Detailed Marketing Report: Donald B's Confectionery Business Plan

This marketing report analyzes strategies for the confectionery business of Mr. Donald B, focusing on achieving organizational goals and maintaining a competitive edge in the market. The report begins with an introduction to marketing strategy and then delves into the identification of a target market and market segmentation, emphasizing the importance of psychographic segmentation. It then explores business positioning, recommending flexibility and quality positioning strategies. The report further examines product and service ideas, including various chocolate products and services, and outlines different product levels based on Kotler's five product levels. The report recommends pricing strategies, advocating for demand-based and cost-plus pricing, and also suggests both indirect and direct distribution strategies. Finally, the report explores promotional strategies, including brochures, television, and print advertising, to effectively promote Mr. Donald B's business.

Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Target market and segmentation...........................................................................................1
1.2 Positioning of new business..................................................................................................1
TASK 2............................................................................................................................................3
2.1 Ideas for products and services.............................................................................................3
2.2 Different product levels.........................................................................................................4
2.3 Recommended pricing strategy.............................................................................................5
2.4 Recommended distribution strategies...................................................................................6
2.5 Recommended promotional strategies..................................................................................7
2.6 Extended marketing mix.......................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing strategy is a long term plan for achieving organisational goals and sustain in
competitive market through various promotional activities. Different marketing mix strategies
are considered in the report as well for making decisions regarding price, product, distribution,
promotion, etc. of an organisation for its effective marketing plan.
TASK 1
1.1 Target market and segmentation
Marketing strategy refers to a long term future targeted approach for planning goals in
analysing the best market opportunities. Target market means place or market where the seller
has decided to sell their products or services. Whereas, market segmentation means to divide
market into sub groups like demography, geographic aspects, etc., for the people or customers
for whom product has been developed. Customers are been classified on the basis of their needs,
demands and wants. Psycho graphic segmentation have a main role in designing effective
marketing strategies for target customers and delivering good quality products (Baker, 2014).
Mr. Donald B has to adopt a perfect target market for launching his products on a large
scale. All people are being targeted, no matter what their age or gender. It is available for all
types of person whether rich or not, most of its product are affordable to all people. For making it
available and affordable for all it can be made available in various retail stores like Aldi, Coles
and Woolworth, etc. Through retail stores a large customer base is been focused and targeted for
sales of the chocolates products. Through establishing high end speciality stores only a specific
segment of customers can be targeted. Where customers of high segment or rich people are
focused through establishing high end speciality stores.
1.2 Positioning of new business
Positioning refers to occupying a market and creating an impression on customers' mind
about the business. Defining position of business in the market is the first thing that is included
in business or market plan (Jaworski, 2018). Feature of business such as experience, packaging,
etc., can be used for positioning Mr. Donald B's confectionery business brand and products in the
market. For an effective positioning strategy business should target a specific group of people for
whom the product has been made or targeted to. Demographical and attitudinal description is
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being studied or researched from the targeted group of customers for whom brand is appealing
and attracting.
Positioning theory refers to strategy adopted by company for choosing place where
organisation wants to place their products in the market based on their product, brand and
pricing.
Following are some strategies that can be used for positioning of products:
Cost Positioning strategy: Cost positioning strategy focuses on reducing of any wasteful or
unnecessary activity or procedures in an organisation and the saving from this is been transferred
to their customers. Organisation success is dependent on how they reduce costs of operation and
offers lower price benefits to their customers (Wensley, 2016).
Quality positioning strategy: Quality positioning strategy focus on providing quality of services
and products to their customers. Customers of a company avoid purchasing products if they
provide low quality of product and destroy company's credibility in market. Businesses invest
heavily on their operations and processes for developing high quality products. With high quality
product, company or business can have a high price tags on their product.
Flexibility positioning strategy: Flexibility positioning strategy helps company to change their
products and services according to customers' needs and wants. High level of competition arises
as business have the ability to change its products and services. Through large variety of
products offered, introducing new products or changing old products according to customers’
needs. This help them to differentiate themselves from their competitors in market (Schmidt,
Spann and Zeithammer, 2014).
For Mr. Donald's business, Flexibility and Quality positioning strategy would be a better
positioning approaches for their position decision in the market. As, he wants to focus on high
end customers who would buy high quality cocoa products from his businesses and could easily
afford high prices for quality products. Flexibility positioning strategy is also an effective as,
customers are satisfied through huge variety of products, and new flavours are been developed
for customers to attract more and changing or modifying old products.
Positioning map is a diagrammatic representation for showing the perception of different
customers on the basis of price, brand, product type, quality or other product specification.
Below is positioning map for new chocolate businesses:
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TASK 2
2.1 Ideas for products and services
Products and services offered by an organisation: Products and services plays an
important role in promoting, attracting customers and for the success of a business (Solberg,
2017). Mr. Donald B is a chocolate product maker who owns two stores in Melbourne and
produces various varieties of cocoa products.
