Discuss about the Intention and Actual Purchase Behavior.
The report aims at providing an analysis on the marketing environment. An analysis of the marketing environment involves the micro and the macro environment that remains vital in understanding the impact of the local, national and the international factors on the small businesses. These factors seem to be outside the direct control of the business owner. Here the report revolves around Donald B, the chocolate maker with two stores in Melbourne. The chocolate maker not only wanted to grow on a national and international scale but put up competition with the larger rivals. Moreover, he also wanted to start selling through Coles, Woolworths and Aldi along with the creation of the specialty stores. Therefore, the report commences with a discussion on the buyer behavior in terms of the chocolate products. There is an analysis of the microenvironment in relevance to the suppliers, publics and the marketing intermediaries. The report also does a competitor analysis with special focus on their offerings and target market. There is a macro environment analysis that deals with the societal influences on the chocolate products along with the economic, natural, demographic, technological, cultural or political trends.
The buyer behavior in terms of chocolates can be determined based on the social and psychographic factors (Nayeem & Casidy, 2015). The culture and society determines the buying behavior of chocolates in a country. Chocolate refers to such products that are easily available and consumed by mass. The crucial point however lies in the fact that the consumers for the chocolate market looks for varied products and demands them as per their taste. Chocolates are symbolic to occasions like Christmas. Hence, the chocolate manufactures focus their attention towards societies that gives importance to such occasions. From the societal perspective, occasions forces the consumers in making a purchase for gifting thereby resulting in the enhancement of chocolate sale. On the other hand, the psychological factor that influences the buying behavior of chocolates includes motivation, health, attitude and learning (Wee et al., 2014). Thus, from the psychological perspective motivation represents a key factor that helps in driving the chocolate sale. Health represents another psychological factor that influences the consumer buying behavior for chocolates. This is because it is a known fact that too much chocolate consumption has an adverse effect on health. Perception also represents a key factor in influencing the buying behavior of the chocolates. This is because it is the consumer’s perception that differentiates a company from the competitors. The buying behavior of the consumer is influenced by learning which represents the experience the consumers already have regarding the products.
Now if one consider the buying behavior of Australian population it is found that the Australians on an average buys at least a single chocolate bar in a period of four weeks. Supermarkets seem to be one of the favorite places for purchasing chocolates of close to five million people (Marsh et al., 2017). The petrol stations follow this and the convenient stores that accounts for close to eight percent purchase of chocolate bars. It is only one percent population that purchases from the milk bars and the vending machines. Close to thirteen percent of the people remembers buying chocolate bar but cannot remember the place from where they made a purchase. Further, it was found that women bought chocolate bars solely from the supermarkets while men bought them through the vending machines, cafes and the milk bars. The favorite supermarket brand of Australia has been the 50 mg bars of Cadbury while Snickers has been the most purchased item from the vending machine (Haskelberg et al., 2016).
However, the year 2011, have witnessed a decline in buying behavior of the chocolate bars amongst the 14 years age group from a 35 percent to 33 percent (Bennett, Greene & Schwartz-Barcott 2013). Amongst the non-grocery buyers who buy a chocolate bar in four weeks time, 75 percent buys it from the supermarket that is only two percent behind those consumers who visits the supermarket for groceries. Although it would be a bit weird for the other retailers to go into a competition with the supermarkets based on the price, therefore they should adopt different means for enticing the shopper for buying the chocolate bars.
Although chocolate bar is the most popular choice of chocolate in Australia but it is followed by 41.8 percent preference for chocolate blocks and 19.2 percent preference for the boxed chocolates (Thaichon et al., 2018). The idea behind the choice of the chocolate box is primarily for a gift to friend or special occasion like Christmas and Easter. However, some people even prefer it for themselves.
Suppliers: In addition to suppliers like Cadbury, Nestle, Mondelez, Mars, Lindt, Ferraro Rocher, Belgian Delights and Crest Chocolates Australia have the one of the finest confectionary and wholesale suppliers of chocolates that provides handmade chocolates, truffles, chocolate hearts, liquid chocolate, nougat and fudge. Some of the prominent suppliers include:
Marketing Intermediaries: They help in promoting, selling and making the chocolate products available through purchase, resale and contractual arrangements. These include the groceries, supermarkets, convenience stores and the online retail. Each of the intermediaries receives the item at a single point of pricing and moves it to next highest pricing point until the item reach final buyers (Armstrong et al., 2014). The description of each of the market intermediaries are as follows:
Groceries: They are the bulk sellers of the chocolate item. A grocery store also offer packaged and non-perishable food items mostly in cans, boxes and bottles. Some of the groceries also sell bakery products and fresh items.
