Market Expansion and Development of Donald B in Japanese Market

The paper outlines the market expansion and development of Donald B in the Japanese market. It includes buyer behavior, micro and macro environment analysis, competitors' summary, and Porter's five forces analysis.

Running head: Marketing

Marketing
Executive summary
Market expansion and development is essential to uplift profitability and revenue in the global
market. The paper outlines that how Donald B expand its business in Japanese market. Donald B
is a chocolate producer that provides chocolate in Australian market. Now it wants to enter into
the Japanese market to struggle with rivals internationally. Marketing research and survey is
done by the company to implement the business in the new market. For this purpose, Pestle
analysis and porter five forces analysis are conducted by Donald B. A brief information about
competitors has been drawn in the task. It further discusses that how buyer behavior impacts on
the market share and sale of Donald B.
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Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Behavior of buyers in relation to chocolate products...................................................................................4
Analyze the micro environment...................................................................................................................5
Summarize the competitors.........................................................................................................................6
Porter five forces analysis............................................................................................................................7
Macro environment for Donald B................................................................................................................8
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11
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Introduction
The main object of this study is to discuss the new market entry of Donald B. Donald B is
a chocolate maker who is well known for tasty chocolate in Australia. The company has decided
to expand its business functions and activities in Japan for aiming to earn more profit in the
competitive market. The country uses innovative and advanced technology and resources, thus
Donald B can get ample of benefits internationally. Along with this, the paper outlines buyer
behavior, micro environment and macro environment to struggle with rivalries in the Japanese
market. Here is the information about various competitors who may affect the targets and
revenue of Donald B in such market.
Donald B is a chocolate product maker who is offering chocolates in the Australia. It has
two stores in Melbourne which are working to maximize and enhance the profitability of the
business. Donald B wants to grow and expand its brand internationally and nationally and strive
with larger rivals producing cocoa product, drinking chocolate, confectionery, candied nut and
candied popcorn etc.
Behavior of buyers in relation to chocolate products
It is stated that buyer behavior is needed to expand and explore the chocolate products in
the Japanese market. Further, it also helps in making effective decisions in the foreign market.
There are enormous component that may influence the behavior and income level of the
customers globally. Some of the factors that may put direct impact on the buying behavior have
been discussed below.
Perception and attitude of customers: The perception, preferences, and tastes of the Japanese
can affect the sale and revenue of Donald B in the country. Consumers in Japan value brand
information, delivery, service, advertising and packaging as significant elements in assessing
taste and quality of chocolates and in making purchase decisions globally (Santandertradeportal,
2018).
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Trends: The trends of Japanese market put direct impact on the sale and revenue of Donald B in
such market. In Japan, various companies are also introducing chocolates in various flavor and
sizes to attract and retain the consumers globally. Donald B wants to introduce the chocolate in
such market, is expected to drive the market where consumers are more price sensitive. The
market trends and quality of the products would affect the buying behavior of the consumer in
the Japanese market (Rahbar & Abdul Wahid, 2011).
Product selection: It is noted that consumer chooses the products after focusing and analyzing
the tastes and quality of chocolates. Product selection is one of the significant factors that need to
be considered while analyzing the behavior of the consumers (Mordorintelligence, 2018).
Purchase timing and amount: It has been reported that Japanese prefer to purchase more
chocolates on festivals and occasion like Christmas, birthday and Easter. Therefore, the needs
and expectations of the Japanese are identified by the company while functioning and
implementing business activities in Japan. Along with this, income level of the Japanese also
would be evaluated and identified to increase sale and market share in such market (Solomon,
Dahl, White, Zaichkowsky & Polegato, 2014).
Dealer’s preferences and choice: It is stated that buyers prefer to buy the chocolate products
from the trustworthy and reliable dealers to ensure that they get the right and delicious
chocolates on right time. Without analyzing the choices of the dealers, the company cannot uplift
profitability in the Japanese market (Mohan, Sivakumaran & Sharma, 2013).
Socio-economic level: It is studied that socio-economic factors may affect buying behavior of
the consumer internationally. Thus, Donald B needs to focus on the socio-economic factors to
compete with rivalries in the Japanese market. It will also help to make a dynamic and strong
image in the minds of the customers (Mordorintelligence, 2018).
Analyze the micro environment
The micro environment of Donald B includes the following:
Suppliers: The suppliers play a significant and vital role in expanding and exploring the
business internationally. Suppliers provide the raw material, unfinished goods, resources, and
labor to the firm to manufacture chocolate products in the Japanese market. The effectiveness
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and efficiency of the suppliers determine and analyze the success and growth of the firm in terms
of producing chocolate products. The suppliers of Donald B in Japan can be categorized into two
parts such as material suppliers and labor suppliers. Labor suppliers handle and manage the
quantity of labor and reduce the company from the shortage of labor. On the other hand, material
suppliers manage and handle the material needed by Donald B in order to produce the finished
product for sale in the competitive market (Ducki, Miralles-Garcia, Zumbé, Tornero & Storey,
2008).
