Chocolate Market Analysis in Australia

The assignment is about analyzing the chocolate market in Australia. It requires researching various sources such as academic papers, books, and online articles to gather information on the topic. The student needs to provide a detailed report on the chocolate market in Australia, including its size, growth rate, major players, competitors, consumer behavior, and other relevant factors. The report should be well-structured and include a title, meta title, and meta description as per the requirements.

Running head: MARKETING
MARKETING
Name of the Student
Name of the University
Author’s Note

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Executive Summary
The present report focuses on the significance of marketing in the present day business.
Marketing refers to the activities of the organizations that are associated buying as well as selling
of goods and service. This basically involves different activities such as advertising, selling and
delivering goods to the customers. Design of products is also considered as one forms of
marketing since it helps to match the products of the company to the requirement of customers.
This study also analyzes on the potentiality of the marketing practices in today’s business world.
As the enterprises in this century are operating in the competitive business environment, they
adopt different marketing practices for promoting the product in the market. The enterprises in
today’s world adopt different marketing activities and also realize power of marketing approach
in order to create as well as maintain reputation, demand and competition. However, effective
marketing practices help the companies to create good brand, develops the product, build good
relationship with the customers, attain reputation in the marketplace and gain competitive
advantage over their rivalries.
In this report, the analysis has been done on the Donald B, who is a new entrant in
Australia chocolate industry. This player has two stores situated in Melbourne and thus wants to
its spread the brand awareness in order to expand the business in global market. In order to
analyze the market, the chocolate industry of Australia is also explained in detail. Being the new
player in this industry, he faces huge competition from its competitors regarding price, design
and packing of the product, customer service and so on. The competitive situation in the
chocolate market of Australia is seen to be mainly dominated by the both the domestic as well as
international competitors including, Cadbury, Mondele, Lindt, Nestle, Coles and Woolsworth
and so on.

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Each of this company adopts different marketing strategies in order to target their
consumer segment and achieve success in the business. They even changes the taste and design
of the chocolate and other products based on the preferences of their customers. This helps them
to attract as well as retain their customers and thereby gain their trust. The segmentation of the
Australian chocolate market has been done based on three categories that includes- milk
chocolate, dark chocolate, white chocolate etc depending on the suitability of all age groups.
However, the positioning as well as targeting in the market differs among these chocolate brands.
The chocolate companies operating in this industry also analyzes their target market before
manufacturing and launching any new product. This report however focuses on the importance
of market analysis and the areas that Donald B must cover before producing the product. In
addition to this, the behavior of buyers associated with fast and low calorie food is also discussed
in this study. Furthermore, the analysis on microenvironment and macro environment is also
highlighted in this report in order to assess the threats that Donald B might face in future. In fact,
this analysis helps to understand the possible factors that influence the environment of the
business.

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Table of Contents
1 Introduction...................................................................................................................................4
2 Analysis of the market..................................................................................................................4
Segmentation of the market.............................................................................................................6
Key Vendor Analysis...................................................................................................................6
Competition Benchmarking.........................................................................................................6
2.2 Microenvironment...............................................................................................................11
2.2.1 Suppliers and manufactures..............................................................................................11
2.2.2 Publics...............................................................................................................................11
2.2.3 Competitors.......................................................................................................................11
2.3 Macroenvironment...................................................................................................................13
3 Conclusions.................................................................................................................................15
References......................................................................................................................................16

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1 Introduction
The present report focuses on the importance of marketing for the Donald B chocolate
maker in Australia. Donald B being the new entrant in the Australian chocolate market should
focus on some factors in order to expand their business. It has been evident from recent facts that
the consumption of chocolates in Australia has been increasing over the years. Rise in demand
for the confectionary products and rise in total number of international players in this industry
mainly drives the chocolate market in Australia (Minifie, 2012). The report also analysis about
the chocolate market in this nation, which involves- market segmentation, buyers behavior and
key vendors analysis. The behavior of the buyers purchasing chocolate is mainly influenced by
social, cultural, psychological and personal factors. In fact, micro as well as macro
environmental forces are also analyzed in this study in order to highlight how these forces affect
the business of Australia. The microenvironmental forces that are discussed in this study
involves producers, suppliers, competitors and publics. In addition, the macroenvironmental
forces that are explained in this report involves- political, social, economic and technological. In
the last section, the conclusion has been drawn based the present chocolate market condition in
Australia and Donald B potentiality of growth of this chocolate confectionary sector in Australia.
2 Analysis of the market
Effective market analysis has been the cornerstone of the successful marketing campaign.
It refers to the assessment of both the external as well as internal market. It has been opined by
West, Ford & Ibrahim, (2012) that, market analysis is important for every business as it aids to
determine their sales proposition, analyze the target customer and their competitors, drivers of
the business growth and so on. It has been found out by some researcher that behavior of

