SUBMISSION 7

“SWOT ANALYSIS”

SUBMITTED BY:
4M2
DEPANTE, DWIGHT DUSTIN M.
DERRAMAS, MAY ANNE D.
LAZARO, SHIELA T.
 VII. STRENGTHS, WEAKNESSES,
OPPORTUNITIES, AND THREATS

A. STRENGTHS

Product

Designed to have premium quality for spreading

Queensland Butter is made from premium imported natural ingredients which

specializes a full-bodied creaminess that’s fit for royalty. It indicates that sense of

sophistication, which means a perfect quality it may offer, that is suitable for the

people.

The significance of its packaging

Queensland Butter’s packaging has colors of red and yellow. Since Queensland

Butter is known for its royalty, the color red from its packaging symbolizes strength,

power, and determination; as for the color yellow, it symbolizes intellect, honor, and

loyalty. These colors have made its way to be familiar and to be more aware in the

sights of people. 1

Niche marketing strategy

Queensland Butter has been known in the market for using a niche marketing

strategy which could build/empower more brand loyalty to a specific type of area.

Since it’s an expensive product, the main target is the upper-class sectors that are

1
http://www.color-wheel-pro.com/color-meaning.html
https://www.bourncreative.com/meaning-of-the-color-yellow/
 not price sensitive. The marketing approach lets you provide customers and services

they need and desire.2

Price

Most varied price quantity and pack sizes

Queensland butter offers different sizes in a wide range of prices as well. It is

available in 2 different sizes which are pack sizes and tin cans. For pack sizes, it has

225 grams. And for the tin cans, it is available in 175 grams and 500 grams. The

prices are Php 97.50, Php 141.25, and Php 344.00 respectively. Even though the

prices are impeccable, the customers would still appreciate and be satisfied with

what the product could offer by giving its high-class quality.

Place

Aims to lead the household name in the dairy industry

New Zealand Creamery, Inc. is located in Makati City. It has its own

manufacturer that supplies/distributes products to wholesalers and different retailers.

The company’s advantage is the Store-based retailing which operates and conducts

business from a fixed location thereby making it the widest form of retailing.

2
https://product2market.walkme.com/advantages-disadvantages-niche-marketing
 Promotion

Influencers being used for the advertisement

New Zealand Creamery, Inc. uses its promotion through advertising in which they

hire popular and influence people to develop their products. Three of the actors that

we know in the industry are Charice Pempengco, Chef Jac Laudico, and Chef Lau

Laudico.

TVC Commercials

New Zealand Creamery, Inc. uses 15-seconds to 30-seconds commercials in

television. A partnership with MGM advertising & Communications Services, Inc.

helps the company’s purpose to establish a perfect way of blending the product in

every food.

B. WEAKNESSES

Product

Large package sizes that is being offered

Since Queensland Butter is being sold in big sizes, it’s hard to consume the

product completely. The bigger the sizes we buy, the longer it takes to buy another

one of their product. People prefer small sizes like stick butter because it is more

convenient to finish it up rather than storing it and then saving it for the next

consumption. Therefore, the package size will most likely be a factor in determining
 the frequency of purchase and price. Moreover, the storage and transportation cost

are also dependent on the product’s package size. 3

Niche marketing strategy

Since the company has been known for using niche marketing strategy, the

strategy is also considered as a disadvantage primarily because it only focuses on a

specific type of target market. However, this does not necessarily mean a small

portion of the market, but rather involving only a target market with specialized

offering.4 Because of this, it is a challenge for the company to possess a larger profit

margin in the market leaving a limited room for growth.5

Price

Known as an expensive product

Queensland Butter is commonly known for its high-priced product. Due to that

fact, it weakens its demand because it only emphasizes a specific group of market

which are the upper-class people. Moreover, the high price point of the product

prevents a large portion of less well-off customers which can bring to a loss in profit.

3https://www.researchgate.net/publication/227343985_Package_Size_Portion_Size_Serving_Size_Marke

t_Size_The_Unconventional_Case_for_Half-Size_Servings
4 https://www.iconvisual.com.au/about-us/news/the-advantages-and-disadvantages-of-marketing-to-a-

niche-audience
5 https://product2market.walkme.com/advantages-disadvantages-niche-marketing/
 Place

Lack of placement in every grocery store

One weakness of Queensland Butter is that it isn’t distributed in every grocery

store. It is targeted only the high-end groceries like SnR, Merkado Supermarket, and

more. And in every grocery store, it only sells in limited number; to be more specific,

the tin can only have 2-3 butters in some stores.

