Sunday, 26 May 2013

Marketing communication – Critical Evaluation of Integrated Marketing Communication Eco- Network- A case study of Bel Group.



Executive summary
The relevance and survival of an organization in a given market is in its ability to compete favourably through its integrated marketing communication which are the signals sent to customer , potential customers and the general public offline and online to create an image and personality.
This course work focuses on Bel group (with concentration on one of its core and most successful brand ‘The Laughing Cow’), the world leader in branded processed cheese packaged in pre- cut portion and the number one cheese spread in Europe (Khimji, 2012), been in business for more than 90 years with 400 million portions sold (in 2011) and with the target to make 3 billion pounds sales turn over by the year 2020.
In it offline activities, Bel group have developed fascinating advertisements in deferent media and as well made good efforts on its public relations and sponsorship. Part of its offline activities is also it good distribution channels. In its online activities, it’s (Bel group) got an effective web presence management through it web sites, providing ample information about its products with messages wrapped in pleasure and healthy diet.
This course work also intends to look into the brand source, personality, differentiation and function, as well as the expansion and growth strategy of Bel group and particularly, the laughing cow campaign in Netherlands to mark its 90th anniversary; its objectives and the results (sales figures) from the campaign.





1.     Brand Positioning in regards to Online and Offline communication.
1.1 The Company.
The Bel is a multinational organization that originated from France. The organisation specializes in developing and manufacturing quality, brand-name cheeses that are loved around the world and easily reached to everyone. Bels is over 90 years in the industry, present in more than 120 countries with the mission to be the world  leader in the business  and to continue to produce and develop original, high-quality and widely available branded cheeses locally and in the international market. (Bel-UK, 2012)
1.2 The Products.
Bel group’s cheeses are made to match the well-built personality of its (the organization) powerful brands, With five universal major brands, including The Laughing Cow, Kiri, Leerdammer, Boursin and Mini Babybel, and more than 25 additional local brands, the organisation brings smiles to almost 400 million consumers annually in 120 countries around the world. These smiles which are basically from the delight of eating food made with dairy goodness, and Bel's commitment to fostering good and healthy eating habits and ‘good-naturedness’, form the common thread between the organisation and its brands (Bel-group, 2012)
1.3 The Brand
Brand is the reflection of the personality of a corporate image; corporate image on the other hand summarizes what the company stands for as well as how it is known or viewed in the market or the general opinion of the market about the company, while a good/ strong brands provide consumers with assurances of quality and reduce search times in the purchasing process (Kenneth E. Clow and Donald Baack, 2012). As discussed earlier, our target brand of Bel group for the purpose of this course work is ‘the Laughing Cow’. ‘The Laughing cow’ is one of the very first brands of the Bel group and certainly one of the most successful. In market for more than 90 years, ‘the Laughing cow’ has created a sustainable image offline and online connected with messages relating to refreshment, pleasure and sweet sensation.

1.4 The Offline Brand Image.
The ultimate offline brand image is a function of an organization integrated marketing communication. There has been a shift in the concept of marketing from managing just customer transactions to managing internal and external relationship and from passive to interactive multi-channel marketing communication strategies. Marketing communication is concerned with the planned, integrated and controlled interactive dialogues with key target audiences to help achieve mutual beneficial objectives, as modern marketing calls for more than just the development of a good product, making it appealing in pricing, and reachable, companies must make the right communication signals to both present and potential stakeholders as well as the general public. (Fill, 2009). How well a company is able to incorporate its marketing strategy, messages and message compositions as well as its relationship with house agencies and communication with stakeholders determine the achievement of the products and brand of such organization. The Bel group and particularly the ‘laughing cow’ is generally viewed to have channeled its marketing strategy towards a healthy nutrition which is its point of difference as compared to products like margarine, butter or chocolate spreads, by making ‘the laughing cow’ in piece and slices to help consumers manage their diet. It (Bel) has also strived to continually improve its products to meet consumers’ nutrition needs, For example; The Laughing Cow Light and Mini Babybel Light were launched long before obesity turned out to be a major concern it is today. At the moment, all Bel’s main brands have a light alternative and for some there is even an Extra Light version – the Laughing Cow Extra Light has only 3% fat and just 20 calories per portion. (Bel-UK, 2012)
The laughing cow’s design and packaging since 1924 (as I have observed) has been consistent and remains relatively unchanged to this day (thelaughingcow, 2012), while message over the years have been wrapped in healthy nutrition, delight and pleasure. Examples of such messages are :’sharing smile’, (Bel-group, 2012) ‘have you laughed today’ (thelaughingcow, 2012), ‘made with laughter’ (TheDrum, 2011), ‘Get your day off to a better start’, and at every opportunity, the laughing cow lays emphasis on how healthy it is to take Bel’s cheeze in the stead of related products from other competitors.

