MKT600 Marketing Strategies: Donald B Case Study in Melbourne

This case study provides an in-depth analysis of Donald B, a chocolate product maker with two stores in Melbourne, aiming to expand internationally. It examines buyer behavior in relation to chocolate products, focusing on demographic, geographic, and psychographic factors influencing consumer choices. The report analyzes Donald B's micro-environment, including suppliers, marketing intermediaries, customers, and competitors such as Nestle, Hershey, and Lindt. It also evaluates macro-environmental factors like political, economic, social, and technological influences affecting the company's profitability and success. The study concludes by emphasizing the importance of innovative strategies, product differentiation, and pricing strategies for Donald B to compete effectively in the global market. Desklib offers a variety of resources, including past papers and solved assignments, to aid students in their studies.

Running head: Marketing
Marketing

Marketing
Table of Contents
Introduction.................................................................................................................................................3
Buyer behavior in relation to chocolate products.........................................................................................3
Analyze the micro environment...................................................................................................................4
Competitors.................................................................................................................................................6
Macro environmental factors.......................................................................................................................7
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9
2

Marketing
Introduction
Donald B is a chocolate product maker and it has own two stores in Melbourne. The company
wants to compete with rivalries in the international market. The firm provides cocoa product,
glazed fruit, confectionery, drinking chocolate, candied nut, marshmallow and candied popcorn
etc. It has been analyzed that Donald B is planning to explore the business activities at
international level. By exploring and expanding the business globally, Donald B is trying to cope
with rivalries in the market. The company provides various chocolate products to the target
audience in order to hit the competitors. Donald B is selling its products with the help of Aldi,
Coles,and Woolworths. In today’s era, the company is maximizing its revenue and returns by
producing innovative and delicious chocolate products. It also focuses on the business level
strategies to develop a dynamic brand image in the international market.
The primary motive of this task is to outline and explain the significance of marketing. The
consumer behavior in relation to the chocolate products has been elaborated in the report briefly.
Apart from this, the paper also discuses about the micro environment factors that could affect the
internal business of Donald B. SWOT analysis is done to analyze and evaluate the strengths and
weaknesses of Donald B. Furthermore, here is the discussion about the competitors of the
company that put direct impact on the business operations and actions. The competitor is one of
the significant parts of the company that should be considered by the company while flourishing
the business internationally. Moreover, macro environment also have been explained in the task.
The macro environment consists various factors such as political, economic, socio-cultural,
technological, legal and environmental factors. These macro environment factors may affect the
business actions and activities adversely. More detail of the task has been discussed below.
Buyer behavior in relation to chocolate products
It shall be noted that consumer behavior is an effective and significant concept which need to be
taken care by the company while selling the chocolate products globally. No company can
survive and grow its business without analyzing and identifying the behavior of the consumers in
the international market (Visschers et al, 2013). Various models have been developed by the
company to evaluate and determine the buying behavior of the consumers widely. The buyer
3

Marketing
behavior is affected by various factors such as demographic, geographic, psychographic etc.
After considering these factors, segmentation is done by the company effectively and efficiently.
Mostly girls and kids prefer chocolate products in a large extent. Thus, Donald B needs to focus
on the needs, requirements and wants of these customers. The culture and society within the
community also put impact on the buying behavior of the consumer. Chocolate is a product that
is consumed by mass and it is easy available to everyone (Solomon et al, 2014). The customers
demand for the chocolates according to their tastes and preferences. Along with this, consumers
are sensitive towards the various factors of chocolates such as shape of the chocolate, its
consistency in the mouth, touch and its melting etc. The social factors such as culture, values,
beliefs, and income level also affect the selling of the chocolate products globally. There are
several religion in the world and some restricts many product in the society. But chocolate is that
which is consumed by the people of all the religions. Each and every people love taste and they
prefer to buy the chocolate. Therefore, Donald B may take ample of benefits by selling the
chocolate products to the customers across the world. The psychological factors also affect the
buying behavior of the consumers of chocolates. The psychological factors highly involve
learning, attitude, motivation, and health. Motivation is an effective and significant factor that
drives the sales of the chocolates as if the requirements and desires of the consumers for
chocolate products are high then they will go to buy the chocolates. The company needs to focus
on the income level of the consumers to sell the products in the marketplace. Survey and
research should be conducted by Donald B to analyze and evaluate the behavior of the
consumers in a large extent (Aaker and Biel, 2013). These survey used a questionnaire that
included questions related to the buying behavior and income level of the consumers. The buying
behavior and income level of the consumers is the strong and high product portfolio of the firm.
The success and growth of Donald B is dependent on the buying behavior of the consumers.
Thus, the company should focus on the buying behavior of the consumers to gain competitive
benefits in the competitive market (Sheth, 2011).
Analyze the micro environment
It is noted that micro environment affect the internal activities and operations of Donald B. The
micro environment factors can be controlled by the company successfully. It also may affect the
company’s ability to maintain and develop successful and effective customer relationship in the
4

