Marketing Assessment 1: Research Case Study Report - Donald's Chocolate Company

This report examines the marketing environment of Donald's Chocolate Company in Melbourne, Australia. It analyzes buyer behavior, the microenvironment (customers, competitors, suppliers, public), and the macro environment (political, economic, social, technological, legal, environmental). The report also discusses the likely competitors, their offerings, and target markets. The analysis provides insights into the challenges and opportunities facing Donald's Chocolate Company as it seeks to expand its business nationally and internationally.

Marketing
Assessment 1: Research Case study Report
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Contents
Introduction......................................................................................................................................3
1) Discuss the buyer behaviour in relation to chocolate products...................................................4
2) Analyse the microenvironment...................................................................................................6
3) Summarize the likely competitors, what they offer and who they seem to target?.....................8
4) Analyse the macro environment. What are the society-wide influences on chocolate products?
Are there demographic, economic, natural, technological, political or cultural trends that have or
will affect fast food consumption..................................................................................................10
Conclusion.....................................................................................................................................13
References......................................................................................................................................14
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Introduction
Marketing research in the business organization helps in the identification, collection, and
analysis of the information obtained from the market in order to devise marketing strategies and
tactics for the successful marketing and to identify the opportunities in marketing. There is no
doubt in the fact that marketing is one of the important segment of the business that plays a great
role in the success and failure of any organization. Without marketing research, the marketing
plans are of no use as having market information before developing the marketing plan is very
essential. The study revolves around a marketing research report for a chocolate company owned
by Donald B in Melbourne, Australia. The marketing research report will be used by the owner
in order to expand its business operations in the national and international market. The report
will consist of buyer behaviours, analysis of the microenvironment and macro environment and
competitor’s analysis. There will be critical analysis and discussion on the micro and macro
environment of the chocolate industry in order to gain pertinent knowledge and understanding
about the trends in the market. It will help the Donald's Chocolate Company in the planning of
the marketing plans, objectives and actions.
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1) Discuss the buyer behaviour in relation to chocolate products.
According to the words of East, et. al., (2016), buyer behaviour refers to the study of how a
buyer selects and analyse a product. It is an attempt to understanding the decision making the
process of a buyer while selecting a product or service from a large number of choices and
alternatives. The behaviour of buyers in the section of the products and services plays a great
role in the estimates sales of the products and services. Buyer behaviour differs from individual
to individual as everyone has their own choices and perceptions towards a product. Same in case
of chocolate products, the opinion and perception of buyers are different that shows their loyalty
towards the particular brand.
In the words of Culliney, (2012), the chocolate industry is growing steadily with around $50
billion-a-year business all over the world has only centered on chocolates. In Australia, the
chocolate confectionery has grown to 4% in 2017 as compared with 3% rise in 2016. It is due to
the continuing driven demands of the customers towards the premium quality chocolates. The
consumers are taking the chocolates as indulgence while the health-conscious consumers are
moderating the intake of chocolates by shifting to cocoa content varieties of chocolates instead of
showing their interest in any other snacks. The chocolate industry in Australia has also
diversified its products with the introduction of the healthier products in order to meet the
expectations of the health-conscious customers (Solomon, et. al., 2014).
The below discussion will reveal the characteristics of the buyers and also the factors that affect
the buying behaviour of the individuals. With these, it would be easy to learn about the buyer
behaviour in the chocolate and confectionery industry and implement the plans in accordance of
the buyer’s behaviour towards the consumption of the chocolates (Culliney, 2012).
Buyer characteristics in the chocolate industry
 According to Afoakwa, (2016), chocolate is not a necessary product hence the consumption of
the product varies from person to person that how much they spend on chocolates. It also
depends on the income, quality and necessity of the products (Afoakwa, 2016).
 Chocolates are the matter of taste and pleasure hence the consumer like to prefer a wide range of
varieties and options while buying the chocolates.
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 In the words of Beckett, (2015), children are the major buyers of the chocolate products hence
the parents look for the quality of the brands for the health of their children.
 The choice of dealers also affects the buying behaviour of the consumers towards chocolates.
The consumers generally visit the dealers who are reliable and offer a variety of chocolate
products (Beckett, 2015).
 Purchase timing also plays important role in deciding the choice of the consumers towards
chocolates. Chocolates are highly demanded during the time of events and festivals.
 The capacity and willingness of the customers also define their behaviour towards the choices
regarding chocolates. The price of the chocolates affects the choices of the buyers in such
conditions (Beckett, et. al., 2017).
(Source: Fisk, 2017)
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Major factors that affect the buying behaviour
a) Personal: This factor includes the economic status, lifestyle, occupation, age, the personality of
the individuals. These factors affect the buying behaviour of the consumers. The consumers
consume the chocolates on the basis of their income status, lifestyle etc. Health conscious people
would like to have fewer chocolates; children are the major consumers of chocolates as
compared with adults. It is also found that older people also show their interests in the chocolate
products (Fisk, 2017).
b) Cultural: These are the set of basic norms, values, principles learned from the culture. During
cultural events and festivals, the demand of the chocolates is generally high as compared with the
normal days. The chocolate products are highly demanded by the consumers during the events,
festivals, parties etc.
c) Social: Social factors play an effective role in the decision-making process of the buyers while
purchasing chocolates. Social factors like reference groups (friends, families, and relatives),
social status and society. As compared with families, people would like to have chocolates more
with friends (Putri, et. al., 2015).
