This report focuses on the creation of a new branded organic chocolate and the situational analysis of this brand in the context of the Austral confectionary market. It explores the importance of branding in the modern business sector and the innovative strategies needed to create a strong brand.
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Running head: BRAND MANAGEMENT Brand Management Name of the Student: Name of the University: Author’s Note:
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2BRAND MANAGEMENT Executive Summary Branding is one of the major aspects of modern day business sector. It is tough for the companies to carry on with their business without a strong brand image. They have to develop a very strong emotional connection with their customers. Customers are not only looking for good quality products but they are also looking o some dynamic experiences or moments. These might include brand awareness, pre sale service, post sale service and others.This report has focused on the creation of a new branded organic chocolate. The Chocohoic brand will be launching a new organic chocolate range called Magic Organica. The report has focused on the situational analysis of this brand in context of Austral confectionary market and the different innovative strategies that they have to maintain in order to create a strong brand that will be appealing to their customers.
3BRAND MANAGEMENT Table of Contents Introduction.................................................................................................................................................5 Brand Information.......................................................................................................................................5 Logo........................................................................................................................................................5 Slogan......................................................................................................................................................5 Packaging................................................................................................................................................7 Target audience description.........................................................................................................................8 Demographic...........................................................................................................................................8 Psychographic.........................................................................................................................................8 Behavioral segmentation.........................................................................................................................9 Geographic segmentation........................................................................................................................9 Promotion plan............................................................................................................................................9 Situational analysis......................................................................................................................................9 SWOT ANALYSIS...................................................................................................................................10 Strength.................................................................................................................................................10 Weakness...............................................................................................................................................10 Opportunities.........................................................................................................................................10 Threats...................................................................................................................................................10 PEST ANALYSIS.....................................................................................................................................10 Political..................................................................................................................................................10 Economic...............................................................................................................................................11 Social.....................................................................................................................................................11 Technological........................................................................................................................................11 Brand Experience Scale.............................................................................................................................11 Objectives..................................................................................................................................................12 To reach out to mass customers.............................................................................................................12 Advanced marketing communication and customer service..................................................................12 Focus over premium quality..................................................................................................................12 Campaign Activities..................................................................................................................................13 Budget.......................................................................................................................................................14 Timeline....................................................................................................................................................15 Evaluation.................................................................................................................................................15 Conclusion.................................................................................................................................................16 References.................................................................................................................................................16
4BRAND MANAGEMENT
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5BRAND MANAGEMENT Introduction The modern marketers must focus on branding in order to develop a strong customer loyalty. They need to keep the customer choice and preferences in mind. In this modern day scenario the customers are mainly looking for products that will be able to provide them with some health benefits(Poelmans & Rousseau, 2016).Thus they have become very alert and conscious about their health. The brand that will be created is that of organic chocolate. Organic food products are made by maintaining natural and chemical free products. The brand will ensure that the products will be manufactured by maintaining strict compliance with the rules of organic farming. On the other hand chocolates are one of the most highly used products. This is a particular type of food product that has a very good demand in the Australian market. Brand Information Chocolates are such a product that is demanded by customers of almost every age group. Particularly the children and the old age group people are always looking for chocolates. Thus it will be a very good opportunity for the marketers to venture into this particular product if they are about to create any brand. Thus this report has focused on the creation of an organic chocolate brand(Moser, 2016). The brand named is Chocoholics Mania and it will be focusing on the organic chocolate products. The product will be called Magic Organica. This brand of chocolate will be specializing in the production of organic chocolate that will provide customers with taste, flavor and health benefits at the same time.
