Detailed Marketing Plan for Donald B Company's International Expansion

This report presents a detailed marketing plan for Donald B Company, a chocolate manufacturer with two stores in Melbourne, Australia, aiming to expand internationally. The report analyzes the company's marketing strategies, including segmentation, targeting, and positioning (STP), to gain a competitive advantage. It examines the target market, demographic, psychographic, geographic, and behavioral segmentation strategies. The report also discusses the marketing mix elements: product, price, place, and promotion, along with an extended marketing mix. Furthermore, it emphasizes the importance of situational analysis before entering foreign markets. The goal is to help Donald B Company maximize its market share and profitability by offering innovative chocolate products and adapting its marketing strategies to the global market.

Running head: Marketing
Marketing

Marketing
Executive summary
The main aim of this task is provide an overview and outline about the marketing plan for
Donald B Company. The organization has two stores in Melbourne in Australia and it provides
chocolate products to the consumers in the country. Here is the discussion about the
segmentation, targeting and positioning strategies to beat the competitors in the international
market. The marketing mix strategy is also initiated by Donald B to make unique and dynamic
marketing plan. The marketing plan and strategies are used by the company to enter in the
foreign market. Furthermore, situational analysis is done by the organization before
implementing the business operations in other country.
2

Marketing
Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Marketing strategy......................................................................................................................................4
a. Target market......................................................................................................................................4
Segmentation strategy............................................................................................................................5
B.Positioining strategy.............................................................................................................................7
The elements of marketing mix...................................................................................................................8
A. Product strategy..................................................................................................................................9
B.Level of the products...........................................................................................................................9
C. Price strategy......................................................................................................................................9
D.Place strategy.....................................................................................................................................10
E.Promotion strategy.............................................................................................................................10
Extended marketing mix........................................................................................................................10
Conclusion.................................................................................................................................................11
References.................................................................................................................................................11
3

Marketing
Introduction
The main aim of every business is to expand and flourish the business activities and operations in
international market. Here is the discussion about Donald B Company that is producing
chocolate products and services across the world. The major aim of the firm is to spread their
business around the world to maximize the profitability in the global market. The vision of the
firm is to maximize the market share by offering new chocolates to the consumers. The paper
explains that how the Corporation makes dynamic market strategy and plan to explore its
business in foreign market. Furthermore, the segmentation, targeting and positioning strategies
have been explained in the task. It describes that how the firm uses marketing mix strategy to
cope and strive with competitors in the rivalries market. More detail of the task has been
discussed below.
Donald B is known as a chocolate maker and has two own stores in Melbourne. Its principal and
main product groups include chocolate and confectionary products. The primary mission of
Donald B is to grow and enhance its brand in the international market and cope with biggest
competitors producing and manufacturing confectionery, glazed fruit, candied nut, cocoa
product, drinking chocolate and marshmallow. The organization is taking help of Coles and
Woolworths to increase and enhance the sale of chocolate in Australian market. In today’s era,
Donald B needs to focus on the external market to destroy the competitors in the global market.
Furthermore, it has been analyzed that the organization should focus on the micro environmental
analysis and macro environmental analysis to maximize the outputs and results.
Marketing strategy
Marketing planning may be defined as a long term, forward looking approach to planning with
the fundamental goals attaining a sustainable competitive benefit. On the other hand, marketing
plan provides an outline and information of the specific actions and behavior that need to be
taken over time to attain the long term goals and objectives (Weekley & Ployhart, 2013). STP
(segmentation, targeting and positioning) is one of the significant strategies of the company.
4

