biscuits segment of the business. The only underachiever was Nestl,

as their revenue from sales decreased massively. All the data is provided in millions of

pounds even if, some of these companies are quoted on foreign markets with di " erent

currencies; thus for the sake of the research the revenue from sales have been

Mintel report: UK April 2012 Market share, Figure 38: Leading brands shares in sweet7biscuits, 2011


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calculated with a proposed exchange rate as from the day the nancial statements were

analysed . 8

Table 4: Independent Brand Performance in total sales revenue

Segmentation

The biscuits market in the UK is broad and diverse, with many di " erent brands targeting

a wide range of the market. The complexity in consumers preferences can be link to the

consumers spending habits and general lifestyle. Trends show that spending habits are

changing as a result of the economic crisis that the market is facing; also the inuence

of healthier products introduced to the market, as part of a political campaign against

obesity, has mutated consumer needs and response to sweet biscuits . 9

Exchange rate from 18th

of November 2012 - 1=$1.58, 1=CHF1.5028



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According to Key Note (2011) the typical consumers of biscuits, in UK, are most likely to

be women, aged 35-44, belonging to social grade C2 and B. Their family lifecycle is

described as Full Nest 2. This segment involves women who buy low-fat sweet biscuits,

rye crackers and savoury biscuits assortments . Furthermore, the biscuit market is10

segmented by: occasions for eating sweet biscuits; the table below illustrates the target

groups.

Table 5: Most Popular occasions for eating sweet bisuits, by type, January 2012.** Low response rate

(75-100) 11

Snaking at home, having a biscuit with a drink, and eating at work (college/university)

are the most popular occasions for eating biscuits. Taking into consideration the age of

consumers, which fall into these three categories, it is possible to positioning these

occasions on a perceptual map, as an indication of the most saturated part of the

market (Table 6). It is noticeable that the target market for biscuits is wide in terms of

age; yet, the market size allows variations in terms of occasions or other factors like

taste, price, convenience to eat, size of the package, etc. (see Appendix 1 - factors to12

be considered when choosing sweet biscuits).

Mintel report: UK April 2012 Consumer Usage10

Mintel report: UK April 2012 Occasions for Eating Biscuits and Crackers, Figure 68:11

Occasions for eating sweet biscuits, January 2012 Mintel report: UK April 2011 Factors Inuencing Snacking Habits12


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Table 6: Perceptual map of the current biscuits market 13

Mintel report: UK April 2012 Occasions for Eating Biscuits and Crackers13


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Advertising Expenditure

Advertising expenditure decreased from 2010 to 2011 by 2 %. The money spent on ads

for the biscuit market is noticeably higher than ads for competing markets such as

crisps, nuts and snacks or cereal . The main advertising channel for biscuits brand14

promotion has been TV. 15

Table 7: Mintel report, Biscuits, Cookies and Crackers UK, 2012

As showed in the Table 6, Kraft Food has increased their funds in marketing by

spending over 6 million in advertisement. According to Mintel (2012) the three major

biscuit manufacturer reduced advertisement expenditures in 2011; Kraft Foods, United

Biscuits and Kelloggs. However Nestle increased their advertising expenditure on

biscuits signicantly, by 1.5 million, when launching their new biscuit brand Aero

Biscuit probably to increase the sales revenue . 16

Mintel report: UK April 2012 Total adspend stays at14

Mintel report: UK April 2012 Total adspend stays at15

Mintel report: UK April 2012 Biscuit giants reduce ad spend16


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Table 8: $Advertising expenditure in the biscuits, cookies and crackers market, by

highest spending brands, 2007-11)

Table 9: A/S Ratio of major brands taken into consideration.

Advertising expenditures for these companies are marginal expenditures; this is

because, according to the calculation, it can be said that Kelloggs is in a leading

position when comparing advertising to revenue.

