Executive Summary:
The following report will present a marketing plan for the famous and old chocolate brand , Haigh’s chocolate, to expand its business by creating brand awareness and brand recognition in the country and worldwide. The report will provide marketing strategy to assist the company in capturing bigger market. Further, the company’s strategies to improve logistics services will ensure timely supply of pallets. The exclusive stores strategies will help to create the distinct image of the company against competitors. Free samplings and promotion posters at the booming stage may attract the customers. The company has to diversify their product line which is currently capturing the market with only few preferred ranges. This step will be attraction for many new customers who prefer different types of chocolates. Whereas the fitness mania in the country, urge the Haigh’s chocolate to make dark chocolates for capturing the healthy lifestyle people. There is a dire need to improve packaging from cellophane to some new and attractive material. However, due to still strong competition prevailing in the market, Haigh’s chocolates company needs to be more responsive to make the customers realize customer sovereignty and increase market shares. Moreover, the marketing strategies highlighted will assist the company in creating brand awareness to reach the best standards for bigger market shares.
Executive Summary: 2
Introduction: 3
Analysis and Evaluation (SWOT Analysis): 5
Competitive Advantage and Positioning & Marketing Objectives 7
Marketing Objectives 7
Target Market 7
Strategies: 9
Pricing: 10
Place strategy: 10
Promotion: 11
Conclusion & Potential Problem Evaluation: 13
References: 14
Introduction:
A company needs to operate under marketing plan to enhance its marketing performance and set a course for marketing department of the company. Marketing plan ensures the marketing activities to be aligned with other goals of the companies. It is essential for the companies to devise marketing plan who aim for their growths. One’s mind cannot deny the High quality chocolates of Haigh’s Chocolates, based in Australia as it is one of pioneer family owned company producing chocolates for entertaining the satisfaction of the customers. The business initiated back in 1915, a long time ago by Alfred Haigh. The company coined its title after the founder’s name. The first outlet ever known of the Haigh’s Chocolates was at Adelaide. But by the passage of time the chocolate business has grown to about more than 14 major retailing outlets in three mega cities of Australia.
The Haigh’s Chocolates accommodates more than 500 employees that work for the company across Australia. The company proudly deals in about 250 varieties of are manufacturing, selling of the chocolate product at the retailing stores, through the use of e-commerce and a factory outlet at Adelaide that encourages visitors to have tours in the factory (Szydłowska-Czerniak, Rabiej and Pawłowicz, 2016)
This report will discuss the marketing plan for Haigh’s Chocolate Company to operate in Australian Market. It will give a detailed SWOT Analysis for the understanding of company and its products to operate in consideration of the points highlighted to devise its marketing strategic plan to attract more consumers through brand recognition and brand awareness. In addition to the detailed analysis, report will further provide marketing strategies for the Haigh’s Chocolate to operate in Australian Market smoothly and efficiently to restore its image of perfection. Following will be the problems faced by the companies while achieving its targets of the research. At last, the report will give a conclusion of the report to give a quick glance to the Haigh’s chocolate and its customers for reviewing its market plan.
Analysis and Evaluation (SWOT Analysis):
Strengths Weaknesses
Its operation since 1912 has created a sense of brand legacy and goodwill among the buyers who find its operations successful from the beginning in Australia.it has Strong brand equity and high quality products. Haigh’s chocolate is the chocolate manufacturer that gives high quality and premium brand chocolates. This aims to control the quality of chocolate effectively. (Kerry,2014) Haigh’s Chocolates already able to the image of trading traditional and healthy chocolates prepared under great artisan skills in Australia. Their products are easily available in South Australia, Victoria and New South Wales, confirming its originality. It offers Wide variety of chocolates in attractive packages. (Milk chocolates, Dark Chocolates, Liquor chocolates, etc.) Because they are responsible of providing a wide range of delicious chocolates, pastilles and blocks for the variety of chocolate loving customers. The perception or the interest of various customers for the Haigh’s Chocolates numerous chocolates also help in developing the sense of the customers’ preferences. . The choice of wide variety of flavors helps to cater a wider range of customers. They have Success of chocolate “Easter Bilby” as an alternative to the Easter Bunny. They have also arranged popular tours to the factory for the community, to witness the production of chocolate; this can create sense of trust and confidence to buy the right choice.
