BMA 351 Strategic Analysis Report: Candy Crush Pie Marketing Plan

This report presents a strategic analysis of Black Velvet's plan to introduce Candy Crush Pie into the Australian market. It begins with an executive summary and introduction, followed by a detailed situational analysis, including market analysis, competitor analysis, and a macro-environmental analysis using PESTE and Porter's Five Forces models. A SWOT analysis identifies the product's strengths, weaknesses, opportunities, and threats. The report also defines the target market demographics and psychographics. Recommendations are provided to support the successful launch of Candy Crush Pie. The report concludes with references and appendices, including market data and economic growth information. The analysis highlights the competitive nature of the Australian confectionery market and the importance of targeting health-conscious consumers. This report offers valuable insights for students, particularly in the area of marketing management.

Running Head: MARKETING MANAGEMENT 0
Marketing Management
(Student Name)

MARKETING MANAGEMENT 1
1.0. Executive Summary
Marketing is used as one of the tactical tools to target the consumers. It is mostly used by the
companies to attract the consumers in an efficient manner. Black Velvet is the small bakery that
is planning to expand its business through inducing new and innovative product in Australia.
Candy Crush Pie will be the main product of the Black Velvet that will introduce in the
Australian market. Australia is one of the developed countries that include huge opportunity and
threats. The political and economic environment of the country is stable. The government
imposes less tax on small based companies that will enhance the chance for the Candy Crush pie
to target is consumer more efficiently. However, the Australian market includes huge level of
competition that will create threat for the Candy Crush Pie. The main competitors are local as
well as international café. Therefore, it is required for Black Velvet to target its consumers more
efficiently to target its consumers. The report will cover the analysis of Australian market as
well as the segment that will cover by Black Velvet to introduce Candy Crush Pie in the market.

MARKETING MANAGEMENT 2
Table of Contents
1.0. Executive Summary..............................................................................................................1
2. Introduction..................................................................................................................................3
3. Situational Analysis.....................................................................................................................3
3.1. Market Analysis....................................................................................................................3
3.2. Competitor Analysis.............................................................................................................4
3.3. Macro Environmental Analysis............................................................................................4
3.3.1. PESTE Analysis.............................................................................................................4
3.3.2. Porter Five Model...........................................................................................................5
3.4. SWOT Analysis....................................................................................................................6
3.5. Target Market........................................................................................................................7
3.6. Recommendations.................................................................................................................8
4.0. Conclusion................................................................................................................................8
5.0. References...............................................................................................................................10
6.0. Appendices.............................................................................................................................13
6.1. Market Analysis of Australia..............................................................................................13
6.2. Economic Growth of Australia...........................................................................................14

MARKETING MANAGEMENT 3
2. Introduction
Marketing play a vital role for introducing new product in the market. It is required for the
company to adopt effective marketing strategy to target its consumers more efficiently in the
competitive market (Baker, 2016). One of the small bakeries Black Velvet is planning to
introduce new pie in the market with the name of candy crush. The theme of the product will be
based on candy crush which will include different color of jelly’s that will be made from
different fruits and coffee beans. Such product will be healthy as well as tasty that will attract the
consumers towards the product in the efficient manner (Black Velvet, 2019).
In the following part there will be detailed analysis of the Australia market in which the candy
crush can be introduced in the market. The efficiently of the market will be analyzed accordingly
the product will be introduce in the market.
3. Situational Analysis
3.1. Market Analysis
The Australian confectionery industry has represented a high growth and development in the past
scenario. The Australian people are keen for coffee as well as innovative deserts. Australia
included in one of the few countries where in prompt the consumption of sweets is high. The
consumers in Australia are also keen to know about the foundation of the coffee beans and such
curiosity among the consumers provides an opportunity for the company to use such product as
the core one. The people are also switching towards healthy diet that forces the companies to
innovate new products in healthy manner. The people of Australia are keen about the taste of the
product with such effective prices (Watson et al., 2016).
The spending power of the consumers is high. The consumers are mostly attracted towards low
price product with high quality. The eating as well as traveling out are the aim leisure spending
activities among the customers of the Australia. The young generation of the country majorly
prefer low rice product. The consciousness towards the healthy food is increasing among the
people of Australia. The revenue of the industry is expected to enhance by annualized 2.7% over
the five years through 2019-20 that will reach up to $5 billion. Therefore, the size of the

