1. Design an integrated brand development communication programme for Taris that incorporates name, logo, symbols, and colour. If you cannot draw a label, just describe it, like brand name, background colour, other brand elements, etc.
The name of the new Taris brand should communicate both the characteristics of the oil and its health benefits, while being easily understandable for the American users. The name “Green Olive” is both simple and reveals the essence of the product. The word “green” in the name implicitly suggests that the product is both natural and supports a healthy lifestyle. The logo of the brand should depict the olive, as the name suggests, and contain very few other elements. The colour combination of the logo and bottles should emphasise green and white, which would help to outline the purity of the product and its natural content.
2. What is the brand promise (positioning)? What should the new brand name mean?
Brand promise is a combination of brand principles that differentiate a product from those of competitors and motivate customers and other stakeholders (Fisher-Buttinger & Vallaster, 2008). Although brand promise is commonly considered equivalent to brand positioning, in fact there are a few differences between the two terms. Thus, brand positioning involves creating a certain line of behaviour or specific attributes that would make a product stand out. Brand positioning is commonly defined in terms of 4Ps of the marketing mix: price, place, promotion and product (Singh, 2010). Brand promise, on the other hand, goes beyond basic attributes, and represents a commitment to deliver value to final customers (Vincent, 2012). Brand positioning and brand promise of the new oil brand should be carefully considered before releasing it into the new U.S. market. Thus, the brand should be priced in the medium-high range, in order to give it a price advantage over mature Italian and Spanish brands, while preserving the image of a high-quality product and retaining relatively high margins. Taris’s oil should be sold through high-end supermarket chains and promoted both in stores and through an endorser, who will help to transfer a positive image to the new brand. Finally, product characteristics should always emphasize quality and natural content. Brand promise should include all the elements of the positioning, however, it should also incorporate the commitment of the company to deliver the best quality at the affordable price, to continuously develop its customer focus and to work on satisfying customer demands.
3. Characterize the target user in the United States for the new olive oil brand. If you don’t know enough about market segments in the United States to answer this, how would you find the information?
Market segmentation involves disaggregation of heterogeneous markets into smaller segments, which possess certain distinctive characteristics. In-depth analysis of customer groups according to several variables helps companies to identify the segment that is likely to respond better to the product offer, therefore this segment or segments are considered a target for the company (O'Guinn, Allen & Semenik, 2009). Market segmentation for Taris should start from clearly identifying the type of users they address: business customers, households or distributors. Since the current strategy of the company suggests that Taris would like to capture a large number of consumers and to create a strong brand recognition, which would hardly be possible by promoting the product to the distributors or business customers. Household users can be further subdivided based on their demographics, lifestyle, purchase behaviour and patterns. The U.S. market is particularly varied in terms of demographic patterns due to the high level of ethnical and cultural diversity of the United States. This fact represents both a major challenge for the company and a great opportunity, since for some of the U.S. users olive oil has been an integral part of the diet for generations, while the others have not yet used olive oil extensively. These emergent users represent the most promising segment, as they have not yet developed a strong commitment to the established Italian or Spanish brands and are willing to try new products. Prices below those of the competing established brands allow Taris to target this lucrative segment of emerging users, therefore it should be the focus of the company. Lifestyle patterns strongly affect the market of extra virgin olive oil. With the increasing importance of a healthy diet and rising health concerns, it will be relatively easy for Taris to find the market for its products. In order to differentiate from competitors, the emphasis of the company should be on middle-class households, where olive oil was not traditionally used due to high prices. Lower cost of high quality Taris olive oil can appeal to families, in particular to women, who are both concerned for the health of their families, and are usually constrained by the relatively tight budget.
While it is possible to identify the general characteristics of customer segments, Taris needs to get more precise information on the validity of the abovementioned assumptions and on the potential of each segment. Some of the information is available publicly, in particular the demographic composition of the U.S. regions and some of the consumer purchasing patterns. However, more specific information can be only obtained through own research. In this case, Taris may invest in a market research conducted by a specialized agency that already possesses the basic knowledge about the market. Alternatively, it is possible for the company to develop an agreement with one of the supermarket chains and to use store data in order to explore the potential of the new product in the U.S. market.
4. Explain how Pinar should incorporate other brand building tools-sales promotion, public relations, press program, sponsorship or social cause marketing?