Dependence upon distributors

The company depends on several distributors and suppliers existing in the

market. External dependences might endanger or restrict the firm’s autonomy since it

is induced to comply to its distributors for its survival. 6

Promotion

Lack of innovation and awareness

Queensland Butter hasn’t innovated nor invented any new ideas yet to improve

its product. Its brand image has been maintained since it was created. People are still

not aware about this product due to large scale of competition like Magnolia Gold

Butter and Anchor Butter. Because of competitor’s cheaper price that they offer,

Queensland Butter is somehow forgotten or ignored.

6 https://www.sciencedirect.com/science/article/pii/0024630189900162
 C. OPPORTUNITIES

Product

Smaller size opportunities

Based on the UAI that we had during our market research, the reason why

Anchor Butter and Magnolia Gold Butter are booming the market, is because of its

convenience. Queensland Butter needs to offer more convenient variation so that it

could keep up with the competition.

Ketogenic Diet

A new trend in diet is the Ketogenic. Fundamentally, it is known for being a low-

carb high-fat diet where the body produces ketones from the liver to be used as

energy. 7 The thinking that eating a lot of fat is bad has been changed. Dozens of

studies have arrived at single conclusion: consumption of saturated and

monosaturated fats has no effects on risks of heart disease. Most fats are even good

and are essential to our health.8 The overall perception of butter as a fat shifted as

the consumers grow interest in ketogenic diet.9 People who follow this diet associate

butter into their brewed coffee and other meals as a source of fat.

7 https://www.ruled.me/wp-content/uploads/guide-to-keto-diet.pdf
8 https://www.tasteaholics.com/pdf/ultimate-guide-to-keto.pdf
9 http://0-www.portal.euromonitor.com.ustlib.ust.edu.ph/portal/analysis/related
 Price

Same price range to the competitors

Queensland Butter needs to offer a cheaper and affordable prices to keep up

with the market. Now that inflation rate has been increasing, consumers want to buy

products that are low.

Place

Tie-ups with hotels and restaurants

Hotels and restaurant chains are growing segments of today’s market. Trends

show that tourism serves as the main market for hotel and restaurant services

thereby increasing the visitor traffic for the past decade; hence, resembles a boom in

the industry. 10 Queensland must look forward into tying up with this industry as it will

help in increasing profitability.

Promotion

Advertise globally

Since Queensland Butter’s target market is the upper-class people, it should

advertise internationally. It should focus and target the developed countries such as

Japan, France, United States of America and more. Since developed countries are

much financially stable, more people could possibly acquire this product. By this, the

awareness from the people would increase. But expanding the promotion globally

comes with a huge risk.

10 https://dirp4.pids.gov.ph/ris/taps/tapspp0105.pdf
 D. THREATS

Product

Strong competitors

Queensland, being part of the fast-moving consumer goods, has a lot of

competitors like Anchor, Magnolia Gold, Elle & Vire, etc. These brands have a strong

market position and dominates the market. Quality considerations, features and

pricing are few key considerations when it comes to the intensity of competitive

rivalry.11 Hence, strong competition is a huge threat for Queensland Butter if ever the

value and quality of the product is not leveraged enough for it to acquire sufficient

sales.

Increasing health awareness

The consumption of dairy products, especially butter, is reduced due to the

increasing health awareness of the market.12

Consumers of developing countries like the Philippines currently perceive dairy

products as healthy. However, attitudes and opinions could still turn negative.13

11 https://www.forbes.com/sites/martinzwilling/2012/04/24/a-stronger-economy-means-more-competitive-
threats/#5d280ecf7df9
12 https://www.marketing91.com/swot-analysis-amul-butter/
13 https://www.mbie.govt.nz/info-services/sectors-industries/food-beverage/documents-image-

library/Dairy%20sector%20review%202011%20-PDF%202.3%20MB.pdf
 Price

Price-sensitive market

Overall, the food market is quite price-sensitive. The more options a consumer

has, the more sensitive he is to price changes in most circumstances.14 Also, the

sudden changes in prices affect the total sales and cost of production.

