Griffith University

Marketing report

Sweet box introduction

Lisa (LIALC1503) Evelyn (GUAYD1603) Tina (TONXD1603) Grace (CHEUD1603)

2017/1/13

TABLE OF CONTENTS1.0Introduction…………………………………………………………………………..p.32.0Product ………………………………………………………………………………p.3

2.1Product layers: core, actual, augmented……………………………………..p.2.2 Type of product…………………………………………………………………p.2.3Branding strategies……………………………………………………………..p.2.4Packaging………………………………………………………………………..p.2.5 Development process………………………………………………………….p.

3.0 Place………………………………………………………………………………….p.5 3.1Channel structure………………………………………………………………..p. 3.2Factors affecting channel choice……………………………………………….p. 3.3Levels of distribution intensity…………………………………………………..p. 3.4Retailing…………………………………………………………………………..p. 3.5Benefits of retailing/utility……………………………………………………….p.4.0 Promotion…………………………………………………………………………….p.85.0 Price………………………………………………………………………………….. p.11References…………………………………………………………………………........p.14Appendices……………………………………………………………………………….p.17

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1.0 Introduction

This report will introduce a new product for Hello Fresh — Sweet box. It is a dessert

box providing a variety of raw materials for female living alone to cook a yummy

dessert at home conveniently. Sweet box will achieve 45% market share in the finance

category and obtain approximately 50% buy-back rate within a year. In the report, it

will clarify product, place, promotion and price in detail for Sweet box.

2.0 Product

2.1Product layers: core, actual, augmented

Core benefit：Gardiner, Hair, Lamb, Mcdaniel and Summer (2009) claimed that “the

problem-solving core benefits that customers are really buying when they obtain a

product” (p. 119). Christensen and Brooks (2006) reported that having dessert can

make people happy (p. 294). When people want to eat dessert, they don’t have to go

out to find dessert store. They can make delicious dessert easily at home. After

finishing dessert, people feel happy and energetic. That is what Sweet box wants to

achieve.

Actual product: The new product is called Sweet box, which helps customers to make

delicious dessert easily at home. It is the new product of Hellofresh. Sweet box still

has the same model as the usual meal box. The raw materials are set in a box and

there is a recipe that customers can follow the steps to make a dessert easily. The box

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collects the freshest raw material of dessert, for example taro ball or small rice ball,

fresh fruit and so on. Also，the ingredients in Sweet box will change each season.

Augmented product: Hellofresh provide delivery services that customers only need to

order online with fresh ingredients and recipes send straight to customers’ doorstep. In

Sweet boxes’ own special packaging. If customers collect 7 Sweet boxes, they will get

special discount and Hellofresh will help recycle those boxes.

2.2 Type of product

Sweet box is a speciality product only available on Hellofresh website which is online

business that customers need to order the box on internet and the product will be

delivered door to door. There are no similar products on Gold Coast market for

customers, and can only buy sweet box through Hellofresh.

2.3 Branding strategies

Hello fresh is a private brand owned by Dominik Richter and Thomas Griesel. Sweet

box is an individual brand of Hellofresh. As Sweet box is dessert box which is not

like other meal boxes in Hello fresh.

2.4 Packaging

Sweet box’s packaging is like a gift box which is easy to open that customers will be

happy just like opening one gift. There are sponges inside the box which can protect

the product. The whole box can be recycled by Hellofresh and customers can get

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special discount when they collect 7 boxes. There are four pictures to show the details

about packaging in Appendices.

2.5 Development process

Sweet box is new product that help customers make dessert at home. There is no

similar product on Gold Coast market. If Hellofresh launches this product into market,

it can take the large part of market share. Techonomic Study (2010) found out that

only 1% people don’t like dessert and 70 % people in the survey eat dessert at least

once per week. When Sweet box inputting marketing, it will attract customers to buy

it because it satisfies their wants. After customers enjoying dessert, Hellofresh will

recycle those boxes and try its best to protect the environment.

3.0 Place

3.1 Channel structure

Gilbert (1999) stated that place is gained from the activities of the retailer to provide

channel services (p.113). It means that marketing channel is very important element.

Marketing channels can allow information and products to be exchanged among

manufacturers and customers (Dost, 2015, p.50). As a result, structure channel is a

bridge which can connect the two essential parts effectively. The new product sweet

box is more suitable for direct channel because direct marketing activities including

online shopping and Hellofresh provides it.

3.2 Factors affecting channel choice

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Furthermore, the most vital factor of the channel choice is product factor because

Hellofresh provide fresh ingredients with customers. Therefore, the raw materials are

perishable and have relatively short life span so they need a short marketing channel

to ensure the quality of products and easy to deliver to customers. In addition, the use

of direct channels to reduce the involvement of intermediates and costs so that

company can make more profits in the future.

