BUSINESS 200083

200083 MARKETING PRINCIPLES AUTUMN 2016 Individual learning activities (25%) Three individual learning activity (ILA) assignments (500 words each) are to be submitted throughout the semester. The individual learning activity assignments are scenario based activities or real life marketing problems that require students to address and apply relevant marketing concepts to analyse the issues or solve the problems. Each ILA will be marked out of 25 marks. The average of these three ILAs will contribute to a total of 25% of the total marks in this unit.  Note: The individual learning activity submissions will be carefully checked for plagiarism. They are to be submitted via Turnitin in vUWS. You can submit drafts via Turnitin as many times as you want (to the same tutor link) before the deadline. Submission date and time will be based on your Turnitin record. Warning: It may take up to 24 hours for Turnitin to return an updated originality report. Late submissions will be penalised at a rate of 10 per cent per day as per UWS policy (Saturday and Sunday each count as one day) based on total marks possible.  Note: When submitting your ILAs via Turnitin in vUWS, follow the Turnitin link x ILA x Tutor (these links will “disappear” after the deadline). All late submissions are to be submitted via the common Turnitin late submission link x ILA. Unless you have been granted extension or special consideration, late submissions will be penalised at a rate of 10 per cent per day as per UWS policy (Saturday and Sunday each count as one day) based on total marks possible.  Warning: Submissions to the wrong tutor link (or to multiple links) will not be marked. General submission requirements Format: A4, 2.5cm margin on all sides, Arial 10 font, 1.5 line spacing. Submit your ILAs in WORD format via Turnitin; do not use other file formats like zip files, *.pages, etc. This unit uses Harvard Western Sydney referencing style. Full details and examples are available on the library website at http://library.westernsydney.edu.au/main/sites/default/files/cite_Harvard.pdf . A reference list or bibliography is preferred over footnotes. Note: Wikipedia articles should not be used in assessment tasks. There is no need to include the Assignment Cover Sheet in the Turnitin submission (when you submit your document via Turnitin, you agree to the electronic declaration). Do not include the ILA question in your document otherwise this will generate a very high similarity index. You are however to include the reference list/bibliography & any appendices in your ecopy submission. When you login to vUWS using your WESTERNSTUDENT account, the system already recognises your ID and therefore there is no need to include your name and Student ID on the paper that you submit via Turnitin. However, it is always a good practice to include the assignment title and your identity in the header or footer. The reference list & any appendices will not be counted towards the 500 words limit. But, you need to bear in mind that the Appendices are only supplementary to your discussions in the body of the essay, you cannot expect the marker to read your Appendices in detail when marking your paper. Penalty will apply when you go over the 500 words limit by more than 10% (i.e., more than 550 words). (Note: The word count will be based on your WORD document, including the in-text citations but excluding the reference list/bibliography & any appendices which may be different from the word count figure in the Turnitin report which includes the whole document.) Students are to keep a copy of all assignments submitted for marking. 200083 MARKETING PRINCIPLES AUTUMN 2016 2 Turnitin Turnitin is used by over 30 universities in Australia and is increasingly seen as an industry standard. It is an important tool to assist students with their academic writing by promoting awareness of plagiarism. Turnitin plagiarism prevention system is a software product that reports on similarities between your paper and other documents. There is a great deal of information regarding Turnitin including an instructional guide at: library.westernsydney.edu.au/turnitin.php . Turnitin at Western Sydney University: A brief instructional guide for students: http://library.westernsydney.edu.au/main/sites/default/files/pdf/Turnitin_Student_Instructions.pdf Read this document thoroughly before submitting your Turnitin assignment. This instructional guide provides detailed guidelines on Turnitin submissions including advice on how to interpret the similarity index in the originality report and how to avoid any possibility of plagiarism: After your Turnitin submission has been completed a digital receipt is displayed onscreen. A copy is also sent to your WSU student email account. The digital receipt is proof of a completed submission. At any time, the digital receipt is also accessible via the Assignment Inbox. Interpreting the similarity index The overall similarity index and the corresponding colour scaling of the icons provides a basic indication of how much information contained in a specific submission is matched to other sources in the Turnitin repository. The possible similarity index percentage ranges are linked to a corresponding colour: If you have a similarity index of >30%, it is very likely that you will be asked to “please explain”. Please use the link below to find links to information regarding plagiarism and how to avoid it: http://www.plagiarism.org Please also see the following information in the Learning Guide regarding WSU’s policy on academic misconduct: What is student misconduct? Student misconduct is defined as being any one or all of the following: Academic misconduct Conduct by a student that in any way undermines or otherwise puts at risk the academic integrity of any course, unit of study or assessment (including examinations) or the University's academic reputation. There are many resources to help you avoid academic misconduct. Library staff can help you with referencing and the Student Learning Unit can assist with academic writing and plagiarism. If you are unsure about any of your work you should also ask your tutor or lecturer for advice and feedback. The University also has text matching software (called Turnitin) which can help you check to see if your work might have problems. You can access Turnitin on the vUWS site for this unit. 200083 MARKETING PRINCIPLES