It has vertical supply chain. It has only 5% through retailers, which narrows the customer base too. The packaging of the company is done in cellophane which not biodegradable and create environmental issues for the Aussies. The company’s storage facilities are showing that technology has room for improvement too. The chocolates of Haigh’s have no focus on the impulse buying. The chocolate range is quite narrow as compare to the same standard competitor like Koko Black, which is always step ahead. It has limited stores. The company is in need to cater more customers. The stores are in limited numbers.
Opportunities Threats
Their stores might open new gateways for the customers left unattended. Whereas improvement in packaging and marketing through e-commerce will help them win the edge and stand for global competition for which it is striving for years. The shortage of cocoa due to high consumption of chocolates is a major threat. While the high prices of raw materials, has created a big problem for the pioneers to maintain their prices with low margin of profit. Also, the mediocre are mostly reluctant to pay high prices while the riches might also be reluctant in future if the prices hike abnormally. Lastly, the competition by Koko Black, Lindts, and Cadbury is giving a very tough time while the fitness mania is serving the grievances too.
Competitive Advantage and Positioning & Marketing Objectives The company however dominates the chocolate industry due to its premium quality maintained since its beginning. The Haigh’s chocolates maintained its class and taste to serve the customers of Australia as always. Its finest raw materials result in premium chocolates, one can imagine for. The core objective of Haigh’s Chocolates is to maintain its sustainability in the orientation of the traditional chocolate business (Ramli, 2012)
Marketing Objectives
Haigh’s chocolates aim for providing premium chocolates to their customers retaining their pioneer position in the country. Their main aim is to survive the ongoing competition and attract a larger group of consumers than before. The Haigh’s chocolates aim higher, as it will work on the few loopholes left unnoticed and annoying their customers despite of high quality. They are planning to be more responsive to the tastes of Australians that is more demanding than ever due to increase in population and income. It can be concluded that Haigh’s Chocolates emphasis more on premium customers that belong to the upper economic bar of the society (Levitsky and Zinchenko, 2015)
Target Market
The part has been prepared to understand the elements of Haigh’s Chocolates’ operations in the light of targeting. This is an effective tool of promoting their chocolate products to their customers spread across Australia. This assists the company is focusing on the specific needs and areas of interests of their core.
When referring to the segmentation of markets, it includes making of groups for various customers whose needs and areas of interests tend to be similar to each other. These customers who are seen to respond to the company’s products in more of identical ways are grouped in segments(Weinstein, 2012). Australians consume 6.7 kg confectionary every year, which is contribution of 77% chocolates, with market sale of $2 billion.
In the context of Haigh’s Chocolates, the company develops market segments using the following ways:
Demographics:
The benefit of developing these segments that involve majorly the youth is that there is growth projected up to 5% in the demand in future (Zagha, 2010).The teenagers are focused more who are highly adaptable to the changes prefer affordable luxury chocolates with wide range of experimental tastes but the market captured by old people prefer premium chocolates and can be entertained easily with quality of chocolates. However, they also prefer different tastes often. While the men aging from 35-49 are purchasing chocolates for personal consumption. And the 25-49 aged group ladies buy for the family and kids.
Psychographics
Australians population has increased drastically and they prefer premium chocolates as their status symbols because of their high incomes. They rely heavily on the Haigh’s as it is in the market since 1912 and uses all of the highest quality raw materials. This make them satisfy for the prices they are paying for it. Customers perceive higher the price , higher is the quality of the product. The taste and preferences of people have also changed due to the increase in purchasing power of the citizens (Philip, 2011)
Behavior of the customers
Chocolate lovers are no more bound just to their impulse behavior but they also consider the health point. Kids who are the most valuable consumers prefer this brand because parents want best for their children. The issue arises with the middle aged people who prefer to eat dark chocolates or organic ones which promote healthy lifestyle. They are even buying more chocolates for their family. While the elders who are more prone to diseases, do not sacrifice much on quality and taste. They have their own taste buds.