MARKETING MANAGEMENT 4
confectionery part is big as well as it will grow further in the upcoming years in an efficient and
effective manner (Nayeem and Casidy, 2015).
3.2. Competitor Analysis
The main competitors of the company are local cafes and bakeries such as Cake Shop, Swizz
Bakers, and Christopher’s Cake Shop. The international cafes are the main competitor of the
Candy Crush Pie which includes Costa Coffee, Starbucks as well as Café Coffee Day. Local
bakeries offer similar Candy Crush Pie. The main competitor of Candy Crush pie is pastries,
cakes as well as other sweet dishes which is served by different cafes. They do not only offer
cakes or pastries but also offer other small snacks such as sandwiches, coffee, burger, pizza and
so on. Furthermore, the Starbucks, Costa Coffee as well as CCD offer variety of coffee to it is
consumers with delicious other snacks such as sandwiches, burgers, as well as other beverages
and so on. The industry is highly competitive in nature due to the main reason; the consumers are
keen for innovative food that attracts the new cafes or restaurants to enter in the market. It is
estimated that in the single street there are almost four to five cafes that enhance the competition
level in the industry to the certain extent (Cooper, 2015).
Black Velvet is the small player in the confectionery industry that will serve Candy Crush Pie to
its consumers. It is planning to expand its business at greater level therefore, it have decided to
introduce innovative product in the market to attract the consumers in an efficient manner.
The local bakery’s majorly offer similar product to the consumers at low price that attract the
consumer’s towards such bakery to the certain extent. Moreover, the international and top cafes
such as Starbucks, Costa Coffee, CCD has already set up their goodwill in the international
market that made them possible to make low efforts in attracting the consumers. Therefore,
through such method, the competitor positioned themselves in the market (Pulker, Scott and
Pollard, 2018)
3.3. Macro Environmental Analysis

MARKETING MANAGEMENT 5
3.3.1. PESTE Analysis
Political factor: The Australian Government has introduced various rules and regulation to
revoke unhealthy competition in the market. It controls the market through introducing unfair
trade practice so that the consumer can able to get product at reasonable price (Labonté et al.,
2018).
Economical Factor: the economic growth and stability of Australia affect the income and
revenue of the companies to the certain extent. The government of Australia impose low tax rate
on Bakeries as well as most of the product of bakeries are free from taxes that represent that
positive aspects of the development of confectionery industry. The Australian Government also
cut down its tax rate from 28.5% in the year 2015-16 to 27.5% in the year 2016-17. Therefore,
the government supports the small companies to run its business more efficiently (Marks, 2016).
Social Culture Trends: The lifestyle of the people in Australia is significantly changed. The
people in Australia are becoming more health conscious and try to change their eating habits.
They are dedicated towards the healthy lifestyle that force them to consume healthy diet to the
certain extent they majorly prefer fruits, sprouts and lots of vegetables in the food that make
them to live healthy life. Therefore, the Candy Crush Pie is made of fruits that represent healthy
dish with tasty one (Chen, Ling and Renzaho, 2017).
Technological Advancement: Australia is one of the developed countries with the advanced
technology that is being used in all type of industries. The companies in Australia used advanced
channels for marketing its product which include digital marketing as well as social media.
Therefore, it will support Candy Crush Pie to use such channel to market its product more
efficiently (Cassidy and Kosev, 2015).
Environmental Factor: The government of Australia developed the policies in term of reducing
waste, building green as well as recycling to protect the environment of the country in an
efficient manner. Therefore, Black Velvet is required to use ecofriendly plates to serve Candy
Crush Pie and try to take initiative in reducing wastage that will attract the consumers (Fatima,
Khan and Goh, 2016).

