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Marketing Plan For Tyrrells Potato Chips Marketing Essay

Paper Type: Free Essay Subject: Marketing
Wordcount: 4507 words Published: 1st Jan 2015

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The market for potato crisps in UK is a competitive market. It is very difficult to enter this market. Walkers is the biggest snack company in UK. There are also many competitors from domestic and international. For example, Pringle is a strong competitor for chips chips market. The recources, suppliers, buyers and customers were control by these big chips companies. However, the Tyrrells Potato Chips did. Since 2002, Tyrrells Potato Chips started to focus on a niche market of potato crisps; namely, the Premium Crisp market focusing on more affluent customers.

The growth of the company is important for the company’s owner. Tyrrells Chips is in a niche market, the chips are produce for specific group of customers. Therefore, the company need to meet these customers’ unique need.

Firstly, customers from the higher social grades are slightly different from other general customers, they tend to spend more on better quality food. Tyrrells could use quality control to ensure their product meets a high standard and develop Tyrrells Potato Chips flavours. In addition, they need to find out more flavors of the chips, then evaluate which one can be accepted by these higher social grades customers. For example, develop the flavour of foie gras might more attractive for these customers than develop flavour of pork rind.

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The customers from higher social grades care about their health; especially female customers. The reason of this is ladies are more conscious of their weight and size. Customers who from higher social grades have more social events and formal meetings with people form the same grades. Tyrrells’ customers also need to care about their public images. That is a reason that customers from higher social grades usually do not want to try crisps. Therefore, Tyrrells Chips need to be produced by lower oiled and lower calories. The company need to develop the technique to produce a much healthier product.

The Tyrrells Potato Chips’ customers are much more discerning buyers. Therefore, the company need to build the brand. Improve the customers loyalty of the brand. Though attract customers to join Tyrrells culture and build trust with their customers. In fact, regular customers is the most important group of people that Tyrrells should make. To Tyrrells, find out a solution that keep their customers consume Tyrrells Potato Chips regularly is more important than set a strategy that attract new customers.

Branding is an important part of continued customer trust; however, the strength of retail brands is such that it is more and more difficult for newcomers to compete. Burt (2000) argues that “grocers own brands are at least equal to those of manufacturers’ brands” [1] . Therefore, Tyrrells needs to get their brand more recognised in order to compete in this tough market.

Furthermore, these customers also need their foods have a premium price, in order to demonstrate their social grades. These customers prefer their foods are different from ordinary customers, they will not like to choose the same thing with ordinary customers, for example, Walkers crisps or Nandos Hot Peri Per. They want to choose something with premium price that can show their unique taste, even though the difference is so slightly that people can hardly recognize.

Secondly, Tyrrells Potato Chips company still need to let their customers know what they really want customers know. The company should especially show their particular way to produce the chips. Including promote the advantages of Tyrrells Court Farm, which in the heart of the Herefordshire. In addition, how these advantages could influence the chips quality. Tyrrells also need to particular advertising their farm, which is local, reliable, and safe. The company also can let their customers know about their especial way of the hand-made chips, include which steps of the chips-making process are make by hand, in addition, why the company prefer hand-made rather than machine. For example, hand-made chips can ensure the chips thickness mostly the same, hand-made can also make sure the flavor is well mixed. Tyrrells could emphasis they are healthier food. They can show the science and technology research department, and assembly department though advertise. Furthermore, low fat, low oil, low calories need to be emphasised of the advertising process.

The company also the feedback of the customers. Tyrrells’ customers usually come from higher social grades. These customers are sensitive, if these customers feel dissatisfied of the chips for several times, they might never buy Tyrrells again. The worse thing is, these customers might communicate with their social circle, it can make bad impressions for other customers. To Tyrrells, using price skimming strategy and focus on service can hold more customers from higher social grades.

