Significance And Role Of Marketing For Global Chocolate Product Maker

Consumer Behavior and its Impact on Donald B

Discuss about the Food Industry Influences Nutrition and Health.

The present paper discusses about the significance and role of marketing. It explains that how marketing strategies provide support to Donald B in order to accomplish the desired goals and objectives. The marketing strategies are adopted by the company to create a dynamic image and reputation in the market. In addition, marketing approach also helps the company to maintain strong relationship with customers widely. Donald B is a chocolate product maker who has two stores in Melbourne. The organization wants be a global player in chocolate industry. Donald B is manufacturing various food products including liquorice, cocoa product, candied popcorn, candied nut, confectionery, glazed fruit and marshmallow.

The company is selling its products with the help of Aldi, Woolworths and Coles. It has been measured that consumption of chocolate products in Melbourne is increasing day by day. It also increases the competitors in the global market. The paper outlines that how purchasing power or buying behavior of the consumers may affect the long term mission and vision in the international market. There are ample of elements that affect the purchasing power and income level of the consumers. Along with this, the report explains the macro environment and micro environment factors that may affect the profitability and result of Donald B. The paper also outlines that how competitors affect the business of the company adversely. The macro environmental analysis is an effective tool to sustain and cope up with rivalries in the marketplace. More detail of the task is elaborated below.

The consumer behavior is the study of groups, individuals and firms and all the activities that are associated with the use, purchase and disposal of products and services including consumer emotional and behavior that follow or precede these activities and operations (Solomon, Dahl, White, Zaichkowsky & Polegato, 2014). The buying behavior is significant to operate and manage the business activities globally. The actions or activities of the customers also affect the success and progress of Donald B. It has been found that marketing survey and research is done by Donald B to predict the buying behavior and respond of the customers globally. The company uses marketing mix strategies to beat and overcome the competitors in the international market. There are various factors such as cultural factors, social factors, personal factors and psychological factors may affect the buying behavior of the customers internationally (Mbatutorials, 2018). The consumer behavior includes the following:

Factors Affecting Consumer Buying Behavior

Brand and product choice: In today’s modern world, the customers focus on the branded products because these products provide satisfaction to the customers. Cadbury, Lindt and Ferrero Rochers are well known chocolate brands in Melbourne. Thus, the customers choose the well known and attractive brand in the marketplace. Along with this, customers also focus on the food products such as chocolate and confectionery. The consumers differentiate the chocolate products from the competitor’s products to buy the best quality of products in the marketplace.

Price: One of the significant factors that affect the buying behavior is price. The organization needs to focus on the prices of the chocolate products to gain or attain competitive benefits widely. It has been found that people buy mostly chocolate products in the occasions like birthdays, and Christmas. The needs and requirements of the family may also influence the profitability of Donald B.

Income level: It is noted that income level of the consumers plays a vital role in maximizing the sale and revenue of Donald B effectively and efficiently. The sale of chocolate products depends on the income level of the consumers globally. Generally, upper class and middle class people prefer to buy the chocolate products in the international market.

Beliefs, values, attributes, economic situation and cultural factors also affect the decision making process of buyers or customers. The high and strong level of motivation may influence the purchasing behavior of the customers positively (Muruganantham & Bhakat, 2013). The beliefs and learning factors also help in enhancing and increasing the purchasing power in the competitive market. Donald B cannot survive its business widely without analyzing and measuring the consumer behavior and income level of the customers internationally. It has been analyzed that consumer behavior is highly affected by the cultural and social factors. These factors may also influence the decision making process of the consumers in the rivalries market (Hawkins, Best & Coney, 2009). If the company wants to enhances and increase the returns and outcomes then it needs to focus on the consumer behavior and income level of the consumers. The buyer behavior determines the operating profits and revenue of Donald B.

There are enormous micro environment factors that may immediately affect the growth rate of Donald B. These factors also have direct impact on the decision making process and performance of the firm. The micro environment factors entail producers, competitors, customers, suppliers and publics. It has been analyzed from the various studies that Donald B can control the internal factors by using effective and dynamic strategies in the marketplace. The micro environment factors include the following:

Micro-Environment Factors That Influence the Growth of Donald B

Publics: The growth and profitability of Donald B is dependent on the public relations. The brand image of the company also helps in deciding the future of the market. The public include shareholders, media, environmentalists, and investors who maintain direct connection with the organization. Thus, Donald B should maintain reciprocal and strong relationship with public to attain the success and growth in the business. In today’s competitive world, public plays a fundamental role in internal environment of the business. The local public may influence the ongoing business of Donald B. The local media also plays empirical role in determining the success of the company (Kokemuller, 2018).

