Target Market and Positioning Strategy of Darrell Lea Confectionery

This article discusses the target market and positioning strategy of Darrell Lea Confectionery. It describes the demographic, psychographic, and behavioral characteristics of the target market. It also explores the point of parity and point of difference with competitors Cadbury and Nestle. The article concludes with the brand mantra of Darrell Lea and its marketing mix.

Running Head: DARRELL LEA CONFECTIONERY
Darrell Lea Confectionery
Name of Student
Name of University
Author note

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.4. Target market and positioning strategy of Darrell Lea Confectionery:
4.1 Description of target market
Demographic
Majority of the target audience of Darrell Lea are school-going children, teenagers and young
adults, with primary school consumers dominating the target section.
Psychographic
As the company offers special products like sugar free chocolates and liquorices low on calories,
it attracts health conscious consumers and people who suffer from ailments like diabetes, high
sugar and obesity (Lea 2019). In terms of benefits and characteristics, Darrell Lea has more
advantages than its chief competitors Cadbury and Nestle. The positioning of the brand is quite
distinctive, considering the range of products designed for different sections of the target
audience.
Behavior
The candies and the chocolate varieties are aimed at teenagers and school kids while the sugar
free products, cookies are aimed at young adults middle aged and health conscious consumers.
Items like licorice, special chocolate boxes and other luxury products are designed for
economically affluent consumers.
4.2 Point of parity
The point of parity with the competitor products is that both provide quality products at
reasonable prices and the products are easily available in local stores.
4.3 Point of difference
The main point of difference is that Cadbury and Nestle are international brands while Darrell
Lea is limited to distributing products in local markets of Australia without any international

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exposure. Further, the variety of offered products by the competitors is much more than Darrell
Lea.
Perceptual map of Darrel Lea versus key competitors Cadbury and Nestle
Cadbury
Darrell Lea
Nestle
As observed from the provided perceptual map, Nestle is positioned most favorably of
the three leading companies in the confectioneries industry as it provides high quality products at
low prices. However, Darrell Lea has more advantages and benefits over Cadbury, given that the
products are priced at cheaper rates and some of them cater to people with health ailments.
4.4 Brand Mantra
The brand mantra of the organization is to provide enhanced quality of gourmet in
affordable prices.
High Price
Low Quality
High Quality
Low Price

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5. Marketing mix of Darrell Lea Confectionery:
5.1 Product
Contemporary mega trends such as gourmet-tisation, multiculturalism and issues in
current affairs such as fair trade determine what people choose to consume. Darrell Lea has not
made any considerable changes in product designing for the past last decade. The distributors
have recently suggested launching a new fruit-flavored licorice and a logo change is being
initiated by the marketers. The company sells a wide array of confectionery products including
sugar free candies, bars and shakes, different assortments of chocolate in the chocolate box range
and special items during festive seasons. The product is known for their quality and innovative
packaging. Although Darrell Lee hardly indulges in innovating the product ranges or perking up
the designs, consumers are driven by the brand value of the company and the premium quality
offered at reasonable prices.
5.2 Pricing
The products of Darrell Lee are generally expensive and can only be afforded by
consumers with a stable economic background. Although the managers are now focus on an
economic pricing strategy, the products will always be aimed at the upper-middle class and rich
audience. The cost prices of the product have variants but all the products are sold at the same
MRP at different stores.
5.3 Place
Darrell Lee manufactures and distributes confectionaries in departmental stores like
Woolworths and Coles, it has more than 63 convenience stores aligned to its business. The
managers are deciding to open new exclusive stores in Australia that sells only Darrell Lee
products. In order to materialize this plan, the company must branch out to include a wider

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variety of product ranges. A shop cannot be run successfully in a market with the limited product
range that the company specializes in. Darrell Lee distributes the products in supermarkets,
grocery stores and departmental shops of urban areas.
5.4 Promotion
Darrell Lee Confectioneries have always taken to traditional means for promoting their
brand. The complete absence from social media for several years is a big disadvantage for the
company. However, the advertisements aired on television and the ones put up on market
hoardings have caught considerable attention from the crowd. The owners of the business are
planning to participate or even host social events like sports matches and health awareness
programs as a strategy to promote their product. Since the company has been in the market for
years it has secured a respectable position in the market and the old commercials still have the
same effect on the consumers. Darrell Lee has depended more on word of mouth and consumer’s
good will

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References and Bibliography:
Bhasin, H. 2019. Marketing Mix or 4 p's of marketing - Product marketing mix. [online]
Marketing91. Available at: https://www.marketing91.com/marketing-mix-4-ps-marketing/
[Accessed 7 Jan. 2019].
Darrell Lea. 2019. Product Range | Darrell Lea confectionery. [online] Available at:
http://www.dlea.com.au/range/ [Accessed 7 Jan. 2019].
Darrell Lea. 2019. Welcome to Darrell Lea Australia - World's best liquorice. [online] Available
at: http://www.dlea.com.au/ [Accessed 7 Jan. 2019].
Outsiders, C. 2019. Market Positioning | Brand Strategy Consulting | Differentiation. [online]
Chiefoutsiders.com. Available at: https://www.chiefoutsiders.com/strategic-services/market-
positioning-strategy [Accessed 7 Jan. 2019].
Wilkinson, J. 2019. Market Positioning Definition | Positioning a Brand | Repositioning. [online]
The Strategic CFO. Available at: https://strategiccfo.com/market-positioning/ [Accessed 7 Jan.
2019].

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Appendix
5.5 Competitor analysis
Marketing 4Ps Cadbury Nestle
Product Diversity in the product range
like Dairy milk, Bournville, Five
star, Perk, Cadbury éclairs and
OREO
Different segments of products as
per the preferences of the target
customers. The organization
propose beverages, milk
products, chocolates and semi
prepared foods for cooking
purposes.
Pricing High as well as low variants of
price are provided by the
organization for selling high
volumes even at higher prices
Slightly Skimming pricing
strategy is adapted by the
organization due to the enhanced
quality of the products.
Place Strong distribution networks in
the urban towns; however, the
organization lacks in proficient
distribution in the rural regions
The organization implemented
the standard FMCG strategy for
distributing the product.
Manufacturing >> C & F agent
>> Distributors >> Retailers >>
Consumer
Manufacturing >> Bulk buyers
>> Consumer
Promotion Utilizes social media platforms
for promoting the products
Well focused marketing
campaigns and social media
marketing initiatives are

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Considers fair utilization of
marketing campaigns in order to
persuade the potential buyers to
make a buy of the products
undertaken by the organization
for the promotional activities