Donald B's Marketing Strategy Analysis

This assignment analyzes the marketing strategies employed by a company named Donald B. It examines the company's direct and indirect competitors, highlighting the adverse impact they have on business behavior. The analysis also emphasizes the need to enhance Donald B's distribution channels to reach a wider customer base. Furthermore, it focuses on implementing effective processes that can create greater market opportunities for the company.

Marketing

Table of Contents
INTRODUCTION ..........................................................................................................................3
Background .....................................................................................................................................3
Macro environmental factors...........................................................................................................4
Micro-environmental factors...........................................................................................................6
Direct & Indirect Competitors.........................................................................................................8
Consumer behaviour ......................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Marketing is the continuous process in the business environment. Marketing is the
essential element for the business organization which provides product and services to the end
users. Marketing activity is associated with buying and selling of product and services. The most
essential and required element tool is advertising, packaging, design, celebrity endorsement and
general media exposure. Present report based on marketing environment analysis. Further, it will
discuss about the external environment which affects company marketing activities. For present
report Donald B company has been taken into action, it is the Chocolate manufacturing company
in Australia. The main objective of the company is to grow the market brand among the
competitors. On the other hand, report will closely focus on the macro and micro factors which
influence the business or marketing activities. It will discuss about the consumer behaviour
towards the product and services. It will also explain some market importance in order to grow
the brand image.
Background
Chocolates is the most lovable and sweet thing which removes sadness and bring smile
on the faces (Chocolate Market, 2018). Marketing of chocolates only needs creative ideas and
innovation in the marketing tools. This helps to take the market opportunities and growth.
Chocolates is one of the most profitable business for confectionery industry globally. The
chocolate market registered itself a value of US$ XX in 2016. It is one of the best boosting
industry which earn effective profit and market share. Moreover, chocolate is loved by everyone
and its demand has been increasing every day. At the time of developing industry chocolates
industry is the most trendy and demanding industry. Due to antioxidants enrichment, blood
pressure character and supposedly anti aging properties chocolates demand will increase the
demand. It has been proved that chocolates is the necessary consumption which helps to reduce
the stress or anxiety. Due to this reason demand of the chocolates has increasing more rapidly.
Chocolates market trend
Chocolate confectionery grew 4% on current value terms in 2017, faster that the 3%
growth in 2016. Chocolate global trend is highly popular and most wanted. Nowadays, chocolate
is the most trendy and popular gift among people in Australia which will strongly favourite over
the future trend (Babin & Zikmund, (2015). On the other hand the most wanting and lucrative
growth is in handmade chocolates which is signature chocolate based products. Along with that,

chocolate market trend is the most profitable brand which grow company profit market. Along
with that, this is the most trending and required industry. Along with that another product which
influenced by the chocolates are chocolates drinks, fudge, mouses, rolls, chocolate sandwich.
These are the products which grab the attention chocolate industry (Brown, (2016).
Chocolates market: segment analysis
Chocolates market segmentation ion the Australia. Is the another market which grab the
attention of consumers. Chocolate market segmented on the basis of type and sale frequency. On
the other hand it is the most challenging market situation which grab the consumer attraction and
help company to enhance the brand image. On the basis of market segmentation chocolate has
been segment in forms of milk chocolate, dark chocolate and white chocolate on the other hand it
also helps to grab the more attentive impression of customers. As per the best market segment is
milk which gives higher market share in 2013. In according to research it has been cleared that
chocolate market frequency of sale is very higher, premium, chocolate and seasonable chocolates
(Chocolate Market, 2018). Affordable prices is the major segment of the chocolate market. The
major key players in the chocolate industry is Nestle, Fererro rousher, Hershey Foods
corporation, Mondelez international etc.
Moreover, it has been cleared that chocolate industry plays a very cruciate role in the
growth of chocolate companies in Australia. It is the all time favourite product for the people
which removes harshness and give sweetness in the world (Chaffey & Ellis-Chadwick, (2016).
Consumption of chocolates are increasing day by day and earn maximum level of profit revenue
Along with that, Donald B has to make effective marketing strategies in order to grab the
attraction of customers.
Macro environmental factors
Macro environment is the part of business external environment which influence the
industry of an organization decision making process. Macro factors are the external factors
which are dynamic in nature. They keep on changes as per the market situations. Chocolate
market is the leading market which grab the attention of the customers. There are the most
wanting and effective market attraction. Macro environment includes political, legal, social,
environmental, technological and economical driver forces which affects the overall industry and
company environment. There are the description of effecting consumer chocolate market which
influenced by the macro factors (Gronroos, (2016).

