HI5004 Marketing Management: Haigh's Chocolates Case Study

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HI5004 Marketing Management
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Table of Contents
Introduction...................................................................................................................... 3
Issue 1 Description of the company..............................................................................4
Issue 2 5Cs for the organisation...................................................................................6
Issue 3 Market research...............................................................................................9
Issue 4: Developing a marketing strategy...................................................................11
Issue 5: Developing marketing tactics........................................................................13
Conclusion..................................................................................................................... 16
References.....................................................................................................................17
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Introduction
In any community, the production and commercialization of products and services is the
core of financial existence. All companies exercise these two fundamental tasks,
namely the owners, consumers, and the community at big, to fulfil their obligations to
their shareholders. They generate an advantage which economists call utility the
desired force of a good or service. The report helps in understanding the concept of
marketing management with the case study of Haigh's Chocolates of Australia. The
report focuses on 4 main issues of the market. The first issue involves a great
explanation about the Haigh's Chocolates such as its values, mission, vision, the market
in which it is operating and so on. The second involves analysis son 5Cs of the Haigh's
Chocolates whereas the third issue focuses on the different ways in which organisation
collect the information related to the market. The fourth issue includes the development
of marketing strategy and the fifth one involves developing marketing tactics.
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Issue 1 Description of the company
Brief description of Haigh's chocolate
Haigh's chocolate is a chocolate manufacturer from Australia and one of the oldest
family-owned companies in Adelaide South Australia that specialize in premium
chocolate. Founded by Alfred Haigh in 1915, the firm employs more than 500 people in
Australia's factories, retail shops, and administration. The firm is renowned for
developing top quality goods that form the foundation for advertising and client
allegiance to its goods. The organization's marketing policies are the basis for attaining
its vision and objectives (Truran, 2011). The achievement of Haigh also depends on the
application of the finest and new components to create its chocolates since 1915.
Haigh's has also created a uniquely creative product mix. The business has 14 retail
shops and an increased internet presence to serve more clients than the business. The
distribution of the finest possible goods and client facilities are one of the main
objectives which led the enterprise to its present top place. There are distinct main
elements of the company's advertising history that can be assessed to know the
company's competitive stance in the sector (Ingaldi and Šk? rková, 2014).
Figure 1: Haigh's chocolate
[Source: Mitrega, 2016]
Mission statement
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“The chocolate that is chosen will be packaged with the great care and attention with
labeling all the details and deliver the product and services with timely manner”.
Value statement
The company focuses on producing high quality and premium handmade chocolates in
attaining the existing and new customers and also gain a competitive advantage from
the existing market.
USP
“Premium chocolate from the raw cocoa bean”
Brief description of the product
Haigh utilizes quality local components to better position the item. The local utilization of
new and value components in the production of chocolates forms the foundation for the
company's achievement in the nation. It also guarantees viable agriculture in fields
where the components are generated locally and abroad. The business then tastes and
mixes cocoa beans locally to produce elevated value chocolate (Rajagopal, 2017).
Haigh's chocolate Brand
Haigh's cocoa is also licensed UTZ and stresses the viable production to enhance
farmers through better farming techniques, operating circumstances and data on a
suitable agricultural setting. The firm provides a distinctive mix of chocolates which, due
to the local components used in its manufacturing method, creates a competitive
benefit.
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Issue 2 5Cs for the organisation
5C workplace organisation can be explained as the model of the management that help
in organising the working environment and lead it towards the efficient, safe and
working space with the visual management.
[Figure 2: 5C analysis]
[Source: Van der Westhuyzen and Van der Merwe, 2011]
The core components of the 5 C are as follows:
1. Company: Due to the high competition in the market the Haigh's chocolate need to
analyse the market efficiently and effectively in order to understand the strength,
weakness, opportunities, and threat. This can be analysed by using the SWOT analysis
model that is as follows:
Strength Weakness
 The company produces high  Fairtrade Foundation does not
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quality of products with fine raw
material.
 It delivers its product in Australia.
 Since 1915, the Haigh's chocolate
is having a high compelling brand
legacy and brand equity.
 It is also considered as the
success of the Easter Bilby which
is an alternative of the Easter
bunny.
 It facilitates tour to the public so
that they can see the making of
chocolate by themselves.
 It is having knowledge of three
capital cities (Wood, 2013).
provide a certificate to the
company.
 Due to low market share the
company is not able to expand its
business.
Opportunity Threat
 It is having knowledge of E-
commerce platform.
 It delivers its products through the
internet
 It provides gift vouchers
 It can expand its business all over
the world.
 The company is having strong
competitors in the market such as
Cadbury, Nestle and Mayfield
chocolates.
 Maintaining a good quality with
using fine products is a challenge.
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2. Customers: The Haigh's chocolate serves the wide community of Australia. The
product of Haigh's chocolate attracts a range of younger and older customers that give
the company greater control over its products and growth in the market. On the other
side, the business focuses on its premium goods in the greater category employees of
the business. They create chosen goods to enhance the company's capacity to satisfy
business requirements in terms of high-end demand. Haigh's has important possibilities
to promote sustainable growth with the increasing intake of cocoa in both Australia and
the globe (Haigh’s Chocolates, 2019).
3. Collaborators: The Haigh's chocolate is having diverse stores in Australia, for
example, Adelaide which is existing in Parkside and attracts the customers to taste the
chocolate. Besides this, the company executes in the vertically integrated model of the
supply chain.
