Summary
The thesis project scrutinizes MELLINS, a Swedish company that specializes in vegan and organic food products. Established in 2018 by Joel and Anna Mellin, the company transitioned to an online-only sales model in late 2022 amidst a growing vegan market in Sweden. Despite a significant portion of the population—31%—showing dietary consciousness, MELLINS is struggling to boost both sales and customer loyalty. The central aim of the thesis is to devise strategies to increase sales by 40% by year-end 2023, focusing on amplifying brand awareness and employing effective digital marketing strategies. Methodologically, the study uses a comprehensive approach that combines internal and external analyses including SWOT, PESTEL, and Porter’s Five Forces frameworks, supported by primary data from surveys and interviews.
The report identifies the company’s structure, strategy, marketing mix, and customer engagement strategies. Through a detailed examination of MELLINS’ market presence and competition, the research highlights a significant gap in brand visibility and online engagement. MELLINS’ product offering focuses on organic food, with beans being its leading item. However, the company faces competitive pressures from various rivals, including those marketing to transitional vegans and specialized organic shops. The thesis underscores that to tap into the burgeoning vegan demographic, MELLINS must significantly revamp its digital marketing approach—particularly its website design, user experience, and social media interaction—to improve customer trust and loyalty. Recommendations include launching a loyalty program, enhancing SEO practices, and ensuring clear communication of offerings, thereby creating a more engaging customer experience and positioning the company for growth in a rapidly evolving market.
Highlights
- Sales Goals: MELLINS aims for a 40% increase in sales by the end of 2023 through improved brand awareness.
- Vegan Market Growth: The Swedish vegan food market is expanding rapidly, presenting unique opportunities for MELLINS.
- Marketing Mix Assessment: Product differentiation and digital marketing strategies are essential to enhance customer engagement and retention.
- Loyalty Program Proposal: The thesis suggests launching a loyalty program to convert purchases into sustainable customer retention.
- Market Positioning: MELLINS targets health-conscious and environmentally aware consumers, particularly women aged 35-65.
- Website Optimization Needs: A need for improved design, user experience, and SEO is identified for MELLINS’ online store.
- Regulatory Compliance: Digital strategies must align with marketing laws, ensuring customer data protection and content integrity.
Key insights
Market Opportunity Assessment: The thesis clarifies that despite being a niche player in the wide array of vegan options available in Sweden, MELLINS has a unique value proposition based on health and eco-friendliness. However, leveraging this potential necessitates heightened efforts in public engagement and digital presence. The growth of the vegan population creates a ripe environment for strategic marketing initiatives.
Target Demographic and Engagement: MELLINS’ target segment comprises health enthusiasts, environmentally-conscious consumers, and trendsetters, with a significant concentration among women aged 35-65 who are both health-savvy and active in pursuing sustainable lifestyles. This insight underscores the importance of tailored marketing strategies that resonate with specific consumer motivations and behaviors.
Implementation Challenges: Although the thesis points out the potential for significant sales growth, inherent operational challenges remain. MELLINS faces high competition and customer bargaining power, necessitating robust differentiation strategies and distinctive product offerings to maintain market relevance.
Operational Strategy Validity: The internal analysis reveals that the owner-centric decision-making model may limit scalability and growth potential. By integrating a more collaborative structure with defined roles for marketing and operational oversight, MELLINS can improve agility in adapting to market demands.
Digital Marketing Strategies: The examination underscores a knowledge gap in MELLINS’ digital marketing efforts. There is an urgent need for enhanced SEO strategies, active social media engagement, and digital content that addresses customer inquiries and interests. Investing in these areas can drive traffic and conversion rates, diminishing past shortcomings in brand visibility.
Website Experience Insights: Customer feedback solicited through surveys indicates user dissatisfaction with MELLINS’ current online platform. Critiques revolve around website navigation, aesthetic appeal, and account management processes. A redesigned interface that prioritizes user experience could significantly enrich the customer’s shopping journey.
Long-term Relationship Management: MELLINS is encouraged to cultivate loyalty through a structured loyalty program that is communicated transparently across all customer touchpoints. This program must be designed to recognize purchase behavior, promote emotional satisfaction, and reinforce brand loyalty through consistent rewards and engagement opportunities.
Conclusion
In conclusion, MELLINS has the potential to thrive in the burgeoning vegan market in Sweden, provided it successfully addresses its current deficiencies in digital marketing, web presence, and customer engagement strategies. Key recommendations from the thesis advocate for a significant digital transformation that includes improvements to the website, enhanced social media interactions, and a clear focus on customer retention strategies. Implementing these changes will not only support MELLINS in achieving its immediate sales goals but also facilitate long-term sustainability and brand loyalty amidst an evolving landscape of consumer preferences. By prioritizing these strategic enhancements, MELLINS could position itself as a leading entity in the organic and vegan food product sector, meeting the rising consumer demand for health-oriented and sustainable food options.