Graze Market Audit

Report
Produced for Joanna Allen, CEO

MAY 11 2022

20004362
Understanding the Principles of Marketing
Module Code: UMODDP-15-1
1500 Words

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Executive Summary
This report will introduce Graze as a brand and the market in which they operate, which will
include a perceptual map of the market. From this point, the current marketing mix will be
analysed, giving the opportunity for any strengths and weaknesses to be identified. This will
also include a goods/services continuum, as well as a product anatomy model to make the
structure of the company clearer. The report will showcase the importance of a new
marketing campaign for Graze, in order for them to remain a well-known name within the
healthy snacking industry.

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Table of Contents
Executive Summary ........................................................................................................................ 2
1.0 - Brand Overview ...................................................................................................................... 4
2.0 - Critical Success Factor ............................................................................................................. 5
3 - Current Marketing Mix .............................................................................................................. 6
3.1 – Product.......................................................................................................................................... 6
3.2 – Price .............................................................................................................................................. 6
3.3 – Promotion ..................................................................................................................................... 7
3.4 – Place ............................................................................................................................................. 7
3.5 – People ........................................................................................................................................... 7
3.6 – Process .......................................................................................................................................... 8
3.7 – Physical Evidence ........................................................................................................................... 8

4 - Recommendations ................................................................................................................... 10
4.1 – Product........................................................................................................................................ 10
4.2 – Price ............................................................................................................................................ 10
4.3 – Promotion ................................................................................................................................... 10
4.4 – Place ........................................................................................................................................... 10
4.5 – People ......................................................................................................................................... 10
4.6 – Process ........................................................................................................................................ 11
4.7 – Physical Evidence ......................................................................................................................... 11

References ................................................................................................................................... 12

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1.0 - Brand Overview
Graze was founded in 2009 by Graham Bosher, with an aim to create a healthy alternative to
snacking with strong customer relations (Ross, 2014). Graze quickly found success in their
business through their customisable subscription service, regarding product contents and
delivery times (Wallace, 2019). This was a new concept to consumers, which allowed Graze
to stand out. Due to this, Graze reached over 100,000 weekly subscribers in just 3 years
(100stories, 2017).

Graze have since become a household name, providing healthy snacks which are plant
based, low in sugar, and provide nutrients to the customer (Graze, 2022a; MarketLine, 2020).
Additionally, Graze have been at the forefront of ethicality and sustainability, such as their
pledge to become carbon neutral by 2030 (Graze, 2022b).

Graze use the “benefits sought” approach (Haley, 1968) to develop their products. This is
made clear by the fact that their products are produced for those who wish to eat healthily but
may not have the time – for example, those who commute daily, or need to make meals in
advance.

Figure 1 represents a perceptual map

of different brands within the healthy
snacking market. It is clear that
Graze is priced highly in comparison
to most other key players in the
market such as Nature Valley and
Kind (Price, 2022), whilst also
providing a fairly average fat and
sugar content.

Figure 1 - Perceptual Map

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2.0 - Critical Success Factor
Keeping consumers aware of your brand is critical when other brands may try to enter the
market. Consumer preferences are shifting, with 6 out of 10 people trying to choose healthy
options when they snack (Caines, 2021). As well as this, a 54.55% increase in people trying
to eat healthily has been identified from 2018 to 2021 (Clifford, 2022). With the increased
demand for healthy products, it is crucial for Graze to create a new advertising campaign in
order to remain prevalent in the public eye. This should be done through a social media
campaign on sites such as Facebook, Instagram, and TikTok. Through doing this, Graze can
create a more targeted advertising campaign, improving communication with potential
customers (Vinerean, 2017). One key point to include in the campaign would be the taste of
the product. This is because 73% of customers feel that the taste of a snack is more
important than its nutritional aspects (Caines, 2022a). However, this may be difficult due to
the fact that the advertising is only over social media.

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 3 - Current Marketing Mix
3.1 – Product
Graze offer customers a non-durable product (Brassington, 2013) - plant-based snacks with
no artificial ingredients as a healthy alternative to more popular snacks, such as crisps or
chocolate (Graze, 2022a). As society shifts towards healthier eating habits (Clifford, 2022)
and there are soon to be restrictions on HFSS products (Caines, 2022b), customers will be
more likely to purchase Graze products to aid their health.

Figure 2 represents the

product anatomy model
for Graze, highlighting
that the core product is a
range of healthy snacks.

