Palm Delight: Hofstede Dimensions, Marketing Mix, and STP Analysis

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This report provides a comprehensive analysis of Palm Delight, a UK-based confectionery product, examining its marketing strategies within the context of Hofstede's cultural dimensions. The report explores how these dimensions, including Power Distance Index, Individualism versus Collectivism, Masculinity versus Femininity, Uncertainty Avoidance Index, Long- versus Short-Term Orientation, and Indulgence versus Restraint, influence Palm Delight's sales and purchase decisions in different countries, specifically the US and Malaysia. Furthermore, the report delves into the marketing mix, discussing product features, pricing strategies, distribution channels, and promotional activities. It also analyzes Palm Delight's segmentation, targeting, and positioning (STP) to identify its target market and competitive advantages. The report concludes with a discussion on the implications of these marketing strategies and cultural factors on the brand's overall success and potential for expansion.
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Executive Summary
The report has a considerable discussion on marketing concepts that includes Hofstede
cultural dimensions, Marketing-mix, and STP (segmentation, targeting and positioning).
Report describes product, price, place and promotion in a considerable manner with
appropriate range which it is offering and with its prices according to chocolate sizes.
Further, the discussion has been continued on positioning, segmentation, and targeting of
products of Palm delight.
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TABLE OF CONTENTS
INTRODUCTION........................................................................................... 2
Hofstede Cultural Dimensions....................................................................2
Power Distance Index........................................................................................................................2
Individualism versus Collectivism......................................................................................................3
Masculinity versus Femininity...........................................................................................................3
Uncertainty Avoidance Index............................................................................................................4
Long- Versus Short-Term Orientation...............................................................................................4
Indulgence versus Restraint .............................................................................................................5
MARKETING MIX......................................................................................... 5
References ............................................................................................... 11
Appendixes……………………………………………………………………………………………12
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INTRODUCTION
This report brings out a discussion on UK`s confectionary product named
as Palm delight. It highlights how determinants of the Hofstede cultural
dimension affects the sales of palm delight in two countries while making
purchase decisions. It includes power distance index, which indicates
patterns of expending personal disposable income affecting the
purchasing pattern of Palm delight. It will also show how masculinity and
femininity affects the Palm delight purchases. The report also includes a
considerable discussion on elements of marketing-mix such as price,
product, promotion, and place. The company offers a huge range of
flavours from Hazel nut, fruits, rose, mint, and cloves. At last, it highlights
how both young and adult individuals can be convinced with the inclusion
of health concerned ingredients in it along side its luxurious packaging
(Datta, Ailawadi, and van Heerde, 2017).
Hofstede Cultural Dimensions
Power Distance Index
PDI index measures distribution of wealth, power, and among culture,
individuals, and nation. PDI provides the extent to which subordinates do
follow impulses of authoritative. If PDI is, lower in certain countries when
organisations work closely with citizens. Higher PDI indicates strong
hierarchy of authority. When analysing the PDI of two selected countries
such as US and Malaysia. Power distance in US where cultures and
societies are not nearly equal because this range differs from culture to
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culture. US scores 40, which is low because it values liberty and justice for
all. On the other hand, Malaysia has highest PDI of score 104 (Hofstede
Insights, 2019). As palm delights aims people of all genders. The product
has luxurious characteristics that target the country that has low PDI.
Therefore, not everyone in the country have liberty and same level of
income. Whereas, on the other hand, the purchasing system of palm
delight should not be only limited to seasonal celebrations. This is
because targeting US is more appropriate (Hofstede Insights, 2019).