Manufacturers and suppliers: It is stated that manufacturers and suppliers plays a primary role in the growth and success of Donald B. It is noted that the company is dependent on the suppliers to sell the chocolate products in the global market. The suppliers and manufacturers help in creating good and dynamic value to their customers and furthermore, they also help in generating the profits in a hassle free manner. It is noted that Donald B is a new leader in chocolate industry thus; they need to maintain positive relation with suppliers and manufacturers (Brinkman, Navarro & Harper, 2014).

Competitors: There is intense and high competition in chocolate industry that can affect the revenue and returns in the global market. The competitors also may have direct impact on the market share and progress of Donald B. The firm needs to focus on the market strategies of the rivalries to capture the entire market. The competitors of Donald B include Mondelez, Mars, Lindt and Woolworths. It has been noted that premium products are also being offered by these competitors meet the long term requirements and needs of the customers. The rivalries are offering the chocolate products based on capacity designs, packaging and pricing of the different perks. The competitors are offering the products at lower rate hence, it may affect the outputs and productivity Donald B negatively.

Employees: The workforce is one of the biggest assets for the company therefore; the company should focus on the talented and skilled worker to stand out against the competitors worldwide. Apart from this, distribution channels also are considered by Donald B to fulfill the needs and wants of the customers (Fleisher & Bensoussan, 2015).

The competitors may influence the progress and profitability of Donald B. Mondelez is one of biggest competitors of Donald B that directly affect the consumer behavior in a large extent. Mondelez provides confectionery, beverage and food products to the customers across the world. It provides products to the customers at appropriate prices globally (Aaker & McLoughlin, 2010). The other competitors include Mars, and Lindst that may impact on the effectiveness and outputs of Donald B. These competitors are producing the similar products as Donald B. The competitors are producing innovative and dynamic food and beverage products in the market to stay in the competitive market. Mondelez also offers snacks, beverages and food brands in all over the world. The firm is investing huge amount to attract and retain the maximum number of customers in the global market. It is also seeking to expand and explore in countries where demand for drinks and snacks are showing most growth (Munshil, 2013).

Competitor Analysis: Key Players in the Chocolate Industry

Let’s talk about other competitor, Nestle also provides drinks, culinary, chocolate and confectionery products to target audience around the world. The well known brands of Nestle include Nescafe, Nespresso and KitKat. The organization provides healthy and delicious products to the key target audience in the marketplace. It may affect the sales volume and market share of Donald B internationally. Mainly, the organization focuses on the middle class and upper class people to generate maximum profits and outcomes. The company also targets the qualified people who want to eat chocolate products widely (Monteiro, Gomes & Cannon, 2010).

Lindt is a Swiss chocolate firm that provides chocolates in various flavors in the competitive market. It also provides nuts, assortment, while chocolate, hazelnut and dark chocolate to the target audience. It focuses on the lower class people who want to buy chocolate products at appropriate and cheap prices. Apart from this, it also focuses on women also who are between the age group of 25-48 years.

If talk’s about Mars, the company renders various food, drinks, chocolates and Wringly to the customers around the world. Snicker and Mars bar and M&M’s are the main and famous brand of Mars. The organization offers variety of food products such as bite size, hazelnut bar, dark chocolate, stuffed snacks, dark chocolate cookie bars and peanut butter dark chocolate and others. The main aim of the company is to provide tasty and delicious products to the customers around the world. Mainly, Mars focuses on the needs and requirements of the each age group of people. Marketing research, survey, and seminars are done by the company to measure and determine the desires and expectations of the customers in the competitive market (Finne & Sivonen, 2008).

	Nestle	Mondelez	Lindt
Product	Nestle provides ample of food and beverage products to the customers across the world. It also provides chocolates, prepared dishes and milk products.	The company renders block of chocolates, ice-creams, boxed chocolates, confectionery items and drinking chocolates.	The company specializes in seasonal confectioneries, chocolate products and typical sweets.
Price	Nestle is a global leader in the market thus it sets the high prices of the products. The organization sets the premium prices of the products because it provides excellent quality of products and services to the customers.	As the quality of products is high therefore, the company sets the high or premium prices for the food and beverage products.	It is noted that chocolate market is an oligopoly market and Lindt is one of the biggest leaders in the market. Appropriate prices of the food products are set by the company.
Place	Distribution strategy is used by the firm while distribute the food and beverage products across the globe (Mbaskool, 2018).	It is noted that the company provides products in urban areas as well as A, B and C category towns.	The firm has 60 stores in US and further Lindt also sells its products in France, Italy, and USA. Currently, the firm is operates and manages its operation in more than 100 countries globally (Mbaskool, 2018).
Promotion	Sales promotions are done by the company to attract maximum number of customers globally. Along with this, it also uses advertisement and promotion strategy to gain competitive benefit.	Effective and unique advertisement strategy is used by the firm to attain competitive benefits in the international market. Direct selling strategy is also initiated by the company.	Digital advertising strategy is used by the company and apart from this, it also uses various social media channels to promote the products across the globe (Mbaskool, 2018).
Key message	The company touches the lives of billions of people in the market. The company recommends that healthy and delicious products should be used by customers across the world (Mbaskool, 2018).	Mondelez wants to provide fully satisfaction to the customers by providing delicious and tasty food products widely.	It is suggested Lindt wants to provide delicious and tasty products to the customers.

