The Secret strategy Behind Tim-Tam Flavours

THERE’S nothing more exciting than a Tim Tam  new flavour surprise

TIM-TAM  recently have innovated the around 50 new flavors and packaging in according to battle the competitor in chocolate biscuits industry ( 2016). In today food industry the needs of a unique product are become more and more popular for big brand to remain compatibles. According to there is shifting from highly homogeneous to non-homogeneous demand in the market which create a greater variety of consumer’s preferences to the product. (Solomon, 2007)

To adjust with the shift of consumer preference from homogenous to highly variable. Arnott’s company have successfully innovating the valour of Tam-Tam biscuit according to different segmentation in the market, for example the classic Tam-Tam which satisfy the


needs of older generation and Raspberry Coconut Cream flavours which targeting younger consumers. Clearly, behind this success, the Segmentation, targeting and positioning strategy is highly important to implement, to ensure that every flavor can be saleable in to market.

STP  is a marketing model that consist three integrated stages; Segmentation, targeting, and positioning.  The “segmentation” is the process of grouping customers into a particular segment. The “targeting” is the process to decide which segment to serve. And the “positioning” process is implemented the product base on decided segment and apply promotion, distribution, and pricing.

To be able to success in the market a new product have to pass the STP process. According to (Dibb and Simkin, 1991) through the STP assesment the products is designed to offer specific value for a particular group of customers which create alignment to a particular demand and ensure that it will saleable. For instance, in order to successfully introducing a various number of flavour Tam-Tam utilise the STP model.  This evidently have ensure that every flavour is alight with a particular taste of consumers and create market demand for every flavour. Therefore Arnott’s management can ensure that Tim-tam is holding the biggest market share in the chocolate biscuit market. (, 2016)


The segmenting is a process of grouping the customers according to a particular variable. The segment variable is including, geographic, demographic, psychographic, and behavioural segmentation. (Iacobucci, 2013)36D4BA6100000578-3721216-image-a-1_1470215645080

  1. Geographical Segmentation– divide the consumers according to the location; countries, regions, states, cities or the neighbourhoods. This segmentation usually simple to implement and common in retail industry. (Iacobucci, 2013)
  2. Demographic Segmentation – divide the consumers according to age, gender, family life cycle, family size, income, occupation, religion, education. This commonly used for body care products which have different type of product for different age or gender.
  3. Psychographic Segmentation – grouping the consumer based on their lifestyle, social class, and personal preferences. Usually use for exclusive product such us in fashion or automotive industry.
  4. Behavioural Segmentation – the market are divided according to the user’s knowledge, attitudes or response to a product. This usually implemented for highly repeated purchase product such as groceries or restaurant products.

Importantly, before selecting a group, a marketing research must implement. After the market research data is available, the segmentation process can be implemented. (Iacobucci, 2013)


Targeting is the process to decide which segments to target by finding the most profitable one. in this stage there are 4 step that has to be implemented.


  1. Evaluate market segments –first analysis the profitability and sustainability of the market segment by looking at segment size, growth pattern, attractiveness, and current competitor.
  2. Selecting target market segments – this step involves decide one segment and choose marketing strategies either differentiated, concentrated or micromarketing strategies.
  3. Socially responsible – considering the PESTEL analysis political, economy social, technology, environment, and legal which can become a barriers.

It is important to select one segment at a time, to create an effective targeting process. (Iacobucci, 2013)


Positioning is the process of building a consumer impression about the product in their minds. product can be positioned in consumers mind according to the price and/or product competitiveness in the market. Customers is highly influenced by the value of the brand. Therefore there are 4 factor that can identify the right positioning strategy:


  1. Identifying value differences – the product must offer a specific value to consumers, according to Iacobucci, (2013) a value of a product can easily memorised by a costumers. Therefore the product that offer a specific value associate with high market share.
  2. Choose competitive advantages – a product must different from the competitors, a positive differentiation point can increase the consumers’ willingness to buy particular product
  3. Selecting Positioning Strategy – establishing the information such as a market segment, a concept, a value, and a competitive advantages of the products. Maintain the plan to be implemented effectively to the product.

To sum up the STP model is implement to position and target different groups of customers more efficiently and give over view of business opportunities.

Reference (2016). Tim Tam. [online] Available at: [Accessed 7 Aug. 2016].

Dibb, S., and Simkin, L. (1991). TARGETING, SEGMENTS, AND POSITIONING. Intl J of Retail & Distrib Mgt, 19(3).

Iacobucci, D. (2013). MM. Mason, Ohio: South-Western.

(2016). There’s nothing more frustrating than a Tim Tam that conceals a surprise new flavour.. [online] Available at [Accessed 6 Aug. 2016].

Solomon, M. (2007). Consumer behavior. Upper Saddle River, N.J.: Pearson Prentice Hall.


Author : Dewa Agung Yudhistira (216206544)



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