University Marketing Plan for Origin Chocolate's Market Expansion

This report presents a comprehensive marketing plan for Origin Chocolate, starting with an introduction and a situational analysis. It identifies key marketing objectives, such as increasing market share and revenue, and then explores various growth strategies using the Ansoff matrix, including market penetration, product development, market development, and diversification. The report then delves into market segmentation, identifying demographic, geographic, psychographic, and behavioral segments, ultimately selecting the younger customer segments in tier II cities as the target market. Targeting strategies, including product differentiation and market focus, are recommended. A positioning map is provided to analyze Origin Chocolate's competitive landscape. The report also details the marketing mix strategies (product, price, promotion, place, people, process, and physical evidence) and concludes with a summary of the recommendations.

Running head: MARKETING MANAGEMENT
Marketing management
Name of the student
Name of the university
Author note

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Table of Contents
Introduction........................................................................................................................2
Identification of the marketing objectives..........................................................................2
Determination of the growth strategy.................................................................................2
Market penetration.........................................................................................................2
Product development.....................................................................................................3
Market development.......................................................................................................3
Diversification.................................................................................................................3
Identification of the market segments................................................................................4
Selection of the target market choice............................................................................5
Identification of the targeting strategies.........................................................................5
Identification of the positioning map..................................................................................5
Marketing mix strategies....................................................................................................6
Product...........................................................................................................................6
Price...............................................................................................................................7
Promotion.......................................................................................................................7
Place..............................................................................................................................7
People............................................................................................................................7
Process..........................................................................................................................8
Physical evidence..........................................................................................................8
Conclusion.........................................................................................................................8
Reference..........................................................................................................................9

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Introduction
In the first assignment, the situational analysis of Origin Chocolate is being done
and different challenges and opportunities are being identified. Based on this analysis, a
marketing plan is recommended in the following sections. This marketing plan included
different elements that will be helpful for Origin chocolates in gaining long term business
sustainability. In addition, the target market segments for them are also identified along
with the ideal positioning strategy.
Identification of the marketing objectives
Prior to the commencement of the marketing plan, it is important to identify the
marketing objectives due to the reason that based on these marketing objectives, the
further strategies will be designed to achieve. The following section will discuss about
the various marketing objectives to achieve.
To increase the market share by minimum of 10 percent within the next 1 year
To achieve the market leadership status in the Australian chocolate industry
within the next 3 years
To increase the revenue count by 5 percent within the next 1 year
To increase the global presence of the brand and covering more countries
Determination of the growth strategy
In the current business scenario, growth strategy is important for the
contemporary business organizations due to the reason that it will help Origin Chocolate
in enhancing their market area of operation and increase in the business revenue. The
more effective will be the growth strategy of Origin Chocolate, the more will be their
potentiality in terms of business development (Bello, 2014). In this case, Ansoff matrix
will be effective in identifying the potential growth strategies for them. According to this
matrix, there are four major elements that can be beneficial for the companies in
growing in the market. The following sections will discuss about each of these elements
from the perspectives of Origin Chocolate and the extent to which they are applicable.
Market penetration
According to the market penetration approach, Origin Chocolate should introduce
more variants of their existing products in the existing markets. This is due to the reason
that currently, they are majorly offering premium products for the higher customer
segments and introducing cost effective variants of these products will be beneficial for
them in further penetrating in the market. Increasing the product variants across
different price levels will help Origin Chocolate to target the lower segments as well and
getting more established in the market. On the other hand, it is also recommended that
they can have market penetration strategy in terms of the flavors and tastes due to the
reason that existing chocolates being sold by them are already available in different
flavors and characteristics (Hussain et al., 2013). Thus, increasing these varieties will

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help to meet the taste and expectations of the larger customer segments. This will also
enable Origin Chocolate to gain market penetration in their existing market.
Product development
Product development is another strategy that can also be beneficial for Origin
Chocolate in gaining growth in the market. This strategy refers to the process of
introducing new products as per the current trends in the market and retaining the
existing customer base. This should be noted that Origin Chocolate is having their
market base in the Australian regions and taste and preference pattern of the customers
is getting changed (Hulbert, Gilmore & Carson, 2013). Thus, it is important for Origin
Chocolate to change their product strategy as per the market trends to stay relevant in
the market. On the other hand, initiation of the product development strategy will also
help Origin Chocolate to increase their product diversity to tap the diverse customer
segments. Hence, in this case, the growth will be in terms of the larger target segments
in the existing market.
Market development
Market development refers to the process of tapping the new market regions with
the existing products, which helps in enhancing the market presence of the brand
globally. Thus, in the case of Origin Chocolate, initiation of the market development
strategy will help to increase the market area for them. It is recommended that there are
two approaches in terms of market development can be initiated by Origin Chocolate.
The first approach will be the domestic market development and the second one will be
the international market development. With regards to the domestic market
development, it is recommended that Origin Chocolate should now target the tier II
cities because of the fact that tier I Australian cities are already tapped by them
(Papazov 2014). With the growth in the Australian economy, it is highly probable that
opportunities from the tier II will also get increased in the coming years. On the other
hand, in terms of the international market development, it is recommended that Origin
Chocolate should target the developing countries in the global market. This is due to the
reason that currently, these developing countries are witnessing higher economic
growth rate and thus the business potentiality will also be more. This will ensure that
Origin Chocolate will have larger market opportunities in newer market regions.
Diversification
The last strategy available for Origin Chocolate as per the ansoff matrix is
diversification. This refers to the process of entering in new market segment in the new
region. This will also be an effective choice for Origin Chocolate due to the reason that
the market opportunity will be the maximum in this case. Moreover, diversification
approach will also be applicable in achieving the objective of Origin Chocolate to
expand globally. It is recommended that Origin Chocolate should enter in a related
sector of their existing business such as confectionaries in the new market (Chen et al.,
2014). This will help them to target the new customer segments along with enhancing
their global brand identity. However, in this case, it should be noted that the cost and

