Darrell Lea

Sandun Samarakoon

Hannah Rowe

Media Brief

Market Analysis

Product Analysis

Target Audience Analysis

Autobiography

Day in the Life

Pictography

The Darrell Lea product range has undergone several changes

Place of purchase – from speciality stores to over 4300 stores (include Woolworths, Coles, IGA, SPA and pharmacies, newsagencies and post offices)

Logo and packaging has changed to compete in these new places

Product deletions and new products introduced. Product range will be launched in November 2013Media budget $3.5 million

Darrell Lea

The Darrell Lea range is now accessible for all Australians as an everyday purchase, not only for occasion purchasing

National market

Darrell Lea

The Australian confectionery manufacturing industry has remained strong despite the recession, increasing commodity prices and import competition. The industry has received an annual growth of 2.3%. (Sivasailam, 2013) This stability might attract international confectionary producers, introducing new products and brands.

There is a high market share concentration due to acquisitions and growth among the major companies. Kraft Foods, Nestle and Mars generate the most revenue. (Kulliney, 2012)

64% of Australians consider themselves to be overweight, and 82% are actively trying to lose weight by changing their diet (Nielsen Global Survey, 2012). There is a demand for tasty sugar free confectionery (Ireland, 2013)

Market Analysis

Strengths Reputation. Well known Australian company, long

history Brand Equity Weakness The brand is relaunched, has been out of the

consumers mind for a while. New place of purchase Relatively low media budget compared to

competitors

SWOT Analysis

Opportunities New product range Freedom - no previous media mandatories

Threats Mature and competitive industry Rising costs of production (Research and markets ltd,

2009) Competitors have considerably larger media budgets

(AQX data)

SWOT Analysis

Political Industry wide voluntary front of pack labelling (FED, 2012) New requirements set by Food Standards Australia New

Zealand (Rethink on food fat-free labelling, 2012)Economic Rising commodity costs. A number of companies to close

or scale down their Australian manufacturing operations due to increasing commodity costs. (Research and markets ltd, 2009)

Demand from supermarkets and grocery stores (Sivasailam, 2013)

PEST Analysis

Social Obesity pandemic Health consciousness, chocolate is considered to

be unhealthy

Technological factors New flavouring processes and methods. For

example Lindt has explored flavours such as sea salt, wasabi, black garlic and camel milk chocolate. (Australian Industry Group, 2013)

PEST Analysis

It is a growing industry with a high market share concentration, and the competitors have larger media budgets which put Darrell Lea at an disadvantage. The product is re-launched in a new place of purchase in a time where consumers are more conscious of their health. The new packages and the Darrell Lea name will provide an advantage over competitors products.

What this means for Darrell lea

The retail price is higher than competitors. All Darrell Lea products are made in Australia. Little advertising has been undertaken previously. Originally a seasonal product, now it is to be purchased throughout the year. Consumers grew up with the Darrell Lea brand, but are unaware that they are now available in grocery stores. (Darrell Lea Confectionery, n.d) The products are distributed in over 4000 outlets across Australia.

Product Analysis

The increase of health conscious consumers has made competitors be innovative with their product lines and adapt them to changing consumer trends.

Competitors

Cadbury FavouritesFavourites would become the perfect solution to that timeless social dilemma: what to take as a gift to someone else's casual get-together

Targeted outdoor, near and around supermarkets, and radio to catch mothers close to the decision-making moment. This was supported by online activity to further spread awareness of the new brand platform (Ward & Simpson, 2012)

Choc on ChocChocolates are handmade using a unique layering and moulding process. Communicated the brand ideals visually by using hand-crafted elements in the package, including a hand-tooled font and hand-tied chocolate-coloured ribbon.

New retail listings such as Selfridges and Harrods in the UK and international catalogue listings (Warc, 2012)

What competitors are doing

Mondelez International total 23 235000/month Lindt & Sprungli Aust P/L Total 3 396 000/month Mars Snackfoods Total $9 806 000/month

Darrell Lea total $115 000/month

These are the top three competitors with the highest market share and media spend. (AQX, 2013)

How much are they spending on media?

What media are they using?

Assortments Monthly Media Spend by Competitors

Metropolitan Tele-vision

Regional Television

Metropolitan Press Regional PressMagazines Metropolitan RadioOnline CinemaOut of Home

Block Chocolate Monthly Media Spend by Compet-

itors Metropolitan Tele-vision

Regional Television

Metropolitan Press Regional PressMagazines Metropolitan RadioOnline CinemaOut of Home

(AQX, 2013)

When are they advertising?

(AQX, 2013)

Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-120

1000

2000

3000

4000

5000

6000

7000

8000

Block Chocolate Total $Childrens Products Total $Confectionery-Corporate Total $Sugar Confectionery Total $Seasonal Lines Total $Mints Total $Chewing Gums Total $Assortments Total $

Metropolitan television is the media vehicle that is used the most by competitors

Media spend regularly throughout the year, with chocolate assortments peaking during summer months and block chocolates during winter

The target audience is the group that usually buys the groceries (V% 100, ix 153).The product is used by both the target audience and their family. (Darrell Lea Confectionery, n.d.) The products are to be positioned as a repeat purchase item.