4. Competitors: The Haigh's chocolate is having strong competitors that are present in
the market that may include Cadbury, Nestle and Mayfield chocolates. The new threat
to the company that is available in the market is Maltese’s.
5. Context: There are various factors that affect the Haigh's chocolate. This will include
technological factors, social factors, environmental factors, and political factors. The
technology which is used by the company will help in producing fine products that
attract the customers. Taste of the chocolate influence the customers to purchase the
chocolate. If there is in a change in taste and preference of customer the company will
not able to gain a competitive advantage. The company develops various initiatives in
order to gain environmentally friendly such as Greenpeace tick, underground rainwater
tanks, and 100% recyclable and so on (Doole & Lowe, 2015).
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Issue 3 Market research
In order to analyse the market and understand about the market intelligence the Haigh's
chocolate collect the information through the way of forms and feedback forms or
through the electronic media such as feedback on the website and social media. The
company also get to know about the market condition through direct meetings or third
parties. The type of information that Haigh's chocolate gathers are as follows:
a. What do customers want?
According to market analysis of the Haigh's chocolate, the customers of the company
are delivered with the fresh and high-quality kind of commodities. Sustainable
packaging rules are also provided to the customers who also help in satisfying the
demand of the customers.
Different clients suggested that Haigh's chocolate has a different pricing strategy to
serve it. Haigh has a marketing approach focused on target customers such as through
providing premium goods that draw rich customers to greater rates. In order to
investigate the customers, it is shown that the objective along with the retentive period
can be carried out. The same goes for the higher packaging wherever packaging is
carried out with regular global packaging materials, which means that the changes in
the packaging actually take place as soon as the periods continue during the disparities
and the same goes for the wrapping. Customary packaging and the new sort of goods
supplied are delivered. Sustainable packaging guidelines are established to generate
the right and outstanding performance for them (Gleim, 2011).
b. Which competitors pose a threat?
Nestle, Mayfield and Cadbury Chocolates are connected to strong competitors. In
contrast with the other brand, which is named Maltesers, it is distinct from the chocolate
maker. Haigh's chocolate is the easy manufacturer of chocolate that offers both quality
and brand-name chocolates. The goal to successfully regulate the chocolate standard
and market confrontations cover both development and the execution of corporate
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behaviors in the long term. Basically, the company competitions exist and mostly
Nestle, Cadbury, etc. are amongst them. These are the most popular players when the
industry impacts requirements and the monitoring of the company's supply chain along
with the evaluation is carried out to generate higher business opposition (Lim, et. al.,
2016).
c. How the context of business is changing, if at all?
Through market analysis, Haigh's chocolate would able to know that there are various
factors that are existing in the market that can affect the operation of the company. This
may include political factor, technology factor, environmental factor, and social factor.
Political factor such as a change in government rules, tax and import duties can affect
the operation of the Haigh's chocolate. The company develops the product under
committing to the environment. For this, it develops various initiatives which include
Greenpeace tick, underground rainwater tanks, and 100% recyclable and so on.
Change in taste and preferences can also affect the business. There are strong
competitors of the Haigh's chocolate who try to attract customers through various offers
and change in taste.
d. What role do collaborators play in the process?
Haigh's chocolate makes collaboration with the Yalumba who sit eh Australia’s oldest
family-owned Coopers and wines and Australia’s oldest family-owned brewery at the
occasion of celebrating the century. They named this as “The Collaboration” which
contains delicious and new fine chocolates (Gravett, 2013).
Besides this, the company also need to seek new companies in order to expand the
business in all over the world. For example, they need to collaborate with their
competitor who is dealing worldwide.
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Issue 4: Developing a marketing strategy
Haigh's chocolate is needed to develop a market strategy in order for analysing the
needs of their customers through using market segmentation model. Market
segmentation is the study that determines how your organization divides its clients or
cohorts into smaller groups based on features like age, income, characteristics or
behaviour. These segments can be later used for the optimisation of different customers
' products and advertising. Market segmentation is essentially a practice of dividing your
target market into accessible groups. Market segmentation builds market subsets
depending on demographics, wants, preferences, prevalent concerns, and other
psychographic or cognitive requirements to help a target public better comprehend
(Kizil, et. al., 2013).
Haigh's chocolate is recommended to develop a market strategy for:
Choice of target market: Haigh's chocolate needs to offer a variety of products and
services at different prices that include corporate branding, hampers and specialised
products. Besides this, the company needs to focus more on the couples and the
income groups which include elite, middle class and the upper-middle class. As Haigh's
chocolate is a chocolate company so it needs to target nationally, regionally and locally.
Haigh's chocolate needs to focus more on married folks or dating couples on the basis
of lifestyle.
A value proposition for the target market: A customer value proposition is a company
or marketing statement that explains why a customer should purchase a product or use
a service. It targets prospective clients in particular, rather than others like staff,
associates or vendors. The Haigh's chocolate has a brand portfolio of various distinctive
chocolate products that represent high-quality driving revenues and competitive
positions in Australia. The firm utilizes the creativeness of goods to achieve award-
winning product coupled with chocolate technology. They have different goods,
including candy bars, plates, and cookware (Costa, 2010).
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A positioning statement for the target market: A positioning statement is a brief
description of the product or service and target market, as well as how the product or
service meets a specific market need. It is intended to be an inner instrument in which
advertising attempts are aligned with product and value. Haigh's chocolate is a leader in
the supermarket company, offering pleasant service and constancy to people who want
a fast-service with outstanding client experience. Haigh's chocolate commitment to
improving business and client fulfillment distinguish him from other quick food
establishments.
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