In summary, Bel group, with more than 25 further local brands (and ‘the laughing cow’) is a key food industry player and a frontrunner in the cheese production market, with more than 11,000 employee,  (Bel group in 2011) generated consolidated sales of €2.5 billion, up 4.5% over the previous year. In its profile, the Bel group states that the success of its brands can be exemplified by the 10 million portion of the laughing cow consumed everyday in the world. (Bel-group, 2012) 2300 portions of The Laughing Cow are taken in every 20 seconds. More so, it is the most famous cheese spread in the world (Bel-uk, 2012).


1.5 Online brand image
The online brand image of an organization or a product is exclusively dependent on the offline relationship built otherwise with its customer or the general public (as the case may be) outside the internet or website. The online presence management of the Bel group in no doubt reflects the offline success of it brands. Bel group maintains various websites and predominantly for each of its brands, with numerous information about the organization, its history and its products. These websites also have sales figures and facts which in fact is helpful and useful for such researches and course works as this, as well as products’ rating platforms( which is a mean of maintaining a close follow-up on the results of offline sales campaign and activities), as well as feedback and consumer engagement blogs. In my own view, Bel group’s websites are some of the most up to date and voluminous information based website I have seen; but I have also noticed that none of these websites has an online sales management platforms – online purchase and payments platforms- but I suppose each organization, according to its target audience, have its marketing strategies and focus, and I do believe that as much as the offline sales focus and strategies of Bel’s group has paid off, an online sales management and payment platform could be an additional sales revenue source and means.
2. The Brand and Networks
2.1 Brand Personality
The mission of the Bel group is their long-term production and development of original, topmost quality, extensively available branded cheeses. The five significant values underlying Bel’s growth strategy are ethics, innovation, enthusiasm, expertise and unity.
Being categorized as the foremost European branded-cheese group and positioned 2nd in the world in terms of turnover and profitability, Bel maintains emphasis on innovation with technology and new products, permeation of new markets, and persistent external growth.

2.2 Brand Differentiation and Function
Bel focuses on the development of Branded Cheeses - unique, simple, healthy cheese products, with the extensively possible availability. Their brands are everyday products combining whole nutritional values, user-friendliness, and above all, tastiness. They are perfect for families, and intended to provide great pleasure and healthy nourishment for people of all ages throughout the world.
Over the years Bel has developed a portfolio of over 25 international and domestic brands strongly positioned in their individual markets in which The Laughing Cow is sold in about 100 countries. Much of Bel’s success is in no doubt built on brands that offer a new approach of eating cheese.
2.3 Brand Source
The Laughing Cow was officially launched in 1921 by Léon Bel. Since then, The Laughing Cow has been relished by many generations of consumers and it now makes part of a large trend of products. It is a brand that fills a distinctive place in the history of cheese making. The Laughing Cow introduced a whole new approach of eating cheese, due to the unique recipe combining a sole flavour and a creamy, melting texture.
Originating from France, The Laughing Cow is no doubt an international cheese, consumed in more than 100 countries on five continents, from Africa to the USA, from England to Japan, and to Australia. Reflecting various languages and cultures, The Laughing Cow has a different name in each country. Initiating a new marketing approach when launched and still much active today, The Laughing Cow has (no doubt) a truly audacious identity and personality. (ManassenFoods, 2005)
2.4 Target
Bel's plan for growth is propped by a motivated and expressive mission to bring smiles to families universally, through the pleasure of its products made with ‘dairy goodness’. (Bel-group, 2012) The organization (Bel) has identified the world and especially the European in-home and take-out lunch market as a segment of increasing demand, with research conducted by the firm signifying the home-made lunches have increased in popularity in the UK since the start of the recession. The firm also learnt that the UK consumers are looking for simple ways to add more variety to their lunches. (Dairyreporter, 2012). Bel group’s products (as a result of it research and discovery) have attracted 400 million existing consumers and the Group also targets to attract up to 600 million additional by 2020 (Bel-group, 2012)

