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Marketing Plan for Sanitarium’s So Good Soy Milk
Authors: Jesse Jenner & Jingran WangSID: s5118737 & s5064813
Word count: 2765
1003MKT Introduction to Marketing
Tutor: Kieth Weaven
Sanitarium So Good Soy Milk Marketing Mix Plan Page 1
Executive SummaryThis marketing plan is designed to determine the actions that Sanitarium needs to execute in
order to market the So Good Soy Milk to a wider demographic and achieve a larger revenue.
The objective of this plan is to reposition soy milk into a mainstream market and become a
direct competitor of dairy milk.
Soy milk competes with other non-dairy, plant based milks and accounts for more than 60
percent of global alternative dairy launches in 2015 (AFN, 2016, para. 4). As of 2016 there is
just over 1.1million Australians drinking soy milk in any given seven-day period, and one
third of this population also drinks dairy. This implies that soy milk can be considered as
another beverage that is separate from the dairy milk market (Inside FMCG, 2016).
Sanitarium’s target market for the So Good Soy Milk range should include health food
enthusiasts, those who are lactose intolerant, average families who consume dairy milk and
vegans or other animal activists. We want the target market to perceive soy milk as a better
alternative to dairy milk, it is cheaper but is sold in less volume. Therefore, we can sell it in
larger bottles and also sweeten the soy milk to make it more accessible to consumers
transitioning from dairy milk.
The primary marketing mix strategies that will be employed include product, price and
promotion. Sanitarium will need to redesign the way the product is sold, by increasing the
size of the packaging as well as the price. This will ensure that soy milk will be perceived to
be a high-quality health food product that directly competes with dairy milk. Furthermore,
increased investment into advertising strategies will guarantee that a wider audience is
aware of the product. The employment of the marketing mix strategies will take full effect
within 6 months to a year.
The marketing plan will have a significant impact upon the Australian population as the
increased sales of soy milk will raise the health food’s popularity and eventually provide
Australians with a healthier lifestyle.
This marketing plan will allow Sanitarium to gain a larger customer base and therefore
increase company revenue. As the company’s profit increases its social influence will be
more prominent within Australia, as a result the business can potentially expand into foreign
markets.
Sanitarium So Good Soy Milk Marketing Mix Plan Page 2
Table of Contents
Executive Summary...........................................................................................................2Table of Contents...............................................................................................................3Objectives..........................................................................................................................4
Marketing Objectives......................................................................................................4Target Market & Positioning...............................................................................................5
Selection of Target Market..............................................................................................5Positioning Strategy........................................................................................................6
Positioning Strategy.....................................................................................................6Positioning Attributes.......................................................................................................6Positioning Map/s.........................................................................................................7
Marketing Mix Strategies...................................................................................................8Product.............................................................................................................................8
Defining the product attributes....................................................................................9Price..............................................................................................................................10Promotion.....................................................................................................................11Place.............................................................................................................................12
Example of distribution model...................................................................................12Evaluation and Control.....................................................................................................13
EVALUATION OF SANITARIUM SO GOOD GOAL/OBJECTIVE.........................................13Implementation & Schedule.............................................................................................14
Gantt Chart...................................................................................................................14Conclusions and Recommendations.................................................................................15Reference List..................................................................................................................16
Sanitarium So Good Soy Milk Marketing Mix Plan Page 3
Objectives
Marketing Objectives
Useful marketing objectives are becoming more and more critical for the future development
and success of enterprises (Gâdău, 2017, p.38). In the light of market reality, the objective of
this plan is to reposition soy milk into a mainstream market and become a direct competitor
of dairy milk and to extend the scope of communication to 80% of the target customers
within 12 months. By doing this Sanitarium will be able to extensively increase product sales
As a new type of health product, soybean milk is gradually accepted by people and
recognised by more people. At the same time, with the development of new media
technology, product publicity became more and more convenient and diversified, which
provides convenience for the marketing of So Good Soy Milk.
