MKT600 Marketing: Origin Chocolates Business Environment Analysis

This report provides a comprehensive marketing analysis of Origin Chocolates in the Australian market. It begins with an industry analysis, highlighting the growing demand for organic and vegan chocolates. The report then delves into the macro environment using PESTLE analysis, examining political, economic, social, technological, environmental, and legal factors affecting the business. A micro environment analysis follows, focusing on consumer behavior, company capabilities, and competitor strategies. The analysis includes a SWOT table summarizing the company's strengths, weaknesses, opportunities, and threats. The report concludes by emphasizing the importance of understanding these environmental factors for Origin Chocolates to maintain a competitive edge and capitalize on market opportunities in Australia.

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

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Executive Summary
The research aimed at evaluating the different macro and micro environmental concerns that are
faced by the concerned organization, Origin Chocolates while operating in Australian markets.
The research undertook an industry analysis for identifying the trends and macro analysis
through PESTLE for assessing the business environment in Australia. The report also undertook
an evaluation of the competitors, the customers and the capabilities of the organization in
fulfilling the expectations of the customers. The report summarized the opportunities and threats
of the organization through enumeration of the SWOT analysis. Therefore, the purpose of
undertaking the report is to undertake a complete evaluation of the business market of Australia
and the prospects faced by the concerned organization.

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Table of Contents
1. Introduction..................................................................................................................................3
2. Industry analysis..........................................................................................................................3
3. Macro environment of the organization......................................................................................5
3.1 PESTLE analysis...................................................................................................................5
4. Micro environment analysis of the organization.........................................................................8
Consumer Analysis......................................................................................................................8
Company Analysis.......................................................................................................................9
Competitor Analysis..................................................................................................................11
5. Summary of Analysis................................................................................................................12
SWOT table...............................................................................................................................12
References......................................................................................................................................14
Appendix........................................................................................................................................16

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1. Introduction
The developments that are undertaken by businesses are dependent on the assessment of
needs of the customers. The concerned organization, Origin Chocolate, has taken steps to
develop bean to bar chocolate manufacturing, which are organic, and vegan in nature. It has
helped the concerned organization in gaining a competitive edge in the markets. The report will
take steps to identify the demand of the customers and the market analysis with the competitors
of the concerned business. The report will investigate the macro and micro environments of the
concerned organization and thereby identify the strengths and weaknesses of the business while
operating in accordance to the needs of the customers. The research will be using PESTLE
analysis Porter’s five force analysis and SWOT in order to identify the competitive position of
the concerned company. However, the concerned report will be limited to the strategies that are
undertaken by the same in order to maintain the competitive edge of the business.
2. Industry analysis
The Australian chocolate market is growing at $2.9 billion computed in the year 2017
and is forecasted to grow to $4.3 billion by the year 2023 (O’Kane & Wijaya, 2015). The
growth in the industry is dependent on the changing tastes and preferences of the Australian
customers and their inclination towards organic chocolates. The organic chocolate products held
the niche market in Australia. However, due to the growing health consciousness among the
Australians, the shift from milk chocolates to organic and vegan products have helped in the
development of the organic chocolate industry in Australia. The growing demand for the
premium chocolates has helped the organizations in Australia to develop dark organic chocolate
bars, which has brought about significant change in the chocolate industry. The different changes

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in the Australian economy related to employability of the consumers and the growing
potentiality of the same in affording higher quality products at the cost of high price has aided to
the development of the chocolate industry in Australia.
Industry Sector Analysis
Key Points /
Issues
Chocolate & Confectionery
Manufacturing (CCM)
Confectionary Manufacturing
(CM)
Speciality Chocolate Stores
(SCS)
Key Products Industry primarily
manufacture below chocolate
Chocolates
Cocoa bars
Confectionery
Candled nut
Industry manufacture mainly
below products
Hard confectionery
manufacturing
Soft confectionery
manufacturing
Industry operators are
primarily manufactured below
product
Premium chocolate
Specialty chocolate
Seasonal boxed chocolates
Chocolate food and beverage
Key external
factors
Health consciousness
Vegan customers
Household income
World price of sugar
Health consciousness
Vegan customers
Household income
Health consciousness
Consumer sentiment index
Target
market
Children, youngster and age
between 14 to 50
Age between 15 to 30 Age between 18 to 45

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3. Macro environment of the organization
3.1 PESTLE analysis
Political
 Unstable political scenario might affect
the capabilities of the concerned
organization in operating in Australia
due to frequent riots and strikes
(Turner & Hope, 2014)
 Development of new regulations might
challenge the capabilities of the
organization in maintaining the
efficiency of the operations
Economic
 The GDP of the Australian economy
was noticed to grow by 0.3% from
2017 to 2018 (Davies & Kitchen,
2015)
 The growing employability options has
helped in supporting the standard of
living in Australia and will thereby help
the concerned organization in locating
huge groups of potential consumers
Social
 The growth of health conscious and
vegan customers will be helping the
concerned organization in attracting the