Finally, Tyrrells could through test the market to forecast the trend of the market. For Tyrrells, test the market seems the best way to know their new product can be accepted by their customers or not. They can test their new product in the best-selling place, for example, the test results from London Harrods, Selfridges and Fortnum & Masons are more reliable than the results from Tesco Express.

Task 2

To be a competitor in the chips market, Tyrrells need to seek the niche market of all the chips market. For this reason, Tyrrells Chips have to develop something that different from other competitors. Tyrrells’ market positioning is the particular chips for customers who from higher social grades or the discerning buyers. Thus, developing long-term relationship with these customers, improving customers’ loyalty and increasing the regular customers should be taken into account.

As a firm that consider to construct a long-term strategy and structure, further develop long term customer relationship and equally long-term value with its customers, Tyrrells Chips might need to use marketing mix.

“The marketing mix is the set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market.” [2] Marketing mix could be suggested to Tyrrells Chips who depends on customers. Elements of the marketing mix are often categorized into Four Ps; Product, Promotion, Place and Price.

Firstly, Tyrrells need to focus on their product: product is the most important thing in Tyrrells sale strategy. The firm have to control their chips quality and to invest in technology. Undoubtedly, Tyrrells’ customers want the chips can be the best chips in the market. They need the chips healthier. Thus, Tyrrells have to ensure their chips with much less oil, fats and calories.

In addition, for Tyrrells’ niche market, service is another important element in product. Building closer relationship with customers can improve customer’s sense of regard. Tyrrells’ customers belong to higher social grades, these customers’ society are more refined and courteous. In this situation, service can be the most influential element to keep excellent customer relationship. For example, some customers might worried about the bad small with they speak after they have chips, in this situation, Tyrrells could put gum inside the chips package to solve this problem.

Furthermore, Tyrrells should pay attention on packaging design. Customers who can buy Tyrrells Chips are discerning buyers, therefore, Tyrrells should use the package design to attract these customer. Classical type design should be the best choice for Tyrrells. These customers have their own standard and preference of aesthetic. Classical design might be the safest way.

In the other hand, Tyrrells should extend their vision. It is beneficial for Tyrrells to develop new product, rather than only produce chips. The firm can expend their product line. Other snack foods can be developed with the same way. For example, some people might not like eat chips because the crisp sound, this sound can make other around people feel uncomfortable and disrespect. To make sure customers can taste Tyrrells anywhere, the firm can develop other puffed food with less sound.

Secondly, Promotion should be taken seriously. It is necessary for Tyrrells to promotion themselves. “Promotion is the effort to inform and persuade potential customers in order to accomplish the sale of the product, services, or ideas.” [3] The core of promotion for Tyrrells is building brand awareness.

Advertising might be the best and commonest way to promote Tyrrells Chips. The firm can advertise their product by TV, poster and other mediums. TV advertise might be the most widely way to promote Tyrrells Chips. However, TV advertising also have its disadvantages. Normally, luxury brands and other brands for higher social grades customers resist TV advertising. TV advertising is normally for mass market. Contrarily, Tyrrells’ target market is niche market. Thus, the firm should avoid using TV advertising to equate with cheap brands. Advertising with luxury or fashion magazines could be batter for Tyrrells. To link with these luxury brands inside the magazines, Tyrrells can improve their brand level.

To co-operate or to sponsor relevante events is another way to promote Tyrrells Chips. Inviting customers to these events can show these customers more about Tyrrells. Tyrrells also can invite their customers have a family travel to the Tyrrells Court Farm, which in the heart of the Herefordshire countryside. Families can relax in the countryside, it is a good opportunity to promote Tyrrells culture to their customers. Firm can show how the potato have been planted, and also can show how the chips have been made by hand. This can build customers brand loyalty.