84% The TA tends to snack during the day (V% 60.7, ix 152) on confectionery items,

They are more health conscious, and lead a full and busy life (V% 81.5) (Roy Morgan Single

Source Data, 2013)

Target Audience Analysis

Aged 25-49 Employed part time (ix 202) Usually buys groceries Has children U18 (V% 92.3, ix 315) Income $70 000-$250 000+ Mean Income $137 500

(Roy Morgan Single Source Data, 2013)

Demographics

0-2 Years3-5 Years 6-8 Years 9-11 Years 12-15 Years 16-17 Years

Children’s age distribution

Target Audience Geographic Data

Darwin - Alice SpringsTasmaniaWestern AustraliaSouth AustraliaQueenslandVictoriaN.S.W. incl. ACT

Capital CitiesCountry Areas58.4%41.6%

(Roy Morgan Single Source Data, 2013)

Use the Internet (V% 100, ix 110) Read magazines (V% 73.7) Listen to commercial radio 1-3hrs day (V%

64.7)

(Roy Morgan Single Source Data, 2013)

What media do they use?

Went to a supermarket 97.60%Visited friends/relatives 91.30%Used a computer at home 90.20%Went to a department store 81.10%Went to a clothing store or boutique 81.00%Went to a newsagent 75.30%Entertained friends/relatives 73.30%

What activities do they undertake?

(Roy Morgan Single Source Data, 2013)

44 % (ix 200) would consider doing grocery shopping online. The target audience are comfortable conducting transactions on the internet. 57.3% regularly paid their bills and 56.7% conducted banking transactions online.

This could be since the TA are time poor, and these online activities save time.

Online Activities

My name is Helen. I am 36 years old and I have 2 children. I lead a busy life looking after my family and working part time and I am always looking at ways to save time. I like to unwind by curling up on the couch to read a magazine. We are currently paying off our home and have plans to invest in property in the future. My families health and well being is very important to me. I try and lead a healthy lifestyle but I do occasionally indulge myself with something unhealthy.

Autobiography

6am 9a

m

10am

12pm

2pm3p

m

5pm

6pm

8pm

11pm

Helen’s Week Day

Wake up/Shower/Chores/get kids ready for school

Drop kids off at school/ listen to radio/ billboards

Work/surf the web/ read emails

Lunch/walk

WorkCollect kids from school

Dinner

Sleep

unwind/read a magazine

Yoga/Pilates

7am

9am

2pm

3pm

6pm

8pm

10pm

Helen’s Week End

Sleep in/ make breakfast for family

Visit park with family

lunch with friends

Grocery Shopping

Sun Night at homeWatching TV or DVD/Video

Dinner

Sleep

unwind/read a magazine

Pictography

Family

Shopping

The target audience are health conscious, time poor and want to provide the best for their family so they view confectionery that they purchase as a guilty pleasure.

Insight

An analysis of the confectionery market in Australia, including forecasts to 2011, leading company profiles & market segmentation. (2008). Business Wire. Retrieved from http://search.proquest.com/docview/444465776?accountid=13380Australian Industry Group. (2013, June) Confectionery Industry News. Retrieved from: http://www.aigroup.com.auConfectionery News. (2013) Mars to Expand Maltesers plant in Australia. Retrieved from : http://www.confectionerynews.com/Manufacturers/Mars-to-expand-Maltesers-plant-in- Australia%20Darrell Lea Confectionery. (n.d.). In Facebook [Page]. Retrieved 31/08/2013, from https://www.facebook.com/DarrellLeaChocolatesFED: Food regulator could ban fat-free labels. (2012, Feb 17). AAP Finance News Wire.

Ireland, T. (2013). Australian-owned confectionery offers a Sugar-Free treat without the nasties. Media Connections. Retrieved from: http://mediaconnections.com.au/australian- owned-confectionery-offers-a-sugar-free-treat-without-the-nasties/Kulliney, K. (2012, 4 June). Tasty innovation ensures resilience in cash strapped, health conscious Australia. Confectionary News. Retrieved from: http://www.confectionerynews.com/Markets/Tasty-innovation-ensures-resilience-in-cash- strapped-health-conscious-Australia Nielburg, O. (2013, 22 August). Analysis: Where is confectionery production moving? Confectionery News. Retreived from: http://www.confectionerynews.com/Markets/Analysis-Where-is- confectionery- production-moving?nocountResearch and markets ltd.; the Q1 2009 independent forecasts and competitive intelligence on australia's food and drink industry. (2009). Food Business Week, ,150. Retrieved from http://search.proquest.com/docview/203666069?accountid=13380Rethink on food fat-free labelling. (2012, Feb 18). The Mercury. Retrieved from http://search.proquest.com/docview/921865914?accountid=13380Sivasailam, N. (2013). IBISWorld Industry Report C1182. Chocolate and Confectionery Manufacturing in Australia. Retrieved 26 August 2013. retrieved from IBISWorld databaseWarc (2012, May). Gain Customers (Chocolate). Retrieved from the Warc Database.Ward, T., Simpson, M., (2012) Cadbury Favourites: Thinking outside the chocolate box. Retrieved from the Warc Database.