Question 1 (a): Consumer Perceptions driving Marketing Strategy (50 marks). Using your knowledge of the principles that influence consumers’ perception and interpretation of the world, explain how Tim Tam marketing strategy has created a perception of quality in the minds of the consumer. (20 marks)
According to Schiffman et al. (2014, pp. 174-175), the perception of quality of a product is influenced by cues that are either intrinsic or extrinsic to the product. Intrinsic qualities include the physical characteristic of the product such as size, flavour, colour and aroma. Based on Tim Tam’s outer packaging, the Tim Tam logo is located at the top of the packaging. Dong & Gleim (2018, p. 29) explain that designing the brand logo at the higher position gives the impression of a more powerful brand, and thus incites more favourable impressions towards the product and its quality.
Meanwhile, Tim Tam’s extrinsic cues include price, store image, service environment, brand image and promotional messages (Schiffman et al. 2014, p. 175). The first extrinsic cue to be discussed is price. Tim Tam is a chocolate biscuit and belongs to the same product categories such as Oreos and Cadbury Fingers. However, its observed that Woolworths Australia (n.d.) retails Tim Tams at a significantly higher price at A$ 4.19 as compared to Oreos and Cadbury fingers at A$ 2.00 and A$ 2.80 respectively. Baishya & Kakati (2019, p. 40) explain that the introduction of a higher price above the upper limit of an acceptable price range results in a consumer perception that the product is of a superior quality and value. The higher the perceived value of a product, the greater the willingness to buy (Baishya & Kakati 2019, p. 41).
The second extrinsic cue to be discussed is the brand image. Arnott’s is the parent organization of Tim Tam (Arnott’s 2019). The company has been specialized in baked confectionaries ranging from biscuits, crackers, and snacks with over 150 years in operation and is exclusively produced in Australia (Arnott’s 2019). In addition, the company is well-known for competing based on product quality instead of a cost advantage strategy as they use high quality ingredients (Arnott’s 2019). Therefore, the brand image projected by this organization is the prioritization of product quality across their product lines (Arnott’s 2019). Also, from a consumer’s perspective, international customers will assume that the product (Tim Tam) will have a higher perceived value and quality because it is an imported good (Kim et al. 2015, p. 390). Meanwhile, Cadbury and Oreo, which are owned by their parent organization Mondelez International, are developed to compete based on a mass production concept with competitive cost advantages strategies (Mondelez International 2019). These two brands carry the image of being affordable and easily accessible throughout the world, so they are not considered exclusive to any markets nor very high in quality in the eyes of consumers (Kim et al. 2015, p. 390).
The third extrinsic cue to be discussed is promotional messages. Hammond (2012) reports that Tim Tam targets their promotional messages using personalized advertising or otherwise known as narrowcasting. Narrowcasting is defined as a marketing method that allows marketers to develop and deliver more customised messages to increasingly smaller market segments on an ongoing basis (Schiffman et al. 2014, p. 135). In the “Truly, Madly Tim Tam” campaign, marketers of Tim Tam first identify lovers of Tim Tam products based on the people who “Liked” an orchard event online on Facebook. Later, the company creates an alternate version of the advertisement with people’s names in it and posts it onto their customer’s Facebook wall (Hammond 2012). In contrast, Cadbury and Oreo focus on broadcasting where their advertisements are directed to the mass media such as radio, television and broadband services. Personalized messages can give consumers the impression that they are special and are therefore purchasing a product which is more exclusive and limited. Exclusivity can give the perception of higher product quality because consumers assume that production of the product is increasingly well monitored (Hammond 2012).
Question 1 (b): Consumer Perceptions driving Marketing Strategy: Packaging
With reference to TIM TAM, comment particularly on the packaging, describing the quality perceptions of the product that are communicated by the packaging (20 marks) Compare and contrast your (students’) examples of packaging with each other and the Zealong packaging (10 marks)
Based on Tim Tam’s packaging, it can be observed that the main colour theme used is chocolate brown. The chocolate brown colour allows consumers to easily identify the food product as something that is related to chocolate. Kimbarovsy (2018) notes that marketers who give realistic expectations to their consumer can increase their willingness to purchase a product. In addition, Tim Tam has included a realistic picture of their chocolate biscuit to allow consumers to envision what the product looks like. While it is normal for most brands to edit their food product pictures to make them look more attractive, dramatically changing its image will give consumers false expectations that cannot be met by the producer, causing them to be unsatisfied. In comparison, Zealong’s packaging communicates what they are selling in a more subtle way with a small green lead logo above its brand name. Consumers who are not familiar with the product nor brand will not be able to identify what product it is at first glance.
