MARK2012 Business Report

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Patrick Leal
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Table of Contents

1. Executive summary………………………….. 2
2. Introduction………………………………….. 3
2.1 Brief background information…………. 3
2.2 Scope…………………………………….. 3
3. Body of discussion…………………………… 4
3.1 Background information …………4
3.2 Theoretical framework ….…….. 4
3.3 Review of literature …………… 4
3.4 Methodology………… 5
3.5 Findings………….. 5
3.6 Discussion of findings………… 5
3.6(A) Segmentation, targeting, positioning……… 6
3.6(B) Developing new products……….. 6
3.6(C) Integrated marketing communications…… 6
4. Conclusion/Recommendations................ 7
4.1. Conclusion…………… 7
4.2. Recommendations………….. 7
5. Appendix…………… 8
6. References………….. 12

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1. Executive Summary:

This report delivers a comprehensive campaign blueprint for introducing Oatly into Australia's
PBM market, emphasising the significance of cultural and demographic insights, innovative
product strategies, and dynamic promotional tactics. It outlines the essential steps for Oatly’s
market entry, from analysing key consumer segments to developing future-oriented products and
executing an effective communication strategy. The plan is crafted from insights derived through
a case study (Ramaswamy, 2021), presenting a thorough analysis of Oatly's potential strategies
that align with the evolving values of consumers, especially those in step with the United Nations
Sustainable Development Goals (UN SDGs).

Beginning with a cultural and demographic analysis, the report identifies Generations X and Y as
the primary target audience, noting their significant impact on the PBM industry. The theoretical
framework applies the diffusion of innovation theory, advocating for new products tailored to the
unique needs of these consumers to solidify Oatly's market position. A review of literature from
sources like (Grand View Research, 2021) and (Mintel, 2020) supports the growth potential
within this demographic, emphasising the shift towards health-conscious and environmentally
sustainable choices.

The methodology adopted in this report utilises qualitative insights and quantitative metrics
within (Ramaswamy, 2021) to dissect consumer trends and market dynamics with a spotlight on
the consumption patterns of Gen X and Y. The key findings from the analysis show that Oatly’s
alignment with Generations X and Y’s values of environmental sustainability and health
positions the brand advantageously in the Australian PBM market. The report discusses how
Oatly's segmentation, targeting, and positioning strategies are effectively resonating with these
demographics. Moreover, the campaign plan extends to the brand's initiatives in developing new
products, gauging their potential to satisfy the evolving preferences and health-conscious ethos
of the target demographics. Areas for enhancement are identified, providing a foundation for
recommendations that are poised to refine Oatly's engagement with its target demographics and
reinforce its market strategies.

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The recommendations section offers strategic directives to Oatly for enhancing its market
approach. It suggests the development of health-centric offerings like vitamin-fortified oat milks
and a 'design your flavour' online platform to cater to personalization trends. Additionally, it
underscores the importance of an integrated marketing communications plan that utilises digital
marketing, influencer collaborations to authentically convey Oatly’s commitment to the UN
SDGs.

In conclusion, the report not only confirms Oatly’s potential to redefine the Australian PBM
market but, also, provides actionable recommendations for Oatly to maintain a sustainable, long-
term presence. By implementing these strategies, Oatly can ensure that its brand message and
practices are consistent with the values of its consumers and the global movement towards
sustainability as framed by the UN SDGs.

2. Introduction

2.1 Brief Background information

Oatly, the Swedish oat milk company, has been at the vanguard of the PBM revolution,
disrupting traditional dairy consumption with its sustainable and health-oriented alternatives.
With its roots in scientific research and a commitment to environmental stewardship, Oatly has
carved a niche in the hearts of consumers who advocate for a planet-friendly and healthy
lifestyle.
2.2 Scope
This report outlines Oatly’s strategic approach to entering the Australian market, with an
emphasis on Generations X and Y as key consumers. The United Nations Sustainable
Development Goals (UN SDGs) are a global blueprint aimed at tackling critical issues including
poverty, inequality, and climate change. For Generations X and Y, these goals resonate deeply,
guiding their preferences towards brands like Oatly that commit to such responsible practices.
Oatly’s commitment to sustainability dovetails with multiple SDGs, including Goal 3 (Good
Health and Well-being), Goal 12 (Responsible Consumption and Production), and Goal 13
(Climate Action), reflecting its dedication to health and the environment. Moreover, its efforts to
ensure sustainable business practices and promote community well-being also touch on Goal 8

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(Decent Work and Economic Growth) and Goal 17 (Partnerships for the Goals). Our exploration
encompasses an assessment of Oatly’s alignment with these goals through its product innovation,
marketing, and community engagement, creating a comprehensive promotion and
communication plan that not only elevates Oatly’s sustainability narrative but also harmonises
with its target demographic's values for a sustainable future.

