Marketing Environmental Analysis of Desklib - Research Case Study Report

This report provides a marketing environmental analysis of Desklib, an online library for study material with solved assignments, essays, dissertation, etc. It discusses buyer behavior, microenvironment, competitors, and macro-environmental factors. The report highlights the buyer behavior in relation to the products, analyzes the microenvironment, summarizes the likely competitors, what they offer and target consumers, and analyzes the macro-environment. The report also includes the subject, course code, course name, and university name.

Running head: MKT600 MARKETING- ASSESSMENT 1
MKT600 Marketing
Assessment 1: Research Case Study Report
Student’s name:
Name of the university:
Author’s note:

1MKT600 MARKETING- ASSESSMENT 1
Table of Contents
Introduction......................................................................................................................................3
1. Discussing the buyer behaviour in relation to chocolate products..............................................3
2. Analysing the microenvironment................................................................................................5
3. Summarising the likely competitors, what they offer and target consumers...............................7
4. Analysing Macro-environment..................................................................................................10
Conclusions....................................................................................................................................13
Reference List................................................................................................................................14

2MKT600 MARKETING- ASSESSMENT 1
Introduction
Of late, marketing has drastically changed and it is one such critical element of business
administration. Donald B is a chocolate product maker and he owns two stores in Melbourne.
Donald B wants to grow his brand internationally and nationally to compete with larger rivals.
This paper requires to develop the marketing environmental analysis and it is explained the key
understanding of the possible impact of the local, national and international factors. The purpose
of this study is to find out the macro and microenvironment of the business along with
competitors' analysis. This paper focuses to identify and evaluate the principles of marketing
strategies. This study also highlights the buyer behaviour in relation to the products. The external
and internal factors are outside of the business owners’ direct control and business and marketing
strategies can be modified in order to take the advantage of the opportunities minimising the
potential threat.
1. Discussing the buyer behaviour in relation to chocolate products
Buyer behaviour is the factors associated with the using of disposal of goods, purchasing
and including consumers’ emotional, behavioural and mental responses (Badgaiyan & Verma,
2015). The core concept of the theory of reasoned action is about consumers' action on the
behaviour which is based on the intention to make or receive the particular outcome. Consumers'
only take specific action when the consumers expect a specific result and the customers retain
the ability to change their minds and they can decide on a different course of action (Mishra,
Akman & Mishra, 2014). Therefore, marketing products to the consumers; each of the marketers
can associate positive result. In case of the chocolate; the marketers are trying to put the positive
health result in consumption of the chocolates. As stated by Miner (2018), marketers of

3MKT600 MARKETING- ASSESSMENT 1
chocolate understood that long gap between initial intention and the completion of the action can
allow the customers to think about the purchasing decision. In Australia, chocolate and
confectionary industry is expecting to grow 7% by the end of 2023 as a chocolate industry in
Australia has been facing high demand of foreign chocolate and the chocolate cafe (Moorhead,
2018). The recent report clarified that almost 68% of the Australians who are aged above 15
consume chocolate based products in an average of one month. In Australia, the consumers like
to have more chocolate bars and boxed chocolates are also famous among the young generations.
Buying behaviour differs when the young generation purchases the chocolate to gift someone
and foreign chocolate brands are famous to make a presentation. As published in the report of
Pappas (2017), almost three-fourths (74%) of the Australians purchases the chocolate on average
of the fourth weeks. In Australia, four best-selling chocolates are Cadbury, Ferrero Rocher, Lindt
and Cadbury Roses. The buying behaviour of the customers differ in urban and rural sections of
Australia s 89% of the consumers purchase chocolate in open market in a rural area; on the
contrary, 67% of the urban consumers make a purchase of the chocolate in retail stores. Australia
has market value of AU$ 4100 m with 521,000 tonnes being sold (Thaichon et al., 2018).
In general, the customers purchase chocolate as chocolate-based products smell good and
taste good. As opined by Solomon et al., (2015), chocolate based products feel good in the taste
buds as it is the outcome of the brain realising chemicals which stimulate the chocolate
experience. Purchasing of the chocolate is affected by friends or near acquaintances, chocolate
brands, personal experience, price, health restrictions, nutritional values and allergic issues.
Chocolate contains a large amount of calories, chocolate consumption helps in reducing
hypertension and coronary heart disease (Jewett, 2017). In Australia, Michelle Morgan produces
the best chocolate and chocolate in Australia is imported along with high quality. The customers

