Marketing Strategy for Chokolada: Expanding Presence in Australia

This report outlines a marketing plan for Chokolada, an emerging chocolate business in Sydney, to expand its presence to other Australian cities. The plan includes a situational analysis, SWOT analysis, key issues summary, marketing and financial objectives, and strategies for segmentation, targeting, positioning, and marketing mix.

Running head: MARKETING STRATEGY
Marketing Strategy
Name of the University
Name of the Student
Author Note

1MARKETING STRATEGY
Executive Summary
The aim of this report is to prepare a marketing plan for the expansion of an emerging
chocolate business in Sydney and other prominent cities in Australia, known as Chokolada.
The business owner Donald Benjamin already has two chocolate stores operating in Sydney.
He wants to open a third store and then grow his business to include other Australian
metropolitan cities, and based on the success he experiences upon doing so, he will formulate
plans to expand the enterprise to international shores. This marketing plan will enable the
chocolate business owned by Donald Benjamin to expand its presence to other important
Australian cities and towns. Chokolada is an enterprise that specializes in the manufacture of
affordably priced cocoa products, glazed or crystallized fruits, candied nuts, liquorice,
candied popcorn, marshmallow and drinking chocolate in addition to a wide range of mouth-
watering confectionaries. Chocolate stores are becoming increasingly popular among the
youth and the middle-aged population in Australia. Such destinations give the young and
young adults the scope of meeting with their peers in an informal setting as and when they
want to and without spending too much. Visiting a chocolate store to indulge in some
drinking chocolate and confectionaries is much less expensive than spending time with
friends and loved ones at a restaurant or even a shopping mall where one may feel compelled
to buy more than what one needs. By meeting up with peers at a chocolate store, people get to
indulge in their social life in a budget friendly way as a single cup of drinking chocolate or a
confectionary item like a chocolate bun is seldom known to cost more than $2. Chokolada is
a business that intends on targeting customers from the early teens right up to those who are
in their early forties. It will focus heavily on the use of social media in particular to carry out
its promotional campaigns, given how youth friendly social media is.

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Table of Contents
1. Introduction............................................................................................................................3
1.1 Background......................................................................................................................3
2. Situation Analysis..................................................................................................................3
2.1 Pestle Analysis.................................................................................................................3
2.2 SWOT Analysis...............................................................................................................5
3. Key Issues Summary..............................................................................................................6
4. Marketing Objectives.............................................................................................................7
5. Financial Objectives..............................................................................................................7
6. Marketing Strategies..............................................................................................................7
6.1 Segmentation and Targeting............................................................................................7
6.2 Positioning........................................................................................................................7
6.3 Marketing Mix.................................................................................................................8
7. Action Plan.........................................................................................................................8
8. Budget....................................................................................................................................9
References................................................................................................................................11

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1. Introduction
1.1 Background
Chokolada is an emerging chocolate business in Sydney, Australia that aims to
expand its enterprise to other prominent Australian cities and towns. At present, Chokolada
caters to a clientele that comprises of school and college going students and early career
professionals. A key feature of the services provided by Chokolada is that it gives its
customers an extensive range of exotic drinking chocolate beverages to choose from. Those
fond of drinking chocolate can select from a wide variety of French and Swiss hot chocolate
drinks when they visit Chokolada. Chokolada takes a lot of pride in the quality of the
chocolate that it produces, seldom giving its customers any reason to complain about the
chocolate that they drink or the confectionaries that they eat at any of its stores. Every care is
taken on the part of the store authorities to sell chocolate that has been well examined and
supervised prior to being distributed to customers. This chocolate business in Sydney also
provides its customers with a carefree and informal ambience to interact in and it has turned
out to be quite an attractive hangout destination for the youth in Sydney. People love to come
to these stores and spend hours talking to one another, just like they would do at a café or a
bistro. Based on detailed situational and marketing analysis, a marketing plan for Chokolada
shall be drawn up using which it can successfully expand and establish its presence in other
Australian locations, and ultimately based on how it performs here, in foreign shores.

