MKT600 Marketing Case Study: Donald B's Strategies and Market Analysis

This case study examines the marketing strategies of Donald B, a chocolate product maker aiming to expand globally from its Melbourne base. The analysis covers consumer buying behavior, influenced by cultural, social, personal, and psychological factors, and the importance of understanding consumer income levels. The report also assesses the micro and macro environmental factors affecting Donald B's profitability, including competitors like Mondelez, Mars, and Lindt. Key micro factors include public relations, supplier relationships, and employee talent. The study concludes by highlighting the need for Donald B to focus on consumer behavior and competitive strategies to achieve sustainable growth in the international chocolate market. Desklib offers a wide array of similar case studies and resources for students.

Running head: Marketing
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Executive summary
Marketing strategies play a effective and dynamic role in today’s modern world to
compete with rivalries worldwide. Here is the discussion about the business operations of Donald
B. The organization uses selling, advertisement and promotional strategies to promote the
chocolate products in the international market. Micro environment and macro environment
analysis and buying behavior of the consumers have been briefly discussed in the task. The
company uses different marketing strategies to target their consumer segment and attain growth
in the business.
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Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Buyer behavior in relation to the chocolate products...................................................................................4
Micro environment analysis........................................................................................................................6
Summarize the key competitors...................................................................................................................7
Macro environment analysis........................................................................................................................8
Conclusion.................................................................................................................................................10
References.................................................................................................................................................10
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Introduction
The present paper discusses about the significance and role of marketing. It explains that
how marketing strategies provide support to Donald B in order to accomplish the desired goals
and objectives. The marketing strategies are adopted by the company to create a dynamic image
and reputation in the market. In addition, marketing approach also helps the company to maintain
strong relationship with customers widely. Donald B is a chocolate product maker who has two
stores in Melbourne. The organization wants be a global player in chocolate industry. Donald B
is manufacturing various food products including liquorice, cocoa product, candied popcorn,
candied nut, confectionery, glazed fruit and marshmallow.
The company is selling its products with the help of Aldi, Woolworths and Coles. It has
been measured that consumption of chocolate products in Melbourne is increasing day by day. It
also increases the competitors in the global market. The paper outlines that how purchasing
power or buying behavior of the consumers may affect the long term mission and vision in the
international market. There are ample of elements that affect the purchasing power and income
level of the consumers. Along with this, the report explains the macro environment and micro
environment factors that may affect the profitability and result of Donald B. The paper also
outlines that how competitors affect the business of the company adversely. The macro
environmental analysis is an effective tool to sustain and cope up with rivalries in the
marketplace. More detail of the task is elaborated below.
Buyer behavior in relation to the chocolate products
The consumer behavior is the study of groups, individuals and firms and all the activities
that are associated with the use, purchase and disposal of products and services including
consumer emotional and behavior that follow or precede these activities and operations
(Solomon, Dahl, White, Zaichkowsky & Polegato, 2014). The buying behavior is significant to
operate and manage the business activities globally. The actions or activities of the customers
also affect the success and progress of Donald B. It has been found that marketing survey and
research is done by Donald B to predict the buying behavior and respond of the customers
globally. The company uses marketing mix strategies to beat and overcome the competitors in
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the international market. There are various factors such as cultural factors, social factors,
personal factors and psychological factors may affect the buying behavior of the customers
internationally (Mbatutorials, 2018). The consumer behavior includes the following:
Brand and product choice: In today’s modern world, the customers focus on the branded
products because these products provide satisfaction to the customers. Cadbury, Lindt and
Ferrero Rochers are well known chocolate brands in Melbourne. Thus, the customers choose the
well known and attractive brand in the marketplace. Along with this, customers also focus on the
food products such as chocolate and confectionery. The consumers differentiate the chocolate
products from the competitor’s products to buy the best quality of products in the marketplace.
Price: One of the significant factors that affect the buying behavior is price. The organization
needs to focus on the prices of the chocolate products to gain or attain competitive benefits
widely. It has been found that people buy mostly chocolate products in the occasions like
birthdays, and Christmas. The needs and requirements of the family may also influence the
profitability of Donald B.