6BRAND MANAGEMENT Logo Figure 1: Logo Source: (Author) Slogan As the product is organic chocolate they will have to face a huge competition in the market. This is because there are already many firms dealing in the same product line. ThusChocoholics brandwill have to use aslogan or catch upline that will be able tocreate a hook for the customers. They will be creating a slogan that will enable their customers to understand the benefit of consuming this product instantly just be hearing or taking a look at the slogan. Magic Organica “You Wish, We Fulfill” (Your Heath Is Our Wealth)
7BRAND MANAGEMENT Figure2: Slogan Source: (Author) This slogan will be chosen as this chocolate brand will like to keep it simple and crisp. Their main motif will be to make its products available to mass consumers. Thus they do not believe in making their slogan a very tough and complicated one. Thebrand positioning statementchosen by the brand will be “Chocolates that make you eat healthily & live healthily".This will help the customers to realize that consuming these products will satisfy their quench for real chocolates and take care of their health at the same time. Magic Organica “The organic chocolate that comes with a tinge of taste and tons of health benefits”
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8BRAND MANAGEMENT High qualityLow quality High cost Low cost Chocoholic brand (Magic Organica) Figure3: Perceptual map Source: (Author) The Chocoholic brand will try to place themselves in the fourth quadrant that is in the high quality and the low-cost group. They want to target their products o majority customers. Thus they have to make sure that their product is placed at such a price that can be afforded by the high as well as medium income group people. This will be an added advantage for the brand as they will be able to develop brand loyalty(Vecchio & (Annunziata, 2015). In order to develop strong customer loyalty, they have to build a personal or emotional relationship with customers.
9BRAND MANAGEMENT Customers look not only for products but also for themoments or the experiences they get during the process of the transaction. Packaging The packaging will be done in a way that will create special appeal and emotional connection with the customers. The chocolates willcome wrapped in colorful boxes with little notes inside them. The notes will contain beautiful and meaningful messages like“we understand the family love”, “Your family is ours too”, “a comfort for taste buds and health”. Chocoholics will also place a manual guideor productinformation guide in each box that will inform the buyers regarding health benefits with the type and percentage of each element that has been used in the production of the chocolates(Moser, 2016). Building a prototype is one of the most vital steps in the field of brand creation. It is a very competitive market and in order to survive here this new brand will have to face several ups and downs. Thus making a look-alike or a prototype is one of the most vital stages that must be taken by them. This can be done by following the process of pilot testing. In this process the brand will be able to produce some samples of organic chocolates and release them to their targeted markets. They will be able to understand the customer reaction and their feedbacks towardsthenewproduct.Thiswillbehelpingthemtofindoutthenewstrategiesof improvements. Target audience description As per the opinion ofBullock, Johnson and Southwell, (2017) Australian love to consume the confectionary products and they mainly show a liking towards the chocolates. Chocolates make up about 77% of the total market sales of chocolates. The brand manufacturer
10BRAND MANAGEMENT has to make sure that they are targeting their products to the right group of customers. Audience or customer segmentation can be done by the following Demographic Magic Organica is a new brand that will be setting its step into the organic chocolate industry. They will have to ensure that they are targeting the right customers. Some of the factors that can drastically affect the purchase of this product are age, ethnic backgrounds, family size, and others. The brand will have to target customers falling between the age group of 25 to 49 years of age. Thus they will have to do in-depth market research and understand the preference patterns of such customers(Young & McCoy, 2016). People above the age of 25 to 49 are the service holders or the business people. In other words, they are all engrossed in some physical or mental labor seeking activities. Thus they will consume products not only for taste but for health benefits as well(Hasan & Sinning,2018). The brand will have to make sure that they are setting their product price as per the income of the customers. Tough the age of their targeted consumers generally have a source of income but often the organic chocolates are expensive and thus many people may not be able to afford them. Psychographic This is also a very important aspect that the company has to focus upon. Magic Organica will have to look over the psychographic aspects like lifestyle, personality trait and other such factors. As perKemp, Mai and Konstantoulaki,(2016), women tend to be greater lovers and buyers of chocolates than men. This is a new firm in the market they will have to use strategies like conducting a free workshop of women health or health benefits of organic chocolates for
