Oatly Marketing Strategy
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OATLY MARKETING STRATEGY Fiammetta Battino, Carolina Bosco, Gisela Etter, Olivier Schorro ABOUT OATLY Sustainable oatmilk and derived products Swedish based company founded in 1985 out of academic research Goal: "delicious nutrition, plant-based milk made out of oats Mission: deliver products that have maximum nutritional value and minimum environmental impact Shift 2014: from a food production company to a life-style brand Sustainable oatmilk and derived products Educate people through their value-based brand SHIFT REFLECTED ON THE PACKAGING Packaging as the company's own media Creative and distinguishable Storytelling food production company life-style brand ABOUT OATLY THREE LEVELS OF PRODUCT Europe Asia North America CORE CUSTOMER VALUE What the buyers really buying it? When you buy it you feel good; Political engagement "I am a good human thinking" Perceivable to friends (Instagram) MARKETING SEGMENT Heavy geographical segmentation Light demo- and psychographic segmentation within European countries Young and hip city dwellers Environmentally conscious Believers in the good cause At the time also de-segmentation THE WOW FACTOR Offline promotion Marketing strategy is out of the box The message of the ads is clear and provocative Sustainability and health Political statement Emotional campaign Pull strategy SO WHAT THE PRICE There are different prices depending on the type of products selected: The barista edition of oat milk, the official website offers 6 packs of 32 for $25; They can sell it in bunch (for coffees, restaurants, big families, etc.) Regular milk in UK £1/ Oatly milk £1.45 (average price) per liter Promotional offers (three for £3 or buy one get one half price) Plan price Introductory offers They can spend more on marketing since they save on packaging SO WHAT THE PRODUCT Characterized by the variety of the offer Oat milk, organic oat milk, chocolate oat milk, oat cream, ice cream, yogurt, crème fraiche, Barista collection Variety Gluten free Transparency of the process THE PLACE Supermarkets Chain supermarkets Specialized niche shops Online shops: Occado, Amazon and My supermarket Independent coffee-shops and pop-up stalls Vegan and Vegetarian restaurants Planned: schools, hospitals, gyms, vending machines, Liddl and Aldi COMPETITORS Non-dairy, plant-based product (alpro, pepsiCo’s Quackers, Rude health, Almond Breeze) Lactose free milk Traditional milk THE OOMPH Product: mainstream and limited edition of “barista collection”, more flavors for yogurt and ice-creams, butter. Place: vending machines, school/work canteens, SAS airline, supplying for catering. Promotion: further develop the online and offline campaigns Price: the price is already competitive, the brand-new ones may be a bit more expensive but if consumers want exclusive and sustainable products, this is part of the game. The price is in the end affordable to everyone. SUSTAINABILITY Oatly first published a Sustainability Report in 2017 Any question?.