Alternative solutions or product substitutes

Consumers tend not to differentiate dairy products such as milk, butter and

cheese. Therefore, substitutes at a much cheaper price become a viable option if

they compete at reduced prices.15 Moreover, availability and price performance as

elements of barriers to exit could make consumers shift away at some level. 16

Low-cost competitors

Most low-cost players alter the behavior of customers permanently through

getting the market to accept products with fewer benefits at lower prices.17 These

companies stay ahead of market leaders probably because consumer behavior

works in their favor. According to Nirmalya Kumar’s research, if a business was able

to get a consumer to buy its products or services while price is taken into

consideration, it will only lose the customer if another competitor offers a lower

price.18

14 https://smallbusiness.chron.com/price-sensitivity-product-65805.html
15 http://studenttheses.cbs.dk/bitstream/handle/10417/5491/stefano_paternoster.pdf?sequence=1
16 https://www.forbes.com/sites/martinzwilling/2012/04/24/a-stronger-economy-means-more-competitive-

threats/#5d280ecf7df9
17 https://ais.ku.edu.tr/course/17479/9_Strategies%20to%20Fight%20LowCost%20Rivals.pdf
18 https://hbr.org/2006/12/strategies-to-fight-low-cost-rivals
 Place

Philippines as an Asian country

Non-dairy substitutes like soy better suits Asian tastes and preference. 19 With

over 4.3 billion citizens and a high lactose-intolerant population, this provides a wide

scope for lactose-free products to enhance horizons in the Asian market as it is

expected to grow exponentially.20

Promotion

Social media used ineffectively

With almost 60, 000 likes, Facebook is being utilized inefficiently by the New

Zealand Creamery Inc. If you go through their Facebook page, you will see various

recipe video tutorials with ingredients that include their different product offerings like

Queensland butter, Che-Vital Quickmelt Cheese, Golden Crown Butter Compound,

etc. These videos are posted with the hashtag

#CookingAtHomeWithNewZealandCreamery and contains the same content with

their Youtube page uploads. Last September 12, they posted a Christmas-related

promotion featuring their Ques-O de Bola informing the customers to send them a

private message along with the inquirer’s contact number to know the product’s price

and other details.21 Additionally, their website https://newzealandcreameryinc.com

contains the same recipe videos. The website should have been used as a platform

to establish New Zealand Creamery as a significant and differentiated brand. Also,

19 https://www.mbie.govt.nz/info-services/sectors-industries/food-beverage/documents-image-
library/Dairy%20sector%20review%202011%20-PDF%202.3%20MB.pdf
20 https://www.mordorintelligence.com/industry-reports/asia-pacific-dairy-alternatives-market
21https://www.facebook.com/newzealandcreameryinc/photos/a.699589206885264/1034559660054882/?t

ype=3&theater
 information about the company is limited to its history and vision thereby losing the

opportunity to uniquely position its products to the site’s viewers.

VIII. SWOT MATRIX

Table 8.1

SWOT Matrix

Strengths Weaknesses Opportunities Threats

Product Designed to Large package Smaller size Strong

have premium sizes that is opportunities competitors
quality for being offered
spreading Increasing
Niche health
The marketing awareness
significance of strategy
its packaging

Niche
marketing
strategy

Price Most varied Known as an Same price Price-

price expensive range to the sensitive
quantity and product competitors market
pack sizes
Alternative
solutions or
product
substitutes

Low-cost
competitors

Place Aims to lead Lack of Tie-ups with Philippines

the household placement in hotels and as an Asian
name in the every grocery restaurants country
dairy industry store
 Dependence
upon
distributors

Promotion Influencers Lack of Advertise Social media

being used innovation and globally used
for the awareness ineffectively
advertiseme
nt

TVC
Commercials

IX. KEY SUCCESS FACTORS

The factors that greatly contributed to the success of Queensland Butter are the

following:

Premium Quality

From an enticing packaging to its full-bodied creaminess, Queensland Butter

reserves its image by maintaining and sustaining a premium quality. Although it is not in

an affordable price, the company promises its customers to deliver the product very

well.

Unique and Distinct Taste

Queensland butter has been very consistent with the flavor of their butter as it

already becomes one of their competitive advantage. It is also the reason why they

continue to exist in the market despite of low brand awareness and sales compared to

its other competitors.