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customers serve as vital tool for the marketers as it helps them to meet their sales target.
Analyzing the consumer behavior helps the marketers design the product or service, set the
product price, integrate appropriate promotional campaign and improve their business operations
(IBISWorld, 2018). Both micro as well as macro environmental has been considered as one of
the vital components of market analysis as it facilitates the researchers identify the different
forces that impact the business environment and operations in producing the product.
In Australia, the chocolate market is segmented into different categories including the
trends of the industry. However, the market is segmented by its type, age group, category, end
user and the distribution channel. Recent evidences reflect that the chocolate industry of
Australia has been increasing at high rate over the last few years. As a result, they are facing
huge competition from the imported chocolate product that is coming from the other Asian
nations. In addition to this, as the population in Australia has been ageing, it creates huge
opportunity for the manufacturers to create rising number of confectionary product that provide
to the age specific needs (McDonald & Wilson, 2016). Furthermore, the increasing growth in
this sector has been attributed to rising demand of consumers basically for the premium quality
chocolates. Moreover, the overview of this chocolate confectionary market in this nation permits
the new players as well as the existing enterprise to attain rapid insight into their market value,
packaging and data regarding distribution channel.
The producers in the chocolate producing industry of Australia have been facing
changing preferences of customers for over the past few years. Baker (2014) opines that
increasing customer concerns about sugar as well as fat in foods have reduced the chocolate as
well as confectionary demand for the past five years. As a result, the people of this country
choose to move towards rich cocoa content products rather than buying chocolate. Furthermore,

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the participants in this sector have led to rise in product diversification and introduction of
healthier products in order to limit the total number of customers switching to other products. As
a result, the demand for high quality goods has increased in this market over the last few years.
This in turn enhanced the performance of this chocolate industry. Thus, it is seen that the total
revenue of this sector increased by near about 2.2% for the last five years.
Segmentation of the market
Key Vendor Analysis
Monedelz international is one of the biggest food producers in Australia. It has the
portfolio of some of the iconic brands involving Cadbury Dairy Milk, Pascall, etc. They basically
focuses on the four pillars involving- mindful sncaking, safety, community and sustainability.
Mars is also one of the leading brands in Australia that supplies high quality chocolate, food and
other confectionary products (Wedel & Kamakura, 2012). This company relies on five basic
principles involving- mutuality, quality, efficiency, responsibility and freedom. Nestle is also one
of the leading food and beverage forms in Australia that have near about 2000 brands. They
conduct their business based on the principles of honesty, fairness and focusing on the people. In
fact, their advertising policy and packaging makes them attain huge popularity in the market. As
Donald B is the new entrant in this market, he should analyze these vendors before
manufacturing the product. This in turn will help to achieve success in the business.
Competition Benchmarking
Australia has been one of the largest consumption rates of chocolate in the Asia- Pacific
regions. Some of the major players in this industry are Mondelez, Mars, Nestle and so on.
Mondelez International is the biggest chocolate company that dominates the chocolate market of

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Australia with near about 55% of share. The next biggest player that comes after Mondelez is
Mars, which holds near about 18% of the market share. Nestle follows these two companies
holding the total share of 14%. On the other hand, Lindt accounts for only 7% of the chocolate
market in Australia. But this enterprise has been considered as the catalyst behind the present
growth in the premium chocolate market of this nation (Wilkinson, 2013). Few success factors of
these companies involve- attractive presentation of the product, manufacturing of premium
products. The benchmark of these companies involves- cost of sales and total expenditure rate.
However, Donald B being the new entrant faces several challenges in the market especially from
these biggest rivalries. It has been found out by the researcher that the chocolate market of
Australia will grow at high rate in future owing to increase in total number of players in the
market.
Market trends
The latest market trend that has been gaining huge momentum in the chocolate market of
Australia is the dark chocolate innovation. For the last few years, the manufacturers of chocolate
are bringing about innovations in account of manufacturing processes of chocolate in order to
compete with its counterparts and open new streams of revenue. This innovation made by the
chocolate producers helps them to attract new customers and retain new ones (Kotler, 2015).
Owing to this market trends, the manufacturers of chocolate in Australia chooses to become
innovative for adapting with the shifts in the preferences of consumers and counteract with these
trends. For this the confectionary market in Australia has seen increase in diversification of
products, sustainable production, premium chocolate and healthier options of product.
Furthermore, increase in total demand for the premium products leads to huge growth in revenue.
Overall, the confectionary market trends in Australia have seen an upward trend over the last few

