Australian chocolate maker Donald B and confectionary company, faces highest rate of competition from the foreign companies such as Mondelez International, Hershey’s, etc. Donald B has decided to sell its products via specialty stores of Australia such as Coles, Woolworths, Aldi, etc. The marketing strategy of the company is highlighted in detail, in the report.
Market segmentation of Donald B
Geographical segmentation –
According to the segmentation done on geographical basis, the company must on offering its products to the customers those who are based in Australia and sell those products according to the needs and demands of the customers.
Psychographic segmentation –
On the basis of the psychological segmentation, Donald B would target those customers who are health conscious and the consumers who believe that the chocolate consumption is good for health.
Demographic segmentation –
According to the demographic segmentation Donald B must target its market where it will be beneficiary for the company to sell the products. For instance, the company must target the youngsters and kids as they are the one who crave for chocolates.
Donald B, the chocolate company must place itself in front of the customers as the brand which supplies the best quality product as well as low prices, so that it could be afforded by the customers having the low income group.
Marketing Mix elements of Donald B
Pricing Strategy that should be followed by Donald B –
The competition based pricing strategy must be adopted by Donald B which is to set its own pricing structure by researching the present prices from the rival markets accordingly.
Different stages of product that Donald B should apply –
There should be different stages of product that Donald B should make in its company. This is just to ensure that people from the entire income group get benefitted by consuming the product of this company.
Products and services that could be offered by Donald B –
It is obvious that the products and services that could be offered by the company must attain the needs and demands of the customers based in Australia. For instance, the consumers in Australia are very health concerned, so the company should focus on producing those products which is good and healthier for consumption.
Presently, promotion of product is not as hectic as it could be done through online social media platforms, giving pop up ads through different websites, and via the company’s official website. However, the company can take assistance through several below the line and above the line communication.
Distribution decisions –
The distribution channel must be stronger and be very effective so that the allocation of the product must be done properly. The company must set up its retail chains and build strong alliance with the local retailers and e-commerce retailers such as eBay, Amazon, Coles, Aldi, Woolworths, etc. who could effectively distribute the product in the market.
People or the stakeholders of the organisation, which includes customers, partners, owners, investors, stockholders and employees of the organisation.
Physical Evidence –
The physical evidence or the proof of the company’s existence is through the placement of products in the market and the existence in the official website and online social media platform.
The process which is followed by the company Donald B is very easy, which includes manufacturing of chocolates, performing market research of the pricing strategy, and distribution of products to customers via retail stores.
Current market situation
The operators in the chocolate and confectionery manufacturing industry have been facing the changes in the demands, needs and tastes of the customer since 5 years. Consumers today are more concerned about their health so the demand for the traditional confectioneries and chocolates have decreased especially in relation to the mass produced products. The industries also diversified their ranges of product in an attempt to make healthier products which will lessen the number of customer moving on to the substitute products like yoghurt.
In the year 2017, the chocolate market in Australia was $ 2.9 billion and is projected to exceed $ 4.3 billion by the year 2023 because of the increase in the consumption of chocolate and growing demand for the niche product categories those are like chocolate products those are organic in nature. However, the chocolate manufacturers have increased while focusing more on innovative way of producing those items (Confectionerynews.com, 2019). For example, the launching of new Cadbury Dairy Milk which contains a flavour of mint and strawberry, in the market by Mondelez is expected to be quite influencing in the tastes and preferences of the customers in the future. Rise in the health conscious products due to the health sensitisation of the customers and severe growth in the e-commerce in the Fast moving consumer goods are usually few factors that would enhance the growth and development in the food product market in Australian chocolate market during the time of forecast.
