Market Strategy Report

This market strategy analysis report discusses the target market segmentation, market positioning, and marketing mix of a confectionary company run by Donald B. in Melbourne, Australia. It provides insights into the current market trends and opportunities for the company to increase its sales and profit.

Running head: MARKET STRATEGY REPORT
MARKET STRATEGY REPORT
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Author Note

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Executive Summary
The respective paper is a market strategy analysis report of a confectionary company run by
Donald B. in Melbourne, Australia. Donald B. is a chocolate product manufacturer and his
company mainly sells confectionary items that are chocolate based, mainly cakes, cookies and
chocolate beverages and other chocolate desert items such as marsh mellow. In the market
strategy report, target market including segmentation of the variables, the position of the
company in the market is analyzed with an overview of different market positioning theories and
explaining one positioning approach that can be utilized by the company to increase its sale and
profit.

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Table of Contents
Executive Summary.....................................................................................................................................1
Introduction.................................................................................................................................................3
Discussion...................................................................................................................................................3
Product Analysis and Market Position.........................................................................................................4
Market Analysis..........................................................................................................................................5
Industry Size............................................................................................................................................5
Industry Trends........................................................................................................................................5
Industry Growth......................................................................................................................................6
Uniqueness of the Products.........................................................................................................................6
Market Segmentation of the Company....................................................................................................8
Market Positioning....................................................................................................................................10
Marketing Mix of the Company............................................................................................................12
Recommendation.......................................................................................................................................13
Conclusion.................................................................................................................................................14

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Introduction
The respective paper is a market strategy analysis report of a confectionary company run
by Donald B. in Melbourne, Australia. Donald B. is a chocolate product manufacturer and his
company mainly sells confectionary items that are chocolate based, mainly cakes, cookies and
chocolate beverages and other chocolate desert items such as marsh mellow. Donald B. also has
certain plans to increase his sales by selling his products through large supermarkets of Australia
such as Coles and Woolworth. Donald B. is ready to compete with his peers inside the nation as
well as in an international and transnational basis. In the market strategy report, target market
including segmentation of the variables, the position of the company in the market is analyzed
with an overview of different market positioning theories and explaining one positioning
approach that can be utilized by the company to increase its sale and profit. The respective
market strategy report would be an introduction and discussion of various market strategy and
positioning theories and recommendations for the most desirable approaches that can be taken by
the respective company to enhance and develop itself.
Discussion
Market strategy or strategic market planning is a continuous process by which the
management experts of a company frames market strategies and implements them for and in the
target market which the company has the aims to cater to (Piercy, 2012). The strategic market
planning observes the position of the respective company in the market and thereby identifies
and recognizes the promotional as well as developmental opportunities of the company and
evaluates the opportunities thereafter (Piercy, 2016). Before beginning with the strategic market

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planning, first of all, the product analysis and the current position of the company in the local as
well as the national market of Australia has to be taken into account hereafter.
Product Analysis and Market Position
The respective company is a confectionary company which sells baked chocolate
confectionaries, beverages and other dessert products such as marsh mellows. The consumption
of chocolates in Australia has been unprecedentedly increasing day by day among the common
public (Abs.gov.au., 2019). It is estimated that chocolate market in Australia stood almost $ 2.9
billion in 2017 and has been estimated to increase more than $ 4.3 billion in 2023. With the
growing demand of organic chocolate products among the Australians, the future of the company
of Donald B. has been filled with a massive prospect to grow and increase its business and earn a
huge amount of profit, however, with a fierce competition from its peers at local as well as
national level.

