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Market Of Red Rock Deli Chips

1651 words (7 pages) Essay in Marketing

5/12/16 Marketing Reference this

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The purpose of this report is analyzing the market of Red Rock Deli Chips. It is extend from 6 different areas: Target market, product subjective, price, place, branding, and promotion.

The product is Red Rock Deli Chips which is one of the products of Smith’s. Smith’s is one of the biggest companies in the area of snack food in the world. For over 75 years Smith’s potato chips have been Australia’s favorite chip! As the second important set in Smith’s company, Red Rock Deli Chips totally has 3 general types: Red Rock Deli Potato Chips, Red Rock Deli Potato Chips, which Cooked in 100% Olive Oil and Red Rock Deli Rice Chips.

Ingredients of Red Rock Deli Chips are potatoes, sunflower oil, and salt. Furthermore, Red Rock Deli Chips is regarded as the better choice in potato chips.

Target market

The target market of Red Rock Deli Chips is based on the consumer market. It refers to individuals and families who are going to benefit from the product but not aim at making a profit.

Smith’s company use many ways to research consumer’s taste tendency. Such as Free Sample, company organized its staff give Red Rock Deli Chips to pedestrian. There are many people assign to what type of taste they really want. At last, it can be found that which taste is most popular by customers.

For demographic variables, the target market of Red Rock Deli Chips covers the age from children to senior, According to people’s appetite, there are two different size sacks, small and large.

For psychographic variables, it tends to meet the demand of people who want the healthy and good taste at the same time. Chips always contain high calories and are regarded as unhealthy snack. But now the company has improved their product by reduce calories to a great extent. For example, Red Rock Deli Potato Chips – Cooked in 100% Olive Oil, different with other oil, olive oil can reduce cancer risk, and because that olive oil particularly delicious, just use a little, it can work as well as large volume’s oil. As this, it can reduce calories.

For geographic variables, Red Rock Deli Chips has spread their products to almost Super market, and grocery in Australia and some western countries, no matter what religions and what income level. For behavioral variables, as Smith’s has established their own high quality brand Followed their guiding principles – We must always strive to:

Care for customers and the world we live in

Sell only products we can be proud of

Speak with truth and candor

Balance short term and long term

Win with diversity and inclusion

Respect other and succeed together

As a product of Smith’s, Red Rock Deli Chips create different taste suited with different favor’s people. “Red Rock Deli roughly cut potato chips slowly cooked the authentic way and seasoned with delicious deli-inspired flavors.” As a global company in the world, Smith’s adopt the variable strategy as their Sustainable development market strategy. It developed a large number of loyal customers. It is easy to find that the target market is so general that it almost includes all the consumers in the market.

Market Mix


There are 4 elements that been used to evaluate the value of product to customers:

The core product

It is used to find out how the product can satisfy needs and wants for customer. Therefore the core benefit of Red Rock Deli Chips is depends on its variety, satisfied all kind of requires.

– The expected product

Marketers generally try to differentiate their offering using fundamental characteristics such as branding, packaging and quality standards at the expected product level. (Elliott, 2010)

From surface packaging, Red Rock Deli Chips use appealing picture described the ingredient of the chips, fluky attract customers.

The augmented product

The augmented product level enables marketers to significantly differentiate their offerings from those of competitors. (Elliott, 2010) As a result of augmented product level, Red Rock Deli Chips has showed that they try to offer customer different product range such as variants in flavors, various retail pack size. And most important is they try to find a health way to fix chips, make customers satisfied.

The potential product

The potential product comprises all possibilities that could become part of the expected or augmented product. (Elliott, 2010) In this level, there still have some thing can be filled in Red Rock Deli Chips this product. For example, they can try to make snack food health, which means put some ingredient which are good for people’s health, but also keep it original taste.


Red Rock Deli Chips

Other brands

It is obvious to find that the price of Red Rock Deli Chips is higher than the same product of other brands. The price of Red Rock Deli Chips (various) 185g in normal is $4.18 while other brands chips is almost from $2 to $3. Even though the price of Red Rock Deli Chips is much higher, but it still has more sold than others. This is because Red Rock Deli Chips have a good brand and good taste, when people look its brand, they will have good opinion about it. Because of the brand, consumers trust their products so they do not mind the higher price.

Pricing objective

There four factors that should be concerned in price decision making.


All companies seek to make a profit to reward the business, earn more money. Just as Red Rock Deli chips, it has higher price, thus they can get higher profit.

long- term prosperity

It is important to recognize that sales volume and satisfied customers alone do not guarantee profitability; Price must reflect the long-term costs of production and distribution. (Elliott, 2010) Therefore, Red Rock Deli Chips’ price must be acceptable, cannot be too high.

-market share

Adjust price can increase the sale volume of the product, so company should think about this factor.


Price is therefore crucial in how the organization’s offering is positioned in the minds of each of its target market segments” (Elliott, 2010). Thus, Red Rock Deli chips tie to used pricing in order to achieve their own position.

Place (Distribution)

There are four types of marketing channels for consumer products. Channel A means the producer sell the products to consumers directly. Channel B means the producer sell the products to the retailers and then the retailers sell the products to the customers. Channel C moves goods from producer to wholesalers and then move to retailers, the retailers sell the goods to the customers. Channel D adds a step between producer and wholesalers which is agents or brokers.

Channel B is Smith’s Company’s selling strategies. Smith’s sell its products through resellers to customers, there are different resellers such as some small food shop, like metro store 7-eleven and C-store. And also in big super market, for example, Woolworth and Coles. Smith’s can easily catch customers’ attention as the convenient stores used to put them with different flavors together and also because they are packaged in fresh color therefore, it is conspicuous among the products.


“Brand refers to a collection of symbols, such as a name, logo, slogan and design, intended to create an image in the customer’s mind that differentiates a product from competitors’ products” (Elliott, 2010) Smith’s company has build their products in a healthy diet. Aimed at using health oils, salt reduction to enjoy the health died. Their slogan is “We have the most delicious chip”, which is one of the most strongest slogan in Australia. Make people have deep image. Now, when buying organic tea, people will view Smith’s as the first option because they have high awareness to Smith’s and perceive it as a healthy product.


Promotion is the creation and maintenance of communication with target markets. A term for promotion that is growing in popularity is ‘marketing communication’. (Elliott, 2010) Smith’s has provided a communication system on telephone-fax-E-mail, ( that used for customers to connect and communicate with the company. Smith’s does not spend much money on advertising, people can hardly catch any advertising about Smith’s chips through TV, newspapers, magazines, poster or handbills. But they use another way to introduce their product – by handsel free examples to walkers. And it did worked, this make customers really touch the product, taste its taste, and give customers deep impression about the product.


In conclusion, using successful selling strategies, Red Rock Deli Chips performances well in its product and win a good opinion from public. Due to Red Rock Deli Chips can be found in almost every food store in Australia, and its super value that delivered to customers, it becomes more and more popular that seems has dominated the snack food market.


Reduce price: pricing is one of main factors influence customers, and as the situation that Red Rock Deli Chips is higher than other brand chips, if reduce some price, it will attract more customers than before.

Develop International market: Smith’s company should go forward more International country, and thus it can earn more profit and have more customers.

Greg Elliott. (2010). Marketing. Milton QLD: John Wiley & Sons Australia, Ltd

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