Red Rock Deli
Red Rock Deli is an Australian snack brand. Headquarter in Laver ton North, Australia, Red Rock Deli provides consumers with chips products. The company continue to dominate the Australian snack industry by producing products with a great Aussie taste. With saturation in the local market, Red Rock Deli has now entered international markets, including the U.S. Red Rock Deli targets everyone in the market, but the main focus is on children and young people. This segment is the largest consumer of snacks. The company sells four major products: sea salt, fire-roasted jalapeno, sweet chilli & sour cream, and lime & cracked pepper. Customers can buy the products from designated stores or online on the company’s website.
Key Issues Affecting Red Rock Deli and Industry
The Australian snack industry where Red Rock Deli operates continue to grow. A report released by Statista shows that the industry’s revenue will reach 3165 million USD in 2021, with the market growing at a rate of 1.1 per cent. The average per-person consumption is projected at 12.1kg in 2021. Research reveals that 90 per cent of Australians eat snacks regularly (Neo, 2020). However, the rising trend towards a healthy lifestyle is likely to reduce this percentage in the future. The report shows that healthy snacks continue to experience a high growth rate, with the segment recording a 3.2 per cent growth rate (Neo, 2020), compared to the industry average of 1.1 per cent. This trend shows that the industry is moving towards healthy snacking. Competition remains the biggest challenge facing the industry. There are many businesses in Australia, both small and large, selling snack products. However, the shift towards a healthy lifestyle creates an opportunity for business to create healthy products and overcome the competition. With increased competition, there is a need for Red Rock Deli to become more innovative and introduce new products will a high demand and less competition.
Product Development Model
Based on the trends in the Australian, Deli veggie chips is a new product for Red Rock Deli for the health-conscious consumers. The product is made from both root vegetables and leafy greens. The products from leafy greens are thin and crispy, while products from root greens are crunchy and close to normal chips. The products come in different sizes, including 100g, 250g, 500g and 1kg. The company can produce products in different colours, but golden brown is the most preferred. Compared to other products in the market, this product has a high nutritional value with low sugar and fat content. The product is suitable for individuals with health challenges, such as obesity and diabetes.
The development of this product followed the framework for successful new product development. The process began with idea generation. (Bhuiyan, 2011). The most important consideration during idea generation is the specific issues and gaps that present businesses and products have failed to meet. Idea generation includes activities such as market research to identify the needs of consumers. After the idea generation, the next step is for the team to screen through the ideas and identify the most practical ones. Compared to other idea generated, producing Deli veggie chips emerged as the best idea for the company. This product meets the need of the growing healthy conscious Australian snack consumers.
Concept testing and business analysis is the third step.
At this stage, the team evaluates
the suitability of the product and value proposition. The product should provide the consumers with a unique value compared to existing products in the market. Concept testing revealed that Deli veggie chips are suitable products as most consumers want products with a high national value and low sugar content. Thus, the product is a worth investment for Red Rock Deli.
The next step in the design thinking process is to develop the product. At this stage, it becomes important to create a prototype and use it to collect feedback for further improvement. Market testing comes after prototype development.
At this stage, the product is tested to evaluate whether it meets consumer needs and expectations. Success at this stage will lead to commercialisation, where the product is released to the market. Using these product development stages made it easy to design and develop Deli veggie chips for Red Rock Deli.
Marketing Mix
The marketing mix outlines important variables a business should control when designing and implementing a marketing strategy. These variables include product, price, place and promotion, known as the 4Ps of the marketing mix (Thabit & Raewf, 2018). Pricing is a vital variable that a business needs to control. With increased competition in the market, the product’s success depends on the effectiveness of a pricing strategy. With an additional value provided to consumers, a premium pricing strategy is the most appropriate for Deli veggie chips. Distribution is another important aspect for Red Rock Deli. The company should ensure the product is readily available to consumers.
As such, it should liaise with different stores in the country, including wholesalers and supermarkets to supply the product. With e-commerce increasingly becoming common, the company should also consider selling the product online. Lastly, the business needs a strong integrated marketing campaign (IMC) to promote the product. With digital platforms becoming common, the business should consider social media and internet marketing. Placing advertisements on social media platforms, especially Facebook, will enable it to target health-conscious consumers online. The business can also place ads on the internet through Google AdSense. Additionally, Red Rock Deli can use online influencers and nutritionists in the country to market the product. /////////