Following are some ideas for products and services that can be offered to customers:
 Semi-sweet chocolate chips
 Milk chocolate chips
 Semi-sweet chocolate bars
 Milk chocolate baking bars
 White chocolate baking bars
 Milk chocolate almond bars
 Caramelized apples
 Crystallized or glazed fruits
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 Chocolate drinks
 Liquorice with different flavours
 Candied popcorn and nuts
 Marshmallows
Following are some services that can be offered are:
 Boxed chocolates
 Holiday specials gift packs
 Custom moulded chocolates
 Corporate gifts
 Parcel or shipping facilities
 Home delivery
The above mentioned products can be offered to consumers through various
distributional channels and through stores that he has set up for high end chocolate products. Mr.
Donald can offer to sell goods by supplying its product to different retail stores for making it
available to many customers. New products and services can be offered to customers through
following ways:
 Offer customers exclusive preview
 Email Marketing
 In-store promotions
 Stress the benefits
 Get customer spread the word by mouth marketing
2.2 Different product levels
Product level can be derived from three value drivers of product which include needs,
wants and demand for the product. All customers are different and have different uses of product
which business have to identify and develop it accordingly in order to satisfy their needs and
wants (Lagat and Frankwick, 2017). Various levels of products are determined by Kotler's five
product levels.
Below described are different levels of product for a business: Core benefit: Core benefit are those products which customers buys for satisfying the
fundamental needs and wants.
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 Generic product: Generic product are basic version made up of only some specific
features that are necessary for it functioning. Expected product: When customers buy a product they expect some set of features in the
product. These are products that customers normally expect to have a certain features and
characteristics and agrees when purchasing the product. Augmented product: Augmented product refers to product with extra features, or
services, attributes, benefits, etc. for differentiate it with their competitors’ product.
 Potential product: Potential products are products which includes all transformations and
augmentations that in future the product may undergo. Product is being augmented in
order to surprise customers (Hunt, 2018).
Application of Kotler's five product level for Mr. Donald's business: Core benefit: For core benefit or to just satisfy customers need Mr. Donald can have
simple chocolate products like bars, candies, etc. Generic product: Core benefits is transformed with specific ingredients like milk
chocolate bar, almond filled chocolate, etc. Expected product: Customer expects from manufacturer while purchasing is that, it
should be tasty, creamy and heavy as well as have innovative flavours. Augmented product: For having a product that exceeds the expectations of customer like
new flavours of chocolates, candies, or a new product. Ex- roasted almonds, fruits and
nuts, orange peels, etc. included in chocolates for a variety.
 Potential product: Products which are been developed for introducing a whole new
variety of chocolates.
2.3 Recommended pricing strategy
Pricing strategy refers to choosing right price for various products offered by an
organisation in the market for various customers. An effective pricing strategy is based upon
targeted customers and the strategies used by competitors.
Below listed are some pricing strategies that can be used by Mr. Donald: Skimming Pricing: It is a pricing strategy used when new product or services is been
launched in market. Cost plus pricing: Cost plus pricing is based on cost involved in producing the product
and are calculated by professional so it is accurate and reliable.
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 Demand based pricing: Prices are being set according to the demand of product in the
market and what customers like to pay. Competitive pricing: In this, the prices are being set keeping in view prices of its
competitors in market. It comes in effect when there is heavy competition in market.
 Discount Pricing: The buyers of the product gets to purchase at less price than its actual
price. It is adopted to increase sales in market (Davcik and Sharma, 2016).
The most effective and appropriate pricing strategy for Mr. Donald's products is of
having a demand based pricing and Cost plus pricing strategy. By adopting demand based
pricing strategy, he can set prices based on demand for those products. In cost plus pricing
strategy, priced are set based on the costs incurred in producing those products and in operations
or processes involved.
2.4 Recommended distribution strategies
Distribution strategy refers to those plans made for transferring or distributing its
products or services to its customers. Appropriate distribution strategies are to be used for
reaching far and distant places and for wider customer base.
Below are two distribution strategies at macro level that can be used:
Indirect distribution: In this manufacturer sells products to wholesaler and then to the retailers
who then finally sell it to ultimate consumers. Indirect distribution can be used by Mr. Donald
for having a large product base and make it available for most of the people. With indirect
distribution products can be offered to sell at retail stores or market and can be made available to
all customers for easily buy the product.
Direct distribution: In direct distribution strategy products are sold directly by the manufacturer
to its customers (Astuti, Silalahi and Wijaya, 2015). By adopting direct distribution strategy, Mr.