Figure 2 - Product Anatomy Model

3.2 – Price
Graze use a value-based pricing approach (Baines et al., 2021). As a healthy diet is
important for customers, they will be willing to pay more to receive the desired nutrients.
Therefore, Graze are able to increase the price of their products.

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3.3 – Promotion
To reach potential customers, Graze use multiple techniques within their promotion. The
most notable of which would be their fun and approachable style (Sentance, 2016). More
people will be interested in the brand due to this, and be more likely to purchase Graze
products. An example of this style would be their debut TV advert in 2021 (graze UK, 2021),
which featured a talking squirrel as the CEO. This may attract the attention of children who
could encourage their parents to buy Graze products, widening Graze’s customer base.
Graze also operate a “refer a friend” scheme for current subscribers. Berkman and Gilson
(1986, cited by Baines et al., 2021) suggest that word-of-mouth recommendations are
thought to be objective and unbiased, which in turn results in greater trust in the brand from
new customers.

3.4 – Place
To reach potential customers and further understand consumer tastes, Graze use an
intensive, multichannel distribution structure (Baines et al., 2021). This is made clear from
them selling their products both directly and through intermediaries. Regarding directly,
Graze offer individual product orders and a subscription service, meaning that customers can
receive automatic orders directly from Graze. They also sell their products in shops such as
Tesco, Asda, and Boots (Graze, 2022e).

3.5 – People
Graze offer the chance to communicate with a member of their “friendly customer service
team” (Graze, 2022d) if you have any queries, regarding both direct sales and those from
intermediaries. Furthermore, Graze use staff during the selection process for Consumer’s
subscriptions, as they use tastes and dietary requirements to “handpick” a box for you
(Graze, 2022c). Both of these methods contribute to higher levels of consumer satisfaction,
as stated by Cumby and Barnes (1998).

Figure 3 shows a goods/services continuum for Graze; however, it includes two different
markings due to Graze’s multichannel distribution structure. Regarding in-store sales, Graze

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is considered to be tangible. This is due to there being no contact with Graze themselves.
Alternatively, the subscription service is in the middle of the continuum, due to customers
receiving the product, but also communicating with Graze staff.

Figure 3 - Goods/Services Continuum

3.6 – Process
Regarding direct orders from the website, Graze offer the chance for customers to choose
their products or submit preferences, allowing staff to “handpick” suitable products (Graze,
2022c). From this point, customers will receive the products through a home delivery service
– making the process much easier for the customer. However, Graze do not offer returns,
due to the “perishable nature of their snacks” (Graze, 2022f).

Regarding products sold in stores, retailers will sell Graze’s products, acting as an
intermediary. This gives customers no direct contact with Graze, meaning that enquiries
would be directed to the purchase point.

3.7 – Physical Evidence

Graze’s packaging represents the products quality and values, as it is strong, fun, and
sustainable – all of which are attributes that customers desire. As well as good packaging,
Graze operates a high quality, simple to understand website, allowing consumers to easily try
Graze.

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Additionally, Graze send out emails containing offers to current customers (Sentance, 2016).
This makes customers feel valued, as well as keeping Graze’s products in their mind.

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4 - Recommendations
4.1 – Product
Due to the CSF being a new advertising scheme for Graze, there would be no reason to
change the products already being sold by Graze.

4.2 – Price
Graze should continue to operate a value-based pricing approach. Due to customers wishing
to be healthier (Clifford, 2022), they will continue to pay higher prices for their products in
comparison to cheaper, less healthy alternatives as it will enable them to match their values.
Additionally, through charging higher prices, Graze should use a proportion of these profits to
invest in their new advertising scheme.

4.3 – Promotion
Graze should aim to target a range of social media channels such as TikTok, Facebook, and
YouTube. Through doing this, the company can benefit from greater exposure to a large
range of people. This should be done through adverts which contain a mix of both information
and emotion-based messages. This will ensure that customers recognise Graze’s fun and
lighthearted characteristics, whilst being presented with the information needed for them to
find out more about the brand.

4.4 – Place
Graze should continue to exercise its hybrid distribution channel, supplying products both in-
store and online. Therefore, the place of Graze’s products would not be affected by the CSF.

4.5 – People
Graze should invest in staff who are able to respond to customer queries at a faster rate. Due
to the range of new customers being reached, it is important for the company to be able to

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respond to any potential questions efficiently to maintain the organised and friendly image of
the brand.

