Marketing Environment and Strategy of Tassa Samples for Students

Question: Study the Marketing Environment and Strategy of Tassa. Answer: Introduction Sustainable management practice in business refers to the management practices that aim to maintain economic viability and reduce the depletion of resources available for present and future generation. The main focus for sustainable business management practices is Tassal Group Limited. Tassal is a leading producer, processer and supplier of Atlantic Tasmania salmon fish. Some of the management practices that are sustainable used by Tassal encompass environmental management, sustainable business operation and business certification (Heath Brandt Nairn 2006, pp 410-419). Firstly, sustainable business environmental management aims to reduce depletion of resources available for present and future generation. Secondly, business operations that include processing of fish are structured to help in continuous operation and production through the year. Finally, to sustain the business, its operation and its position in the market the company lay down sustainable marketing strategies (Ritchi e 2002, pp 56). The following paper describes sustainable management and marketing strategies for Tassal. Marketing background Tassal group limited is a company that produces Tasmania Atlantic ocean salmon since 1986. Tassal is the leading producer of Atlantic salmon in Tasmania, Australia and employer of over 800 people all who are part of the share chain of salmon delicious Super food. There are different marketing strategies and operation management practices that are used by Tassal with the aim of sustaining business, production, processing facility and environment. To understand operation strategy for Tassal and its sustainable practices, it is quite important to explore the history of Tassal group limited (Hutter Hoffmann 2011, pp. 39-54). History of Tassal Group Limited The history of the Tassal can be traced back to 1986 when the company was opened up a marine site. Over the years Tassal has develop three main hatcheries located in different place across Tasmania in Australia. Tassal company was operating as privately owned company in Australia and as major public company listed on the ASX in November 2003. As part of marketing strategy Tassal has its head office in Hobart and other offices in Huonvile and Margate. Tassals main competitors are Petuna Seafood and Huon aquaculture all which are also situated in Tasmania. Since Tassals inception, Tassal has diversified its products range and are grouped into different brands (Roddy 2010, pg 30). Tassal Group Limited Products Tassal is a producer of fresh, smoked, frozen or canned Tasmanian Atlantic salmon. In addition, Tassal is leading exporter of salmon products through Australia. Some of the products of Tassal are grouped into brand and include Tassal, Tasmanian Smokehouse, De Costi Seafoodsand Superior Gold. Firstly, Tassal sell a range of products that supply customers with proteins. Secondly, De Costi Seafoods is a brand that includes different types of sea foods prepared in canned, frozen or smoked. Thirdly, Tasmanian Smokehouse also sells products that are traditionally smoked. Tasmanian Smokehouse products are sold in different independents retails though Australia. Finally, Superior Gold brand consist of range of products that are prepared from sophisticated smoking techniques (Charles et al 2011, pp 514). Sustainability management practices Tassal as a profound company does not engage only in profitability but also sustainability. In this connection, Tassal is heavily investing in sustainability practices and this involves environmental sustainability, promotion of fish health and good health fish processing practice. Tassal company is a steward of sustainable environmental practice and focus in strategies aiming at sustainable environment. To ensure ecological interaction, Tassal has sophisticated environmental monitoring and modeling programs that assess environmental interaction. Environmental monitoring program enable understanding of Water quality and changes in water quality in field and near field water. Moreover, Tassal conducts many different environmental research programs. Climatic change is also one of the key issues that concerns Tassal to ensure monitoring summer climatic change that is challenging fish growth and survival (Dainora 2010, p. 170). Tassal also strives to have good operations relationships with the communities around its facilities and society in general. To achieve customer relationship strategy, Tassal Limited provides health information to customers using their products. The second part of sustainability that Tassal takes part in is healthy fish farming practice. Tassal is the most developed institution practicing healthy fish farming practice under certification. In addition, Tassal Company has social operation license that determine the operations of the Tassal fish processing facility. Risk mitigation is also part of sustainable practice that ensure there is continuous assessment of risk and the risk likelihood citing the possible prevention measures to be implemented. Finally, sustainability reporting places Tassal Company on the lead throughout food industry (Rossiter Bellman 2005, pp 157-160). Supplier Tasmania Atlantic Salmon that Tassal reared is Salmo salar