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2. Situation Analysis
2.1 Pestle Analysis
1. Political Environment – The political environment in Australia is one that is relatively
stable and is certainly conducive for business growth and development. Australia serves as a
very crucial market for multi-national corporations as far as the Asia Pacific region is
concerned. The Australian political system can readily respond to economic challenges.
There is a strong checks and balances system in place and the country also has a much
respected law enforcement and judicial system in place, that provides investors foreign as
well as local with a climate of security in which to conduct business in. (Austrade.gov.au,
2018). As a result the Chokolada enterprise has been able to run in its operations in a smooth
and efficient manner. It has not run into difficulties with local administration and is not an
enterprise that is viewed with skepticism or distrust by political authorities in Sydney.
2. Economic Environment – The economic growth rates in Australia tend to be a lot higher
than that of most OECD countries like the UK and the USA ("Australian economy | Business
| The Guardian", 2018). The country’s GDP growth rate in particular is as high as $ 1.1
trillion and the growth rate of 2.5% has made the economic environment of the country
secure and stable (Solomon, 2014). Exchange rates are on the rise, interest rates are moderate,
employment levels are relatively high and the rate of inflation is very low (Reserve Bank of
Australia, 2018). The terrific economic growth in Australia and the stable business
environment has really enabled Chokolada as an enterprise to thrive and prosper upon
conducting its operations in Sydney.
3. Socio-Cultural Environment – There are three primary classes of people existing in the
country of Australia namely the upper class, the middle class and the working class. Wealth
is determined through the ownership of property and capital. The middle class in Australia is

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comprised of people who are engaged in non-manual professions such as engineering, law,
medicine, computing and accounting. The working class comprises manual workers only.
Australian society is quite diverse in nature with people of different ethnic groups residing in
peace and harmony over here. English is the language that is used for communication and the
country has no official religion either. Education is regarded as compulsory for most
Australians and higher education is greatly pursued by those on the lookout for the best
employment opportunities. Tertiary education is also something that is made quite easily
available in Australia and is mostly provided by technical institutes and universities or
institutes that specialize in the provision of adult continuing education
(Myaccount.news.com.au, 2018). The excellent socio-cultural environment in Australia has
enabled Chokolada to target an ethical and prosperous customer base, with most of its clients
being well to do middle income individuals.
4. Technological Environment – Science and technology policy in Australia is dominated
by a number of important issues. Research and development work concerning technology
mostly takes place at nationalized research centers. There is effective communication
between the government and the industry. A good deal of tension is seen to exist between
researchers at the University level over the government allocation of funds for researching on
technological areas and the industry is seen to play a crucial role in supporting technological
research. Australia is seen to play a key role in science and technological collaborations at the
international level. Various advancements are seen to take place in technology in Australia
that has resulted in new and improved approaches to marketing and marketing
communication. Companies in Australia are well positioned to use such advancements in
order to innovate and improve upon their special brands and products (Industry.gov.au,
2018).

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5. Legal Environment – Property laws in Australia are very stringent and have played quite
a crucial role as far as the reduction of corruption is concerned. The taxation system in
Australia is quite a favorable one especially as far as nonprofit organizations are concerned,
with NGO’s enjoying benefits like tax concessions, tax exemptions and tax deduction
certificates (Alrc.gov.au, 2018). Chokolada while running its business has not been slapped
with unfair trade regulations, legal notices or burdened with unfair taxes.
6. Environmental Factors – Natural resources in Australia are on the decline. The challenge
of global warming is also something that the Australian population is faced with, compelling
many to adopt eco-friendly lifestyles or mode of living (Nationalgeographic.com, 2018).
Since Chokolada adopts environment friendly means to manufacture and distribute chocolate,
it is able to target a customer base that is entirely in favor of eco friendly living. All the
people in Australia who are fond of drinking chocolate and eating chocolates and who believe
in environmental sustainability certainly feel inclined to patronize the Chokolada stores
because of their approach towards environmental conservation.
2.2 SWOT Analysis
1. Strengths – Chokolada is a chocolate business that provides its customers with a relaxing
environment in which to sip coffee in when visiting any of its stores. Every effort is made to
make sure that the music played in the background during business hours is soothing and
gentle to the ears and not loud and jarring. The stores operating under Chokolada also
specialize in the timely rendition of services and customers never have to wait for more than
five to seven minutes for drinking chocolate, conventional chocolate or any confectionary
that they might order along with it. Particular care is taken regarding the quality of chocolate
products and confectionaries that are made available to customers. Customers will find little