AUTUMN 2016 3 General misconduct Conduct by a student that is contrary to accepted standards of behaviour at the University including conduct that:  places at risk the health, safety or welfare of any person;  places at risk the business or other operations, systems or activities of the University;  disrupts or interferes with another person's ability to access or enjoy the University's facilities or services. Research misconduct Conduct by a student in connection with research that seriously deviates from accepted standards for the proposal, conduct or reporting of research, including any breach of any University or other applicable law, regulation or code relating to research, such as the Australian Code for the Responsible Conduct of Research. For the full definition of student misconduct and the consequences of such behaviour, you are advised to read the Student Misconduct rule in its entirety (refer to policies.uws.edu.au/view.current.php?id=00304). Late submission A student who submits a late assessment will be penalised by 10 per cent per day up to 10 days i.e. marks equal to 10 per cent of the assignment’s worth will be deducted as a “flat rate” from the mark awarded. For example, for an assignment with a possible highest mark of 50, the student’s awarded mark will have five marks deducted per late day. Saturday and Sunday count as one day each. Assessments will not be accepted after the marked assessment task has been returned to students who submitted the task on time except where compulsory items of assessment must be submitted. An assessment submitted at any time after the due time on the due date will be deemed to be a late submission and late submission penalties will accrue immediately from the due time and date. Extension of due date for submission Requests for extensions, with evidence of extenuating circumstances, may be submitted before, on or up to two days after (by 5.00pm) the due date of an assessment. A student may apply for an extension of the due date for an assessment task if extenuating circumstances outside their control, and sufficiently grave in nature or duration, cause significant disruption to their capacity to study effectively. Applications should be submitted with supporting documentation, to the Unit Coordinator or other designated staff member (with a copy to the lecturer). If a late application is not approved the late penalty will apply from the due date. The Request for Extension Form is available at: www.westernsydney.edu.au/currentstudents/current_students/managing_your_study/forms. Or, directly from: https://westernsydney.edu.au/__data/assets/pdf_file/0004/118273/ARO_00205_0815_Request_for_Extension-LRweb.pdf Guidelines for Students – Assignment Extensions is available at: policies.westernsydney.edu.au/view.associated.php?id=00227. Or, directly from http://policies.uws.edu.au/download.php?id=427&i=00227&v=14 See the following link for a list of acceptable supporting documentation: http://www.uws.edu.au/currentstudents/current_students/enrolment/supporting_documentation A copy of the WSU’s medical certificate proforma can be downloaded from: http://www.uws.edu.au/__data/assets/pdf_file/0011/475184/ARO_00372_1115_Medical_Certificate.pdf 200083 MARKETING PRINCIPLES AUTUMN 2016 4 Special Consideration Special Consideration may be given to students whose performance during the teaching session, in an assignment or in an exam has been affected by serious misadventure, accident or extenuating circumstances beyond their control. Applying for and receiving special consideration means that those circumstances are taken into account when we calculate your grade. Students can apply for all types of Special Consideration online using the Special Consideration & Deferred Exam eForm. All applications for Special Consideration must contain appropriate supporting documentation to substantiate the circumstances that are impacting on your studies. Applications without supporting documentation will not be considered. All application for special consideration must be submitted within the required timeframe [by 5pm of the second working days (Mon-Fri) after the due date of the assessment]. No email or telephone request for special consideration/deferred exam will be entertained. To complete the form go to: www.westernsydney.edu.au/currentstudents/current_students/services_and_facilities/special_consideration2. The Special Consideration policy can be found at: policies.westernsydney.edu.au. See the “How to guide for students” for application procedure and acceptable documentary evidence: http://www.westernsydney.edu.au/__data/assets/word_doc/0009/475236/SPEC_CON_and_DE F_EXAM_eFORM-How_to_guide_for_students-010915_PROTECTED.doc [Warning: The Special Consideration & Deferred Exam eform is a very complicated online form which is actually made up of separate forms. Make sure you read the “How to guide” thoroughly before proceeding to avoid any delay in the processing of your application. Need help? Visit a Student Central for assistance or watch the respective “how to video” via the appropriate link at http://www.westernsydney.edu.au/currentstudents/current_students/services_and_facilities/sp ecial_consideration2 ] See the following link for a list of acceptable supporting documentation: http://www.uws.edu.au/currentstudents/current_students/enrolment/supporting_documentation A copy of the WSU’s medical certificate proforma can be downloaded from: http://www.uws.edu.au/__data/assets/pdf_file/0011/475184/ARO_00372_1115_Medical_Certificate.pdf Applications which do not meet the eligibility criteria and documentary requirements will be rejected automatically by Student Central. Other tips on how to improve your essay As long as you cover the main issues being asked, how you structure your essay is a matter of individual writing style. It is okay that you follow the intro, body, conclusion sequence; however, the focus should be on the "body"; the intro & conclusion are peripheral only. There is also no need to answer the sub-questions separately and in the same sequence as appeared in the question, nor do you need to cover the sub-questions in the same length in your answers. Use heading/subheading to structure your essay in a logical framework. Use the Discussion Board for all Q&As regarding the ILAs and other assessments. Observe the three marking criteria for the ILAs: 1. Understanding of the relevant marketing concepts. (10/25) 2. Provision of analytical insights of issues. (10/25) 3. Clarity and logical structure of the report. (5/25) 200083 MARKETING PRINCIPLES AUTUMN 2016 5 Marking criteria and standards (Individual Learning Activities) 25% The following marking criteria and standards will be applied to each of the individual learning activities (the average of the three ILAs will contribute to the total mark in this unit). CRITERIA STANDARDS Understanding of the relevant marketing concepts. There is no demonstration of understanding of the relevant marketing concepts. Demonstration of limited understanding of the relevant marketing concepts. Demonstration of some general understanding of the relevant marketing concepts. Demonstration of good understanding of the relevant marketing concepts. Demonstration of excellent understanding of the relevant marketing concepts. 