and was imported from Nova Scotia in Canada during the 1960s. Fertilized eggs were hatched in Gaden hatchery and firstly purchased in 1984. Purchased eggs of Tasmania Salmon marked the beginning of farming for Tasmania salmon. Dover, sea farm is approximately 130km in the vicinity of Hobart and a Wayatinah hatchery was developed at the Central Highlands. Dover is continuously supply Tassal salmon until the present day (Schmidt Eisend 2015, pp 415-428). Supply drivers There are three main divers for Tassal supply of salmon both in domestic market and global market. These supply drivers include world class infrastructure, building biomass and superior products. Firstly, Tassal operate in line the global sustainable practice risk mitigation and its likelihood. To ensure risk mitigation Tassal invest heavily on hatchery and continuously update the hatchery using the current state of art technology such as Rookwood Road Hatchery. In addition, Tassal has a processing facility fitted with the current technology that can support continuous salmon processing (Manternach 2011, p. 26). Secondly, the need for supply of quality products in the markets drives Tassal production and supply of salmon and related products. For the past 5 years Tassal has spent approximately $200m in marine value addition processing facility. All this efforts are to make Tassal producer of quality sustainable product for fish market. Thirdly, building biomass is another driver for production and supply of salmon or seafood to the market. Tassal is experiencing approximately $90m growth in salmon fish for the last five years. Within this fish livestock, there are approximately 3 years classes of salmon fish under Tassal waters (Rossiter Bellman 2005, pp 157-160). Marketing strategy for Tassal Domestic strategy Tassal develop a domestic strategy that aim at increasing per capita consumption of its products and sustainable practices. In this marketing strategy, the following are considered: increase domestic consumption of salmon, global oversupply, domestic volume growth, margin growth and market position. Marketing strategy of Tassal Tasmania salmon is based on the continuous increase of domestic consumption of salmon and salmon product in Australia. Tassals position in supply of salmon and other products to the market though is good, Tassal layout marketing strategy that will ensure that domestic consumption of its product does not fall below oversupply. In addition, Tassal being one of the most consumed brands of the company will be produced at central market position. The main aim of Tassal is to meet salmon demand in most retails within Australia so as to reduce any shortage in the near future (O'Malley Lichrou 2016, pp 37-52). The second component of Tassal marketing strategy encompasses global oversupply of Seafood. Tassal global supply needs to be doubled superseding the current market supply. This implies that Tassal intend to take a strategic position in the global market. To ensure this is achieved, sea transport of salmon has sustainable programs that aim to meet global healthy practices. This healthy practices aim to continuo supply without depleting environment and other resources. According to Hutter Hoffmann (2011, pp. 39-54), global oversupply at as 2011 was between $1.5-2.0 kg margins which are projected to increase by 38% within 10 years period. In domestic market, recent survey conducted by Tassal marketing research department indicates that there is need for domestic volume growth. The main challenge faced by increase in domestic volume is the reduction of price. According to Hosany and Lee (2013, pp 48-68), the domestic volume growth currently is 22%. Therefore the group is changing their focus on branding and product development. Another strategy includes pursuing opportunities for smoked salmon that is currently on demand. Moreover, Tassal has partner with WWF to ensure that supply of salmon is aligned to key retailers and wholesalers within Australia. As a marketing strategy margin growth is also developed to maximize growth of domestic consumption of Tassal products. It is observed that there is continuous fluctuation of salmon price in wholesalers. In addition, there is low retail export price that makes the domestic market the alternative. Even though there is margin erosion in the domestic market, this is still higher than the export margin. Therefore growing of per capita consumption strategy indicates that there will be a good return as compared to exports. Furthermore, oversupply in the global markets makes it not to be the main surplus supply outlet (Roddy 2010, pg 30). Finally, to ensure increase domestic per capita consumption of salmon products, Tassal position itself in the central supply chain of seafood in Australia. This implies that Tassal though is the main producer and supplier of Tasmania Atlantic salmon need to maintain its position and move beyond current position. Some promotional activities and brand awareness also are in place to maximize brand sales and sub-brand market entry (Schmidt Eisend 2015, pp 415-428). Marketing campaigns In order to build strategic proposition with wholesalers and retailers Tassal has strong marketing campaign strategy. The main aim of campaign is to build consumer preference for Tassal brands in the domestic market (Roddy 2010, pg 30). One of the most