This assignment regarding the aspect to develop organizational marketing objectives has broadly described about the mission, purpose, vision and values of Cocoa Delights. The strategic directions as well as organizational targets of the company will be getting identified. Moreover, a situational analysis needs to be prepared that will include a PEST analysis of Cocoa Delights. The legal as well as ethical requirements of the company will also get identified for addressing sustainability issues and the influence of the organizational strategic direction regarding current marketing activities needs to be described. The current key products or services as well as significant markets in respect of strengths, weaknesses, opportunities and threats will get evaluated as well. Also, the organizational costs as well as benefits will get analysed, a completed PEST analysis as well as Risk analysis will be made as well. The marketing objectives of the company relating to factors such as compatibility, consistent, equipped and legal needs to be addressed along with the key performance indicators as well as risk management strategy.
Cocoa Delight is considered to be one of the youngest chocolate manufacturers in the industry. The company came into operation in 2000. The company is valuing the creative as well as innovative aspect of the youth staffs. From prestigious confectionary schools, a team of master chocolatiers has been chosen. The company is processing more than ten kinds of best quality cocoa from various countries as well as producing a vast range of dark chocolates customised to particular dietary needs.
The company’s vision is to become a globally renowned organization within Australia that will produce a huge range of quality chocolates for meeting the standards that is required for meeting the satisfaction standards in the national market.
In the meeting with the CEO, various aspects were discussed. After reviewing the SWOT Analysis of the company, it was ascertained that there is still an untapped market whose demand has not been actualized that is in relation to the specific dietary requirements of customers. Therefore, the company is having a good opportunity of having a steady market growth there. It was also discussed with the CEO about the various promotional opportunities that can be actualized with the help of social networking sites such as Facebook. When the Facebook page of Cocoa Delights will receive increasing number of likes and shares, they will undoubtedly start increasing their customer base. This will occur through the continuous brand recall that will be taking place regarding the customers. After developing the new market base for tapping more number of customers, the next most significant aspect will be to focus on customer retention. This could be done by sincerely addressing the various feedbacks of the customers and also creating loyalty programs for the dedicated customers. The satisfied customers will therefore, assist in bringing more referrals. The CEO was also made aware of the fact that there is a growing awareness for health related products within Australia and therefore, it will be good opportunity to attract increasing number of customers by mentioning the facts and information regarding dark chocolates. Finally, in regard to the market opportunity it was also stated that there is the requirement for increasing the budget relating to the market since by making a good investment in the untapped market, and focusing on all the aforementioned aspects there is strong possibility for the company to get a good return on investment.
In the discussion, the CEO was also made aware of the threats that are being faced by the company. The global brands are having huge budget for investing in the market and therefore, Cocoa Delights is being faced with steep competition. Moreover, as certain areas of the market is considerably down, it might incur huge losses for the company if corrective measures are not being taken.
