Question:
Analysis of Marketing Haigh’s Chocolates.
Organizations operate in different environments that often determine their choice of marketing and strategies for success applied. Unstable conditions often lead to the need for better strategic decisions as well as better planning in marketing methods since the methods contribute proactively to improving the organization’s long-term position. Haigh’s company operates in the highly competitive confectionary industry due to the significant players that increase the level of competition. Hence, the company is expected to make strategic choices in their marketing options to ensure it meets the environmental demands as well as differentiating the company from competitors. Corporate marketing strategy should be based on customer needs, innovative products, and promotion of sustainable development. Haigh’s pride itself for producing high-quality and premium chocolates enhancing its marketing position as well as providing a competitive advantage over competitors in the industry. The research is based on understanding the marketing background of the company with the primary focus on sustainable practices, marketing strategies and a comparison of its marketing mix with competitors.
Haigh’s chocolate is an Australian chocolate maker and one of the oldest family-owned businesses specializing in premium chocolates in Adelaide South Australia. Founded in 1915 by Alfred Haigh, the company has more than 500 employees in their factory, retail stores and administration throughout Australia. The company is well known for producing high-quality products which provide the basis for marketing their products as well as increasing the customer loyalty. Marketing strategies in the organization provide the foundation for achieving their vision as well as goals. Haigh’s success is also based on the use of best and fresh ingredients since 1915 to make their chocolates. Haigh’s also have developed a unique blend of products based on artistic products (Haigh’s Chocolates, 2016). The company has 14 retail stores and a growing online presence that provide as the basis for serving more customers besides selling the company. One of the key strategies that have promoted the company to its current top position includes the delivery of the best possible products and customer services. The marketing background of the enterprise has different key aspects that can be evaluated to understand the competitive position of the organization in the industry (Haigh’s Chocolates, 2016).
Haigh business has a lot of experience in the sector owing to the years of operation since its inception. The company’s business focuses on making premium handmade chocolates which have helped in positioning itself in the market as well as attaining the target market. Unlike most of the competitors who sell imported chocolate or ingredient for producing the products, Haigh’s uses quality local ingredients providing a better product positioning. The company’s marketing background has been significantly influenced by several business practices. First, the use of fresh and quality ingredients available locally in making the chocolates serves as the basis for the success of the company in the country. It also ensures sustainable farming in areas where they source the ingredients both locally and internationally. The company then roasts the cocoa beans and blends them locally creating the high quality chocolate production. The practice ensures the company has sustainable resources that contribute to the long-term development or achievement of their goals (Gravett, 2003).
The company is also UTZ certified suggesting that it emphasizes on sustainable farming to improve the farmers through better farming methods, working conditions and providing information on the appropriate environment for agriculture. The company offers a unique blend of chocolates that helps in creating a competitive advantage owing to the local ingredients used in their production process. Haigh’s also controls the process from the beginning of acquiring the ingredients to the finished products as well as sales to the customers. The aspects promote the quality and customer focused perspective of the organization as well as improving the brands through customer feedback on new products (Doole & Lowe, 2005).
Another practice that serves as the basis for the marketing of the goods, as well as long-term success for the company, includes blending tradition quality products with new and improved technology. The strategy provides a competitive advantage as well as enhancing how the company supplies the final product to the customers. The inclusion of technology has a high impact on the product as well as marketing leading to sustainable success in the organization. For example, the practice of blending tradition and technology has fostered the development of online channels rather than the traditional retail stores leading to increased customers and revenues. However, the practice is often challenged due to the ability of the company to accommodate growth owing to the increasing volume of customer demands. Technology is critical for both production components and the marketing options since it increases the company’s ability to market their products to a higher number of customers (Costa, 2010).
Haigh’s operates in a highly competitive environment creating the need to have sustainable practices to address the problems. The company engages in environmental sustainability practices by supporting environmental causes as well as introducing its initiatives as part of the business. The company ensures a commitment to creating environmentally friendly practices in their business such as through packaging by using 100% recyclable products. The company also limits the use of plastic bags and rather encourages biodegradable bags. The environmental practices promote the sustainable development of the organization. The company also engages in conservation initiatives of different species such as giant panda among others which are also used as the product symbols of their chocolates. The environmental practices provide positive aspects to the organization as well as the environment supporting the sustainability of the organization (El-Sady, Nassar, Sultanova & Mousa, 2012).
Haigh’s is also part of the industry association and also has global partnerships with different organizations and governments aimed at improving the lives of cocoa farmers through the certification process. The practices provide a better marketing ground for the team since it’s viewed as caring to the society promoting its continued development. The practice of training farmer ensures continued production of quality products and sustainability of the organization. The company also engages in other sustainable practices such as society support through financial and product donation to groups and charities such as the Children’s charity (Harrower, 2011). The practice serves as the best way to contribute towards cultural and environmental causes. On the other hand, the company engages in sponsorships aimed at making a positive difference in the Australian society as well as marketing the organization (Gleim, 2011).