Geographical location
Despite of entertaining the riches of Australia in Sydney and bigger cities, urge the Haigh’s chocolate company to broaden its customer base and improve the supply chain by introducing the products for the middle class groups through supermarkets, local grocery stores too, particularly on the accessions which demand chocolates as gifts. The company should make sure the availability of chocolates except the exclusive stores operated by the company.
Strategies:
Product strategy
The product will be designed with better material like aluminum and then attractive packaging. It will be done to ensure the customers of the hygiene and premium quality intact. The material used in other packing as shown in the below mentioned model, will definitely remove the customers annoyance of non-biodegradable product in packaging (Stanley, 2009). It will be available in all sizes to cater the needs of all cutomers. Attractive packaging is a key to customers’ attention for the product. Therefore, company need to design best possible packaging for customers’ preferences. Small containers at the time of special occasions will also entertain the customers who will be willing to buy it as gifts for their loved ones. Birthdays, valentines and Christmas can be catered through teddy bears made of chocolates holding strawberry and chocolate blended flowers. Different tastes like orange-chocolate, raspberry-chocolate, honey comb chocolates should be introduced every month beside the traditional premium chocolates. (Adelaide.edu.au, 2015)
Pricing:
Prices cannot be reduced much except few occasions, when the cost can be covered through the sales volume rather than the selling prices. Prices cannot be reduced due to the high cost incurred while manufacturing and premium quality offered to customers. High prices will satisfy both the suppliers and customers’ perceptions. While to cover the mediocre the small sizes as bite sizes can be offered, this can be budget friendly and create demand further. Lowering price being the biggest chocolatier can be a blotch for the company and harm the goodwill of the company.
Place strategy:
The product will be readily available in all the big superstores and whole sellers to make sure the distribution of chocolates(Davenport,2000). The chocolates should definitely be readily available in the higher classes’ areas where it is already operating but the chocolates should also be available near tourist spots and for other classes to increase their sales through awareness. Company should make sure if they are particularly targeting the upper class, they should maintain their services of the stores and facilities of logistics to retain the premium quality of the product, as it will be highly recommended to cover their major proportion of costs through upper class buying. As suggested by Dang, (2012) it has to maintain the quality of perishable good because the storage facilities and chocolates whitening can put a blotch on the brand. The chocolates due to high demand must be placed in eye contact shelves to catch customers’ attention. The chocolates distributed through effective logistics because of being perishable item. The production should be ample to meet the demands of rich Aussies, not less than their demands at least.
Promotion:
Haigh’s Chocolates that is keen to serve the premium customers take note of their preferences and areas of interests (Zeihgam, 2012). The core promotion of Haigh’s Chocolates is done during festive season and various occasions when young couples or family members purchase chocolates for their loved ones. The chocolates serve as gifts to be consumed during special occasions.
This is why the Haigh’s Chocolates stresses more on the packaging and marketing of the chocolate products. When it comes to positioning Haigh’s Chocolates has made sure that the traditional quality, taste and hygiene elements are keep in mind and placed to be the core values of the company. With the customers majorly belonging to the premium class of the society for whom spending money for better quality and differentiation is not an issue, Haigh’s Chocolates makes sure that their interests are addressed (Zeihgam, 2012).
The promotion through media and marketing are very much effective as the majority is influenced through the media power these days (Steve and Keller, 2003). Effective marketing can create the need of chocolates as Australians are consuming confectionary to greater extent. While the rational marketing should also be done to remove any doubts. The social media can also act as a weapon to win competitive advantage over other brands through showing the rich premium quality of chocolate. The upper class that is highly status and hygiene conscious will be eager to pay for satisfying themselves with the premium quality, highly targeted by the company too. Strong and creative advertisements can also create sense of replacing sweets with chocolates, like at the time of Diwali and Eid (Gwin & Gwin, 2003).E- Commerce may further capture the markets left unattended due to infrastructure or outside Australia. This can pave ways to international markets.