Supermarkets: They represent a self-service store that provides a variety of chocolate items, household and food products organized into the aisles. They not only have a wider selection but also a wider size in comparison to the grocery stores. Some of the examples of supermarket in Australia include Coles, Aldi and Woolworths. In Australia, however, supermarkets represent one of the well-known places for buying chocolate products.
Convenience Stores: They represent a smaller retail business that ensures stocking a wide range of the everyday items like chocolates, confectionaries, groceries, snack items, tobacco products, soft drinks, counter drugs, newspaper and magazines and toiletries.
Chocolate Boutiques: These boutiques helps in showcasing extravaganza of milk, dark and the white chocolates manufactured from higher grade Peter or Belgian chocolate. Whether a person is a chocoholic or chocolate novice, the boutique offers some item for everyone.
Online Retail: This intermediary puts forward a procedure that enables the customers in searching, selecting and purchasing a specific chocolate through a remote means through internet.
Relevant Public: They represent the internal stakeholders who expresses an in the chocolate manufacturing company and possess the power of influencing a business. The key stakeholders in an organization include the employees, investors, suppliers and the customers (Ayuso et al., 2014). There are additional stakeholders of an organization that includes the government, community and the trade associations. Internal stakeholders represent the people who develop interest in a company through direct relationship like the ownership, employment and the investment. Investors are the stakeholders who remain influenced by the business outcome. There is a common problem with stakeholders is that their interest might not be aligned which results in direct conflict. The main goal of an organization from the shareholders point of view lies in enhancing the value of the shareholders and maximizing profits. As the labor cost represents the critical cost of input for most of the companies, therefore a company might take steps in keeping the cost under rigid control. This might have an influence on the other group of the stakeholders thereby making them unhappy.
Competitor analysis in marketing refers to the analysis of the strengths and the weakness of the potential and the current competitors of a company (Grant, 2016). The analysis helps in providing both the defensive and the offensive strategic context for identifying the threats and opportunities.
Donald B will have competition from chocolate makers like the, Mars, Mondelez Nestle, Lindt, Cadbury, Belgium Delights, Ferraro Rochers and Crest Chocolates. In addition to this, the manufactures will face competition from the five exceptional chocolate makers of Australia. They include Kennedy & Wilson. Behen & Co, Zokoko, Haighs and Daitree Estates.
Kennedy & Wilson is known for the unusual boxed chocolates that include duck shaped after dinner chocolates mostly consisting of the flavors of cinnamon, coffee, mint or orange. Again close to 81 percent of the cocoa chocolates of Kennedy & Wilson have the natural bitterness, aromatic spiciness and the punchy taste of the coffee bean (kennedyandwilson.com, 2018). The boxed chocolates are available in either dark or milk and never last long once opened.
Zokoko offers forty five percent milk chocolate and seventy percent dark chocolates available in bars that are packed elegantly. The sixty-eight percent dark chocolate known as the Alto Bene Bolivian is made from the organic cocoa that has a blend of the honey and citrus notes (zokoko.com, 2018). Zokoko also offers a seventy two percent Boliovian chocolate known as the Tranquilidad and is made of dried fruits having a bittersweet balance. This also won the award for the best chocolate bar in the dark chocolate category at International Chocolate Salon held in the United States.
Bahen & Co mostly makes flavored dark chocolates that remains and makes it available in a fanciful packaging (bahenchocolate.com, 2018). However, one needs to spend $50 dollars to experience the unique taste of the chocolates.
Haighs represents one of the fewer companies in Australia that makes chocolates from the scratch by making use of raw cocoa (haighschocolates.com, 2018). The company mostly sources the UTZ certified beans for ensuring that the farming is sustainable and ethical. They are known for their fabulous range of the Easter chocolates.