2.5 Distribution channel
To the makers of increasingly (emerging) everyday food such as the case of Bel group and ‘the laughing cow’, availability and convinience are the major concerns and priority in its sales and marketing strategies. Lovers of cheese( and shoppers in general) want to grab portions from the nearest local stores or throw boxes of ‘The laughing cow’ into the trolley as they make a brief shopping and thereby expect that it be available at the point of need. The Bel group has identified these needs for availability and convinience in effective reach to this growing number of consumers and its active distribution channels to the shelves of stores and supermarket.
2.6 Competitors
As much as Bel group is a strong player in the cheese and dairy market, there are also some competitors in the industry that keeps them on their toes. Some of such (in the UK) are
Adams foods: A major and strong player in the UK food industry and supplier of pre-packed hard cheese, supplying every major UK food merchant as well as the wholesale, convenience and food service sectors with over 200 million packs sales record per year. Adams foods also have a emerging butter business through it portrait ‘Kerrygold’ brand (adamsfoods, 2012), which makes it a major competitor of Bel group in the UK.
Alvis Bros: Alvis bros has also been a strong player in the UK dairy market since 1952, producing over 60 tons of wide range of traditionally handmade cheese, that are available in wide range of sizes and shapes (AlvisBros, 2010)
There are also other notable competitors in market like the Barber’s (the makers of the Maryland cheese brand), the Belton Cheese Ltd, Bradburys, Brue Valley Farms and so many others (outside the UK, in Europe and the rest of the world) that space will not permit me mention. The dairy and cheese market in Europe (using the Uk as a point of reference) and other part of the world is a highly competitive market, but Bel group and ‘the laughing cow’ remain a strong, major and relevant brand of all time.
2.7 Strategy

 A simple and sustainable business model

Bel's business is devoted to the production of branded cheeses. This strategic positioning is the basis of the Group's establishment, and it motivates the performance of Bel's inspiring and bond-building brands, which for the most part have made them outstanding in their respective markets.
Bel also maintains a unique technological know-how in food production, with notable cheese-making competence, specifically in processed cheese, and proficiency in miniaturization. These competitive advantages have impelled the Group to the title of the world's third-leading manufacturer of branded cheeses and the world leader in the portion segment.
Bel's capital structure is also a strong strategic asset, facilitating the Group to firmly manage its growth and ensure its sustainability.

Brands with strong growth potential

While Bel's five core brands, The Laughing Cow, Kiri, Mini Babybel, Leerdammer, and Boursin, are all precisely positioned, they share some common values, including a certain reverence, a healthy and fun eating experience, and personalities that can be modified to local eating habits. To further support this is the fact that consumers in many countries consider The Laughing Cow to be local brands.
These brands have remarkable growth potential in markets where they are already sold, as well as in new territories. (Bel-group, 2012)
A fine understanding of markets to extend product ranges.
The Laughing Cow cheese blocks launched in 2011, and precisely intended for eating habits in the Ukrainian market, Boursin Gourmet, targeted at American consumers when serving cheese and crackers among loved ones or Kiri used in cake recipes in Japan and Corea (Bel-group, 2012).
A strong sense of marketing and distribution that has made Bel products appealing, visible and accessible.
Bel group mentioned on one of its web pages that The High Farm Musical advertising campaign launched in 2010 did increase sales records of The Laughing Cow by 6% in Western Europe. The Group as I observe is also always willing to experiment new distribution and sales initiatives, an example of which is in the Congo, where Bel products are sold on the street by women. (Bel-group, 2012)

Market leadership strategy

Bel had started following an international growth strategy early enough. Presently, its products are spread in about 120 countries on five continents.
Bel's growth is bolstered primarily by efforts to strengthen and grow its market positions. Consequently to its international expansion, the group has instituted a presence in geographical regions with high organic growth possibilities. Bel implements its growth strategies to each territory. The pursuit for size is not necessarily the goal, but the objective is to be a frontrunner in the cheese and dairy markets and segments.

New territories to explore

The Group's growth is also a reflection of its willingness to expand into new geographical territories. Bel (at the moment) is already a market leader in Africa, but the continent is far from been totally won as there are still a number of untouched markets worth exploring. Such also is the instance in Asia and South America. In proportion to Bel's mission to share smiles with families everywhere, taking over new region and breaking new grounds come with new challenges for the organisation, that understands that (in the real sense) its products cannot entirely be accessible to all.

Over the years, however, Bel has been running a development program to bring its dairy products to the highest number of people. In 2011, it launched Goodi, a pilot program in Vietnam. Goodi is a hybrid product containing rice, dairy proteins with vitamins and nutrients modified to meet the nutritional basics of Vietnamese children.
The project gives highlight to Bel’s nerve to go further than just cheese to make its mission a reality. Furthermore, as a part of its development program, and in it quest to exploring new territories and reaching more people for the purpose of organisational growth and sales increase, in 2011, Bel group launched a campaign in Netherlands, Europe, marking the 90th anniversary of  the laughing cow and the campaign details and result are as analysed below.