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2) Analyse the microenvironment
According to the thoughts of Neiburg, (2013), the business environment is a complex term that
affects an organization’s ability to maintain strong and healthy relationships with the customers.
The environment affects the decisions regarding marketing strategies and actions. The
microenvironment consists of customers, competitors, suppliers, public, marketing
intermediaries, etc. The detailed description of the microenvironment for the chocolate products
is explained as under:
 Customers: In the growing and complex business environment, it is important for the
organizations and corporations to retain loyal and trustworthy customers in order to stay for
longer time. An organization with sound and a consistent number of customers has more chances
of future growth and prosperity as compared with the organizations with inconsistent customers.
In the chocolate industry, the sales of products are mainly dependent on the satisfaction of the
customers. Customers have a direct impact on the growth and progress of the business in the
domestic as well as international market. In recent times, the consumers of chocolates demand
healthier chocolate products and sustainable gourmet products due to increasing diseases and
health issues like diabetes etc. The increasing consciousness of health among the customers has
affected the sales and revenue of the industry since the last years (Neiburg, 2013).
 Competitors: Competitors are one of the major threats for the business organizations and
corporations in the present scenario as the customers are shifting from one seller to another in
search of better quality, price, satisfaction etc. The major competitors for Donald’s Company that
comes in its way of national and international expansion are companies dealing with cocoa
products, confectionery, candid popcorn, glazed fruit etc. The small retailers and big
corporations are a major threat to the company; hence Donald needs to implement better and
attractive marketing actions and tactics. In order to gain a competitive advantage in the market, it
is important to diversify the products in terms of chocolate, confectionery, cocoa and chewing
gum products. It will help in increasing the loyalty of the customers and also deal with the
competitors in an effective way (Nieburg, 2015).
 Suppliers: Suppliers also has the ability to control the business when they are the largest
supplier of the particular goods. The manufacturers rely on the suppliers in order to avail
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material to produce the finished goods for the buyers. Suppliers provide the inputs or raw
materials to the business which is transformed by the organization into the finished goods. It is
important for Donald's company to maintain strong and healthy relationships with the suppliers
in order to offer good and quality value to the final customers. In order to avail competitive
advantage in the market, the organization should increase collaboration with the suppliers in a
friendly way rather than deal in a confrontational manner (Beckett, et. al., 2017).
 Public: The local community is also a part of the microenvironment of the business
organizations. The local community supports and assist the organizations that offer employment,
pay timely taxes, fulfills a corporate social responsibility, protects the environment. It is the
obligation as well as the responsibility of Donald's company to implement environmental
friendly ways in order to produce or sell its products in the market. An organization with sound
market image and reputation can grow effectively in the national and international market. The
company should hire skilled and trained people who are efficient in providing quality satisfaction
to the customers (Neiburg, 2013).
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3) Summarize the likely competitors, what they offer and who they seem to target?
As per the words of Gifts, (2015), chocolate is the largest category with high volume and sales in
Australia and will have the fastest growth rate during the time of 2009 to 2019. The
hypermarkets and supermarkets are the majority confectionery market in Australia which is
rising at a high speed. The Australian population is aging that induces the chocolate producers
and makers to produce better for you chocolate products in order to cater the specific needs and
requirements of the customers. The emergence of the health-conscious customers has wanted the
chocolate and confectionery producers and makers should be creative with the products and
adaptable to the customer needs and expectations.
For Donald’s Chocolate Company, the major rivalries that can hinder its plan of national and
international expansion are Mondelez International Inc., Betta Foods Australia Pty Ltd.,
Funtastic Ltd., Manassen Foods Australia etc. The companies offer a number of chocolate
products and brands including marshmallow, chocolate panned products, cocoa products,
snowballs, jellies, liquorice, drinking chocolate etc. Betta Foods Australia Pty. Ltd. supplies ice
cones, jellies, and marshmallows that make its most popular brand among the children.
Mondelez International Inc. has been dedicated to serving the quality and healthy food including
chocolate products in order to meet the growing demands and expectations of the health-
conscious customers in Australia (Culliney, 2012).
(Source: Yu, 2017)
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The above figure shows the ratio of Australians who consume chocolates in an average four
weeks. It is found that some of the bestselling chocolate products in Australia include Cadbury
favourites, Lindt Lindor Balls, Ferrero Rocher, Lindt and Cadbury Roses etc. (Yu, 2017).
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4) Analyse the macro environment. What are the society-wide influences on chocolate
products? Are there demographic, economic, natural, technological, political or cultural
trends that have or will affect fast food consumption?
