Market Industry: Sauces And Condiments

Muckrach Lodge Limited is a company that functions a lodge hotel and restaurant in the highlands of Scotland in britain. Muckrach became a hotel in the 1960. The current owners however ventured in the production of a variety of table and preparing food sauces. This record is targeted at providing a brand and branding technique for the business by focusing on one of the sauces, the chilli sauce called No. 17 at the moment.

The first section of the report provided a market research of the sauce and condiment industry in britain. The results in the analysis highlights the current trends on the market, the competitor activities and predictions for the industry. Movements include customers upsurge in home cooking anticipated to slow recovery of the recession and the progress of the chilli sauce category.

The second section highlighted brand identification, brand awareness, brand equity and brand positioning. These branding ideas follow up a brandname building strategy. The Customer Based Brand Collateral (CBBE) pyramid discussed how a product can attain brand collateral by reaching the optimum which is brand resonance, emphasising on the partnership a brandname should form using its customer to finally attain brand loyalty

The third section uses the market research and branding strategies to develop a brand for the chilli sauce and brand strategy advised for the company. The name HYLANDISH adaptable chilli sauce that was chosen depicts the brand personal information of the product, expressing host to production and features of the chilli sauce. Positioning the brand by features and benefits associated with product was designated.

In bottom line, the report draws findings from the marketplace evaluation and branding ways of provide tips for the company. Tips include: Smaller bottling and price, increase consciousness, advertising with superstar chefs and supermarket sales.

INTRODUCTION

The relationship between a product or service and its intended customer is immensely changing due to the increasing awareness, attachment and values put on products purchased. For most companies, the customer takes on the most essential part in the development of a product. In other to go away the intended meaning of a product to customers as well as be considered a market head, a good brand image must be created.

A sauce and condiment company are producing a selection of sauces and intend to push it into the market. Sauce includes: chutney sauce, chilli sauce, spicy ketchup, non-spicy ketchup. The business is going to be referred to as the "client" and is herewith searching for a good brand image, a branding strategy which would be aimed to a good release position for their products. This survey is targeted at providing the requirements needed by the client, using the known brand ideas and strategies to best place the chilli sauce product in an appropriate position.

1. 1 THE CLIENT

A new creation line blessed out the kitchens of Muckrach Lodge Hotel & Restaurant, located in the highlands of Scotland. The hotel is held by Muckrach limited under functions run by Andy Picheta and Rebecca Ferrand. The duo actually are in charge of the production of the number of sauces as well as the hotel's restaurant services. (Muckrach, 2007)

The client however decided to project into sauces production based on the nice reviews from other lodging customers, this resulted in their contribution in the BBC good food show. The owners believe that they may have tapped into the holy grail of preparing by producing flexible sauces. A functional sauce has the capacity to be utilized as sauce on its own and in preparing food as well.

There's a long Scottish heritage attached to the company and your client believes in the use of fresh products in their dish making process and evidently in their imminent sauces creation (Muckrach, 2007)

1. 2 CHILLI SAUCE

Amongst all of the sauces produced by the client, the chilli sauce is designed to be the launching front man. The sauce in the beginning known as as No. 17 is made by the best possible freshest elements which includes garlic, lemongrass, ginger and 17 fresh chillies. That is created by fresh traditional methods and uses vinegar and sweets as preservatives. The expense of development is 1. 20 per bottle and therefore commands a costlier offering cost at 4. 50 at retail and 3. 50 a wholesale when compared with other sauces in the united kingdom sauces and condiment market.

The chilli sauce boasts of a high anti-oxidant content, which shows medical benefits supported with the use. However scheduled to cash constraints, the chilli sauce distributed for testing at this time amounts to 700 and also have received good feedbacks without a website or a label. Your client intends to change 20, 000- 30, 000 bottles by the finish of the entire year. At this time, there would be no compromise on price as your client is eager to compete predicated on differentiation plus they believe the product is worth the purchase price. Providing ways to communicate that notion to customers through branding is which means task.

