Discuss about the Unique Characteristics and Implications.
A marketing plan is a comprehensive blueprint which outlines the business advertising efforts and marketing activities for the coming year. Marketing plan explains the business activities which are involved in accomplishing the marketing objectives within a specific set of time (Solomon et al., 2014). Marketing has drastically evolved in the 21st century and the designing of the marketing plan is integral for the business. Donald B is a chocolate maker and he has two stores in Melbourne. This study devises the marketing strategy for Donald B as Donald B wants to grow his brand internationally and nationally. After conducting the marketing environmental analysis; a marketing strategy is devised recommending the target market for Donald B. Value proposition of Donald B’s chocolate outlet is given along with a description of the marketing mix variables.
Marketing segmentation is the marketing strategy that involves in dividing the customers into different subsets (Alt & Iversen, 2017).
Geographic segmentation of Donald B’s chocolate outlets can be done based on the rural, urban and semi-urban. Therefore, the geographic segmentation of Donald B can be urban and semi-urban people who live near the Donald B outlets. Two stores of Donald B are located at Melbourne and the organisation can segregate the customers based on urban and semi-urban.
Behavioural segmentation of Donald B’s outlets can be done based on the eating habits of the customers. Donald B can segregate the customers who like to eat chocolate then and there and the customers who like to gift the chocolate to someone. Customers would like to visit the chocolate outlets to have the nice chocolate along with spending time with dear ones. The management will perceive the interests, common needs, priorities and subsets of consumers.
Psychographic segmentation of the customers can be done on the basis of the chocolate size; small blocks, large blocks and bars. The customers’ personality, lifestyles, attitudes and class are the factors associated with the purchasing of chocolate.
Demographic segmentation of the customers of Donald B can be based on age and income factors of the customers. Mainly the young generation will be targeted and upper-income class will be segregated as these people can afford the chocolate visiting the chocolate café and outlets.
Logically analysing, Donald B can deduce that the outlets can target the children and teenagers aged between 4 and 16. However, Donald B will also target the young generation. Mainly demographic segmentation based on the age group and higher income group. Donald B will try to make the perspective target group into mainly young aged people who like to have the chocolate at outlets. Donald B’s chocolate consumers are generally slightly higher income.
Donald B’s chocolate outlet can target the infinite target group based on geographic locations. Therefore, Donald B’s secondary target market will be based on the geographic area from where the outlets are located. In a geographic location, all age group will be targeted.
Positioning concept outlines what the organisation must do to market its product to the customers. Positioning statement of the organisation puts the efforts to differentiate the brand from the competitors (Walker, Hanson & Enjeti, 2015). In addition, effective positioning is determined by communication and perception of the intended message. The purpose of the positioning strategy is to allow the company to spotlight specific areas where the competitors can outshine the firm. As stated by Osterwalder et al., (2014), positioning has a moral implication as the organisation is being located as trusted. Market positioning is an organised attempt for the brand to set itself away from the crowd and it influences the way their target audiences perceive them.
Management of chocolate manufacturing in Donald B’s stores positions itself through creating an image for the product based on its intended audience. Image of the organisation can be created through using promotion, place and pricing strategy. Donald B’s positioning statement will be ‘delivering happiness in the form of chocolate for life’s upbeat occasions.’ Donald B’s chocolate will provide the best accompany in festivity and happy events of the people. Donald B can position itself as a luxurious chocolate brand along with comfortable chocolate outlet. Donald B promises of high quality and fine tasting chocolate. Donald B can also wrap the chocolate with a gold coloured wrapper which will be a symbol of wealth and luxury. Therefore, the packaging of the chocolate will have a ‘high-class’ appeal.
Donald B has two stores in Melbourne and it wants to expand the business at national and international level. Donald B needs to expand the products offered. Donald B is dedicated to making the amazing bean to bar chocolate; reflective of its origin. Donald B wants to provide a depth of flavour that is intense and rich; however incredibly satisfying. Donald B can source the finest cacao beans around the world and he uses the traditional artisan method to make the chocolate. Donald B offers chocolate bars, drinking chocolate, boxed chocolate, chocolate beans, milk chocolate and dark chocolate. Donald B offers the chocolate products in two forms; Donald B will sell the products on the open market through retail and Donald B can sell the chocolate based products through their own stores or outlets.