Marketing
marketplace (Squicciarini and Swinnen, 2016). The micro environment of Donald B has been
discussed below.
Suppliers: It is stated that suppliers provide raw material resources, labors and unfinished good
to the firm to produce and manufacture chocolate products globally. The effectiveness and
efficiency of the suppliers determines and identifies the potential of the firm in terms of
manufacturing the goods and services. The company cannot survive the activities and operations
without maintaining reciprocal relationship with suppliers. Moreover, the suppliers of the
company can be divided into two parts such as material suppliers and labor suppliers. It has been
found that labor supplier’s deal with the quantity of worker is essential at the maximum level in
order to reduce and prevent the loss of labor force and it also prevents the shortage of labor. The
firm maintains dynamic and favorable relationship with suppliers to maintain optimum quantity
of chocolate products (Dahlén, Lange and Smith, 2010).
Marketing intermediaries: It shall be noted that market intermediaries of Donald B help to sell,
advertise and distribute its chocolate product to the end customers. Further, the physical
distribution network of the firm decided the source by which the finished product is provided to
the end customers on time. Apart from this, marketing intermediaries ensure the adequate storage
of the company that reduces and prevents the damage products. The marketing intermediaries of
Donald B help the company to promote the chocolate products in a large extent. They also help
in maintaining dynamic and effective relationship between the customers and company. The
other intermediaries of Donald B include banks that help to provide the adequate funds to the
firm and play a significant role in expanding and exploring the business globally (Khanna and
Palepu, 2010).
Customers: The customers of the company include retail and grocery stores that provide
chocolate products of the firm to the end users at suitable prices and appropriate profit. The end
users of Donald B are the consumers who utilize its products widely. Along with this, the
company is trying to build a bright brand image in the eyes of the end users.
Competitors: It is noted that Donald B is trying to capture the entire market globally. The
competitors may affect the efficiency and outcomes of the organization adversely. The company
5

Marketing
focuses on the plans, strategies and policies of the competitors to build a dynamic and unique
brand image in the marketplace (Herzig, 2014).
Marketing: It is one of the significant factors of micro environment that helps in gaining
rivalries benefits in the international market. Donald B uses marketing strategy to capture the
entire market globally and further it also help in achieving the desired goals and objectives. The
survey ad research is done by the company to accomplish the long term mission and vision in the
international market (Hair et al, 2008).
Competitors
It has been found there are ample of competitors may affect the growth and sales rate of the
company. The competitors of Donald B include Nestle, Hershey, Mars, Lindt and Mondelez.
These competitors highly affect the operations of the company adversely.It has been found that
Hershey renders sugar confectionery and chocolate products, gum, refreshment products and
mint products to the customers (Pires and Agante, 2011). The most well known brands of the
firm include ice breakers, Hershey, kisses, reese’s and twizzlers. The target audience of the
organization includes adult and children who prefer chocolate products mostly. In today’s era,
the organization is also targeting mothers because they play a significant role in creating
maximum loyal and trustworthy customers in the marketplace. Along with this, Donald B also
focuses on the health conscious people in the competitive market (Aaker and McLoughlin,
2010). The competitors such Nestle and Hershey also provide confectionery drink, chocolate,
frozen food and coffee products to the customers. These competitors also provide healthy and
tasty choices to the customers widely. The target market of Hershey and Nestle are high, middle
and upper class people. All these competitors could also affect the success and effectiveness of
Donald B adversely. Lindtis is a confectionery and swiss chocolatier company that provides tasty
products to the customers. The firm is also famous for chocolates and truffles. The target
audience of the company is low income customers. Mondelezsells also offers chocolate products
in Melbourne that may affect the activities of Donald B. It has been analyzed that Donald B
should make innovative strategies and policies to build a strong and dynamic financial image in
the market.Aside this, it also must focus on diversification strategy to differentiate its chocolate
products from the competitors globally (De Bono, 2015). Pricing strategy shall be used by the
6