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or no reason to complain about the solid chocolate or the hot chocolate that they buy from
any of Chokolada’s stores.
2. Weaknesses – The ingredients used for making drinking chocolate and other
confectionaries are quite basic and not as sophisticated or exotic as those used in other
upscale confectionaries and chocolate stores in Sydney. Those on the lookout for solid or
liquid chocolate that tastes highly exquisite or unique may not get what they are looking for
when they arrive at Chokolada. While efforts are always in place to ensure that customers do
not fall ill or find any distaste when consuming any chocolate at the Chokolada stores, that
taste of uniqueness that one finds when eating imported chocolates or branded chocolates is
something that is usually missing from the Chokolada products.
Opportunities – Almost everyone these days is fond of eating chocolates and drinking hot
chocolate. The youth, especially those still pursuing their education and those who have
newly started earning are often looking for places in the city where they can relax and unwind
with likeminded friends and peers. The Chokolada business plans to expand its operations to
a location where it can easily access its target customer base. People looking for an affordable
but comfortable place that plays good music and which serves hot chocolate and
confectionaries will most definitely be interested in patronizing such a chocolate store. For
such people, visiting such a store will give them the opportunities to unwind and relax with
their friends and loved ones without spending as much as they would have had to had they
gone over to an upscale bistro in town (Johnston & Bate, 2013).
Threats – Chocolate stores are opening dime a dozen in most of the prominent Australian
cities and towns. Chokolada is therefore more than likely to face the threat of competition
from other similar stores and bistros in the location that it expands its business to. Pricing can
prove to be a tricky affair. Customers are likely to prefer confectionary stores that serve

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inexpensive but delicious hot chocolate. The existence of such a chocolate store can pose as a
huge threat to Chokolada, which may find it quite difficult to serve exotic and sumptuous
drinking chocolate, confectionaries and different varieties of solid chocolate at too low a rate.
While such stores do not really last in the market for too long a period of time if they
continue to serve sumptuous chocolate at low rates, they can for a certain period of time
attract business away from the Chokolada stores.
3. Key Issues Summary
Expenses are certain to be a major area of concern for Chokolada. The production of
high quality chocolate can only be feasible if a substantive amount of money is invested in its
manufacture. Yet by keeping the price of chocolate low and affordable, the business won’t be
able to incur as much profit as needed to meet overhead costs, at least at the initial stages of
its operation in the new location of enterprise. Since the enterprise, authorities will have to
engage in the recruitment of new staff for the stores in the new business location, a smooth
and efficient rendition of services is something that cannot be easily guaranteed at the outset
of business operations in the new business locations. It will take some time for the new staff
that is recruited to understand the nature of the business, client demands and thus carry out
operations for the Chokolada stores accordingly (Donovan et al, 2014).
4. Marketing Objectives
 To get as many new customers as possible
 To retain all existing customers
 To establish a faithful and regular clientele