Strengths and weaknesses of Donald B

Strengths

• The company has built and developed a well reputation and image in the market.
• Unique and dynamic research and development team is maintained by the firm.
• Strong and dynamic culture and values.

Weaknesses

• Lack of nutrition value is one of the significant weaknesses of the firm.
• Sales tend are seasonal in the company.

It is stated that macro environment factors may influence the progress and survival of the business. The macro environment factors are uncontrollable because these factors cannot be controlled and managed by the company (Frue, 2017). The macro environmental factors are significant source to understand and evaluate the entire market globally. The macro environment factors are discussed below.

Political factors: It is noted that ample of political in Melbourne may affect the sale volume of Donald B. The political factors include tax rate, favored trading partners, pricing regulations, wage legislations and mandatory employee advantages also affect the efficiency and performance of the company adversely as well as positively. The product labeling and other requirements in confectioners could also affect the survival of the company. It has been analyzed that stability of the government may also affect Donald’s B chocolate products. The company must focus on the political factors while expanding and flourishing the operations and activities in a large extent. After the various studies, it is noted that Australia follows strong and dynamic political system for handling the challenges and risks of the market (Nestle, 2013).

Demographic: There are enormous factors that affect the objectives and goals of the company. Various market segments are highly influenced by demographic forces such as age, ethnicity, and household lifestyle (Squicciarini & Swinnen, 2016). It is noted that lifestyle of Australian are dynamic and high thus, they prefer to buy the products which are sold by the companies at high rate. The companies produce the chocolate products for all people in the country. It is stated that aging population mainly prefer to eat chocolate products rather than other food products. The demographic factors play an empirical role to maximize the sale and revenue of chocolate products in the international market (Keller, Parameswaran & Jacob, 2011).

Natural factor: The natural products such as forests, renewable resources and marine products also may affect the production of Donald B. These products may affect the success of the company positively and adversely in the market. The natural trends like healthy, premium and flavors products also impact on the long term success of Donald B. The company should focus on the natural trends to cope up and strive with rivalries in the marketplace (Cauvain & Young, 2008).

Technological factor: One of the significant factors that can affect the production of the firm is technology. E-commerce plays an important to increase the operating profit and revenue of Donald B (Lee, 2010). Innovative and advanced technology must be used by Donald B to run the business activities and operations smoothly. Technology factor helps to conduct business successfully and effectively. It should make attractive and unique packaging strategies to build and develop a dynamic image in the international market.

Economic factor: The economic elements include exchange rate, growth rate, employment rate, interest rate and inflation rate. Changing inflation rate and recession put direct impact on the business of Donald B. The changing behavior of the consumers also impact on the chocolate products widely. The rising prices of raw material may also affect the behavior of the suppliers internationally. No company cannot grow and flourish the business globally without focusing on the economic factors (Doole & Lowe, 2008).

Cultural factor: The cultural factors include custom, values, beliefs, behavior and income level of the consumers that affect the effectiveness and production of Donald B. The cultural factors also affect the buying behavior of the consumers (Thornton, Ribeiro-Soriano & Urbano, 2011). Therefore, Donald B needs to focus on the socio-cultural factors and the company should also focus on the marketing trends to improve and enhance the image of the company (Beckett, 2011).

Conclusion

It concludes from the above case study that unique and dynamic marketing strategy is an important and effective part of each and every company. No company can build and develop a dynamic image without using and initiating the marketing strategies in the marketplace. The case study shows that how Donald B uses marketing strategy to improve and enhance its goodwill internationally. Donald B is a chocolate makes who produces innovative and tasty chocolates for the consumers globally. The firm should focus on the buying behavior and income level of the target audience globally. In today’s modern world, the firm is increasing and enhancing its operating income and returns by focusing on the macro environment in a large extent. Along with this, the chocolate products must be sold by the company at suitable prices to attract wide range of customers worldwide. The high and intense competition put direct pressure on Donald B to be a leader in the global market. If the company wants to maximize outputs and returns then it should identify and measure the potential customers. Pestle analysis, SWOT analysis and porter diamond model are used by Donald B to identify and determine the threats, risks and challenges of the market. The micro environment factors are also analyzed to identify and measure the strengths and weaknesses of the company.

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