MKT600 Marketing: Kennedy and Wilson Case Study - Buyer Behavior

This case study report analyzes Kennedy and Wilson, a small chocolate firm in Australia, focusing on buyer behavior, micro and macro environments, and competitive landscape. It examines how changing business environments affect the chocolate industry and the importance of analyzing internal and external factors for business success. The report discusses buyer behavior in Australia, emphasizing the preference for taste over price and the increasing demand for healthy chocolate options. It also analyzes the micro-environment, including relevant publics, suppliers, and marketing intermediaries, and identifies major competitors such as Cadbury, Nestle, and Hershey Foods Corporation. The macro-environment analysis covers demographic, political, and economic factors influencing the chocolate market. Finally, the report provides recommendations for Kennedy and Wilson to navigate the competitive landscape and capitalize on market opportunities, highlighting the need for innovation and strategic decision-making.

Marketing

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Contents
Introduction...........................................................................................................................................1
Buyer’s Behaviour.................................................................................................................................1
Micro environment................................................................................................................................2
Competitors of Kennedy and Wilson.....................................................................................................4
Macro environment...............................................................................................................................5
Recommendations.................................................................................................................................6
Conclusion.............................................................................................................................................7
REFERENCES......................................................................................................................................8

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Introduction
Australian environment for business has changed. This change in the business environment
has affected each and every industry. Every company irrespective of the industry needs to
analyse their internal and external environment. The change in the environment helps the
organisation to understand the requirements related to their business that could help them in
achieving business success. Apart from the competition is another aspect that is having effect
on the decision making of the organisation and it is the responsibility of the management to
make plans and strategies that are capable of over passing their competitors (Thaichon,
Jebarajakirthy, Tatuu & Gajbhiyeb, 2018). For this it is essential that appropriate competitors
are identified. This must be based on type of business both the company does. Kennedy and
Wilson is a small chocolate firm producing chocolates from 1995 in the Yarra Valley. This
report highlights the buyers behaviour related to chocolate products in Australia. It also
analyses micro and macro environment of the cited firm as well as the potential customers.
Buyer’s Behaviour
In the process of expansion, it is highly essential that company does research on the buyer’s
behaviour in the country. Since the company has chosen new product development as a mode
of expansion hence the buyer’s behaviour becomes further essential. This company wants to
expand with the help of new product development. For this understanding the buyer’s
behaviour becomes more essential. Australia is a market that loves chocolates and people
value taste over the prices. With the increasing inflation there has been decrease in the
purchasing power of the people. People have restricted their expenses hence the chocolates
the growth in the sale of expensive chocolates have come down (Bliss, 2011). With the
increase in the numbers of people in search of chocolates that are value for money, the
growth chances is further going to enhance.
The company is planning to bring the chocolates that are highly nutritional. Since the number
of people that are facing diabetes and other health issues are increasing day by day hence
Kennedy and Wilson will get a good market to target upon. The buyer’s behaviour can also
be understood by the fact that there are people that are from different cultural backgrounds
and hence their choices have also differed. Since chocolate has also become the part and
partial of festivals and occasions. This has given greater sale chances to the company (White,
2014). With not many chocolate products available in the market that are healthy and provide
nutrients, it will be an excellent option to the people that needs it. Chocolate gives the feeling