4MKT600 MARKETING- ASSESSMENT 1
opt to take the internal search and it is the memory of the customers. Australians consumers also
do the external search after doing the comparison as the choices can be altered based on the
alternatives in the market.
2. Analysing the microenvironment
Public
Publics are the group of people which have real interest or impact on the organisation.
Without the public, the organisation cannot achieve the objectives. Publics can be hinder or the
help to the ability to get the message or the customers to collect the value (Young, 2015).
Financial publics directly influence the ability to gain the funding of the business. In addition,
financial publics are associated with the investment houses, banks, stockholders. Financial
publics perceive that finance can directly affect the business and Australians bank help the small
businesses to do the favourable payment. Moreover, the organisations take the help of media
publics and these publics carry the news, editorial opinions, features and advertisements. Media
publics of chocolate companies try to promote the companies through newspaper, blogs,
magazines and radio giving better option to communicate with the customers. The customers can
gently influence when the organisations have a good relationship. If the chocolate companies can
maintain good public relations; the companies can be ‘tolerable' or PR strategic in the eyes of the
customers. The government can be helpful when they keep an eye on the small companies and
government publics keep the day-to-day operation of the business.
Suppliers
The suppliers help the organisation to avail the required materials to the manufacturing of
the products. The suppliers can deliver the raw materials or suppliers can supply the labourers.

5MKT600 MARKETING- ASSESSMENT 1
The organisation can adopt the purchase policy that provides the bargaining power to the
organisation. As stated by Baker (2017), the relationship between the organisations and the
suppliers epitomises the power equation between and this equation solely depends on the
industry condition. In a chocolate industry of Australia; suppliers are the business houses as the
main suppliers are the milk powder, cocoa beans and sugar. The manufacturers of the chocolate
do ferment, roast and ground the cocoa beans, flavours and the milk chocolate (Kiseleva, 2017).
Maximum power of the Australian suppliers in the industry diminishes the organisation’s
profitability which increases the price or reduces the quality of the suppliers’ products.
Profitability of the organisation is decreased if the organisation fails to recover the raw materials
expenses. In Australia, local suppliers deliver the milk powder and the flavours to the
manufacturing plants in Australia. In addition, cocoa is produced in the tropical zone and
maximum of the Australian chocolate plants are forced to import the cocoa beans. As observed
by Beckett, Fowler & Ziegler (2017), cocoa suppliers in Australia are international players and
suppliers and Australian chocolate manufacturing firms relation is B2B. In the Australian
market; the confectionary suppliers and the wholesale chocolate suppliers are mainly Gourmet
Confectionary, Fudge Man, Belgian Delight and Rockey Road. In the supply of the chocolate
products lies concentrated on a specific group, suppliers' products are mainly differentiated;
substitute products are not available in the market (Ibisworld.com, 2018). Moreover, chocolate
manufacturing units face a justifiable threat in forwarding integration and suppliers have medium
bargaining power.
Marketing intermediaries
According to Lovelock & Patterson (2015), market intermediaries are individuals who
come to help the firms in promoting, distributing and selling the goods to the ultimate customers.

