D. Bilo Chocolates: Marketing Environment Analysis Report, Melbourne

This report presents a marketing environmental analysis for D. Bilo Chocolates, a chocolate producer with two stores in Melbourne. The report begins with an executive summary and table of contents, followed by an introduction outlining the company's business and expansion goals. Part A focuses ...Read More

Running head: MARKETING
Marketing
Name of the Student
Name of the University
Author Note

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Executive Summary
The following report focuses on the marketing activities of the D. Bilo Chocolates in Australia.
The company is headquartered at Melbourne and they are looking to expand their business
market into other states and countries. The analysis of the Chocolate and Confectionery
industry has been done in this context as per the need to see the opportunities for the
improvement. The organization will look to utilize on their various opportunities. The
organization is looking to put much effort behind their market growth and competing with the
firms with higher potential. The large firms with huge experience in making chocolates and
confectionery items are supposed to be their main competitors. They will look to compete with
them in order to achieve the higher growth for the size of their market. The external
environment will have a huge impact on the growth of their business in a large way indeed.

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Table of Contents
Introduction.....................................................................................................................................3
Part A...............................................................................................................................................3
Marketing Environmental Analysis..............................................................................................3
The products of the company......................................................................................................3
Industry analysis..........................................................................................................................4
Macro-environment.....................................................................................................................4
Part B................................................................................................................................................6
The Micro environment...............................................................................................................6
Competitors.................................................................................................................................6
Consumers...................................................................................................................................7
Conclusion........................................................................................................................................8
References.......................................................................................................................................9

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Introduction
The aim of the following report is to prepare a marketing plan and strategy for the
chocolate products under the brand name of the D. Bilo Chocolates. The chocolate product
maker already has two stores in the city of Melbourne and he would like to expand his business
in the various parts of the country of Australia. The two stores are located in the Toorak Rd
South Yarra and Lygon St Carlton. It has been noted that the products made by the D. Bilo
Chocolates. The entrepreneurship of the business has seen good potential for the future
success and this is why he us very much concerned about the growth of his business all over the
country (Malhotra & Peterson, 2014). The business environment of the chocolate industry will
be discussed in this paper. The paper will be divided into two sections. The first part of the
paper will consist of the business environmental analysis and the second part of the assignment
will consist of the marketing mix and strategy for the expansion of the business. The chocolate
producer wants to compete on a bigger arena where the competitors would sell the cocoa-
chocolate based products such as normal chocolates and drinking chocolates and confectionery
products like the marshmallow, candied nuts, candied popcorn and other such products. The
competition would be very high in this context so the makers of the product would like to get
into the rivalry with better preparation (Malhotra & Peterson, 2014).
Part A
Marketing Environmental Analysis
One of the most important aspects of understanding the success route of the business
organizations is to discuss about the business environment of the company. The company has
to endure the threats of the competitors and this is why it is very important to understand both
the internal and external environments of the company (Hair Jr & Lukas, 2014). Before
proceeding with the assignment, it will be crucial to discuss in detail the product line of the
company.
The products of the company
The quality of the products is very high. Donald B sells a wide range of the chocolate
blocks that are very tasty. He also sells different types of small boxes of the chocolates and
truffles and boxes of the mixed chocolates (Jobber & Ellis-Chadwick, 2012). The chocolates are
of different shapes and sizes. He does not sell his chocolates through the retail outlets of the
multinational stores like Coles, Woolworths or Aldi. He sells his products directly from the two
stores mentioned above. He supplies his products to the local restaurants and cafes with the
hand-made truffles that he prepares. These truffles are the desserts for the customers. He has a
good taste of the liking of the customers and he prepares it likewise (Hair Jr & Lukas, 2014)