Marketing
firm to sell the chocolate products at appropriate prices in the international market. Product
differentiation is one of the empirical and important strategies that can be used by Donald B to
distinguish its products in terms of quality and aspects from the rivalries (Porter, 2011).
Macro environmental factors
It has been found that macro environment largely affect the profitability and success of Donald
B. If a company operates and manages business activities and operations at international level
then it should focus on the macro environmental factors. These factors can be affect progress of
the firm directly as well as indirectly (Cherunilam, 2009). The macro environmental factors
include the following.
Political factor: The political factors play a significant and vital role in determining and
analyzing the factors that can impact on the long term profitability and outcomes of the firm.
Donald B is a chocolate company that operates and manages its business in various countries.
The political factors include the rules, norms and regulations that put direct impact on the growth
and outputs of the firm. Change in taxation and legislation may affect the operations of the firm.
Timescale of legislation change is also one of the significant factors that could affect the
efficiency and effectiveness of the firm. All these factors may affect the efficiency and
productivity of Donald B positively and adversely as well.
Economic factor: The economic factor such as saving rate, inflation rate, exchange rate, interest
rate that affect the profitability of Donald B directly. The position and current economy trend
such as declining, stagnant and growing also have direct impact on the sales rate of the firm.
Globalization also affects the success and sustainability of the firm adversely. Increasing price of
raw material will also affect the performance and effectiveness of the company adversely. It has
been found that different countries follow different level of development. The economies of the
countries also differ everywhere. Thus, Donald B has to set various economies policies and
strategies for different targeted segments. The company should focus on the economic factors to
gain competitive benefits in the international market (Wilkinson, 2013).
7

Marketing
Social factor: The social factors include customs, values, attributes, beliefs and income level of
the customers that may affect the sustainability and results of the company. Changing consumer
attitudes towards delicious and healthier products also have direct impact on the outcomes of
Donald B. Apart from this, understanding and determining of consumer behavior or income level
is vital and effective to ensuring a personal approach to marketing (MacFie and Meiselman,
2012). Changes in population growth rate, religious and age elements put impact on the
company’s business and operations. Beside this, job market trend, employment patterns and
attitudes towards work according to various age groups also have various effects on the
company. Life style of the consumers also puts direct impact on the revenue and returns of the
firm (Torres-Moreno et al, 2012).
Technological factor: Technology gives ample of opportunities for the expansion and
development of new chocolate products or improvement of existing ones. In today’s modern era,
Donald B focuses on the e-commerce, internet and advanced technologies to overcome the
competitors and build a dynamic image in the minds of the customers. The company uses various
innovative technologies and resources to compete with competitors in the global market. By
using advanced and innovative technology, the firm has been able to beat the competitors in the
international market (Afoakwa, 2016).
Legal factor: It has been found that various legal factors such as rules, regulations, and norms
also affect the long term sustainability and growth rate of Donald B. The legal factor affects the
operations and activities to meet the demand of chocolate products in the marketplace. It is noted
that Donald B should follow the health and safety laws and norms for their workers and also
produce chocolate products for the customers widely.
Environmental factor: The environmental factor plays a vital and fundamental role to
accomplish the desired goals and objectives in the competitive market. The world is more
conscious to have favorable and clean environment. The organization need to focus on these
legislations and rules to produce healthy and tasty chocolate products with environmental
friendly operations and activities. Social contribution has also been considered by the company
to stand out against the competitors. Donald B should focus on the climate change, weather and
environment to maximize the profitability and outputs (Vlachvei et al, 2016).
8