In the beginning of 2012 companies have continued to invest in advertising, for

example; United Biscuits expects to generate 30 million in sales from its Quirks

brand by 2015, by launching 3 million Special campaign for the younger consumer

segment .17

Joseph (2012)17


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Distribution

Customers tend to buy biscuits through the following channels of distribution:

% Grocery retailers (mini/super/hyper-market)

% Independent (small local shops)

% Internet

% Caf/restaurant

% Public canteen

% Train/tube/bus stations, airports, gas stations . 18

Buying biscuits in Grocery Retailers is the rst choice for consumers . Large packages19

are stored in the shelves and singe-items, more likely to be among other on-the-go

snacks, are near by the checkout stations. Also, the growing range of single-item

packages has led to an increase in displaying biscuits with other ready to eat items

.20

Supermarkets can stock large amounts of products, which fulls the need of all

consumer-shopping habits . According to Key Note (2011) Tesco, ASDA, Sainsburys21

and Morrison accounted for 76.1% of all grocery sales in as of November 2010 (see

Appendix 2 for overview of retailers). However, other channels of distribution may have

signicant potential due to their convenience. Having located a point of sales at a

location with high ow of people, seller can ensure constant purchases of the lower






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volumes of biscuits. Also, the location of the selling point seems to have little e " ect on

customers choice in terms of price.

Price

Biscuit market in UK can be described as well established; in terms of price. The table

presented in Appendix 3 represents a sample of the biscuit production. Being that not

all biscuits are priced the same, the prices per 100g where calculated as: 48p/100gr .22

The price di " erence between the cheapest and the most expensive products in the

sample is quite low at 15% . Due to the decrease in growth in 2009, the biscuit market23

has experienced a larger level of discounting and promotional o " ers which has caused

the consumers to become less brand loyal, taking advantage of cheaper deals

instead . This has led to a decrease in the average price of biscuits, making the24

manufactures compete strongly on price to win customers loyalty back . Also, 25

consumers on a budget, got greater access to premium and branded products causing

the price range in between major brands and own brands to become closer .26

See Appendix 4 Summarised, popular biscuit production and prices.22

mySupermarket groceries 2012, Plain Biscuits in Tesco23

Key Note report plus 2011, Biscuits and Cakes, page: 13.24




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Market trends:

PESTEL-analysis identies trends in environment. These trends reect both consumer

habits as well as internal aspects for biscuit manufactures.

Political:

In 2011 The Guardian reported that: UK Prime Minister David Cameron is ready to

consider a fat tax to tackle Britains increasing obesity level. Cameron stated that a

similar idea was already implemented in Denmark thus the UK should consider it as

well . On May 2012 the British Medical Journal, unveiled a research where taxes for27

unhealthy food and drinks would have to be at least 20% to have any real e " ect on

obesity and heart disease .28

Economic:

Consumer behaviour is changing because of the economic crisis and this reects their

spending habits . More consumers tend to prepare their meals at home and bring their29

own lunchboxes to work . Individually wrapped packages and mini sharing formats is a30

result of such changing behaviour . Biscuit manufacturers have increased their retail31

Press Association, 2011. UK could introduce fat tax, says David Cameron.27

British Medical journal, 2012. 20% fat tax needed to improve population health.28





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prices in 2011, although sugar prices have remained steady over the last three years, as

a result of wheat costs increasing . 32

Mintel report: UK April 2012 Broader market environment32


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Social trends:

Consumers are getting more concerned about ingredients contained in food; therefore,

the market (manufacturers) customises and adapts to customers needs by o " ering

healthier options . The packaging, on the biscuit bars, contains information about the33

ingredients and the benets the products contains. However, Mintel (2012) reports: 20%

of all adults bought sweets and chocolate in January 2012, which is an improvement

from 14% in January 2011 . According to Mintel (2012), in 2011,77% of adults where34

snacking in between meals. This a " ects British consumption habits massively making

the British population prone to buying more biscuits.

Brands are struggling to change the customers perception about healthier biscuits, as

the consumers regard sweet biscuits as indulgent snacks (see Appendix 4) . 35

Technology:

Major brands understand the importance of research into the development of new

recipes nutritionally fullling for consumers requirements; an example of such

development may be presented by Kraft Foods; Kraft established a: Centre of

Excellence at their Bourneville factory, which includes innovative labs, a new pilot plant

facility and a collaboration kitchen or else a creative space for the experimentation of

new ideas.

Key Note report 2012, Biscuits and Cakes, page: 433

Mintel report: UK April 2012 Internal market environment34

Mintel report: UK April 2012 Internal market environment35


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Environment:

In order to stay competitive and add value to products, companies in the food market

are trying to carry out environmentally friendly operations. These may include the

following:

% Reducing carbon emissions

% Eliminating waste to landll

% Reducing water use

% Driving environmentally friendly transport

% Sustainable sourcing

% Reducing packaging and recycling biscuit wrappers

Legal:

Selling biscuits involves a wide number of legal obligations and other risks such as e.g.

product contamination, spoilage, product tampering, allergens, or other adulteration.