Political factors: in order to enhance the product brand Donald B business needs to
adopt all political changing factors in order to maintain the stability growth. This factor influence
by the government changes which affects the market position and pricing policies of the
industry. It is the trending and affecting factor. Consumer affects this factor by increasing the
product prices and paying more taxes.
Economical factor: it is the another significant factor of macro environment which
highly influenced by the changes rates in taxes, charges fees, inflation and deflation. In which
consumer has to face challenges selecting the product and services. In this factor may change the
consumer taste and preferences which affect the business environment and overall industry.
Economic factors affect the company position and strategies (Hair Jr & Lukas, (2014). Along
with that, economic factors affect the company prices and the product strategies of the company.
The main objective of the Donald B to enhance the brand image in the market. Company should
measure the all changes and make strategies on the basis of changes environment. These factors
also impact on the consumer selection process.
Social factor: Social factor influence by the society changes, needs, wants, taste and preference
etc. some customers avoid high dark chocolate and strict avoid alcohol etc. these factors which
affects chocolate market which affects company sales and revenue. On the other side, consumer
highly affected by the social factors the main objective of the company is to attract the customer
attraction. Along with that, company should adopt social changes factors which helps them to
stay connected with the customers. This factor helps to identify the customer needs and wants.
Technological factor: Technological factor is the most required and dynamic factor in
the market. This factor helps to reduce the cost of the company and give effective returns and
outcomes (Kotler, (2015). Technological factors changed the strategies and market attraction.
Along with that, technological factors affect chocolate market by recent use of new technology
pathogen system and filling patents for heat resistant chocolates. This factor of macro
environment helps company to adopt the latest technologies to grab the attraction of customer.
Customer always attract from those products which having some different features and unique
selling technique. Which helps company to enhance the company sales. Donald B brand need to
adopt attractive concept and marketing activity to reduce the operating cost and attract more
sales revenue. It is the most promising and challenging factor which influence consumer
selection process (Lusch & Vargo, (2014).

Legal factor: Legal factors is the another influential factor which impact on the overall
industry or company organisation. In order to adopt the legal factors company needs to introduce
legal laws in their policies to ensure the safe and secure environment. It is also very effective for
securing intellectual property of the company. This gives the law guidance for secure
environment. In order to maintain the good relation with government and grab market attraction
brand needs to adopt all legal implication. This factor affects company or industry by not
following the legal environment (McDonald & Wilson, (2016).
Environmental factor: this is the last affecting factor which includes the overall market
behaviour environment is included. It influences market conditions and consumer behaviour. In
this factor customer influence by other competitors products and services. This is the another
opportunity growth for the company to adopt healthy and safe environment.
Micro-environmental factors
Micro factors are the internal and external factors which affects the company profit and
revenue. This is the highly influenced factor of the company which makes the healthy and
unhealthy atmosphere. In which company determined its actual performance and strength&
weaknesses. Besides, brand also analysing opportunity and threat in the business environment
which affects company environment (Menon & et.al., (2015). Chocolate industry is highly
competitive. Generally Customer focus on the quality of products. There are many companies or
big brands which mainly focus on the quality. In order to grab the customer focus Donald B
needs to generate new idea and quality to attract the consumer focus. These factors affect the
industry or an organisation. In order to analyse the micro environment, there is one best tool for
analysing that is Porters five forces which helps to determine internal factors. It also helps to
make the company business strategy.
Porter's five forces
Threat of new entrants: it is the threat of the company which affects company internal
environment. It is the highly influential factor which affects company environment and policies.
If market is restricted and limited resources so its become very difficult for the company
environment and policies. Chocolate industry facing the threat of new entrants and for new
technology development which affects their existing services or products. Such as Nestle, Cad
bury, Hershey, Ferero etc (Mullin, Hardy & Sutton, (2014). threat to the company is new
company may give better high prime services or product to the customers which attracts towards

