Tre Stelle adds cream cheese to its product portfolio

The Arla brand is leaning into baking occasions and colorful, differentiated packaging to take on an entrenched

global player.

It's a question of which cream cheese rises to the top with Tre Stelle's latest product innovation, a new

competitor for dominant category player, Philadelphia. The Arla brand is out with a five-SKU cream cheese

lineup.

The launch is being supported by in-store information provided at the grocery shelf, signage hanging from store

ceilings and $1.50-off coupons to drive purchase.

According to the Tre Stelle cream cheese senior brand manager, its point-of-sale signage, like its packaging, is

bright and vibrant to attract eyeballs.

The new Tre Stelle cream cheese messaging, "tastes like more," is centred around indulgence, and it is focusing

on holiday occasions, particularly cheesecake baking.

The design is meant to be distinctive with a rectangular pack, to further stand out from the competitive set

which are typically in bricks or round tubs.

Previously, Arla had its own branded cream cheese. However, given that Tre Stelle is a trusted brand with 60

years of brand equity, the new branded line is a "perfect extension to our existing portfolio."

The cream cheese category is dominated by one major competitor. However, Tre Stelle's differentiator is that it

has none of the stabilizers or artificial ingredients typically found in other mainstream cream cheese brands,

making Tre Stelle the cleanest category choice.

The company recently invited five foodie influencers to amplify the Tre Stelle Cream Cheese "Tastes like more"

positioning, part of a campaign that came to market in September. It was launched across social and included an

influencer campaign that rivaled legacy brands for taste and spreadability.

The Ala brand also created a "Tre Stelle Caf" sampling program, partnering with popular cafes in major

Canadian cities to offer cream cheese with a bagel. Arla partnered with PC Express for a sample initiative to include its product to consumers in their online grocery orders.

Tre Stelle Cream Cheese comes in a variety of flavours including Original, Organic, Light, Lactose-Free and Herbs

& Spices. It is widely available in stores like Metro, Walmart, Loblaw, and others across Canada. Tre Stelle

Cream Cheese can be found for about $3.99 for a 200g package, about the same price as the leading, national

brand.

1) Arla is using traditional grocery stores as their main channel. Describe two non-traditional channels they could use and explain why they

would work for this product. What factor does Arla need to consider when choosing these channels?

2)What stage in the PLC is the cream cheese? Describe two things that Arla could do to increase the rate of adoption of the cream

cheese.

3)Now that Arla has set the base price, explain two pricing tactics that they should use to sell more cream cheese.

4) What type of product is Tre Stelle Cream Cheese? Arla has decided to use the Tre Stelle name for their cream cheese. What is this

called? What benefits will they get from using the Tre Stelle name.

5) Outline two ingredients of the promotional mix that Arla should use based on the product's stage in the PLC and AIDA. What is the goal

of promotion in this case?