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11BRAND MANAGEMENT women and other such aspects.Activities and lifestylewill also play a major role here as their majority of customers between 25 to 50 years of age will have a lifestyle filled with mental or physical activities. In other words, this age group had not yet reached the age of retirement thus they are all either busy in some academics, research, service or business activities. Apart from this, some customers might also be engrossed in the sports sector. Thus they will be already in a habit of in taking their food via the means of either protein bars or energy shakes and drinks. Thus they will naturally opt for organic chocolates as they usually avoid inorganic chocolates that are filled with huge sugar and chemical elements(Rousseau, 2015). Behavioral segmentation This segmentation is also important for the brand as they will have to understand the purchasing pattern or the decision-making pattern of the targeted customers(Berk et al., 2017). They will be targeting the women or then female customers as they are usually more inclined towards the chocolate products. Customers belonging to the age group of 25 to 30 will go for both solid chocolate bars whereas the customers belonging to the age group of 40 to 50 will naturally go for the liquid chocolate drinks. Thus Magic Organica will be focusing on the two different kinds of products(Holtom, & Burch, 2016). Geographic segmentation Geographical boundaries are also one of the important determinants of target customers. However as organic chocolates are already a more or less famous product, the brand will be sure about starting with customers within the Australian market and try to make their products accessible to the customers located in different other parts of the country. However as Magic Organica will be targeting customers falling between the age group of 25 to 50 years the will have to focus over the establishment of both online stores and the physical stores as well(Lee et
12BRAND MANAGEMENT al., 2018). This will make it easier for the bit aged customers to buy the products from the brick and mortar stores as they might not be comfortable in using the online apps. On the other hand, the young customers (the young adults) who are the university goers or office goers will be able to use the online or the digital shopping platforms without hampering their busy work schedules. Promotion plan Situational analysis As Chocoholic is a new brand who is just trying to make their market entry they will have to make sure that they are about the existing market condition or market situation in the industry.TherearealreadymanychocolatebrandsthatalreadyexistintheAustralian Confectionery market like Origin Organic Chocolate Makers. Thus in order to develop customer loyalty, they have to gain an idea about the underlying strengths and the approaching weaknesses that they might face in the future. SWOT ANALYSIS Strength The greatest strength that Chocoholic brand will get with the launch of their new organic product range that is Magic Organica is the health benefits. In this modern day scenario, all customers have become health conscious and are looking for products that would give them health benefits. Focusing on the range of unique features and taste will also be of good advantage. In order to target the customers between 25 t 49 years in general and the female customers, in particular, the brand will be creating a large number of products like solid chocolate bars, chocolate drinks, candies, and others. A high-quality product will naturally be
13BRAND MANAGEMENT able to attract a large number of customers as the customers are mainly looking for natural products with zero added preservatives and chemicals(Bedell & Reed, 2017). Weakness The presence of very powerful competitors will naturally prove to be a big hurdle. As there are many establish organic chocolate firms already operating in the market, it will be a huge problem for this brand. They will have to formulate new strategies in order to attract the attention of the customers Opportunities There rising demand for the dark chocolate or the organic chocolates is a major opportunity for the brand. They will already enjoy a huge demand for their product as there is Global demand for the dark or the organic chocolates. Chocoholics will be able to get a market ready platform, for marketing their products. They must use the opportunity of the modern scientific and technologic tools for making their products from totally fresh products and making their customers know that they are consuming a totally fresh product. Threats The biggest threat will be the huge level of competition that they will be facing. They will have to fight the tough battle with the already established and powerful competitors like the Origin organic chocolate Makers.Thus there will be very tough competition from these premium chocolate brands.