Sanitarium So Good Soy Milk Marketing Mix Plan Page 4
Target Market & Positioning
Selection of Target Market
The health benefits of soy products are becoming more and more popular among the
consumers (Anna, Birte & Joris, 2015, p.30), so Sanitarium 's target market for the So Good
Soy Milk should include health food enthusiasts, lactose intolerant, and vegetarian families.
Healthy food enthusiasts: At the same time, Sanitarium company ensures that the soy
protein used in Such Good soy milk is non - GM soy protein, those will help Such Good soy
milk to be loved by healthy food enthusiasts (Clemons, 2016, para.1). Moreover, this Non-
GM* soy protein also contains various other nutrients including a wide range of vitamins and
phosphorus which are very good for health. It also contains omega 3 and vitamin D. Hence,
the people who are very much willing to eat healthy is the target market for so good soy milk.
Lactose intolerant: the calcium content in soy milk is similar to milk, and the average fat
content is higher than that of other milk substitutes (Clemons, 2016, para.1), so for lactose
intolerance, especially for children, soy milk is a perfect milk substitute. T
Vegetarians: Soy milk has a richer protein content than meats and other milk substitutes
(Clemons, 2016, para.1), and contains a series of essential nutrients, including calcium and
phosphorus, as well as vitamin B12, vitamin A and riboflavin. It doesn't bring you any animal
fat or cholesterol (McConnell, 2015, May 02), so it's intended for vegetarians or other people
who don't eat meat products. For them, the intake of proteins is necessary but they are
vegetarians too who do not eat meat products for the sake of taking proteins. For those
vegetarian people, so good soy milk is an appropriate choice.
Young to Middle Aged Parents: Soy milk will prove popular within this demographic of
parents that aim to be healthier but have to balance the struggle family and time
management. This demographic tends to also be health food enthusiast and therefore,
Sanitarium’s So Good Soy Milk will mostly be marketed into this sector.
Sanitarium So Good Soy Milk Marketing Mix Plan Page 5
Positioning Strategy
Positioning Strategy
Effective positioning strategy should combine the strengths and weaknesses of the
organisation to consider the needs of customers, market and competitors' share in the
product market. The purpose of location strategy is to enable the company to focus on a
particular field and to transcend and defeat its competitors in this field (Lombardo, 2018).
Milk is still dominant in the daily milk market. In this case, we think it is easier to achieve our
marketing plan by positioning the market in a differentiated way. In the process of strategic
planning, we should highlight the differences between So good soymilk and milk, and what
aspects of these differences make So Good soy milk better than milk and can help the
market dominate the milk market in the daily milk market. For this differentiation, Sanitarium
company needs to show to the target market that how go good soy milk is offering unique
features and unique uses with respect to the other milk.
Positioning Attributes
Sanitarium has a long history of producing healthy food, the primary market attributes should
include consumer characteristics, price levels, channel characteristics, social qualities and
safety attributes. According to Maslow's survival theory (McLeod S. 2018), different
consumers are motivated to achieve certain needs and that specific needs precede others.
The level of motivation determines the what the individual desires, this decides what product
is suitable for them at a functional and cultural level (McLeod S. 2018). Therefore, under the
premise of ensuring product quality, ensuring market price advantage and gaining the best
market, it is the target and standard of enterprise product (Jang. Morrison, & O'Leary, 2008).
The product attributes of the soy milk which are differentiated includes no added colours,
100% pure and rich in nutrients.
Sanitarium So Good Soy Milk Marketing Mix Plan Page 6
Positioning Map/s
(From Woolworth)
Sanitarium So Good Soy Milk Marketing Mix Plan Page 7
HighQuality
LowQuality
LowPrice
HighPrice
So Good1.79/L
Macro1.7/L
Vitasoy2.0/L
Bonsoy4.80/L
Marketing Mix StrategiesIn marketing, marketing mix refers to the combination of marketing tools that are used by the organization with respect to the target market, aiming to accomplish the marketing objectives (Kotler, Bowen & Makens, 2006). Moreover, marketing mix plays a very important role in the overall marketing plan of the firm. Marketing mix strategies need to be effectively designed because these strategies play a major role in attracting the customers towards the company.