Marketing
a. Target market
Target audience plays a significant role in each and every organization to earn more revenue and
returns in the international market. This target market also helps to overcome the competitors.
Donald B focuses on the needs, requirements, wants and desires of the target market to increase
and enhance the demand of the products (Snijders, 2011). It shall be stated that target market
provide wide range of opportunities to the company to explore and expand the operations and
activities globally. It is noted that Donald B examines and evaluates the different types of market
segments on the basis of size, trends and natures of the market to introduce new and innovative
chocolate products and services in the market. The organization distributes their target market
because of having needs, desires, wants and requirements. The company produces different types
of products for many segments after considering the age, occupation, climate and season. In
geographic segment, the company focuses on the target audience and their culture to enhance the
sale of the firm. In demographic segment, Donald B focuses on the young working professionals
who are between the age group of 20 to 40.This target market like to eat chocolate product
widely (Dahlén, Lange & Smith, 2010). In psychographic segmentation, the company is targeted
a2, b1 and b2 socio economic classes. In behavioral segmentation it is found that the company is
targeted the first time users and also their regular users who like to eat chocolates on daily basis.
The target market includes departmental stores, target grocers and hyper markets (Duhigg,
2012). No company can survive and grow its business without analyzing and examining the
needs and wants of the target market. If Donald B wants to grow its brand in the international
market then the company should focus on the requirements and expectations of the consumers. It
will also help to uplift the profitability and outputs with minimizing the cost of the products. By
analyzing and identifying the target audience, Donald B has been able to boost and increase its
reputation in the international market. The company should also focus on the cost of the products
to retain maximum number of consumers all over the world (Ainsworth, Blehar, Waters & Wall,
2015).
Segmentation strategy
One of the significant strategies that initiated Donald B is segmentation. Donald B divides its
market into different segment on the basis of demographic area, psychographic area, behavioral
area and geographic area. These factors affect the progress and growth of the firm.
5

Marketing
a. Demographic segmentation: In demographic segmentation, the market is divided into
different groups on the basis of various factors including age, gender, income and occupation etc,
these demographic variables are so famous with marketers so that they are often interconnected
with the needs and wants of the consumers. Some of the demographic variables that are used by
the company to divide its market have been discussed below (Wilson & Mukhina, 2012).
Age: The Company focuses on the people who are age group between 20-40 years. The young
boys and girls mostly prefer chocolates on occasion and festivals. Many people buy chocolates
on regular basis. Therefore, it helps to attract and retain more consumers in the international
market.
Gender: Donald B produces chocolates for anyone who wishes to be healthy. In this way, the
company has been able to meet its desired goals.
Income: Donald B is associated with a specific luxury brand name to fulfill the expectations and
needs of the consumers.
Occupation: Students, sports enthusiasts, athletes, and working professionals.
b.Psychographic segmentation: Under psychographic segmentation, Donald B focuses on the
lifestyle, personality, occasions, benefits, usage rate, user status, loyalty status, readiness stage
and attitude toward product. By focusing on psychographic segmentation, Donald B has been
able to provide chocolate these people who really want to tastes and enjoy chocolate (Kazemi &
Esmaeili, 2010).
C.Geographic segmentation: Donald B segmented its target market for chocolate and
confectionary depends on the geographic weather such as warm, hot and cold weather.
Furthermore, it has been noted that the company divides its market into the rural and urban areas
(Gabay, Moskowitz, Beckley & Ashman, 2009).
D.Behavioral segmentation: By analyzing the behavioral factors, Donald B can attain
sustainability in the competitive market. The people who belong to the high job profile with
efficient and effective communication knowledge and experience can use it. After the various
researchers, it has been analyzed that the company should use targeting and segmentation
6

Marketing
strategies to expand the business operations and activities in foreign market. It will help to stand
out against the competitors in such market (Majaro, 2013).
B.Positioining strategy
Positioning is another important and effective strategy that is initiated by Donald B within the
organization in order to maximize the returns and revenue. After analyzing and identifying the
target market, positioning is done by the firm. By creating and analyzing service, channel,
product, image differentiation the organization arrives the customers touch point more easily,
efficiently and effectively in comparing with other competitors in the high rivalry food
processing market (Thompson & Martin, 2010). To position the chocolate products, Donald B
focuses on the product, image, channel and distribution strategies of competitors. It will help to
compete with rivalries in the Australian market. It has been noted that the company should focus
on the positioning strategies before entering in the foreign market. The company cannot attain
success in foreign market without analyzing the positioning strategies in the global market. In
addition, it has been stated that Donald B should focus on the positioning strategy to maintain a
good communication with consumers in the international market. Along with this, the company
is become successful and powerful to handle and face the marketing trends and challenges
(Jaman, 2012). With the help of positioning strategy, Donald B can create goodwill and win
customers loyalty and faith in the foreign market. It has been suggested that Donald B can use
this strategy in other market to introduce a new and innovative products. The brand positioning
strategy also helps to attract different types of consumers in the marketplace. The consumers are
differ in terms of their needs and expectations from the product. Some of the people want
durability, some want novelty, some want unique features and some want safety, and so on.
Donald B can attract different types of buyers by promoting and using different types of
positioning strategies (Maital & Seshadri, 2012).
Along with positioning strategy, Donald B can initiate different types of positioning approaches
in the international market that have been detailed below.
Using customer benefits and product characteristics: In this case, the segmentation shall be
done by the company keeping in mind the product features and customers benefits. It is one of
vital and effective positioning approaches that can be initiated by Donald B.
7