This next section of the statement provide research of the united kingdom sauce and condiments market, further portions would supply the branding strategies with the information of the marketplace research and the some branding theories.

MARKET ANALYSIS

Globally there has been an upsurge in the quantity of sauces and condiments manufacturers, from the existing players on the market to supermarket product labels and restaurant owners. The UK market significantly is in fact accrued to the surge, this statement lays emphasis on the united kingdom sauce and condiments market because the client intends for his product to be competitive within the united kingdom market at the original start.

2. 1 MARKET SIZE

The sauce and condiments market has increased in proportions and value, known as sauce and food seasoning industry by (keynote, 2013). This value increase is based on the transition in consumer diet and the result of the recession. However growth on the 5 12 months period since 2008 has experienced a 12. 4% development (Keynote, 2013) and baking sauce accounting for the most part of the progress.

2. 2 Competition ANALYSIS

The market is dominated by major competition such as Heinz, HP foods, and Leading foods group ltd, mars UK Ltd, Nando's group holdings Ltd and McCormick (UK) plc. (Passport, 2013). These rivals lead in various sauce categories and also have the private label small players to compete with, private brands include Asda, Tesco, supermarket brands and other in-house restaurant sauces.

Sharwood and Loyd grossman which can be products of the Top foods group Ltd constitutes to make the leading company in the baking sauces category with a higher share of 23%, while Dalmio by Mars Ltd aided the company to retain the brand leading position with a value share of 12%, however the company is into major advertising and marketing hence acquiring that top leading place. Despite the loss of momentum by the Heinz Company with the growing competition by private product labels, they still seem to hold the key position in desk sauces. HP foods Holdings td, maker of Amoy experienced development in capitalising on the eat-in craze and form the growing acceptance of intake of continental food.

2. 3 TRENDS

The benefits of sachets and small pouches have provided a fresh sensation by customers as they think it is attractive and can try the sauces without problems of buying a full bottle without assurance of the flavour, in the aspects of un-tested brands. The understanding of paying cheaper because of this new packaging methods also in the long run constitutes to more demand for the merchandise. This method is important in the baking sauce category.

The recession that strike the uk in the previous years have observed a slow recovery and therefore customers have switched lifestyles and now prefer to consume at home, hereby investing in purchasing cooking food sauces increasing the sales of sauces and condiments by 5%. Hence companies now invest in innovative presentation and a assorted types of sauces and flavours.

The table sauce however noticed a drop in talk about value by the leading players as own product labels are applying innovativeness in products and offering reductions in prices which is leading to high stresses on promotions to stay competitive (Keynote, 2013). Promotion has been seen to experiment with a major role in the sales of sauces and condiments as customers spend the majority of their eating time at home. The chilli sauce category is experiencing major development as consumers in the UK are shifting more into continental dishes and are appreciating spicy foods. The progress increased by 9% in 2012 and shows a 51% increase in size sales over 5years (Passport, 2013)

Residents in the united kingdom have active schedules and are satisfactory to sauces that provide them with the littlest of your energy to spend in your kitchen, with this tendency the stir-fry is acquiring large level of popularity which is driving the sales of moist cooking sauces. Pasta sauces also gained value sales expansion in 2012, with the key brand, Dolmio by Mars Ltd. The expansion is however undermined by the amount of promotion performed in this category edging out smaller players.

2. 4 PREDICTIONS

The lifestyle of sauces and condiments consumers is expected not to have a significant change due to prospect of the economical situation in the UK, meaning consumers would still remain in their homes doing more cooking food than eating out, which in-turn should visit a upward progress of the industry. Forecast predict a 3% expansion in volume sales but a shift in the kind of sauces sold, because of the switch into smaller plans.