Product
The daily milk market in modern society is enormous, which is indispensable to any social
class and age group. With the increase of people's health awareness, soybean milk is
gradually accepted by more and more people. Compared with whey, first, the vegetable
protein contained in soybean milk is more readily absorbed by the human body and also
satisfies the vegetarians' intake of daily protein. Second, soy isoflavones in soy milk have
some protective effects on some cancers and the application of non-transgenic soybean.
Third, soy milk is more suitable than ordinary milk for lactose intolerance and children's
reference. These are the benefits that So Good soymilk can provide to the target market in
such a healthy market competition.
The materials used in manufacturing the product plays a very important role in the overall
success of the products (Naik, Raman, &Winer, 2005). The materials used in the
manufacture of soy milk includes water and soybeans. Moreover, sugar is also added. In the
finished product, toppings of vanilla, almond and chocolate is also used. Packaging of the
soy milk is done by the machines. The soy milk comes in the containers with label So Good
soy. Further, regular, essential or liteis written based on the flavour.
At the same time, we decided to make some changes to our soymilk.
For example, first, expand the capacity and price of the product, adjust the existing $1.7/L to
$4/2L, as a healthy product that people will drink every day, the size of the 1L is not enough,
because if the product is consumed too fast, it may affect the customer's sense of use and
cause some unnecessary trouble, requiring the consumer to go to the supermarket to buy it
frequently. At the same time, the soybean used by Sanitarium is non-GM soybean, which will
increase the production cost to a certain extent. Therefore, the adjustment of Such a Good
soybean milk price and capacity is adequately demonstrated and feasible.
Sanitarium So Good Soy Milk Marketing Mix Plan Page 8
Defining the product attributesNew Product Attributes Resulting Consumer BenefitAttribute 1:Improve the sweetness and concentration of Such Good soybean milk. Through investigation, we found that most Australians like to eat sweet things.
Attribute 2:Increase advertising, promotion and related product publicity.
Attribute 3 : Improve the quality of the product and enhance the price of the product.
Benefit 1:Many people believe that the long-term use of genetically modified soybeans is not good for the health. Therefore, the raw material used by Such So Good soy milk is non-GM soybean production, which can meet people's heart related needs and facilitates positive first reaction of the people towards the product.
Benefit 2:Add the sugar to the soy milk. Australians generally love sweets, and sweet soy milk is also more natural for children to accept.
Benefit 3:An excellent product, the most important thing is not a low price. In a reasonable price range too, quality plays a very important role.
Sanitarium So Good Soy Milk Marketing Mix Plan Page 9
PriceThe pricing strategy is a very important part of the marketing mix. Price is an important factor
that affects the success or failure of a transaction. Peter (2003) stated that price is the most
difficult factor to decide in the marketing mix.
At present, the price of So Good soymilk in the supermarket is at the middle level, but the
price difference between soymilk is not apparent. Soymilk is more expensive than milk. With
$1.7/L and $1.3/L, for example, the choice of Devondale 100% Pure Long Life Milk in the
market is more expensive, and the price of the so-called new health food, the soymilk will be
a little higher. However, compared with other similar products on the same market, the rate
is not much higher than milk, at the same time, more and more people have started realizing
that the benefits of soy milk for the human body are considered. At the same time, through
the improvement plan of the previous part, the increase of product cost is bound to cause
the price of products to rise. But even so, the improved soy milk still has apparent
advantages in market competition.
Sanitarium So Good Soy Milk Marketing Mix Plan Page 10
Total BenefitsInitial price: $1.7
The increase of cost is mainly reflected in the capacity and taste of soymilk.
Increase each bottle of 1L to 2 per bottleImprove the sweetness of soybean milk.
PriceNew Price:$4
By improving the quality of products, the customers will be more willing to buy enhanced quality product.
HEnce the demand will increase further. This enhancement in the demand will lead to the better competitive position of the product in the market.