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Market Analysis
Industry Size
In the terms of value, the confectionery industry of Australia is estimated to be around $
555 million with an annual growth rate of 1.6% where the employment rate is nearly 1,214 with
almost more than 33 businesses across the nation. The confectionery industry of Australia has
relatively shown high market share concentration bringing almost three quarters of revenue of
the nation in the year 2018-19.
Industry Trends
Consumption of chocolate and its products, including beverages and other dessert
products has recently increased unprecedentedly in Australia. The Australians including the
common people are buying more chocolate products and it has been found out that the recent
trends in consumption of chocolates and sweet as well as milk products in Australia are the
highest in the recent times. It has been found out that the Australian consumers have more
tendencies to buy and consume chocolate bars. Since the year 2013, the consumption of
chocolate and its allied products and confectioneries have increased tremendously. One of the
most popular chocolate manufacturer brands of Australia is Cadbury. Cadbury has brought the
confectioneries world of Australia, a plethora of variety and flavors of chocolate bars and
products which are ranging from flavors like Hazelnut, Cherry ripe to fruit-and-nut which has
become immensely popular all over the nation (Cadbury Australia., 2019). However, apart from

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purchasing ordinary chocolate products, the consumers also tend to buy premium products such
as Ferro Rocher (Chocolate consumption Australia 2016, t., 2019).
Industry Growth
Australia’s public consumption of chocolates and milk products are said to be increasing,
enhancing and evolving across time. The important cities of Australia, including Melbourne,
Perth and Sydney have become a center for chocolate sales, purchase and consumption. An
increasing number of confectioneries have been built all over the cities encouraging the city-
dwellers as well as the visitors to savor the chocolate products. However, there have been
innovations made in the chocolate manufacturing industries too. For instance, Mondelez has
been launching Cadbury dairy milk with Oreo in mint and strawberry flavors which is assumed
to be bringing in a revolution in the world of chocolate manufacturing industry in Australia. With
an alarming rise in number of health-conscious consumers in the market, there has been an
increasing demand for premium chocolates as well. With the rapid and remarkable expansion of
e-commerce and online shopping, the chocolate manufacturing industry of Australia is receiving
a boost in their productivity and profit (Chocolate consumption Australia 2016, t., 2019).
Uniqueness of the Products
The products that the company of Donald B. offers are chocolate products, milk products and
confectionaries in Australia. The products which the company offers are unique from the other
chocolate confectionaries in terms of its variety. Donald B. has been employing creative and
diligent bakers and eminent confectionary chefs who works diligently and creatively to build
different varieties of confectionaries and chocolate products such as chocolate bars, chocolate

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breads, sugar-coated chocolate doughnuts and chocolate beverages such as oreo-choco shakes
and chocolate mango shakes which are unique in the market. Donald B. has also experimented
with flavors by introducing innovative and new flavors such as choco-mint flavor, fruit-nut-
strawberry/vanilla/blueberry flavor so that the consumers of all age find the products to be
intriguing and appealing. The creativity of the company can be roughly taken as its competitive
advantage over other local and national confectionaries.
The most important theory of market positioning is the STP Model. The STP model is
widely elaborated as Segmentation, Targeting and Positioning. Under Segmentation, a
management expert has to choose variables for segmenting the market, build a clear profile of
the different segments that are noted down by him/her and endorse the emerging segments with
the emerging market. Under Targeting, the targeting strategy which the company is planning to
implement should be evaluated. The management should also scrutinize how many and which
segments should be targeted. Under Positioning, the marketing expert has to understand the
consumer behavior and perception according to the market trends. He/she then has to apply
certain creative and innovative ideas to position the products in the mind of the consumers. The
marketing manager is required to design appropriate marketing mix of the respective product and
communicate the positioning to the consumers in the market.