them. It become very big challenges for the existing companies to maintain its position in the
market. Some low market condition companies left from the market which is not much capable
to carry its business or some of them are stronger who compete with the other competitors. In
order to make the brand image in the market Donald B needs to generate some effective market
technique to grab the customer attention and increase the market challenge (Scott, (2015). On
other hand, it is very necessary for the company to make changes in the business environment to
maintain their stability in the market.
Threats of substitute goods
There is a huge competition in confectionery chocolate industry which affects the
company business environment and growth. Chocolate has many substitute products which
having different quality, Flavour and brand name. It is the most effecting and challenging market
position in order to grab the market attraction. Customer always looking for attractive quality
and lovable taste in terms of chocolates. As soon as product go older customer start giving less
interest towards them which affects company environment and growth. In this situation company
needs to face challenging situations (Sheth & Sisodia, (2015). Donald B tremendously growing
its services and product in order to stable in the market. It also very challenging and competitive
to grab opportunity.
Bargaining power of suppliers
Bargaining power of suppliers is the most important micro factors which impact on the
business activities. In order to reduce the powerful impact company needs to maintain the good
and healthy relation with the suppliers in order to get the discount and reduction on the raw
material. With the help of good relation with the supplier company also get benefit from the
supplier is to get the best quality of raw material. Along with that, company also need to take
care of good quality of product ad services (Strauss, (2016). Along with that, supplier is the main
factor of production which influence the market factors and give adverse impact on the business
environment. It is very influential factor which affects the company atmosphere
Competitive rivalry within the industry
Competitors are the most influencing and important factors to be considered. Along with
that, in order to maintained better performance and effective future company needs to adopt
effective strategies in order to make the effective market position. Chocolate industry is highly
competitive and challenging. Many new entries have come with the new motive and target which

makes market more competitive and challenging. In order to reduce the negative impact, existing
company needs to adopt attractive marketing technologies in order to grab the customer
attraction (Strauss, (2016).
On the basis of porters five forces model company can easily makes effective
environment and growth according to the market conditions. Donald needs to grab the new
product strategy in order to stable in the chocolate industry and earn effective market
opportunity. Along with that, market is the essential market position which gives effective
position to the target customers.
Direct & Indirect Competitors
Direct or indirect competitors are the main rival companies which affects the company or
confectioneries (Wilson & et.al., (2016). Direct competitors are the those competitors which
directly influence the company environment. Confectioneries are those business which opened at
small scale. Along with that, it is the most effective task ion order to reduce the negative effects
on the business. Donald B is the chocolate maker who makes chocolate by hand, another main
direct competitors of the Donald B is British sweet & treats, Melba's chocolates, Kinnerton
confectionery Australia pvt Ltd. They all are the main competitors of Donald B. Moreover,
Donald B is the hand maker chocolate store which provides their chocolate to some store or
retailers. The focus of the store is to get the customer attraction towards the company products.
Moreover, Donald B adopts distribution channel and provides to the Melbourne CBD, to
chadstone shopping stores. In order to compete with competitors Donald B needs to adopt
attractive channel of distribution. Along with moreover,
Direct competitors
British sweets & treats: it is the online specialising British sweet, confectionery, chocolate,
crisp gourmet grocery and hampers (Lusch & Vargo, (2014). They deliver the order to the
retailers and to the other grocery stores online. They also provide their products to the online
market. It is the first direct competitor of Donald B which affects company atmosphere.
Melba's chocolates: It is the another direct competitor of the Donald B store.
On the basis of direct competitors they impact on the store profit. On the other hand
another changes of the indirect competitors which impact on the hand made chcolates are Nestle,
Cad bury, Hershey etc. these big brands impact indirectly on the nature of Donald B.