Donald can establish his own retail outlet for selling his products. He can also use online
platform for selling e product. By using direct distribution method, he can have direct contact
with his customers and personally know their issues, suggestions, feedbacks
If he is opting for direct distribution, then place or location for outlet are important
factors which are to be considered. The location for outlet should be at a prime location, where
most customers are accessible for business. If business is focused on high end customers, then a
high end speciality store is to be located at a place where most of rich or high class people visits
constantly.
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2.5 Recommended promotional strategies
Promotional strategies refer to adopting an appropriate marketing or promotional plans
for promoting various products and business in market. It is method used for advertising as well
as selling products and services of a business (Aghazadeh, 2015).
Below are some promotional strategies that are used for advertising products and services of Mr.
Donald's businesses: Brochures and flyers: Brochures and flyers are used for mass advertisement of the
products and business. It is a cheap method for promoting brand or products at high level
and to people who don't use any technologies. Television: Television also act as a medium for promoting and advertising product and
business at a wide area. It helps to promote business and product by attracting customers
through attractive contents using videos and dialogues. Print advertising: Print advertising involves media like newspapers, magazines, etc.
which is used by an organisation for promoting their business and product. It is a less
costly method of utilised for promotion and is circulated in a large area. Mails: For promoting business and its products or services to a selected group of people
email promotions are used. Through email promotion, selected products can be promoted
to targeted customers for whom product is developed. Word of mouth: Word of mouth is an effective promotional strategy where satisfied
customers promote business and product through sharing their experience with others. It
is a most effective method of promotion as loyal customers of business advertise products
or services to their friends and relatives as well as influence them to buy those products.
 Social media: Social media is one of traditional method that is used for promoting
business and its products. Various social media tools are used for promotions like
Facebook, twitter, Instagram, etc. It has become most effective medium for promotions
and advertising products and services (Chaffey, 2016).
2.6 Extended marketing mix
The extended marketing mix includes three more strategies that are process, people and
physical evidence. These above extended marketing mix strategies are explained below: Process: Process refers to procedures and flow of activities within organisation for
exchange of values. It includes all activities that are performed within the business for its
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successful smooth running. It includes making plans for the flow of product from
production to distributing and finally to customers. People: People are considered human resource of an organisation. They are asset for an
organisation. Mr. Donald should train and develop their employees for better productivity
and services.
 Physical evidence: Physical evidence refers to how product is physically appeared and
evidence of material part of services (Key and Czaplewski, 2017). It includes how the
chocolates are decorated, packaging is done, store ambience, etc. This all attracts
customers towards business and force them to buy products or services.
CONCLUSION
From this report we get to know about various marketing strategies that are used by an
organisation for successful business. Organisation should appropriately select its target market
and do market segmentations. Proper positioning strategies or approaches are to be used while
placing product in market. Decisions regarding various factors like its products or services,
pricing, distributional, promotional, etc., for smooth functioning of a business are made through
appropriate marketing strategies.
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REFERENCES
Books and journals
Aghazadeh, H., 2015. Strategic marketing management: Achieving superior business
performance through intelligent marketing strategy. Procedia-Social and Behavioral
Sciences, 207, pp.125-134.
Astuti, R., Silalahi, R.L.R. and Wijaya, G.D.P., 2015. Marketing strategy based on marketing
mix influence on purchasing decisions of Malang apples consumers at giant Olympic garden
mall (MOG), Malang city, East Java province, Indonesia. Agriculture and Agricultural Science
Procedia, 3, pp.67-71.
Baker, M.J., 2014. Marketing strategy and management. Macmillan International Higher
Education.
Chaffey, D., 2016. Statistics on consumer mobile usage and adoption to inform your mobile
marketing strategy mobile site design and app development. Mobile Marketing Statistics
compilation: Mobile Market Analytics.
Davcik, N.S. and Sharma, P., 2016. Marketing resources, performance, and competitive
advantage: A review and future research directions. Journal of Business Research, 69(12),
pp.5547-5552.
Hunt, S.D., 2018. Advancing marketing strategy in the marketing discipline and beyond: from
promise, to neglect, to prominence, to fragment (to promise?). Journal of Marketing
Management, 34(1-2), pp.16-51.
Jaworski, B.J., 2018. Commentary: advancing marketing strategy in the marketing discipline and
beyond. Journal of Marketing Management, 34(1-2), pp.63-70.
Key, T.M. and Czaplewski, A.J., 2017. Upstream social marketing strategy: An integrated
marketing communications approach. Business horizons, 60(3), pp.325-333.
Lagat, C. and Frankwick, G.L., 2017. Marketing capability, marketing strategy implementation
and performance in small firms. Journal for Global Business Advancement, 10(3), pp.327-345.
Schmidt, K.M., Spann, M. and Zeithammer, R., 2014. Pay what you want as a marketing strategy
in monopolistic and competitive markets. Management Science, 61(6), pp.1217-1236.
Solberg, C.A., 2017. International Marketing: Strategy development and implementation.
Routledge.
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