Soy and chilli founded sauces are expected to have the strongest growth of 6% and 7% respectively reflecting the growing utilization of foreign cuisines in the UK. Online retailing might see some growth but additionally it is predicted that supermarkets and hyper market segments would be the main distribution range and customers would purchase more from them. Special offers would continue to drive growth of sales and companies would yield more growth if they spend money on advertising and promotion of products as well as sell cheaper or differentiated products (Passport, 2013)

BRANDING STRATEGIES

The market research demonstrates there are already established players in the industry and customer know about brands but they are also acceptable to new improvements. However for the chilli sauce product to compete effectively, it really needs a strong brand which would provide a difference from the other available sauces. The ideas behind creating a brand would be mentioned in this section.

3. 1 BRAND

The trusted definition of brand by the North american Marketing Connection emphasises that whatever brand form a product takes, varieties including, design, name, company logo, sign of a mixture of all or some, that form must definitely provide a distinguishable characteristic from other competitors (Keller et al, 2012). Which implies that the brand must have a distinguishable identity. The difference between a brand and an unbranded product is the associations an individual must the top quality one, predicated on either the performance of the merchandise or the feelings it generates. This shows the essentiality of branding something to attain market success (Kapferer, 2008)

A brand should have a tendency to conjure three different attracts a customer, logical, psychological and sensual (De Chernatony et al, 2011) to set-up an impression and connection with the customer. Rational appeal entails the physicality of the merchandise, emotional charm stirs up thoughts about the merchandise for example Toms buy one sneaker give someone to a shoeless person, and finally sensual charm, the emotions the brand causes. For instance Axe enticement brand causes a sensual sense.

3. 2 BRAND IDENTITY

An identity of the brand symbolizes a company's prices and promises of your brand to a person, a business creates a linkage between your brand and the client by creating value propositions (Aaker, 1996)

The identity consists of a primary and a protracted identity, the past shows the brands presence and would should continue to be constant whilst something breaks into different categories or market segments, including the Gillette brand instigates shaving for men. The prolonged identity supplies the brand personality required to express the core identity (Kozak & Baloglu, 2011). An extended id could be slogans employed by a brand, for example Nike "just do it".

3. 3 BRAND Understanding & BRAND IMAGE

Once the brand identity has been created, the brand should be made aware to the audience it intends to advertise to. Consciousness in this context relates to strength of the brands existence in a consumers memory (Keller et al, 2012). It could therefore be assessed by the ability of the buyer to remember the brand in various conditions. Brand awareness is often associated with brand image, a notion in regards to a brand constitutes the image a brand creates to a consumer. The relationship brings about a higher recall rate by the consumer. There are certain conditions that are conversant with creating brand awareness and image as well

Brand name: An essential effect on brand understanding is the name the brand possesses. The ease of pronunciation, spelling and easy to recall plays a essential role. However whether significant or not, it still affects a brand image and consciousness.

Company: the business behind the brand is also essential, as though people know about the company, they become more conversant with the brand. If the business uses its name to advertise the brand, the brand recognition increases.

Advertising: using different solutions to do advertising to produce brand consciousness is a significant boost to a brand image, especially if the adverts are eyesight catching and interesting. For example footlocker uses sensual adverts which interest the youths. Types of advertising could include, publication, Tv set and billboard advertising. Movie star or icon engagement as form of some advertising also enhances brand recognition, usually when folks are from the superstar or icon. It provides some type of connection to the brand.

Promotions, sales & sponsorships: doing some form of promotion and occasions sales develop a buzz in the customer head as customer are often triggered by decrease in prices via sales as well as gaining from promotional offers (Gregory & Johnson, 2013)

Online and Mobile advertising: the upsurge in the online and mobile activities of consumers have created a means of pressing the awareness of brands in to the consumer's behavior. One in 10 consumers have got a cellphone and are connected to the internet almost all the time. Brands that tap into that advertising stream create strong understanding.

Direct Sales: Companies also sell right to customers, either business to business or business to customers create knowing of brands.

Brand Consciousness and image are constituent of brand knowledge, the data of the brand affects customer decision-making process. Relating to (Keller et al, 2012), below are forms in which knowledge impacts consumers.