Benefits and product features
Chocolate products of Donald B are completely natural, organic and hygienic. This brand produces the quality of the chocolates which helps in maintaining the factors of health of the growing consumers in the market. Products like cocoa, crystallised or grazed fruit, confectioneries, liquorice, candied nut, candied popcorn, marshmallow, liquorice, drinking chocolate, etc. are produce under this brand. The chocolate products comes with additional tasting flavours like strawberry, vanilla, blackberry, dark chocolates, etc. keeping in mind the benefits of customers (Kizil et al., 2013). Focusing on the young customers or kids the products are designed accurately, efficiently, and attractively so as to attract the children while pertaining to the concerns of their parents. This company will also produce the products like milk chocolate, dark chocolate, white chocolate, etc. which will come along with additional flavours and essences.
Donald B is manufacturing chocolate and confectionaries while looking in to the health and hygiene concerns of the customers. The market review of the product is positive, as it provides services those are related to the concerns of the customers starting from the young age till the adult hood and way beyond that (Emailup.s3.amazonaws.com, 2019). The chocolate manufactured by Donald B Company pertains to the change in the tastes and preferences of the consumers with variations in sizes, so that people from the entire income group can afford to buy their products.
There are several other rival groups in the field of manufacturing chocolate. Mondelez International, Cadbury, Ferrero Rocher, etc. are some of the rivalry companies which must be allocated and identified by the manager of the Donald B Company, so as to determine the pricing strategy in relation and comparison to the other companies. Donald B is a new company, so it needs to penetrate into the market for its existence and for this reason the company has to lower the price of its product to attract more customers and give few perks to the employees and exclusive offers and discounts to the customers (IBISWorld, 2019). This will enforce the behaviour of the company in the market so as to enhance the status of the business.
Channels and logistic review
Wide across Australia, Donald B chocolate and other confectionaries are available. It is also focusing on opening several outlets inside and outside the country. This company has intensively been trying to acquire the equity on distribution. But yes, it takes hard work and effort to build the equity on distribution, but after building the equity on distribution, it is very hard to wither those away (Consumerpsychologist.com, 2019). With the advent of new and innovative technology the rival slash pressurises which enhance the difficulties of the product differentiation in the market. In the price and product parity situation the highest number of customers will get attracted towards the brand if the level of the sales of the brand is more. To ensure this large distributional channel and logistic review of Donald B which include warehouses of production where the whole production procedure of the chocolate will take place. The whole process is followed by the wholesaler and then after it will be followed by the retail services.
Objectives and issues
The objectives is to set up a new capacity and increase in the volumes and distribution through the innovative promotions of the consumer and offering the trade support of the key price points. This is to getting more people to eat more chocolate, which will be calling for making the chocolate affordable and innovative. This will aim for the larger footprint in the space of confectionaries (Blog.euromonitor.com, 2019). Maintaining the trust from the customers on the Cadbury products which comes from the images those are projected by the qualities that have been set up by the company. The company is also inclined to other objectives like the advertising objectives which is to be focused on the branding, packaging and innovation of the product and to maintain focus on the health, nutrition and fitness of the product.
Marketing Strategy: Positioning, Price, Product
The segmentation is done on geographical basis, the company must on offering its products to the customers those who are based in Australia and sell those products according to the needs and demands of the customers (Euromonitor, 2019). Products and services that could be offered by Donald B – it is obvious that the products and services that could be offered by the company must attain the needs and demands of the customers based in Australia. For instance, the consumers in Australia are very health concerned, so the company should focus on producing those products which is good and healthier for consumption. Pricing Strategy that should be followed by Donald B – the competition based pricing strategy must be adopted by Donald B which is to set its own pricing structure by researching the present prices from the rival markets accordingly.
The decisions of the distribution are taken via distribution channels that must be stronger and be very effective so that the allocation of the product must be done properly (IBISWorld, 2019). The company must set up its retail chains and build strong alliance with the local retailers and e-commerce retailers such as eBay, Amazon, Coles, Aldi, Woolworths, etc. who could effectively distribute the product in the market. Even there is age distribution in the market maintained by the chocolate manufacturing industry.
