Marketing Strategies for Haigh's Chocolates in Japan

This report discusses the marketing strategies for Haigh's Chocolates in Japan, including segmentation, targeting, and positioning strategies. It also recommends an extended marketing mix for the Japanese market.

Running head: MARKETING MANAGEMENT
Marketing management
Name of the student
Name of the university
Author note

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Executive summary
The aim of this report is to discuss about the marketing strategies to be followed by Haigh’s
chocolates in doing business in Japan. The marketing segmentation variables are being discussed
in this report to identify the potential target segments for Haigh’s chocolates. The targeting
strategies applicable for them are also evaluated in this report. This includes product
differentiation and market focus approaches. A few positioning strategies are also being
identified for Haigh’s chocolates, which can help them in having distinctive positioning in the
Japanese market. Lastly, this report recommended all the major elements of marketing mix in
regards to the Japanese operation of Haigh’s chocolates. It is concluded that effective
implementation of the elements of marketing mix discussed will help Haigh’s chocolates to have
long term viability in their Japanese business.

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Table of Contents
Introduction......................................................................................................................................3
Identification of the segmentation strategy......................................................................................4
Demographic segmentation.........................................................................................................4
Geographic segmentation............................................................................................................5
Psychographic segmentation.......................................................................................................5
Behavioral segmentation.............................................................................................................6
Identification of the targeting strategies..........................................................................................6
Cost leadership.............................................................................................................................6
Product differentiation.................................................................................................................7
Market focus................................................................................................................................7
Identification of the positioning strategy.........................................................................................8
Positioning based on product characteristics...............................................................................8
Positioning based on pricing........................................................................................................8
Positioning based on the product process....................................................................................9
Marketing mix strategies...............................................................................................................10
Products.....................................................................................................................................10
Price...........................................................................................................................................11
Distribution................................................................................................................................12
Promotion..................................................................................................................................12

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Physical evidence.......................................................................................................................13
Process.......................................................................................................................................13
People........................................................................................................................................13
Conclusion.....................................................................................................................................14
Reference.......................................................................................................................................15

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Introduction
Entering in the international market will involve an effective marketing strategy, which
may be different to their existing approaches. This is due to the reason that different markets in
different regions are having diverse market factors including the differences in taste and
preference pattern of the customers. Therefore, the marketing strategies should also be in the line
of the local market trends and patterns (Leonidou et al. 2013). In the previous assignment, it is
identified that Haigh’s chocolates will enter in the Japanese market with their full product
portfolio. In addition, the last assignment also discussed about the attitude of the customers along
with the major business factors to be faced in doing business in Japan (Borland and Lindgreen
2013). Thus, it is now important to design the marketing strategies including the segmentation
and positioning strategies, which will be effective and in line to the identified business factors in
the last assignment.
This report will discuss about the segmentation strategies along with the targeting
variables for Haigh’s chocolates. In addition, this report will also discuss about the targeting
strategies that will further help them to gain competitive advantages by catering to the maximum
sets of customers. A few positioning strategic approaches for Haigh’s chocolates will also be
discussed in this report, which will help them in staying distinctive among the competitors
(Haighschocolates.com.au 2018). Positioning map will also be given to complement the
recommended approaches. An extended marketing mix will be evaluated in this report including
all the major elements. This will help in having the fair understanding about which strategies
should be initiated by Haigh’s chocolates in having the maximum return from doing business in
Japan. Each of the elements of the marketing mix will be discussed on the basis of different
marketing theories.

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Identification of the segmentation strategy
Market segment identification is important due to the reason that Japan is having
customers across different segments and price levels and effective identification of the target
customer segments will help Haigh’s chocolates to design their business approaches accordingly
(Cross, Belich and Rudelius 2015). In this case, Segmentation, Targeting and Positioning (STP)
model will be used to have a holistic overview of the customer segments. In identifying the
target segments, a few variables will be used based on different customer sections.
Demographic segmentation
In terms of the demographic segmentation, there are number of sub-segments to be used
including age groups, gender and income. In terms of the age groups, customers between the age
of 10 and 55 will be targeted as the primary target groups. In addition, customers having the age
over 55 will be targeted as secondary target groups. This is due to the reason that chocolates are
well accepted among different age groups and it will further be complemented by the diverse
product portfolio of Haigh’s chocolates (Toften and Hammervoll 2013). Younger age groups are
having maximum preferences for chocolates and thus they will be targeted from as early as 10
years. On the other hand, products of Haigh’s chocolates such as chocolate bars, novelties and
boxed chocolates will have more preferences among the adult age groups mainly for
consumption and gifting purposes. It should be noted that customers above the age of 55 are
considered as secondary target groups due to the fact that they are likely to have health issues in
consumption of chocolates but still a considerable amount of customers prefer chocolates. This
can be concluded that targeting these wide and vast age groups will help Haigh’s chocolates to
have larger sales volume and revenue in the Japanese market (Cuadros and Dominguez 2014).