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14BRAND MANAGEMENT PEST ANALYSIS Political The political environment of Australia is stable. Thus it will be a benefit for the brand to make a smooth market entry. The taxation policies are smooth and do not involve any complicated process (Cobiac et al., 2017).They will be able to export and import raw materials without facing many complications. Economic Australia enjoys a stable economic status. There is always a strong domestic demand within the country itself. Thus Chocoholic brand will not have any issues in developing a demand(Hasan & Sinning, 2018). However, they must expand on their export locations rather than only depending on some specific countries. Social Australia will provide a very friendly social environment. This will be advantageous for the new brand to propagate. They will be able to get educated, well trained and punctual hardworking manpower. They will also get the advantage of recruiting many International Graduates who will possess dynamic and innovative marketing ideas. This will also reduce the cost of recruiting and training the external employees from other countries. They can use this money for other purposes like developing the R&D for better chances of improvement. Technological Australia is one of the most highly advanced countries in terms of their technological base. This will be a great advantage for the Chocoholic brand. They will not only be able to
15BRAND MANAGEMENT provide highly advanced product quality and quantity but they will also be able to reach out to their customers very easily. Brand Experience Scale SensoryThe brand will bear a bright, colorful yet crisp logo with a slogan. AffectiveThiswillcreateanemotional connection with customers by including thenatural,freshandbetquality products.Theseproductswillcome withastorehouseoftasteandalso nutrients that will be suitable for the kids,youngstersandalsotheaged elderly people of families. Thus,customerscanunderstandthe emotional message behind the products of this brand. The brand is concerned about the health of all the family members as they show theimportanceoffamilyandhow
16BRAND MANAGEMENT precious they are. BehavioralConsumption of the products of this brand will help in keeping the body free from calories Brand campaigns and workshops will include gym sessions and free health checkups. Sportspersonswilldemonstratehow they can consume chocolate drinks or consume chocolate protein bars while carrying on their sport activity. IntellectualThis brand will have a dual advantage for customers It will reduce extensive thinking or loss of time Thisbrandwillinitiateaproblem- solving skill as they will be keeping a user guide enlisted with all the health benefits of these products so that the customers can stay assured about the quality of the product that they will be purchasing
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17BRAND MANAGEMENT Table 1: Brand Experience Scale Source: (Author) Objectives To reach out to mass customers As Chocoholic is a very new brand they will have to usethe New Media Environment for getting a quick grip over the customers. Social media marketing is one of the most widely used platforms that can be used by this company. Digital revolutions are one of the most important aspects that they might consider. As per theKemp, Mai and Konstantoulaki (2016)women buy more chocolates than men but the female customers also do the majority of shopping for their family members. Thus this brand must carry on their campaigns through social media sites like Facebook, Instagram and others(Felix, Rauschnabel & Hinsch, 2017). They can also carry on their advertising through the beauty blog pages so that they can reach to the female customers instantly. They have to use different advertising media like television, radio, print, and others(Tuten & Solomon, 2017). Theywill also provide a special benefit to their customers by handing them over a free DVD showing the entire process of their manufacturing. The clip will mainly work for making the customers sure about the purity and the originality of this product.
18BRAND MANAGEMENT Advanced marketing communication and customer service A chocoholic will make sure that the customers are getting 24*7 hours customers’ service for any problems that they face. The concept of marketing communication will be opted by this brand so that they can reach out to their customer’s very easily. They will be using options like Interactive marketing, mobile marketing, events, and experiences. Mobile marketing will help to initiate the one to one marketing system. The customers will get a personal touch through the marketing system. They will appoint customer care executives who will be very active in responding to the queries and the doubts of people. Focus over premium quality Quality will be the most important aspect that Chocoholic brand will be focusing upon. They will make sure that the products are made purely from natural cocoa. The cocoa plantations will be kept under strict check so that no fertilizers or chemical preservatives are being used (Morris & Metternicht, 2016). The cocoa plantations will be carried on under a strict check of environmentalist and health experts. Farmers will be trained in the new and advanced methods of farming. Locally yielded products will be used so that the freshness is retained and there will be strict avoidance of chemical fertilizers and chemic preservatives. Campaign Activities The Campaigning activities have to be carried on in a way that will enable the brand to reach out to mass customers at the single go. The campaigning activities that they will be carrying willinclude workshops on health benefits and nutrition.The campaign can be named as ‘’No More Saying No To Chocolates”
19BRAND MANAGEMENT Usingsuch an intriguing campaign title will naturally attract a large number of customers. Usually, people fear that intake of too many chocolates will harm the body as they contain any added preservatives, chemicals and calories. Chocoholic brand with their new range of chocolate called Magic Organica will bring to the customers a range of naturally made fresh chocolate. This campaign will make customers know that they will not be harmed rather benefitted. Organic chocolates will be filled with antioxidants and blood purifiers that will help the customers consume these mouth-watering delicious chocolates without suffering from the fear of putting on extra calories. In order to build a strong emotional connection with customers, the brand will use some promotional strategieslike free health check-up.Customers are usually concerned about the harm that might be caused to their health from the sugar content of chocolates. Thus promoting their products in any health or nutrition-oriented campaign will naturally attract the attention of their customers. The other strategy that can be used by them isa free sample, sales, and discount coupons.This will be largely beneficial as this can attract customers. Customers will love to get some free testing organic chocolate. The discount coupons and seasonal cheap subscription offers will also be an added advantage for attracting the customers. Social media marketing will also be a very useful strategyfor reaching out to customers. Customers can browse and get all the necessary information via the webpages or the advertisement links or pop us on their social media applications like Instagram, Snapchat, Pinterest, Facebook, and others.