Companies in the biscuits market are legally obliged in their own interest as well as the

customers to recall products that have become tainted or damaged during the process

of transportation from the factory to the retailer/wholesaler. The costs of a signicant

product recall can be associated with lost sales and bad customer perception. In order

to meet customers needs with allergies, a growing percentage of hypoallergenicbiscuits are available in the market . A signicant product liability judgment against36

biscuits producers could also result in losses. Negative publicity could adversely a " ect

Key Note report 2012, Biscuits and Cakes, page: 436


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the reputation of brands even if a legal claim is meritless, does not prevail or is not

pursued . 37

Gap analysis

The gap is a result of the changing trends in the environment and the change in

consumer behaviour in recent years. According to Key Note (2011), 57% of parents in

the UK skip breakfast , due to lack of time or willingness to prepare food in the38

morning. The preference of a frugal cereal bar or pack of biscuits, instead of a proper

full breakfast, is often a common choice. Even though government acts and public

awareness campaigns stress the fact that breakfast is the most important meal of the

day, several people tend to skip breakfast. Due to a chaotic lifestyle, where breakfast is

skipped and lunch usually tends to be fast-food or binge eating products, the UK

population is due to reach a 60% obesity level by 2060 .The demand for healthier39

products has increased exponentially due to customers becoming more aware about

having a healthy diet . This has also led to an increase in demand for miniature, lower40

calories products . 41

Kelloggss 2011 Annual Report37

Key Note report 2011, Breakfast Cereals, page: 338

Government O & ce for Science,200739




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Filling the gap.

The gap can be lled by o " ering an alternative to a proper breakfast. This must include

a high nutritional value: in order to resist until lunch time, be convenient to carry around

and take very little time to prepare and eat. The gap is going to ll the sweet biscuits

segment which contains a wide range of products to tend to all consumers needs (see

Appendix 5). Currently, the market is experiencing a large introduction of healthy

biscuits, in order to obviate the glum prediction on obesity increases predicted by the

UK Government O & cer for Science (2007). Since this is becoming a growing trend, the

new product o " ered must be both healthy and convenient to eat during the morning, as

well as while travelling. The objective is to nd a solution to the customers breakfast

problem.

Potential for a new brands

Entry into the UK biscuit market is complicated by the presence of the major brands with

a large variety of biscuit brands . The biscuit market has little room for innovation; a42

factor which may reduce the possibility for a new brand to enter the market. The most

feasible strategy for a new product would be to incorporate into a brand already well-

established in the market; in order to use all of its already successful, distribution and

promotion channels.

Mintel report: UK April 2012 Market Size and Forecast42


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Target Market

The perceptual map of the current biscuits market, portrayed in part 1, outlined the

most popular occasion for eating biscuits. However, the trends in the environment

create opportunities to attract new segments, as illustrated in Table 9.

Table 9: Potential gap in the market

The target market has an active lifestyle, where they eat biscuits as a breakfast or/and

while travelling. These consumers are mainly families, where both parents are working,

have low income and buy convenience products. Due to the market size, other factors

also needs to be taken into consideration, such as; taste, price, convenience to eat, size

of the package, etc.


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Potential Competitors

Potential competitors are any own brand or regular brand that o " ers a healthy breakfast

meal which is convenient to bring on the go. Potential competitors within this segment

are any own-brand or regular brand that o " er biscuits that appeals to the same target

market selected.

The only way to surpass competitors would be to achieve a unique selling point, through

creating a product di & culty to imitate and market the product as a full breakfast, on-

the-go, easy to eat and o " ered at an average price. Belvita Breakfast biscuits and43

Kellogg Nutrigrain Biscuits are the most likely competitors. Their products are healthy44

and satisfy the daily need of bres and vitamins. The biscuits are marketed as a proper

breakfast, but yet they cannot be compared as a full, proper breakfast since they are

implying the need to purchase a separate product, such as milk, to complement the

breakfast.

Belvita Breakfast 2012, Belvita Breakfast Biscuits43

Kelloggs 2012 - nutrigrain biscuits44


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Marketing Mix

The next section will be focusing on the marketing mix and the four Ps; product, price,

promotion and place.