3. Body of Discussion:

3.1 Background information

The plant-based milk (PBM) sector, shaped by health and environmental consciousness, is
growing rapidly. Oatly's alignment with these values positions it well within Australia's dynamic
market.

3.2 Theoretical framework

Oatly's strategy, guided by the diffusion of innovation theory, focuses on understanding Gen Z
and Millennials' unique traits for effective segmentation, targeting, and product positioning.
Innovation is vital, as developing new products that meet the discerning needs of these
consumers solidifies Oatly's market position. The alignment with UN SDGs, specifically those
advocating for responsible consumption and climate action, ensures Oatly's brand narrative
transcends greenwashing accusations, carving out a long-term, authentic presence distinct from
transient trends like soy milk.

3.3 Review of literature

The burgeoning influence of Generations X and Y has reshaped the plant-based milk (PBM)
industry. Grand View Research underscores the projected growth of dairy alternatives, crediting
health awareness, lactose intolerance, and veganism's rise as pivotal drivers (Grand View
Research, 2021). This shift resonates strongly with Gen X and Y, who prioritise health and
sustainability. Mintel's findings echo this sentiment, with 52% of these demographics preferring
PBMs for their health merits and environmental integrity, reflecting a significant departure from
traditional dairy (Mintel, 2020). This literature underscores the significant influence of Gen X

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and Y on market trends, emphasising the need for Oatly to align its offerings with their distinct
preferences and the UN SDGs for sustained market relevance

3.4 Methodology
This report utilises a multi-faceted research approach, combining qualitative and quantitative
analyses from (Ramaswamy, 2021). Data on consumer preferences and market trends were
collated from industry reports, scholarly articles, and market surveys, particularly focusing on
Gen X and Y's consumption patterns. The analysis of Oatly's current strategies, including
segmentation, targeting, and positioning (STP), was grounded in this secondary data. The report
also critiques potential areas of improvement, juxtaposing Oatly's innovative approaches against
industry standards and sustainable practices as framed by the UN SDGs.

3.5 Findings
The cultural and demographic analysis reveals that Generations X and Y are pivotal in the PBM
market, with a distinct preference for brands like Oatly that resonate with their environmental
and health priorities. The statistics indicate a clear trend: a significant portion of these consumers
favour PBMs over traditional dairy. Notably, these generations are also more likely to engage
with brands that demonstrate a commitment to the UN Sustainable Development Goals,
particularly those related to responsible consumption (Goal 12) and climate action (Goal 13).
Oatly’s current product offerings and marketing strategies appear to align with these preferences,
positioning them favourably within the target demographic.

3.6 Discussion of findings

The findings from this report highlight Oatly's deep resonance with the values and lifestyle
preferences of Generations X and Y, establishing a clear strategic alignment between the brand's
marketing efforts and product development with the needs and expectations of these key
demographics. Research, including data from Grand View Research and Mintel, supports this
alignment, showing a marked preference among these groups for plant-based milks due to their
health benefits and environmental sustainability (Grand View Research , 2021). For instance,
Mintel's study reveals that 52% of Gen X and Y consumers prefer plant-based milk options,
reflecting their inclination towards healthier and more eco-conscious living (Minetel, 2020). This

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trend is a testament to Oatly’s successful positioning in a rapidly evolving market, where these
generations are increasingly influential in shaping the trajectory of the plant-based milk
landscape.
3.6 (A) Segmentation, Targeting, Positioning
In the context of segmentation, targeting, and positioning (STP), Oatly has successfully
identified the niche segments within Gen X and Y that prioritise sustainability and health,
allowing for a targeted approach. The brand’s positioning as an ethical and sustainable
choice mirrors the UN SDGs, particularly those around responsible production and
consumption. This strategic positioning is not just a marketing ploy but is deeply
ingrained in Oatly’s product development and corporate ethos, which is critical in an era
where consumers are increasingly wary of superficial green marketing tactics.