Cocoa Delights’ situational analysis will comprise of two segments,
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Strength |
Weaknesses |
|
§ Having innovation as well as creativity § Being sustainable § Having customer oriented management § Possessing a range of European quality chocolate § Having a vast range of dark chocolates § Dark chocolates possessing health benefits § Meeting particular requirements regarding dietary products § Having easy accessibility of customers § Having reduced price range (Brennan 2014) |
§ Having the absence regarding brand awareness § Less awareness of consumers regarding the health benefits of dark chocolates § Having the absence of online presence § Having reduced male as well as child consumer base § Less coverage of regional as well as country side areas § Reduced budget relating to the market § Reduced outlets in comparison to the competitors (Cummings 2014) |
|
Opportunities |
Threats |
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§ The demand of market that still has not been met relating to particular dietary needs § The scope of using social media such as Facebook that will assist in increasing the base of customers § Developing increasing number of dedicated consumers as well as referrals § Having the scope of promoting Australian based facts and information regarding dark chocolates § Having the scope of increasing the budget relating to the market (Welch 2014) |
§ The international brands having enormous budget relating to the market § Advertisement campaigns that are considered being narrow § The market is considerably down (Rothaermel 2015) |
(Source: Created by Author)
|
Political |
Economical |
|
§ The government is at present passing legislation that will be requiring the business towards monitoring as well as reducing the waste as well as using energy. § The planning of significant penalties in respect of businesses are levied that are not complying with the new directives |
§ There has occurred the reduction of disposable income because of the growing rate of interest. § This deficiency will be anticipated in making recovery in the long period for outstripping the rate of inflation by 2% § The levels of unemployment is experiencing steady growth and having an expectation towards climbing in a steady manner to 6% in the next year |
|
Social |
Technology |
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§ Cocoa Delight will be trying to do the capitalization relating to the customer’s social trends to be increasingly aware through the promotion of the Dark chocolate’s benefits regarding health § Cocoa Delights is offering the widest range of various types of dark chocolates. (Hardy 2014) |
§ There has occurred the delaying of the development of technology in regard to the rollout of broadband throughout Australia § The rollout is however occurring in a continuous manner and its completion will occur in the coming three years § Since, there is occurring the expansion of the options regarding internet retailing, majority of retailers are taking advantage regarding the new technological aspects. (Christopher 2014) |
(Source: Created by Author)
Changing the focus from the local suppliers to the national suppliers – There is the requirement to do the shifting of the focus from the local suppliers to the national suppliers as because, the market is steadily expanding and to develop its market share the company is required increasing the number of national suppliers. This will moreover, assist the company in having a good market presence and share a good rapport with the national suppliers which will have a positive influence on the strategic direction of the company.
To select the media having national reach – Towards changing the current marketing activities, there is the requirement for selecting the media that will have a national reach as because, this will assist in establishing the company’s brand presence all over the country. The customers will be able to know more about the brand and the company will be able to expand its market that will assist the company in influencing the organizational strategic direction. (Cummings 2014)
The growth of the stores as well as rate of growth relating to sales are actualized
There occurs the actualization of gross profit margins which is 45% in comparison to set goal of 63%
There occurs the aspect of performing PR marketing much more effectively than it has been expected
The brand Cocoa Delight will be getting recognized by 58% individuals within the target market. (Scholes 2014)
Cocoa Delights is a Melbourne based chocolate company that specializes in dark chocolates. It boasts of products which are of a mid-ranged price and not very expensive. The company has a chain of 15 gourmet chocolate stores in Melbourne. The given company in this assessment, Cocoa Delights, in order to achieve the mission and vision and the objective set by the chairman of the company, needs to follow two strategies: franchising and a joint venture with a leading chocolate brand of Australia, Haigh’s Chocolate.
Cost benefit analysis is the procedure through which the decisions of the business or organization is analysed. The advantages from any given circumstances are calculated and then the costs that are associated with achieving the advantages are analysed. In analysing the cost and benefits, firstly the list should be prepared for all the benefits and cost including the direct cost and indirect cost (Sinden 2016). The cost-benefit analysis of a company or a business helps to understand and analyze the decisions that are taken by the management of a company. The benefits of a particular situation or any action that is business related are summed up followed by the analysis of the costs that are associated with the action or the change. The process of enumerating the benefits and costs of a decision, a project or a program for a company is known as cost and benefit analysis (Nas 2016).
Through the financing options, Cocoa delights will be able to achieve faster growth with opening of 100 stores as per the target within 3 years
Reduce the amount to be spend for interest on capital as the franchisers will contribute their own capital
It will assist in providing solution regarding the shortage of unemployment issues as the franchisers will provide themselves will provide ready solutions to the shortages of store manager (Mishan 2015).
Owing to the easy acceptance and marketing of franchisees in Melbourne, it will be easier for Cocoa delight to set-up their business.
Expansion will be take place in Sydney and other cities once it start earning profit in Sydney (Leigh and Triggs 2016).
As the government is under process of passing new legislation for monitoring and reducing the usage of energy and wastes, it will increase legal issues for cocoa delights as every store needs separate agreement on legal aspects
Though the franchisees will work as store manager, without proper financial reward the store managers do not get any inspiration for working long hours.