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5. Financial Objectives
 To start generating profits right from the very first month of business in the new
location
 To maintain a high gross margin of approximately sixty to seventy percent
 To incur enough revenue for investing in the manufacture of high quality chocolate,
both drinking chocolate and solid chocolates.
6. Marketing Strategies
6.1 Segmentation and Targeting
Chokolada is a business that shall cater to customers aged between sixteen and forty
years, both male and female. Customers do not need to belong to a high income or an
excellent economic background in order to purchase chocolate from any of Chokolada’s
stores. Discounts and rebate coupons shall be provided to those who are seen to regularly
patronize the chocolate stores. (Newton etal., 2013). The discount and the rebate coupons will
put customers in a position to avail rebates ranging between ten percent and thirty percent on
Chokolada’s products. Regular customers at the Chokolada stores will thus be able to save
some money when patronizing the stores, thus giving them every incentive to keep
patronizing the business for as long as possible (Wilkinson, 2013).
6.2 Positioning
Based on the theory of competitive advantage, in order to clearly distinguish this
chocolate from other similar outlets in the new location, the Chokolada stores shall create an
ambience centered around rock music (Wang, 2014). Photos of erstwhile Rock Music icons
like Jim Morrison, Jimi Hendrix and Elvis Presley among others, will adorn the walls of the

10MARKETING STRATEGY
stores. This will allow customers to gaze at their favorite rock idols while listening to some of
the trendiest rock tunes that play in the background (Urde and Koch, 2014).
A jukebox system of playing music shall be put in place at the store for the benefit of
customers who are especially likely to visit Chokolada stores for listening to music while
enjoying some delicious chocolates. This jukebox will enable customers to select their
favorite tunes, which will then be played in succession for their enjoyment at the store
(Ridder et al, 2014).
6.3 Marketing Mix
1. Product – The products sold will comprise of high quality hot chocolate, solid
chocolates and a variety of confectionaries. Customers can get to choose from not
only the regular bitter chocolate, milk chocolate and chocolates with nuts but also an
extensive variety of candied popcorn, candied nuts, glazed fruits, marshmallows and
liquorice (Helm and Gritsch, 2014).
2. Place of Distribution – Distribution of chocolates through the stores shall be
conducted in the city or town where the new stores of the Chokolada business are
opened, especially in and around the localities where the stores are set up (Eshuis
etal., 2014).
3. Price – The initial price of a hot chocolate or any standard drinking chocolate at
Chokolada will be set at $ 2. Special concoctions and even imported solid chocolates
and confectionaries will be priced at just $ 10 and $ 15 per item (Khan, 2014). While
there is a certain risk associated with low pricing strategies, especially if the business
is to be sustained in the new locations over the long term, it is hoped that the low
price will have a very important role to play in attracting as many customers to the

11MARKETING STRATEGY
Chokolada business as possible as soon as it starts in operations in the new business
locations (Ingenbleek et al, 2013).
4. Promotion – Promotional activities will be carried out on social media platforms such
as Facebook, Twitter, Youtube.com and Instagram. Leaflets about this chocolate
business’ expansion will also be handed over and distributed at shopping malls and
grocery stores in the new cities where the café is opened (Andreti, 2013). Since social
media is widely used by customers of every age group, it is hoped that the extensive
use of social media will be a useful role in disseminating the news about Chokolada’s
business expansion quite easy. People will get to know about Chokolada’s business
operations in cities and towns of Australia apart from Sydney by simply logging into
their accounts on Youtube, Twitter and Facebook (Mikalef et al, 2013).
7. Action Plan
Activit
ies
J
an
F
eb.
M
arch
A
pril
M
ay
J
une
J
uly
A
ugust
S
ept
O
ct
Nov D
ec
Leaflet
Distributio
n
Facebook
Marketing
Promotion
on Twitter
and

12MARKETING STRATEGY
Youtube
Promotion
on
Instagram
Press
Release
Source – As created by the author
8. Budget
Types of Promotional Activities Quantity Cost per Unit Total
Expenditure
Creation of Facebook
Marketing Pages
10 $100 $1000
Creation of professional Youtube
videos
5 $ 250 $1250
Procuring Instagram Likes 1000 $5 $5000
Publishing Advertising Tweets
on Twitter
100 $2 $200
Leaflet Distribution at Local
Shopping Malls
500 $ 1 $ 500

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Total $ 7950
Source – As created by the author

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