Market intermediaries: The market intermediaries of Donald B further help to advertise
allocate and sell its products to the end customers in Japanese market. The market service
department of Donald B supports in the promotion and encouragement of the chocolate products
and acts as a communication channel between the customers and firm as well. The other
intermediaries such as banks support to offer funds to the firm and play a vital role in the
continuity of the business in the Japanese market (Copetti, Iamanaka, Pitt & Taniwaki, 2014).
Public and customers: The customers and publics are essential to grow and survive business in
Japanese market. The immediate customers of the firm provide the chocolate products to the
customers at suitable prices and reasonable profit. Donald B needs to focus on the customers and
publics to make a bright brand image in the minds of end use customers.
Summarize the competitors
The main competitors of the firm include Meiji milk chocolate bar, Meiji almond
chocolates & Macadamia Chocolates Company, Meltykiss chocolates, Glico champagne series,
Men’s pocky & heartful pocky, Carre de chocolat cacao 70 and chocoball grande. These
competitiors may influence the progress and success of Donald B in the Japanese market. Meiji
milk chocolate bar is one of the biggest chocolate brands in Japan to attract and retain maximum
number of customers internationally. Meiji milk chocolate bars are categorized into grids of 12-
15 squares, making them so easy to exchange with loved friends and other persons (International
cocoa organization, 2018). This brand can impact on the functions and activities of Donald B in
Japanese market. On the other hand, Meiji almond chocolates & Macadamia Chocolate brand
further helping in making a strong and dynamic image in the Japanese market (Japaninfo, 2015).
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The main target market of the firm is kids who are between the age group 7-15 years because
they like chocolates in a large extent.
Along with this, Meltykiss chocolates melt in the people’s mouth. These cocoa powdered
cubes and wafers hide exquisite fillings within rum raisin, brandy and strawberry. Most of the
people in Japan like this chocolate because it is available in Japanese market in various flavors. It
is noted that Glico’s champagne series is a cooperation and collaboration with the award winning
Japanese pastry chef Hironobu Tsujiguchi and adds a touch of refinement to three of Glico’s
most well known and famous treats such as Caplico, Pocky and Premio. The Champagne pocky
is available in various flavors like sparkling wine and Glico’s original pocky. Moreover, Men’s
pocky and heartful pocky may be enjoyed by everyone with a sweet and dynamic tooth
(International cocoa organization, 2018). This chocolate is not available in various flavors in the
Japanese market. Kitkat Moleson is one of the biggest and empirical chocolate brands in the
Japanese market. If people eat this chocolate then they are able to take experience of three
combinations such as sour, crunchy and sweet in the international market (International cocoa
organization, 2018). The competitors are targeting the kids and youngsters who like to eat
chocolates for taste. Along with this, the companies also target those people who buy chocolates
on some special events, occasion, and festival.
Porter five forces analysis
It is elucidated that Donald B uses porter five forces analysis in order to make a unique
and effective image or goodwill in the minds of the customers. The porter five forces analysis for
Donald B has been discussed below.
Entry of competitors: It is one of the biggest threats for Donald B while entering into the new
market. The company has to deal with various rivalries in the Japanese market. The major
competitiors including Meltykiss chocolates and Kitkat Moleson will affect the plans and
policies of Donald B in the foreign market. These competitors are producing unique and
attractive chocolate products in the Japanese market. Therefore, the company needs to focus on
the plans, policies, products and strategies of the competitors while implementing the producing
chocolate products in the Japanese market.
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Threat of substitutes: The primary and significant threat of substitute of chocolate products is
retail and supermarket own products which can also hamper the brand image and goodwill of
Donald B in the Japanese market. The company needs to make unique and tasty chocolate in
such market to distinguish its products from the rivalries.
Bargaining power of buyers: It is stated that bargaining power is high and unique in the hand of
buyers globally. The price of the chocolate products is not much high for the Japanese but
increased number of competitors who render similar products at reasonable prices could be
destroy the financial position and image in the minds of the customers. Thus, the price needs to
be considered by the company while producing chocolate in the Japanese market.
Bargaining power of suppliers: It has been found that bargaining power is large in the hands of
the suppliers (Brinkman, Navarro & Harper, 2014).