Daintree Estates have taken the local made chocolates to a different level since it is the only Australian chocolate maker who not only grows cocoa beans but also use the local sugar and dairy products(20). They produce close to seventy percent of the dark chocolates in small expensive bars. The chocolate bars have flavors of berries, cinnamon, liquor and banana. The signature bar of the Daintree Estates is the organic dark chocolate bar, Goodman Estate, made from single origin consisting of the citrus notes and the floral clove
In the perspective of society wide influences people buy chocolates either through influence of advertisements or through the influence family and friends. People living within a society mostly buy chocolates for themselves or for gifting to the immediate friends and family. They also buy chocolate for expressing particular emotion to loved ones. These emotions mostly comprises of pride, sympathy, love and celebratory support (Glicerina et al., 2014). Chocolates also have their association with the special occasions. Thus, the link between the chocolate and the Valentine Day and Easter remains quite widespread across globe. This resulted from the seamlessly unbreakable link between chocolate and love and chocolate and fun brought about by modern marketing. In occasions like Easter, chocolate represents fun since various companies design them in the form of chocolate bunnies and the colorful chocolate eggs. Similarly, chocolate has become a symbol of love on the Valentine’s Day. This is a day when men buys chocolate for the women in the hope of winning hearts or their affection. Thus, it is found that more than taste chocolate is primarily bought for bringing in joy and act as an inspiration for love.
Political: The government of Australia is aware of competitive landscape that characterizes the chocolate industry as a vital part of consumer industry. Specifically the stability in the Australian political climate contributed to the significant growth of the industry over the past two decades. This growth accounts for 32 percent of the total value in the consumer food service (McNair 2017). The positivity in the projection is primarily due to stability in the political climate of Australia that comprises of two territories and the six states. The executive power depends on governor general but the federal cabinet retains the governing power that helps in influencing the political climate.
Economic: Prior to the year 2009, the economy of Australia demonstrated an average annual GDP of 2.9 percent. Following the global crisis, the country witnessed economic downturn and maintained a growth rate of 0.8 percent (Salahuddin & Alam, 2015). Nevertheless, the exact positioning of government funds enabled the country to have better accomplishments compared to the developed nations. This led to the expansion of the Australian economy by 1.1 percent that primarily got driven by the increase in the consumption expenditure and the private investments that exceeded the expectations of the market. The country also took initiatives for the development of the consumer, food and the service segments. In such a scenario, the food service and the logistic industry presented themselves as one of the important sectors that helped in recovering from economic recession. There also lies a prospect of investment in Australia that emerged the need of recovering the economy from global repression. The economic condition of Australia thus portrays an optimistic speck for business expansion.
Environmental: The government of Australia is particular in protecting the environment through encouraging not only the private sector but also the whole population in partaking protection of immediate environment. Previously, the government was the sole proponent of the environmental friendly operations of business following the diminishing of the Great Barrier Reef. There was implementation of stricter compliance levels after excessive pollution caused due to the emission of the carbon dioxide. There was declaration on the limitation of lead contamination as it proved to be detrimental for the birds (Kagan, Thornton & Cunningham, 2017). Declaration also initiated for implementation of the Green Car Innovation Fund that revealed strict commitment towards positively eliminating the environmental hazards. The development also kept the business community under check. There was additional pressure on the chocolate manufacturing enterprises in complying with the Australian administration with a motive to sustain and strive.
In present times, the benefits of the technological innovation lie in reduction of cost, wider connectivity and higher quality of international market and supply. The present technological survey outlines the increase in the national output in the actual technological investments (Shahiduzzaman & Alam, 2014). However, the strong driver for the economic growth and innovation lies in information communication technology. They actually determine the pace for the chocolate manufacturing organization in committing to the higher budgets as they aim in reaching the online community of the consumers and the suppliers. Thus, technology lies at the core for transforming service delivery to the consumers with the additional benefits of cost reduction, customer convenience and the competitive pricing. Moreover, the modern business ambience gives importance to the time factor as the production constituent and in determining the return on the investment. Therefore, there has been a preference for the online shopping that has led to the creation of online chocolate boutiques.
Conclusion:
The report ends by throwing light on the macro environment analysis of the chocolate industry with a focus on the social, political, demographic, economic, cultural and the technological trends. The report also discusses about the competitors of Donald B in the Australian market. The report also discusses about the suppliers, the relevant publics and the marketing intermediaries of the chocolate industry and the buyer behavior. Once can however say that entering a new market represents the means of driving a business. Thus, to have its position developed amongst its competitors should not only minimize the conflict but also have procedures for supplementing a strategy. They should also implement environment friendly regulations, competition and fair pricing for guarantying a smoother ride within the Australian population.
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