Marketing Strategy and Analysis Report: Donald B. Chocolate Company

This report provides a comprehensive analysis of the marketing strategies for Donald B. Chocolate, a newly established company in Melbourne, Australia. It begins with an executive summary and an introduction outlining the report's objectives. The core of the report focuses on defining the target market, recommending segmentation strategies based on geographic, demographic, behavioral, and psychographic factors, with an emphasis on expanding the age range to include children. The report then discusses the positioning of the business, highlighting the importance of creating a strong brand image and adapting to social, political, and economic factors. A detailed marketing mix is presented, including product and service offerings, different levels of product analysis (core, generic, expected, augmented, and potential), pricing strategies, distribution channels, promotional strategies, and an extended marketing mix. The report concludes with a summary of key findings and recommendations for Donald B. Chocolate to achieve competitiveness in the market.

Running head: MARKETING AND STRATEGY
Marketing and strategy
Name of Student
Name of University
Author Note

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MARKETING AND STRATEGY
Executive Summary
The report focuses on the marketing strategy adopted by Donald B. Chocolate. It is a newly
established company situated in Melbourne, Australia. After analysing the external and
internal environment, the marketing strategy of the company is discussed. The target market
of the company is discussed by the use of market segmentation. Donald B. Chocolate needs
to be positioned at a place that can be easily accessed by marketers as well as customers. A
marketing mix conducted that defines the use of various strategies such as advertising for
promotion and high-low price strategy. The different levels of products are analysed along
with the extended marketing mix to relate to the overall marketing strategy of the company.

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MARKETING AND STRATEGY
Table of Contents
Introduction................................................................................................................................3
Marketing strategy.....................................................................................................................3
a. Recommended target market..............................................................................................3
b. Positioning of the business.................................................................................................5
Marketing mix............................................................................................................................6
a. Ideas related to offering products and services...................................................................6
b. Different levels of product..................................................................................................7
c. Pricing strategy...................................................................................................................9
d. Distribution strategy.........................................................................................................10
e. Promotional strategy.........................................................................................................11
f. Extended marketing mix...................................................................................................11
Conclusion................................................................................................................................12
Reference..................................................................................................................................13

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MARKETING AND STRATEGY
Introduction
The report highlights the marketing strategies that Donald B. Chocolate needs to
undertake in order to establish competitiveness in the market. The target market of the
company is presented in the report along with the positioning of the business. A
comprehensive marketing mix is conducted that provides ideas about related product and
services.
Marketing strategy
a. Recommended target market
The recommended target market of Donald B. Chocolate includes people that range
from ages 18-35 years old. However, in order to conduct a successful business, it is necessary
that the marketing managers of the company ensure that people below 18 years of age are
also targeted. This is mainly because of the fact that children love the consumption of
chocolate products. According to Armstrong (2015), with a higher number of children in the
country, Donald B. Chocolate can aim at this section of the population to gain the maximum
number of sale. In this regard, market segmentation can be done that outlines the factors
required to be considered.
Geographic Demographic Behavioural Psychographic
The geographic
location includes the
residents of the
customers. The
location of each
customer needs to be
The demographic
condition includes
the age, social status,
gender and the
occupation of the
target people. The
The behavioural
factor needs to be
determined based on
the benefits that are
provided to the
customers and the
According to Keegan
and Green (2015),
the psychographic
factors include the
lifestyle and the
personality of the

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MARKETING AND STRATEGY
detailed so that the
transportation of the
goods becomes easy.
It may be beneficial
for Donald B.
Chocolate to target
children residing in
the areas of the
business. It has been
seen that the
company conducts
business in transport
linkage places in
Melbourne. Hence,
the company can
target children
residing in that
region or visiting the
transport station for
travelling in order to
increase its
reputation as well as
revenue.
importance of this is
that the products can
be formed based on
the people residing in
a society (Chernev,
2014). For Donald B.
Chocolate this factor
is important as the
range of age of the
people varies a great
deal. It is seen that
the company targets
both male and
female. It is
recommended now
that the company
target children of
varied ages. Hence,
the age range can
change to 10-35
years of age.
rate of use of the
product. In this case,
the rate, at which the
products are being
consumed are taken
into consideration.
The age range of the
target customers and
the positioning of the
company can be
beneficial in gaining
a proper response.
However, the health
conscious people
need to be analysed
as most people may
fall ill due to the
consumption of
chocolates, as it is a
dairy product.
people. Donald B.
Chocolate does not
have to deal with this
factor as most people
in different age
groups prepare to
have chocolates.
Irrespective of the
lifestyle and the
personality traits of a
person, chocolate
products are
consumed without
much complaint.
However, people
with lactate
intolerance may not
find such
consumption
difficult.
Table: Market segmentation
(Source: Created by author)