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of joy and hence people choose it for the celebratory purpose. Australians also loves the
chocolates that provide them pleasure with innovative taste. With the numbers of people that
are suffering from tension and stress, high rich cocoa products are highly appreciated. Since
most of the customers of the company are of very young age hence they demand for products
that are at lower cost is high. In the competitive environment brand loyalty is on the lower
side and hence the cited firm will have to bring products that are having an exceptional taste
and provide health benefits (Aktar, 2013).
Micro environment
In any business there are various variables that are attached with it. There are some internal
factors that are actually influencing the internal environment within the organisation. These
factors need to be properly analysed so as to understand their impact. The limit and control
over the internal factors is very essential for the organisation. In the chocolate industry since
there are many internal factors that are influencing the behaviour of the clients and the
organisation as well (Boelsen-Robinson, Backholer & Peeters, 2015). Without monitoring,
understanding micro-environment could be a challenge for the firm. Since most of these
internal factors are linked with the internal units of the organisation hence company should
do internal research to analyse these factors. Micro-environment analysis of Kennedy and
Wilson are:
Relevant publics: Publics are considered to be as the groups that are influencing the business
of the organisation. Some of the most common publics that are attached with the company are
the customers (Poelmans & Rousseau, 2016). Customer’s choice is highly essential for an
organisation and they must understand the people choice so as to fulfil it. They have a huge
impact on the new product development. There are some pressure groups that also exist in the
environment. In chocolate industry the pressure groups are like the people from the health
organisation who are pressurising the chocolate companies to bring the healthy products.
Since the company is bringing the chocolates that are healthy hence these publics will not
influence the business of the organisation. Community is the major public who has the role in
changing the trends. For example if the trend of sharing healthy chocolates increases, it will
enhance the sale of the company’s new product.
Suppliers: There are large numbers of suppliers present in Australia. Due to the competition
in between the suppliers the rate of raw materials is going to come down (Roberts, Pettigrew,

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Chapman, Quester & Miller, 2013). Since the freshness and the quality are very important in
the products that are produced by the chocolate company hence they will have to look
towards the quality that suppliers give in their raw materials. This company has a healthy
relationship with their suppliers hence availing fresh beans of cocoa is not a challenge. New
routes and new political ties over trade with cocoa producing nations will favour the
company’s idea to develop new products. Adulteration in the raw materials that are supplied
by the companies is also a challenge for the small firms like Kennedy and Wilson who do not
have high quality technologies to find out these adulterations. In the coming time, the
selection of suppliers should be done wisely. It is also seen that the cocoa beans from
different regions of the world are have somewhat different taste. This calls for the fact that
company should focus on adding the numbers of suppliers from different parts of the world.
Marketing intermediaries: In the whole product cycle there are several marketing
intermediaries that are present. In the chocolate industry the will have higher impact
especially on the aspects such as elements of market mix and the strategies that made by the
organisations (Huang, Weatherall, & Webster, 2012). Since the company does not aim to
open their retail outlets hence maintaining healthy relationship with the market intermediaries
becomes highly crucial. They have wholesalers in every part of many regions of the
Australia. The new product that company is going to launch needs to available in every retail
outlets for which they will have to make the relationship with all their business partners. The
biggest problems with the small organisations generally are the fact that they have weaker
links with distributors. In order to expand their market, the first thing that company will have
to do is to exceed the number of investors. The increase in the inflation and economic
instability in the country will restrict the new investors to spend high. Along with this the
intermediaries in the marketing channel are also important especially for improving the brand
name. They will also help the company in reaching deeper into the markets.
Competitors of Kennedy and Wilson
Australian chocolate industry is too big and hence Kennedy and Wilson will have to analyse
each of these competitors. With the easy availability of investors, many new small firms are
also coming up. The bigger competitors of the firm have the capability to change the trends in
the market as well as the taste in the market.

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Some of the big competitors of the cited firm are:
 Cadbury: It is one of the biggest chocolate companies in the world and has large
variety of products for different occasions. It offers various kinds of chocolate
products that are also of different taste, having different ingredients, nutritional value.
It is also offering products that are long ranging in terms of price. They are targeting
large numbers of people from different section of the society and different age group.
Their major target markets are the children and young age people (Watson, et. al.
2016).
 Nestle: It is again one of the big companies that operating in Australia and has
products of different kinds of taste. Nestle has a strong hold on the market and offers
products that are from different regions of the world. They are also targeting people
that are young and love chocolates that do not have high cocoa content.
 Hershey Foods Corporation: This Company is known for its different taste of
products. It is known for its highly efficient way of bringing products for the
customers. They have good distribution line that is capable of making quick supplies
to every region of Australia. They also target the people of young age and having high
affinity towards the chocolates.
There are many other big competitors of Kennedy and Wilson such as Unilever Group
Strauss Elite Shirin Asal Company, Mars Inc., Ferrero Group etc. All these have long ranged
products aims to target people of different age group. Along with this there are many small
firms that are also present in Australia and are affecting the business of Kennedy and
Wilson’s business.
 Zokoko: The quality of the products that are delivered by the company is also high
hence they have a high capability to produce the fancy and innovative chocolates.
They are producing highly cocoa rich chocolate items having different taste from
most of their competitors. The tranquilidad chocolate that is having a perfect balance
of bittersweet gives an exquisite taste to their consumers. They are targeting people
who have love for dark chocolates.
 Bahen & Co: They are the wine marker who produces chocolates that are beautiful,
stone grown and avails products from Brazil, Madagascar. Most of their products are
classy dark chocolates.