MARKETING MANAGEMENT 6
3.3.2. Porter Five Model
Threat of new entrants: The threat of new entrants in such industry is high due to the main
reason the government of Australia has provided various exemptions on tax in such industry that
attract the new entrants to enter in such market. Moreover, the demand of consumers towards
tasty food and beverages is increases at greater level that forces the small companies to enter in
the market (Azisah, 2017).
Bargaining power of Consumers: The bargaining power of the consumers in such industry is
medium due to the main reason the people are keen for innovative food and they majorly prefer
quality food with healthy one. Therefore, they mostly compromise with the prices if the quality
of the product is good. However, the youngsters mostly prefer low price product. They majorly
get attracted towards low cost product that forces the café to set up nominal process of its
product (Campbell, Boese and Tham, 2016).
Threat of Substitute: The threat of substitution in such industry is high. The main substitute
products of candy crush pie can be cake or pastry or other flavored pies. Such substitution
creates great impact on the sales of Candy Crush Pie for the Black Velvet. It is one of the risky
products that can enhance the revenue of the Black Velvet or can make them down in the market
(Aknesia, Daryanto and Kirbrandoko, 2015).
3.4. SWOT Analysis
Strengths Weaknesses
 Candy Crush Pie will be presented in
innovative manner. It maintains unique
style to target its consumers.
 It maintains its quality in the
competitive market that attracts the
consumers.
 It will include various fruits with
 Candy Crush Pie is the mixture of
various flavors. Therefore, it makes
the flavor strong that may not like by
new people.
 The price of Candy Crush Pie is high
as compering with its competitors that
created an issue for the Candy Crush

MARKETING MANAGEMENT 7
variety of flavors that will attract the
children as well as adult in an effective
manner.
Pie to lose its consumers.
Opportunities Threats
 The tax rate in Australia is low that will
provide an opportunity to the Candy
Crush to control over its cost that will
make them possible to cater its product
at low price.
 The online order facility will provide
new market to the Candy Crush Pie to
target its consumers
 The substitute of Candy Crush Pie is
one of the biggest threats for them.
They generally provide attractive offers
to its consumers.
 The innovation process will create
threat for the Candy Crush Pie that the
product will be run successfully or not.
 Change in taste and preferences are also
the main threat for the Candy Crush Pie
that may cause loss of business (Gürel
and Tat, 2017).
3.5. Target Market
Demographic and psychographic are the target market segment that will be adopted by Black
Velvet to target its consumers for Candy Crush Pie. The economic condition of Australia is
better than other countries that enhance the purchasing power of the consumers in an efficient
manner. It is divided into different variable that are explained in the below points:
Group of Age The young generation are available in between the age of 10-38
Religion All type of religion are available in the country

MARKETING MANAGEMENT 8
Lifestyle The individual are conscious towards healthy lifestyle and attracted
towards innovative product
Gender Cover both Men as well as Women
Income The average range of income in Australia are $15000 to $60000
Therefore, Candy Crush Pie will target the consumers for its product is between the ages of 10-
38 years old due to the reason the kids will love to eat jelly related product and other young
generation will love to try new product in the market. It will target both men and women for its
product to wider the range of target market. The average income that prefer for Candy Crush Pie
will be between the ranges of $15000 to $45000. The health conscious people will be also the
target consumers for Candy Crush Pie (Knox, 2016).
3.6. Recommendations
The strategy that will be adapted to introducing product in the market is the complementary
offer. In such offer, the candy crush jelly will be provide at free of cost to the consumers whose
visiting is more than 5 times in a month at Black Velvet. It will force the consumers to visit
more to avail that offer. Such strategy is used due to the main reason, the people have curiosity to
try new dish at free of cost. Such strategy will continue for three months to understand the taste
of the consumers.
The product will be mixture of jelly fruits and coffee that will create the taste of sweet and
strong. It is none of the innovative dish that no one has tried it yet and every one like candy crush
that will be the main benefit for the product. This product idea will be very successful due to the
reason it attract health conscious people, game lover, as well as children for jelly that will cover
wider range of consumers in an efficient manner. Therefore it is highly recommended to
continue with such product to achieve great success in the market (Mkrttchian et al., 2019).

MARKETING MANAGEMENT 9
4.0. Conclusion
From the above analysis it can be concluded that Candy Crush pie can enter in the Australian
Market due to the reason, the demand of confectionery product in such industry is high. The
people are keen for innovative product that will provide an opportunity for the Candy Crush Pie
to target its consumers more efficiently. Furthermore, the political and environmental factor of
the country is also represents as positive side that will help in enhancing the overall revenue of
Black Velvet in an effect manner. Candy Crush Pie is one of the different concepts that Black
Velvet can introduce. The game lover and health conscious will enhance the demand of Candy
Crush.