Secondly, marketers also highlight that the fonts used in packaging should be legible, bold and easily identified. The name of the product “Tim Tam” is printed in a bold and large font on the packaging of the product. The font size takes up a considerable amount of space – more than 60% of the packaging itself. The advantage to this large font size is that it commands the attention of the consumer. Consumers in average spend about two thirds of a second looking at a product when they are browsing in aisles, so it is important that the brand name is communicated easily to the customer within the short time span. In addition, its observed that Tim Tam uses the contrast strategy in their font placement where their font is white in colour as compared to the darker brown background (Arnott’s 2019). Schiffman et al. (2014, p. 157) note that contrast allow a degree of differentiation between the figure and ground and is therefore able to grab the attention of the consumer. In comparison, the Zealong brand uses a similar strategy where their brand name font is in white while the background is black in colour to achieve high contrast.
Thirdly, while aesthetics in packaging captures the attention of a consumer, the packaging should also be usable and easily opened. As the product involved is chocolate biscuits, the material used must be rigid and sturdy enough to prevent the biscuits from being crushed before they reach the consumer. Therefore, Arnott’s uses a plastic tray design that can slide out when the consumer opens one end of the packaging (Arnott’s 2019). Plastic is also effective in preventing the chocolate from sticking onto the tray and creating a messy presentation to the consumer (Celentano 2018). However, while Tim Tams are significantly more expensive compared to products such as Cadbury fingers and Oreos, they are still not considered premium products in their product category. Therefore, the use of single use and unseal-able plastic packaging communicates this expectation to the consumer. In contrast, Zealong is a premium tea which retails to an exclusive market. Therefore, their packaging communicates this expectation by going beyond the importance of practicality and focuses highly on aesthetics. As shown in the photograph, Zealong tea is sold in metal tins that are fitted into another cardboard box instead of regular plastic or paper packs.
Lastly, quality food packaging also requires the use of the correct labels, instructions and nutritional factors. For example, food product labels are required by law include the name of the product, the manufacturer’s name and address, the weight, the ingredients, the calorie count, the total fat, cholesterol, protein and carbohydrate count and the presence of any artificial flavours or colouring. In addition, the packaging should also convey the expiration date and manufacturing date as mandated by the Malaysian Food Regulations 1985. Failure to comply can reduce consumer trust in the product as well as have the license for operation revoked by local authorities. In addition, if the imported item is sold in Malaysia the labels can be in Bahasa Malaysia or English. In contrast, Zealong is not sold in Malaysia and has labels that are exclusively in English.
Question 2 (50 marks)
Find three ads that contain symbolism. Examine the symbols and discuss the meaning the symbols convey. Identify the different types of signs used in the ads and the product qualities being communicated by each.
The use of symbolism in advertising is related to the abstract use of arts to attract consumer’s attraction and convey certain perceptions, meanings and messages associated to a particular brand or product. Some brands or products can convey a certain lifestyle that is desired by a consumer. For example, an advertisement showing camping gear or an SUV can convey the message of a desire for a rugged lifestyle. Such symbols will command the attention of people who favour outdoor activities and the wilderness. In addition, symbolism is also a powerful tool in communicating the values of a brand. In this question, I would like to discuss three concepts of different advertisements.
The first advertisement is from SK-II where a famous Japanese ballerina by the name of Misa Kuranaga explains the limitations of her physical stature as an Asian in the art of professional ballet. In the advertisement, she says that her narrow hips will limit the range of her movements, her facial features are too flat to show emotion, and that her petite figure puts her at a disadvantage in standing out in a performance (SK-II 2015). However, she notes that her DNA dictates that she shouldn’t allow the limitations of her physical stature to limit the full potential of her career. She has become the first Asian ever to be appointed as a principal ballerina at the Boston Ballet. While the advertisement by SK-II doesn’t even show the product, the symbolic message conveyed in the advertisement is that people have the potential to change their destiny if they choose and put in effort to do so. The advertisement conveys that SK-II beauty products allow women to become empowered through confidence in their beauty to change their destiny.