0 1-4 5 6-7 8-10 Provision of analytical insights of issues. Demonstration of minimal understanding of the issues and shows minimal insights. Demonstration of limited understanding of the issues and provides some basic insights. Demonstration of some general understanding of the issues and provides some general insights. Demonstration of good understanding of the issues and provides some good insights. Demonstration of excellent understanding of the issues and provides some excellent insights. 0 1-4 5 6-7 8-10 Clarity and logical structure of the report. Hard to follow and poorly structured. Written expression is poor. Do not comply with all formatting & referencing instructions and word limit. A lack of clarity and logical structure. Together with written expression, there is substantial variability in quality or quality is low. Does not comply with all formatting & referencing instructions and word limit. A reasonable level of clarity and logical structure. Together with written expression, there is some variability in quality. Complies with formatting & referencing instructions and word limit. A good level of clarity and logical structure. Good written expression provides evidence of quality editing. Complies with formatting & referencing instructions and word limit. A high level of clarity and logical structure. Exceptionally good written expression provides evidence of high quality editing. Complies with formatting & referencing instructions and word limit. 0 1-2 3 4 5 Total / 25 Feedback on ILAs After marking, the Unit Coordinator will announce the release the feedback and grade to students online via GradeMark. See the following resources on how to access GradeMark feedback in vUWS: http://library.westernsydney.edu.au/main/guides/turnitin/grademark http://library.westernsydney.edu.au/main/sites/default/files/pdf/GradeMark_Information_For_Students.pdf Note: You must use a desk-top computer to access grades and feedback (not an iPad or mobile phone device). 200083 MARKETING PRINCIPLES AUTUMN 2016 6 The three Individual Learning Activities assignments (ILA-1, ILA-2 & ILA-3) are based on the following paper: Chan, A.M. 2012, "Patriotic Marketing: An Australian Case Example", in Nuha Jahan (ed.), Proceedings of 5th Global Business and Social Sciences Research Conference, 25-26 June 2012, Beijing, China. Read this paper thoroughly before answering the following questions in each ILA assignment. Individual Learning Activity 1 (ILA-1), Due: Week 5, 11pm, 27 March 2016 (Sun) What are the astute marketing opportunities that Dick Smith identified in establishing Dick Smith Foods? Identify the major target markets that are most susceptible to the patriotic appeal of Dick Smith Foods. Individual Learning Activity 2 (ILA-2), Due: Week 9, 11pm, 24 April 2016 (Sun) What are consumers really buying into when buying an ‘Australian’ brand? Or, do they really care about the Australian-ness of a brand? What do you think? Individual Learning Activity 3 (ILA-3), Due: Week 12, 11pm, 15 May 2016 (Sun) Dick Smith Foods placed an ad in national newspapers on 21 and 22 April 2001 headlined, ‘Is Australian ownership of business simply jingoism?’ The copy of the ad reads: ‘Newspaper journalist, Dennis Shanahan, has been running a campaign against Dick Smith Foods, claiming that it is “feeding paranoia” and “jingoism” to promote the advantages of Australian owned businesses. ‘At the same time Mr Shanahan pushes the advantages of ‘Australian Made’ especially when promoted by foreign companies. ‘The reason for this hypocrisy is obvious to most Aussies. The big foreign companies that exploit the “Australian Made” logo have enormous advertising clout in the press. Patriotic Australians are not stupid—we know that while “Australian made” is good “Australian owned and made” is even better as the profits stay here creating wealth and a better future for our children and grandchildren.’ Do you think Dick Smith is hypocritical in making use of his image of patriotism to brand his products and increase sales, and denigrate his competitors that are predominately foreign owned? Some critics labelled Dick Smith’s new adventure as ‘nothing more than a money-making scheme’. What do you think? Patriotic Marketing: An Australian Case Example Alvin M. Chan Whilst the world has become more globalised, there are also increasing anti-globalisation movements which provide marketing opportunities for companies to appeal to the patriotic consumers to buy products made locally. This case example looks at how Dick Smith, an Australian iconic adventurer and entrepreneur, has picked this patriotic social trend and successfully launched his Dick Smith Foods company appealing to the patriotic Australian consumers to not just buy Australian made products but also made by Australian owned companies. It demonstrates that patriotic marketing does work, at least in this case. JEL Codes: L26, M31 and M37 1. Introduction In July 1999, Dick Smith announced his intention to set up a 100% Australian owned food company to fight back the trend that increasing number of Australian brands are now foreign owned. On 29 November 1999, he made the decision to go ahead with Dick Smith Foods with a capital of $2 million. The first Dick Smith Foods product, Dick Smith Peanut Butter, was launched at the end of February 2000. Since then, Dick Smith has been successful in engineering consumer support for his food products by attaching his name to the “buy Australian” cause. On 4 October 2000, Dick Smith Foods announced