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Market Segmentation of the Company
1. Demographic Segmentation: Demographic segmentation can be widely termed as a
simple process or a methodology used by the marketing managers or sales representatives
to divide and segregate the targeted and potential or prospective customers on different
demographic factors such as age, gender, sexual orientation, profession, family, income,
educational background, religion, socio-economic status, race and ethnicity.
Demographic segmentation for a particular product or an industry dissects and divides the
market into different demographic variables to ensure weather the targeted customers or
the potential customers are well-addressed. Demographic segmentation helps in
analyzing and interpreting the complex market dynamics in a much easier way for the
marketing executives and managers. Under the demographic segmentation of the
company, Donald B should be crystal clear about his target consumers. Under the
segmentation of age and life-cycle, It is assumed that his target customers would be
children who are at the age of fourteen or above, the adolescents and the young adults
that are the population that consumes most of the fast food and have cravings for
saturated sweetened food (Hormes, Orloff & Timko, 2014). As far as gender
segmentation is concerned, the company of Donald B. has an advantage because
traditionally it is believed that women consume more chocolates than men. Donald B. has
to remember that his target customers could be mostly women and since women, in
recent trends, have become more calorie conscious than men in Australia as they are
concerned about their looks and appearance, Donald B. should make an attempt to
provide them with premium, low calorie specially designed chocolate confectionaries that
are tasty as well. When it comes to income segmentation, it has to be remembered that

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Donald B. is providing products that are relatively low and affordable with a high variant.
Therefore, the targeted customers for Donald B.’s company would be the middle-class
and upper-middle class families of Australia who would be able to afford the products
easily and constantly. The company is required to build a research and development panel
that would work relentlessly to identify the specific demand of sweet fast food among the
targeted demography and therefore, Donald B. is required to take necessary steps to
market his products.
2. Geographical Segmentation: As far as geographical segmentation is concerned, the
company of Donald B. should focus on the local as well as the national cities and
townships to propagate and preach about its products and build confectionary stores at
different locations in Australia based on the demographic composition and convenience
accordingly.
3. Psychographic Segmentation: Psychographic segmentation in market segmentation can
be defined as a mechanism of segmentation by which groups are segmented and
segregated by their psychological traits that influence consumer habits and behavior that
are generally drawn from their lifestyle, preferences, necessities and attitudes. According
to the psychographic segmentation, Donald B. should follow the consumer behavior of
his target customers and set his marketing strategies and policies accordingly. For
instance, the young adults of Melbourne whom Donald B. has targeted as his prospective
customers would observe the consumer behavior and manners and if the targeted
customers exhibit health consciousness and healthy eating habits, Donald B. might
choose to modify his products in a healthy way and provide premium chocolate products
at premium price for only a separate set of customers he desires to cater to.

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Market Positioning
In marketing and enterprise strategies, market position refers to the perception of the
consumers regarding a particular brand or product in terms of relation between the competing
brands or products (West, Ford & Ibrahim, 2015). Market positioning can be termed as a special
way by which a brand of a particular business is positioned and placed in the market so that the
consumers perceive it in a certain unique way. A proper market positioning of a particular
product by a particular company can bring immense profit to the company. To build a proper
market position for a product, immense creativity and innovative ideas are needed to influence
the mind of the consumers to attract their attention towards the product that might eventually
lead to purchase of that product. For positioning a particular product in the market requires
dexterity in marketing strategies, requires a continuous process of marketing initiatives to imbibe
in the mind of the target market the unique and remarkable perception of the respected product or
brand (Arasa & K'Obonyo, 2012).

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High Price
Low Price
High VarientLow Varient
Company of Donald.
B
Market Positioning Map

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Marketing Mix of the Company
Product: The products that are to be produced and offered by the company of Donald B. should
be framed according to the needs, preferences and demand of the Australian market. The
products should be able to satisfy the needs and requirements of the Australian population. The
company, before engaging itself into marketing activities, should first of all, make an attempt to
understand the socio-economic as well as the psycho-social condition of the Australian
population. The company should hire researchers and development officers to observe,
comprehend, analyze and interpret the current demand and eating habits of the targeted
population. The research outcomes should then be utilized in making marketing strategies and
actions. For instance, Australians, recently, due to unprecedented growth of obesity, have been
forced to be health conscious. Therefore, Donald B. would supposedly make chocolate products
that would be fat-free and premium in nature (Minifie, 2012). Apart from the needs, preferences
and demands in the market, the company should also focus on the affordability of the target
population. Donald B. should create such products that might be affordable to every sections of
the society also bringing good quality in it.
Price: As far as pricing strategy is concerned, the company of Donald B. is required to take up
competition-based pricing strategy as his marketing strategy. Donald B. should make an attempt
to observe the prices of the products offered by the peers and competitors and set the price for his
own products judiciously and carefully.