Consumer behaviour
Consumer behaviour is the study of individual, group or organisations. All the process of
consumer behaviour is related to the purchasing process which impact on the sales process.
Consumer is very rational in nature. They attract towards those products which are very
attractive or available at low prices (Strauss, (2016). On the other hand, consumer behaviour is
dynamic and changeable according to the market and current trends. Consumer behaviour is
always depends on the new technologies and trendy products. They always looking for an
effective and innovative things. Donald B needs to focus on the current needs and wants of the
customers in order to estimate the sales. It is the another main concern of the Donald B to attract
the large number of customers. They need to enhance the distribution channel to provide
chocolates in wider term. Consumer is the major factor of production which influence the
company functions. Understanding of consumer behaviour is very important to determine the
needs and wants. Like Donald B made chocolates on the demand of customers. They make
chocolates as per the needs of customers. Donald B is the most favourable store which provides
healthy chocolates which is made by hands provide to the customers (Kotler, (2015). It is the big
opportunity for the company to adopt effective growth management. Consumer behaviour is
complex because of different behaviour consumer needs and preference, each customer is
different from others. They make demand according to their own needs and wants. Along with
that, customer purchasing process is also different from others. Some customers focused
moreover the main objective of the customer is to select the best quality of products on the basis
of analysing the different factors such as price, quality, feature. Along with that, another main
objective of the customer is to track the good company make it favourite. It is necessary for
Donald B very important for the small traders to know the current trend of customers. Along
with that, it is necessary to understand the consumer purchasing process. Every customer first
choose the healthy and qualitative product among other alternatives after analysing of all factors.
On the other side, moreover the main purpose of the customer is to consume the best effective.
Costumer behaviour is the main function of the company which is connected customer top
company. On the other side, it is very required for all the organisation to identify the competitors
pricing and policies in order to track the customer focus or trade. The main focus of the
organisation to attract customer attention by giving them effective product and services. Besides,
grow brand name for brand recognition (Lusch & Vargo, (2014). Make product unique and

different from alternatives. This is the effective process to understand the consumer behaviour.
Consumer behaviour is depended on the market trend and alternatives of products (Lusch &
Vargo, (2014).
CONCLUSION
From the above section, it can be concluded that marketing is the essential source to
finding the customer needs and wants. It is the continuous process of the company in order to
connect with the customers. Present report was based on the marketing environment of Donald B
which is a small concessionary store or retailer of chocolate which provides handmade chocolate
in Melbourne Australia. It also discussed about the macro and micro factors and their influential
factors which impact on the business activities. On the other hand it also explained the direct and
indirect competitors of Donald B which creates adverse impact on the business behaviour. Along
with that, Donald B needs to enhance the distribution channel in order to enhance the customer
reach. It will also focus on the effective process which provides greater market opportunity.

REFERENCES
Books and Journals
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction.
Pearson Education.
Babin, B. J., & Zikmund, W. G. (2015). Exploring marketing research. Cengage Learning.
Brown, S. (2016). Postmodern marketing: dead and buried or alive and kicking?. In The
marketing book (pp. 43-58). Routledge.
Chaffey, D., & Ellis-Chadwick, F. (2016). Digital marketing. Prentice Hall.
Gronroos, C. (2016). Service Management and Marketing: Managing the Service Profit Logic.
John Wiley & Sons.
Hair Jr, J. F., & Lukas, B. (2014). Marketing research (Vol. 2). McGraw-Hill Education
Australia.
Kotler, P. (2015). Framework for marketing management. Pearson Education India.
Lusch, R. F., & Vargo, S. L. (2014). The service-dominant logic of marketing: Dialog, debate,
and directions. Routledge.
McDonald, M., & Wilson, H. (2016). Marketing Plans: How to prepare them, how to profit from
them. John Wiley & Sons.
Menon, A. & et.al., (2015). Effective Marketing Strategy-Making: Antecedents and
Consequences. In Proceedings of the 1997 Academy of Marketing Science (AMS) Annual
Conference (pp. 224-224). Springer, Cham.
Mullin, B. J., Hardy, S., & Sutton, W. (2014). Sport Marketing 4th Edition. Human Kinetics.
Scott, D. M. (2015). The new rules of marketing and PR: How to use social media, online video,
mobile applications, blogs, news releases, and viral marketing to reach buyers directly.
John Wiley & Sons.
Sheth, J. N., & Sisodia, R. S. (2015). Does marketing need reform?: Fresh perspectives on the
future. Routledge.
Strauss, J. (2016). E-marketing. Routledge.

Wilson, A. & et.al., (2016). Services marketing: Integrating customer focus across the firm.
McGraw Hill.
Online
Chocolate Market, 2018. [Online]. Available through:
<https://www.persistencemarketresearch.com/market-research/chocolate-market.asp>.