MMK101 Assignment 1: STDP Framework for Haigh's Chocolate

This report conducts an STDP (Segmentation, Targeting, Differentiation, and Positioning) framework analysis for Haigh's Chocolate, an Australian chocolate maker. It segments the market based on demographics, psychographics, and behavior, focusing on youth and older age groups for new products like dry fruit cookies and chocolate custard pudding. The report identifies youth as the primary target market due to increasing chocolate consumption and alignment with company objectives. It also discusses Haigh's Chocolate's differentiation strategies, including product innovation, service improvements, and effective channel marketing. The value proposition emphasizes premium pricing aligned with high-quality products and superior customer benefits. The positioning statement aims to establish the new products as essential treats for different times of the day. The report concludes with a positioning map, placing Haigh's Chocolate in the high cost and high-quality quadrant compared to competitors like Nestle and Cadbury. Desklib provides access to similar reports and solved assignments for students.

MMK101 Assignment 1
Segmentation, Targeting, Differentiation, and Positioning
12/1/2018
Haigh’s chocolate

STDP 1
Contents
Background..................................................................................................................................................2
Segmentation...............................................................................................................................................3
Targeting......................................................................................................................................................6
Differentiation............................................................................................................................................10
Positioning.................................................................................................................................................11
Value proposition...................................................................................................................................11
Positioning map.....................................................................................................................................13
References..................................................................................................................................................14

STDP 2
Background
The purpose of the task is to conduct the STDP framework being a marketing consultant for the
company that is performing the operations in the Australian market. The company that has been
allocated is Haigh’s Chocolate who deals in the chocolate industry in Australia. Australia chocolate
market has estimated the growth at approx. CAGR of more than 7% in the year 2018-2023. The
company is the oldest family-owned chocolate maker in Australia. Haigh’s chocolate is founded by
1915 by Alfred E. Haigh and maintains the retail outlets in the four different states (Haigh’s chocolate,
2018). The vision of the company is to deliver a world-class chocolate experience to their customers.
The products of the company include handmade chocolates of a different type from candy to bar. The
two new products that the company should offer include Dry fruit cookies and chocolate custard
pudding. In addition, the marketing consultant performs STDP for these products. The major
competitors of the company are Nestle and Cadbury.

STDP 3
Segmentation
Market segmentation is the process by dividing the market of potential customers into groups, segments
(Baker, 2014). The below given is the marketing segmentation for the new products in which the two
new market segments have been selected for the company.
Segmentation
bases and
variables
Segment 1:
Label:
_________________________________
__Youth _____
Segment 2:
Label:
____________________________
____Old age ___
Demographic:
Variable 1:
Age
Youth has been segmented because
mostly people with the age of 18-25
years like to consume products like
cookies and puddings which are the two
new products of company in new market.
Old age has been considered as the
crucial new segments for the new
products of Haigh’s chocolates.
The adults with the age of 50-75
years and above have been
segmented.
Variable 2: In youth, the company consider both In Old age people, the company

STDP 4
Gender genders that includes male and female as
the new product (Dry fruit cookies and
chocolate custard pudding) is preferred
by them.
segment both the male and female
because it is essential to consume
healthy cookies and pudding by
both the people.
Variable 3:
Income
The income is another variable that is
considered by the company because they
offer premium products due to which
they target the people with the high-
income group youth (Baker, 2014).
In Old age people, the company
targets people with the generally
high and medium income group in
the new market.
Geographic:
Variable 1:
Region
The youth has been targeted in every
region of Australia.
The old age people have been
targeted in every region of
Australia.
Variable 2:
Climate
The climate affects the preference of the
customers as in summers more of the
The climate affects the preference
of the customers as in summers

STDP 5
people like to prefer the new products. more of the people like to prefer
the new products.
Psychographic:
Variable 1:
Lifestyle
Chocolate cookies and pudding has
become part of the lifestyle of youth
because they consume it on regular basis.
Old age people lifestyle include
the use of products that can help
them to gain different vitamins and
can be meet by the new products
of the company in the new market.
Variable 2:
Attitude
towards
product
The youth always shows their positive
attitude towards the chocolate and their
related products.
Some of the old age people like to
consume the cookies on regular
basis due to which this segment
has been selected.
Behavioural:
Variable 1:
Benefits
The youth gets the benefit as it adds to
their flavours and offers them high
nutrition which is required.
The old people get the benefit as
new products cookies offers high
nutrition which is required for

STDP 6
their body when they turn 50.
Variable 2:
Occasions
Most of the youth like to prefer pudding
and cooking filled with chocolate as they
give gifts to their loved ones (Haigh’s,
2018).
Most of the old people like to
prefer pudding and cooking filled
with chocolate on an occasional
basis they deal with a disease like
diabetes and other due to which
they won't be able to consume it
on daily basis.
Targeting
The Segment that your company should target is:
The company should target the youth as they can help them to meet their goals related to profit.
Criteria Description Why do you think your References

STDP 7
company should target
the above market?
Justify using the
evaluation criteria.
Segment
Size & Growth
The youth segmentation
consumption is increasing in
Australia. According to Roy
Morgan, in the year 2016 more
than 68.4% of the population
over just 13.5 million people
aged over 14 years (Yo, 2017).
Considering the growth
in the segment of youth,
this has been found that
the rise in consumption
of chocolate will help the
company to enhance the
profit.
(Chernev,
2018)
Segment
Structural
Attractiveness
The new product almond cookies
and custard pudding attract the
youth segment the most.
The attraction towards
the new product in the
new market helps the
company to gain market
share.