4.6 – Process
Purchasing a Graze product either in store or online will (for the most part) remain the same.
Products will still be available to purchase in stores and online, with the option of a
subscription service. However, a direct link to the graze website should be placed within the
new advertisements. This is to ensure that the process of ordering a product or finding out
more information is efficient for new customers.

4.7 – Physical Evidence

Through creating new adverts for social media, customers will be reminded of Graze even
when they are not considering snacking. Through ensuring that the adverts uphold Graze’s
current style, a strong sense of continuation will be shown across all of Graze’s products and
adverts.

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References
100stories (2019) Graze. Available from: https://100stories.co.uk/stories/graze/ [Accessed 25
April 2022].

Baines, P., Fill, C., Rosengren, S. and Antonetti, P. (2021) Fundamentals of Marketing
[online]. 2nd ed. Oxford: Oxford University Press. [Accessed 15 April 2022].

Caines, R. (2021) Sales of non-HFSS Snacks Set For Growth as Restrictions Hit HFSS
Variants [online]. Mintel Group Ltd. [Accessed 11 April 2022].

Caines, R. (2022a) Crisps, Savoury Snacks and Nuts [online]. Mintel Group Ltd. [Accessed
25 April 2022].

Caines, R. (2022b) Attitudes towards HFSS Food & Drink [online]. Mintel Group Ltd.
[Accessed 25 April 2022].

Clifford, E. (2022) Attitudes towards Healthy Eating - UK [online]. Mintel Group Ltd.
[Accessed 26 April 2022].

Cumby, J. A., Barnes, J. (1998) How customers are made to feel: The role of affective
reactions in driving customer satisfaction. Customer Relationship Management. 1 (1), pp 54-
63. [Accessed 25 April 2022].

Graze (2022a) Our Health Promise. Available from: https://www.graze.com/uk/about/our-

health-promise [Accessed 10 April 2022].

Graze (2022b) Sustainability. Available from: https://www.graze.com/uk/about/sustainability

[Accessed 10 April 2022].

Graze (2022c) How Graze works. Available from: https://www.graze.com/uk/about/how-

graze-works [Accessed 1 May 2022].

Graze (2022d) How can we help? Available from: https://uk.help.graze.com/hc/en-gb

[Accessed 1 May 2022].

Graze (2022e) Graze in stores. Available from: https://www.graze.com/uk/in-stores

[Accessed 30 April 2022].

Graze (2022f) Can I return Graze boxes? Available from: https://uk.help.graze.com/hc/en-

gb/articles/115000311849-can-I-return-graze-boxes- [Accessed 1 May 2022].

graze UK (2021). Meet our Chief Eating Officer. YouTube [video]. 10 May. Available from:
https://www.youtube.com/watch?v=Hch-V-om1iA [Accessed 30 April 2022].

Haley, R.I. (1968) Benefit Segmentation: A Decision-oriented Research Tool. Journal of

Marketing [online]. 32 (3), pp. 30-35. [Accessed 20 April 2022].
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MarketLine (2020) Healthier Snacking: Changes in impulse food industry due to COVID-19
Lockdown [online]. [Accessed 10 April 2022].

Price, A. (2022) Snack Bars and Breakfast Biscuits – UK [online]. Mintel Group Ltd.
[Accessed 20 April 2022].

Ross, E. (2014) In the Spotlight … Anthony Fletcher, Graze chief executive. The Guardian
[online]. 22 November. Available from: https://www.theguardian.com/small-business-
network/2014/nov/22/in-the-spotlight-graze-anthony-fletcher [Accessed 25 April 2022].

Sentance, R. (2016) How Graze uses email marketing for customer retention. Available from:
https://www.clickz.com/how-graze-uses-email-marketing-for-customer-retention/98981/
[Accessed 30 April 2022].

Stock, S. (2016) Marketing you can learn from: the Graze way. MyCustomer [blog]. 9 August.
Available from: https://www.mycustomer.com/community/blogs/suzannestock/marketing-you-
can-learn-from-the-graze-way [Accessed 30 April 2022].

Vinerean, S. (2017) Importance of Strategic Social Media Marketing. Expert Journal of

Marketing [online]. 5 (1), pp. 28-35. [Accessed 25 April 2022].

Wallace, A. (2019) The Growth Story of Graze. Available from:

https://octopusventures.com/insights/scaling/story-of-graze/ [Accessed 25 April 2022].

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