that retail sales of $27.8 million had been achieved in the first nine months of operation, and that the company was in a profitable situation, having covered all establishment costs. Dick Smith‟s original aim was to achieve sales of $100 million to support Australian farmers and manufacturers and he achieved this in just 16 months of operation. As at 31 March 2002, Dick Smith Foods had achieved $152.65 million in retail sales. Although the sales turnover of Dick Smith Foods has dropped from its peak of over $80 million when the product was first launched, it still maintains an annual turnover of above $8 million in 2012. This case looks into the external environmental factors and the internal marketing strategies of Dick Smith Foods, which contributed to the success of the new business in such a short period of time and its continue survival in the competitive Australian fast moving consumer goods sector. In fact, Dick Smith is not just a person; his name is itself a brand name to many Australians that this case will start with a brief look at Dick Smith‟s life. Alvin M. Chan, School of Business, University of Western Sydney, Locked Bag 1797, Penrith NSW 2751, Australia. Email : a.chan@uws.edu.au Chan, A.M. 2012, "Patriotic Marketing: An Australian Case Example", in Nuha Jahan (ed.), Proceedings of 5th Global Business and Social Sciences Research Conference, 25-26 June 2012, Beijing, China. 2. Dick Smith’s Biography Dick Smith is a well-known Australian businessman, aviator, film-maker, and explorer. Below is his brief biography:  Born on 18 March 1944 in Roseville, New South Wales.  Founded Dick Smith Electronics in 1968 and sold his interests to Australian-owned Woolworths in 1982 to do publishing, exploration, aviation and philanthropy.  Named Australian of the Year in 1986.  Made the first sole helicopter flight around the world in 1983 and made the first helicopter flight to the North Pole in 1987. First person to fly around the world via the poles in 1989.  Founded the quarterly magazine Australian Geographic in 1986 and returned the Australian Encyclopaedia to Australian ownership in 1987, sold to Australian-owned John Fairfax Publication Pty. Ltd. in 1995. Now privately owned following management buy-out in 1998.  Held several chairman positions with the Civil Aviation Safety Authority Board and the National Centenary of Federation Council between 1990 and 2000 and in 1998 was appointed as Ambassador for the Council for Aboriginal Reconciliation.  First non-stop balloon flight crossing of the Australian continent in 1993 and first Trans-Tasman balloon flight against the wind from New Zealand to Australia in 2000.  Founded Dick Smith Foods in November 1999. Dick Smith is a man of many personas. Through his high-profile and self-promotion activities, Dick Smith has become a highly recognised public figure in Australia. A poll by The Sunday Telegraph in October 1999 found that he was the second most popular choice for a president should Australia became a Republic. 3. Company Mission As stated in the company‟s mission statement, the substantial difference between Dick Smith Foods products and the products of many other companies is: “Dick Smith Foods markets a range of food products that are best of category in taste and quality. Dick Smith Foods are made in Australia, by Australian owned companies. We believe this is important because it provides employment for Australians and all the profits remain here, helping the future of our country. Dick Smith Foods supports products which are produced by Australian owned businesses, which are Australian grown and made, and those Australian owned companies which operate in a highly ethical manner. Since the beginning of Dick Smith Foods we have donated over $4.7 million to a large number of charitable organisations.” The company‟s mission is best summarised in their slogan: “As Australian as you can get!” 4. Dick Smith’s Policy on Foreign Investment The driving force behind the establishment of Dick Smith Foods was the realisation of the fact that in Australia 85% of the products in the average Australian grocery trolley are either imported or made by foreign owned companies. This results in $100 million a day going outside Australia. By comparison, in Japan, 98% of goods in supermarkets are owned by Japanese organisations. Dick Smith argues that there are two key reasons to support Australian owned companies – profits stay in Australia and jobs are created for Australians. Quote the source from AusBuy, he suggests that if every Australian redirects $10 per week from foreign owned companies and foreign made items to Australian products, Australia would save $4 billion per year and create 100,000 new jobs. More and more Australian “digger” brands like Vegemite and Arnott‟s are now foreign owned. Dick Smith wants to fight back and see a more even balance between Australian products and foreign products in our shopping trolleys. When launching Dick Smith Foods in 1999, Dick Smith makes it clear his policy on foreign investment: “I believe one of the reasons that Australia has been so successful is because of foreign investment. However foreign investment, as we once knew it, consisted of companies coming to Australia, bringing in capital, taking risks and creating a new business that actually increased employment and wealth for Australia.” “Unfortunately in recent years, foreign investment tends to mean wealthy overseas companies coming in, taking over successful Australian companies (sometimes against shareholder agreement), downsizing (ie putting off, say, 20% of the staff), and then taking profits out of the country. I‟m not sure that this type of foreign investment is what we really require.” “I believe we should be looking for a balance. Foreign investment has given us some great advantages in the past, however that does not mean that all future foreign investment is good.” Table 1 is a list of famous Australian food brands now owned by foreign companies. Dick Smith‟s position on foreign investment is not without criticism. For example, in a media release of 23 July 1999, Mr. Mitchell H Hooke, Executive Director of the Australian Food and Grocery Council (AFGC), the peak representative body for Australia‟s food and grocery product manufacturers, welcomed Dick Smith‟s entrée to the Australian food industry but regretted his alleged reasons for doing so, and considered