Marketing
Conclusion
From the above mentioned limelight event it is concluded that Donald B can effectively and
successful expand and flourish the business internationally. The above mentioned analysis shows
that how the company is generating profits and revenue in a large extent. The buyer behavior
plays an important role in increasing returns and sales in the competitive market. The income
level of the consumers has been discussed in the task in terms of chocolate products to maximize
the goals and objectives widely. Along with this, the paper analyses that how micro and macro
environment may affect the productivity and growth rate of Donald B. Effective and unique
market strategies are used by Donald B to beat the competitors at international level. The level of
competition has also been summarized in the task. It is recommended that Donald B should focus
on the corporate level and business level strategies to achieve the rivalries benefits in the market.
Apart from this, the company must also focus on the advertisement and promotional strategies to
stay in the rivalries market. Porter five forces analysis and SWOT analysis must be done by the
company to identify and analyze the opportunities and threats of the market. Furthermore, it also
helps in identifying and measuring the challenges and risks of the market.
9

Marketing
References
Aaker, D.A. and Biel, A.L., 2013. Brand equity & advertising: advertising's role in building
strong brands. Psychology Press.
Aaker, D.A. and McLoughlin, D., 2010. Strategic market management: global perspectives.
John Wiley & Sons.
Afoakwa, E.O., 2016. Chocolate science and technology. John Wiley & Sons.
Cherunilam, F., 2009. Business environment (p. 642). Himalaya Publishing House.
Dahlén, M., Lange, F. and Smith, T., 2010. Marketing communications: A brand narrative
approach. John Wiley & Sons.
De Bono, E., 2015. Serious Creativity: How to be creative under pressure and turn ideas into
action. Random House.
Hair, J.F., Celsi, M., Ortinau, D.J. and Bush, R.P., 2008. Essentials of marketing research. New
York, NY: McGraw-Hill/Higher Education.
Herzig, H.P., 2014. Micro-optics: elements, systems and applications. CRC Press.
Khanna, T. and Palepu, K.G., 2010. Winning in emerging markets: A road map for strategy and
execution. Harvard Business Press.
MacFie, H.J.H. and Meiselman, H.L., 2012. Food choice, acceptance and consumption. Springer
Science & Business Media.
Pires, C. and Agante, L., 2011. Encouraging children to eat more healthily: The influence of
packaging. Journal of Consumer Behaviour, 10(3), pp.161-168.
10

Marketing
Porter, M.E., 2011. Competitive advantage of nations: creating and sustaining superior
performance (Vol. 2). Simon and Schuster.
Sheth, J.N. ed., 2011. Models of buyer behavior: conceptual, quantitative, and empirical.
Marketing Classics Press.
Solomon, M.R., Dahl, D.W., White, K., Zaichkowsky, J.L. and Polegato, R., 2014. Consumer
behavior: Buying, having, and being (Vol. 10). London: Pearson.
Squicciarini, M.P. and Swinnen, J.F. eds., 2016. The economics of chocolate. Oxford University
Press.
Torres-Moreno, M., Tarrega, A., Torrescasana, E. and Blanch, C., 2012. Influence of label
information on dark chocolate acceptability. Appetite, 58(2), pp.665-671.
Visschers, V.H., Hartmann, C., Leins-Hess, R., Dohle, S. and Siegrist, M., 2013. A consumer
segmentation of nutrition information use and its relation to food consumption behaviour. Food
Policy, 42, pp.71-80.
Vlachvei, A., Notta, O., Karantininis, K. and Tsounis, N. eds., 2016. Factors affecting firm
competitiveness and performance in the modern business world. IGI Global.
Wilkinson, F. ed., 2013. The dynamics of labour market segmentation. Elsevier.
11