Individualism versus Collectivism
Collectivism dimension defines the degree to which a person is integrated
in groups. Whereas, individualism find societies that ties the individual
that are loose. Individualism is considered good, independent, self-reliant,
and strong. Collectivism is characterised by societies where people are
bound in strong extended family and cohesive in-groups from birth, which
continuously protect them while unquestioning loyalty. For instance-
Germany is considered individualistic because of its high (67 percent)
when as compared to Guatemala that have strong collectivism (6 percent)
(Mazanec, Crotts, Gursoy, and Lu, 2015). When analysing Germany,
people focus more on individual rights and personal achievements. In
Germany, people tend to loose relationships than whereas in other
countries, people have extended families. Another example is U.S., where
people hope for better quality of life with higher living standard as
compared to their parents. Same as seen in PDI dimension, this dimension
also targets and favours US for purchasing palm delight on regular basis
(Hofstede Insights, 2019).
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Masculinity versus Femininity
This dimension represents masculinity and known for heroism, material
rewards, and assertiveness for success. Whereas, femininity stands for
modesty, caring, and cooperation. Although, females prefer more
chocolates when preparing new food items such as baking. For instance-
Germany relies on masculine culture with 66 percent when scaling on
Hofstede whereas, US scores 62 on the same scale. Although, both
countries, have similar values in terms of sharing culture (Bakir, Blodgett,
Vitell, and Rose, 2015). While focusing on purchasing concern for grocery
items, the index of MVF should be low so that females get an opportunity
to purchase grocery products on their own because they only know what
they want. Sometimes, they find products feasible after going to the
supermarkets (Ball, and Cope, and Mondelez UK R&D Ltd, 2018).
Uncertainty Avoidance Index
It deals with society tolerance for uncertain situations. This index indicates
to what extent any cultural program can lead it to feel comfortable or
uncomfortable. For example- Germany have high uncertainty avoidance,
which is around 65 percent as compared to Singapore, which still relies on
8 percent. Locals of Germany have a tendency to plan accordingly in
order to avoid uncertainty. Germany relies on rules, regulations, and laws
that wanted to reduce the risk to minimal and continue with the changes.
Whereas, US scores 46 percent, which is, lower than German culture (65
percent). Uncertainty to avoidance is low in US as it is driven by national
cultures. As US has already played an important role in chocolate history.
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Quakers was the first to develop the techniques that made the processing
of refined chocolate possible. UK is the largest consumer of chocolate that
also introduced craft and artisanal chocolate. It made it possible and
initiated transformation of small blocks of cocoa in crafty chocolate
(Ejlerskov, Stead, Adamson, White, and Adams, 2018).
Long- Versus Short-Term Orientation
Long-term indicates persistence, thrift, sense of shame, and balancing
relationships by status. Short-term indicates that personal stability,
reciprocating favours and gifts, and respect or culture. On the scale of
hofstede, US scores 29 and china scores 118. US relies on short-term
orientation (Favaretto, Dihl, Barreto, and Musse, 2016). This emphasises
on short-term gains which is reflected in strong sense of social standards
and nationalism. People in US more relies on short-term that favours gifts,
it may be in the form of packets of palm delight. While undertaking
personal stability, which is empowered by flattery, a person is less willing
to compromise and it is seen as weakness (The Chocolate Way, 2016).
Indulgence versus Restraint
A country with high IVR score allow people to encourage free gratification
of own emotions and drives such as having fun. A society with low IVR
(indulgence versus restraint) emphasise on suppressing the gratification
and regulation of conduct and behaviour (Nutfruit.org. 2018). As per this
model, eastern European countries that includes Russia that indicates low
IVR. Country with low IVR argues that they are characterised by restrained
culture, as there tendency to pessimism. People here emphasis on leisure
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time as the dimension suggests that people try to restrain self to high
degree. The demand of palm delight can be relatively more as it
encourage professionalism in US (The Chocolate Way, 2016).