PromotionPromotion is the voice of the company which sends out a brand’s message to their
audience, without promotion brands would not be able to retain the attention of the
preoccupied customer (Mishra, 2015). The promotional strategy contributes to the
development of product awareness and therefore an increased customer base and finally
sales. This is done by presenting the product’s features, price and benefits to the audience.
Sanitarium’s So Good soy milk must be promoted through various mediums such as social
media, television, radio and billboards in order to extend itself to various customers, all with
their own psychographic needs. The social media giant, Facebook, has two billion active
users per month as of June 2017 and is still constantly growing (Hall, 2018). This shows the
popularity of social media platforms and that by utilising them for advertising, the redesigned
Sanitarium So Good soy milk has the potential to be presented to millions of people almost
instantly and for a low price. Another benefit of advertising through social media though is
that it targets Sanitarium’s desired age range. The majority of Facebook users are aged
between 18-49 (Greenwood, Perrin and Duggan 2016). which means that the Sanitarium So
Good soy milk can be instantly marketed to the target demographic of young to middle-aged
parents through social media. Product awareness will be increased through social media
promotion but in order to further the products sales a price promotion must be employed at
the right time too. Health food products tend to be consumed more frequently during the
winter as consumers desire to get in shape before the spring and summer, this is commonly
known as the “beach body”. In order to help Sanitarium’s customers achieve their “beach
body” and at the same time increase the So Good soy milk sales, it is vital that the product is
launched and put on a half-price sale, down to $2, for the first three months after launch.
This will allow the product to compete with competitor prices, ensure a successful launch
and lead consumers to believe that it is the regular price for the product. Furthermore, the
company would also benefit from advertising on national television just as social media
provided many advertising benefits. By advertising on television parents would be able to be
made aware of the product when their T.V. is on as the children prepare for school in the
morning. Television advertising would also allow the product to be viewed by an elderly
demographic, those who do not use social media and are not tech savvy. Therefore, by
advertising a reduced price on social media and television after the So Good soy milk is
launched in winter, Sanitarium would have presented their product to their target
demographic of young to middle-aged parents and would finally have increased product
awareness and sales.
Sanitarium So Good Soy Milk Marketing Mix Plan Page 11
PlaceThe distribution of the product determines when, where and who can purchase the product,
this is a vital element in the marketing process. Sanitarium will benefit from distributing their
So Good soy milk products to wholesalers who will then take care of selling the product to
the desired retailers. To ensure success through this model, Sanitarium must adopt a push
policy. Push marketing is a promotional strategy where businesses attempt to take their
products to the customers (Robertson, 2018). By having a push policy Sanitarium can
communicate to the parties involved in the distribution chain and ensure that the product
reaches the desired retailer and finally the consumer. The importance of having a wholesaler
within the chain is that the product can be held and reasonably distributed to the various
desired retailers. It is recommended that Sanitarium’s So Good soy milk is supplied to
retailers such as service stations like 7-11 and Caltex as well as supermarkets such as
Woolworths and Coles. By having the product in service station, Sanitarium would have
considered time utility as the consumer will be able to rush to a service station in the case
they didn’t have the time to go to a supermarket. Furthermore, the product must primarily be
distributed to retailers in urban and suburban areas as this is where the majority of the target
demographic of young to middle-aged parents lie. Rural supermarkets will also be supplied
with the product but it will not be the primary concern for Sanitarium’s wholesalers.
Therefore, the product will be distributed from Saniturium (the producer) to a wholesaler and
then to service stations and supermarkets (the retailer) where finally, the consumer can
purchase the product.
Example of distribution model
Sanitarium So Good Soy Milk Marketing Mix Plan Page 12
Evaluation and ControlBefore any product changes and distribution begins, it is essential that evaluation methods
are conducted to determine the need for the change and to what extent it must take place.
