Strategic Marketing Plan: Donald B's Expansion in Australia

This report outlines a comprehensive marketing strategy for Donald B, a chocolate product maker aiming to expand its brand nationally and internationally within the Australian market. It includes a segmentation analysis based on geographic, demographic, psychographic, and behavioral factors, along with an assessment of segment attractiveness using criteria like identifiability, reachability, responsiveness, substantiality, and profitability. The report identifies the target market as young girls, children, and boys, and recommends positioning strategies focused on product, channel, service, people, and image differentiation. Marketing strategy alternatives such as market penetration, product development, distribution, cost leadership, and differentiation are explored, culminating in a recommended strategy choice that enhances sales, profitability, and customer base. The strategy covers product, pricing, distribution, and communication decisions, while also addressing potential prospects and challenges for Donald B in the competitive chocolate market. Desklib provides access to this and other solved assignments.

Running head: Marketing
Marketing

Marketing
Table of Contents
Introduction.................................................................................................................................................3
Background of the organization...................................................................................................................3
Segmentation analysis.................................................................................................................................3
Segmentation attractiveness assessment......................................................................................................4
Target market choice...................................................................................................................................5
Positioning choices......................................................................................................................................6
Recommended positioning..........................................................................................................................6
Marketing strategy alternatives....................................................................................................................7
Marketing strategy choice...........................................................................................................................8
Overview of recommended strategy............................................................................................................9
Product decision..........................................................................................................................................9
Pricing decisions........................................................................................................................................10
Distribution decisions................................................................................................................................10
Communication decisions..........................................................................................................................10
Prospects and challenges...........................................................................................................................11
Conclusion.................................................................................................................................................11
Bibliography...............................................................................................................................................12
2

Marketing
Introduction
The paper examines and outlines the market environment for Donald B that operates and
manages through wholly owned stores in Melbourne. Recently, the organization produces and
manufactures containing milk ingredient. The paper explains that how the firm uses
segmentation, targeting and positioning strategies to overcome the rivalries in the global market.
Furthermore, here is the discussion about the marketing mix strategy of the company.
Furthermore detail of the task has been stated below.
Background of the organization
Donald B is a chocolate product maker and it has two stores in Melbourne. The company wants
to grow and flourish its brand internationally and nationally and compete with competitors in the
global market. The company sells its products through Aldi, Coles and Woolworths to create
high and effective image in the world. The firm produces chocolate related products in the
international market. In today’s era, the firm is growing and flourishing its business activities and
operations globally. The main mission of the company is to provide better qualify of products
and services to the customers across the world. The vision of Donald B is to maximize the
revenue and profitability by providing innovative products and services to the customers across
the world. Donald B focuses on the tastes, preferences and choices of the consumers to make a
strong financial image in the marketplace. By analyzing the tastes and choices of the consumers,
the organization has been able to overcome the competitors. There are enormous factors such as
foreign chocolate brands and market trends entering in the Australian market which is making
strong goodwill in the market. People are educated and they know very well about the benefits
and side effects of chocolates. Furthermore, it has been stated that chocolate products are good
for health (Vecchio & Annunziata, 2015).
Segmentation analysis
Segmentation is a process of dividing of a population intro groups according to certain
characteristics. The company uses this strategy to attract and retain more consumers in the
3

