Muhammad Ariff MKTG 1001C3284521

Muhammad Ariff MKTG 1001c3284521

Muhammad Ariff Fauzi

C3284521

MKTG 1001

Tuesday 12-2pm

Marketing Report on Hello Fresh

Table of Content

Introduction………………………………………………………………………………………………………………………1
The Core Marketing Concepts………………………………….………………………………………………….…….2
Markets and Target Market segment………………………………….……………………………………….2
Customer Profile……………………………………………………….………………………………………………….2
Needs, Wants and Demands…………………………………………….………………………………………….2
Marketing Offering……………………………………………………………………………………………………….2
Value and Satisfaction………………………………………………………………………………………………….2
Exchanges, Transactions and Relationships…………………………………………………………………...2
The Marketing Mix……………………………………..…………………………………………………………………….3
Product……………………………………………………………………………………………………………………….4
Price…………………………………………………………………………………………………………………………….
Place………………………………………………………………………………………………………………………….
Promotion…………………………………………………………………………………………………………………
People…………………………………………………………………………………………………………………….
Process……………………………………………………………………………………………………………………….
Physical Evidence………………………………………………………………………………………………………
Conclusion………………………………………………………………………………………………………………………….
References list (APA)…………………………………………………………………….……………………………………

Introduction

Hello Fresh Australia,is one of the competitors in Australia in Healthy food industry. Hello Fresh was founded by Dominik and Thomas, and a merry band of Hello Freshers that wanted to change peoples eating lifestyles (HelloFresh website). Industry revenue is predictable to increase by an annualised 14.2% over the last five years 2017-18, to reach $3.1 billion for online marketing (IBIS world). This report will provide a comprehensive situational analysis of HelloFresh with focus on their ‘family plan’ range.

First, the current market and customer situations will be assessed to identify the company’s target markets using the STP framework (Armstrong, Adam, Denize and Kotler, 2015) and the consumer’s buying behaviours within the industry. Second, the report will report on the marketing mix which contains the product, price, place, promotion, people, process, and physical evidence (Armstrong et. Al., 2015) to gain an insight into the strategies used by HelloFresh to describe the different kinds of choices HelloFreshhas make in the whole process of bringing the product or service to market. Third, evaluation of the competitive situation within the furniture industry will outline a comparative analysis of some of HelloFresh biggest rivals in the industry. The report will then address the microenvironment influences that affect the profitability of the business or present opportunities.

The Core Marketing Concept
Markets and Target market segment

Market is the set of potential buyers (Armstrong et. Al., 2015). A market segment is a specific population who share one or more common characteristics, lumped together for marketing purposes.Marketing specialists approach each segment in a different way, after fully understanding the needs, lifestyles, demographics and personality of the target consumer(Armstrong et. Al., 2015).Rather than targeting everyone in their promotional strategy, HelloFresh may opt to target a specific group of consumers with similar characteristics, such as families with a healthy diet option. HelloFresh may also target the people with a special dietary need such as vegans anddiabetics

2.2. Customer Profile

Customer profiling is “a way to create a portrait of the customers to help make the company’s design decisions concerning the services” (Experience UX).

Based on the geographical variables, HelloFresh is a pretty well known company that they have offices on 3 continents in different countries such as USA with 81 openings, United Kingdom, Germany, Benelux, Australia, Canada and Switzerland as it shows on HelloFresh website (HelloFresh.com.au)

Based on the demographic variables, the family plan by HelloFresh is targeted to people of age 15 and above which includes boys and girls. This family plan is also targeted specifically to a family who is committed to eating healthy. Obviously, customers with low income could afford this family plan as the product offered is very cheap. This plan is also targeted to every nationality.

Based on the psychographic variables, the lower class of socioeconomic status could afford the family plan offered by HelloFresh. The values

2.3. Need, Wants and Demand

Needs are important to the serious outcome of the task (Moreire, D. 2009). In this case for an example, a package of a meal must be on time and the ingredients must be fresh. This shows that HelloFresh satisfies customers needs by psychological needs.

Moreira, Derrick. Supply & Demand Chain Executive; Fort Atkinson Vol. 10, Iss. 3, (Jun/Jul 2009): 12-13.

Wants are the form taken by human needs and are shaped by culture and individual personality(Armstrong et. Al., 2015). HelloFresh has developed a meal plan that satisfy the Australian wants because the price is very convenience for people.

According to Moreire, demand is not just management involve, it is hard work as it needs the willingness of the customers to change it. HelloFresh tries to keep up with the level of demand of its customers buy sourcing fresh and good quality ingredients for its very convenience price (Moreire, D. 2009).

2.4. Marketing Offering

Marketing offering is by way of the company giving value and satisfaction to customers..

2.5. Value and Satisfaction

Customer value is measured by the difference between the values which customers gain in owning and using a product and the corresponding costs associated with obtaining the product (Armstrong ET. Al, 2015)Customers’ satisfaction is derived from the value added involved such as how the products are delivered to customers, affordable price rates, healthy food which is good for psychological, easy to prep and flexible subscription which allows the customers to cancel their subscriptions.

To customers value is considered positive if the customers at home to receive the packages otherwise the stuff will be stolen or stamp again and resend to post office. Other than that, customers won’t know how fresh the ingredient are until the have receive the product itself. Finally, in preparing the food customers need time to read true ingredients and prepare the meal.

2.6.Exchanges, Transactions and Relationships

Exchange is the act of gaining a desired object from someone by presenting something in return. In this report, HelloFresh is exchanging their products for cash for the customers which involves two parties.

A transaction is marketing’s unit of measurement. It is consisting of a trade of value between two parties which must state which parties is giving and gaining.

Relationship marketing is the process of creating, maintaining and enhancing strong, value-laden relationship with customers and other stakeholders. Building customer relationship is very important to build that sense of connection with the customers. According to Zineldin and Philipson 2007, relationship marketing can pay off if customers has a long-term perspective, therefore when they change suppliers it could mean some serious cost to the company.

Zineldin, Mosad; Philipson, Sarah. The Journal of Consumer Marketing; Santa Barbara Vol. 24, Iss. 4, (2007): 229-241.

The Marketing Mix

The Marketing Mix is the set of controllable, tactical marketing tools that the company blends to produce the response it wants in the target market (Armstrong ET. Al, 2015).

3.1. Product

A family plan from HelloFresh consists of different ingredients. HelloFresh also supplies recipes depending on how the customers made the purchase. HelloFresh also delivers the packages to the customers houses as a service. According to Armstrong et. al. 2015, there are three levels of core product which are core product, actual product, and augmented product. In this case, the core product is transportation of the packages. On the other hand, actual products is Base on the types of consumer products, HelloFresh customers are categorised as convenience.

3.2. Price

Internationally prices vary slightly. Within Australia, A family plan from HelloFresh cost $9.16 per serving for 3 recipes per week. HelloFresh uses the penetration pricing strategy especially the family plan it is currently at $6.25 per serving as the product is still new. This will pull the customers attention.

3.3. Place

HelloFresh has offices located in nine different countries which is USA, United Kingdom, Germany, Benelux, Australia, Canada, and Switzerland. HelloFresh deliver to about 25 areas in Australia.

3.4. Promotion

3.5. People

3.6. Process

3.7. Physical Evidence

Conclusion

References list (APA)