As per the analysis of Dowd, (2015), not only the microenvironment factors influences the
marketing campaigns and actions but also the macro environment plays a significant role in the
success of the marketing plans. The macro environment is the external environment that affects
the operations from the outside of the business. For a successful marketing research, the
evaluation of the macro environment is highly necessary for the business organizations and
corporations in order to accomplish the marketing goals and objectives. Macro environment
consists of demographic forces, economic factors, natural factors, technological factors, political
factors, social factors etc. The explanation of these factors in accordance with the chocolate
industry has been presented in the below discussion.
Political factors: Political factors refer to the political issues and regulations that affect the
operations of the industry. The imposition of the taxes on the chocolates by the government has
influenced the revenue and profits of the industry in many ways. For an instance, the increment
in the value added taxes (VAT) has raised the prices of the chocolates and reduced the sales that
affect the margins of the industry (Dowd, 2015).
Economic factors: The global economic downfall affects the growth of chocolate industry all
over the world and was the toughest time for the industry. Despite a number of efforts it was not
easy for the industry to regain its profits and revenues but could not recover from the losses
itself.
Social factors: Social factors also influence the business operations of the chocolate products
that should be considered by the organizations. Also, there is an increasing concern of the
obesity and health issues due to increasing consumption of chocolates affects the sales of the
chocolates in the present times and also likely to affect the sales in future (Trematerra, et. al.,
2016).
Technological factors: Technology has brought multiple changes and variations in the industry
starting from the process of production to attractive packaging and labeling. The technological
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innovations in the chocolates attract a wide number of customers, especially children. The
innovation of new brew machines for the blending of the coffee and cocoa has adopted a large
number of chocolate product companies and makers.
Legal factors: Legal factors and laws such as food, health, and safety at lays emphasis on the
quality and authenticity of the chocolate products. It is the responsibility of the organizations and
makers to provide quality and value chocolate products to the customers in order to protect their
health and safety (Gifts, 2015).
Environmental factors: The chocolate industry is ramping up on good and friendly agricultural
practices in order to prevent and protect the environment and natural resources. It is found that
the production of cocoa does not cause any harm to the environment if it is systematically and
properly managed. Some of the practices of production of the chocolates lead to soil erosion,
deforestation that harms the environment and natural resources to a great extent (Wilson and
Hurst 2015).
What are the society-wide influences on chocolate products?
As per the views of Dowd, (2015), consumption of chocolates is not new in the society, people
have been consuming chocolate and chocolate products for centuries and now it has become the
part of the lives of the people. It is so prevalent that a large number of people still don't know
where it has been originated. It is grown on a cacao tree with the climate of twenty degrees
(Gifts, 2015).
In the contemporary society where people are widely aware of the global health and equity, it is
not easy to survive for an industry like chocolate industry. The chocolate companies are
continuously engaging in direct trade practices with an objective to improve the living conditions
of the farmers and traders and help in the maximum promotion of sustainability all over the
world. Also, the industry is committed to promoting the principles of human and labour rights to
provide employment and development opportunities to the society (Gross, 2015).
At present times, people are shifting to low sugar or low-fat options due to their increasing
concern on the health issues. Unconstrained consumption of the chocolates results in increasing
the chances of obesity as it contains a large amount of butter, sugar, and cream. The sugar added
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in the chocolates has no value of nutrition and leads to weight gain or loss, heart disease and
diabetes etc.
The power of chocolates has been widely used by the chocolate industry to stimulate the
economy. The pleasure experienced from the consumption of chocolates is due to the presence of
neuropsychological components. It provides a unique sensory experience that appeals people
towards it. As per a survey, it was found that around three thousand individuals with clinical
depression claim about food cravings when depressed. Among them, approximately 45% craves
from chocolate especially females due to the following reasons. Chocolates have the capacity to
reduce depression, irritation and anxiety and its taste is unique. Women seem to have more
cravings for the chocolates as compared with the men and especially during the time of their
menstrual periods. During this period, chocolates provide antidepressant effect and develop a
strong feeling of pleasure among females (Neiburg, 2013).
Many chocolate makers and producers continuously change the packaging of their chocolate
products in order to attract new customers. Most people decide to buy the chocolates due to their
attractive packaging. In the present times of cutthroat and extensive competition, many brands
emerge and dissolve; only those survive for longer in the market that manufactures the products
with quality consciousness and as per the needs and demands of the rational and smart
consumers (Beckett, 2015).
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Conclusion
The marketing research reports for the Donald's Chocolate Company has critically analysed the
different aspects of marketing environment which are important for the company in order to
expand its business domestically and internationally. The research report has uncovered the
microenvironment and macro environment through critical evaluation that will be helpful for the
company for devising marketing strategies and actions. It is learned that there is high
competition in the chocolate and confectionery industry in Australia hence the marketing plan of
the Donald's Chocolate Company should be effective and attractive and in compliance with the
needs and expectations of the customers. It is also found from the study that nowadays
consumers are very health conscious and have specific perceptions and demands for the
chocolate products hence the company must bring innovation in its existing products and
services and produce quality chocolate products by keeping the health issues and problems in
mind. Also, the buyer behaviour of the consumers has been discussed that will offer a fair idea to
the company about the opinion of the consumers regarding chocolate consumption.
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References
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Manufacture and Use. John Wiley & Sons.
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marketing. Sage.
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the-rise-Roy-Morgan-Research.
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