3.6 (B) Developing new products

Diffusion of innovation theory underscores the importance of continuous innovation in
meeting evolving consumer needs. For Oatly, this translates into developing products that
align with the health and lifestyle preferences of Gen X and Y. Introducing options like
vitamin-fortified oat milks and customizable blends directly addresses these consumers'
desires for health-focused and personalised products. This proactive approach in product
development not only meets current demands but also positions Oatly as a forward-
thinking brand, ready to adapt to future market shifts. By staying ahead of trends, Oatly
ensures its sustained relevance and appeal in the competitive PBM industry, catering
effectively to the younger, health-aware generation.

3.6 (C) Integrated marketing communications

In order to develop an effective promotion and communication plan to distinguish Oatley
from other greenwashed competitors, Oatley must implement Integrated marketing
communication (IMC) strategies. Oatly's IMC strategies include the use of digital
marketing to convey Oatly’s brand story will be effective, resonating with Gen X and Y’s
preference for digital engagement and authenticity. By leveraging social media and
influencer partnerships Oatly can invite consumers to be a part of the brand's mission to
make a positive impact on the planet. Doing this, will enable Oatley’s promotion and

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communication plan to effectively underpins its commitment to the UN SDGs by

fostering transparency and engaging consumers in its sustainability journey.

4. Conclusion and Recommendation

4.1 Conclusion
The comprehensive analysis within this report underscores Oatly’s alignment with the health-
centric and eco-conscious values of Generations X and Y. The brand’s deep understanding of
these consumer groups has informed its strategic positioning in the Australian plant-based milk
market. Oatly's initiatives, steeped in the ethos of environmental stewardship and health, resonate
with the market's shift toward sustainable living. This congruence with the UN SDGs, especially
those focused on responsible consumption and climate action, ensures Oatly's sustainable
practices are genuine and integrated into its brand identity. The examination of Oatly’s current
strategies through the lens of the UN SDGs highlights the brand's potential to not only meet but
shape consumer expectations, setting a precedent for authenticity and long-term commitment in
the industry.

4.2 Recommendations
4.2.1 Segmentation, Targeting, Positioning
● Tailored Messaging: Oatly's marketing will focus on the health and environmental
sustainability aspects, highlighting commitments like good health and responsible
production in line with UN SDGs (Goals 3 and 12). This approach resonates with
Gen X and Y's values, enhancing Oatly's appeal. For detailed strategies, see
Appendix 1.
● Niche Markets Identification: Oatly will target specific segments within Gen X
and Y, such as eco-conscious families and fitness enthusiasts, emphasising
product benefits that align with UN SDGs like environmental sustainability (Goal
15) and responsible consumption and production(Goal 12). Refer to Appendix 1
for targeted strategies.
4.2.2 Developing New Products

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● Health-Centric Offerings: Oatly's introduction of vitamin-fortified oat milks

targets the health and wellness goals of Gen X and Y, aligning with UN SDG
Goal 3 for good health and well-being. More details on this initiative are provided
in Appendix 1.
● Customization Platforms: Oatly's 'design your flavour' platform caters to Gen X
and Y's desire for personalization, aligning with UN SDG Goal 12 on responsible
consumption. This innovative approach underlines Oatly’s commitment to
sustainable and consumer-centric practices. For a comprehensive overview, see
Appendix 1.
4.2.3 Integrated Marketing Communications
● Digital Marketing: Oatly's use of social media and TikTok targets Gen X and Y
with interactive campaigns that underline its commitment to sustainability,
aligning with UN SDGs Goals 12 and 13. Detailed strategy in Appendix 1.
● Influencer Collaborations: Partnerships with sustainability-focused influencers
enhance Oatly's appeal to Gen X and Y, reinforcing its authenticity and
commitment to UN SDGs. This approach's impact on preventing greenwashing is
elaborated in Appendix 1.

5. Appendix:

Appendix 1

UN SDG Goal Marketing Campaign strategies

Goal 3: Good Health and Well-being Developing New Products: By launching

vitamin-fortified oat milks, Oatly directly
caters to the health This platform allows users
to create their own unique oat milk blends,
catering to their specific taste preferences and
dietary needs. It's a direct response to the
growing trend of personalization in the food

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industry, particularly among younger

consumers who value uniqueness and
individual expression. This initiative not only
aligns with the UN Sustainable Development
Goals by promoting good health and well-
being (Goal 3) but also enhances Oatly's
image as an innovative and consumer-centric
brand. This innovative approach underlines
Oatly’s commitment to sustainable and
consumer-centric practices. This move
highlights Oatly's dedication to improving
public health, significantly appealing to these
generations who prioritise wellness. Detailed
nutritional information and health benefits in
their marketing ensure transparency and
credibility, demonstrating Oatly's genuine
commitment to public health, not just
superficial marketing.

