Marketing Plan for Donald B Company: Global Market Expansion

This report presents a comprehensive marketing plan for Donald B Company, a chocolate producer based in Melbourne, Australia, aiming for international expansion. The executive summary highlights the importance of marketing in the 21st century and the need for a strategic marketing plan. The report delves into various aspects, including recommended growth strategies such as market penetration, market development, and diversification, based on the Ansoff Matrix. It explores market segmentation strategies like demographic, geographic, and psychographic segmentation to identify the target market. Furthermore, the report discusses positioning strategies, including the physical characteristics, price-quality, and competitors' approaches, to establish a strong brand image. The marketing mix elements – product, price, distribution, and promotion – are analyzed, along with an extended marketing mix encompassing people, process, and physical evidence. The report concludes with a summary of the analysis and references, providing a valuable resource for students studying marketing strategies and business development.

Running Head: MARKETING 1
Marketing

MARKETING 2
Executive Summary
In the 21st century, marketing has extremely emerged and it has become a vital component of
business operations. Considering this importance, today’s companies are focused on preparing
marketing plans for their new products and services. Designing of marketing plans is essential to
organizations. The major objective of this report is to discuss about the marketing plan of Donald
B Company. Donald B is a small chocolate producer that has two outlets in Melbourne,
Australia. Now, the company is planning to expand its business in international markets. In this
report, here is the discussion about targeting, market segmentation and positioning approaches
which Donald B can adopt to deal with the competition in foreign market. The report consists of
marketing mix strategies which can support the firm to attain its marketing objectives and attract
more customers.

MARKETING 3
Table of Contents
Introduction.................................................................................................................................................4
Company Description..................................................................................................................................4
Recommended Growth Strategy.................................................................................................................4
Market Penetration.................................................................................................................................5
Market Development..............................................................................................................................5
Diversification..........................................................................................................................................5
Market Segmentation Strategies.................................................................................................................6
Target Market..............................................................................................................................................6
Positioning Strategy.....................................................................................................................................7
Physical Characteristics Approach...........................................................................................................7
Price Quality Approach............................................................................................................................8
The Competitors Approach......................................................................................................................8
Elements of Marketing Mix.........................................................................................................................8
Product....................................................................................................................................................8
Price.........................................................................................................................................................9
Distribution............................................................................................................................................10
Promotion..............................................................................................................................................10
Extended Marketing Mix...........................................................................................................................11
People....................................................................................................................................................11
Process..................................................................................................................................................11
Physical Evidence...................................................................................................................................11
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12
Appendix:..................................................................................................................................................13
Summary of Analysis.............................................................................................................................13

MARKETING 4
Introduction
Marketing is the process of developing and implementing different activities and processes for
promoting new products and services in the marketplace. Today, each and every business aims to
expand and develop business activities in foreign market (Chernev, 2018). This report is focused
on developing a marketing plan for Donald B Company that is producing and offering chocolates
all over the world. The organization aims to expand its business in Australia and spread the
operations in global world. On the basis of first assessment, this report includes growth strategy
for the company in new market. In the first section of the report, there is the discussion about the
target market and strategies to attract that potential market. The organization will be making
effective strategies to entice its customers. Moreover, positioning strategy and approach of
Donald B is discussed. At the end, the report includes all the components of marketing mix. This
part describes that how this company uses marketing mix framework to deal with the competing
brand in new market.
Company Description
Donald B is well-known chocolate producer that owns two stores in Melbourne, Australia.
Primarily, the company offers chocolate and confectionary products. The main business
objective of this company is to emerge and improve its brand presence in global industry. By
developing its products and services, the company aims to deal with the competitive threat from
producers of cocoa products, candied nuts, glazed fruit etc. In Australian market, Donald B is
planning to seek the support from supermarkets like Woolworths and Coles so that it can
increase its sales in perspective market (Weinstein & Pohlman, 2015). In today’s competitive
business environment, this firm needs to emphasize on external market factors in order to gain
more competitive advantage. From the previous assessment, it is identified that Donald B should
develop effective strategies to overcome the impacts of environmental factors and maximize the
positive outcomes.
Recommended Growth Strategy
Growth strategy of any company can be identified by using Ansoff Matrix framework. It assists
the organization in developing its marketing strategies.