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In terms of the gender, both male and female customers will be targeted due to the reason
that chocolate is equally well accepted among both the genders. It is reported that sex ratio in
Japan is nearly equal between both the genders and thus it is important for Haigh’s chocolates to
target both the genders. In terms of the income level, customers with having higher purchasing
power will be targeted. This is due to the reason that targeting the higher income levels will help
Haigh’s chocolates to have more profitability. In addition, economy of Japan is rapidly growing
that denotes the increase of purchasing power of the customers and more business opportunities
for Haigh’s chocolates.
Geographic segmentation
It is recommended that Haigh’s chocolates should target the tier I cities in Japan in the
initial stage of their operation. This is due to the reason that they will operate in the high
profitability and high income customer segments, which will have major presence in the tier I
cities. However, it is also recommended that tier II cities can also be targeted in the following
stage based on the business viability and opportunity in the smaller markets (Cannon and Yaprak
2014). This will further help Haigh’s chocolates to increase their market presence in Japan.
Psychographic segmentation
In terms of the psychographic segmentation, both the traditionalist and coming of age
customer segments will be targeted. This is due to the reason that Haigh’s chocolates are having
diverse portfolio ranging from dark chocolates to lighter ones. Thus, it will be able to meet the
diverse taste and preference pattern of different sets of customers (Winston and Cahill 2013). In
addition, socially aware customers will also be targeted due to the reason that they will be more
aware about the newly launches in the market and will have preferences for Haigh’s chocolates.

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Behavioral segmentation
In terms of the behavioral segmentation, customers with having usage occasion, quality
conscious, enthusiasts and luxury seekers will be targeted. This is due to the reason that Haigh’s
chocolates will be targeted towards the higher income segments and thus quality will be given
the major preferences. In addition, it should also be noted that customers opting for premium
products will be more attracted by the quality. Hence, quality seekers will be targeted. In
addition, enthusiasts will also be targeted due to the reason that they will be more open towards
the new products in the market and will be the major marketing force for constant evolution of
the product portfolio (Venter, Wright and Dibb 2015). Targeting this customer group will help
Haigh’s chocolates to have potential markets for their newly launched products. Due to being a
premium offering, products of Haigh’s chocolates will also add luxury as a value proposition for
the customers. This will help in further enhancement of the value proposition for the customers
especially the luxury seeking customers.
Identification of the targeting strategies
Targeting strategies are important for Haigh’s chocolates to consider due to the reason
that it will help in attracting the targeted customer segments. In this case, Porter generic
strategies will be used in identifying the effective targeting strategies for Haigh’s chocolates.
Cost leadership
Cost leadership strategy refers to the reduction in the cost of operation in order to
increase the profitability along with offering products to the customers at minimal price.
However, in the case of Haigh’s chocolates, premium and higher income customers will be
targeted and thus it is recommended that cost leadership strategy should only be initiated for

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reducing the cost of production (Kaliappen and Hilman 2013). This will ensure that business
viability for Haigh’s chocolates in doing business in Japan will be more.
Product differentiation
Product differentiation strategy refers to the strategy of initiating distinctive and unique
value proposition for the customers. This helps in differentiating the products from the
competitors. In the case of Haigh’s chocolates, it will be beneficial due to the reason that number
of premium chocolate brands are already operating in the Japanese market (Banker, Mashruwala
and Tripathy 2014). It is also recommended that differentiation should be initiated in terms of
taste, looks and packaging. This will help Haigh’s chocolates in having a unique identity in the
market and attracting the segmented customers.
Market focus
Market focus strategy refers to the process of targeting a particular customer segment and
offering products according to their individual taste and preference pattern. It is recommended
that Haigh’s chocolates should determine the specific trends for their target market and should
offer products accordingly. This will help in effective fulfillment of the expectations of the
targeted customers and will also contribute in enhancing the loyalty level from the side of them
(Teeratansirikool et al. 2013). In addition, it should also be noted that premium customers can be
attracted only by meeting their expectations and requirements effectively, which can be done by
initiating the market focus strategy.