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 Haighs: This is also an emerging chocolate brand in Australia producing chocolates
that are having high cocoa content. They use UTZ-certified beans so as to ensure that
the farming remains ethical and sustainable business can be done (Kennedy &
Wilson, 2018). They are targeting people of different age group who are occasion
lovers.
Macro environment
The competition that is present in the company has the changed the dynamic of business in
the Australian Chocolate industry (Emari, 2012). It is essential for Kennedy and Wilson to
understand the dynamics of Kennedy and Wilson. There are several factors that are
influencing the sale of the chocolate products in the market. Some of them are as follows:
 Demographics: Australia is an ageing society which is again a challenge for the
Kennedy and Wilson as they have younger section of the society as their target
customers (Spiteri, Olstad & Woods, 2018). There are lot of people in Australia who
loves chocolates and are always in search of innovative taste. There are people from
different age group having different kinds of taste. The rural regions of Australia still
have a greater scope for business expansion.
 Political: Australia has seen huge political instability in the last few years where there
has been continuous change of governments (Franks, et. al. 2014). With the change in
the government, it has become difficult for the companies to have healthy
relationships with them which have affected the decision making of smaller firm. It
has also affected the supply chain of the organisation. On the other hand government
policies have supported smaller firms in their expansion process within Australia. Still
the increasing tax on the cocoa import has increased the business challenge for the
Kennedy and Wilson.
 Economic: Australia is a developed nation and hence the chances of development for
the small organisations are huge (Schaltegger & Burritt, 2017). But the economic
challenges such as inflation and increasing unemployment are a matter of concern for
the companies that wants to expand. Finding new investors would be a challenge for
the company.
 Social: Society has changed especially in term of demands. Previously people were
looking for the chocolates of the big brands. This is because brand loyalty was high
(Hamilton & Webster, 2015). Now the people are looking for innovative products that

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give them different kinds of experience. Since the people are looking for the
chocolates that are giving them different kind of taste hence they need to ensure that
their new product attract them. Along with this company must be able to bring the
new taste for the customers. The number of health conscious people is also increasing
and the numbers of such product are lesser in the market. With their new product
Kennedy and Wilson aims to capture this segment in the market.
 Cultural: The culture of Australia loves occasions which directly increases the sale of
products (Thompson, 2015). The cultural variances in the country and the diversity
are essential for the growth of the company in the coming years. People these days
prefer to give chocolates as a gift over other kind of food products.
 Technological: With the advancements in the technological mediums, the cost of
production has lowered. The small firms have to make huge investments in various
technologies so as to compete with the quality and quantity that company delivers.
Technology will also be very essential for marketing especially when the competition
has gone so high (Emari, 2012).
 Natural: The quality of Cocoa bean is decreasing in many parts of the world. This has
forced the firm to use sustainable approach towards production. Kennedy and Wilson
will have to stock a huge amount of raw materials for their future operations.
Recommendations
In order to expand into Australian market with new product development, it is essential that
company understand the dynamics of the market and the type of investment they will need. It
needs to focus on families as they can also be huge target market for the company. Along
with this Kennedy and Wilson will also have to target this gift market. The cited firm will
have to add on the number of distributors. This will help the company in managing the gap
due to unevenness in the product demand (Schaltegger & Burritt, 2017). Company should
also analyse the future plans of their competitors so as to stay ahead of them. It is essential
that Kennedy and Wilson make ties with small suppliers also so as to fill the gap that may
arise in the business operations. In order to create aggressive and wide reaching marketing
campaign Kennedy and Wilson should take use of the social media tools.