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risks involved in the diversification process will be more as compared to other
strategies.
Identification of the market segments
Identification of the target customer segments will involve different segmentation
variables due to the reason that it will help in identifying the target segment for Origin
Chocolate from different perspectives. The following sections will identify the target
segments for Origin Chocolate on the basis of each of these variables.
Demographic
segmentation
In terms of the targeted age groups, customers between the
age of 15 and 40 are being considered as the primary target
segment and the customers below the age of 15 and above
40 are considered as the secondary target segment. This is
due to the reason that their primary customer segments are
the young adults who are having the purchasing power to
avail the products of Origin Chocolate. On the other hand,
the age group below 15 and above 40 is secondary target
segment due to the reason that they are mainly
accompanied by the primary target segments (Andaleeb,
2016). In terms of gender, both male and female customers
are being targeted due to the reason that chocolates are
applicable to both the genders. In terms of income level,
customers from the higher income level are being targeted
due to the reason that they are only be able to purchase the
premium organic products of Origin Chocolate.
Geographic
segmentation
In terms of the geographic segmentation, customers from
the tier I cities of Australia are being targeted due to the
reason that customers from the tier I cities are having higher
purchasing power compared to other geographical locations.
However, the potentiality in the tier II cities is also increasing
for Origin Chocolate.
Psychographic
segmentation
In terms of the psychographic segmentation, genuine
chocolate lovers are the target customers for Origin
Chocolate over the flying segments. This is due to the
reason that the rich and dark taste of the organic chocolates
of Origin Chocolate will only attract the genuine customers
(Venter, Wright & Dibb, 2015). Customers having the
preferences for organic and ethical products are also the
target customers for Origin Chocolate due to the reason that
Origin Chocolate is selling organic chocolates manufactured
from ethically sourced materials.
Behavioral segmentation Loyal customers are the target customers for Origin
Chocolate over the general customers due to the reason that
continuous source of revenue can be ensured from the loyal
customers. In addition, targeting the loyal customers will also
help in generating positive word of mouth.

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High price
Inorganic Organic
Origin Chocolate
Crest
BMK Girl Made
Cacao
Bahen
Selection of the target market choice
Thus, from the above analysis, it is identified that the younger customer
segments from the tier II cities should be target market choice. This is due to the reason
that young population in the tier II cities is also gaining the purchasing power for higher
end chocolate products. Moreover, this market is untapped and is posing huge
opportunities for Origin Chocolate. However, it is important to identify the benefits that
this segment is seeking from Origin Chocolate (Zehir, Can & Karaboga, 2015). The first
benefit sought is the value for money proposition. This is due to the reason that the
modern aged population from the tier II regions is seeking the best value for money
from the product. In addition, larger variants are also expected and in different forms.
This is due to the reason that chocolates in the current time are not being consumed
only in one form. Thus, the utilities should be more from the products of Origin
Chocolate.
Identification of the targeting strategies
Proper and suitable targeting strategies should be initiated in order to attract the
above identified segment. It is recommended that product differentiation and market
focus approaches will be more beneficial for Origin Chocolate. Initiation of the product
differentiation will help Origin Chocolate to position their products in distinctive level
compared to their competitors. Moreover, initiation of the product differentiation will also
enable Origin Chocolate to stay unique in the competition and will provide enhanced
value proposition for the customers. On the other hand, initiation of the market focus
strategy will help Origin Chocolate in meeting the requirements and expectations of the
target segment (Lechner & Gudmundsson, 2014). Hence, it can be concluded that both
these strategies can help Origin Chocolate in effectively catering to the target segments.
Identification of the positioning map