6MKT600 MARKETING- ASSESSMENT 1
Intermediaries in the chocolate company are the retailers, wholesalers, distribution agencies and
market service agencies. Therefore, most of the chocolate companies find it difficult to reach the
customers and the agents or the distributor's firms assist the organisation to reach the customers.
In the chocolate industry; cocoa buying firms are the major intermediaries between the farmers
and the chocolate companies. Marketing intermediaries focus on the role of farmers and the
customers to provide the best profit (Young, 2015). Intermediaries in the chocolate industry are
the link of the distribution process and it has a broader aspect rather than connecting the different
channel. Intermediaries in the chocolate industry can be purchasers of the chocolate;
warehousing and transportation management, grading and packaging of the goods and
intermediaries play the role of the risk bearer in business. In chocolate companies; they have
large wholesale functions and they do not have the capability to manage the distribution process
for creating the efficiencies for the retail channel partners which are very difficult to replicate.
3. Summarising the likely competitors, what they offer and target consumers
Donald B opened two stores in Melbourne and it has been operated in the chocolate
manufacturing industry. Donald B sells different types of chocolate based products, such as
cocoa products, crystal, drinking chocolate, candied popcorn, marshmallow and glazed fruits.
Substitutes
Substitutes of Donald B's chocolate stores are the chocolate outlets. Substitutes in the
market of chocolates are the cocoa powder, cacao nibs, dark chocolate, carob and dry fruits. The
customers can have the alternative of the chocolate which can be a mixture of the cocoa powder
mixed with substances of cocoa butter. Donald B has his stores in Melbourne and in Melbourne;
there are many other chocolate outlets which sell the various types of chocolate. Monsieur Truffe

7MKT600 MARKETING- ASSESSMENT 1
opens the mysterious door of chocolate for the customers in Brunswick East, Melbourne. In
Melbourne, Kakawa is one of the chocolate cafes which sell liquid chocolate. In addition, Noosa
Chocolate Factory is another local chocolate seller and Zokoko has its own cafe in Australia
which sells dark chocolate and drinking chocolate. Chocolate industry in Australia experiences
the high competition and numbers of substitutes are large in the market.
Industry rivalry
Industry rivals of Donald B's stores can be both local chocolate sellers and the
international players. International brands which sell chocolate in Australia are Arnott, Cadbury,
Nestle, Mars and Ferrer Rocher. Hershey has a large market share in Australia in chocolate
business (Crichton et al., 2016). Chocolate mainly sells in the shopping malls and in retail stores
in Australia.
Chocolate brands Strengths Target customers Offered products
Zokoko (International
brand)
This brand provides a
diversified chocolate
option
It has its own cafe
where the customers
can spend time in the
drinking of coffee
Zokoko chocolate is
available in dark and
light ranges
The middle-income
group, a
psychographic
segment who like
drinking chocolate
Tranquilidad,
Goddess Milk, Alto
Beni

8MKT600 MARKETING- ASSESSMENT 1
Ferrero Rocher
(International brand)
 Great taste
 An excellent
brand name
with high
brand loyalty
 Product
packaging is
best
 Available in
leading malls
 Famous for
gifting
Upper-class people
and young generation
Milk chocolate, wheat
flour, palm oil and
Hazelnuts
Hershey  Strong brand
name in the
Australian
market
 Diversified
product rage
 Strong public
image
 Hershey is
famous for
promoting
The middle-income
group, a behavioural
segment which has
choices to have
healthy food and
young generation
Milk chocolate,
Hershey Kisses,
Hershey’s Chocolate
Layers and Hershey
Cookies

9MKT600 MARKETING- ASSESSMENT 1
various
segments
Cadbury
(International brand)
 Cadbury has a
strong brand
recall
 Large brand
equity
 Premium
quality
 Employee
strength is
large
Young generation and
slightly higher income
group
Chocolate snowman,
boxed chocolate,
chocolate calendar,
Chocolate Santa
Barriers in the chocolate industry of Australia are low as the small chocolate companies
need small capital. Capital requirement in the opening of a chocolate company is medium and
chocolate is a profitable industry (Davies & Kitchen, 2015).
4. Analysing Macro-environment
Demographic: Australia stands 2nd in the world in the Human Development Index and in
corruption, Australia ranks 11th (Gabrielli & Baghi, 2018). In population wise, Australia ranks
53rd worldwide and the unemployment rate in Australia is 5.8% at present. Literacy rate in
Australia touched 99% and broadband uptake in Australia was 13.8% in the year 2017 (Gallo,
Antolin & Monitel, 2018). Aged generation in Australia is almost 40% of the overall population