Conflicts among the local-minded business owners and the national brand
Laws imposed by the government protect the franchisees, which in turn required the organizations to comply with the strict laws (Christiansen 2014).
Easy to operate in the existing cities as they already have required contacts, compliance with state government issues and compliance with the council for providing services
Advertising cost will be lower as they already have the media access for Haigh’s chocolate.
Haigh’s chocolates will assist in creating brand awareness with access to media buys that involved low cost (Huang and Sarigöllü 2014).
Advertising media will be used through billboard and PR articles
Joint promotion all over the industry will assist cocoa delights to achieve their goal faster and access market share in other cities (Adler 2012).
Carry on operations at the middle level with few stores per city will take 5-7 years of time for meeting the target of opening 100 stores
Will operates in the same industry in various market segments, therefore, has less chance of expanding their business
Conflict of interest may arise for the benefits of cocoa delights versus Haigh, such as what is good for Haigh may not be good for Cocoa delights
Association with the product that are produced on a mass level like Haigh’s chocolate can adversely affect the reputation of cocoa delight.
It can be concluded from the above analysis of both the franchise as well as joint venture option, the franchisee option is better as it has better prospect for future business (Boadway 2016).
Cocoa Delights is a chocolate company based in Melbourne. The chairman of the company came up with a set of mission and vision and objective to achieve a new set of goals. In order to realize the goals and objectives of the company, a PEST analysis of the organization is extremely crucial (McNeil, Frey and Embrechts 2015).
A PEST analysis helps the management of the company to objectively analyze the situation and scenarios of the world and the impact that it creates on the organization. The tool helps the management to spot further business opportunities and warns the company of a potential threat.
Political: The political scenario of a country is extremely important to analyze and interpret the scope and opportunities of a given company. In this case, the political situation of the country is directly related to the growth and development opportunities of the company. Since the company is based in Melbourne, Australia, the political situation of the country is important to analyze. The Australian government recently is in the process of passing a legislation that requires the businesses to reduce the waste production and their use of energy. A certain amount of penalties are planned for any company that do not comply with the new legislation.
Economic: In the Australian territory, consumers have a reduced capacity of disposable income recently owing to the new economic downturn in the country. The rising interest rates in the country have acted as a catalyst to reducing the disposable income of the consumers in Australia. The unemployment levels in Australia are on the rising side. It is slowly increasing and thus does not present a promising picture. According to the official figures, the unemployment rate is going to climb up to 6% in the coming years.
Social: The social trend that the company, Cocoa Delights can capitalize on is the rising trend of health benefit awareness of dark chocolates, the product sold by Cocoa Delights. The consumers nowadays are more health conscious. The company can gain more popularity and profit by promoting the health benefits of dark chocolate to the consumers.
Technological: The technological development that is about to spread in Australia is the rollout of broadband across the country. Although the process has been delayed, the process is at an on-going stage and will be completed in the next three years. With the expansion of the internet all across the country, most retailers are taking the advantage of this phenomenon and trying to gain the maximum amount of profit and revenue from it (Dada and Watson 2013).
Risk management of an organization is important to analyze the operations of a particular company and to modify the operations as required by the demands of the situation in which the company stands. Therefore, it can also be said that risk management is essential to the Cocoa Delight stores and its operations (Lin, Lin and Ryan 2014).
The major risk that the company faces is the lack of an equivalent financial reward that can affect the process of running the new stores.
Another risk that the company faces is that in case of collaboration, Haigh’s chocolate might not use any advertising for their store.
The third risk that the company faces is the political risk of the new legislation that has been passed in the country. The likelihood of this risk is medium.
The fourth risk that the company faces is that the products of Cocoa Delight might have a negative impact on the consumers that might negatively impact on the popularity of the product as well as the company.