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Promotion and Distribution: With proper strategic union and association with local and national
retailers, Information and Communication Technology resources and social media platforms and
portals of Australia, the company should be able to distribute its products more efficiently. As far
as promotion is concerned, various communication strategies with proper social media and other
communicating platforms such as websites and web pages with effective digital marketing
experts, the company is supposed to be able to promote, distribute and sell its products in a more
efficient and effective way (Urde & Koch, 2014). The company of Donald B. has been planning
to distribute its products with the help of different distribution channels such as social media,
websites and collaboration with online food retailers such as Zomato and FoodPanda. The
company has also taken initiatives to get in touch with franchisers throughout the whole
Australia. The company has made attempt to open ten retail confectionery shops in Melbourne
and Sydney. The company is utilizing intensive distribution methods to reach the customers
anytime and anywhere with the help of social media and other internet services apart from
franchises.
Recommendation
The company can use Customer benefits as a Market Positioning Strategy. Customer
benefits as a positioning strategy helps to focus on the customer satisfaction by enhancing the
products that a particular company offers (Dibb & Simkin, 2013). In this case, Donald B. is
required to build, maintain, improve and enhance his products for better customer benefits and
satisfaction. For instance, if the customers as well as the prospective customers that have been
targeted by the company of Donald B. tend to be more health conscious and possess good eating
habits, it will be the job of the company to produce the products that might help them maintain

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their health as well as providing them with premium taste and delicacy by any other premium
chocolate brands. For such initiatives, a dedicated research and development panel is necessary
for the company.
Conclusion
The respective paper is hereby concluded with providing a market strategy analysis report
of a confectionary company run by Donald B. in Melbourne, Australia. Donald B. is a chocolate
product manufacturer and his company mainly sells confectionary items that are chocolate based,
mainly cakes, cookies and chocolate beverages and other chocolate desert items such as marsh
mellow. The respective market strategy report has concluded to be an introduction and
discussion of various market strategy and positioning theories and recommendations for the most
desirable approaches that can be taken by the respective company to enhance and develop itself.

15MARKET STRATEGY REPORT
References:
Abs.gov.au. (2019). Population - Australian Bureau of Statistics. [online] Available at:
https://www.abs.gov.au/population
Arasa, R., & K'Obonyo, P. (2012). The relationship between strategic planning and firm
performance. International Journal of Humanities and Social Science, 2(22), 201-213.
Baker, M. J. (2014). Marketing strategy and management. Macmillan International Higher
Education.
Cadbury Australia. (2019). Cadbury Australia. [online] Available at:
https://www.cadbury.com.au/
Chocolate consumption Australia 2016, t. (2019). Australia - chocolate consumption by type
2016 l Statistic. [online] Statista. Available at;
https://www.statista.com/statistics/701318/australia-chocolate-consumption-by-type/
[Accessed 11 Mar. 2019]
Dibb, S., & Simkin, L. (2013). Market segmentation success: Making it happen!. Routledge.
Hormes, J. M., Orloff, N. C., & Timko, C. A. (2014). Chocolate craving and disordered eating.
Beyond the gender divide?. Appetite, 83, 185-193.
Minifie, B. (2012). Chocolate, cocoa and confectionery: science and technology. Springer
Science & Business Media.
Piercy, N. F. (2012). Market-led strategic change. Routledge.

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Piercy, N. F. (2016). Market-led strategic change: Transforming the process of going to market.
Routledge.
Urde, M., & Koch, C. (2014). Market and brand-oriented schools of positioning. Journal of
Product & Brand Management, 23(7), 478-490.
West, D. C., Ford, J., & Ibrahim, E. (2015). Strategic marketing: creating competitive
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