MARKETING MANAGEMENT 10
5.0. References
Aknesia, V., Daryanto, A. and Kirbrandoko, K. (2015) Business development strategy for
specialty coffee. Indonesian Journal of Business and Entrepreneurship (IJBE), 1(1), p.12.
Allied Market Research. (2019) Sugar Confectionery Market Overview: [Online]. Available
from: https://www.alliedmarketresearch.com/sugar-confectionery-market [Accessed on
30/07/19]
Azisah, S. (2017) August. Building Indonesia's Micro Small and Medium Entreprise; Lesson
Learned from Australian SME. In 8th International Conference of Asian Association of
Indigenous and Cultural Psychology ICAAIP 2017
Baker, M. J. (2016) What is marketing?. In The Marketing Book (pp. 25-42). London: Routledge.
Black Velvet. (2019) Abut Us [Online]. Available from: https://bvsydney.com.au/?
utm_source=business.google.com&utm_medium=organic&utm_campaign=Google%20My
%20Business&utm_plasource=Google%20My%20Business%20Website%20URL [Accessed on
30/07/19]
Campbell, I., Boese, M. and Tham, J.C. (2016) Inhospitable workplaces? International students
and paid work in food services. Australian Journal of Social Issues, 51(3), pp.279-298.
Cassidy, N. and Kosev, M. (2015) Australia and the global LNG market. RBA Bulletin, March,
pp.33-43.
Chen, W., Ling, L. and Renzaho, A.M. (2017) Building a new life in Australia: an analysis of the
first wave of the longitudinal study of humanitarian migrants in Australia to assess the
association between social integration and self-rated health. BMJ open, 7(3), p.e014313.
Cooper, M. (2015) Confectionery: Product shapes and their ability to function as trade
marks. Food Australia, 67(5), p.24.

MARKETING MANAGEMENT 11
Crothers, L. (2018) Retail Food Sector Report 2018 [Online]. Available from:
https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Retail
%20Foods_Canberra_Australia_7-3-2018.pdf [Accessed on 30/07/19]
Fatima, J.K., Khan, H.Z. and Goh, E. (2016) Environmental knowledge and behavioural
outcomes of tourism students in Australia: towards testing a range of mediation and moderated
mediation effects. Environmental Education Research, 22(5), pp.747-764.
Gürel, E. and Tat, M. (2017) SWOT analysis: A theoretical review. Journal of International
Social Research, 10(51).
Knox, A. (2016) Coffee nation: an analysis of jobs in A ustralia's café industry. Asia Pacific
Journal of Human Resources, 54(3), pp.369-387.
Labonté, R., (2018) From Mid-Level Policy Analysis to Macro-Level Political Economy:
Comment on" Developing a Framework for a Program Theory-Based Approach to Evaluating
Policy Processes and Outcomes: Health in All Policies in South Australia". International journal
of health policy and management, 7(7), p.656.
Marks, G.N. (2016) The relative effects of socio-economic, demographic, non-cognitive and
cognitive influences on student achievement in Australia. Learning and Individual
Differences, 49, pp.1-10.
Mkrttchian, V., Veretekhina, S., Gavrilova, O., Ioffe, A., Markosyan, S. and Chernyshenko, S.V.
(2019) The Cross-Cultural Analysis of Australia and Russia: Cultures, Small Businesses, and
Crossing the Barriers. In Industrial and Urban Growth Policies at the Sub-National, National,
and Global Levels (pp. 229-249
Nayeem, T. and Casidy, R. (2015) Australian consumers' decision-making styles for everyday
products. Australasian Marketing Journal (AMJ), 23(1), pp.67-74.
OECD (2019) Reform Priorities [Online]. Available from:
http://www.oecd.org/economy/australia-economic-snapshot/ / [Accessed on 30/07/19]

MARKETING MANAGEMENT 12
Preston, G. (2017) Sydney’s Dynamic Food Industry Outlook [Online]. Available from:
http://www.prpsydney.com.au/3340-2/ [Accessed on 30/07/19]
Pulker, C.E., Scott, J.A. and Pollard, C.M. (2018) Ultra-processed family foods in Australia:
nutrition claims, health claims and marketing techniques. Public health nutrition, 21(1), pp.38-
48.
Watson, W.L., Kury, A., Wellard, L., Hughes, C., Dunford, E. and Chapman, K. (2016)
Variations in serving sizes of Australian snack foods and confectionery. Appetite, 96, pp.32-37.

MARKETING MANAGEMENT 13
6.0. Appendices
6.1. Market Analysis of Australia
(Source: Preston, 2017)
(Source: Allied Market Research, 2019)

MARKETING MANAGEMENT 14
(Source: Crothers, 2018)
6.2. Economic Growth of Australia
(Source: OECD, 2019)