STDP 8
Company
Objectives &
Resources
Youth segment helps the
company to meet the needs of
customers and to utilize their
resources effectively.
The company can easily
gain market share and
profit by offering
effective products.
Questions to ask when
developing customer
profile:
Target market details:
Who is the target
market?
Youth is the target market for the Haigh chocolate in the new
product.
What benefits does the
target market seek?
The benefits that target segment seeks to include taste, quality of
new products, nutrition in proper amount and worth of money in
the new market.
Where does the target
market buy the product?
The target market that is youth can make the purchase of the
products from retail stores and through online website of the
company.
When does the target
market buy the product?
The target market buys the product mainly on a special occasion
for giving a gift and at a festive time.
How do we reach the Online marketing channel including social media helps the

STDP 9
target market (preferred
marketing channel)?
company to reach maximum youth who can buy products in the
new market.
Please show a complete customer profile below:
Name-
A youth who loves
chocolate
Behaviours
Prefer chocolates on a
frequent basis
Expect the benefit of taste
and worth of money.
Demographics
Lives in Australia
Youth (20-30 years)
Studying
Needs/Goals
Need good customer experience
Personalised services
Availability of products on time

STDP 10
Differentiation
Your company’s major competitors and competitive advantages are:
Competitors Names Competitors' Competitive Advantage
Competitor 1: Cadbury The chocolate box has the competitive of
the delicious chocolate goodies that are
preferred by users in place of gift or
occasions.
Competitor 2: Nestle The competitive advantage of Nestle is
their brand value of the company which
makes them stand out from the
competitors. In addition, the global
presence of the company also makes them
preferable for customers.
Bases of
differentiation
Can your
company use Why and how?

STDP 11
this?
Product Yes The company can make use of the product as their bases
of differentiation by adding new flavours in their new
products. In addition, in the place of almond, they can
make use of other nuts in the product.
Service Yes The service for the products through doorstep to the
customers and on different departmental stores can help
the company to gain market share.
Channels Yes The channels for marketing can be used by the company
for the marketing of the new products in the new market
(Frynas and Mellahi, 2015).
People Yes The skilled and qualified workers who can make
effective handmade different types of chocolates and
people with experience can help the company in
managing their operations effectively.
Image Yes The company is already offering the products in the
market due to which they have a good image. Continuing
this, the company can form the image in the new market
for new product.
Positioning
Value proposition

STDP 12
The company generally offer the products on the premium prices and according to that the value that
they offer to their customer is the more prices leads to more benefits to the customers. Further, the
benefits can be in terms of the service, product, product quality and many others (Grant, 2016). This has
been selected by the company because they offer premium products for which they need to offer quality
new products in the new market.
Positioning statement:
The position statement reflects two positions of new products of the company in the new market
“All you need is the chocolate biscuit in morning and pudding in the night"

STDP 13
Positioning map
The position of the company lies in the High cost and high quality of the new products which is
different than the competitors. The products of nestle cookies and chocolates are quite cheaper
than the Haigh chocolate. Though, Cadbury can offer medium prices with medium quality
products.
Low quality High Quality
High Cost
Low cost
Haigh’s
Chocolate
Nestle
Cadbury

STDP 14
References
Baker, M. J. (2014). Marketing strategy and management. London: Palgrave Macmillan.
Chernev, A. (2018). Strategic marketing management. Chicago:Cerebellum Press.
Frynas, J.G. and Mellahi, K. (2015). Global strategic management. USA: Oxford University
Press.
Grant, R.M. (2016). Contemporary strategy analysis: Text and cases edition. New Jersey: John
Wiley & Sons.
Haigh’s chocolate. (2018). About Us. Retrieved from:
https://www.haighschocolates.com.au/about-us
Haigh’s. (2018). Haigh’s today – Our Chocolate Making, Haigh’s Chocolates. Retrieved from:
https://www.haighschocolates.com.au/about-us/haighs-today/
Yo, D. (2017). Australian chocolate consumption on the rise, says Roy Morgan Research.
Retrieved from: https://www.confectionerynews.com/Article/2017/04/19/Australian-
chocolate-consumption-on-the-rise-Roy-Morgan-Research