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attention of maximum number of
customers towards the product
offerings of the business
 The product that is being offered by
the organization correlate to the
growing trend of organic chocolates
among the customers w3hich will be
helping the business in drawing the
attention of huge number of consumers
 It has been estimated that around 53%
of the Australian customers prefers
vegan propositions over dairy products,
which will be helping the concerned
business in maximizing the rate of
operations in the Australian markets
(Gallo, Antolin-Lopez & Montiel,
2018)
Technological
 Technological innovations related to
machinery and infrastructure will be
helping the business in upholding the
operations in accordance to the needs of
the same
 The development of internet services

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and the wider availability of network
will be helping the concerned
organization in undertaking huge
promotion campaigns to make the
customers aware of the pro duct
offerings
 It has been estimated that around 78%
of the households have internet
availability and more than 92% of the
youth have access to internet services
which will be helping the concerned
business in maintaining the efficiency
of the promotional campaigns
(Nissanke, 2017)
Environmental
 Different environmental regulations
that are imposed by the environment
protection agencies might affect the
capabilities of the concerned
organization in undertaking the smooth
functioning of the systems
Legal
 The imposition of ISO 22000
framework has mandated the
organization to hold quality checks

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before distributing the products which
might increase the operational costs of
the business (Henryks & Hope, 2014)
 The different regulations that are
imposed by the ACCC (Australian
Competition and Consumer
Commission) might affect the smooth
functioning of the business and holding
a monopoly market in Australia
(Henryks et al., 2015)
The opportunities that are held by the concerned organization while operating in the
Australian markets are dependent on the changing tastes and preferences of the health conscious
customers. The inclination of the target customers towards the organic and vegan chocolates
holds a vast opportunity for growth of the concerned organization in the Australian markets. On
the other hand, the enhanced potentiality of the Australian customers will be helping the
concerned organization in maintaining the efficiency while operating in the Australian markets.
The greater accessibility of the internet services to the customers in Australia also holds an
opportunity for the concerned organization in holding promotions. On the other hand, the
different quality and environment -based regulations might restrict the wide expansion of the
business in the Australian markets. On the other hand, the growth of competitors in the market
might affect the competitive edge of the business.

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4. Micro environment analysis of the organization
Consumer Analysis
Henryks and Hope (2014) noted in a research that more than 8.7% of the Australian
population arte vegan, which has helped the concerned organization in maintaining their growth
in the Australian markets. Hemmerling, Hamm and Spiller (2015) stated that the different
developments that are made by the organizations in the Australian markets are dependent on the
health consciousness of the customers. Magelund (2013) stated in a research that Australia holds
the 3rd largest vegan market in the world with an expected market elevation of $215 million by
2020. In this relation, the growth of the vegan markets will be helping the concerned
organization in developing the demand conditions for the product offerings. On the other hand,
Henryks et al. (2015) stated that 79% of the Australian customers buy products from different
online platforms like websites and e- commerce retails. The online buying behavior of the
customers has provided quantifiable opportunities for the organizational developments in
Australia. Wang et al. (2015) stated that most of the organizations in Australia offers their
product and service offerings through the different online websites and portals in order to attract
the attention of most of the customers. The assessment of the buying behavior of the customers
has helped the organizations in eradicating the supply chain related issues that are faced by the
same.
On the other hand, the propositions that are made by the concerned organization have
helped the same in attracting the attention of most of the customers in Australia. On the other
hand, the growing inclination of the customers towards the organic chocolates has helped the
business in drawing the attention of most of the customers in the market. Dedehayir et al. (2017)
noted that most of the companies design their offerings and position the sam4e in accordance to

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the assessment of the needs of the customers and market trends. In this relation, the delineation
of the changing market trends will help in identifying the prospects of the concerned
organization in making an expansion of the product range in the different parts of Australia.
Henryks and Hope (2014) stated that 83% of the Australian customers prefer quality products
over the considerations of higher price. Moreover, Gallo, Antolin-Lopez and Montiel (2018)
also noted that most of the customers in Australia undertake a rational decision making before
buying a product or service. Nissanke (2017) noted that the rational decision making of the
customers helps the same in avoiding dilemmas related to actual and perceived value proposition
of the products.
Company Analysis
The concerned organization, Origin Chocolate, has aimed at providing the customers
with best quality organic chocolates from “bean to bars”, which has helped the business in
adhering to the trend of the organic chocolates (Originchocolate.com., 2019). On the other hand,
the concerned organization also aimed at manufacturing the chocolates for the vegans. It has
helped the concerned organization in gaining a competitive advantage over the market players in
Australia. Davies and Kitchen (2015) stated that the development of the unique product
proposition helps an organization in drawing the attention of the consumer base. The growth of
the vegan customers in the market has helped the concerned organization in maintaining the
efficiency of the propositions. The different developments that are undertaken by the
organization have helped the same in supporting the sustenance of the business. The concerned
organization designed a range of chocolates in order to attract the attention of most of the
customers. It has helped the business in drawing the attention of most of the customers in
accordance to the tastes and preferences. On the other hand, the competitive pricing strategy that

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is being adhered by the organization has helped in improving the competitive edge of the same
while operating in diverse Australian markets (Turner & Hope, 2014). It has been noted that
most of the Australian customers are health conscious and expects quality over the price.
Therefore, the quality assurance that is being provided by the concerned organization has helped
the same in gaining the trust and loyalty of the customer base.