MARKETING 5
The recommended growth strategies for Donald B are discussed below:
Market Penetration
Under this growth strategy, this company should make efforts to grow its business by using its
existing chocolates in existing market i.e. Australia. By using this, the company can focus on
increasing its market share in the current marketplace (Saltini & Akkerman, 2012). This firm
should make changes in its pricing strategies so that it can target new customers in existing
market. For example, it needs to decrease the prices of products considering the targeted
audiences.
Market Development
Market development is also an effective strategy that can be used by Donald B in its operations.
By using this growth strategy, the organization should try to expand into new and emerging
markets with its existing chocolate and confectionary products. It can offer its existing
chocolates in new market. In overseas market, this company can have the benefits due to strong
economies (Gutiérrez, 2017).
Diversification
In addition to above strategies, Donald B Organization should implement diversification as its
growth strategy. The company should try to increase its market share by launching new products

MARKETING 6
in new markets. In the future, the company should plan to diversify its products by entering into
new industry like retail food industry (Hackley & Hackley, 2017).
Market Segmentation Strategies
When any organization plans to expand its business operations in new market, it needs to focus
on a specific segment of the country’s population. Market Segmentation is an important process
for each and every organization. In the new market, Donald B can target its customers by using
different approaches of market segmentations which are discussed below:
Demographic Segmentation
Under demographic segmentation, the company should divide the mass market on the basis of
different characteristics like gender, age, occupation and income. As the company is offering
chocolate and confectionary products to its customers so it should focus on the age group of 15
to 35 years. The major emphasis of the company should be on the young girls and boys as they
prefer to gift chocolates to their loved ones on any special occasion. The company should use the
affordable pricing strategy and target middle income level people. Under occupation, it can
target students, sports person and business professionals (Clarence-Smith, 2016).
Geographic Segmentation
Under this, Donald B should focus on offering the chocolates in the nearby countries like New
Zealand. Moreover, the market for chocolate products depends on the weather like cold, hot
weather (Huang & Sarigöllü, 2014). The company should distribute its chocolates to the people
in both urban and rural regions.
Psychographic Segmentation
This company should focus on its customers by considering different characteristics like
personality, social class, attitudes, lifestyle etc. It should offer its chocolates to middle class
people and the people who love to try different tastes of chocolates (Gallo, Antolin-Lopez &
Montiel, 2018).

MARKETING 7
Target Market
Target market has an important role in every company to generate more profits and revenues in
foreign market. It can assist the company to deal with the competing brands. In international
market, Donald B needs to offer chocolates and other products considering the needs and
demands of customers (Weinstein & Pohlman, 2015). Considering the above segmentation
characteristics, Donald B would focus on young business professionals who come under the age
group of 15 to 35 years. Currently, this company is operating its business as small business
enterprise and now it is planning to expand the business in overseas market. If this firms wishes
to establish its brand in foreign market then it should emphasize on the needs and demands of
customers. By recognizing most appropriate targeted market, Donald B will be able to enhance
its brand image in the foreign market. Donald B should emphasize to provide benefits to the
customers for which they are seeking for. The above chosen customer segment is looking for
chocolates and confectionary products with tasty and quality ingredients (Ramli, 2017). These
customers are looking for the benefits like quality of service, delivery speed, customer support,
friendly staff etc. In new country, Donald B would be targeting the people by analyzing the
benefits and needs which they are seeking for.
Positioning Strategy
Positioning refers to an expression of how a product or service can be positioned in the market
place. It expresses that how company’s product offerings can fulfill the needs and wants of
customers in a manner that its competing brands don’t do. As per positioning theory, positioning
is a process to identify the most appropriate customer segment for a particular product or service.
It is also a significant strategy which can be used by Donald B so that it can make positive
perception among its potential customers (Passmore, Howell & Holder, 2017). In order to
position its products, Donald B emphasizes on its brand image, product ingredients, distribution
channels and competitors’ strategies. Positioning theory states that market positioning is the term
that refers to the place which a company occupies in the customers’ minds and how it is
differentiated from the competitors’ products. To place new products in the market, the
organization may focus on differentiating its product features.