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Identification of the positioning strategy
Positioning strategy is the last element of the STP model and denotes the elements based
on which the products will be positioned in the market and ensure the maximum return. There
are number of positioning strategies or approaches being identified, which will be effective and
ideal for Haigh’s chocolates in positioning their products in the Japanese market (Urde and Koch
2014). The following sections will discuss about the different positioning strategies applicable
for Haigh’s chocolates.
Positioning based on product characteristics
It is recommended that Haigh’s chocolates should position their chocolates based on their
characteristics and features in the Japanese market. This denotes that they should position their
chocolates on the basis of taste and contents. This is due to the reason that in the previous
section, it is identified that Haigh’s chocolates will initiate product differentiation strategy
(Blakeman 2018). Thus, they should leverage on the unique and distinctive elements of the
products to position. This will ensure that the positioning will be unique and will help to stay
different from the competitors. In addition, it should also be noted that initiation of this
positioning approach will further reduce the impact of pricing decisions on sales revenue as
customers will be attracted based on the product characteristics.
Positioning based on pricing
It is also recommended that pricing can also be used as the positioning factor by Haigh’s
chocolates. This is due to the reason that Haigh’s chocolates will offer only premium sets of the
customers and thus pricing will help in creating a favorable impression among the target
customers (Finch, Nadeau and O’Really 2013). It is well known that majority of the customers

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High price
Higher product
features
Low price
Lower product
features
Haigh’s chocolate
Lotte Meiji
Nestle
Hershey’s
perceive price as the determinant of quality and thus they relate the higher price with higher
quality level. Thus, Haigh’s chocolates should have their price set higher in order to create the
similar impression among the customers. In addition, this will also enable them to position their
chocolates as more quality oriented and premium products due to having higher pricing levels.
Positioning based on the product process
Haigh’s chocolates can also position their products on the basis of process due to the fact
that this will help in increasing the utility among the customers. It is recommended that Haigh’s
chocolates should position their chocolates as everyday usable products applicable for every
occasion. This will be beneficial for them due to the reason that majority of the premium
chocolate brands operating in the Japanese market are not having everyday usable offerings,
rather they are mainly offered for occasional purposes and gifting process (Sirianni et al. 2013).

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Marketing mix strategies
In the previous sections, the targeted segments along with the targeting and positioning
strategies are being discussed. Thus, it is important for the recommendations of marketing mix
elements. This will help Haigh’s chocolates to adhere to the business factors in Japan properly
and enhance their business opportunities in the long term.
Products
It is identified that Haigh’s chocolates are already having deep assorted product range in
the Australian market. This will help in catering to different customer segments. It is also
recommended that market adaptation strategy should be initiated by them in doing business in
Japan due to the reason that cultural and social factors are different between Australia and Japan.
Thus, the marketing approach of their home country will not be applicable in doing business in
Japan (Bykadorov, Kokovin and Zhelobod’ko 2014). It is recommended that the existing product
range should only be offered to the Japanese customers with a few personalized approaches. For
instance, it is reported that Japanese customers are having the preferences for the low calorie
content chocolates. Thus, Haigh’s chocolates should offer their existing products by lowering the
calorie content without affecting the taste. In addition, the packaging approach for the products
to be sold in Japan should be in accordance to the cultural aspects of Japan including color, font
design and usage of symbols. This will help in effectively relating with the Japanese customers.
In terms of the core product level, the value proposition will be the taste, which will be
distinctive and unique compared to their competitors. Thus, the customers looking for distinctive
and richer taste can be effectively targeted. In terms of the augmented product level, social status
and premium feel will be gained by the customers. This is due to the reason that, premium