Marketing
marketplace (Peters, 2013). The firm divides the market on the basis of geographic area,
psychographic area, demographic area and behavioral area.
Geographic: The Company depends on the geographic area such as climate change, cold and
warm hot weather to increase the sale and profit globally. By considering the geographic area,
the firm has been able to maximize profitability and returns.
Demographic: It also focuses on the age of the people. Donald B segmented market area for its
chocolate products based on the generation. It focuses on the age, gender, tastes and preferences
of the consumers to stay in the competitive market. It also identifies and analyzes the income
level of consumers worldwide (Wedel & Kamakura, 2012).
Psychographic: Life styles and personality are considered the psychographic factors that could
affect the buying behavior of the consumers. Donald B provides various types of chocolates in
Australia to these people who really want to tastes and enjoy chocolate. In this way, it helps in
attracting large number of the consumers around the world. Donald B adopts this strategy for the
convenience of consumers and it provides satisfaction to the customers (Weinstein, 2013).
Behavioral: Donald B also focuses and identifies the behavioral factors to gain competitive
advantages in Australia. This factor provides cost benefits and time efficiency to the loyal
customers in the market. The organization evaluates the degree of loyalty, personality, user status
and benefits sought to beat the rivalries globally.
By using segmentation strategy, the firm has been able to provide healthy chocolates and other
products to the consumers. Donald B has made its environment which is suitable for the children
and Australian people. Also, it will help to grow and flourish the business operations and
activities globally (Blaschke, Hay, Kelly, Lang, Hofmann, Addink & Tiede, 2014).
Segmentation attractiveness assessment
Donald B evaluates and identifies the various segments of the market and their needs, desires and
requirements to beat the rivalries. By using a set of five criteria, the company can determine and
measure which segment is most suitable and viable in the market (Aljukhadar & Senecal, 2011).
It includes the identifiable, reachable, substantial, responsive and profitable.
4

Marketing
Identifiable: Donald B analyzes the needs, requirements wants of the customers to increase
revenue and outcomes. It is equally significant to ensure that the segments are distinct from each
other in terms of needs and requirements because too much overlap between the segments means
that distinct marketing strategies and plans are not essential to attain consumers needs.
Reachable: The best and good quality of products and services could not have any impact if that
market is not easily reachable through strong communication and product distribution. By using
this strategy, the consumers are able to receive the company’s marketing message to know the
quality of products.
Responsive: For a segmentation strategy to be successful, the consumers in the segment should
react positively in the market. Responsive strategy provides an overview about the feature and
quality of products.
Substantial and profitable: Once the Donald B has identified and analyzed its potential target
market; it needs to evaluate their size and growth potential. Along with this, it shall be noted that
the company should focus on the potential profitability of each segment both future and current.
Furthermore, some of the key factors should keep in mind such as market growth, market access
and market competiveness while initiating this analysis. By using segmentation strategy, Donald
B has been able to choose the right and appropriate target market and then build an effective
positioning strategy based on the dynamic target market. It will help to build and develop an
effective image in the minds of the customers.
Target market choice
Target market plays a significant role in each and every company to enhance and increase the
sell of chocolate products in market. The company customizes the products in each segment to
make a good position globally. Donald B examines and evaluates the different type of market
segments on the basis of segment size, structural attractiveness and segments. The target market
of the company includes young girls, children and boys who like to eat chocolates. The firm
distributes their target market because of having unique wants, requirements and needs
(Kapferer, 2012). In order to overcome the competitors, it is necessary for the firm to understand
and evaluate its target customers across the world. If Donald B can understand and measure its
consumers then only it can communicate itself to their consumer market. It will also help to
5

Marketing
increase and improve the efficiency of the organization. Apart from this, the firm can easily
maintain reciprocal relationship with consumers. No company can maximize its profitability and
returns without analyzing the needs and requirements of target market. To get a sustainable
benefit over their competitors, Donald B should measure the potential target market in Australia.
Upper class and middle class are also included in company’s target market that influence the
progress of the firm positively (Wymer, 2011).
Positioning choices
Positioning may be defined as a process of creating an image in the mind of the consumers by
selling unique and attractive products and services to the consumers. It also refers to the selection
of the most suitable marketing mix for the target customer segment. Donald B produces the
chocolate products after considering the needs, wants and expectations of the target market.
Along with this, it shall be noted that the company uses unique and dynamic positioning
strategies to stand out against the competitors. By creating product, channel, service, people and
image differentiation Donald B arrives the consumers touch point more effectively, easily and
efficiently in comparing with other rivalries in the highly competitive chocolate market. By using
positioning strategy, Donald B has been able to differentiate its product from the rivalries
products and services. Apart from this, the company analyses and identifies the plans, policies
and strategies of the competitors to make a dynamic position in front of rivalries. In this way, it
shall be noted that positioning strategy of Donald B is outstanding since the initial stage.
Furthermore, they develop and boost dynamic image in the mind of the consumers, they use
alternate positioning strategy for the different target markers in comparison to other rivalries
(Mosca, 2016).
Recommended positioning
Although, Donald B uses unique and attractive positioning strategies but yet the company should
apply new and innovative positioning techniques to create a new image in the global market.
Furthermore, the firm should focus and observe the present approach which they are following in
today’s era (Khan, 2013). This can be possible by adding a more expertise and organized team
which can work on healthy advertisement. There advertising must contain all the advantages and
healthy qualities about the chocolate products that the Donald B is offering. Along with this,
6