10MKT600 MARKETING- ASSESSMENT 1
and in the chocolate industry; the age of the customers is an important factor. The male and
female ratio at birth estimate is 1.01 and in chocolate buying; both sexes have different needs in
buying of the products. Median gross household income in Australia is $80,600 in the year 2016
(Greenberg et al. 2018). The middle class and upper-middle-class people purchase chocolate an
average income of Australians make themselves able to purchase chocolate-based products.
Political: Australia is stable in politics and political scenario in Australia is peaceful
which helps the country to prosper. In Australia, there are three tiers of democratically elected
government; three tiers are the federal, local and state. In political freedom; Australia stands first
and press freedom in Australia is large (Coleman, 2016). The regulatory system in Australia is
transparent which helps to foster economic resilience.
Economic: GDP growth in Australia was 0.6% in the year 2017 and the inflation rate
was 1.8% (Manalo, Perera & Rees, 2017). In Australia, the average gross salary of the people on
weekly basis was AU$ 1,600 and GDP of Australia was 1.388 trillion in 2017 (Courvisanos et
al., 2016). Ain industries in Australia are the healthcare, financial and insurance services,
professional, construction and social assistance. Ease-of-doing business ranking of Australia is
13th in 2018 first-quarter. Import of Australia is $196 billion and major import materials are cars,
petroleum, alcohol, baked goods and chocolate-based products. Chocolate industry in Australia
got the revenue of AU$ 6 billion in the year 2017 and annual growth of Australian chocolate
industry is 0.7% (Thaichon et al., 2018). In Australia, the chocolate industry gives employment
opportunity of 11,225 employees. The chocolate industry will see strong growth as the economic
development will be smooth in coming years in Australia as Australia is expecting a stable
economy with high spending ability of the customers.

11MKT600 MARKETING- ASSESSMENT 1
Society-wide influences and cultural influences: Consumer behaviour from the
perspective of the organisation is to understand the buying tendencies of the customers. Social
factors play important role in purchasing of the chocolate as a reference group of customers has
the significant role to influence the customers to make a purchase of specific brand. Of late, the
customers of Australia like to purchase boxed chocolate for gifting. Immediate family members
have the important influence of the customers to purchase the chocolate-based products.
Disposable income of Australians is US$ 33,410 per year and young generation purchases
chocolate for the loved ones (Davies & Kitchen, 2017). Chocolate is available at any grocery
stores, convenience stores and retail stores. People purchase chocolate on regular basis or
customers can purchase chocolate for the special occasions as well. In the purchase of chocolate,
Australians follow ‘grab-and-go' culture.
Technological: In the chocolate industry; technology has brought the changes in the
manufacturing process and in the packaging process. Use of technology has been increased in the
manufacturing of the dark and liquid chocolate (Greenburg et al., 2018). The blending of the
flavour of the chocolate needs high technology which includes the pathogen tests and filing
patents. Almost 85.1% of Australians use the internet through mobile. Chocolate companies have
been using the internet and social media in order to advertise to the customers (Gabrielli &
Baghi, 2018). Chocolate manufacturers track down handcrafted chocolate from bean-to-bar
makers as it is a new wave of chocolate producers which find and blend the rarest along with
most richly flavoured cacao beans.

12MKT600 MARKETING- ASSESSMENT 1
Conclusions
It has been noticed that marketing environmental analysis has made a vivid scenario that
Australia has an opportunity in the chocolate industry. Macro and Microenvironmental analysis
is the key to make out the possible impact of the national and international factors in the
industry. The chocolate industry is expecting to see the growth as consumers' preferences have
been changing. 68% of the total population in Australia aged over 14 consume the chocolate-
based products. Australians like to have chocolate-based products infrequent basis and
Australians give boxed chocolate to the near ones. Both local and international brands are
available with their products in Australia. The behaviour of the customers is getting changed due
to the health conscious. However, demographic and economic conditions of the confectionary
and chocolate companies have the opportunity to grow in the Australian market.

13MKT600 MARKETING- ASSESSMENT 1
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