MARKETING 8
 Nestle
 Hershey’s
 Donald B
 Cherry Ripe
In order to position its chocolates in new market, Donald B needs to adopt effective approaches
of positioning. It will assist the organization grab the attention and interest of people. Positioning
approaches which can be used by Donald B are discussed below:
Physical Characteristics Approach
It is one of the most objective criteria which the customers consider. In the case of Donald B, the
customers prefer to purchase the chocolates and other confectionary products considering their
flavors, packaging, color etc. Thus, the company will do segmentation by focusing on the
features and customer benefits of products.
Price Quality Approach
Moreover, Donald B Company will practice price quality approach to position its products
among new market’s customers. This type of approach justifies many price-quality groups of its
High Price
Low Quality High
Quality
Low Price
Middle
income people
Taste and
quality of
chocolates

MARKETING 9
products. Under this, the chocolate producer will set different prices for its different products. As
the company is targeting all groups of society so it should offer prices on higher to lower prices.
It will assist this firm to make an effective brand image in customers’ minds (Afoakwa, 2010).
The Competitors Approach
This is the most important approach of positioning which Donald B can use to place its new
products among its targeted audiences. Before placement, the company will conduct market
research and analyze the strategies of competing brands. It needs to maintain strong
communication with them (Davcik & Sharma, 2016). It will assist Donald B to achieve
competitive edge over other players.
Thus, it can be stated that Donald B should use different positioning approaches so that it can
successfully implement its business operations in global business market.
Elements of Marketing Mix
Marketing mix framework is one of the significant models for Donald B that this firm can
implement and process its business processes in other nation. These strategies assist the company
to grab the attention of customers and gain competitive advantage over competing brands like
Nestle, Mars etc. It will help it in finding out the strategic position of competitors across the
world. The different components of Donald’s marketing mix are discussed below:
Product
This is the first marketing strategy under this framework that uses current or new products to
influence the customers’ perception positively. Product strategy assists the company to introduce
new and innovative products in foreign marketplace. As mentioned in case study, Donald B is a
leading player in chocolate manufacturing sector and company is attaining significant growth in
Australian market. In new market, the organization will develop products with higher quality
ingredients and sell them with the attractive packaging. It will plan the production process
considering the competition in the market. The major competing brands of Donald B are like
Snikers, Freddo, Cherry Ripe and Crunchie. In addition to this, the company analyzes the needs
and wants of customers by conducting market research and then produces the products
accordingly (Khan, 2014). In Australia, the company can expand its business in other industries
like retail, food industry, organic food etc. This product strategy will assist the company to