Donald B can take product line stretching as Donald B must expand the product line of chocolate. The organisations need to launch the new chocolate products beyond the current range with some additional features for product line stretching (Huang & Sarigollu, 2014). Donald B chocolate outlet may stretch upmarket for the higher margins or growth. Donald B can come up with luxurious chocolate products which will target the higher income group. Product stretching strategy will help Donald B to come up with different types of chocolate in both Donald B stores and in retails.
Consumers of chocolate choose products based on the perceived values (Wei, Samiee & Lee, 2014). In addition, satisfaction is the benchmark to which actual use of the products may match perceived value at the time of purchase. Core benefit is the fundamental want which consumers satisfy by taking the products. Therefore; Donald B can offer the best chocolate which has the finest taste. Core benefit is the best taste of the chocolate and different types of chocolate based products. The generic product is the version of the product which contains those attributes absolutely necessary for the function (Spanos et al., 2016). Donald B can start with low-end chocolate at a lower price which will use the brand of Donald B; however, the price of the products will be lower. The expected product is the set of characteristics which buyers normally expect when they purchase the products. Donald B will produce the best chocolate using the highest quality machinery to deliver the chocolate with the finest quality and best taste. Donald B owns stores will provide accurate chocolate-based products to the customers meeting the expectation of the customers. Augmented product is the inclusion of the additional features, attributes and benefits of related services which serve to differentiate the products from the competitors in the existing industry. Donald B can take this level in order to make product differentiation. Donald B can ask the manufacturers to produce innovative chocolate products to contain the cocoa nibs mixed with coconut water. Donald B can also come up with the soft-textured confectionary. The potential product includes all the augmentations and transformations of the products and it ensures the customer loyalty. Donald B wants to surprise the customers with the best quality chocolate by continuing to augment the products which will not harm the health.
Donald B is going to offer traditional chocolate based products in the stores and in open retail stores. Donald B will be positioning itself as premium quality and luxurious chocolate brand. Donald B will sell liquid drinking chocolate and dark chocolate which will be of best quality. Donald B can take the price skimming strategy as it will be helpful to create a market buzz for the newly launched products. Donald B is thinking of to launch soft-textured confectionary and tiger nuts along with cocoa nibs. These products are new in Australia; therefore; Donald B can take the price skimming to increase the brand image of the organisation. As stated by Nagle & Muller (2017), price skimming is associated with setting up high price of the products at the initial stage before other competitors come into the market. Price skimming strategy will not last long as competitors may launch rival products which will put pressure on the price. Donald B will set the price of chocolate based products higher than the normal at the initial time and Donald B will lower the price with the time. Donald B wants to take the advantage of the demand for newly launched innovative chocolate products Donald B will get the advantage of high-profit-margin and Donald B will get the chance of cost recovery. Price skimming is the viable method which ensures that organisation can recover the cost of developing the products (Toptal & Cetinkaya, 2015). Through price skimming strategy in the Australian market; this strategy will build the high-quality image for the products.
Donald B has started two stores in Melbourne; however, he wants to expand the business in the national and international market. Donald B takes the raw materials from local suppliers; however, cocoa is exported from the international suppliers. Donald B will have two strategies to expand the business in the international and national market. First, Donald B will have own his stores; second, Donald B will give the franchisee of the concept stores in order to expand the business very fast in Australia. Donald B is expected to locate its franchisee and own-run stores in metropolitan cities like Melbourne, Sydney, Perth, Victoria and Adelaide. The stores and franchisee stores will be located in the urban places so that the stores can target the young generation who belong to the upper-class section. Franchising option for Donald B will help him to establish market share and it will help to recognise the brand name of the organisation. The franchisee will help Donald B to compete with the big businesses in the chocolate industry. Donald B will use selective distribution strategy which will enable Donald B to carefully choose the partners and multiple channels. Selective distribution will enable Donald B to have more than one intermediary who will carry the company’s products to the franchise and its own-run concept stores.