Target customer

After segmenting the biscuit market in UK, a new segment can be identied or else:

people who eats biscuits while travelling and as a part of a breakfast meal. A market

consists of customers with di " erent needs and preferences. Customers will respond

di " erent on any o " er, which is why the customers must be divided in target segments

with similar characteristics . The new target group is called: parents on-the-go.45

Meet the Williams family :

The Williams are a London family of four, with children aged six and nine; both parents

are aged 35, are fulltime workers with a stable nancial position belonging to social

grade C.

As illustrated in Appendix 6, the family has a busy lifestyle, especially during mornings.

Mum and dad wake up at 6.30am, take a shower, dress themselves and their children.

Just before 7.15am, Mrs. Williams start to prepare breakfast and lunchboxes for the

children. In the meantime Mr. Williams feed the cat before running out the door to catch

the bus toward the train station that will eventually lead him to work. Mrs. Williams`

workplace is close to their house thus, she may take the car since she needs to drive the

children to school. Back at home, while the children eat breakfast, the six year old boy

spills his cereals on the oor; Mom starts to clean up in order for the boy to nish his

Jobber (2010) page: 26145


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breakfast and be ready to go to school. At 8.00am, the children are at school and Mrs.

Williams is on her way to work.

After a long day at school and work, Mrs. Williams drives to the supermarket to shop for

groceries. Mr. Williams, in the meantime, is cooking dinner. Mrs. Williams is in a hurry,

so she can get back before dinner is served; this forces her to rush through the store;

sleep shopping.

As illustrated, the Williams family has a hectic morning; therefore the parents often skip

breakfast in order to make sure their children go to school with an appropriate meal.

It is important to understand how the Williams choice criteria are used when selecting a

product or service . When the Williams parents are evaluating di " erent fast moving46

consumer goods, low involvement is needed and the most important criteria is price,

taste and performance of the products: in fewer words how convenient the product is . 47

Due to their buying behaviour and personal experience, the Williams are less inuenced

by advertising and therefore, most of their decisions are based on emotions making

them prone to brand loyalty . 48

The new product is going to full the need for nutrition in the morning or while

travelling. Customers do not buy products: they buy benets to full their needs. The

core benet of the new product is a full caloric intake needed for a breakfast, with a


Jobber (2010) page: 115 and 11847



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tasteful avour, which will give a feeling of fullness. This need can be described in

Maslows pyramid as a basic/physiological need, as biscuits are food. Furthermore, the

new product is going to full Esteem Needs, which relates to the consumers prestige

and feeling of accomplishment, due to the feeling of eating healthy.

Table 10: Maslows Hierarchy of Needs

Product

The objective is to nd a solution to the customers breakfast problem. The core

product is the convenience of having a full breakfast all in one container, with the

combination of healthy biscuits and fresh milk. The main feature of this product is such

combination, also it must satisfy the nutritional needed as well as easy to carry around.

The quality of the product should be higher than the average own-brands, due to the


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increasing awareness of health related issues; also it should be user friendly to avoid

confusion during usage.

Brand name:

The new brand is going to be called Bisc&Co. The brand name is enjoyable, and relates

to the format name of business partnership. It can be seen as a partnership between

biscuits and milk, to create a convenient combination. The brand name leaves room for

diversication with di " erent complementary products or biscuits to target diverse

segments of the market. An example could be: chocolate biscuits with chocolate milk.

The slogan is Bisc&Co: its breakfast on the go. The name comprises the slogan of the

product for a more direct impact with the consumers perception.

Packaging:

Bisc&Co. has to be seen as enjoyable and interesting; also it must be perceived as a

neutral product that may be brought to the work place. The packaging colour should

comprise visually appealing primary colours such as: red, yellow and blue, (Appendix 7

illustrates a proposed prototype drawing for the product), which reects both the

biscuits and feeling towards a grown up segment. The packaging should portray

associations with pleasure and a feeling of exclusiveness, so that customers can enjoy a

proper breakfast.

The format of Bisc&Co. is a cubic carton, large as the palm of a hand: in order to

improve handling. The design comprises two sections for biscuits and milk. The left part


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contains biscuits and the right part milk. The package can be divided into two parts,

making it convenient to be enjoyed separately. Bisc&Co. contains a standard glass of

milk, or 275ml; which is considered an appropriate intake for breakfast. The biscuits are

concealed in plastic wrap within the box and are served in ve separate pieces. Bisc&Co.

will be produced in with a plastic resistant material, in order to avoid damage from

impacts. Also it should be easily recyclable.