Marketing
promotional strategies shall be used by the firm to promote the sale of the products (Elaydi,
2012).
Marketing strategy alternatives
Marketing plays an empirical role to increase and maximize the sale and revenue of the firm.
Donald B analyses and evaluates the Australian market to destroy the rivalries in the global
market. Marketing strategies are initiated by the organization to gain competitive benefits by
reducing the prices of the products and services. Furthermore, these alternative strategies can
also be initiated to fulfill the long term goals and objectives. In addition, marketing strategy
alternatives help in increasing sales and profitability with maintaining their current customer
base (Baker, 2014). Donald B uses various marketing strategies including market penetration,
market development and pricing strategies. The company uses various strategies to attain long
mission and vision in Australian market. Some of the marketing strategy alternatives have been
stated below.
Market penetration strategy: It is one of the significant alternative strategies of market which
helps to increase and maximize the sale of Donald B. By using this strategy, the organization
tries to increase and enhance the market share among existing customers across the world. Under
this strategy, Donald B focuses on the selling of the existing products and services to gain high
market share in Australia (Bertay, Demirgüç-Kunt & Huizinga, 2013).
Product development strategy: To develop and improve the quality of products, Donald B uses
effective product development strategy within the organization. This strategy helps to make the
products and services different from the rivalries.
Distribution strategy: One of the significant and effective marketing alternative strategies is
distribution strategy which helps to make strong leader in the market. By using this strategy, the
firm has been able to make its products available to the end consumer through its extensive
network of distribution.
Cost leadership strategy: Donald B also uses cost leadership strategy to reduce and eliminate
the extra cost of the chocolate products and services. This will also help to generate higher profit
and returns in the Australian market (Rothaermel, 2015).
7

Marketing
Differentiation strategy: This strategy is a better alternative for the company to attain rivalries
benefits globally. By using this strategy, Donald B has been able to build and design the unique
quality of products and services. In addition, it is noted that differentiation strategy also helps in
improving the quality of products in niche market. All these marketing strategies are initiated by
Donald B to attract the large target market across the world. If the firm wants to flourish and
explore the business operations then it needs to focus on marketing strategies.
Marketing strategy choice
Marketing strategy choice includes a whole process through which a decision is taken to choose
a specific option from the various alternatives. There can be several methods through which the
final choices can be selected. It also helps to select right and appropriate option from the various
available options. In this way, the organization can maximize its growth and success in the
international market. As the same way, Donald B Corporation can also select effective and
unique marketing strategies from the various available options. Cost leadership strategy can
provide various benefits to the consumers as well as organization. This strategy helps to set the
appropriate and suitable prices of the products and services in the rivalry market. In cost
leadership strategy, leaders and managers focus on the prices of the competitors to serve unique
products in the marketplace. This strategy also allows the firm to maintain its profits and explore
its market share globally. Cost leadership strategy increases customer demand and market share
worldwide. Furthermore, this strategy reduces the cost of Donald B for manufacturing the
chocolate products. Donald B can also use differentiation strategy to create a brand loyalty
among the consumers. This strategy helps in gaining market share by reducing the cost of the
products. It is seen that if Donald B does not maintain quality then customers may prefer
competitor products. The differentiation strategy focuses on the quality and design of the
chocolate products as it may create the perception that there is no substitute available in the
market. This strategy also helps to create a good and strong value among the consumers. The
company can also differentiate its chocolate from other brands in terms of quality, and tastes. On
the other hand, Donald B can choose product development strategy to retain more clients in the
global market (Freng Svendsen, Haugland, Grønhaug & Hammervoll, 2011).
8