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MARKETING AND STRATEGY
b. Positioning of the business
Hollensen (2015) stated that positioning defines a particular place occupied by a
brand. The positioning of a brand or market contributes heavily to the success or failure of a
market. Positioning is done to create a strong brand image. However, once the image has
been building it may be difficult to re-position itself in a new location. Thus, the initial
selection of a positioning approach needs to be undertaken so that sudden changes in the
organisation do not take place. In the case of Donald B. Chocolate, the company has already
positioned itself in an area that is frequented heavily by customers. This provides a strong
positioning for the company, as the people demand various types of chocolate products from
the company. This provides an opportunity to increase its revenue and create a strong
position in the Australian business market. In this regard, the positioning theory can be
discussed.
As stated by Moutinho (2014) positioning theory keeps in mind that not every person
in a society has any equal opportunities to visit stores. It is about using words that help in the
location of a particular product. The construction of social reality can help in the better
positioning of an organisation. In the case of Donald B. Chocolate, the social reality of its
consumption includes the manner in which the chocolates are consumed. Targeting children
can help the company increase its positioning structure as the people frequenting the transport
areas can purchase the products. Moreover, certain factors such as political, environmental,
economic and social factors may also contribute to the effectiveness of positioning. The
Government of Australia may ban conducting business in front of transport terminals in order
to maintain cleanliness in the place. The social status of an individual may be such that
people tend to purchase the product online rather than visiting. However, in order to do this,
Donald B. Chocolate need to create an official website.

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MARKETING AND STRATEGY
In this regard, it can be said that Donald B. Chocolate need to identify a proper
positioning approach in order to mitigate the threats. Donald B. Chocolate can use product
characteristic approach for the attracting customers. It has been seen that the company
provides different chocolate products that meet the requirements of the customers. These
products are provided based on the characteristic possessed by the chocolates offered. The
health factors of the people need to be taken into consideration while applying the product
characteristic positioning approach.
Marketing mix
a. Ideas related to offering products and services
After analysing the target market and positioning of the company, it can be said that
the Donald B. Chocolate may look to provide the best quality product and provide easy,
quality service to the customers. Foxall (2014) stated that a unique offering of products and
special services might help an organisation to build a reputation in a society. In the case of
Donald B. Chocolate, the products offered by the company include chocolate products of
various types. The products are differentiated keeping in mind the health of the customers. It
is seen that the dark chocolate products provide rich anti-oxidants that provide customers
with an opportunity to meet its health benefits. The products are also aimed so that it meets
the lifestyle of the people. It has been seen that the Australian people remain health conscious
and prefer to eat healthy so that disease does not occur. The behaviour of the customers in
terms of purchasing of the products provide a better understanding of the target market
(Hanssens et al., 2014).
The services provide is also important to consider as people expect good quality
service along with good quality products. Irrespective of the service place, people generally
prefer quick service of the demands (Grönroos, 2017). Donald B. Chocolate needs to consider

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MARKETING AND STRATEGY
this as one of the most important factors. It has been seen that serving the products in
transport junctions may be hectic as the demand may be high for different people. Hence, in
order to ensure that products and services are provided in a proper manner, Donald B.
Chocolate can introduce a system of purchasing via tickets. Every member requiring
chocolate products will be provided with tickets and based on the number of the tickets; the
customers can get their desired product. This can reduce chaos and satisfy customers.
b. Different levels of product
Aras et al., (2017) stated that a product consists of five level based on which the
perception of a customer can be understood. These levels highlight the indication that the
customers perceive a product thoroughly by analysing it from every manner. Customers can
be satisfied if the specified value of a product is identical or higher than the value provided to
the customers. The five product levels include:
Core product: This represents the fundamental needs and wants of a customer. This
highlights the basic purpose for which a particular product was intended. Satisfaction of the
customers is depended upon the quality of the products and if the product serves the basic
purpose. In the case of Donald B. Chocolate, the core purpose of the product is to provide a
fancy consumption for the people. The fondness of the children upon consuming the
chocolate products forms the basic purpose of the marketing.
Generic product: According to Barrett and Weinstein (2015), the generic product
level consists of all the characteristics of a product. The ingredient used for manufacturing
and the designing of the product are highlighted at this level. Customers perceive the ability
of a product to perform a multipurpose role. For example, the chocolates manufactured by
Donald B. Chocolate need to tasty, low in fat and cholesterol in order to maintain the health
of the people.