Other practices include employing qualified and creative people that ensure they are focused on the right task. The team emphasizes on making products that meet the demand of the customers through innovative skills and technology. The company employees are committed to delivering products that expand beyond the storefronts as well as selling online to increase demand. The transition to the cloud is a practice that has enabled the organization to free some of the resources used before and focus on the core competency of production and sale of chocolates. The methods have allowed the team to deliver products based on the customer needs and preferences enhancing the overall growth of the organization (Lim, Acito & Rusetski, 2006).
Products
Haigh’s mainly deals with chocolate production and is a well-known brand in Australia. The company has a product portfolio of different and unique brands of chocolate which are high-quality driving sales and competitive position in Australia. The company uses artisan skills which are combined with chocolate making technologies to create award winning products. They have differentiated products that include chocolate bars, blocks, and chocolate confectionary. Other products by the company include boxed chocolates, centenary collection, and loose chocolates among others. The company combines technology and creativity to develop high techniques applied in producing high-quality products. Hence, the company products remain attractive to different customers due to the quality and fresh taste of the chocolates and product choice of more than 250 varieties. According to research, Haigh’s have a team that provides innovative and creative recipes each year as well as enhancing the old favorites to offer customers worth a diverse selection of chocolates (Kizil, Eddy, Clary & Crowell, 2013). The provision of different varieties and quality improves the competitive position of the company as well as increasing its customer base. In all the products provided, the company maintains the quality thus providing a marketing aspect of the products as well as enhancing the ability to retain customers (Kharabsheh, Jarrar & Simenonva, 2014).
Suppliers
Haigh’s supplies chocolate products in all its retail stores as well as online sites to its clients. The company applies the vertically integrated model of the supply chain where their products manufacture and sale are made on the raw materials available. The company has a small percentage of its products supplied through wholesalers operating in different niche locations. The method promotes the overall business sales as well as enhancing the store network. However, the company uses the retail outlets like the major supply method of their products to the customers as the company has 14 retail stores. Since Australia lacks an established cocoa beans industry, the company has suppliers of cocoa beans in different parts of the globe such as African, Ecuador, and New Guinea among other areas. The suppliers source the highest quality to ensure the company maintains its quality aspect of the chocolates produced. Haigh’s sources their raw products from local farmers in collaboration with local agents. Besides, they provide support to the cocoa-growing industry through engaging the farmers in education programs to improve the lives as well as the quality of the produce. On the other hand, Haigh’s have partnered with CHEP to ensure the ingredients arrive on time and in good condition. CHEP enhances the distribution channel of the company, proper management such as pallet management as well as providing the products are available to the customers promptly. CHEP also helps the company in dealing with the suppliers as well as reducing discrepancies (Bailey, 2015).
Customers
Haigh’s chocolates serve diverse customers and have a larger market share in Australia. The products entice a range of clients from the young and the old giving the company more control over their product offerings. On the other hand, the company has a focus on the higher class members of the society through its premium products. They develop selected products for the high-end market-enhancing the ability of the company to meet the market needs. With the growing chocolate consumption in both Australia and the world, Haigh’s has significant opportunities that can support the sustained development (Fulwood, 2014).
Pricing Strategy
Marketing plays a significant role in the success of any organization; however, the leaders must have the ability to develop appropriate strategies that meet the organization’s demands. Some of the marketing strategies applied by Haigh’s includes pricing strategies, promotion, and distribution. For example, the company serves diverse customers suggesting that they have a different pricing strategy. Haigh’s have a pricing strategy that is based on the target customers such as the premium products that attract higher prices for the wealthy clients. On the other hand, the company applies a pricing method that is influenced by the supply and demand aspect of their products (Duffy, 2012).
Promotional Methods
On the other hand, Haigh’s chocolates use different promotional methods to market their products. The company ensures continued engagement with the customers in various ways such as online presence which serves as the primary marketing and selling tool. Besides the retail stores, the company has a rich online presence that allows the customers to shop online. The method not only helps to increase sales but also promotes the company to more clients and enhances efficiency in their distribution methods. The company also uses social media to promote its products as well as engage with the customers regarding product development or packaging options. Social media helps the company to reduce marketing costs and reach a higher number of people within a short time. The method is useful in some of its target markets such as the young people. The company also uses advertisements in the print media to develop new ideas. Other promotional methods used by the company include their packaging options as well as distribution through the retail stores rather than the supermarkets (Park, 2004).