his attack on foreign owned Australian manufacturers as unfair and unfounded. Mr Mitchell H Hooke said, "We welcome Mr Smith‟s foray into the industry and trust that he will develop a competitive strength on merit and not by unsubstantiated denigration of his potential competitors." An article in the January 2000 issue of the “Australian Made” newsletter (published by Australian Made Campaign Limited of Canberra) argued, “The real argument in a global economy isn‟t one of ownership. „Australian owned‟ doesn‟t necessarily mean profits stay on-shore, as supporters claim. And there‟s no guarantee an Australian owned company is manufacturing here in Australia – it may be importing. ……Many of Australia‟s biggest, best known and best supported brands may well be foreign owned. These corporations have invested in Australia and employ Australians. Many support the Australian Made Campaign.” Nevertheless, Dick Smith has been influential in raising the profile of the “buy Australian” campaign. In 1999, he became patron of Ausbuy - a non-profit organisation that aims to create awareness of the sell-off of Australian icons and brands to overseas interests. 5. Consumer Behaviour In the 31 March 2000 issue of B & T Weekly, Drs. John Dawes and Rachel Kennedy from the Marketing Science Centre, University of South Australia, made the following comments on the Dick Smith Foods campaign: “Intuitively we might think that the idea of „buying Australian made‟ or „not supporting foreign multi-nationals/cigarette companies‟ is an appealing one to consumers. Indeed, if one asks people about issues like these in market research, most people would exhibit very positive attitudes. However, there is only a very weak link between attitudes and behaviour, and a lot of inertia in consumer behaviour. Inertia favours the big established brands. Therefore, it is unlikely that these appeals will result in a large chunk of the market changing (its) buying behaviour. We do actually think Dick‟s motives are admirable and wish him well. But we also think that his new venture will face immense difficulties.” Despite Dick Smith‟s ability to raise the profile of the “buy Australian” cause, it seems that consumers are still being wooed by brand names that aren‟t necessarily Australian. Kellogg‟s and Arnott‟s (both American owned) are the two most popular brands on our supermarket shelves proving that brand loyalty is winning over price and patriotism. In an interview with A Current Affairs on 3 July 2001, Debbie Kirslake, marketing director of AC Nielson suggested that it all comes down to advertising. She said, “If the consumer hasn‟t heard about it, generally he or she won‟t touch it.” One concern about buying Australian products is the perception that it costs more. On 20 July 1999, A Current Affairs (ACA) put Aussie products to the price test. In the ACA test, the grocery basket ($70 worth) full of Australian products was almost $5 cheaper than the basket of foreign products. Whilst the ACA test proved that patriotism did put more money in your pocket, shoppers are confused which products are truly all-Australian. One of the statements in a focus group conducted by Dick Smith Foods‟ advertising agency was, “We are uneasy with Australian made type programs as we believe they are manipulated by foreign companies.” In an interview with Landline on ABC, 23 April 2000, Dick Smith also believed, “Australians are patriotic but at the moment the labelling is so deceptive you don‟t know what‟s Australian.” He further added, “What I can say to people (is) „if you buy a product with a Dick Smith Foods on it – it‟s as Australian as you can get‟.” 6. Product Since the first Dick Smith Foods product, peanut butter, was launched at the end of February 2000, a range of Australian foods have been added to the product line. The current Dick Smith Foods product range include Bush Foods Breakfast, Cream Cheese Spread, Peanut Butter Smooth, Water Cracker Biscuits, OzeChoc, Melting Moments, Canola Oil, Light Cream Cheese, Crunchy Peanut Butter and Magnificent Australian Sliced Beetroot. Dick Smith Foods‟ product development strategy is not to set up their own manufacturing plant but to ally themself with Australian manufacturers, using Australian produce, to produce products under the Dick Smith Foods label to compete against products made by foreign-owned companies – for example: Dick Smith peanut butter is produced by the Green‟s General Foods Pty. Ltd. at Glendenning in Sydney‟s Western suburbs to compete with Kraft, and “Skippy” brand peanut butter, which is fully imported from the USA. Dick Smith biscuits are made by Paradise Food Industries Pty. Ltd., a Brisbane-based, 100% Australian owned company, to compete against Arnott‟s, now owned by the Campbell Soup Company of USA. Dick Smith ice cream is made by Norco Co-operative Limited based in the northern New South Wales country town of Lismore to compete against Streets, owned by the UK multinational Unilever, and Peters, owned by Nestle of Switzerland. Consistent with the Australianness theme, Dick Smith Foods even renamed their chocolate chip “cookies” to “biscuits” to counter the Americanisation of the Aussie language. To generate immediate association between Dick Smith Foods and Australian ownership, the Dick Smith Foods label puts Dick Smith‟s head and logo on the Australian flag. In a media statement issued on 30 January 2001, the Executive Director of Ausflag, Mr Harold Scruby requested that “the Prime Minister and the RSL (Returned and Services League) write to Dick Smith and demand the immediate removal of his face and logo from the Australian Flag, which appear on all his products.” Mr Scruby quoted from the Government booklet entitled Australian Flags, released by the Prime Minister's own Department of Awards and National Symbols:  When the flag is represented, for example, as an illustration for commercial or advertising purposes: o it should be used in a dignified manner and reproduced accurately; o it should not be defaced (that is, have superimposed on it printing or illustration). Mr Scruby said, "While Mr Smith's attempts to market 'Genuine Australian Foods' are indeed commendable, it is not necessary to deface the Australian Flag to achieve this goal.” Despite the protest by Ausflag, the Australian flag with Dick Smith‟s head on it continues to appear in all Dick Smith Foods labelling, advertising and promotional material. 