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21BRAND MANAGEMENT Timeline ObjectivesMonth 1 April 2019 Month 2 May 2019 Month 3 June 2019 Month 4 July 2019 Month 5 Aug 2019 Month 6 Sep 2019 Month 7 Oct 2019 Month 8 Nov 2019 Month 9 Dec 2019 Month 10 Jan 2020 Month 11 Feb 2020 Month 12 Mar 2020 Gatheringraw materials Accumulation of fund trainingand developmentof employees Media campaigns (Marketing Communication) Successful sale Table 2: Timeline Source: (Author) Evaluation The raw materials will be gathered between the first and the second month. This will include the gathering of machinery, all the raw materials like cocoa, natural and chemical free preservatives. The fund accumulation will be carried on right on from the beginning that is from the first to third month. They will be contacting all the fundraisers, investors and other sponsors.
22BRAND MANAGEMENT Side by side they will also start training the staffs. This will need a time of about 3 months. They have to train the farmers on the methods of natural farming. Modern eco- friendly farming methods and tools will be procured and supplied. Staffs will have to be taught about the product details, customer handling, and others. Chocoholic brand will be focusing on marketing communication. This will require a long time as they have to attract the attention of customers and make them convinced about the advantages that they will get from purchasing this product. The marketing campaigns will be continuing over a period of five months that is from the 5thto 10thmonth. Thesaleoftheproductwillalreadycommencesidebysidewithmarketing communication and the marketing campaigns. The brand expects to start selling its products successfully and profitable from the mid of the year that is from the 6thmonth onwards. This will be followed by taking regular follow-ups to record the progress of the brand. This can be done using strategies like brand audits, brand tracking studies. Conclusion Thus it can be concluded that Chocoholic brand will get a good and market ready platform to sell their new organic chocolate range that is Magic Organica. There is already a huge demand for confectionary items like chocolates in the Australian market. However, they will also face a huge challenge in order to survive in this market. Thus they have to use many innovative strategies to overcome the challenges.
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23BRAND MANAGEMENT References Bedell, W. B., & Reed, M. R. (2017). Hedonic Pricing of Chocolate Quality Characteristics: Is there A Difference for Fruit or Nut Chocolate?. Berk, L., Lohman, E., Bains, G., Bruhjell, K., Bradburn, J., Vijayan, N., & More, S. (2017). Is Chocolate Beneficial for Brain Health? Dark Chocolate (70% Cacao) Increases Brain EEG Power Spectral Density (μV2) Gamma Wave Frequency (31–40Hz) Which Is Associated with Enhanced Cognitive Processing, Learning, Memory, Recall, Neural Synchrony and Mindfulness Meditation.The FASEB Journal,31(1_supplement), 636-23. Berk, L., Miller, J., Bruhjell, K., Dhuri, S. A. Y. A. L. I., Patel, K., Lohman, E., ... & Berk, R. (2018). Dark chocolate (70% organic cacao) increases acute and chronic EEG power spectral density (μV2) response of gamma frequency (25–40 Hz) for brain health: enhancementofneuroplasticity,neuralsynchrony,cognitiveprocessing,learning, memory, recall, and mindfulness meditation.The FASEB Journal,32(1_supplement), 878-10. Bullock, G., Johnson, C., & Southwell, B. (2017). Activating values to stimulate organic food purchases:canadvertisementsincreasepro-environmentalintentions?.Journalof Consumer Marketing,34(5), 427-441.