The Laughing Cow’s 90th Anniversary Campaign in Netherlands, Europe
Bel major brand The Laughing cow is no doubt the leading spreading cheese in the world, but the group sure understands there is more to be done to remain as relevant and significant in the market. In 2011 as the group celebrated its 90th anniversary, Bel Netherlands employed the services of Weber Shandwick (a public relation expert) and interactive agency IN10( a brand communication expert) to help mark the anniversary by engaging children between the ages of 7 to 12 and their mothers. This it did in its pursuit to create more awareness, expand and make more sales.
The objectives of the campaign were to further develop the public relation and to promote awareness of the brand and the Laughing Cow's 90th anniversary, in paid, earned and shared media, and accomplish brand loyalty and engagement. The business goal was to create the Laughing Cow's biggest ever promotion, with target sales volume growth of at least 3.5% (PRWeek, 2012).
Campaign Strategy/ Communication tool
The campaign needed to stress The Laughing Cow's brand values, which are ‘Sharing Smiles', goodness, fun and delight, and stay true to the positioning as a healthy cheese snack for children and families.
The team generated an online club – The Secret Order of the Laughing Cow – and had children to sign up as members and help the Laughing Cow find the best places to swim, skate, or visit a museum in several ‘Secret Missions'. Members of the Secret Order and key journalists, together with retailers and other relevant third parties, also observed the Laughing Cow's 90th anniversary party, which took place in an amusement park, and included setting a Guinness World Record for gathering the most people dressed as cows in one place. Activities at the party included a quiz, a survival challenge, rodeo bull riding, cow milking and a Laughing Cow theatre show. Weber Shandwick made coverage before and after the event and made a social media release with a Facebook and Twitter link.
Campaign Evaluation
The campaign produced 106 online articles, 22 pieces of print coverage and three radio items. The world record attempt was mentioned in more than 80 tweets. The campaign engaged 7,500 kids and parents by inviting them to the party, and 250 people took part in the Guinness World Record attempt. The Secret Order signed up 1,730 members in its first year.
Sales in the Netherlands increased by 7.5% from January to October 2011, representing record volumes for the brand. Household penetration increased by 9.5% in Q4 2010 - Q3 2011, compared with the same period the previous year. The Laughing Cow is over-performing in the total cheese spread market: according to Nielsen Data, volumes are up by +6.9% - much higher than total market growth (+2%). (PRWeek, 2012)
Campaign Results
This campaign combined the Laughing Cow's historic assets with making the brand relevant for today's children. The campaign allowed kids to ‘share smiles' with friends and parents while enjoying outdoor activities and healthy snacks, and forged long-term relationships with children and parents through the online club. (PRWeek, 2012)
3. Conclusion
Marketing as the heart of a business determines the survival of an organization.
How an organization is perceived by the general public goes a long way to determine either it acceptance or rejection i.e its success or failure as the case may be.
Staying relevant in business is more than just conceiving an idea or creating a fascinating product, it is important to determine what such good or service stands for (Kenneth E. Clow and Donald Baack, 2012) - its value and essence, the needs or want it is to meet as well as determining who these needs and wants are meant for (a target market). But far beyond these is creating a sustainable relationship, not just with these target audiences, but also with future user- potential customers, and relevant stake holder, through a well-planned, steady and dynamic marketing communication strategy (Fill, C. 2009); taking an advantage and a good use of little things that count like a clear vision, a direct mission, stable and consistent colour codes and messages.
Organizations build a continuous and lasting relationship with their customers/ stakeholders by employing the right marketing communication techniques which are advertising, direct marketing, public relations, personal selling, sales promotions and/or sponsorship (Fill, 2009). The integration of these techniques and the marketing mix (product, price, promotion, place, packaging, positioning and people) (Clow.K.E., Baack.D. 2012) make the right marketing communication strategy.
Integrated marketing communication in other words is the interconnectivity and the relationship between an organization’s marketing strategy, its vision/ mission, product and the organization message, message composition and its choice of media. It is also the rapport between an organization and the house agencies as well as its communication with the stakeholders.
 To take a stand however as to conclude this course work, I maintain that there are no particular laid down rules or steps as to integrating an organization marketing strategy but to understand the market, put customer satisfaction first and reach them appropriately through all the marketing tools (Dahlen,M., Lange,F. and Smith, T., 2010) as I believe the Bel group and especially The Laughing Cow has done in its over 90 years in business. I suppose the brand is doing well and the image has been well accepted in all the markets where the Bel group is present trading and do hope the group will keep the trend, work more (particularly) on its online sales  and stay relevant in the world branded cheese market.








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