3.3 Levels of distribution intensity

Lamb, Hair, Mcdaniel, Summers and Gardiner (2016) stated that “seletive distribution

is a form of distribution achieved by screening dealers to eliminate all but a new

dealers in any single area” (p.172). Dessert box is only designed for female who

living alone. Shopping goods and some speciality products are distributed selectively.

Only a few retailers are chosen, the consumer must seek out the products.

3.4 Retailing

When it comes to the online retailing, it has grown rapidly in the recent 10 years.

Beside of computers, with the development of science and technology, consumers can

not only view the product information on their mobile phones but also can buy

(Verma, Sharma and Sheth, 2016, p.206). It suggests that nowadays have many

popular methods to help company develop and sale products. At the same time,

customers view change and more and more likely to do follow fashion trend. Sweet

box can provide many payment methods so customers have more opportunities to

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choose. Retailing is not only about selling products, but also about services. Non-store

retailing is more suitable, because target markets are female who living alone, they

need convenience and healthy. When two equally good products are available,

consumers generally prefer buying the product at a nearby shop to traveling to a

distant shop (Jager, 2007, p.872). It means that the psychology of people is seeking

convenience. Company marketers also need collect the information about customers

such as their basic information and contact methods which can help them make a

good relationship with customers and then achieve the marketing goals.

3.5 Benefits of retailing/ utility

According toElliott, Rundle-Thiele and Waller(2012), he found ficve utilities which is

about benefits of retailing(p.366). Firstly, time utility and place utility is Hellofresh

provide 24-hours online shop, so customers can buy products regardless of the time

and location. Form utility is many fresh ingredients can be combined to different

dessert to meet the different needs of female. In addition, the company also have

advice and personal service, when customers have problem they can easy to find out

and contact with online sale assistants about products and then can get reply timely.

Finally, exchange efficiencies are Hellofresh also sales the other special boxes such as

lunch box, weekly box. It also provides many choices for customers.

4.0 Promotion

4.1 Goal of promotion

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The persuasive promotion has been selected as the goal of promotion for Sweet box.

This can be achieved by using four tasks which are encouraging brand switching,

changing customer’s perceptions product attribute, influencing customers to buy now,

persuading customers to call (Lamb, Hair, Mcdaniel, Summers and Gardiner, 2016,

p.201). Therefore, Sweet box concentrates on manipulating customers, introducing

the concept and highlight the convenience of sweet box. Not only to explain the

benefits but also provide some discount to attract the target audience. Hence, to

stimulate a purchase from the consumers.

4.2 Promotional mix

Advertising, sale promotion, public relations and social media are chosen as the

promotional mixes of sweet box to develop the target market. For advertising, Google

has become the most popular search engine in Australia (Nla.gov.au. N.p., 2017), as

the target market of sweet box is Australia females who live alone, sweet box will be

advertise on Google to discover potential customers. For sale promotion, which is a

method that increase product requests in a short term(Lamb, Hair, Mcdaniel,

Summers and Gardiner, 2016, p.203). Thus, having a promotional activity such as free

sample, for the first fifty customers to taste the sweet box and also can provide

opinions of the product. For public relations, the box of our product can be recycled

when customers accumulate to seven boxes for protecting the environment, which can

earn public understanding and gain the good reputation for Hellofresh. For social

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media, Facebook is chosen to be the main strategy because it is quicker to reach

audience and collect feedback immediately.

4.3 Integrated marketing communication

Integrated marketing communication is the method of organizing the promotional

mixes to build up reliability and provide information which is customers-focused

(Lamb, Hair, Mcdaniel, Summers and Gardiner, 2016, p.196). Sweet box as a new

product for the market to informs consumers by highlighting the convenience to

attract the target market.

4.4 Factors affecting the promotional mix

There are six factors that may influence the promotional mix, we mainly focus on the

nature of the product and type of buying decision. For the product, sweet box as a

business product needs to inform customers to raise their awareness and interest. For

example, print out some flyers that introduce the product features. However, the

promotional mix may also depend on the type of buying decision, since sweet box is

easy to order on the website of HelloFresh just as a routine decision. Thus advertising

on Facebook may offer a higher efficiency to appeal to consumers.

4.5 Push and pull strategies

push strategy has been chosen to promote sweet box. Lamb, Hair, Mcdaniel, Summers

and Gardiner (2016) claimed that push strategy is to use aggressive personal selling

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and trade advertising to convince a wholesaler to carry and sell particular merchandise

(p.207). Thus it is effective in providing strong persuading skill to convince

customers. For example, sweet box will be promoted as a special discount package for

customers. If customers order four sweet boxes in one purchase, they will get a

special price whichbenefit customers to purchase the “pushed” product.

