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Advertising And Integrated Marketing Communications Assignment Sample

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1.0. Introduction and Company Background

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1.1 Introduction

The food and beverage industry is the fastest-growing industry in Australia. It is worth around $132 billion, providing employment opportunities to around 270,800 people nationwide. The industry builds upon 32% of Australia's total manufacturing units, through which customers' changing demands are addressed on time (Khoury, 2022; Berry, 2021). Apart from this, from the growing needs of the customers, the industry has been facing some unforeseen challenges through which Bega has innovated a range of new products to maintain customer satisfaction for the long term. The new products include a different variety of peanut butter with a range of vitamins and minerals through which the health and safety needs of the customers are addressed, and the company has maintained a high brand image in the competitive world. The study, in this case, provides a brief description of the situation analysis of the company in association with the advertising campaigns, which is the first section used by the company to enhance its brand image or valuation in the Australian marketplace, which is the second section and it finally concludes with a proper set of recommendations on the particular product. As evident from the case, the product's pricing and the quality of the raw materials used are also analyzed in this study.

1.2 Company Background

Bega Group is an Australian company based in the food and beverages industry and provides customers with many products. The company started as a cheese manufacturing company in the dairy industry but with the growing demand and needs of the customers, the managers have decided to manufacture different products such as milk, chocolate milkshake, coco milk, almond milk, peanut butter, and many more through which the company can attract and retain the customer base in various regions of the country (Bega Group, 2023).

Brand logo and product

Figure 1: Brand logo and product

(Source: Bega Group, 2023)

The company has established a strong brand by addressing the marketplace trends and enhancing supply chain management. The company has also been thriving by reducing the operational cost of manufacturing the products through which it has maintained a high brand image and experience of the targeted audience.

Packaging of Bega

Figure 2: Packaging of Bega

(Source: Evans, 2023)

The company has earned 32% of the market share in Australia through the help of good investment in emerging economies. Apart from this, with the proper use of the ingredients, the company has also been able to maintain social responsibility and the safety needs of the company, through which an increase in sales volume has been noted over the last few decades (Evans, 2023).

2.0 Background and Situational Analysis

2.1 Industry Analysis

Australia's food and beverage industry has strong growth as the county is facing a constant increase in its population, through which companies like Bega have maintained good sustainability and stability in their profit margin. This is further increasing the disposable incomes of the customers, which is also changing the trends of the marketing world. In this case, the company has to maintain constant innovation of the products through which an increase in the country's Gross Domestic Product (GDP) has been noted (OG Analysis, 2021). However, due to the pandemic period of COVID-19, the industry has also faced some regulations regarding the trade policies and the tax rates of the products through which the Growth of the marketplace has been lowered for the time being.

Key profitability ratios of the industry

Figure 3: Key profitability ratios of the industry

(Source: Australian Bureau of Statistics)

It can be noted from the above figure that the cost of goods within the industry is at its highest, which varied between 59 to 61% from 2012 to 2016. In this case, the labor cost of the companies within the industry varies around 14% of the sales margin. The main opportunities and trends of the companies include the increase in the consumption of organic products as it is expected to increase the industry's demand. The market size of the industry in this is $7 trillion, and with the evolution of the consumption of the products such as milk, bread, cheese, etc., the companies within the industry can grow in the global economy with a high rate of return on investment. It was also noted from the study of OG Analysis (2021) that the competition within the industry continues to increase, through which the portfolio of the products also increases. In future, it is expected to grow by 50%, through which the industry will gain popularity from different industries like retail sectors all over the country.

It was noted through the study of the Australian Trade and Investment Commission (2023) that the industry is cooperating with the Australian Government to enhance decision-making practices which can further help to enhance the Growth in the overseas market. In this case, the marketing environment of Japan, the USA, Korea, and India is tagged through which the companies can maintain proper Growth. In association with this, the dairy companies within the industry are focusing on extraction activities through which high-quality milk products with colostrum can be provided to the customers. The brewing companies are also focused on innovation strategies.

Sales income of the industry

Figure 4: Sales income of the industry

(Source: Australian Bureau of Statistics)

It can be noted through the above image that the largest sectors of the industry are meat manufacturers and dairy products, manufacturers. The industry will have achieved 2% more market share by the end of 2022 with the increase in the demand of customers after the pandemic period. However, current challenges of improper shortage in the storage of the products have been noticed by the companies through which the exports have been affected negatively, mainly for the beverages. In this case, the small and medium sized enterprises could earn their desired margins through which an increase in their operational cost has been noted (Atradius, 2022). However, the dairy sector within the industry has been working quite well due to the higher demand for the products and the increase in milk prices because most customers include dairy products in their daily diet.