6MARKETING MANAGEMENT Low price
According to the above positioning map of Origin Chocolate, it is identified that Origin
Chocolate is staying ahead of the competition due to the reason their organic content.
Majority of their competitors are operating in both premium and affordable price
segment but they offering inorganic products. However, Girl Made chocolate is the
closest competitor for Origin Chocolate as they are also offering the same organic
products. It can be concluded from the above map that the direct competition for Origin
Chocolate is less. It is also identified that the recent surge in the incorporation of the
boutique chocolate brands is increasing the competition for Origin Chocolate. Thus, in
view to the increasing competition, it is getting more important for Origin Chocolate to
position their products competitively in the market. It is recommended that Origin
Chocolate should be positioned on the basis of product characteristics due to the
reason that the organic materials being used by Origin Chocolate are distinctive in the
market and it should be communicated to the customer (Sirinni et al., 2013). In addition,
positioning on the basis of the product characteristics will also help Origin Chocolate to
charge premium from the customers as their distinctive product characteristics will make
up for the premium pricing. It is also recommended that the products of Origin
Chocolate can be positioned on the basis of product class. This denotes the fact that
currently, Origin Chocolate is positioned as occasional usage purposes and they should
now get their products positioned on the basis of frequent usage purposes. This will
help in increasing the sales volume for them from the excising customer segments and
size.
The recommended job value statement for Origin Chocolate will be “taste and
health in one go”. This positioning statement leverages on the competitive advantages
of Origin Chocolate. Customers will be aware about the benefits that they will get from
the products of Origin Chocolate. Moreover, association of the health will also create
competitive advantages for Origin Chocolate in the chocolate industry.
Marketing mix strategies
Product
It is recommended that product development strategies should be initiated by
Origin Chocolate in order to have different products in the same product line to cater to
the various segments. Diversification of the product portfolio will also help Origin
Chocolate to increase the existing customer bases and generation of sales volume. The
core product level will be based on the taste due to the reason that chocolate lovers will

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analyze the utility of the product based on the taste. In terms of the actual product level,
the design and texture of the chocolates will be the focused. This is due to the reason
competiveness of the chocolate products will also be determined by way it is offered to
the customers (Sharma, Davcik & Pillai, 2016). The design and texture in the product of
Origin Chocolate will be distinctive and will create positive aesthetic value for the
customers. Lastly, the augmented product level will include positive impression and
social image due to the association of the elements such as organic and ethical
sourcing.
Price
Market penetration pricing should be initiated due to the reason that it will help in
increasing the sales volume in the long term. However, it should be noted that the
market penetration pricing strategy will be initiated based on the skimming approach.
This refers to the strategy of charging higher in the initial stage of launching the product
and gradually reducing the price with time. Thus, the generation of the revenue from the
initial stage will be more (Spann, Fischer & Tellis, 2014). This is also help Origin
Chocolate in getting both the premium as well as mass market customers on board.
They will witness both increase in the sales revenue as well as sales volume along with
better establishment of the brand in the existing market.
Promotion
It is recommended that Origin Chocolate should initiate Omni Channel
promotional strategy in their business operation. This is due to the reason that initiation
of the Omni Channel promotional strategy will help in involving both online and offline
mediums and will have better reach in the market. Origin Chocolate will be able to
determine the feedback of the customers by involving the social media marketing and
can reach out to maximum number of the customers through the offline mediums
(Ashley & Tuten, 2015). The recommended integrated communication strategies that
will be applicable for Origin Chocolate will be social media marketing, email marketing,
television commercials and news print. Involvement of different communication
strategies will help Origin Chocolate to reach out to the target segments from different
mediums.
Place
It is recommended that Origin Chocolate should have intensive distribution
approach. This is due to the fact that intensive distribution approach will help them to
get their products available across the target market without getting diluted among the
other competitors. Origin Chocolate is positioned as the premium brand and thus
initiation of the extensive distribution strategy will dilute the positioning by making the
products available deep in the market. Moreover, the online portal of Origin Chocolate
will also act as the distribution tool. Customers can locate nearby stores from the official
website of Origin Chocolate along with ordering in bulk from there.
People

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Origin Chocolate is not operating in the service sector and thus providing direct
customer service is not important for them. However, it is recommended that they
should hire right employees for the right skills in the customer complaint management.
The human resources in the customer service sector of Origin Chocolate should be
capable enough in offering the nest services. This will ensure the brand loyalty among
the customers along with generating the positive word of mouth. In addition, the
employees in the manufacturing facilities should also be skilled enough in order to have
highest efficiency.
Process
The process of Origin Chocolate should be made effective and less
intermediaries. This is due to reason that effectiveness in the process will help Origin
Chocolate in coping up with the changes in the market. The more effective will be the
process, the low will be the time involved in delivering the products to the customers
starting from sourcing of the raw materials. Moreover, it is also recommended that
Origin Chocolate should have customer centric process to have the maximum fulfillment
of the market demand.
Physical evidence
The physical evidence for Origin Chocolate will include the packaging. Jars with
attractive designs will be provided for large sizes, which will act as physical evidence
and will also help in maintaining customer recall in the long term.
Conclusion
Thus, it is concluded that based on the situational analysis, Origin Chocolate
should have effective process of marketing. This report identified the growth strategies
for their long term viability along with the target customer segments. These target
segments are having the maximum potentiality in the market and will help Origin
Chocolate to increase their revenue. In addition, the marketing mix strategies discussed
in this report will also enable Origin Chocolate to create the best value proposition for
the customers.

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