Product Positioning:

Major players in the biscuits, market have all attempted to introduce various sub-

branded products in the recent years. Bisc&Co is supposed to extend the number of

positioning options. The examples of these range extensions are presented in the table

below : 49

Mintel report :UK April 2012 - Companies and Products section49


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Table 11: Possible product positioning for UB and Cadbury.

Considering the market gap analysis, the product positioning of the competitors can

point out the key product features that are going to play a major role in gaining

competitive advantage. These features include increased indulgence, better taste,

portability of a single pack, convenience to eat on-the-go and healthiness. Although

traditional biscuits are still easier to share, this does not create any signicant threat to

the intended Bisc&Co positioning (Table 12). What the customer gets is a reasonably

priced and balanced combination of indulgence and decent daily nutrition in a

convenient package.


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Table 12: Factors inuencing product positioning

Brand positioning:

The brand position for Bisc&Co is to create a new, unique position, in the marketplace;

Bisc&Co. will try to achieve a top-of-mind position. The brand is going to be positioned

as brand asset; this takes into consideration the perception of the features such as

image, slogan and price . Bisc&Co is going to create an image in peoples mind where,50

Bisc&Co, is perceived to be adaptable to peoples busy lifestyle, whilst o " ering a healthy

option with quality certication . This must apply to the target customers emotional51

bonds and evaluation process. Bisc&Co. must also be perceived as health-driven and

quality driver; where the ingredients will be natural and full of vitamins and bre. This is

how Bisc&Co. distinctive from other competing brands.

Jobber(2010), page: 31550

Jobber (2010), page: 30751


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Bisc&Co. need to cut through the ambient noise and stand out from all the competitors

that o " ers an on-the-go breakfast option. The solution to standing out will be the core

benet of a full breakfast that combines biscuits and milk. Bisc&Co. has no direct

competitors, currently, on the market, however the only similar products, to Bisc&Co ,

will be the cereal/porridge pots by major brands such as Kelloggs. To be able to

compel the customers to take action, Bisc&Co. must be perceived as trustworthy since,

customers are known to turn towards trusted brands during the decision process . The 52

branding positioning will provide the logic that justies customers decision making, by

being the preferred breakfast option in the market.

Jobber (2010(, page: 30752


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Distribution

Products need to be available in right quantities, on time, and in a convenient location.

To ensure e " ective distribution, a channel strategy is needed.

Table 13: Channel strategy

Market, producer, product and competitive factors inuence the channel selection . For53

Bisc&Co, the chosen channels are B and C, as illustrated in Table 13 . 83% of British

adults in UK do grocery shopping in Tesco, Sainsburys, Asda and Morrisons . During 54

recent years, due to the growth of retailers; producers are more willing to supply directly

to large retailers rather than operating through wholesaler. Also, the company that

produce Bisc&Co.s` brand must have the nancial and managerial resources to operate

with large grocery chains; a possible problem, di & cultly solvable, for smaller brands. In

using wholesalers, Bisc&Co can be distributed to smaller and local stores, such as petrol

Jobber (2010), page: 632-63353

Mintel report: UK April 2012 Channels to Market54


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stations and corner outlets. These are the most convenient places to attract a wider

range of people on the go. . 55

Table14: Distribution channels or consumer goods 56

Grocery retail shops, dominate the selling point in the biscuit market . As Bisc&Co. is57

positioned as an on-the-go product, it should be available in both grocery stores and in

all possible smaller outlets. In using intensive distribution, it will aim to achieve

saturation coverage of the market space

. The product should be exposed in the biscuit58

and cereal aisles as well as in the checkout station of any shop, in order to attract both

Jobber (2010), page: 62855

Jobber (2010), page: 62856


Jobber (2010), page: 63458


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usual consumers as well as quick-shoppers (or else people shopping for a specic

product and being interested by Bisc&Co. whilst waiting to pay). Being available in both,

supermarkets and corner outlets, the product can meet customers need in the right

place, at the right time. The convenience purchase aspect of is vital for Bisc&Co . Also,59

the location of the selling point seems to have little e " ect on customers` choice in

terms of price.

The channel integration strategy includes conventional marketing channels, franchising

and channel ownership . Since Bisc&Co. is a FMCG , conventional marketing channels60 61

are most suitable. The product is not positioned as an exclusive product and high

control over other parties in the chain is not needed . 62

Price

The pricing strategy is going to take into consideration various factors including

competition, regulatory issues, production costs and price sensitivity of the customers.