MARKETING MIX
Product
Palm delight is a luxurious product in the confectionery market targeting
high-end consumers. It is more suitable for vegetarians made up of real
milk chocolate. It does not include artificial colour and flavour. The
product is comprised of energy (5 percent), Fat (5 percent), saturates and
sugars (13 percent both), and salt (8 percent). Product named as slimfast,
organica (hazelnut nougat delight), Turkish delight, sliced coconut, Quality
Street, dark chocolate, and angel delight (Mind tools, 2018). Palm delight
has ingredients from highly quality sourced that provide customers a
unique taste. This product meets the expectation of luxurious sweet. It
offers a range of different flavours. Moreover, brands such as Chocolatier
Charbonnel Et Walker, Godiva, and Palm Delight seem to operate equally
well that provide the highest quality products and charging high prices
(The Chocolate Way, 2016).
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Price
The target group for this product are generally population with high
income. Although, the prices are high but people are still ready to spend a
considerable value with delicious tastes of palm delights (Nutfruit.org.
2018). The prices are based on quantities-
Small (3 pieces) - 1.85 pounds
Medium (6 pieces) - 3.40 pounds
Large (8 pieces) - 4.50 euro pounds
Premium medium (8 pieces) - 10.6 pounds
Place
This product can be offered on departmental stores such as Harrods,
Selfridges, high retailers. Apart from this, this can offered at expensive gift
shops and food courts. To promote it for domestic purchasing, high end
supermarkets such as marks and spencer and Waitrose are perfect as it
can placed near counters. Online platforms such as its own website palm
delight and other online stores such as Amazon, which even offers
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different flavours such as Mint, Strawberry, and Clove. Pistachio. Hazelnut,
Almond & Coconut, Original Cinnamon. Ginger. Other natural ingredients
including, Real Ginger, Cinnamon, Various Nuts, Clove, Rose Petals etc
(Nutfruit.org. 2018).
Placement
Placement refers to placing the product in the mind of the customers in
order to induce the customers to purchase Palm delight. To promote the
product, palm delight uses several online platforms such as social media,
Facebook, snapchat, and instagram with the help of pictures and short
craving videos. Attractive brochures, glittering packaging, effective
colours and collaborating with decorative designers can attract children
(Saleem, and Larimo, 2017). A deluxe packaging, magazines, search
engines ads, and TV show sponsors can promote the product in an
effective way. As the promotion activities has to be undertaken on the
basis of culture of two different countries named as Europe and UK. The
effective way to maximise the selling of product is digital marketing to
boost purchases by creating awareness about the brand (Khaleeli, 2018).
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Different shapes may attract target customers
SEGMENTATION, TARGETING AND POSITIONING
Segmentation
It is true that every company is required to segment properly its market
by knowing its value of product and services. Segmentation can be done
on various basis. In the demographic segmentation, Palm Delight has
targeted both genders and people between the ages of 20 to 40. Between
this age group also, it has segmented those people who want some
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healthy treats. In geographic segmentation, it has targeted the retailer
shops in the UK (Torday, 2017). Besides this, it also serves in the
departmental as well as gift shops. Taking into consideration the
psychographic segmentation, it has segmented those having unique
lifestyle of getting some healthy and rich ingredients. Customers who
have high income are segmented under the behavioural segment. Usually
those clients are included who want some different or innovative product
and treat them with special gift.
Targeting
A target market is that group of customers for which company decides to
achieve its marketing efforts. Palm Delight does not target all type of
customers. It usually target those customers who want some high price as
well as high quality and high price products. It tries to provide the
chocolate with a combination of nuts, dates and chocolate (Off, 2016).
Therefore, it tries to target the people who love flavoured chocolate. In
addition to this, it also sells the seasonal chocolates. Therefore, the main
target in its target market is those persons who also prefer seasonal
chocolates. Through this, it want to aware the people for eating
chocolates with rich ingredients. It is seen that fruits, candy, nuts are
raising trend in the market of confectionary. Therefore, the basic target
market in the Palm Delight is those who are the followers of food trends
that are going on in market. By following all these trends, it seeks to serve
the sugar free and natural chocolates (Laurence and Adisa, 2018).
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