MARKETING 10
establish a good brand image in international market. It should implement effective product
strategy while entering into new market.
There are different levels of products which are stated below:
Core Product
Core products are the most valuable offering of a company that provides the major benefits to
customers. The core products of Donald B are the chocolate and confectionary products. Now,
the company is planning to expand its products in international markets. Under core values,
company can offer excellent quality and taste to its potential customers (Konstantas, Jeswani,
Stamford & Azapagic, 2018).
Actual Product
Under product level strategy, this is the second level of product. It includes the physical and
tangible benefits/features of a product. Under this level, Donald B Company will focus on
offering the chocolates in different colors, attractive packaging, flavors etc. Generally, people
buy the actual product when they demand chocolate for any special purpose.
Augmented Product
It is also one of the most significant levels of the product. It includes the ad-on services, after
sale service etc. Under this level, the company can make an attractive website and it can offer its
chocolates and other products online. It can take the feedback of customers after selling the
products.
Price
Under marketing mix framework, pricing plays an important role in order to attract the
customers from all income segments. From the analysis, it is identified that Donald B is using
different types of price strategies so that it can offer its products by targeting different segments.
This company implements affordable pricing strategies and ensures that more customers
purchase its chocolates (Kazemi & Esmaeili, 2010). Thus, the company can use psychological
pricing technique. In international market, first it should sell the chocolate and other
confectionary products on lower prices. After capturing a significant market share, it should set

MARKETING 11
the prices appropriately with the objective of maximizing profits and sales. Furthermore, it can
provide some offers and discounts in festive seasons. The company is adopting the pricing
strategies by targeting the people from lower and middle classes. Additionally, Donald B will
start to use promotional pricing strategy in Australian and other overseas markets.
Distribution
Currently, Donald B is operating its business operations in Australian market. Now, the company
is planning chocolate products by in other nations. For this, the company needs to develop an
extensive distribution network to supply its products to final consumers. The company should
develop effective distribution strategies. In Australia, Donald B is planning to offer its chocolates
through supermarkets like Woolworths and Coles. It can supply its chocolates and other
confectionary products to retailers. In addition to this, Donald B will establish its outlets in the
most crowded shopping malls of the city (Hultman, Katsikeas & Robson, 2011). It will assist the
company to grab the attention of ore customers. After Australia, the company can establish its
owned stores in other emerging nations like New Zealand, United Kingdom and China. This
distribution strategy will enable the organization to increase its profits and revenues over other
competing brands.
Promotion
In marketing mix, promotion plays a critical role which assists the organization to approach a
larger customer base. While expanding business in new markets, the company needs to make
investment in advertising and promotion activities (Dahlén, Lange & Smith, 2016). Donald B
will develop an integrated marketing communication plan that will include different promotion
strategies like advertising, sales promotion, public relations and direct marketing. Under
advertisement, Donald B should use both online and offline modes. Under online modes, this
company will give ads in newspapers, magazines, social networking sites, billboards etc. Direct
marketing will allow this organization to connect with the potential customers personally
(Andrews & Shimp, 2017). It will assist the organization to get their feedback towards its
chocolates. It should provide offers on its products like discounts and combo packs. Thus, the
organization will be able to entice a large customer base in international market.

MARKETING 12
Extended Marketing Mix
People
At Donald B, the employees are managed to support its growth strategy in new and existing
market. The company has developed its leadership abilities and competencies in such as way so
that they can support to the attainment of its overall objectives. The organization should conduct
training and development program for its employees before entering into new market. They
should be well-trained and have customer friendly behavior (Goworek, McGoldrick &
McGoldrick, 2015).
Process
Donald B needs to understand that customer service is one of the key determinants of building
trust among them. Thus, this company should focus on enhancing the skills of employees so that
they can provide the services smoothly. It should develop and manage its production processes
effectively.
Physical Evidence
Physical evidence is a critical component of marketing mix that can support Donald B to attract
more customers. At this company, physical evidence can be used in the form of packaging and
promotional tools (Afoakwa, 2016). It should establish its physical stores at the place where most
of the population can approach easily. In the stores, it will focus on the service speed, cleanliness
and hygiene and service quality.
Conclusion
In the limelight of above discussion, it can be concluded that it is a good decision of Donald B to
expand its business operations in new and emerging market. In this business expansion, the
company should focus on the most appropriate targeted market and strategies. The above report
analyzes that Donald B should use the above marketing mix strategies so that it can attract more
people and retain them. By using these strategies, the company will be able to attain its business
objectives and mission in international business market by managing sustainability in business
environment.