Bargaining power of suppliers: It is noted that the bargaining power is high in the hands of the
suppliers. There is high and stiff competition in the global market but raw material such as milk,
flour, cocoa, nuts and some other ingredients are enough to satisfy the needs and requirements of
the business and customers as well. Along with this, economies of scale are used and raw
material and others resources are purchased to produce chocolate products internationally.
Competition among the existing rivalries: There are enormous competitors who are producing
same products as well Donald B. The competitors may affect the profitability and success of
Donald b adversely. The company needs to develop new range of chocolate products in the
Japanese market for gaining competitive benefits (Beckett, 2011).
Macro environment for Donald B
The macro environmental elements influence the survival and growth of the firm. It is
stated that macro environment factors may affect the targets and productivity of Donald B in the
Japanese market. The macro environment factors cannot be controlled and managed by the
company effectively and efficiently (Rothaermel, 2015).The firm needs to make unique and
innovative strategies and policies to analyze and evaluate the external factors internationally.
Pestle analysis is one of the significant tools or methods that can be used by the Donald B that
have been discussed below.
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Political: The political trends may affect fast food consumption like varying parameter food
activities and food standards. The political factors including labor laws, tax policy, political
stability, environmental law and trade restrictions. It is noted that the government of Japan is
stable and strong thus, the stability of government may impact on the chocolate products in the
country . The political components also include products and service which the government
wants to offer or be rendered and those that the government does not want to be delivered. Aside
this, government has great impact on the chocolate products because these products help in
satisfying the needs and expectations of the customers internationally (Usui, 2014).
Economic factors: The economic elements include interest rates, exchange rates, economic
growth, and inflation rate. It is noted tthat Japan is the 3rd biggest economy across the globe with
a total GDP of $4.9 trillion as of November 2017 (Rahman, 2018). Thus, it can affect the sale
and profitability of chocolate products in the Japanese market. Along with this, if Donald B
expands business in Japan then it needs to pay tax on the income they create in the country.
Apart from this, interest rate also may affect Donald B cost of capital and thus to what extent a
company grows and explores business internationally. Exchange rates also affect the supply and
prices of chocolate products in the Japanese market. The fluctuating budget of the customers and
their expectations also may affect the growth and revenue of Donald B. Apart from this, rising
prices of raw material goods or products in relation to the demands and needs of source have
economic impact on the suppliers. The company shall focus on the economic factors to provide
chocolate products to the Japanese at reasonable prices (Porter, 2011).
Socio-cultural factors: The social elements include the cultural attributes as it also includes
growth rate, age, career attitudes and population of the country. It is stated that cultural factors
and trends vary as gluten free food and dairy products are becoming popular in the market. The
Japanese people give more significance to such chocolate products in the marketplace. The
chocolate products which are harmful to community must be prevented like food containing
more sugar and fat. Apart from this, there is a pressure to reduce and eliminate these food
products from the stores. In Japan, there is a trend of packed food items and box chocolates
which help in maintaining a corporate culture in the country. Donald B needs to focus on the
socio-cultural factors to struggle with rivalries internationally (Kimura, Mukawa, Yamamoto,
Masuda, Yuasa, Goto & Wada, 2012).
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Technological factors: It is analyzed that Japan is one of the biggest and most advanced
technologically countries across the world. It is measured that Japanese are famous in seeking
out learning to utilize modern and innovative technologies (Shin, 2013). It has been pushing
technological innovation in an effective way that many countries would struggle and compete to
emulate. Japan’s innovation could be found in a variety of fields internationally. Without
innovative and advanced technology, Donald B cannot carry on its packaging activities and
business in the Japanese market. The country uses e-commerce platform for expansion and
development globally. It is stated that the company should focus on the biodegradable wrappers
in the Japanese market (Kew & Stredwick, 2017).
Natural trends: The natural trends such as healthy, premium and flavors drive the chocolate and
food industry globally. The natural trends could impact on the prices and features of chocolate
products globally.
Demographic factors: It has been found from the various studies that demographic elements in
the Japan more like to put direct and significant impact on the fast food and chocolate
consumption (Grunert & Traill, 2012). The income level, choices, demands and interest of the
customers also affect the profit margin and growth rate of Donald B in the country (Jung, Chan-
Olmsted, Park & Kim, 2012).
Conclusion
On the above mentioned study it is concluded that Donald B can grow and survive its
business in Japanese market by analyzing and identifying the challenges, risks and issues of the
market. Donald B is trying to explore and flourish the business in Japan to stand out against the
rivalries internationally. Buyer behavior is one of the significant aspects that help in maximizing
the sale of chocolate products in such market. In addition, micro and macro environment are
analyzed and identified by the company before entering into the new market. It is evaluated from
the above mentioned study that the company needs to differentiate its products from the
competitors by using innovative strategies, policies and plans.
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References
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