Donald B will take both push and pull marketing promotional strategies. The purpose of the push and pull marketing strategy is to inform the customers about the new launch products and differentiate the products from the competitors. In addition, Australian chocolate industry has many of the existing organisations which can provide tough competition to Donald B. In the franchise and the own-run concept stores of Donald B; push marketing will be conducted where the sales display at the stores. Pull marketing idea is to create the loyal following and draw the customers to the products.
Donald B can ask the PR team to start the social media marketing where the PR team can advertise on Twitter, Facebook and Instagram. Social media marketing is cost-effective where giving advertisement on social media account is easy.
|
Activities |
|
|
|
|
Social media site focus |
Sharing news, content, stories |
Sharing posts |
Sharing images and videos |
|
Company’s brand presence |
Facebook business pages |
Twitter page |
Company page |
|
Viral brand exposure |
Likes, comments, shares of the posts and instant replies of queries |
Retweets |
Likes, comments |
|
Impact on website traffic |
Direct links of the products and price on Facebook |
Direct links on the content page |
Direct website link of the products along with products |
Table1: Proposed social media strategy for Donald B
(Source: Self-developed)
Donald B can also take the idea of SEO strategy on the online platform as this process will maximise the numbers of visitors to the organisational website. PPC will allow display ads of the products and when people search for the chocolate products; the name of Donald B will appear on the search engine.
Donald B will also take the print media advertisement as it will help the organisation to promote the business through the high-quality, fantastic and glossy way. Newspaper advertisement can explore the brand in national, regional and local places and the customers get to know about the brand. The out-of-home advertisement will allow the brand to be noticed by the people where the customers can see the advertisement in billboards and hoardings on the road. Donald B will be able to make the emotional bond between Donald B chocolates and customers.
Finally, Donald B can take the strategy of discount on selected chocolate products on the concept stores and in franchise stores. Discounts will attract the customers as customers will get the products at cheaper rates and it increases sales of the stores as well (Viloria, Wilches & Acuna, 2016).
Process element is associated with services marketing and Donald B has to provide the best services to the customers who will visit the franchisee stores and concept stores. The staffs of Donald B will prepare the chocolate based products in front of the customers and this transparency will enhance the credibility of the organisation. Donald B will also follow the technological process where best of the technologies will be used to produce quality chocolate for the customers. The electronic process of organisation is included the receipts of cash-memo, bar codes and graphics. Process mixing helps the organisation to create the products and services what the customers want and process fulfils the customers’ needs (Datta, Ailawadi & Heerde, 2017).
The staffs of the organisation are significant in marketing as they are the people who deliver the services and manufacture the products. Donald B needs to employ skilled and young employees who can provide 100% of their potential in order to make the organisation successful. The staffs are important in the concept stores of Donald B as they need to produce the various types of chocolate items based on customers’ demand. As stated by Fan, Lau & Zhao (2015), it is significant to hire and train the right set of people to deliver the superior services. People of the organisation are open to the honest feedback and Donald B will train the employees so that they can work hard. Employees are important for the internal competitive advantage for the business.
Donald B has two physical stores in Melbourne as these are the physical evidence. Donald B will launch several chocolate products in the marketplace as these will be their physical evidence. Donald B will be opening new concept stores and they will provide franchising as well. Physical evidence is the stores, building, legal papers, products and the office buildings. Physical evidence can manipulate the customer perception where the brands appear first.
Conclusion
It has been observed that Donald B is the small chocolate manufacturer and it is going to expand the business in Australia and in the international sector. The target market of Donald B will be the young generation who belong to the upper class. The secondary target market of Donald B will be based on geographic location irrespective of the ages. Positioning statement of Donald B will be based on premium quality chocolate which will accompany the happiness of the organisation. Donald B’s product line stretching strategy will help to provide diversified products to the customers along with price skimming. Social media marketing, print marketing and discount on the products are the promotional strategies. Donald B’s marketing strategy will help to achieve the objectives of the organisation along with attaining competitive advantage.
Reference List
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