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MARKETING AND STRATEGY
Expected product: This includes aligning the expectations of the buyers along with
the final product. Once a product is launched, customers tend to expect that the product may
be innovative and different from others. This needs to align with the final product after it has
been manufactured. The expectations from Donald B. Chocolate can be high as the company
promises to bring new chocolate products to the market.
Augmented product: West, Ford & Ibrahim (2015) considered this as an important
level of product, as the additional features in a product may prove the difference in gaining
competitive advantage. This additional feature may prove it to be different from the
competitors and as a result, people may be attracted to purchase it. Donald B. Chocolate can
introduce chocolates mixed with ice cream in order to differentiate its products from the
competitors.
Potential product: This includes a future transformation of products. In order to
ensure that customers do not find a single product monotonous, companies look to innovate
or evolve a product. Donald B. Chocolate can increase the number of chocolates that exists in
any gift packet or look to change ingredients for a particular product.
CoreGenerExpectAugmenPotent

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MARKETING AND STRATEGY
Figure: Product levels
(Source: Erragcha & Romdhane, 2014)
c. Pricing strategy
In order to ensure that the products are sold at a rapid pace, organisations undertake
pricing strategies that may be beneficial. These strategies provide an opportunity to identify
the best practice that can be adopted in order to gain competence in the market. Solomon
(2014) stated that pricing strategies result in addressing every possibility that an organisation
can undertake in order to sell its products. However, the strategies undertaken need to assist
the interest of the customers as well. Hence, it is necessary to analyse the strategies and the
condition of the market before applying a strategy. In this regard, it can be said that Donald
B. Chocolate can apply a similar pricing strategy in order to increase its potential in the
Australian market. The pricing strategy that can be undertaken by the company includes the
high-low pricing strategy.
This strategy allows companies to keep the marked price higher than the competitors.
This provides the company with an edge to gain more revenue than its competitors. At the
same time, it is seen that with the help of promotions and other advertising campaigns the
price of the products is lowered during its final sell to the customers. This strategy helps in
ensuring that the competitors make their product expensive while the concerned organisation
sells similar products at a cheap price and maintain its profitability (Dietrich, Rundle-Thiele
& Kubacki, 2016). Hence, the choice of this strategy can be beneficial for Donald B.
Chocolate as the company is newly established.
Given the nature of competition, it faces from companies such as Venga Pty Ltd, the
adoption of high-low pricing strategy can be beneficial. Based on the fluctuation in the

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market and the demand of the customers, the company can adjust its price. This strategy is
also recommended, as the company need to target children as primary customers.
d. Distribution strategy
According to Kasper (2014), before determining a proper distribution strategy, it is
important that an organisation identify a distribution channel. Certain factors exist that
determines the choice of the distribution strategies. These factors include the type of products
that are to be distributed. This includes the rate of the perishability of the products. In the
case of Donald B. Chocolate, such factor can be considered as chocolate products succumb to
quick damage. It may create health concerns for the people consuming it. Hence, three
approaches can be adopted for the distribution of products. These include mass distribution,
selective distribution and exclusive distribution. These types vary depending upon the
challenges faced in the market and the reputation it has in the market (Londhe, 2014).
In this case, Donald B. Chocolate may choose a mass distribution. Customers can
reach the target in this one way and ensure that profitability is obtained. The target market of
the company needs to be the children hence, it is necessary for the Donald B. Chocolate to
undertake mass distribution as children fall under a mass category of people. The outlets of
the company already exist in transport line that is visited by many people. The company can
consider such a strategy as a masterstroke as people can be found in abundance in this area.
Apart from this, the company can indulge in franchise marketing so that they can spread in
many areas within a society. For example, creating an outlet in front of schools located in
Melbourne can help the company reach its target market. Thus, direct mass distribution of the
chocolate products can be provided by the market.

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MARKETING AND STRATEGY
e. Promotional strategy
After analysing the distribution channel and the pricing strategy, it is necessary to
identify a proper promotional strategy. Armstrong et al., (2015) stated that promotion of a
product is important in order to publicise the products to the customers. Promotion displays
the type of product, its features, extra features, price and the benefits of purchasing these
products. Hence, it is required that a suitable strategy is adopted that helps in the smooth
publicity of a product. In this regard, it can be said that Donald B. Chocolate need to adopt
the advertising strategy. According to Cross, Belich and Rudelius (2015), advertising is one
of the old school methods of promoting a product. Advertising can be done in the form of
print media or visual media. In the modern world, advertising is done in social media in order
to attract every customer around the world. The target of Donald B. Chocolate are people
aged between 18-35 years. The children may not be having social applications, but the adult
people may use the social networks to visit the website and shop online. Furthermore,
commercials on television can attract people. However, as per Payne & Frow (2014), the
commercial advertisement needs to be done based on the popularity of a particular show.
Hence, it can be said that Donald B. Chocolate can promote the products by setting up an
advertisement in popular children television shows. This can help the company to attract the
children and make them the primary target market.
f. Extended marketing mix
The extended marketing mix consists of the people, process and physical evidence.
These provide additional support to the original marketing mix elements and are considered
as equally important in terms of gaining competitive advantage.
People: According to Proctor (2014), this consists of the target market without which
an organisation cannot function properly. The people of a society are determined by market
segmentation based on it the product is manufactured. This is one element in the marketing