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The quality of his chocolates is so high that he has won the awards in the Australian
Artisan Chocolate Competition. This competition is being held in every two years. This is how he
is becoming successful by time. This is very inspiring for him as his fame is spreading in the
chocolate manufacturing industry. He is into this field of business for almost four years now. He
is trying to make the process smooth and easy for the future success. The two stores that are
now in the operations are doing fairly well and Donald B will look to expand his business indeed
(Jobber & Ellis-Chadwick, 2012).
Industry analysis
The producer of these chocolate products has focused more on the quality. The
products are much health conscious. The nutrition value of these products is very high indeed.
The ingredients of the chocolates are very good and the producers of these products are able to
meet the demands of the customers (Hill & Brierley, 2017). The products are very sustainable
for the industry. The growth of the brand has been quite steady and the brand has acquired
much popularity over the last two years. The customer preferences are always changing so they
have come up with several new products indeed. The largest product segment of the chocolate
is the cocoa. Donald B always uses the best quality cocoa to prepare the products (Hill &
Brierley, 2017).
One of the biggest weaknesses for the brand to grow is the increasing market
competition. The saturation in the market has been on the rise as well. The price of the cocoa is
increasing as it is mainly imported from Africa. He is an entrepreneur and he is not associated
with any of the retail stores. The household incomes of the people are limited but the expenses
are rising so the people will find it hard to spend money to buy the chocolates. As he is not
associated with the large retail stores, it will be very problematic for him to give special offers
on his products. Otherwise special offers on some selected chocolates would have earned him
much money (Pulver, 2012). The communication channels with the customers are very weak as
well.
There are endless opportunities for the brand of D. Bilo Chocolates to grow in this
competitive environment (Flint & Woodruff, 2014). The producer of the chocolates will need to
introduce the technology to connect with the customers. The new innovative products will be a
very good option for the benefit of the customers as well. The major threats will have to be
overcome by the brand if it wants to attain a major growth in the coming two years (Pulver,
2012).
Macro-environmentPolitical/ legal

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Australia is considered to be a politically stable country. This is why the D. Bilo
Chocolates will not face any such challenge from the perspectives of the political unrest. Other
important things like the government policies will be important for the organization to
overcome (Jurevicius, 2013). The chocolate manufacturing is a part of the food industry. The
food industry has a huge potential in the future so the organization will look to capitalize on the
levies that the government will provide for them (Armstrong et al. 2015).
Economic
The economic challenges are huge in the aspect of the growth of the D. Bilo Chocolates.
This is why the organization will look to cope up with the economic hardships and the global
inflation rates. The industry will look to increase their resistance to the vulnerabilities in the
economic context (Armstrong et al. 2015).
Cultural/ social
The children and the women generally are very fond of the chocolates. This is why the
cultural issues (Robson, 2015). The premium products of the industry will be very important for
the organization. The social aspects should be kept in mind like the changing tastes of the
customers are very crucial in this case. The ingredients like the fruits, nuts and raw cocoa
should be put in the products with the highest quality (Robson, 2015).
Technological
The latest technology should be used by the company to connect with the customers.
The customers should be informed about the different products and their offers through the
social media (Hartley, Sørensen & Torfing, 2013). The machines with the latest technologies
should be used to prepare tyheir products within a less time. Thus more amount of products
can be prepared wwith the use of those machines.
Environmental
The environmental factors should are very important for the brand reputation of D. BIlo
Chcocolates. Donald B should always look upon the different facts like the manufacturing of the
products by safeguarding the environment (Camisón & Villar-López, 2014). The cocoa tress
should be planted in the regions more to help the keeping of the environmental balance.
Demographic
The demographic section is an important part of the target market segmentation. The
health conscious people should be the target markets because these chocolates are enriched
with much protein. This is why these chocolates can be distributed in the gyms and fitness

