Practice Exam
PART A - Case Study
Nielsen: Meal Kits Increasingly Popular Amongst Australian Consumers, Up 40 Per Cent
By: B&T Magazine
Date: 16 January 2020
Publisher: www.bandt.com.au
Meal kits, with fresh, pre-portioned ingredients for consumers to create a healthy homecooked
meal, are increasingly popular in Australia, according to a recent Nielsen report.
These easy-to-use/easy-to-prepare boxes offer the perfect sweet spot between convenience
and gratification. Meal kits have been gaining traction in the U.S. for the past few years,
expanding in size three times faster than any other channel.
Here in Australia, meal kits are estimated to be worth over $300 million in annual sales and
growing at a rate of 40 per cent compared to 2018.
For
ands and retailers, Australia’s meal kit shoppers are an attractive consumer group.
These shoppers are big spenders, with the majority having among the highest monthly
expenditure on food and drinks in the country; and they spend just over one-fifth of thei
overall monthly food and beverage spend on ready meals/meal kits.
Understanding who’s buying meal kits and what influences their purchasing decisions is
crucial to reaching these shoppers and further growing this market.
Opportunities are in store
In the U.S., meal kits started as a mostly web-exclusive offering. However, the market has
now grown into a multi-billion dollar industry, with approximately three-in-10 shoppers
purchasing their meal kits in-store.
According to the latest Nielsen U.S. data, 187 new meal kit items were introduced at
icks
and mortar retail outlets during the 52 weeks ending 29 December 2018.
In-store offerings
ing shoppers a new way of buying meal kits, while also giving retailers
another opportunity to drive foot traffic and increase shoppers’ overall spend.
In Australia, half of the growth of meal kits comes from
icks and mortar supermarkets,
supermarket online sales and discounters. Meanwhile, online sales of meal kits already
epresents 9 per cent of total food and grocery online sales.
So who’s buying meal kits? Meal kits are most popular among young families and young
millennials, who see them as a healthy alternative for out-of-home meals. These consumers
are generally time-poor, but health-conscious. There is, however, still plenty of scope to grow
the category further by enticing new consumers to purchase these pre-packaged meals.
While meal kits sales are quickly rising, only 6 per cent of Australian households have
purchased a meal kit in the last year. For continued growth, retailers need to dial up the key
enablers for purchasing, while working to eliminate any purchase ba
iers.
More than one-in-two shoppers say that price is a ba
ier for purchase, but with lower-cost
options like Dinnerly (under $8 per portion) now in-market, this will likely change. For those
who don’t purchase meal kits online because they prefer the in-store shopping experience,
etailers should look to optimise the way meal kits are merchandised. This can include where
the meal kits section is in the store, what products are ranged alongside meal kits and offering
choices that are both convenient and inspirational.
For people who dislike the extra charges associated with purchasing meal kits (such as
delivery and handling), retailers have an opportunity to take advantage of this with their instore
meal kit offering. To address consumer concerns regarding the freshness of the
products, retailers could consider different ways to highlight the freshness or the time of
packing.
Reducing the risk of entry
In the U.S., meal kit distribution is spreading across multiple channels and traditional
etailers are reducing their risk by partnering with grocery
ands when developing their meal
kit offerings.
We’re already seeing collaborations like this in Australia, with Coles partnering with Ube
eats and the Woolworths investing over $30 million in Marley Spoon.
In addition to these types of partnerships, Coles and Woolworths have started using pre-cut
meats and pre-measured portions of rice, noodles, vegetables and sauces in the supermarket
fresh section. In essence, this gives shoppers the option to make their own meal kits in-store,
while reducing their food waste.
Meal kits are also an opportunity for manufacturers to collaborate with meal kit providers,
like in the case of Perkii Kombucha and HelloFresh. This means that meal kit providers can
also become a platform for
ands to trial their new product launches.
It’s clear that shoppers are showing a continued interest in meal kits, especially in thei
ability to deliver fast and fresh meal options. One thing is for sure – meal kits pose a large
opportunity to expand in-store spending by thinking outside the box.
https:
www.bandt.com.au/nielsen-meal-kits-increasingly-popular-amongst-australianconsumers-
up-40-per-cent
1. Discuss any two elements of micro-environment in the context of this article
2. How does this article relate to buyer behaviour and changes in consumer preference.
PART B - SHORT ANSWER
1. Since labels and packaging are very important, discuss an example of a product you bought recently keeping in view their key functions.
2. Why do chain retailers tend to do better than independents?
3. Think of an example where the users of a product are not the buyers themselves. What are the implications for targeting?
4. ‘Adapting promotions to a new market is a waste of money—keeping promotions standardised across markets is much more sensible’. Discuss this statement.
PART C - MULTIPLE CHOICE
1. The larger, wider forces that have influence over companies and economies are known as the:
Select one:
a.
Macro-environment
.
Threats
c.
Micro-environment
d.
Marketing environment
2. Circulation of a newspaper refers to:
Select one:
a.
How many copies are sold
.
How many people in a household read a newspape
c.
Advertising space per copy
d.
How newspapers are delivered to newsagencies
Clear my choice
Question text
3. A jewellery designer charges a price that allows the recovery of all costs (i.e., the material used to make the jewellery, the hours of work spent making the jewellery and the overheads). This is an example of:
Select one:
a.
Direct cost pricing
.
Value based pricing
c.
Full cost pricing
d.
Marginal cost pricing
4. In which country is comparative advertising most commonly used?
Select one:
a.
UK
.
United States
c.
Australia
d.
Saudi Arabia
Clear my choice
Question text
5. Mental and physical availability make
ands:
Select one:
a.
Better suited to consumers’ needs
.
Cheaper for consumers
c.
Easier to buy
d.
Harder to find
The exam must refer to the book I gave you pls ！
And the exam will looks similar to this one.