7. Marketing Logistics As described in the Dick Smith Foods ads, “Big companies can afford to buy the best display positions in supermarkets. We‟re just a small company relying on the support of Australians.” Dick Smith did not just appeal to the patriotic Australian supermarket managers to stock and display Dick Smith Foods products, he also urged consumers who had trouble in finding Dick Smith Foods to ask the store manager. For those who had enthused supermarkets to move Dick Smith Foods products to more prominent positions, Dick Smith thanked them in the ads. Today, Dick Smith Foods products can be found in all major supermarkets, including Woolworths, Coles, Pick & Pay, FAL, Safeway, Bi-Lo, Foodland, and local independents throughout Australia. They are also available in most of the smaller independent stores that purchase stock from Metcash Limited and AIW. Dick Smith Foods products are also available online from Shopfast and online websites of Woolworths, Coles and other major retailers. In September 2011, Dick Smith Foods opened its first Dick Smith‟s General Store at Belrose, New South Wales stocking quality Australian delicacies sourced from the finest cottage producers. As Dick Smith describes, the Dick Smith‟s General Store is unlike any other food shop: “My new General Store is a nostalgic journey, rediscovering the wonderful food produced right here in Australia. This store is unlike any other food shop. It is simply the best of the best in gourmet Australian food. As I travel around Australia, I search for the most magnificent food from small country towns and markets. Gourmet, small batch products that are of the highest quality and made with love from delicious Australian ingredients. So I have rounded up the best suppliers and created a General Store so that they are available to everyone in the one place. Think of it as a celebration of the finest gourmet foods that Australia has to offer from places like Tasmania, Kangaroo Island and Margaret River. The products are not cheap but they are simply the best that can ever come from any place in the world.” Consumer can also buy online from Dick Smith‟s General Store with Australia wide delivery from $9.95 by Australia Post. 8. Pricing Unlike generic brands that are priced cheaper than the major brands, Dick Smith Foods products are priced at competitive levels with the major brands. However, the major pricing issue is not at what levels Dick Smith Foods set their prices; the major issue is how competitive brands are responding to the launch of Dick Smith Foods. For example, in a letter to the Editor (The Sun-Herald, 30 April 2000), one reader wrote, “Following the launch of Dick Smith‟s peanut butter (price $2.99), the local supermarket placed ETA peanut butter adjacent to Dick Smith‟s product at a reduced price of $1.89, a saving of 80c. What chance does the Australian made and owned product have with help like this?” Dick Smith urges his supporters to write similar letters to the newspapers if they notice this happening in their local supermarket. Whilst it is generally believed that price is the most important choice criterion used by grocery buyers, research done by Dick Smith Foods revealed that the biggest single motivator for consumers is that they are helping Australian farmers when they buy Dick Smith Foods. Research by the Australian Consumers Association also showed that consumers are more likely to be influenced by Australian-made rather than price in choosing a brand. 9. Marketing Communications 9.1 Advertising Dick Smith Foods rely on very minimal advertising. Their largely PR-based advertising is often timed with bursts of activities aimed at causing a stir. Dick Smith admitted, “They (multinationals) can afford to lose money in the short-term, knowing that in 10 years they can make it again. We, on the other hand, could never push ahead with a product if we were losing money.” (B & T Weekly, 16 March 2001). The only major advertising campaign by Dick Smith Foods was a $1 million campaign launched in April 2002 focusing on the human face of Dick Smith Foods. This creative strategy, developed by advertising agency Ad Partners, was based on research finding that the major reason why consumers buy Dick Smith Foods was to help Aussie farmers. Featuring a visual showcase of black and white farmer images, the campaign‟s slogan was simple, yet emotive, “Helping Australian farmers leaves a good taste in your mouth.” Tomato growers, dairy farmers, and berry pickers were a few of the farmers highlighted to give strong branding to individual Dick Smith Foods products. Over a four month period, eight variations of the campaign were featured as full-page ads in eight national magazines. These were supported by advertorial and editorial opportunities. The new brand advertisements were also featured on 24 bus sides and bus interiors for Sydney, Melbourne and Brisbane. This $1 million press and outdoor campaign fit neatly into the Dick Smith Foods ongoing strategy of appealing to patriotic Aussie consumers. Since then, there has been very little advertising undertaken by Dick Smith Foods. This is in line with Dick Smith‟s interview with B & T Weekly on 13 November 2000, in which he said the largely PR-based advertising for the brand will cease in the long term and the company will always remain a small player in the field because he is not prepared to spend the mega bucks to make the brand a big player. 9.2 Public Relations Dick Smith has his high media profile working in his favour and he knows how to use it to his best advantage. Whenever he wants some free publicity to promote his food products, he attracts considerable media coverage. Below are just some examples: 9.2.1 Trans-Tasman Balloon Flight The Trans-Tasman balloon flight was initially inspired by a bet with an advertising man John Singleton. John Singleton had stated that you could not fly a balloon from New Zealand to Australia against the wind but Dick Smith insisted that you could. Thus, the bet was set with a wager worth $100,000. Regardless of the outcome, Reverend Bill Crews‟ Exodus Foundation will receive the $100,000 from the loser. Although the balloon flight took two years to organise, the event was nicely timed to coincide with the launch of the first Dick Smith Foods product, the Dick Smith Peanut Butter. Dick Smith took the peanut butter across to New Zealand so John Wallington, his co-pilot, and himself could eat it during the balloon flight. They also had a prototype jar of Ozemite and some Helicopter Jelly. Dick Smith said he was “symbolically bringing the ownership of food back to Australia.” This balloon flight was widely covered in the media. On 22 February 2000, A Current Affairs presented a live interview with Dick Smith in his hot-air balloon as he floated from New Zealand to Australia. 