Thirdly, Tyrrells Chips need to find out the place that is suitable for their market positioning. Tyrrells’ customers may not like to purchase chips in supermarkets like Tesco, ASDA, Morrisons. Luxury stores is more suitable for Tyrrells, for example, Selfridges, Harrods, Fortnum&Masons and Harvey Nichols. These luxury stores focus on the same grades of customers with Tyrrells. Therefore, customers in these luxury stores’ customers can be the target of Tyrrells.

Another important tool that Tyrrells use is key account management. A simple definition of key account management is “developing the nature of the customer relationship in order to enhance understanding and to identify the true opportunity; aligning the business resources to act on that enhanced understanding, in order to secure competitive advantage and to enhance profitability.” [4] Using key account management to develop a closer relationship with key customers. Chips market is a market that strong dependence with “big customers”. Building a close relationship with these customers is very diffcult to start, however, when everthing get on the right track, it is very beneficial for Tyrrells to make a long-term strategy.

Tyrrells should using this tool to build a close relationship. Tyrrells can not sell their chips in open market, or sell it by them self, they need to sell their pruducts by Harrods, Selfridges, Fortnum & Masons, etc. Tyrrells should develop closer relationship with these customers with .

Firstly, communcation should be emphasised. A successful communication can get information quicker and more efficient. Using new techinology to make communication more efficient is suitable for Tyrrells. For example, virtual communication tools can achieve communicate with these key customers from internal, rather than just sale department communicate with purchase department.

Secondly, Tyrrells need to fulfill these customer’s need and response more quicker. Offer tailor-made services and products can close relationship with these big customers efficiency.

Finally, feedback should not be ignored. Receiving feedback from internal of customers can detect how good that the strategy be done. When receive feedback from key accounts, can also make relationship one step forward.

Tyrrells can also offer their products in transport. For example, business premier of Eurostar could be the first place to offer their chips. Tyrrells can also offer their chips in airline first-class, as a local airlines, British Airways and Virgin Atlantic can be the best choice to build partnerships. In addition, the food guide books in airplanes or trains in the first class can also promote their product as well.

Finally, price might last important for Tyrrells. However, Tyrrells also need to control the price relevant with the market. Price also need to be taken seriously because price is the most intuitive factor to show Tyrrells Chips’ market position. Tyrrells through control the price to attract their target customers. Even though Tyrrells customers are less care about the price, Tyrrells Chips also need to connect the price with its worth, after all, price is an important factor in market economy.

Task 3

Since 2002, Tyrrells Chips make a huge successful in “crisps market”. When Tyrrells enter crisps market, the niche market that Tyrrells need to focus on is “premium crisps” market. At year 2002, when Tyrrells Potato Chips enter the market, “premium crisps” represented about 21% of the total crisp market, but by 2007, five year later, premium crisps represented 29% [5] . That show the successful of Tyrrells enter the market, even it is difficult to enter, Tyrrells also take a position in the premium market. Since 2002, Tyrrells try to attracted new group of consumers. Tyrrells found out a specific way to produce and promote their chips, higher quality, and higher society grades. “The eaters were changing from males to women who preferred low fat crisps.” [6] 

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From the year of 2002, Tyrrells enter crisps market as a fresh. The company operated very well in their target market. However, Tyrrells still weak of capital accumulation, 5 years past, Tyrrells still is a small company that offer products and services for small customers. Tyrrells did not expanse their target market, thus, it is difficult to increase their profit. Without capital accumulation, Tyrrells did not have enough budget to improve their products, services and promote. Moreover, it is very difficult to invest for the future. The firm also have no enough budget of market expansion. Inevitably, Tyrrells would be bought by investment group.

Task 4

To build personal relationships with customers, Tyrrells need to focus on approach “relationship marketing”.

“relationship marketing orientation is more modern approaches relating to marketing orientation, have suggested a relationship marketing approach. this recognized the importance of retaining existing customers and developing relationships with stakeholder groups( e.g. suppliers, distributors, etc). the theory is based on the premise of building a relationship as opposed to simply generating transactions.” [7] 

Relationship marketing is an approach that developed to improve transaction marketing. According the definition, the relationship marketing emphasis customers relationship and satisfaction, rather than a dominant focus on sales transactions.