2.2 Competitor Analysis

As per the reports of 2022, the leading competitor in Australia's food and beverage industry was Fonterra, which earned a revenue of $19 billion. The companies based in New Zealand provide dairy products to customers nationwide. Apart from JBS Australia was the second key player in the industry, which operates in the meat manufacturing industry. The company earned a revenue of $65 billion per the reports of 2022 by providing a wide range of products like beef, lamb, and processed meat to the targeted audience (Statista, 2023).

Competitors in the food and beverage industry of Australia

Figure 5: Competitors in the food and beverage industry of Australia

(Source: Statista, 2023)

The main competitors stay ahead of each other with the help of a wide range of products and the use of different marketing channels through which they can gain their desired profit margin. Apart from this, the competitors like Coca-Cola, which comes in third place, use innovation and differentiation strategies in terms of the manufacture of the beverage through which they can gain more customers than Pepsi in the marketing environment of the industry. At the same time, the critical competitors like Fonterra use high-quality dairy products to attract customers from the marketing environment. Apart from this, to increase the opportunity, the managers of JBS Australia analyse the needs of their employees closely, through which they can ensure proper determination in the workplace (JBS Foods Australia, 2023). Fonterra, on the other hand, uses a rewarding program with the farmers through which they can provide high discounts to the regular customers and partners and are able to stand a step ahead from the companies within the industry all over the world (Fonterra, 2023). The main types of channels used for the promotion of the products manufactured by the competitors include the in-store promotion and the social media websites through which they are able to enhance their customer reach, which further improves theory stability in the marketing environment of Australia.

Online advertising channels used by Fonterra to attract the customer base from the marketing environment while JBS Australia uses the banner ads to gain the customers. In this case, both the companies have the robust promotion strategy through which they are able to achieve their desired targets.

Advertisement channels of Fonterra and JBS

Advertisement channels of Fonterra and JBS

Figure 6: Advertisement channels of Fonterra and JBS

(Source: Fonterra, 2023; Seeking Alpha, 2023)

Bega Group


JBS Australia

Bega Group

Cheese and dairy products which are of high quality, innovation strategy keeps it on top.


Farm fresh dairy products, which are manufactured by the company, differentiation and organic products help to enhance its profit margin.

JBS Australia

Different types of quality-full meats which are manufactured according to customer needs. Cost leadership strategy helps it stand sustainable in the competitive world.

Table 1: Competitor analysis

(Source: Created by the Learner)

2.3 Consumer Analysis

The consumers who are health conscious and like to add extra crunchy and tasty butter for their everyday diet are the key targets for Bega peanut butter. The behavioural profile of the customers includes the dietary supplement as the peanut butter is made of highly soluble minerals and nutrients which can help the customers to gain healthy fat with their timely meals. The demographic profile of the customers who use the product includes the individuals from both middle and high standard families as the price range of peanut butter manufactured by Bega is quite affordable. The customers who have dog pets or who are married also use this product to give their pets daily treats or to make tasty dishes like peanut butter and olive oil noodles for their meals accordingly as per the Global Peanut Butter Market Report and forecast 2023-2028. The customers living in the urban and the rural regions of Australia fall under the geographic profile for the peanut butter produced by the company through which it has been able to maintain a wider reach in the competitive marketing world. Apart from this, the psychographic segmentation of the customers by the company also offers a wider reach as the product is made from the organic ingredients and does not uses any animal bi-products it is safe for consumption for culturally different individuals.

The consumers face a lot of issues regarding the consumption of peanut butter offered by Bega. Firstly, the consumers face issues regarding the selection of the product because a large variety of substitutes fromdifferent brands and at different ranges are available to the individuals. Secondly, the consumers face issues in terms of their health and safety because the peanut butter is considered as a legume which does not carry the same amount of nutrients and antioxidants as the raw nuts do due to their processing. The main factors in this case, which helps to enhance the buying behaviors of the customers include the contents or the raw materials used for the manufacturing of the product. In association with this, the appropriate amount of nutrients and proteins in peanut butter due to which its antioxidants cannot be destroyed, are useful for the companies like Bega to attract and retain the targeted customer base for the long-term. This can also boost the loyalty of the customers through which proper and constant Growth of the company can be maintained which can further enhance its rate of return on the investment in the competitive world.

The customers are further influenced by the innovation of a new variety of the peanut butter available in the market like the dual flavored choco peanut butter innovated by the competitors. As per the company’s analysis there are no current needs of the customers which are not met from the peanut butter made by Bega Group because the company has also reduced the price margin for the product and has made it gluten free through which the health and safety demands of the potential customers are fulfilled. However, as per the research of Roy Morgan it has been noted that the use of plastic for the packaging of the products is a bit off for the company through which it is unable to ensure proper corporate social responsibility of the company and it is unable to enhance the safety needs of the customers.









