Marketing Principles and Techniques Report: Yum Chocolate Shop

This marketing report provides a comprehensive analysis of Yum Chocolate Shop, a UK-based chocolate confectionery company. It delves into various aspects of marketing, including diverse marketing activities, market segmentation (demographic, behavioral, geographical, and psychographic), and the marketing mix (product, price, place, and promotion). The report also explores market research methods, such as primary and secondary research, and market analysis tools like SWOT and PESTLE analyses. Furthermore, it examines e-marketing strategies and techniques for managing online image. The report aims to identify market opportunities and threats, offering recommendations for Yum Chocolate Shop to enhance its marketing effectiveness and achieve its business objectives. The report covers key areas like market research aims, specific research methods (questionnaires and interviews for primary research, internet and libraries for secondary research), and the application of SWOT and PESTLE analyses to evaluate the company's internal and external environments. The report's conclusion summarizes the findings and recommendations.

MARKETING
PRINCIPLES AND
TECHNIQUES

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1: What is Marketing............................................................................................................1
1.1. Diverse Marketing Activities...............................................................................................1
1.2. Market Segmentation...........................................................................................................2
1.3. Marketing Mix.....................................................................................................................2
TASK 2: Market Research...............................................................................................................3
2.1. Aims of research and market analysis..................................................................................3
2.2. Market Research Methods....................................................................................................3
2.3. Market Analysis Tools.........................................................................................................5
TASK 3- E-Marketing.....................................................................................................................7
4.1. Methods used for E-marketing products and Service..........................................................7
4.2. How companies can manage their online image..................................................................7
TASK 4............................................................................................................................................8
3.1. Market Analysis Technique to research Target Market.......................................................8
3.2. Interpretation of Findings of Market Research and Market Analysis..................................9
3.3. Recommendation................................................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Marketing refers to an activity which considers all the tasks required for a company to
produce and present its products in front of its customers effectively (Kenny and Dyson, 2016).
The assignment is based on Yum Chocolate Shop, which is a small chocolates confectionery
organisation situated in UK. The company is majorly deals in different products like Chocolates,
toffee, nuts, crackers, chips, gluten-free product “Yum Bar”. This report contents the study about
marketing and its assorted activities along with discussing market mix and target segmentation. It
also covers analysis of effective market research and E-marketing methods. It also includes
application of effective market analysis technique to research target market
TASK 1: What is Marketing
1.1. Diverse Marketing Activities
Marketing is the process of creating, exchanging, delivering and offering goods and
services which are value for buyers, consumers, clients, partners and society. The basic purpose
of marketing is to identify the needs and wants of the public. Marketing department is the key
aspect of an organisation and the potential motive of marketing department is to analysing the
changing needs and demands of the market in respect to making appropriate transformation in
their offerings to satisfy its target audiences (French and Russell-Bennett, 2015). All the aspects
of marketing are recognised and aimed towards reaching and providing goods and services as per
customers needs or preferences. There are few essential activities of marketing, that are
associated as below:
Promotions: One of the most prominent activities which are associated with marketing
are promotions. The main agenda of this activity is to effectively make customers aware about
the brand. Yum Chocolate Shop could effectively use marketing as an effective tool for
promotions. It would help the company to gain a competitive advantage over other companies
and effectively improve its position in the market.
Market Research: Another marketing activity is to effectively research the marketplace.
It requires the firm to conduct an inside out analysis of the business environment to gain a better
understanding of customer's needs, wants and preferences and even expectations from the
company.
1

1.2. Market Segmentation
Apart from this, to effectively apply its marketing strategy to the most appropriate
customers, it is imperative that the firm undergoes market segmentation (Graber and et. al.,
2016). It is a step of dividing the market into various groups based on different characteristics
that are described below: Demographic: This type of segmentation divides the marketplace on the basis of certain
demographical factors. Examples of this segment could be division on the base of gender,
income, age, nationality, etc. With varied range of products, Yum Chocolate Shop could
effectively approach wider group of customers using this segmentation. Behavioural: It divides the customers on the basis of their behavioural characteristics, for
instance, attitudes, nature, decision-making pattern, etc. which is necessary for Yum
Chocolate Shop to determine Geographical: As the name suggest, this divides the buyers on the basis of their
geographical location which could provide the strategy to the company to place its
product.
 Psychographic: This emphasises on dividing consumers with their opinions and lifestyle.
Yum Chocolate Shop could use this segmentation factor to opt for customers who tend to
live a healthy lifestyle and have strong opinion in favour of companies that could satisfy
this interest of these customers.
1.3. Marketing Mix
This refers to an effective blend of all the marketing elements which are essential for a
company to develop effective marketing strategies for their products (Lee and Kotler, 2015).
These elements are described below: Product: This refers to the offering which is provided by the company to its customers.
As for Yum Chocolate Shop, the firm provides effective chocolate products, such as
chocolate bars, crackers. Currently, the firm has an effective offering by the name of
Yum Bar, which is a gluten-free chocolate. Price: One of the most important element of marketing mix, price is the amount charged
by a company for its offerings to the customers. The price depends heavily on the quality
of their product. In the case for Yum bar, the company provides effective quality product
2