The strategy is likely to combine the following features of di " erent pricing models

(penetration, competition based pricing, skimming):

Jobber (2010), page: 63459

Jobber (2010), page: 63460

Fast Moving Consumer Goods61

Jobber (2010), page: 63562


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Table 15: Pricing models.

Bisc&Co. is a combination of dairy products and biscuits, which provides a full breakfast

meal. Since a biscuit and diary producer, cannot benet from higher output volume, the

target customer group is price-sensitive and strong competition allows customers to

switch between di " erent brands: products e " ortlessly a new product cannot be

positioned as a fully premium o " er .63

However, the average price for biscuits is 48p/100g and the average price for fresh milk

is approximately 5.5p/100ml ; the product is likely to create value that justies a price64

of 3, compared to an average biscuit package or milk carton.

Communication mix: Advertising strategy.

Bisc&Co. is going to be positioned as a high quality and healthy option with great taste.

The main target for Bisc&Co. advertising campaign is to introduce a new sub-brand and

give the target customer an opportunity to experience the new product. When

competing in a saturated such as the biscuit one, it can be di & cult to di " erentiate from

other competitors. The advertising strategy will be designed directly for the target

Jobber (2010), page: 45063

Based on a sample from mySuperstore.co.uk64


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customers and Bisc&Co. will be aimed at an adult audience, as portrayed by analysis of

the gap in the market. The target goal for Bisc&Co. is to reach sales of 50 million by

year 2016.

Message

The content of the message is to make a rational appeal to target customer. The

message will be presented through the demonstration of part of the daily life styles. The

structure of the message is to make the target customer understanding the importance

with breakfast and how easy it is to bring Bisc&Co. while travelling to work and

information about all important ingredients to start the day in a healthy way. Bisc&Co.s

communication objective is to provide consumers an easy enjoyable breakfast option.

The advertisement will portray; the Williams family, in their normal morning routine. The

parents stressed out from having to preparing breakfast and take children to school

whilst rushing to own job unfed and extremely stressed; suggesting the only solution is:

Bisc&Co. it's breakfast on the go.

Communication channels

The most convenient way to deliver the message is through four communication

channels: sample table in groceries shops, TV ads, free newspaper ads and billboards in

strategic places for example: tube station.

The primary purpose of a new sub brand is to stimulate the emotions of the target

audience. The rst communication channel, mentioned above, o " ers samples to target

customers; This gives the customers a possibility to taste the product before buying it;


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also it creates an interest in the product, due to the colloquial skills of sales people

promoting the brand. Awareness is a key word, and Bisc&Co will rst expose stands in

large metropolitan cities such as: London, Birmingham, Manchester, Liverpool, Leeds,

Glasgow, Southampton, Cardi " etc.

The TV advertisement will be approximately 30-40 seconds, depicting a scenery from

the Williams family lifestyle. The most convenient times to unveil the spot, would be

during morning shows, for example: sponsoring the BBC morning show, have ads in

cartoon channels on Sky or any other digital media. It is common that children watch

cartoons in the morning whilst having breakfast, thus consequently forcing their parents

to view the same channel.

Bisc&Co., di " erently from other children aimed spot, will aim at parents and stand out

from the usual children advertisements that usually run on cartoon channels.

The communication strategy also, may be carried out through free newspapers such as

Metro or the Evening Standard in London and similar ones around the UK. The variety of

people that reads the newspaper will remarkably enlarge the product's awareness.

To make the communication strategy complete, Bisc&Co. will be advertised through

advertising spaces around cities. The locations will be on various transport media e.g.

tube and busses. Fusing these strategies would ensure a wide coverage in any city and

appeal to the target customers taken into consideration (or else people who need an

alternative breakfast option in the mornings)


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References:

Belvita Breakfast 2012, Belvita Breakfast Biscuits [online] Kraft Foods United Kingdom,Available at: http://www.belvitabreakfast.co.uk/?

gclid=CIq2yPzG9rICFSTHtAodohgA7g&gclid=CMrB4q2wzrMCFanItAodM0QAfA[Accessed: 20.10.2012]

British Medical journal 2012, 20% fat tax needed to improve population health[Online] Available at: http://www.bmj.com/press-releases/2012/05/14/20-%E2%80%9Cfat-tax%E2%80%9D-needed-improve-population-health [Accessed:29.10.2012]

Joseph, S., 2012. McVities unveils debut as campaign for new biscuit range. [online]Available at: http://www.marketingweek.co.uk/mcvities-unveils-debut-ad-campaign-

for-new-biscuit-range/3033613.article [Accessed: 18.11.2012]

Jobber, D., 2010, Principles and Practice of Marketing, 6st edition, McGraw-Hilleducation, Maidenhead, Berkshire.