Distribution
Haigh’s prefers the use of retail stores as their core distribution option of the products to the customers rather than using wholesalers with an exception in some areas. The method is useful in serving the customers directly as well as getting the customers views on their products. The retail stores serve as the selling points of their products ensuring the company has control of the entire process from production to the sale of the finished products to the customers. The distribution strategy provides a chance to engage with the customers as well as enhancing the efficiency of the organization (Trez & Fernando, 2012).
The company has been facing the right type of competition when it comes to its products. The direct competitors are those such as the Cadbury and Nestle. They produce the same product only that they are from the different companies. The target group is the same hence bringing in the direct form of competition. The indirect competition cannot be applied in this situation because there is no other product that can replace chocolates. What the other companies do to bring competition is producing different flavors of the product (Evans, 2014). However, Haigh’s is viewed as a strong company with the ability to beat competition due to its strong areas (see Appendix 1: SWOT analysis). The company uses the four types of the marketing mix. These are the product, price, place, and promotion that provide a competitive position. The product they produce is a single flavor that enables them to focus on the quality. The less competition and pressure from the other companies tend to influence them to produce high-quality goods. The pricing is one that can be affordable to the people so that they could maintain their market and their customers. This ensures it is not high that the customers tend to opt for the other cheaper products from the other companies. The place is strategic where the product reaches the local market and also the tourists who come to visit the country. This is a marketing mix strategy to maintain its consumers. The promotion mix is highly utilized where they ensure that they use the required means of advertising for the product such as online and print media advertising (Truran, 2001).
For the company to work efficiently and produce the products that are more preferred, they have to come up with more sustainable means of producing the product. The first means is for them to ensure that they provided a variety of the product. This is because having a single type is a risk in case of the collapse of the brand. They should have a variety from which they can gain the products from. The other sustainable aspect is for them to ensure that they make the packaging more appealing and keep changing the branding, this enables the customers not to forget the availability of the product and also with the changing packaging; the customers are attracted more to the product in general (Thompson, Macdonald & Friemann, 2014).
Conclusions
The case of Haigh’s chocolates demonstrates the impact of marketing strategies in the overall success of the organization. The company’s continued progress has been enhanced by a variety of factors that include the pricing, promotion and distribution aspects that determines their marketing mix. As a family owned enterprise the leadership has also played a significant role in the success of the organization. Despite the major success and large market share held by the company; there is need to evaluate other opportunity for sustainable growth. The company should adopt a more sustainable aspect, and the best would be increasing the variety of the flavors of the chocolate. With the increased varieties, the company would do better and reduce its chances of closure if one of the brands sales reduces.
References
Haigh’s Chocolates, 2016. “Haigh’s Chocolate Customer Case Study.” Haigh’s Chocolates
Doole, I., & Lowe, R. 2005. Strategic marketing decisions in global markets. London [u.a.],
Gleim, M.R. 2011, From green to gold: Three essays on corporate social responsibility as a marketing strategy, The Florida State University.
Lim, L.K.S., Acito, F. & Rusetski, A. 2006, “Development of archetypes of international marketing strategy”, Journal of International Business Studies, vol. 37, no. 4, pp. 499- 524.
Gravett, A. 2003, Sweet success and digital delights: Assessing the impact of Internet commerce upon the United States consumer market for Canadian produced, premium chocolate confections, Capella University.
Kizil, C., Eddy, V., Clary, L. & Crowell, K. 2013, “Hershey’s Entry to the Australian Market with a New Brand: An Accounting and Marketing Perspective”, Emerging Markets Journal, vol. 3, no. 2, pp. 97.
Costa, M. 2010, “Experiential Marketing: One-off events reach out to an online audience”, Marketing Week, , pp. 20-21.
El-Sady, H., Nassar, M., Sultanova, V. & Mousa, D. 2012, “The Impact Of Organizational Objectives On The Selection Of Defensive Marketing Strategies: Empirical Evidence From A Small Open Economy”, Journal of Applied Business Research, vol. 28, no. 6, pp. 1345-1356.
Harrower, N.L. 2011, The Effects of Organizational Culture on Marketing Programs: A Grounded Theory Study, University of St. Thomas (Minnesota).
Kharabsheh, R., Jarrar, K. & Simenonva, B. 2014, “The Impact of Competitive Strategies on Responsive Market Orientation,Proactive Market Orientation, Learning Orientation and Organizational Performance”, Academic Conferences International Limited, Kidmore End, 09, pp. 547.
Park, J.E. 2004, The impact of marketing outsourcing on the market-based organizational learning process, The University of Alabama.
Truran, W.R. 2001, How organizational learning influences organizational success, Stevens Institute of Technology.
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