For Tyrrells, build personal relationship with customers need to be taken seriously. Communicating with customers is the best way to know customers’ needs. Further, in Tyrrells’ relationship marketing strategy, the firm should use bilateral communication rather than unilateral communication. It is beneficial for Tyrrells to share and communicate information with customers.

In addition, Tyrrells need to co-operate with others, which can achieve win-win situation. The aims of co-operation is increase interest of every parts of chain rather than harm others’ interests. Tyrrells can achieve more via co-operating with others.

Furthermore, emotion is another factor that influence relationship marketing. Relative to material needs, the firm also need to satisfy customers emotional needs. Tyrrells need to meet customers both material and emotional expectation in order to achieve customer satisfaction.

Finally, people are different. Firm should develop a closer relationship with different personality by different solution. For example, developing closer relationship with women Tyrells. The women need to feel connected to the brand. This can be done with personalised electronic communications. It can make women feel more like a family than just transaction. However, developing closer relationship with men should communicate shortly and with points. Concise conversation can let gentlemen feel comfortable. Tyrrells also need to track customers attitude immediately. To develop immediately feedback from customers in order to control the relationship with customers.

The major problem and core aim of relationship marketing is how to keep customers. Building customer loyalty is the main topic of relationship marketing. How can Tyrrells get customer loyalty in relationship marketing? Three easy step to achieve this.

Firstly, seeking target customers’ needs. Firm need to analysis customers’ needs, and conclude client satisfaction. High quality of products, friendly services and comfortable shopping experience are which the factors might influence Tyrrells’ customers preference. Focus on customers satisfaction can bring tangible( returned customers) and intangible assets( promote firm to others).

Secondly, fulfill these needs and ensure customer satisfaction. Tyrrells can achieve customers satisfaction with these ways: providing high quality and satisfactory products and services, providing additional benefits and providing efficient communication approach. For example, customers may not satisfied current little flavors, when Tyrrells got this information, then the firm need to develop more flavors.

Finally, for Tyrrells’ niche market, the essence of market competition is how to keep the customer resources. To keep existing customers is more important than attract new customers for Tyrrells. Thus, building customers loyalty can bring lots benefits.

In relationship marketing, the main problem is how to build and keep long-term and interdependent relationship with customers, suppliers or distributors. Therefore, Tyrrells need to communicate with others initiatively. This can share the information quickly, in addition, firm can provide services to their customers or solve the problems with suppliers and distributors.

Finally, firm need to perform their promises and commitments. It is very difficult to build trust relationship in market behaviour, because all the firm in the market want to maximum their profits. However, Tyrrells is in a niche market which offer chips for higher society grades, these customers usually shopping with consumption inertia, thus, how to obtain customers trust is more important for Tyrrells. Usually, fulfilling commitments can achieve high degree of mutual trust. If the firm promise to their customer, therefore, no matter what happend and how hard to achieve it, Tyrrells have to perform this promise. Even though sometimes Tyrrells might get loss, as return, it can increase customers trust and loyalty.

Task 5

As a rapidly developing company, Tyrrells need to invest more in promotion. To be a competitive company in this modern society, Tyrrells Potato Chips should build brand awareness.

In the year 2009, a French luxury fashion design label Christian Lacroix prepare to bankruptcy. “French design house Christian Lacroix has reportedly filed for voluntary bankruptcy as the label seeks to protect itself from an onslaught of creditors” [8] At the same time, another luxury fashion design label Christian Dior still made considerable net income 796 millions Euro in 2008 [9] . Even though people believed economic crisis is direct cause for the CL bankruptcy, however, other luxury labels like CD, Chanel, etc. still can made profits in that year. CL can design the same quality of dress with CD or Chanel, some time CL’s design may more beautiful than others. However, the unsuccessful promotion is another main reason of CL’s bankruptcy.