J Sainsbury PLC 2011, Lifting the Lid on the Nation's Favourite Biscuits - Anyone for aDigestive? [online], Available from: http://www.j-sainsbury.co.uk/media/latest-stories/2011/20110718-lifting-the-lid-on-the-nations-favourite-biscuits-anyone-for-a-digestive/ [Accessed: 10.10.2012].

Kellogg's 2011, Annual report [online], Washington, D.C., Available from: http://www.sec.gov/Archives/edgar/data/55067/000119312512085976/d279714d10k.htm [Accessed: 10.10.2012].

Kelloggs 2012, Kelloggs nutrigrain biscuits [online], Available at: http://www.nutrigrain.co.uk/ [Accessed: 10.10.2012].

Key Note market report 2012, Biscuits & Cakes [online], Available from:www.keynote.co.uk [Accessed: 30.09.2012].

Key Note market report plus 2011, Biscuits & Cakes [online], Available from:

www.keynote.co.uk [Accessed: 30.09.2012].

Key Note market report 2011, Breakfast Cereals [online], Available from:www.keynote.co.uk [Accessed: 30.09.2012].

Mintel reports: UK April 2012, Biscuits, Cookies and Crackers [online], UK, Availablefrom: www.mintel.com [Accessed: 30.09.2012]

Mintel reports: UK April 2011, Biscuits, Cookies and Crackers [online], UK, Availablefrom: www.mintel.com [Accessed: 30.09.2012].


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mySupermarket groceries 2012, Plain Biscuits in Tesco [online], Available from: http://www.mysupermarket.co.uk/#/grocery-categories/plain_biscuits_in_tesco.html [Accessed: 10.10.2012].

Stodell. H, 2012. Kelloggs enters the breakfast biscuit arena with Nutri-Grain. [online]Available at: http://www.thegrocer.co.uk/fmcg/ambient/cereals/nutri-grain-enters-breakfast-biscuit-arena/229792.article [Accessed: 18.11.2012]

The Food & Drink Innovation Network, 2012. New Belvita Breakfast avours for 2012.[online] Available at: http://www.fdin.org.uk/2012/01/new-belvita-breakfast-avours-for-2012/ [Accessed: 18.11.2012]

Press Association, 2011. UK could introduce fat tax, says David Cameron. [Online]Available at: http://www.guardian.co.uk/politics/2011/oct/04/uk-obesity-tax-david-

cameron [Accessed on 29th

November 2012]

BBC, 2007,Government O & ce of Science . http://news.bbc.co.uk/1/shared/bsp/hi/pdfs/22_11_07_modelling_fat.pdf [Accessed on 29 th November 2012]


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Appendix


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1. Factors to be considered when choosing sweet biscuits

Source: Figure 52: Factors to be considered when choosing snacks, sweet biscuits andsavoury (non-sweet) biscuits, February 2011


2. Distribution

Source: Table 3.4: UK Supermarket Retailers by Total Share of the Market (%), 2010

Key Note market report plus 2011, Biscuits & Cakes [online], Available from:www.keynote.co.uk [Accessed: 30.09.2012].


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3. Price

Summarised, popular biscuit production and prices


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Source:

mySupermarket groceries 2012, Plain Biscuits in Tesco [online], Available from: http://www.mysupermarket.co.uk/#/grocery-categories/plain_biscuits_in_tesco.html

[Accessed: 10.10.2012].


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4. Market trends

Source: Figure 15: Perceptions of healthiness of cereal bars, crackers/savoury biscuitsand sweet biscuits, by demographics, October 2011.


5. Types of sweet biscuits consumed

Source: Figure 33: UK retail value sales of sweet biscuits, by segment, 2011

Mintel reports: UK April 2011, Biscuits, Cookies and Crackers [online], UK, Available

from: www.mintel.com [Accessed: 30.09.2012].


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6. The Williams family

The drawing illustrates a typical morning for the family Williams.


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7. Bisc&Co

Figure 1 Visual Design.

bisc & co, it's breakfast on the go

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