Tailored messaging: Oatley can tailor

messaging to Gen X and Y by focusing on the
health benefits of Oatly's products, like their
vitamin-fortified oat milks, and their efforts to
maintain sustainable production processes.
This targeted messaging aligns with Gen X
and Y's preference for health-conscious and
environmentally responsible brands,
enhancing Oatly's appeal and credibility
among these demographics.

Goal 8: Decent Work and Economic Growth Developing New Products: Oatly's

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innovation in product range, especially with

customizable blends, not only serves the
unique preferences of Gen X and Y but also
stimulates economic growth by creating new
job opportunities. This strategy reflects Italy's
role in driving economic development,
showcasing a business model that values both
innovation and societal impact, thus
differentiating it from companies engaged in
mere superficial sustainability claims.

Goal 13: Climate action Digital marketing: Oatly's digital marketing

strategy should leverage the power of social
media and platforms like TikTok to engage
with Gen X and Y. By creating interactive and
educational campaigns, Oatly can highlight its
commitment to sustainability and the UN
SDGs. This approach involves not only
showcasing Oatly’s eco-friendly production
methods and the health benefits of its products
but also initiating dialogues about broader
sustainable practices. Engaging content, such
as behind-the-scenes looks at Oatly’s
production processes or stories about the
positive impact of choosing sustainable
products, can foster a deeper connection with
these consumers. These campaigns can
effectively demonstrate Oatly's alignment with
UN SDGs like responsible consumption and
climate action (Goals 12 and 13), further
distancing the brand from greenwashing

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accusations and building a reputation as a

genuine, eco-conscious choice in the PBM
market.
.

Goal 15: Life on Land Niche Markets identification: Oatly can

Goal 12: Responsible Consumption and
Production
develop specific marketing strategies for these
groups. For instance, for eco-friendly parents,
Oatly can highlight its commitment to
environmental sustainability and how its
products contribute to a healthier planet,
aligning with goals like life on land (Goal 15)
and Responsible Consumption and Production
(Goal 12) of the UN SDGs. For health
enthusiasts, the focus can be on the nutritional
benefits of Oatly products, like their protein-
enriched oat milk variants, emphasising
Oatly's alignment with Goal 3 of the UN
SDGs. These focused strategies will help
Oatly to penetrate these niche markets
effectively, aligning with their specific values
and needs.

Goal 17: Partnerships for the Goals Influencer collaborations: Oatly's

collaboration with influencers and
organisations that are trusted by Gen X and Y
ensures the authenticity of their sustainability
efforts. These partnerships are crucial in
building trust and fostering community
engagement, as they provide an avenue for
transparent communication about Oatly’s

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commitment to the SDGs, thereby preventing

perceptions of greenwashing and establishing
a genuine brand identity.

6. References:

Ramaswamy, K. (2021). Got Milk? The Evolution of the Plant-Based Milk Industry.
Thunderbird School of Global Management, Case No. A08-21-0015. Arizona State University
Enterprise, accessed 18 November 2023,
<https://services.hbsp.harvard.edu/api/courses/1105973/items/TB0646-PDF-ENG/sclinks/
8290f243107a319ec3e4e3cfb1241573>

Grand View Research. (2021). Dairy Alternatives Market Size, Share & Trends Analysis Report
by Source (Soy, Almond), by Product (Milk, Ice Cream), by Distribution Channel (Supermarket
& Hypermarkets, Online Retail), and Segment Forecasts, 2021–2028. April, accessed 17
November 2023, <https://www.grandviewresearch.com/industry-analysis/dairy-alternatives-
market>

Mintel. (2020). Dairy and non-dairy milk: Incl. impact of COVID-19. Mintel Reports. October,
accessed November 18, <https://store.mintel.com/report/us-dairy-and-non-dairy-market-report>

Grewal, D., Levy, M., Mathews, S., Harrigan, P., Bucic, T. & Kopanidis, F., 2020. Marketing 3e.
3rd ed. [ebook], accessed 10 November, <https://www.mheducation.com.au/business-
economics/marketing/marketing>

United Nations, 2023. Sustainable Development Goals. [online], accessed 12 November, <
https://sdgs.un.org/goals>

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