The brand knowledge offers a learning advantages, because following the primary initiated brand enrollment in the consumer's mind, further attachments compared to that mind-set could be easily assimilated by the buyer.

It also gives the brand a factor advantage, due to the understanding created by the brand, customers have a tendency to add the product in their concern list when the need be obtain an engaged category.

Thirdly, the choice advantage which is influenced by familiarity from the brands, consumers tend to buy brands they are aware of or involve some form of understanding of.

3. 4 BRAND EQUITY

Defined by (Aaker, 1996) "as a couple of investments and/or liabilities linked to a brand or icon that either add or subtract principles provided by the development of a product or a service to a company or a organizations customers". It's the reason why a person would purchase a product over the same product.

Brand equity is built by the brand blocks, known as the customer-based brand equity (CBBE) pyramid. Attaining brand collateral involves reaching the top of the pyramid, which is the brand resonance, firstly four steps are required to be completed in creating a brand plus they consist accordingly; personality, signifying, response and relationships (Keller, 2001). However there are six constructions used to generate the four steps of brand equity creation illustrated in the diagram below.

Figure 1: CBBE PYRAMID (Paulycreative, 2001)

The brand personality requires the brand salience which depicts providing the right knowing of the brand to the client. In itself brand salience is not enough, hence for the brand to acquire so this means to customers, performance and imagery of the brand must be clear in consumers brain, thus establishing tips of parity and differentiations. The 3rd stage involves the client notion about the brand and the thoughts the brand creates towards the client. The pinnacle of the pyramid, the brand resonance which relates to the relationship created to exist with the client denotes the created brand equity. The resonance is characterised by the depth of the relationship the brand shares with its customer, this would stamp a loyalty mark on the client and a deep attachment, and proposal with the brand (Campbell, 2002). As of this level the business should be aware of the kind of relationship created. A negative brand collateral would decrease the brand imagery and belief to customers.

3. 5 BRAND POSITIONING

Positioning involves the way the product is located in your brain of the consumer when compared with other rivals. Kotler & Keller (2006) identified setting as the "act of designing the company's offering and image to occupy a distinctive place in the focuses on market's brain". Positioning categories can be characterised by the next;

Positioning by product features and benefits: in this form, companies can position their product by emphasising on the benefits and capabilities of the product, developing a importance for consumers and a differentiation from competitors

Positioning by price and/or quality: most commonly marketers use price and quality characteristics to thrust for positioning, other ways include high quality for cheaper price in comparison to competitors. The portrayed value of the quality can make customers acknowledge a high price.

Positioning by Request of use: conversing the utilization of the product provide a placement strategy as customers know about their needs and would look for products specific to the purpose of use.

BRANDING IN THE CHILLI SAUCE

Results however from the sauces and condiments industry research in conjunction with the theoretical areas of branding has led to the delivery of the brand name and a branding strategy for the chilli sauce product. Your client is situated in the highlands of Scotland and hence promises freshness, traditional ways of creation by pickling and health advantages. In-other to generate an individuality, a name or symbolic has to depict the client's information, plainly understandable to the consumer (Gunelis, 2013).

Hence the name "HYLANDISH" versatile chilli sauce, produced from the word highland and dish, the highlands where in fact the product is created and denotes that the merchandise as a sauce is also designed for dishes. Highland meals are noted for their traditional fresh content and great style, so the name answers to this is of the brand which is characterised having an identity, distinguishable and moves an information across to designed customers.

However to increase the brands individuality, a slogan is provided to aid in delivering the brand note. The slogan advised for the brand is therefore "nature's surprise to prospects who favor healthy hot and spicy stuff". This communication aims to pass several emails to consumers, characteristics interpretation freshness and traditional methods; healthy, to capitalise that the sauce provides health benefits to consumers. Finally hot, with the increasing expansion of hot sauce use in the united kingdom (Creasy, 2012), it is necessary to stress the category of chilli sauce, either lovely or hot and spicy.