Income level: It is noted that income level of the consumers plays a vital role in maximizing the
sale and revenue of Donald B effectively and efficiently. The sale of chocolate products depends
on the income level of the consumers globally. Generally, upper class and middle class people
prefer to buy the chocolate products in the international market.
Beliefs, values, attributes, economic situation and cultural factors also affect the decision making
process of buyers or customers. The high and strong level of motivation may influence the
purchasing behavior of the customers positively (Muruganantham & Bhakat, 2013). The beliefs
and learning factors also help in enhancing and increasing the purchasing power in the
competitive market. Donald B cannot survive its business widely without analyzing and
measuring the consumer behavior and income level of the customers internationally. It has been
analyzed that consumer behavior is highly affected by the cultural and social factors. These
factors may also influence the decision making process of the consumers in the rivalries market
(Hawkins, Best & Coney, 2009). If the company wants to enhances and increase the returns and
outcomes then it needs to focus on the consumer behavior and income level of the consumers.
The buyer behavior determines the operating profits and revenue of Donald B.
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Micro environment analysis
There are enormous micro environment factors that may immediately affect the growth
rate of Donald B. These factors also have direct impact on the decision making process and
performance of the firm. The micro environment factors entail producers, competitors,
customers, suppliers and publics. It has been analyzed from the various studies that Donald B
can control the internal factors by using effective and dynamic strategies in the marketplace. The
micro environment factors include the following:
Publics: The growth and profitability of Donald B is dependent on the public relations. The
brand image of the company also helps in deciding the future of the market. The public include
shareholders, media, environmentalists, and investors who maintain direct connection with the
organization. Thus, Donald B should maintain reciprocal and strong relationship with public to
attain the success and growth in the business. In today’s competitive world, public plays a
fundamental role in internal environment of the business. The local public may influence the
ongoing business of Donald B. The local media also plays empirical role in determining the
success of the company (Kokemuller, 2018).
Manufacturers and suppliers: It is stated that manufacturers and suppliers plays a primary role
in the growth and success of Donald B. It is noted that the company is dependent on the suppliers
to sell the chocolate products in the global market. The suppliers and manufacturers help in
creating good and dynamic value to their customers and furthermore, they also help in generating
the profits in a hassle free manner. It is noted that Donald B is a new leader in chocolate industry
thus; they need to maintain positive relation with suppliers and manufacturers (Brinkman,
Navarro & Harper, 2014).
Competitors: There is intense and high competition in chocolate industry that can affect the
revenue and returns in the global market. The competitors also may have direct impact on the
market share and progress of Donald B. The firm needs to focus on the market strategies of the
rivalries to capture the entire market. The competitors of Donald B include Mondelez, Mars,
Lindt and Woolworths. It has been noted that premium products are also being offered by these
competitors meet the long term requirements and needs of the customers. The rivalries are
offering the chocolate products based on capacity designs, packaging and pricing of the different
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perks. The competitors are offering the products at lower rate hence, it may affect the outputs
and productivity Donald B negatively.
Employees: The workforce is one of the biggest assets for the company therefore; the company
should focus on the talented and skilled worker to stand out against the competitors worldwide.
Apart from this, distribution channels also are considered by Donald B to fulfill the needs and
wants of the customers (Fleisher & Bensoussan, 2015).
Summarize the key competitors
The competitors may influence the progress and profitability of Donald B. Mondelez is
one of biggest competitors of Donald B that directly affect the consumer behavior in a large
extent. Mondelez provides confectionery, beverage and food products to the customers across the
world. It provides products to the customers at appropriate prices globally (Aaker &
McLoughlin, 2010). The other competitors include Mars, and Lindst that may impact on the
effectiveness and outputs of Donald B. These competitors are producing the similar products as
Donald B. The competitors are producing innovative and dynamic food and beverage products in
the market to stay in the competitive market. Mondelez also offers snacks, beverages and food
brands in all over the world. The firm is investing huge amount to attract and retain the
maximum number of customers in the global market. It is also seeking to expand and explore in
countries where demand for drinks and snacks are showing most growth (Munshil, 2013).