Brand building tools are essential for creating a strong brand and building customer loyalty. In particular, the first few months are critical to generate brand awareness and to attract new clients. Therefore, Pinar should invest heavily in developing sales promotions in cooperation with the supermarket chain selected as a distributor. Moreover, the benefits of using an endorser can be only fully utilized by obtaining high media exposure and by developing press releases that could feature the endorser.
The family and health orientation of the product can be reinforced by sponsorships and social cause marketing. Thus, the company could donate a certain part of the profit from every bottle to a cancer research centre. In this way, Taris will be able to generate a positive image of its brand, implicitly suggest the benefits of extra virgin olive oil in cancer prevention, as well as to encourage people to buy more of the oil by giving them an additional incentive to select their brand.
5. Should the new Taris brand use a celebrity endorser? Who or what type of a person?
The personality of an endorser can create a positive image around the product and to help overcoming the problem of limited brand recognition (Batra, Myers & Aaker, 2006). The endorser should be easily recognized in the target market, the United States, and should appeal to a wide customer audience. Although a gourmet chef could be an obvious choice for advertising a food item, the company risks to face limited recognition of the endorser among the general public. As the target segment of the company is an average middle-class household, the endorser should be able to communicate healthy lifestyle and family values. An example of the appropriate endorser would be Martha Stewart, who has a very strong recognition in the U.S. and can transfer the image of the brand as both a healthy product and a good value for the money.
6. Given the brand positioning chosen, what retailers should Taris sell its premium olive oil through the United States? Gourmet food stores? Specialty (but not gourmet) food stores? Better quality supermarket chains? Independent food stores?
The key to promoting a product in a new market is the ability to differentiate it from the established competitors. Therefore, selling extra virgin oil by Taris through gourmet stores is unlikely to be successful, as it will be perceived as a cheap and low-quality alternative to the Italian and Spanish brands. Specialty store may be also a suboptimal choice, since the image of a product from Turkey is unlikely to communicate the right message to the customers. Instead, the company can explore the opportunity of selling its product through the better quality supermarket chains. Firstly, cooperation with supermarkets may help the Taris to conduct preliminary market research and to organize the market entry campaign. Additionally, close partner relationships will help the company to control the presence of other competing brands on the store shelves, including both low-cost store brands and high-end Italian and Spanish oils. Moreover, families, the main target customer group identified above, are more likely to do shopping in supermarkets, therefore high-quality supermarkets may be the most appropriate interface with clients.
Taris could also exploit the opportunity of selling its oil through independent stores, however, this option should be negotiated both with the supermarkets, which are the primary distribution channel for Taris, and explored in a more comprehensive research. While independent stores could transfer a more “neighbourhood” feeling to the brand, thus communicating trust, and could help to increase prices and margins, such distribution channel entails a relatively high risk and is unlikely to generate high volumes. Moreover, it will be hard to organize an entry campaign using independent stores due to the complexity of coordination and the lack of a unique store image and reputation.
7. What is the reasonable timetable for Taris to achieve sufficient brand recognition and preference to gain 5% market share in the U.S. premium-price, virgin olive oil market?
It is hard to predict the way Taris olive oil will be accepted in the U.S. market and when it will be able to gain a 5% market share. It will depend not only on the efforts of Taris marketing campaigns, but also on the cooperation of local partners, such as supermarkets and advertising agencies, as well as on the reaction of competitors. Rough estimations of the process may suggest that it should take Taris at least 6 months to conduct an extensive market research in the U.S., to find the right endorser and the most appropriate distribution partner. It will take the company at least another 6 months to develop an proper marketing campaign, to prepare promotion materials and to negotiate with advertising agencies. A three month campaign followed by a year of milder advertising should be sufficient to gain a 5% share in the market, since the industry is not very dynamic and it may take some time for the competitors to respond. Moreover, the niche position of Taris in the oil market, which allows it to target a wider range of customers and to offer products at a lower price, helps the company to gain many new clients.
In case of an aggressive promotion campaigns, the immediate sales should be quite significant, however, at this point it will be crucial to sustain the result. Therefore, it will be essential to start gaining customer loyalty and to develop a strong brand image. At this moment, the endorser can play a crucial role in sustaining the market share and in maintain the high level of brand awareness and attachment.
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