“Generally, promotion is communicating with the public in an attempt to influence them toward buying your products and/or services.” [10] Shortly, the main objective of promotion is let firm’s target consumer know the brands which firm want consumers know. For Tyrrells, promotion can be achieved through various ways.

As a famous chips manufacturer, Tyrrells should promote their chips’ brand in any relevant domains. For example, to be a sponsor of The Royal Welsh Show. Through sponsor for these show, Tyrrells can promote their business philosophy. healthy, premium and skilled. In addition, Tyrrells also can host society events, through communicate with consumers, to promote firm’s philosophy.

Advertising is another communication tool that deliver messages to customers. As a main communication tool, advertise is a good way to promote the brand, also a effective way as well. “Coca-Cola has long been recognized as the world’s most valuable brand. Its current value: $55 billion.” [11] Advertising is an important factor that help Coca-Cola achieve this. In every Olympic Games, Coca-Cola will advertise their brand. In Atlanta 1996 summer Olympic, Coca-Cola advertised in any relevant area. The third quarter of 1996, Coca-Cola’s sale revenue increased 21% [12] . At the same time, as Coca-Cola’s biggest competitor, Pepsi’s profit decreased 77% [13] .

This is a good instance for Tyrrells, Tyrrells should not content of current advertisement. Tyrrells can advertise on famous food magazine, like Restaurant Magazine. Luxury fashion magazine should be considered as well, Harper’s Bazaar and Vogues could be good choices. In addition, invite gastronome and celebrity endorsements is another good way to advertise Tyrrells Chips.

Even though Tyrrells do not have a big budget, they still need to highlight their advertising strategy. Omnipresent adversting is not very suitable for Tyrrells. One thing Tyrrells need to do is to aim their targets, key customers, affluent customers. It is more useful to adversting the point rather than adversting wide.

Public relations is a communication tool that the firm use to building trust with public. The main mission of PR is how to maintain firm’s healthy image. Firstly, to be honest or at least let public think you are honest. Integrity is an important element for confidence-building. In the year 2009, Toyota was the largest car manufacturer in the world [14] . When customers complaints about Prius break problem and Toyota decided to repair those cars, it was already too late, Toyota lost the trust from consumers. Putting aside political factors, unresponsive public relations department might put the last straw on Toyota, to pull the firm into this passive situation.

This is a bitter lesson for Toyota, however, Tyrrells can learn a lot from this case. Tyrrells should communicate with customers more efficient. Public relations department should receive the public problem Immediately. Then control and solve the problem as quickly as they can. Public trust is very easy to loss but hard to get, therefore, PR department should good at controlling the problem and make sure it will not be proliferated.

Finally, Tyrrells should good at using a communication tool called internet marketing. Marketing on the internet is slightly different from real world. For Tyrrells, Marketing on the internet is promoting to young customers. Tyrrells can co-operate with social website like Facebook, Youtube or Twitter. For example, company can sponsor virtual farm on Facebook to attract young people, they can also use Twitter to push their voucher to customers. Tyrrells can collect customer’s email through using Tyrrells website log on system. The advantage is, Tyrrells can deliver their new message to the specific group of customers( younger, older,male, female, etc.). Disadvantage is, these emails might be marked by spams.

Internet is not just promoting, customers could also shop online. Online shop can make transactions more flexible. When customers want to buy huge packages of chips, they can purchase a box of Tyrrells Chips online. It is very strange to purchase a box of chips, but when online shopping, customers do not need to worried about this. Online shopping also can make customers more flexible. For example, when customer shopping at Harrods, he want to purchase 5 packages of flavor Lightly Sea Salted, 5 packages of Sweet Chilli & Red Pepper, it might very difficult to carry. However, online shopping can solve this problem. Chips are not clothes, sometimes customers do not need to fit them.


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