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pricing and distinctive taste will help Haigh’s chocolates to position themselves as a lifestyle
brand (O’Cass and Sok 2014). This will ensure that customers will get the premium experience
along with the core offerings. This will further increase the potentiality of the products of
Haigh’s chocolates among the premium sets of customers.
Price
It is recommended that Haigh’s chocolates should initiate the price skimming and
premium pricing approach in doing business in Japan. This is due to the reason that with the help
of the price skimming strategy, Haigh’s chocolates will be able to leverage the initial market
buzz for their new products in enhancing their revenue. In addition, initiation of the price
skimming strategy will also help in extending the product lifecycle for Haigh’s chocolates by
gradually reducing the price level according to the product stage (Spann, Fischer and Tellis
2014). However, it should be noted that Haigh’s chocolates should follow the premium pricing
strategy to maintain their position in the market. Initiation of the premium pricing strategy will
also ensure that profitability will be more along with maintenance of the exclusivity in the
market. It will also help Haigh’s chocolates to prevent the high intensity of competition in the
mass market. This is due to the fact that Japan is having good number of mass market chocolate
brands and thus it will not be a viable option for Haigh’s chocolates to operate in the mass
market with lower profitability and higher competition. It is also being recommended that in the
further stage of the operation in Japanese market, Haigh’s chocolates can also initiate a dual
pricing strategy by initiating market penetration pricing strategy. They should introduce a sub-
brand, which will cater to the mass market customers by having more affordable products
(Zhang, Chiang and Liang 2014). Thus, this will help in increasing the sales revenue, volume
and market presence of Haigh’s chocolates in Japan.

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Distribution
Distribution effectiveness and choice of the place will also determine the potentiality for
Haigh’s chocolates. This is due to the reason that it will determine the availability of the products
of Haigh’s chocolates in the Japanese market. It is recommended that they should initiate Omni
Channel distribution strategy involving both the offline and online mediums. This is mainly due
to the fact that the more will be the availability of the mediums; the more will be the market
presence of the products. They should follow intensive distribution strategy in accordance to
their premium positioning. Intensive distribution strategy refers to the availability of the products
among a certain mediums and extensively available (Frazer and Stiehler 2014). This will help
Haigh’s chocolates to maintain their exclusivity in the market. On the other hand, involvement of
the online mediums will also ensure that customers can order the chocolates from their
convenience and market penetration will be more for Haigh’s chocolates. In terms of the offline
retailing, majorly the hypermarkets and branded stores will be targeted for distribution in the
market to have the limited availability.
Promotion
It is recommended that Haigh’s chocolates should initiate Omni Channel approach in
terms of the promotion also. This will help in targeting the customers through both online and
offline mediums. In terms of the online medium, social media will be extensively used by
Haigh’s chocolates prior to entry in the Japanese market. This will help them to identify the
trends and patterns of the target customers (Duchessi and Lauria 2013). Furthermore, in the later
stage, social media marketing will also help Haigh’s chocolates to gain the feedback regarding
their products and will enable them to modify their product strategy accordingly. In terms of the

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offline mediums, premium television channels and outdoor media in the posh locations will be
used to cater the target customer segments.
Physical evidence
Physical evidence will include the packaging and hard containers that will remain with
the customers. In addition, it is recommended that the shape of the chocolates and the containers
should be distinctive for better customer recall (Mukherjee and Shivani 2013). This will also
ensure that customers will keep the containers even after the consumption and physical evidence
will get increased. This will also increase the brand recall value for the customers.
Process
The process will be the same as they are having in their home market. This will enable
Haigh’s chocolates to have lower time consumption in the production process and offerings will
be more freshly served to the customers. In addition, the process should also ensure that health
and hygiene will be maintained in the process, which will ensure further level of customer
satisfaction.
People
People for Haigh’s chocolates include mainly the stakeholders in the production process
and their skills will determine the taste and other product characteristics. Thus, it is important for
the organization to maintain the effectiveness of these employees in order to have the long term
business viability (Knies and Leisink 2014). However, customer service will be preferred for the
employees as Haigh’s chocolates will have touch points through only the third party retailers.

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Conclusion
This report concludes that Haigh’s chocolates are having vast market in terms of
demographic segmentation and other variables. There are number of variables being identified
for the target segments. In addition, it is also identified that they should follow market focus and
product differentiation strategy to target the customers. In addition, a number of potential
positioning approaches are also being discussed in this report. The marketing mix strategy
discussed in this report includes all the seven elements, which will help Haigh’s chocolates to
have effective and ideal market potentiality in doing business in Japan.

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