National FMCG Market Entry
A New Zealand company, Sealord, wanted to enter the Australian Canned Tuna Seafood Market.
The situation -
Sealord, a New Zealand canned seafood company wanted to enter the Australian Canned Tuna Seaford Market against strong entrenched competitors’. The company was clearly the market leader in New Zealand but their product was not sold in Australia.
How Solutions Marketing helped -
- Analysed consumer buying profiles
- Organised a blind product evaluation with consumers
- Conducted focus groups to assess the suitability of the New Zealand advertising and packaging in the Australian market
- Presented findings and conducted a strategic planning session with company executives to develop a market entry plan
Strategic recommendations -
- Upgrading the product packaging, delaying the introduction of the ‘Lite’ variant and adopting a unique, locally developed Australian advertising campaign.
- No product changes were recommended because most of the company’s product flavours won their ‘blind’ taste test, with the remaining variants recording parity performance. In addition, there was less water in the tin in a key variant meaning better customer value which should be dramatized in advertising.
- A key recommendation was to convey these unique benefits in a locally developed, strong yet humorous advertising campaign, using a well known and well-loved personality connected with the fishing industry.
- Tracking research was also recommended to gauge brand awareness and acceptance.
The results -
Our advice on advertising and packaging was not followed on the basis of cost and an unsuitable NZ ad campaign was used with lightweight promotion. Our quantitative tracking research showed poor brand and advertising awareness, trial and repeat buying, despite impressive initial distribution results.
After only two years the company has retreated from the Australian Canned Seafood Market, but remains a strong competitor in the Frozen Seafood Market