Sanitarium must conduct consumer surveys to attain an understanding into how the So
Good soy milk is perceived. Factors such as product awareness and how often the
consumer purchases the product must be taken into account. With this knowledge further
evaluation measures can be implemented to perceive how sales and product awareness
increases as the product development, promotion and launch takes place. Sanitarium’s
product awareness can be observed through the retention rate, a metric that measures the
number of customers a company still has at the end of a period relative to the number a
company had when the period started (Brenner, 2017). Furthermore, top of mind awareness
and willingness to recommend metrics can determine how popular So Good soy milk is and
how it stands alongside its competitors. These metrics provide insight into who is aware of
the product and who is purchasing it. In order to analyse sales and determine how the
product performs in the dairy milk market, it is recommended that Sanitarium uses a revenue
measurement metric. This will determine how much the company is earning and then can be
compared to the company’s cash flow. Using these metrics to measure product awareness
and sales, Sanitarium can observe how the So Good Soy Milk is performing in the
marketplace in comparison to other competitors. Furthermore, these metrics will help
determine how successful the business’ marketing is and conclude whether the strategies
need to be changed this is why they have been selected.
EVALUATION OF SANITARIUM SO GOOD GOAL/OBJECTIVEObjective Metric Timing Responsibility
Increase So Good Soy Milk awareness by 10% (according to survey results)
Retention Rate, Surveys;Top of mind awareness,Willingness to recommend
Conduct surveys every two months and measure retention rate monthly
Measures how many people know of the product, would continue buying it and would recommend it.
Transition soy milk into the dairy milk market
Revenue, Surveys Revenue can be measured and compared with cash flow every two months along with surveys
These metrics will measure how much revenue Sanitarium is gaining in a new market and how successful the marketing plan is.
Sanitarium So Good Soy Milk Marketing Mix Plan Page 13
Sanitarium So Good Soy Milk Marketing Mix Plan Page 14
Implementation & ScheduleThe integration of Sanitarium’s So Good Soy Milk into a new market is not an instant
occurrence, and therefore requires extensive planning and pre-launch measures to ensure
success. The product launch must be conducted in May, just before winter, to ensure
optimal sales, as consumers will be buying health foods during this time in preparation to
gain a “summer body”. Before this time, Sanitarium’s So Good Soy Milk must undergo a
redesign stage and advertisements must be made. At launch, supermarket and service
station distribution must take place at the same time as a three-month price promotion. This
will make the soy milk widely available almost instantly and ensure constant sales at launch.
Over the course of a year constant evaluation and control metrics must take place to
measure the objectives of increased product awareness and sales after launch. The metrics
of retention rate and revenue measurements will provide insight into whether the marketing
mix was successful, if not Sanitarium will be informed to change and adapt marketing
strategies. Therefore, by planning and scheduling the integration of Sanitarium’s So Good
Soy Milk, summarised with a Gantt chart, the company can determine what action will take
place and when to ensure optimal sales and success with the desired objectives.
Gantt Chart
Sanitarium So Good Soy Milk Marketing Mix Plan Page 15
Conclusions and RecommendationsThe proposed objectives of increasing Sanitarium’s So Good Soy Milk awareness amongst
consumers and transitioning the product to compete against the dairy milk market can only
be achieved through the implementation of the strategies and plans provided in the
marketing mix. Sanitarium’s demographic of health food enthusiasts and young to middle-
aged parents will provide most profit to the company and therefore, the product has been
redesigned to cater to them. By increasing the product capacity, price and sweetening the
flavour, Sanitarium’s So Good Soy Milk will indirectly compete with the dairy milk market.
Furthermore, by launching the product in May Sanitarium will see ideal sales as health food
products tend to be consumed more in winter as consumers want to attain a “summer body”.
These factors will lead to a successful launch of the product and in order for Sanitarium to
retain optimal sales it is vital that the company employs medium and long-term sales plans.
In the future it is recommended that Sanitarium adopts a variety of different flavours for the
So Good Soy Milk product, this will revitalise sales if they begin to fall. Therefore, the
business will continue to witness constant success in the future.
Sanitarium So Good Soy Milk Marketing Mix Plan Page 16
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