· Age: 10 to 50 years

Gender: Male, Female and others

· Reference Group: People with low, medium and high rates of income

· Interest and activities: Health conscious and the individuals who performs extra-curricular activities

· Religion: No specific regions required because the products are plant based and gluten-free

· Potential spending: Expend a large amount on foods and xpensive dishes

Table 2: Mood Board

(Source: Created by the Learner)

3.0 Advertising and Creative Strategies Campaign Analysis and Opportunities

3.1 Advertising and Creative Strategies Campaign Analysis

Strengths of using social media channels for advertising of Bega peanut butter- The usage of Facebook posts can be helpful for the company to gain loyal customers. In this case, the company uses various sponsors and collaborators who provide real time insights on the usage of the products and its high quality through which high satisfaction of the customers are maintained for the current as well as future period (Barnhart, 2023). This also increases the customer reach for the company through which it is able to expand in the emerging economies and earn a stable position in the competitive world. The use of Instagram and YouTube on the other hand, has also helped the company to identify the needs of the customers in terms of peanut butter through which they are able to enhance the product and change its nutritional value in order to satisfy the target audience. This further helps to secure the resources of the company through which it is able to stabilize the operational cost for an extended period.

Weakness of using social media channels for advertising of Bega peanut butter- Sine the employees are not trained properly abo the usage of the social media channels for the advertisement purposes they are unable to record the baseline of the ads and record the performance through which the issues of increase in the budget can be noted in Bega. This can further push the price margin of the product (Peanut Butter) which can further lower the rate of return of the company in the marketplace (Barnhart, 2023). Apart from this, the company is also not sure about publishing content as the employees are sometimes unable to handle large amounts of consumer data.

Strengths of using organic products as a Creative strategy- Owning the organic farm and providing vegan peanut butter has been helpful for the company to increase its profit margin after the year 2021 (Admin, 2019). The main reason behind this is the growing needs of the customers in terms of the organic products. It also helps to maintain smooth and positive financial flow in the company.

Weaknesses of using organic products as a Creative strategy- The company has been facing a lot of cash fluctuations regarding the purchase of the organic raw materials like sea salt and farm grown peanuts through which it has been unable to maintain desirable profits over the time being (Admin, 2019). Apart from this, the concerns related to the weather of the country are also affecting the availability of the organic materials through which the company is unable to maintain customer satisfaction for a long period.

4.0 Recommendations and Conclusion

4.1 Recommendations

  1. Using social media platforms- The managers of the company shall focus on engaging with the customers on the social media applications like Facebook, Twitter, Instagram, TikTok and YouTube through which they will be able to gain real-time insights of the customers and develop the product as per their needs. This can help to enhance the loyalty and trust of the customers in the company which can further increase its profit margin by 25% in the next three years. Apart from this, collaboration with the famous food bloggers, chefs and gym trainers over the social media channels can also be helpful for the company to gain more customers from all over the world.
  2. Developing a user-friendly application- A proper generation of applications by the marketing managers of Bega can be useful for the company to gain new consumers from the competitive world. In this case, the applications shall include user-friendly suggestions through which free delivery of peanut butter within a certain diameter of the manufacturing unit can be provided to the customers who purchased the product in bulk quantities. This can increase the experience of the customers and can help to retain them for an extended period. In this case, a proper feedback channel like chatbot system can also be implemented in the app to timely address the issues faced by the customers using the app which can enhance the profit or sales margin of the company by 50%.
  3. Plastic free packaging- The managers shall also adopt plastic free packaging for the peanut butter through which they will be able to enhance their corporate social responsibility in terms of maintaining a sustainable or green social environment. This shall also help the company to reduce the waste generation which can reduce its operational cost with a simultaneous increase in the gross margin by 15% by the end of 2025.

4.2 Conclusion

It can be concluded through the study that the company has the potential to expand in the global and emerging economy with the help of its creative strategy of providing organic and diverse range of peanut butter as per the changing requirements or preferences of the targeted audience. But the managers of Bega need to focus on the cost leadership approach to gain the customer base and to enhance their retention in the marketplace as the rate of competition is extremely high. Apart from this, the managers can also focus on maintaining a huge supply base so that the issues of poor availability of organic peanuts as per the changing climate or weather of Australia can be reduced with the help of trade facilities. This can also help the company to maintain timely delivery of the product to the targeted audience through which long-term sustainability of the company can be maintained on a worldwide basis.


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