Bite sizes chocolates should be first introduced as product samples to create awareness then the same sized samples should be introduced as means of impulse buying for the people willing to buy but cannot afford.
Moreover, the posters placement in different malls, restaurants and public areas can create brand awareness and brand recognition by the majority. Posters must be attractive and designed to cater maximum age groups. Sales campaigns should be done step by step in different age groups to seek their attention. Creating awareness among the kids can be most beneficial as they will be most reluctant to leave the love of chocolates and alter their demands. They can even urge the parents to turn from customers to consumers. While the campaigns for teenagers is also quite smart move as they will prefer chocolates as gifts for their loved ones and among other peers and teachers, which will create brand awareness and recognition as well. They will be most responsive to the media culture because their minds can easily be captured through effective marketing. Promotion through famous celebrities can add up spice to the scene.
Also, offering chocolates as free samples, later for appetizers or used with desserts in renowned restaurants can increase sales for the customers who will be already paying dollars for their meals, so their budget may allow them the buying in future too.
Conclusion & Potential Problem Evaluation:
To conclude, the Haigh’s chocolate company is one of the pioneers and it is not yet ready to adapt the strategies of the competitors to step on their foot. Australians like the culture of cafes but Haigh is highly reluctant to adopt this culture. Moreover, the competitors who are already playing on the prices may not let the other classes except upper class to prefer this brand. Due to inflation, all over the world people may prefer necessities over luxuries and prefer bit lower price chocolates as there are two type of people , one who compromise on quality , one who prefer to pay for the worth of product if it satisfy them. The company due to being pioneer will also encounter the issue that it cannot be afforded due to high prices. Also the shift of world to healthy life style, particularly in Australia for green products has urged the customers to look for organic products or chocolates which are lower in calories. The company should devise policies to retain its quality, brand recognition as well brand loyalty.
References:
Adelaidenow.com.au. 2015. Haigh’s exclusive store strategy works: The advertiser
Dang, A. 2012. Better pallet management keeps sweet demand at bay: Logistics and materials handling.
Davenport, Thomas H., Mission Critical: Realizing The Promise Of Enterprise Systems, Harvard Business School Press, Boston, MA, USA, Copyright © 2000 335 pages.
Gwin, C. F., & Gwin, C. R. (2003). Product attributes model: A tool for evaluating brand positioning. Journal of Marketing Theory and practice, 11(2), 30-42.
Kerry, C. 2014. The Haigh’s book of chocolate: Wakefield press
Levitsky, T. and Zinchenko, N. (2015). STRATEGIC POSITIONING OF BUILDING PRODUCTS IN A COMPETITIVE MARKET. Herald of Dagestan State Technical University. Technical Sciences, 37(2), pp.124-131.
Philip, K. (2011). ‘Reinventing marketing to manage the environmental imperative’, Journal of Marketing, 75(4), pp. 132-135.
Ramli, N. (2012). A Review of Marketing Strategies from the Chocolate Industry. SSRN Electronic Journal, 4(6), pp.45-56.
Steve, H and Keller, K. (2003), ‘The marketing advantages of strong brands’, The Journal of Brand Management,6(8), pp. 421-445.
Szydłowska-Czerniak, A., Rabiej, D. and Pawłowicz, R. (2016). Comparison of the crystallization behaviors of different types of cocoa butters and chocolates. Journal of Food Processing and Preservation, 6(8), pp.67-89.
Weinstein, A. (2012). Consumer Behavior, Research, and Segmentation. Journal of Segmentation in Marketing, 2(2), pp.1-5.
Zagha, N. (2010). A Review of Marketing Strategies from the Industry of Chocolate. SSRN Electronic Journal, 6(8), pp.47-59.
Zeihgam, A. (2012). Consumer Behavior, Research, and Segmentation. Journal of Segmentation in Marketing, 2(2), pp.1-5