Marketing
Price quality approach: This approach includes the various prices of the products. The
company fixes different types of prices for different products and services. It shall be noted that
Donald B should focus on the prices of the chocolate products to make a dynamic image in the
minds of the consumers.
The application and use approach: The company should also consider the application
approach to handle and resolve the issues and problems of new market (Ellis, 2010).
The product use approach: This approach focuses on the needs, requirements and buying
behavior of the consumers to differentiate its products from the competitors. It shall be studied
that Donald B must focus on this approach to increase revenue in the foreign market.
The product class approach: Some products need to make dynamic and unique positioning
decisions that include product class associations. One of the significant approaches that should
be used by Donald B Company in the international market is product class approach to gain the
rivalries benefits.
The cultural symbol approach: Many companies use cultural symbols to distinguish their
brands from the rivalries. Therefore, Donald B should also use this approach to differentiate its
brand from the other competitors. It also helps to make unique and effective decisions within the
organization.
The competitor approach: The positioning can be made with an implicit and explicit frame of
references of one or more rivalries. The company should maintain good and strong
communication with competitors to attain various competitive advantages in the marketplace.
This approach is important to know and identify the plans, policies and strategies of the
competitors. In this way, it has been stated that Donald B should use positioning approaches to
implement its business activities and operations in the international market.
The elements of marketing mix
The marketing mix is one of the most important strategies for Donald B to implement and start
business activities and operations in other country. This strategy helps the company to attain
various types of competitive advantages in the market (Hossien, 2011). This strategy helps to
8

Marketing
find out the position of the competitors worldwide. The elements of marketing mix are discussed
below.
A. Product strategy
One of the dynamic and effective strategies for company is product strategy that helps to
introduce new products in the international market. Donald B is leading company in Australian
market that keeping in minds the products of the competitors. After considering the products of
rivalries, the organization has been able to distinguish its chocolate products from the
competitors. By using this strategy, the company can easily sale its products globally. Cherry
Ripe, Snikers, Freddo frog and Crunchie are main competitors of the firm. It has been further
noted that Donald B monitors the expectations and wants of the consumers to introduce and
launch new products. It helps to make a good reputation in the global market. Donald B should
keep in mind the product strategy to enter in the foreign market.
B.Level of the products
There are three levels of the products that are discussed below.
Core product: It has been analyzed that core product is not tangible physical product, the people
can touch it. The core products are valuable; it is main benefit of the product. The company can
use this level to promote the chocolate products in the oversea market. Furthermore, the core
products can be shifted here and there easily. The chocolate products can be moved from one
place to another.
Actual product: It is the second level of the product. The people can get actual product for some
special purpose. This level is unable to provide much benefit to the consumers in the
international market.
Augmented product: One of the significant levels of product is augmented. These products are
part of the non-physical part of the product. It is generally consists of lots of added value to
attract more clients worldwide.
C. Price strategy
It has been studied Donald B can use various types of price bundling strategies to offer the
products and services to wide range of consumers. To ensure customers buy more chocolate
9