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years. Donald B being the new manufacturers in the market faces this challenge and thus focuses
on innovating new products in order to sustain in the competitive business environment.
2.1 Buyers Behavior
Buyer’s behavior refers to the acts and decision process of the individuals that are
involved in purchasing and utilization of products (Rani, 2014). The company operating in the
competitive business environment analyzes the behavior of the consumers because of few
reasons-
Reactions of the buyers to the company’s marketing strategy have huge affect on their success.
Marketers of the industry predicts how their customers responds to their marketing strategies
The marketing theories stresses that the company must create the marketing mix in order to
analyze the buying patterns of the customers.
The types of customers buying behavior are basically determined by-
Involvement level in their purchase decision
Customers involvement level also helps to determine the reason behind their interest in seeking
information about the goods
Influences Definition Characteristics of consumers of fast
food and/or low calorie food

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Social Class ( middle
class, upper class
and lower class)
Cultural factors mainly
comprises of set of
ideologies as well as
values of the specific
community or the group of
people
The consumer that lies in this category consists
of both males and females. The customers
belonging to social class mainly possess varied
buying behaviours. It has been evident from
the above study, the Australians consumes
chocolates despite knowing the fact it is of high
calaroie.
Social
Influence of the
family
The requirement and
motives of the customers
gets influenced by theier
family, reference groups,
and opinion laeders
The consumer falling under this category gets
influenced by their family members and other
opinion leaders. The individuals sometimes
take the decision from their group members.
The Australians mainly ask for
recommendations from their senior members
before buying the chocolates.
Opinion leaders They are mainly
spokesperson. The
markets of the company
tries to attract these
leaders in order to
influence the consumers.
Reference groups The group members
positively and negatively
influences the attitude and
behaviour of persons

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Personal
Occupation The individuals
occupation has huge
affect on their purchasing
behaviour
Under this factor, the characteristics of
consumers of fast food involves-
 Low income as well as savings of
persons purchases cheap products.
Thus m they are strong headed
 Aggression and dominance influences
the buying patterns of customers
Economic situation The income as well as
savings of the customers
influences their buying
behavior
Personality As personality of the
individuals varies during
the time, it also influences
their purchasing
behaviour
Psychological
Perception There are various
perceptual procedure ,
which involves- selective
distortion, selective
retention and selective
distortion.
High level of motivation positively influences
the purchasing pattern of consumers
They are more focused on beliefs and learning
Strong attitude of persons enhances their
purchasing power
Beliefs and Attitudes The beliefs and attitudes
of the individuals towards
various products

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influences the customers
buying pattern
2.2 Microenvironment
These are the factors in the company’s immediate operations areas that impact their
performance as well as decision making freedom. These factors mainly involve – customers,
suppliers, producers, competitors and publics. However, these forces are mainly internal to the
companies.
2.2.1 Suppliers and manufactures
Both suppliers as well as producers plays huge role in the success of business. Producers
mainly rely on the suppliers for transporting the goods to the customers. In order to operate in
profitable manner, the manufacturers and suppliers provides good value to their consumers
(scott, 2018). As Donald B is the new player in this sector, they must use whole sellers for
distributing their chocolate in the Australian market.
2.2.2 Publics
The image of the firm mainly decides the future of the market. Brands having good image
in the market become successful in attracting their customers. Publics are basically the
environmentalists, media persons, consumer protection groups, investors, shareholders etc who
have direct contact with the company. The firm that gives their energy to manage their
relationships with these publics helps them to achieve success in the business. However, their
success in the market affects these people viewpoint in their activities. However, in the modern
world, pubic plays vital role in microenviroment of business.