Let’s talk about other competitor, Nestle also provides drinks, culinary, chocolate and
confectionery products to target audience around the world. The well known brands of Nestle
include Nescafe, Nespresso and KitKat. The organization provides healthy and delicious
products to the key target audience in the marketplace. It may affect the sales volume and market
share of Donald B internationally. Mainly, the organization focuses on the middle class and
upper class people to generate maximum profits and outcomes. The company also targets the
qualified people who want to eat chocolate products widely (Monteiro, Gomes & Cannon, 2010).
Lindt is a Swiss chocolate firm that provides chocolates in various flavors in the
competitive market. It also provides nuts, assortment, while chocolate, hazelnut and dark
chocolate to the target audience. It focuses on the lower class people who want to buy chocolate
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products at appropriate and cheap prices. Apart from this, it also focuses on women also who are
between the age group of 25-48 years.
If talk’s about Mars, the company renders various food, drinks, chocolates and Wringly
to the customers around the world. Snicker and Mars bar and M&M’s are the main and famous
brand of Mars. The organization offers variety of food products such as bite size, hazelnut bar,
dark chocolate, stuffed snacks, dark chocolate cookie bars and peanut butter dark chocolate and
others. The main aim of the company is to provide tasty and delicious products to the customers
around the world. Mainly, Mars focuses on the needs and requirements of the each age group of
people. Marketing research, survey, and seminars are done by the company to measure and
determine the desires and expectations of the customers in the competitive market (Finne &
Sivonen, 2008).
Nestle Mondelez Lindt
Product Nestle provides ample
of food and beverage
products to the
customers across the
world. It also provides
chocolates, prepared
dishes and milk
products.
The company renders
block of chocolates,
ice-creams, boxed
chocolates,
confectionery items
and drinking
chocolates.
The company
specializes in seasonal
confectioneries,
chocolate products
and typical sweets.
Price Nestle is a global
leader in the market
thus it sets the high
prices of the products.
The organization sets
the premium prices of
the products because
it provides excellent
quality of products
and services to the
As the quality of
products is high
therefore, the
company sets the high
or premium prices for
the food and beverage
products.
It is noted that
chocolate market is an
oligopoly market and
Lindt is one of the
biggest leaders in the
market. Appropriate
prices of the food
products are set by the
company.
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customers.
Place Distribution strategy
is used by the firm
while distribute the
food and beverage
products across the
globe (Mbaskool,
2018).
It is noted that the
company provides
products in urban
areas as well as A, B
and C category towns.
The firm has 60 stores
in US and further
Lindt also sells its
products in France,
Italy, and USA.
Currently, the firm is
operates and manages
its operation in more
than 100 countries
globally (Mbaskool,
2018).
Promotion Sales promotions are
done by the company
to attract maximum
number of customers
globally. Along with
this, it also uses
advertisement and
promotion strategy to
gain competitive
benefit.
Effective and unique
advertisement strategy
is used by the firm to
attain competitive
benefits in the
international market.
Direct selling strategy
is also initiated by the
company.
Digital advertising
strategy is used by the
company and apart
from this, it also uses
various social media
channels to promote
the products across
the globe (Mbaskool,
2018).
Key message The company touches
the lives of billions of
people in the market.
The company
recommends that
healthy and delicious
products should be
used by customers
across the world
Mondelez wants to
provide fully
satisfaction to the
customers by
providing delicious
and tasty food
products widely.
It is suggested Lindt
wants to provide
delicious and tasty
products to the
customers.
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(Mbaskool, 2018).
Strengths and weaknesses of Donald B
Strengths
 The company has built and developed a well reputation and image in the market.
 Unique and dynamic research and development team is maintained by the firm.
 Strong and dynamic culture and values.
Weaknesses
 Lack of nutrition value is one of the significant weaknesses of the firm.
 Sales tend are seasonal in the company.