The second advertisement is by Apple which features the new iPhone using a comparative advertising strategy. Comparative advertisements are defined as advertisements that make relative judgements about the advantages of their brand over their competitors (Yucel & Kramer 2018, p. 198). Advertisers may depict consumers who use their product as happier, healthier or better off than the consumers who use their competitor products. According to research, competitive individuals who value power, luxury and influence were more likely to respond positively to comparative advertisements. In Apple’s case, the company shows two columns labelled ‘your phone’ and ‘iPhone’ (Apple 2018). A man runs past the two columns across the screen (Apple 2018). In the ‘your phone’ section, the man appears to be jogging but when he reaches the ‘iPhone’ column he disappears within a blink of an eye (Apple 2018). The symbolic message behind this advertisement is that iPhones are significantly faster than other smartphones within the market, despite the iPhone being absent from the advertisement.
The third advertisement to be discussed is by the premium chocolatier, Godiva. In this advertisement, the video shows a woman chewing the Godiva chocolate in a field of flowers, riding a horse and wearing long beautiful gowns (Godiva 2017). The theory behind this advertisement is grouping which can be defined as the tendency of individuals to group stimuli automatically so that they form a unified impression or picture (Schiffman et al. 2014, p. 163). Grouping is used by marketers to imply certain meanings to their produtcs. In Godiva’s case, the luxurious settings of riding a horse in a beautiful beach implies living to the best of life with a hedonistic lifestyle. Meanwhile, the field of flowers imply a life of romance and love, while the beautiful gowns signify wealth and beauty. Thus, from the advertisement, consumers will know that the Godiva brand caters to the high class and is associated to a life of comfort and ease.
Written by:
Sak Jeng Mun (5506487)
Lin Yi Wei (5586483)
Li Yunzhe (5674268)
Huang Lei (5930571)
References
Apple 2018, Switch To iPhone – Commercial by Apple, online video, 19 October, Apple, accessed 16/5/2019, <https://www.youtube.com/watch?v=kQcq3rpne78>
Arnott’s 2019, Our Products, accessed 14/5/2019, <https://www.arnotts.com/products/>
Baishya, S & Kakati, M 2019, ‘Consumers’ Perception of Quality and Value Under Different Price Ranges and Price Positions Within a Product Line: A Study of the Indian Passenger Car Market’, IUP Journal of Marketing Management, vol. 18, no. 1, pp. 39-76, accessed 14/5/2019, <https://search-ebscohost-com.ezproxy.uow.edu.au/login.aspx?direct=true&db=edb&AN=134816724&site=eds-live>.
Celentano, D 2018, ‘Tips for Designing Great Food Packaging’, small business, 17 December, accessed 14/5/2019, <https://www.thebalancesmb.com/food-packaging-marketing-tips-1326308>
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Godiva 2017, New GODIVA Masterpieces Chocolate TV Commercial, online video, 22 November, Godiva, accessed 16/5/2019, <https://www.youtube.com/watch?v=l-COuzsEP9k>
Greenblat, E 2013, ‘Secret strategy to keep Tim Tams tip top’, The Sydney Morning Herald, 25 July, accessed 14/5/2019, <https://www.smh.com.au/business/secret-strategy-to-keep-tim-tams-tip-top-20130725-2qkvy.html>
Hammond, M 2012, ‘Tim Tam campaign highlights merits of personalised ads’, Smart Company, 25 May, accessed 14/5/2019, <https://www.smartcompany.com.au/startupsmart/news/local/tim-tam-campaign-highlights-merits-of-personalised-ads/>
Kim, SJ, Choi, YK, Kim, KH & Liu, H 2015, ‘Country of origin and brand image influences on perceptions of online game quality’, Journal of Consumer Behaviour, vol. 14, no. 6, pp. 389–398, accessed 14/5/2019, <https://search-ebscohost-com.ezproxy.uow.edu.au/login.aspx?direct=true&db=pbh&AN=111509323&site=eds-live>.
Kimbarovsky, A 2018, ‘6 Proven Tips for Successful Food Packaging’, crowdspring, 18 April, accessed 14/5/2019, <https://www.crowdspring.com/blog/successful-food-packaging/>
SK-II 2015, SK-II #changedestiny stories – Beyond the Limits of DNA with Misa Kuranaga, online video, 14 January, SK-II, accessed 16/5/2019, <https://www.youtube.com/watch?v=R6HDugp9msQ>
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