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2.2.3 Competitors
The competition level in the industry has huge impact on the profit of the business. The
larger the total number of rivalries, the lower is their market share. In addition, the competition
pressure also compels the enterprise to update their activities as well as marketing strategies
(Fleisher & Bensoussan, 2015) Sometimes, competition also acts as positive factor and thus can
aid churn demand.
Competitor Overview of their
competing offerings
Target market Positioning
Mondelez Premium products is
one if the offerings that
this company is pushing.
They also increases
their healthier offerings
of product
Their target market is mainly
the emerging markets. They
reinvests their profits in these
markets in order to grow their
business
Mondelez has the leading position in
the market with near about 37% of the
value share. They have positioned
itself as the producer of premium
product brand.
Mars Their competitive
offerings are mainly
based on production
capacity, packaging
designs, pricing of
different packs, celebrity
endorsements etc.
Their main target market is
the health conscious
individuals and the children.
Moreover, they products
manufactured by them are
mainly based on the
preference of customers
Mars has well position in the
Australian chocolate market. It is the
second largest manufacturer of
chocolate in Australia with near about
18% share in the market. In fact, they
produces their chocolate from the
certified sources (Tudor &
Negricea,2012).
Lindt The product offerings
are suitable for the
Their target customers are
the age group of 25-30
Lindt is nit well positioned in the
Australian market as it accounts for

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individuals with lactose
intolerance. In fact, their
chocolate products are
mainly suitable for the
vegetarians
years. They have well –
defined target customers to
whom they offer products.
These are the customers that
spends more than average
on high quality product.
about 7% of the market share.
Products of
Woolsworth
Their competitive
offerings lies in the low
price offerings of the
product
Their target market involves-
low income and price
sensitive individuals.
It has good position in the Australian
chocolate market.
2.3 Macroenvironment
The macroenvironment forces consist of those forces that impact the economy and nit
just particular segments. These forces involve- demographics, technological, cultural, economic
and political factors.
Macro
Factor/Trend
Definition of Factor Explanation of trends / events relevant to fast
food or low calorie food
Demographic Various market segments are
affected by demographic forces
involving ethnicity, age, household
lifestyle etc.
As the lifestyle of Australian are high, the people living in
this nation do not hesitate in buying high priced product.
Moreover, the chocolate makers also produce chocolate
for all age groups.
Economic The economic factors are vital as
they impacts the spending and
Australia is considered as the good destination for doing
business. But the present climatic conditions increase

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buying patterns of customers.
Climatic conditions as well as
technological forces affect the
firms production and distribution
of goods.
difficulty for the chocolate producers to manufacture at
high rate. On the other hand, advancement in
technology in this nation helps the chocolate
manufacturer to produce innovative product.
Natural The renewal of natural resources
including forests, marine products
and the non- renewable resources
affects the production.
There are several renewable an non-renewable
resources in this nation, which positively affects the
business operations.
Technological Technology permits the firms to
know the amount of goods they
have in their warehouse. It also
helps in tracking, marketing and
communicating the products.
Emerging technologies in this nation helps the chocolate
makers to increase their total production.
Political Political environment impacts
marketing through laws,
government agencies etc.
Legislation also motivates trade
as well as competition in the
market.
Australia has good political system for tackling challenges
and thus he chocolate makers donot face any difficulty in
producing products. On the contrary, increased
regulation as well as legislation puts this industry under
huge strain.
Cultural These factors refer to customs,
culture and change in cultural
trend that changes the future of
company.
The Australian culture is the multicultural society.
However, this cultural trends positively affects the
chocolate industry in this nation.

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3 Conclusions
From the above study, it can be concluded that effective marketing strategy is vital for
every business especially for the new entrants. Donald B being the new chocolate maker in the
industry should focus on buyers behavior, microenvironment and macroenvironment forces.
Over the years, there has been rising trend in the chocolate market in Australia. As the
Australians become increasingly concerned about sugar as well as fat in foods, it weakened the
confectionary demand mainly mass-produced product. Even the chocolate makers of this
industry are focusing on producing premium products owing to increase in demand of customers.
As a result, the chocolate makers in this nation attain higher revenue and profit from the sale of
these products. However, huge competition in this industry puts pressure on Donald B to become
more innovative with their range of products. Thus, it is predicted that Donald B has good
potential to grow in this nation’s chocolate confectionary sector.

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