24BRAND MANAGEMENT Chang, Y. T., Yu, H., & Lu, H. P. (2015). Persuasive messages, popularity cohesion, and message diffusion in social media marketing.Journal of Business Research,68(4), 777- 782. Cobiac, L. J., Tam, K., Veerman, L., & Blakely, T. (2017). Taxes and subsidies for improving diet and population health in Australia: a cost-effectiveness modelling study.PLoS medicine,14(2), e1002232. Felix, R., Rauschnabel, P. A., & Hinsch, C. (2017). Elementsof strategic social media marketing: A holistic framework.Journal of Business Research,70, 118-126. Godey, B., Manthiou, A., Pederzoli, D., Rokka, J., Aiello, G., Donvito, R., & Singh, R. (2016). Social media marketing efforts of luxury brands: Influence on brand equity and consumer behavior.Journal of business research,69(12), 5833-5841. Hapsari, R., Clemes, M. D., & Dean, D. (2017). The impact of service quality, customer engagement and selected marketing constructs on airline passenger loyalty.International Journal of Quality and Service Sciences,9(1), 21-40. Hasan, S., & Sinning, M. (2018). GST reform in Australia: implications of estimating price elasticities of demand for food.Economic Record,94(306), 239-254. Hogan, L. (2017).Food demand in Australia: Trends and food security issues. ABARES. Hogan, L. (2018). Food demand in Australia: trends and issues 2018. Holtom, B. C., & Burch, T. C. (2016). A model of turnover-based disruption in customer services.Human Resource Management Review,26(1), 25-36.
25BRAND MANAGEMENT Hwang, J., & Kandampully, J. (2015). Embracing CSR in pro-social relationship marketing program:understandingdrivingforcesofpositiveconsumerresponses.Journalof Services Marketing,29(5), 344-353. Kemp, L., Mai, L. W., & Konstantoulaki, K. (2016). Female self-gifts buying behaviour: impulse purchase and product involvement. InRediscovering the Essentiality of Marketing(pp. 129-137). Springer, Cham. Lee, H. C., Chang, C. T., Cheng, Z. H., & Chen, Y. T. (2018). Will an organic label always increase food consumption? It depends on food type and consumer differences in health locus of control.Food quality and preference,63, 88-96. Lovelock, C., & Patterson, P. (2015).Services marketing. Pearson Australia. Minazzi, R. (2015). Social media marketing in tourism and hospitality. Morris, A., & Metternicht, G. (2016). Assessing effectiveness of WEEE management policy in Australia.Journal of environmental management,181, 218-230. Moser, A. K. (2016). Buying organic–decision-making heuristics and empirical evidence from Germany.Journal of Consumer Marketing,33(7), 552-561. Moser, A. K. (2016). Buying organic–decision-making heuristics and empirical evidence from Germany.Journal of Consumer Marketing,33(7), 552-561. Poelmans, E., & Rousseau, S. (2016). How do chocolate lovers balance taste and ethical considerations?.British Food Journal,118(2), 343-361.
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26BRAND MANAGEMENT Rousseau, S. (2015). The role of organic and fair trade labels when choosing chocolate.Food Quality and Preference,44, 92-100. Tobey, L., Koenig, H., Brown, N., & Manore, M. (2016). Reaching low-income mothers to improve family fruit and vegetable intake: Food Hero social marketing campaign— research steps, development and testing.Nutrients,8(9), 562. Tuten, T. L., & Solomon, M. R. (2017).Social media marketing. Sage. Vecchio, R., & Annunziata, A. (2015). Willingness-to-pay for sustainability-labelled chocolate: an experimental auction approach.Journal of Cleaner Production,86, 335-342. Wu, S. I., & Lin, S. R. (2016). The effect of green marketing strategy on business performance: a studyoforganicfarmsinTaiwan.TotalQualityManagement&Business Excellence,27(1-2), 141-156. Young, M. E., & McCoy, A. W. (2016). Millennials and chocolate product ethics: Saying one thing and doing another.Food quality and preference,49, 42-53.