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centers. The products should be full of protein and can be exported to countries with high
demand of protein foods (Camisón & Villar-López, 2014).
Donald B’s Business Direction
It would have been better for Donald B to tie up with the big retail stores in the country
with the high potential for increasing the sales of the products. As brands like Woolworths,
Coles and Aldi are present in different countries, they will be able to sell the products of D. Bilo
Chocolates with high potential rates. The sales volume will begin to grow as well. The business
will be directed towards the positive in a high manner.
Positive business direction
High (H+) Medium (M+) Low (L+)Negative business direction
High (H-) Medium (M-) Low (L-)
Part B
The Micro environment
Competitors
There are certainly many competitors who are much active in this industry. Donald B will
look to capitalize on the market size he has already got. As he is eyeing the potential larger
target segments, he should go for increase the variation of his products. The target market will
be larger and he should be able to capture it with the better quality products with high amount
of protein (Yüksel, 2012). The taste of the chocolates should be given more focus as well. As of
now, the company size os smaller. The company is looking to take on the bigger sized
companies for the sake of competing and gaining more customers. They should fix some of the
key products that should be the USP of the company brand like the drinking chocolates and the
candled nuts. As far as the gaining the competitive advantage is concerned, they should look to
open the online selling activities as well. The products can be delivered at the workplaces of the
customers within time and it should be a good advertisement for the company brand as well.

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The strengths of the brand like the good relationship with the customers and the quality
products should be kept up (Yüksel, 2012).
Consumers
The approach to the consumers is the most important issue for the upcoming brand like
the D. Bilo Chocolates manufactured by Donald B. It has been noticed that most of the medium
and high economic class people The Company should keep the price of the products to an
affordable range for their target customers. After they get a fair amount of popularity within
their demographic target segments, they can go on to increase the price of their products
(Carroll & Buchholtz, 2014).
The brand reputation of the company can only be increased if the consumers are
satisfied with the quality of their products. The organization should be very much cautious
about the potential threats that they face in their external environment. The industry is tending
to go through the growth path i.e. very interesting for the betterment of their popularity. One
thing is indeed very important for the company and it is the fact about the selling of their
products through the supermarkets. The tendency of the medium and high society people is to
purchase their every day goods from the supermarkets and shopping malls. In this scenario, it
can be said that the company can go on to make partnerships with Coles or Woolworths
(Chaffey & Ellis-Chadwick, 2012).
This will definitely be helpful for them since the marketing strategy of these companies
is much better than D. Bilo Chocolates. As they are a small firm, their prices of the products
should not be very high. The consumers will not be interested to buy high quality products from
a growing brand. The Chocolate and Confectionery Manufacturing industry is believed to be in
the mature phase of its life cycle (Chaffey & Ellis-Chadwick, 2012). So, it is highly important for
the D. Bilo Chocolates to make online surveys about the changing preferences of thee
consumers. They can opt to receive the feedback from the social media platforms and make
arrangements for providing new range of varied products to the consumers (Khan, 2012).
This will surely increase the brand value of the organization. The customer behaviors
should be understood and this should be a big boost for the brand to grow (Roper & Fill, 2012).
The opportunities are huge in front of Donald B. He should focus on the areas where there are
many departmental stores, supermarkets, petrol stations, railway stations and bus terminus.
Thus he can be able to attract more customers at their disposal (Wedel & Kamakura, 2012). The
target audience for Donald B should be within 18 to 40 years of age and they should focus on
the children and working women who need more proteins in their foods. The wholesalers of
the products should be able to buy those products directly from the manufacturers. The aim of
the manufacturers and suppliers will be to prepare many products and make them reach to the

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customers without any fault. The promotional marketing activities of D. Bilo Chocolates should
be done through the social media channels (Wedel & Kamakura, 2012).
Conclusion
This paper can be concluded by saying that the products of D. Bilo chocolates are of very
good quality. This is why it would not be much problematic for them to expand into the foreign
markets in the upcoming years. However, their marketing strategies are quite weak. This is why
they will need to address this situation in a better way. It has to be remembered that they have
done a good business within four years and it is time for them to increase their brand
reputation by a rise of their revenues. The marketing mix activities of the brand of D. Bilo
Chocolates have been discussed in this context as well. One very important aspect is they
should take the help of the large supermarket chains to improve their marketing strategies.
They should make proper surveys to keep a track on the changing consumer preferences. This
will enable them to provide better quality products.

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