9.2.2 Himalayan Caveman On 1 April 2000, Dick Smith inserted in national newspapers the following advertisement: Although intended as a joke to generate radio talk-back interviews to help market the new Dick Smith Foods products on April fool‟s day, some 32 people aged from 17 to 70 responded to this advertisement. A Melbourne roof tiler, 30 year old Tim Barrot, was finally selected for this adventure. In addition to Dick Smith peanut butter, Tim had Dick Smith helicopter jelly as emergency rations and was allowed a Dick Smith choc biscuit for each media interview he did from the cave. Dick Smith did achieve the objective of gaining free publicity through talk-back interviews with himself and Tim Barrot. 9.2.3 The Great Jelly Tug-of-War Dick Smith Foods held the “Great Jelly Tug-of-War” on Sunday, 3 December 2000 at Bankstown Airport where Captain True Blue, flying Helicopter Jelly, eating Dick Smith‟s bubble gum flavour Helicopter Jelly and attempted to tug Captain Yankee Doodble, flying Foreign Plane Jelly, over the line. Dick Smith said, “I once towed an iceberg into Sydney harbour and even jumped a double deck bus over 16 motor bikes, which gave great news coverage on a quiet Sunday.” This tug-of-war show did give Dick Smith a lot of coverage in the media “on a quiet Sunday” to publicise the launch of his Dick Smith Helicopter Jelly to compete against Aeroplane Jelly now foreign-owned by McCormick of USA. 9.2.4 The $20,000 Cash Giveaway The latest media stun by Dick Smith is to randomly call at peoples‟ houses and if they have one of the Dick Smith‟s products they will get $500 cash. There are a total of $20,000 cash to be given away. And of course, Dick Smith will make sure that there are cameras following him when he gives away $500 cash to lucky households that have Dick Smith Foods products in their pantries. These images appear on TV in programs like A Current Affair and online at Dick Smith Foods website (www.dicksmithfoods.com.au). WANTED Adventurer to live in a cave in the Himalayas for 48 days and only eat Dick Smith's Peanut Butter. Please write to us before contacting Harry M. Miller. Please apply to Dick Smith Foods Pty Ltd, PO Box 398, Terrey Hills 2084. 9.3 Donations and Sponsorships Dick Smith Foods have a philanthropic policy that some 96% of their profits are donated to Australian charities and other important causes with only a tiny 4% back in the business to maintain its viability. In just two years time, Dick Smith Foods had donated over $1.5 million to the community; recipients included the Exodus Foundation, the Smith Family, the Salvation Army, Care Australia, etc. To mark the Centenary of Federation, Dick Smith and his wife Pip also gave a personal gift of $1 million to the nation on 26 January 2001. The donation was spread among a range of national, social and conservation institutions and included a number of special interest projects. Dick Smith is happy that Aussies are not only continuing to support Australian owned companies by purchasing his products, but are also helping thousands of under privileged people. At the start, Dick Smith believed that Australians would support the Dick Smith brand because of the fact that they were supporting Australian farmers. Since the start of Dick Smith Foods in 1999, the company have been able to give away over $4.7 million to important causes in the forms of donations and sponsorships. This constituted 30% of Dick Smith Foods income and over 90% of their profit. However, as turnover has dropped from its peak of about $80 million per annum to nearly $ 8million per annum, Dick Smith Foods have put a hold on their donations and sponsorships since 2000. 9.4 Other Sales Promotion Tools 9.4.1 Dick Smith Foods T-Shirts As part of their marketing communications activities, Dick Smith Foods have two different styles of T-shirts available for sale. One style features the wording “Dick Smith Foods – We‟re Fighting Back” and the other features the wording “Dick Smith‟s OzEmite – We‟re Fighting Back”. The wording appears on both the front and back of the T-shirts. 9.4.2 Dickhead Matches In October 2000, Dick Smith Foods launched their own matches called Dickheads. Dickhead matches are not part of the Dick Smith Foods range but are describe by the company as “purely a marketing exercise and a major protest over the loss of Australia‟s manufacturing skills.” The statement on the box says: Dick Smith Foods were not originally planning to sell the matches but popular demand had forced them to think again. Dickhead matches are now available through clubs, hotels, some newsagents and independent retailers. "We would have to be complete dickheads to let most of our famous Australian brands be taken over by foreign companies. Brands such as Vegemite, Aeroplane Jelly, Arnott's Speedo and Redhead Matches are in overseas hands. This means the profit and wealth created goes overseas and robs our children and grandchildren of a future." A protest from Dick Smith Foods "As Australian as you can get" 10. Conclusions Around the world, the anti-globalisation movement seems to be gaining moment. Dick Smith has picked the social trend before it is apparent to most companies. More and more companies are now marketing their products as being Australian made – multinational ownership notwithstanding. Dick Smith marketed his own Dick Smithbranded foods products as not just Australian made but also made by Australian owned companies, thereby keeping employment and profits in Australia - threatening the brand image of rival multinational brands. We are starting to see the impact of the “buy Australian” theme on the marketing plans of multinational companies. One example is the following extract from a Philip Morris interoffice memo in the USA, giving an overview of their business in Australia (this extract was found on the internet and sent to Dick Smith Foods by Dr. Martin Bicevskis): "To this end, our corporate clout including Kraft Australia will