Cocoa Delights, the Australian chocolate company have a lot of options in front of it to attain its goals and objectives that was set by the chairperson of the company. The company has an opportunity to expand its operations in its home country as well as around the world. The methods and ways that are suggested in the case study for achieving the desired goals actually fit the strategy very well. Using the option to create franchisee outlets, the company can get many more opportunities than the existing ones. Each store of the franchisee of the company can operate on separate legal agreements which can make it independent and thus can help in the smooth operation of the stores.
In this world, every company faces some serious impact because of the decisions taken by the administrative or the management heads. In this case too the decisions that can be taken by the management of the company that includes a joint venture with Haigh’s Chocolate and the decision of franchising, can have a positive as well as a negative impact. The impact of the decisions taken by the management of the company will help the organization to achieve the goals and objectives. The joint venture with Haigh’s chocolate will help Cocoa Delight to operate different segments of markets within the same industries (Minifie 2012).
The marketing objectives that need to be presented to the CEO is required having four aspects that are based on being compatible, consistent, equipped as well as legal. Let us discuss all these objectives in detail,
The aspect of strategic direction is referring to the actions that have been undertaken by the company for achieving the objectives regarding the strategy of the organization. Cocoa Delights is using a vision statement as well as mission statement for defining where the organization wants to be and this statement is the means for Cocoa Delights in setting the direction towards which the organization wants to go as well as defining what it wants to be in the future. The purposes regarding the company is associated with being daring as well as unconventional, being creative as well as innovative that are always considered being the organizational strength as well as cornerstone regarding success. (Spieth 2014) Regarding the stakeholders, the company adheres to the professional as well as moral standards of conduct in everything that they are doing and concerning the staffs, the company is encouraging the team that can be self-directed and in this regard, it can be stated that the objectives will be having compatibility with the organizational purpose of Cocoa Delights.
The objectives will be having consistency with the current as well as future needs of the business through the aspect of increasing the market share, productivity, innovation as well as action planning. For growing the share of the market, Cocoa Delights requires increasing the company’s competitive market share. In this respect, the marketing plan will be designed that will be addressing the objectives by explaining the product or service offerings, doing research of the target markets, evaluating the competition and then placing, pricing as well as promoting in a strategic manner what is being offered by the company. There is also the requirement towards explaining particular action steps for taking the company towards their goals as well as identifying the objectives of the business. (Fuller 2016) The aspect of action planning will identify the top organizational objective and then doing the development of the SMART goals that are considered to be specific, measurable, achievable, realistic as well as timely.
The objectives will be compatible with the organizational projections by strengthening the physical resources regarding Cocoa Delights that will be including the plant, machinery as well as other equipments integral to the production of a product. The objective associated with the growth in physical resources will be dealing with the aspect of using equipment or machinery for better production of products. (Spieth 2014) The strengthening of the financial resources is associated with the organizational growth objectives of the company that is associated with the availability of capital resources for investing in future business expansion.
The organizational objectives of Cocoa Delights are certainly being able to meet the legal as well as ethical requirement that affects the business. The relevant legislations that affects the business operation of Cocoa Delights are as follows,
Competition Laws – Australia is having a national statutory framework for ensuring that there will occur fair trading in respect of businesses as well as customers. The Australian Competition and Consumer Commission will be regulating the administration and enforcement of this framework. Moreover, the Australian Government legislation, state and territory laws will be governing the aspect of consumer protection. A fair trading office in each state or territory will be providing advices concerning the rights as well as obligations relating to business. (Fuller 2016)
Consumer Laws – The Australian Consumer Law (ACL) is providing regulations regarding unfair contract terms, consumer rights guarantees, product safety laws, unsolicited consumer agreements, lay-by agreements and penalties.
Product Liability Regulation – Australia is having a national statutory framework for regulating product safety as well as information standards. This standard is designed for ensuring that the marketing of unsafe products are not taking place within Australia. The Australian Competition and Consumer Commission (ACCC) do the enforcement of these standards. There is also the involvement of the State and territory government fair trading offices regarding the enforcement of product safety rules. The primary role of state and territory offices is assisting the customers. (Wirtz 2016)
Environmental Legislation – The Australian Government, state and territory governments as well as local governments are jointly undertaking the administration of the environmental protection. The process of evaluation and approval is governed by the Australian Government legislation concerning the national environment and cultural aspects. Moreover, there occurs the application of State and territory environmental protection towards particular activities of businesses.