Marketing
products, Donald B focuses on psychological pricing strategies in its marketing mix that
indicates affordable to customers (Afoakwa, 2016). The company should set the appropriate
prices of the products to maximize sales and returns. Moreover, discount and offers should be
provided by the company to make a great brand image in the market. The pricing strategy is also
adopted by the company to tap the lower middle section of the community. Along with this,
promotional pricing strategy shall be initiated by Donald B in the overseas market (Beckett,
2011).
D.Place strategy
The company operates its business in Australian market. Now the company has decided to
explore its business in other countries. Therefore, place strategy plays a major role when the firm
initiates its business operations in foreign market (Saltini & Akkerman, 2012). It has been
analyzed that Donald B should focus on the place strategies to decide attractive and unique place
to sale the chocolate products in the global market. For example, the company should set and
establish its own outlets in China, New Zealand and United Kingdom to maximize the profits. In
this way, the organization can explore and flourish its business actions in other countries. Apart
from this, the company should focus on the high quality standards and hygiene norms and
regulations (Murray, 2010).
E.Promotion strategy
It is noted that Donald B is investing large amount on advertising campaigns, it makes use of
newspapers ads, signage and billboards. The company uses aggressive promotion strategies
when it comes to its marketing mix. Apart from this, effective and unique promotional and
advertisement strategies shall be used by the company to promote the products and services in
the global market. This strategy helps to know and identify the features and quality of the
products and services. On the other hand, it has been evaluated marketing survey and unique
campaigns shall be done by the company to analyze and know the market situations and promote
the chocolate products. In this way, the company can attract large number of consumers in the
foreign market (Rosenbloom, 2012).
Extended marketing mix
Donald B has unique way of addressing its consumers and also treats its workers very well. The
company should appoint a unique and dynamic team to focus on sales and profitability of the
10

Marketing
firm. Along with this, the organization should emphasize its employees to be customers cheering,
friendly and gave affection for people. The customer satisfaction should be primary objectives
for the firm to achieve effective brand name in the global world. Hygiene is important factor that
kept in mind by the employees of the firm. The leadership team of Donald B is responsible to
provide right and accurate information to the consumers about the chocolate products (Babin &
Zikmund, 2015).
Physical evidence is significant and vital factor in marketing mix. The psychical evidence creates
a great impact in the minds of the customers. The features of physical evidence displayed are
speed of service, cleanliness, quality and hygiene. The website of Donald B has been able to
maintain a great presence in the minds of the consumers (Dahlén, Lange & Smith, 2010).
On the other hand, process plays an empirical role in each and every organization to produce
products in a right and appropriate manner. Donald B use effective and attractive processes and
procedures to produce the products in the marketplace (Beckett, 2011).
Conclusion
On the above aforesaid information, it has been concluded that Donald B should focus on the
market and strategies to initiate business activities and operations in foreign market. The above
analysis shows that marketing mix strategies and STP strategies play a fundamental role to make
a unique and dynamic marketing plan for entering in the overseas country. It has been analyzed
that Donald B should also focus on the plans of the competitors to attain success and growth in
the international market. In this way, Donald B can attain desired mission and vision in foreign
market with maintaining sustainability in the workplace and environment as well.
11

Marketing
References
Afoakwa, E. O. (2016). Chocolate science and technology. John Wiley & Sons.
Ainsworth, M. D. S., Blehar, M. C., Waters, E., & Wall, S. N. (2015). Patterns of attachment: A
psychological study of the strange situation. Psychology Press.
Babin, B. J., & Zikmund, W. G. (2015). Exploring marketing research. Cengage Learning.
Beckett, S. T. (Ed.). (2011). Industrial chocolate manufacture and use. John Wiley & Sons.
Beckett, S. T. (Ed.). (2011). Industrial chocolate manufacture and use. John Wiley & Sons.
Dahlén, M., Lange, F., & Smith, T. (2010). Marketing communications: A brand narrative
approach. John Wiley & Sons.
Dahlén, M., Lange, F., & Smith, T. (2010). Marketing communications: A brand narrative
approach. John Wiley & Sons.
Duhigg, C. (2012). How companies learn your secrets. The New York Times, 16, 2012.
Ellis, N. (2010). Business to business marketing: Relationships, networks and strategies. Oxford
University Press.
Gabay, G., Moskowitz, H. R., Beckley, J., & Ashman, H. (2009). Consumer centered “brand
value” of foods: drivers and segmentation. Journal of Product & Brand
Management, 18(1), 4-16.
Hossien, E. (2011). Determinants of brand equity: offering a model to chocolate industry. World
Academy of Science, Engineering and Technology, 59, 1205-1213.
12