be helpful. However, there is a lot of nervousness on the food side at our including them publicly as part of the corporate body when we are dealing with contentious issues. Kraft is the manufacturer of one of the household darlings of Australia namely Vegemite. Every Australia is born with a jar of Vegemite in his/her hand and would never believe that it is owned by a U.S. company. Kraft Australia is not anxious that a lot of noise be made about this even though some has been made in the past. They fear it may damage its results although frankly I do not think for one moment it would. Nevertheless, I think we need to respect these feelings - they will know better." There is no doubt that the launch of Dick Smith Foods is another successful adventure for Dick Smith and has created some disturbance on the multinational giants. However, some critics labelled this as “nothing more than a money making scheme” in making use of his patriotism image to brand his products and increase the sales and to denigrate his competitors who are predominately foreign own. Nevertheless, one cannot ignore the fact that Dick Smith donated over 90% of Dick Smith Foods‟ profits to the community and he and his wife regularly gave personal donations to the community and other charitable causes. In an interview with B & T Weekly (16 March 2001), Dick Smith himself confessed, “I still tend to agree with the marketing people who say that, in the long-term, the big multinationals will win.” After all, he concluded that “I‟m not greedy, I have enough money. In the end, I‟m just a softie who loves to have fun.” We have yet to see the long-term impact of the “buy Australian” movement in general, and Dick Smith Foods in particular, in changing consumer inertia. Anyway, this case demonstrated that patriotic marketing does work. References A Current Affairs 2001, „Supermarket Stakes: Where Loyalty Wins‟, 3 July 2001. Ausflag 2001, „Dick Smith Defaces Australian Flag‟ Media Release, 30 January 2001. Australian Broadcasting Corporation 2000, „Dick Smith‟s Tasty New Adventure‟, 23 April 2000, http://www.abc.net.au/landline/stories/s119778.htm , accessed 7 February 2003. Australian Food and Grocery Council 1999, „Dick Smith‟s Welcome But Not At Other‟s Unfair Expense‟, Media Release, 23 July 1999. Australian Made Campaign Limited 2000, Australian Made, Issue 2, January 2000. Dawes, J. and Rachel Kennedy, R. 2000, „Success Will Depend on Financial Commitment‟, B&T Weekly, 31 March 2000, p. 16. Dick Smith Foods 2000. „Dick Smith Answers “Australian Made” Newsletter Criticism‟, 29 February 2000, http://www.dicksmithfoods.com.au/dsf5/news_items/index.htm , accessed 16 December 2002. Dick Smith Foods 2000, Media Release: „Great Jelly Tug of War‟, 1 December 2000, Dick Smith Foods 2001, „Dick‟s Policy on Foreign Investment‟, http://www.dicksmithfoods.com.au/dsf5/foreign_investment.htm, accessed 22 November 2002. Dick Smith Foods 2001, „Is Australian Ownership of Business Simply Jingoism?‟, 2001, http://www.dicksmithfoods.com.au/dsf5/ads/media-ad-april-21-22.htm, accessed 2 December 2002. Dick Smith Foods 2012, „Mission Statement‟, http://www.dicksmithfoods.com.au/missionstatement, accessed 31 May 2012. G. O‟Connor 2000, „Letter to the Editor‟, Sun-Herald, 30 April 2000, as quoted in Dick Smith Foods, „ETA Peanut Butter Cuts Its Price 80 Cents to Compete‟, 12 May 2000. Larissa, K. 2000, „Dick Knees Nutri-Grain Where It Hurts‟, B&T Marketing & Media [Online], 13 November 2000. Ligerakis, M. 2001, „Dick and Goliath‟, B&T Marketing & Media [Online], 16 March 2001. Appendix Table 1: Famous Australian food brands now owned by foreign companies Brand Original Australian Owner Now Foreign-owned By Location Beverages P&N, Frantelle, Waterfords P&N Beverages Asahi Breweries Japan Andronicus Coffee Andronicus Co Nestle Limited Switzerland Billy Tea Tata Group India Cottees Cordials Cottees Foods Asahi Breweries Japan Dairy Farmers, Dare Iced Coffee, Oak, Moove Dairy Farmers Kirin Holdings Japan Harris Coffee & Tea D. E. Harris Pty. Ltd. Douwe Egberts/Sara Lee D-E N.V. Netherlands Kinkara tea J. R. Love & Co Pty Ltd Tata Group India Mynor The Mynn Co Asahi Breweries Japan Nerada Nerada Tea BOH Plantations SDN BHD Malaysia Lan-Choo Tea Unilever UK Berri Berri Ltd San Miguel (50%) The Philippines Bushell's Tea Bushells Unilver UK Jarrah Coffee Jarrah AB Food & Beverages UK Biscuits, pies and snack foods Arnott's Biscuits - Tim Tam, Sao, Scotch Finger, Milk Arrowroot Arnotts Biscuits Campbell Soup Company USA Salada Brockhoff Biscuits Campbell Soup Company USA Chiko Frances McEnroe J. R. Simplot & Co. USA Peters Peters Ice Cream Nestle Limited Switzerland Streets Streets Ice Cream Unilever UK Confectionery Allens Lollies - Butter Menthol, Fantales, Minties, Jaffas Allens Nestle Limited Switzerland Mac.Robertsons - Cherry Ripe, Columbines, Freddo Frog Mac.Robertsons Asahi Breweries India Red Tulip Red Tulip Asahi Breweries India Violet Crumble Hoadleys Nestle Limited Switzerland Jams and Spreads Cottees Jams Cottees Foods H.J. Heinz & Co. USA Eta Peanut Butter Eta Foods Ltd Kraft Foods USA Monbulk Monbulk Jams H.J. Heinz & Co. USA Vegemite Fred Walker Cheese Co Kraft Foods USA General Grocery Items Aeroplane Jelly Aeroplane Jelly Co McCormick & Co Inc USA Angas Park Fruit Company Angas Park Fruit Company Bright Foods Group China Edgell Country Garden Gordon Edgell & Sons J. R. Simplot & Co. USA Bundaberg Sugar Bundaberg Sugar Societe Financiere des Sucres s.a. Belgium Dorato Pasta House General Mills USA Fountain W. C. Douglas Cerebos/Suntory Japan Golden Circle W. C. Douglas H.J. Heinz & Co. USA Gravox Klembro Cerebos/Suntory Japan Greenseas Tuna H. J. Heinz & Co. USA Latina Fresh Pasta House General Mills USA Leggos H. M. Leggo & Co. J. R. Simplot & Co. USA National Foods Pura, Dairy Farmers, Berri, Yoplait, Coon, Moove National Foods Kirin Holdings Japan Noble House Pasta House General Mills USA P.M.U Pick Me Up Foods H J Heinz & Co USA Safcol Safcol Australia Tropical Canning Group Malaysia Sunbeam Sultanas Sunbeam Sultanas Bright Foods Group China Tom Piper Tom Piper Co H J Heinz & Co USA Top Taste Gartrell White George Weston UK Uncle Tobys - Vita Brits, Roll Ups Uncle Tobys Nestle Switzerland Food Companies: George Weston Foods Ltd Associated British Foods UK Dairy Farmers Kirin Holdings Japan KR Castlemain Foods George Weston Foods Ltd UK Source: www.dicksmithfoods.com.au