International Marketing on Spam

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“At $2.62 a can on average, Spam starts looking a little better to a lot of families who are strapped right now by the rising cost of food,” Williams added. (Jeff Poor, 2008)

Executives for Hormel attributed the strong showing to an advertising campaign and a new product, in addition to consumers fixing their own meals more often. “The Austin, Minn.-based company, also known for the Jennie-O Turkey Store, has embarked on its first national advertising campaign for the 71-year-old brand in several years,” Emily Fredrix wrote for the AP. “They’ve credited the sales increase to that, along with new products like individually packaged ‘Spam Singles’ slices. Also helping sales, executives said in an earnings conference call, was the fact that people looking to save money are skipping restaurant meals and eating more at home.” (Jeff Poor, 2008)

- Social Factor

With the social factor, a business can analyze the socio-economic environment of its market via elements like customer demographics, cultural limitations, lifestyle attitude, and education. With these, a business can understand how consumer needs are shaped and what brings them to the market for a purchase. (PESTLE ANAYLSIS, 2014)

Is Spam’s demographic present on the site if so is the demographic utilizing the social networking site in a way that Spam can communicate with them? Well, the answer is yes.

It is already mentioned in the news story that a great number of people using social networks like Twitter and Facebook. After analyzing different segments, the brand then decides which and how many segments it will target. A target market consists of a set of buyers who normally share their own common needs or characteristics which are served by the brand/ company. However, the brand still suffers from an old fashioned image and the consumers are under the age 40 but now they are moving to a bigger target group where it would target not only the young target group but also intended to the over 55s.

- Technological Factor

How technology can either positively or negatively impact the introduction of a product or service into a marketplace is assessed here. These factors include technological advancements, lifecycle of technologies, the role of the Internet, and the spending on technology research by the government. (PESTLE ANAYLSIS, 2014)

In the technological factor, as SPAM luncheon meat are processed meats which means they need machines to produce the products. Without advance technology, the company will not be able to produce the luncheon meat for consumers and also the packaging of the product. With all the high technology machines now, the company will be able to produce lots of the product at once. With the machines, the company will be able to design attractive packaging to attract the consumers. Advance technology brings convenience to everyone and even the labors.

Marketing Mix – 4Ps

What are the 4Ps? It is the price, product, promotion and place.

- Price

The average price of a can of Spam is up almost 7% to $2.62, or 22¢ per ounce, according to the AP. That makes it costlier than both the average retail price of pork, 18¢ per ounce, and ground beef, 14¢, according to figures from the U.S. Department of Agriculture.

But as compare to other brands of luncheon meat, SPAM price is defiantly worth purchasing as other brands price are range in $3 to $4. With such good price and quality, it is worth the buy.

- Product

As seen, SPAM product came out with different flavors of meat. Different flavors to attract different consumer’s taste. Looking at its packaging, it is in can. Coming up with new ideas of SPAM, it will be in plastic food packaging which is easier to open while also more appealing to youth as compare looking at the can seems foreign. Having a different look, it might attract more youths to purchase it.

With the well-known name of it and the changes in packaging, the product will be more attractive to consumers.

- Promotion

To get consumer’s attention on the production, promotion are needed like TV, billboards, radio, giving out flyers and even on social media pages like Facebook or Twitter.

Promotion such as buying 2 cans of SPAM and get1 free, liking the Facebook page by getting a free can of SPAM and follow SPAM Twitter’s account to get 5 percent off for the next purchase. SPAM Company can come out with discount coupons for consumer use or contest. They can also promote on TV, billboards and radio to create awareness of the product and promotion that are going on. With different kinds of promotional tools that are created, it will help SPAM boost it sales and create more awareness of the product.

- Place

A can of SPAM are usually easy to locate in the supermarket and hypermarket. Almost everyone will visit the supermarket on the daily basis to get food. Addition, SPAM is a well-known brand which mostly some of the consumer will purchase to cook it for breakfast, lunch and even dinner. Even in some of the restaurants in Hawaii, they are selling food with SPAM luncheon meat in it. Their supplies might come from supermarkets if they run out of it.

Conclusion

In conclusion, even there are different types of problems that SPAM faced, they still overcomes it and made its product better. SPAM came out with different flavors to attract different kind of consumer’s taste buds. With all the different kinds of flavors, consumer will have wide range of variety to choose what they want.

To recommend, SPAM can expand supplies to conveniences shop or mini-mart. It will be much more convenient for some consumers as the supermarket might not be around the area that they are living. And also, SPAM can improve their promotional tools by advertising on the newspaper and magazines as people will read it on a daily basis.

By creating awareness and conveniences to consumers, they will be more aware to this brand and may introduce it to their friends and families.

References

Pestle Analysis, retrieved on 16/09/2014 –

http://pestleanalysis.com/pest-analysis/

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