Marketing
Overview of recommended strategy
It is recommended that the company should focus on the marketing strategies to carry out the
business activities and operations effectively and successfully. It should analyze and evaluate the
target market to strive and cope with the competitors across the world. In addition, it shall be
noted that Donald B must monitor the packaging strategies to make products attractive and
unique. Cost leadership strategy and differentiation strategy have been recommended to increase
and maximize the wide range of consumers across the world. By initiating the cost leadership
strategy, leaders of the firm can direct and assist the workers for eliminating the extra cost of the
products and services (Keller, Parameswaran & Jacob, 2011). Furthermore, business operations
and activities can be carried in a hassle free manner by implementing cost leadership strategy. It
is an effective and unique marketing strategy that helps to set the suitable cost of the products.
On the other hand, Differentiation strategy shall be initiated by Donald B Company to reduce
risks and challenges of the market. Moreover, this strategy makes products and services
attractive and dynamic globally. The consumers can choose unique chocolate products with the
help of differentiation strategy (Lovelock, 2011).
Product decision
Donald B uses unique strategies to make unique decisions to make product unique and effective.
The main competitors of the company include Nestle, Ferrero, Lindt and Cadbury that could
affect the target market of the organization adversely. Marketing mix plays a vital role in
decision making process. To make unique decision, Donald B needs to focus on the markets and
rivalries conditions. It analyzes and evaluates the challenges and risks of the market while taking
decision related to the products and services. By using product strategy, the organization has
been able to launch and introduce new and innovative chocolates in the marketplace. The firm
produces products in an effective and hassle free manner so that it provide various benefits to the
consumers in the Australian market. Donald B takes product decisions after considering the
tastes, preferences and expectations of the consumers. Unique and effective decisions also help
to maximize the rivalries benefits in the international market (Hossien, 2011).
9

Marketing
Pricing decisions
One of the significant strategies of Donald B is pricing strategies that help to distinguish its
products from the competitors in terms of price and feature. The company monitors the prices of
the competitors to make effective pricing decisions. On the other hand, price of the products is
based on the quality of the products. The firm finds the right market in which the competitor
products are less expensive as compared to Donald B products belonging to the same category.
The pricing strategy is one of the significant factors of marketing mix. The pricing strategy in the
marketing mix of Donald B is dependent upon the rivalries, product quality and geographic
areas. Donald B fixes the right and suitable prices of the chocolates to beat the competitors
across the world. Pricing decisions also help in making unique financial position in the global
world (Kapferer, 2012).
Distribution decisions
Distribution decisions are taken by the company after analyzing and evaluating the market size
and conditions. Donald B can use various strategies to distribute its products across the world.
The firm focuses on the marketing penetration while making distribution decisions within the
organization. The distribution strategy may be defined as a strategy or a plan to make products
and services available to the consumers through its supply chain. To distribute the products, the
organization focuses on the desires and wants of the end users customers in the marketplace.
Apart from this, the company can use various methods to distribute its products globally. Online
selling can be done by the firm to distribute the chocolate products properly. Furthermore, direct
selling is also a good option for Donald B Company to enhance and increase its sales and
revenue.
Communication decisions
Communication decision is one of the significant decisions which is taken by Donald B
Company. It plays a significant role to maintain reciprocal relationship between consumers and
team members (Lovelock, 2011). Open and unique communication is maintained by the
organization with consumers in order to increase and enhance the profitability and sales of the
organization (Macnamara & Zerfass, 2012). Proper feedback and reviews are collected by the
team members within the organization to analyze and examine the quality and feature of the
10

Marketing
products and services. In this way, the company can improve its products quality in the
marketplace. Furthermore, the organization can also overcome the competitors and analyze the
obstacles and risks of the marketplace. In addition, cooperation and coordination is maintained at
the workplace to communicate with customers. Communication decision also helps in
maximizing the profitability and returns of the firm (Spry, Pappu & Bettina Cornwell, 2011).
Prospects and challenges
In today’s competitive world, Donald B is expanding and flourishing its business activities and
operations worldwide. On the other hand, the firm is facing several challenges and issues in the
marketplace. Lack of flexibility and inefficiency, the employees of the firm are unable to
produce new and innovative products in the global market. Furthermore, high and immense
competition also affects the image of the company adversely. Apart from this, raising prices
without driving away customers has been tricky and complex for Donald B Company. It shall be
noted that the employees are unable to focus on the operations and activities due to lack of
motivation and effectiveness. All these challenges and issues are being faced by the firm in
today’s modern world (Helm & Gritsch, 2014).
Conclusion
On the above mentioned analysis, it can be concluded that Donald B is leading company in
Australia. The company renders various types of chocolates to Australians. A marketing plan is
made by the firm to maximize and flourish the business operations globally. Apart from this, the
organization uses segmentation, targeting and positioning strategies and marketing mix to stay in
the competitive market.
11