Privacy Laws – Australia is having national privacy legislation, administered by the Office of the Australian Information Commissioner (OAIC) that is regulating in which way businesses will be collecting, accessing as well as storing personal information as well as communication. There are particular needs regarding the management of sensitive information like the medical records. The legislation will get applied to various activities as well as sectors. (Fuller 2016)
In this case, the chocolate company, Cocoa Delights, can go into a partnership with Haigh’s Chocolate in order to get sufficient exposure in the Australian market. The partnership that Cocoa Delights can enter into with the much popular Haigh’s chocolate can prove to be a beneficial step for the company, Cocoa Delights.
The CEO has informed that the board of directors has considered the analyses of expansion opportunities like joint venture and franchising. In order to achieve the desired goal for Cocoa Delights, the solution that the CEO accepted was franchising and joint venture. In the franchising option, the collaboration with the popular Haigh’s Chocolate will give the company the required boost as it is collaborating with an already established brand. In order to fully understand the benefits, advantages and the disadvantages and drawbacks of implementing the above stated strategies, a thorough analysis is required (Marjanova, Temjanovski and Jovanovska 2016).
Cocoa Delights, as a company has many scopes, drawbacks, threats and strengths. It can be seen that the company has an innovative and creative streak. It has sustainable and has a customer-oriented management. It boasts of a range of European quality chocolate that can appeal to the consumers who want quality products. It has a vast range of dark chocolates that boasts of supreme health benefits to the consumers. The company meets all the particular requirements of maintaining the hygiene of the dietary products. The company, however, has a lot of weaknesses, the most significant of which is the lesser awareness of the consumers about the brand. The company has no online presence, which is detrimental to the company in this day and age of digitization. It has a lesser coverage in the countryside areas which means it only serves in the urban areas. One of the main weaknesses for this company is that it has reduced number of outlets in comparison with other competitors. This can be overcome with the collaboration of Cocoa Delights with Haigh’s Chocolates. There are lots of scopes or opportunities for the company, Cocoa Delights. The company can explore a wide consumer base by creating an online presence. The company can develop an increasing number of consumer base. The company has a scope of increasing the budget relating to the marketing of the product.
However, the company faces many threats from the market in which it operates in. There are many international present in the scenario who have a budget that is a lot higher than the one of Cocoa Delights. The market for Cocoa Delights at present is considerably down which can be improved by collaborating with Haigh’s Chocolate (Goetsch and Davis 2014).
The Australian government is passing legislations that aim at reducing as well as monitoring the waste and the energy that is being used by the company. The government plans to charge heavy penalties in case any of the new directives are not complied with by organization. Cocoa Delights have to comply with all the new rules and regulations that are set by the Australian government (Abs.gov.au, 2017). Since the Australian consumers are reeling under the pressure of the economic slowdown, the disposable income of the consumers are low which means that the consumers have a limited capability to spend. The company should therefore bring down the price range of the products if it wants to attain higher profitability and growth. Australia, as a country, is facing higher levels of unemployment, which means that people have an even lower and lesser capability to spend (Australian Competition and Consumer Commission 2017). This means that the company, Cocoa Delights has to keep a price range that can be affordable by the majority of the population if it wants to gain popularity. The company can capitalize on relating to the social trends of the consumers. The company can make the use of the health benefits of dark chocolate, which can be appealing to many consumers. The company should look into the technological areas in which it can advance. The trend of digitization makes an online presence extremely necessary for the companies all around the world. Cocoa Delights too should invest more time and effort to create a strong online presence which can attract more customers and thus lead to an increase in their profitability and popularity in the market (Hoonsopon and Ruenrom 2012).