Macro environment analysis
It is stated that macro environment factors may influence the progress and survival of the
business. The macro environment factors are uncontrollable because these factors cannot be
controlled and managed by the company (Frue, 2017). The macro environmental factors are
significant source to understand and evaluate the entire market globally. The macro environment
factors are discussed below.
Political factors: It is noted that ample of political in Melbourne may affect the sale volume of
Donald B. The political factors include tax rate, favored trading partners, pricing regulations,
wage legislations and mandatory employee advantages also affect the efficiency and
performance of the company adversely as well as positively. The product labeling and other
requirements in confectioners could also affect the survival of the company. It has been analyzed
that stability of the government may also affect Donald’s B chocolate products. The company
must focus on the political factors while expanding and flourishing the operations and activities
in a large extent. After the various studies, it is noted that Australia follows strong and dynamic
political system for handling the challenges and risks of the market (Nestle, 2013).
Demographic: There are enormous factors that affect the objectives and goals of the company.
Various market segments are highly influenced by demographic forces such as age, ethnicity,
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and household lifestyle (Squicciarini & Swinnen, 2016). It is noted that lifestyle of Australian are
dynamic and high thus, they prefer to buy the products which are sold by the companies at high
rate. The companies produce the chocolate products for all people in the country. It is stated that
aging population mainly prefer to eat chocolate products rather than other food products. The
demographic factors play an empirical role to maximize the sale and revenue of chocolate
products in the international market (Keller, Parameswaran & Jacob, 2011).
Natural factor: The natural products such as forests, renewable resources and marine products
also may affect the production of Donald B. These products may affect the success of the
company positively and adversely in the market. The natural trends like healthy, premium and
flavors products also impact on the long term success of Donald B. The company should focus
on the natural trends to cope up and strive with rivalries in the marketplace (Cauvain & Young,
2008).
Technological factor: One of the significant factors that can affect the production of the firm is
technology. E-commerce plays an important to increase the operating profit and revenue of
Donald B (Lee, 2010). Innovative and advanced technology must be used by Donald B to run the
business activities and operations smoothly. Technology factor helps to conduct business
successfully and effectively. It should make attractive and unique packaging strategies to build
and develop a dynamic image in the international market.
Economic factor: The economic elements include exchange rate, growth rate, employment rate,
interest rate and inflation rate. Changing inflation rate and recession put direct impact on the
business of Donald B. The changing behavior of the consumers also impact on the chocolate
products widely. The rising prices of raw material may also affect the behavior of the suppliers
internationally. No company cannot grow and flourish the business globally without focusing on
the economic factors (Doole & Lowe, 2008).
Cultural factor: The cultural factors include custom, values, beliefs, behavior and income level
of the consumers that affect the effectiveness and production of Donald B. The cultural factors
also affect the buying behavior of the consumers (Thornton, Ribeiro-Soriano & Urbano, 2011).
Therefore, Donald B needs to focus on the socio-cultural factors and the company should also
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focus on the marketing trends to improve and enhance the image of the company (Beckett,
2011).
Conclusion
It concludes from the above case study that unique and dynamic marketing strategy is an
important and effective part of each and every company. No company can build and develop a
dynamic image without using and initiating the marketing strategies in the marketplace. The case
study shows that how Donald B uses marketing strategy to improve and enhance its goodwill
internationally. Donald B is a chocolate makes who produces innovative and tasty chocolates for
the consumers globally. The firm should focus on the buying behavior and income level of the
target audience globally. In today’s modern world, the firm is increasing and enhancing its
operating income and returns by focusing on the macro environment in a large extent. Along
with this, the chocolate products must be sold by the company at suitable prices to attract wide
range of customers worldwide. The high and intense competition put direct pressure on Donald
B to be a leader in the global market. If the company wants to maximize outputs and returns then
it should identify and measure the potential customers. Pestle analysis, SWOT analysis and
porter diamond model are used by Donald B to identify and determine the threats, risks and
challenges of the market. The micro environment factors are also analyzed to identify and
measure the strengths and weaknesses of the company.
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