Market Environment Analysis for Donald B's Chocolate Products

RUNNING HEAD: Marketing 0
Marketing

Marketing 1
Contents
Introduction...........................................................................................................................................2
The behaviour of buyers in relation to chocolate products....................................................................2
Micro environment................................................................................................................................3
Likely competitors, what they offer and who they seem to target..........................................................5
Macro environment...............................................................................................................................7
Conclusion.............................................................................................................................................8
References.............................................................................................................................................9

Marketing 2
Introduction
Donald B is a product maker of chocolates. The company is having two stores in Melbourne.
Now the company is planning to grow it’s business on national and international level. The
Company has to compete with rivals producing chocolate related products such as cocoa
products, drinking chocolate, marshmallow, liquorice, confectionary, glazed fruit and candied
popcorn. The company has considered various supermarket options for selling such as Aldi
options, Coles, Woolworths and speciality stores. In this report, a market environment
analysis is developed which describes micro environment and macro environment of
Melbourne. It is going to help in understanding possible impact of external local, national and
international factors on the business. These factors are outside control of business but these
cam be modified by taking advantage of opportunities presented. It can effectively minimize
potential threats.
The behaviour of buyers in relation to chocolate products
The behaviour of buyers in relation to chocolate products explores the process that drives
humans to make purchase decisions. There are various factors which affect behaviour of
buyers such as cultural, personal and social (Lancaster & Massingham, 2017). The personal
factor includes the income. The cultural difference comes under cultural factors. The social
factor includes the influence by others. The buyer behaviour includes:
Product choice: The consumers like to choose from the wide range of chocolate products
because it is the matter of taste and enjoyment. For instance, chocolate bars, chocolate
candies, cocoa products, liquorice, confectionary, glazed fruit, drinking chocolate,
marshmallow and candied popcorn.
Brand choice: Now a day’s people are more concerned with the brand as it provides the
quality satisfaction. Major brands available in Melbourne are, Cadbury, lindt and Ferrero
Rocher.
Purchase timing: People prefer to buy more in the festive season such as Christmas and
Easter and birthdays (Thaichon, Jebarajakirthy, Tatuu & Gajbhiyeb, 2018).
Purchase amount: It depends upon capacity and willingness of users that how much they like
to spend on enjoyment by such products.

Marketing 3
Dealer’s choice: The buyers like to buy chocolates from the reliable dealers to sure that they
get the right product on right time. The supermarkets are Melbourne’s favourite place to
purchase chocolate products such as Coles, Woolworths and more.
Micro environment
The micro environment of Melbourne can be defined by SWOT analysis. The SWOT
analysis can be defined under evaluating strength, weakness, opportunity and threat of the
company:
Strength
Reputation: The company has built reputation by providing the best and reliable products
such as cocoa products, drinking chocolate, marshmallow, liquorice, confectionary, glazed
fruit and candied popcorn. The reputation of company is strength for the company.
Research and development department: Donald B has research and development department
for the improvement of products and services. It conducts research for the expansion of
products.
Strong culture value: The company has strong cultural value due to it’s combined approach to
business and commitment to the stakeholders. The position of company is also supported by
the quality leadership, customer satisfaction and sustainability (Ingaldi & Škůrková, 2014).
Customer’s positive perception: The customers have positive perception about the products
of Donald B. The company has well established market with huge variety of products. The
trust and loyalty of customers highlight the capability of company.
Weakness
Lack of nutrition value: The company faced criticism due to lack of nutrition values. The
government initiatives for healthy eating reviewed various products of company to upkeep
mission of good food and good life (Scrinis, 2016).
International standards: The international standards demand a requirement of standardisation.
It has to be well-adjusted with the strategic need of company for the amendment of diverse
cultural environments.