4.6 Type of advertising

Since sweet box is a new product for the market, pioneer advertising is used to

promote our product which is proposed to motivate the major demand for a new

product (Lamb, Hair, Mcdaniel, Summers and Gardiner, 2016, p.216). Not only to

stimulate consumers but also describe the details of product benefits and generate

interest from customers.

4.7 Media types

According to the survey by SocialMediaNews (2016) claim that the most popular

social media in Australia is Facebook which reaches 15 million active Australian

users. Thus social media is a useful promotional tool for HelloFresh to promote the

new product. Based on the survey, Facebook has been chosen as the main advertising

media, the direct details of sweet box will be posted on Facebook it is eye-catching

for our target market and also increasing the interest of customers. Besides, email-

marketing will be used to influence customers to reach a wider target audience.

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5.0 Price

5.1 Stages of pricing

Six stages will be used to set a price for Sweet box. (Appendix E)

5.1.1 Pricing objectives

Pricing objectives plays an important role in promoting sale. Compare with other

pricing objectives, sale-oriented pricing is the best choice for Sweet box because fruit

is low-margin product, it is impossible to gain a huge profit in one box. So through

high sale volume to increase earning is what the Sweet box is looking for. Besides,

low price is the useful method for new product to win popularity.

5.1.2 Determinants of demand, cost and other

Price is affected by many factors including demand, cost, and other. Sweet box mainly

use sale-orientated pricing, so demand considerations usually dominate the price.

Sweet box own an elastic demand because it is a dessert box which is not a necessity

for human beings. Sweet box sale correlates with price changing, if rise in the price,

demand will be reduced therefore, customers may find other alternative.This suggest

that Sweet Box is best suited to use make-up pricing and variable cost theory.Sweet

box will hike the sales price approximately 35%~50% higher than the base price to

pay for the labor cost and other outcome. Besides, Sweet box price will change

according to both quality and kinds of fruits inside. Except that, internet and

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competitors are also take into account because female prefer to online shopping and

like the typical connoisseur who spend much time in finding right item at the right

price. (Michael Madigan, L. M. 2003.N.D.)

5.1.3 How to set a price

Sweet box always pursuit of low price for the sake of high volume. In this case,

Penetration pricing meet the need of Sweet box through low price to catch customers’

interests then grasp the mass market.( Gardiner, Hair, Lamb, Mcdaniel& Summer [3rd

Edition]P. 243).Compare with other the same type product, some of them sell in high

price(e.g. Peach dish sell $18.99 per dessert),others only sell simple product in lower

price (e.g. Home Chef and Plated).Sweet box will avoid these weaknesses and in view

of practical market situation while setting price. Last but not the least, Sweet box set

the original price at $9.99 which is the double of base price.

5.1.4 Tactics for fine-turning the base price

Testing price is an indispensable part of the price setting. In order to explore the

market share, quantity and seasonal discount are the best ways to achieve price goals.

In order to keep Sweet box’ quality, discount will be used in clear inventory. If the

customers purchase more than four boxes at the same time or meet the event

marketing sale, they will be given the special price in $8.88 for each box.

Furthermore, special pricing tactics are embodied in Sweet box price. Odd-even

pricing use odd-numbered prices to signify bargain and it usually gives customers a

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hidden purchasing trend. In addition, price bundling also encourages customers to buy

more than two products for the concession price which is good to increase volume for

Sweet box.

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Reference

Cowling, David. "Social Media Statistics Australia - November 2016".

Socialmedianews.com.au. n.p., 2016. Web. 2 Dec. 2016.

Christensen, L., & Brooks, A. (2006). Changing food preference as a function of

mood. The Journal of Psychology, 140(4), 293-306. Retrieved from

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Dost, F. (2015). A non-linear causal network of marketing channel system structure.

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Elliott, G., Rundle-Thiele, S., Waller, D., &ebrary, I. (2012). marketing (2nd ed.).

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Gilbert, D., 1962. (1999). Retail marketing management. London: Financial Times

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Jager, W. (2007). The four P's in social simulation, a perspective on how marketing

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Michael Madigan, L. M. (2003, Sep 18). Female shopping habits turn men into a

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Verma, V., Sharma, D., &Sheth, J. (2016;2015;). Does relationship marketing matter

in online retailing? A meta-analytic approach. Journal of the Academy of

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Marketing Science, 44(2), 206-217. doi:10.1007/s11747-015-0429-6

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Appendix B - picture of your product/ brand/ packaging

Figure 1 Packaging design – front side

Figure 2 Packaging design – back side

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Figure 3 Actual sample packaging

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Figure 4 Actual sample product

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Appendix C - distribution diagram

Appendix D - Picture of promotion idea (print advertisement)

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Appendix E - table of competitors’ pricing research

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Appendix E - Pricing steps

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