interesting activities during the campaign is to teach consumers how to eat salmon fish and some of Tassal products such as frozen salmon. It is also quite important to demonstrate to customers that salmon are healthy to consume and that Tassal is involved in sustainable practices. Marketing strategy also has cross-category channels in order to reach all Tassal category cannels. Finally, campaigns are meant to differentiate to customers the different products available in both retail and wholesale around Australia (Belch 2004, Pp 34). New product developments as marketing strategy for Tassal In order to attract more customers or consumers for salmon developing new products ensure diversification of Tassal products. During introduction of the new Tassal brand many advances are made to incorporate salmon into everyday cooking (Rossiter Bellman 2005, pp 157-160). Evaluate market research is used to test the adaptability of the new brand. Another new brand development focuses on diversification of seafood. Usage of seafood as main source of protein in the market will make the Tassal company an innovative brand developer. The move is not to cannibalize salmon sales but to ensure complementary sales. Therefore to achieve this Tassal is selling basket full of seafood (Jones Monieson 2001, p.92). Marketing mix that Tassal Company uses Marketing mix or 4ps is the marketing strategy that many business uses to achieve marketing objectives. As Belch (2012, pp 147- 158) lists the marketing mix, marketing mix consists of 4ps namely: product, price, promotion and place. Product Products of Tassal Company consist of a range of brands developed in line with companys objective, customers taste, and sustainability practice and health recommendations. Unlike Huon Aquaculture Group that which is the main competitor and concentrated on fresh fish, Tassal has range of products such as canned, smoked and frozen fish. There are also similarities in some product sold by Tassal Company and Huon Aquaculture Group such as hog, though Tassal has many value added products. Another Tassal competitor is Petuna Seafood that also major mostly in other seafood contrary to Tassal that produce both seafood and many more salmon fish product (Egan 2011, pp 42-43). Price Pricing of fish and other seafood remain a challenge to fishing industry with Tassal, Huon and Petuna Seafood focusing on domestic market rather than export. According to financial records, Tassal has remained the main supplier of salmon fish and other seafood in the Tasmania market. It has been recently realized that Huon is becoming more profitable than Tassal due to low fish mortalities and good sales strategy in Australia. Prices of salmon fish remain low in the international market affecting all the three players in the fish industry in Tasmania, namely: Huon, Petuna and Tassal. To protect these three competing companies from domestic price fluctuation there is strict quarantine regulation regarding importation of fish in Australia (Rossiter Bellman 2005, pp 157-160). Promotion Tassal as a giant company has a good product promotion strategy that employs advertisements, campaigns, and product promotion. One of Tassals successful product promotion strategies was launch of TV show in September 2012 that was expected to run for three years. During this TV shows viewers could watch how to prepare different dishes of salmon (McNaughton 2008, p. 303-305). The TV show known as Tassal pure Tasmanian salmon was this leading communication tool for Tassal Company. Huon aquaculture on the other side uses avenue such as public offer day as part of company public relation and campaign. During open public offer day the company also takes opportunity to convince customers on Huon as customers preference source of fish (Driesener et al 2004, pp 70-80). Place The main distribution channel for Tassal that begins from the hatchery facility fitted with modern technology at Rookwood Road Hatchery. It is estimated that the hatchery produces more than 10 million molts per year that are then taken to the sea. Tassal has 6 marine units that are used to hold approximately 120 tones of salmon at harvest. After harvest some Tassal fish are taken to processing facility where smoked salmon are processed in value addition stage. The three salmon producing companies are located in Tasmania in Australia. According to Enright (2002, p. 454-55), the three main competing salmon producers have closer distribution channels. Tassal leads fish producing farms supply of salmon and salmon products in retails and wholesalers across Australia and international market. Competitive advantage of Tassal Tassal has three main areas of focus to be competitive in the domestic and global market. The three main areas of focus include sustainability, increase per capita consumption and building brand strength. Firstly, as a key player in the food, fish and sustainable management practices, Tassal focus on building sustainable production, processing and operation that focuses on sustainable management. Secondly, the main marketing strategy of Tassal is to increase per capita consumption of salmon fish. According to Belch and Powell (2009, p.126), to achieve growth strategy most of emphasis is on the domestic market as oppose to export that has low prices. This domestic market strategy is also used by Huon Aquaculture the