Marketing
Bibliography
Aljukhadar, M., & Senecal, S. (2011). Segmenting the online consumer market. Marketing
intelligence & planning, 29(4), 421-435.
Baker, M. J. (2014). Marketing strategy and management. Palgrave Macmillan.
Bertay, A. C., Demirgüç-Kunt, A., & Huizinga, H. (2013). Do we need big banks? Evidence on
performance, strategy and market discipline. Journal of Financial Intermediation, 22(4),
532-558.
Blaschke, T., Hay, G. J., Kelly, M., Lang, S., Hofmann, P., Addink, E., ... & Tiede, D. (2014).
Geographic object-based image analysis–towards a new paradigm. ISPRS journal of
photogrammetry and remote sensing, 87, 180-191.
Elaydi, R. (2012). Targeting firm social strategy at the community level in subsistence
markets. Journal of Enterprising Communities: People and Places in the Global
Economy, 6(2), 108-123.
Freng Svendsen, M., Haugland, S. A., Grønhaug, K., & Hammervoll, T. (2011). Marketing
strategy and customer involvement in product development. European Journal of
Marketing, 45(4), 513-530.
Helm, R., & Gritsch, S. (2014). Examining the influence of uncertainty on marketing mix
strategy elements in emerging business to business export-markets. International
Business Review, 23(2), 418-428.
Hossien, E. (2011). Determinants of brand equity: offering a model to chocolate industry. World
Academy of Science, Engineering and Technology, 59, 1205-1213.
12

Marketing
Kapferer, J. N. (2012). The new strategic brand management: Advanced insights and strategic
thinking. Kogan page publishers.
Kapferer, J. N. (2012). The new strategic brand management: Advanced insights and strategic
thinking. Kogan page publishers.
Keller, K. L., Parameswaran, M. G., & Jacob, I. (2011). Strategic brand management: Building,
measuring, and managing brand equity. Pearson Education India.
Khan, T. (2013). STP strategy for New Product Launch-a Work in Progress. International
Journal of Business and Management Invention, 2(3), 56-65.
Lovelock, C. (2011). Services marketing: People, technology, strategy. Pearson Education India.
Lovelock, C. (2011). Services marketing: People, technology, strategy. Pearson Education India.
Macnamara, J., & Zerfass, A. (2012). Social media communication in organizations: The
challenges of balancing openness, strategy, and management. International Journal of
Strategic Communication, 6(4), 287-308.
Mosca, F. (Ed.). (2016). Global marketing strategies for the promotion of luxury goods. IGI
Global.
Papadopoulos, N., & Martín Martín, O. (2011). International market selection and segmentation:
perspectives and challenges. International Marketing Review, 28(2), 132-149.
Peters, A. M. (2013). Language segmentation: Operating principles for the perception and
analysis of language. In The crosslinguistic study of language acquisition (pp. 81-116).
Psychology Press.
Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education.
Spry, A., Pappu, R., & Bettina Cornwell, T. (2011). Celebrity endorsement, brand credibility and
brand equity. European Journal of Marketing, 45(6), 882-909.
Vecchio, R., & Annunziata, A. (2015). Willingness-to-pay for sustainability-labelled
chocolate:an experimental auction approach. Journal of Cleaner Production, 86, 335-
342.
13

Marketing
Wedel, M., & Kamakura, W. A. (2012). Market segmentation: Conceptual and methodological
foundations (Vol. 8). Springer Science & Business Media.
Weinstein, A. (2013). Handbook of market segmentation: Strategic targeting for business and
technology firms. Routledge.
Wymer, W. (2011). Developing more effective social marketing strategies. Journal of Social
Marketing, 1(1), 17-31.
14