Market communications strategy
The strategy of the communication is through the advertisements which the Donald B Company is manufacturing this is to develop the preferences among the people for the chocolates to sweets and stimulating the demand for the chocolates in the occasions which are joyous and festive (Wordpress.com, 2019). This is to be communicated to the targeted audiences who are mainly to the youngsters of these generations. These could be communicated through the online social media platforms and through the official website of the Donald B. The advent of new and innovative technology brought for the new media platform of discussing the communicational channel.
The marketing research is done on to look on to the attractiveness of the growing market industry of chocolate. The marketing research is done on to believe while creating great obstacles for any new entrance to penetrate the market. The research is to gain attractiveness and resilience to the returns on the investments which had been made faster so as to create the monopoly business in the market (Marketresearch.com, 2019). The marketing strategy is based on the penetration activities to research on the marketing growth strategy so as to maintain the effectiveness in the market share of present products, reform the mature market by driving the competitors out of the market, securing the dominance of the growth markets and increase in the usage by existing customers.
The marketing organisation could be any public relations institutions and media those are involved in the marketing and advertisement procedure. But with the advent of new and innovative technology through online social media and other internet website and media, the company can extend their business platforms throughout the globe (TechSci Research, 2019). In the present world, marketing have been easier to comply with as there are no such costs which are related to the promotion and advertisement of the products in the market.
Several action programs have been initiated so as to launch the product in the market. Health is the main factor of this company to take into consideration, apart from that the tastes and preferences of the customers are initiated and organised the planning of the business as well as of the products. There are other sustainable and ecological factors which the company has taken into account in controlling the pollution of the environment and also of maintaining good products so as to check on the safety and security of the health and hygiene of the products which they are producing. Focusing on the young customers or kids the products are designed accurately, efficiently, and attractively so as to attract the children while pertaining to the concerns of their parents. The organisation will also look up into the planning procedure within the organisation itself so as to maintain the welfare within the workplace and in the place of production.
As it is a new company, so the budget of this company will be very low at the beginning which will only produce specific chocolate based confectionaries products, this has been regulated to attract the customers with their uniqueness and exclusive product pattern. The first budgetary investment to be made for the establishment of the company and for the production is around $ 2 million, but later on after the company gains profit out of the sales, the budget will gradually increase will lead to high expenditure leading to enhance the production of the sales value of the company. The budgets is then redistributed to several different channel like in the placement of the product, cost of operation, cost of production, packing, packaging, branding, imaging, advertisements, etc. The budgetary policy of the company is under the financial policy of the company to determine the profit margin of the company, so it needs to be pre planned on the basis of the structure of the market and the existing condition of the companies those are there for several years. At first the company could produce only few product items like milk chocolate, white chocolate and dark chocolate, but later on it could delve into producing products like cocoa, crystallised or grazed fruit, confectioneries, liquorice, candied nut, candied popcorn, marshmallow, liquorice, drinking chocolate, etc. when the budget is higher than the initial level of production.
The establishment of the company is not the integrated factor and to be discussed with, it is also with the government, legal and other administrative bodies of the company where it is situated in as in this case it is Melbourne, Australia. This is mainly the integrated force of the whole framework of the company. There are several obligations relating to the production of the products and this needs to be done in accordance with the product viability in the market as well as to the consumer. The company need to think about the welfare of the employees, workplace, customers, and most importantly towards the environment. There are several legal complexities prior to the opening of the company which is to seek that the products which are produced are eco-friendly or not and several other factors which are related to the production of those products.
It can be concluded by saying that Donald B is a new chocolate manufacturing company, which must go through its marketing policies and strategies for maintenance and existence fo the business. This report gives a follow up of the SWOT analysis which helps in determining the strengths and opportunities as well as the threats and weaknesses. By this the company can ensure about improving certain factors which it lags. The company product, place, price and promotional structure are provided in this report in order to verify the status of their products in the market. The company’s budgetary policy will help the company to compete with the other industries in the market so as to attract more customers keeping in mind the profit making margin of the organisation.
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