4. 1 CREATING THE BRAND AWARENESS

The client stated financial challenges and however cannot sufficiently spend money on heavy television set and billboard advertising, but can do some other form of advertising like direct sales to customers through their restaurants and some form of campaign by giving free samples with their customers to try at home. This might encourage person to person advertising and a bandwagon result, but this would be based entirely how good the chilli sauce flavor. It is therefore suggested that because the product is going to command reduced price, customers should be aware of the merchandise value.

Food journals and food shows also provide an possibility to show forth how good the product is, the increase of food shows attributed to the increasing level of home food preparation could provide a great opportunity to increase understanding.

4. 2 SETTING UP A BRAND Setting STRATEGY

The client has put a selling price on the merchandise which is almost over fifty percent of the most expensive chilli sauces in supermarkets like Tesco, Asda, Cooperatives, Sainsbury, and food markets. However the client intends to make sales in stores like marks and spencer and Waitrose, and health stores as well. The strategy suggested for positioning a brandname like this HYLANDISH chilli sauce product is suggested that the brand is put by product features and benefits.

CONCLUSION

Branding is highly important for a company's marketing strategy, because customers have increased their bargaining position towards products they purchase. The ideals of a product therefore must be portrayed through the brand created, which means brands must talk efficiently to customers. This can be done through different means like creating a strong brand identity

The market industry of sauces and condiment was analysed and was found that tendencies in consumer behaviour has transformed and amazingly increased the progress rate of the industry. UK residents tend to shift towards cooking at home somewhat than eating dinner out, increasing the baking sauce category of the industry. The climb of continental cuisines consumed by individuals in britain has added to the huge increase of ingestion of spicy foods.

However your competition still favours big players like Heinz, Horsepower and Leading Foods. (Passport, 2013). Keynote (2013) examination however notes that though the market continues to be had by big players, managed label sauce consumption in addition has increased because of the influx of consumers going for cheaper products scheduled to recession.

Brand building was analysed using the CBBE customer structured brand collateral pyramid, to providing understanding to how a brand can be built, the best point resonance on the pyramid supplies the relationship a brandname has with its customers, depicting the loyalty of customers.

From the examination of branding strategies, a brand name was provided for the client and a brandname positioning strategy as well. In conclusion a solid brand must have a good id, ensure that you provide understanding, attain a positive brand collateral and finally position itself rightly to be able to have a competitive advantages.

RECCOMMENDATIONS

Further recommendations to increase the strategy suggested for HYLANDISH. These are discussed below.

Bottling and price: the merchandise offers reduced price and looks to be competitive in market influenced by cheap prices, drawing data from the market evaluation. Manufacturers are choosing to smaller and ground breaking product packaging. The expensive sauce within supermarket will set you back 2. 39/425ml on the average. However the product can compete in the high end sauce market which has a low share on the market and also the medium-low end of the sauce market. Ideas include providing a smaller bottle to be sold at a somewhat cheaper price like 2. 20/195ml and still provide large bottles at the intended price of 4. 50/425ml. In this way the merchandise still maintains the quality of the product and contend on both ends. The logo design and design on the container should depict the actual brand stands for, since involvement in making a decision to purchase a sauce brand is commonly low. The bottle also needs to be transparent enough and plainly readable content as well (Fournier & Avery, 2011)

Celebrity advertising: nominal funds are available for advertising, hence it is suggested that the merchandise should be advertised by giving free samples to celebrity chefs for their utilization during food shows, this would raise the image of the brand.

Sales: the business's idea of marketing to high end supermarkets like Waitrose, and M&S would help the company maintain the high quality product they plan to sell to the public. However predictions from the market analysis perceives that customers would keep carrying out most shopping activities in supermarkets and hypermarkets.

Increase awareness: the business can increase consciousness by developing a website, so that consumers can find out more about the merchandise and capabilities. As brand knowledge provides consumers with a learning benefits, thought and choice gain.

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