Cocoa Delights is an Australian chocolate brand that can gain recognition by collaborating with an existing Australian brand of chocolate, Haigh’s chocolate. There are many long term benefits for the company if it adopts the two tactics as mentioned above – franchising and joint venture. The long term objectives are:
It will create a brand awareness amongst the consumers. This is an objective that has to be achieved in each and every new market that the company is operating in. Creating brand awareness is very important in the day and world of today as brand awareness leads to the consumers knowing about the product which can result in higher sales, growth and profit for the company (Ahmadi et al. 2012).
It can use the benefit of the TV advertising campaign that is already present in the existing brand, that is, Haigh’s Chocolate. Haigh’s Chocolate already invested in the advertising campaign in the television medium. Therefore, through the technique of joint venture, Cocoa Delights can gain a lot of exposure through the TV advertisement campaign which will bring in a lot of exposure for Cocoa Delights. Adequate exposure translates to the consumers knowing and being aware about the product. Consumer knowledge translates into brand awareness which further means higher sale and profit for the company (Claver- Cortés, Pertusa-Ortega and Molina-Azorín 2012).
The venturing out into new markets will cost $1.1 million in every new market. This can be funded by using the money that can be set aside in provisions. The fund needs to be kept separately as venturing out into a new market as venturing out into an unknown market can bring in along a lot of new risks added with new extra costs which has to be addressed immediately. Therefore, to deal with the unwanted risks that come along with the new venturing in new markets, additional finds need to be allotted and kept aside to deal with any case of emergencies (Hrebiniak 2013).
The company and the brand needs to comply with competition and consumer Act of the year 2010. In order to ensure and maintain a smooth operation, the brand needs to follow the rules and restriction set by the Consumer Act of 2010.
The market share of Cocoa Delights gourmet chocolate needs to be increased by 18% in each and every capital city of Australia. This can be achieved through various methods as listed below.
The company needs to comply with the vision of dominance in the market
It has to develop a marketing plan. A marketing plan is essential for each and every product in this competitive world. In this competitive world, a marketing plan is essential for letting the consumers know about the brand or the company that is new to the market. The product or the brand needs to attract the attention of the consumers or the potential buyers. This step is absolutely necessary for the company to perform well in the world market (Armstrong et al. 2014).
The resources that are collected from Holt & Burrows can be used for the marketing plan and the 5 % turnover that is allocated to finance the budget that is required to achieve the target needs to be utilised to its fullest potential.
The company needs to comply with the rules that are set by the ACCC (Australian Competition and Consumer Commission) for the market dominant player. In order to achieve this stage, it is absolutely mandatory to attain the break-even target of amount $3 million.
Working according to this plan can help the company to delve into the established marketing channels, which can prove to be beneficial for the company in the longer run.
The key performance indicators of this company are:
The company should observe the expansion rate of the company. The roll-out of 100 stores is expected to take around 5 to 7 years to be completed. Thus, this is an area, which can be monitored for the key performance area.
The company should monitor the different market segments in which it is operating after the said amount of time (Parmenter 2015).
The access of the customers to different products of the brand should also be monitored. This is important to monitor as it reflects the penetration of the product in the market (Sedee 2016).
Another important aspect that needs to be monitored by the company is that reach that the company is achieving with the help of the television advertisement that is achieved with the help of the joint venture with Haigh’s Chocolate (Haighschocolates.com.au, 2017).
The launch and penetration of the product in the established market of the capital cities of Australia can be monitored to see the success and the popularity of the stores in different region of Australia.
Conclusion
It needs to be inferred here that because of the business potentiality as well as strong competitive position, high product quality as well as eco-friendly appeal, it is strongly recommended towards focusing on the improvement of the efforts related with marketing. There is the requirement for improving the media penetration particularly to other major cities like Brisbane, Perth as well as Adelaide for increasing the national market penetration. The marketing as well as business plan can be made increasingly aggressive to do the establishment of Cocoa Delights’ position as “the most famous and prestigious manufacturer of gourmet chocolate” in Australia. Also, making the customers aware of the fact that Cocoa Delights is the one chocolate company within the country selling products that have variety of components, health and dietary alternatives, as well as made and owned in Australia.
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As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download