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Conclusion
From the above based report it can be concluded that Kennedy and Wilson wants to expand
its business in Australia and the mode they have chosen for this is the new product
development. Australian chocolate buyers mostly prefer the chocolate that is capable of
luring their taste buds. The internal environment of the company seems to be positive but
they will have to bring control over the internal factors that are affecting their business.
Cadbury, Nestle, Hershey Foods Corporation is some of the big competitors of the company
having the capability to change the trends in the market. While the companies like Zokoko,
Bahen & Co and Haighs are some of the emerging names in the chocolate industry that could
give serious challenge to the business of the cited firm. The external environment is facing
many kinds of fluctuations and hence companies will have to look towards each of these
changing dynamics so as to bring stability in their business.

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REFERENCES
Aktar, I. (2013). Disclosure strategies regarding ethically questionable business
practices. British Food Journal, 115(1), 162-193.
Bliss, S. (2011). Bitter sweet chocolate: From ground to mouth. Geography Bulletin, 43(4),
20.
Boelsen-Robinson, T., Backholer, K., & Peeters, A. (2015). Digital marketing of unhealthy
foods to Australian children and adolescents. Health promotion international, 31(3),
523-533.
Emari, H. (2012). Determinants of Brand Equity: Offering a Model to Chocolate Industry in
Iran. Journal of Applied Business and Finance Researches, 1(1), 14-23.
Franks, D. M., Davis, R., Bebbington, A. J., Ali, S. H., Kemp, D., & Scurrah, M. (2014).
Conflict translates environmental and social risk into business costs. Proceedings of
the National Academy of Sciences, 201405135.
Hamilton, L., & Webster, P. (2015). The international business environment. Oxford
University Press, USA.
Huang, V., Weatherall, K., & Webster, E. (2012). The use of survey evidence in Australian
trade mark and passing off cases. The law of reputation and Brands in the Asia
Pacific, 181-202.
Kennedy & Wilson, (2018) About us. [Online] Available at:
https://www.kennedyandwilson.com.au/our-story/. [Accessed on 30th September
2018].
Poelmans, E., & Rousseau, S. (2016). How do chocolate lovers balance taste and ethical
considerations?. British Food Journal, 118(2), 343-361.
Roberts, M., Pettigrew, S., Chapman, K., Quester, P., & Miller, C. (2013). The advertised
diet: an examination of the extent and nature of food advertising on Australian
television. Health Promotion Journal of Australia, 24(2), 137-142.

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Schaltegger, S., & Burritt, R. (2017). Contemporary environmental accounting: issues,
concepts and practice. Routledge.
Spiteri, S. A., Olstad, D. L., & Woods, J. L. (2018). Nutritional quality of new food products
released into the Australian retail food market in 2015–is the food industry part of the
solution?. BMC public health, 18(1), 222.
Thaichon, P., Jebarajakirthy, C., Tatuu, P., & Gajbhiyeb, R. G. (2018). Are you a chocolate
lover? An investigation of the repurchase behavior of chocolate consumers. Journal of
Food Products Marketing, 24(2), 163-176.
Thompson, S. (2015) Here are five brilliant Australian chocolates you must try. [Online]
Available at: https://www.businessinsider.com.au/here-are-five-brilliant-australian-
chocolates-you-really-must-try-2015-4. [Accessed on 30th September 2018]
Watson, W. L., Kury, A., Wellard, L., Hughes, C., Dunford, E., & Chapman, K. (2016).
Variations in serving sizes of Australian snack foods and confectionery. Appetite, 96,
32-37.
White, L. (2014). Australian native spices: Building the ‘Bush Tucker’brand. Spices and
tourism: Destinations, attraction and cuisines, 153-168.

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