main competitor of Tassal. Finally, building brand strength is also strategy used by Tassal that is only limited to the company. Tassal has embarks on building new brands and promoting the existing brands. This is to increase customer preference and reduce company weakness es such as high mortality rate of livestock (Roddy 2010, pg 30). Recommendations for improved marketing mix Over the past few years Tassal has been greatly challenged by its main competitor Huon Aquaculture. This indicates that the marketing strategies used by Tassal need some improvement. One of the key areas to be considered for improvement is product promotion and pricing. As part of marketing mix setting products price, Tassal need to consider product demand since its prices are criticized by consumers setting stage for its competitors to be preferred by customers (Lehu 2007, p. 20). Secondly, according to marketing director for Tassal, some of Tassals products have reduced price offer to attract more customers. The remaining product promotion strategy that Tassal need to improve on is the product promotion gifts. This strategy will help build product strength in the market and draw more customers for its products (Dainora 2010, p. 170). Conclusion In conclusion, Tassal remains sustainable business organization in Tasmania, Australia and beyond in production, processing and supply of salmon fish products. The sustainability management practices and marketing strategy that Tassal uses making it continuously produce fish, process, and supply and add value to salmon fish as compared to its main competitors Petuna Seafood and Huon Aquaculture. Supply and distribution of salmon fish products are aided by state of the art technological infrastructure that Tassal uses. Tassal own large fish hatchery and processing facility that produces fish throughout the year in addition to its sustainable management. References Belch, G, Powell, I, 2009, Advertising and Promotion Management: An Integrated Marketing Communication Perspective, McGraw-Hill, Sydney, Australia, p.126 Belch, G, Belch, MA, 2012, Advertising and promotion: AN integrated marketing communication perspective (9th ed.) New York, NY: McGraw- Hill Irwin, pp 147- 158 Belch, G, Belch, M, 2004, Advertising and Promotion: an integrated marketing communications perspective. MacGraw-Hill/Irwin. Pp 34 Charles L, et al, 2011, Essentials of Marketing: Discuss the elements of the promotional mix. Cengage Learning, Retrieved Aug. 26, 2014, pp 514 Dainora, G, 2010, The Marketing Philosophy and Challenges for the New Millennium, Scientific Bulletin Economic Sciences: Marketing, Commerce and Tourism, Vol. 9, no. 15, p. 170 Driesener, C., Paech, S., Romaniuk, J, Sharp, B, 2004, Brand and Advertising Awareness: A Replication and extension of a known empirical generalization, Australasian Marketing Journal, vol. 12, no. 3, pp 70-80 Egan, J, 2011, Marketing Communications, London, Thomson Learning, pp 42-43 Enright, M, 2002, Marketing and Conflicting Dates for its Emergence: Hotchkiss, Bartels, the Fifties School and Alternative Accounts," Journal of Marketing Management, Vol. 18, p. 454-55 Harrell, GD, 2008, Marketing: Connecting with Customers. Chicago Education Press. p.286. Heath, R, Brandt, D, Nairn, A, 2006, Brand relationships: Strengthen by emotion, weakened by attention. Journal of Advertising Research, vol. 46, no 4, pp 410-419. Hosany, S, Lee, W, 2013, Theory and Strategies of Anthropomorphic Brand Characters from Peter Rabbit, Mickey Mouse, and Ronald McDonald, to Hello Kitty. Journal of Marketing Management, vol. 29, no 1/2, pp 48-68 Hutter, K, Hoffmann, S, 2011, Guerrilla marketing: The nature of the concept and propositions for further research. Asian Journal of Marketing, vol. 5, no 2, pp. 39-54. Jones, GB Monieson, DD, 2001, Early Development of the Philosophy of Marketing Thought, In Marketing: Critical Perspectives on Business and Management, Vol. 2, Michael John Baker (ed), London, Routledge, p.92 Lehu, J-M, 2007, Branded Entertainment: Product Placement Brand Strategy in the Entertainment Business, Kogan. Page, p. 20 Manternach, L, 2011, Does your brand have top of mind awareness? Corridor Business Journal, vol. 7, no 52, p. 26 McNaughton, M, 2008, Guerrilla Communication, Visual Consumption, and Consumer Public Relations. Public Relations Review, 34, no 1, p. 303-305. O'Malley, L, Lichrou, M, 2016, Marketing Theory, in Baker, MJ, Hart, S, The Marketing Book, 7th ed., Routledge, Oxon, UK, pp 37-52 Roddy, M, 2010, Sales Promotion: How to Create, Implement and Integrate Campaigns that Really Work, Kogan Page Publishers, pg 30 Reinhardt, L, Forest. 2007, Bringing the Environment Down to Earth: Harvard Business Review on Green Business Strategy (41-64). United States of America: Harvard Business School Publishing Corporation. Pp. 45 Ritchie, M, 2002, Be a Local Hero: Strengthening Our Communities, Health, and Environment by Eating Local. Juliet B. Schor Betsy Taylor, Sustainable Planet: Solutions for the Twenty-first Century (93-108). Boston, Massachusetts: Beacon Press. Vol. 2, pp 56 Rossiter, J Bellman, S, 2005, Marketing Communications: Theory and Applications, Pearson Australia, pp 157-160 Schmidt, S, Eisend, M, 2015, Advertising Repetition: A Meta-Analysis on Effective Frequency in Advertising. Journal of Advertising, vol.44, no 4, pp 415-428. 2%) Tassal Group, Ltd