which is tasty as well as healthy for its customers. Thus, the company is adopting
premium pricing strategy. Place: It consists of the distribution channels through which a firm positions its products
to be delivered to the customers (Jim Burtles and CMLJ, 2015). For Yum Bar, the
company would adopt offline channels, i.e., its physical stores at prime locations of
London. In addition, the company would also adopt various online channels such
company's website to make its product available to the customers.
 Promotion: This element consists with the promotion of the offerings. For Yum Bar, the
company is opting various online portals like Facebook, Twitter and YouTube to promote
its product to a wide range of customers.
TASK 2: Market Research
2.1. Aims of research and market analysis
Market research is a method which is undertaken by the companies to gather an inside
view of the market and customer trends which allow them to produce effective products which
are in accordance with customer preferences. It is effective for a firm to analyse the marketplace
which is essential for the company and its products like Yum Bar. It is very important that the
company effectively adopt various research methods and market analysis tool to get a 360º view
of the market. Market Research Aim: The main agenda of market research is to identify potential
customers, changes happening in their preferences and new offerings they want Yum
Chocolate Shop to produce.
 Market Analysis Aim: To find out new and effective market prospectus for Yum
Chocolate Shop and aspects of growth and enhancements in current target market.
2.2. Market Research Methods
There are various market research methods that could be adopted by Yum Chocolate
Shop to gather information from its existing as well as potential customers. These methods are
described below:
Primary Research: This type of research is effectively carried out by the researcher for
the first time and for a specific purpose (French and Gordon, 2015). The agenda of this research
is to gather first-hand information to satisfy a certain prospective in relation with any issue in
3

relation with the company. Yum Chocolate Shop could effectively use this method in case the
firm wants to gather specific information about its products, processes and customer
expectations. The firm could opt various methods of primary research which are described
below: Questionnaires: These are documents which are given to certain respondents pre-decided
by the company and are concentrated towards receiving objective responses that could
allow the company to gain responses on a various selected topics from wide number of
customers in a single manner (Morden, 2016). The company could use this method to
gain feedbacks regarding its product quality and could also acquire customer preferences
regarding any new product or process introduced by the company.
 Interviews: These are face-to-face conversations which selected personnels from the
company undergoes with various individuals. These could aid the firm in gaining
Immediate and accurate responses and chances of fake response is limited. Yum
Chocolate Shop could adopt this method to gain a keen insight of the perception of
customers towards the company. It could also be used to acquire new and skilled
employees.
Secondary Research: This kind of research could be conducted by the company on
topics and issues that are already been explored by other researchers. The personnels adopting
this method explore secondary resources and use pre-used information for to satisfy their
research agenda. There are various techniques used under this research (Jacobson, McDuff and
Monroe, 2015). These are mentioned below: Internet: The hub of information in recent times, internet could be used effectively to
conduct secondary research. There are various websites that could provide effective
information for the company on any research topic. Yum Chocolate Shop could use this
technique for gather data about market trends and ways which could retain and attract
customers.
 Libraries: These entities have a wide variety of books on various subjects written by
prominent authors. These also provides journals written by managers and recognised
entrepreneurs. The firm could use this source to gather information about relevant
business processes that could drive the firm towards success.
4

2.3. Market Analysis Tools
There are various tools of market analysis that could be opted by Yum Chocolate shop to
effectively identify their internal strengths and weaknesses and external opportunities and threats
(Amine, 2015). These methods are discussed below:
SWOT Analysis:
This framework is adopted by companies to identify their competitive strengths in an
effective manner by identification of their strengths, weaknesses, opportunities and threats. For
Yum Bar, Yum Chocolate Shop could perform SWOT Analysis which is described below:
BASIS DESCRIPTION
Strengths
 The biggest strength of the company is that it produces quality
products for its customers all over the country which enhances its
demand.
 The price provided to the customers are quite affordable which
increases the intensity in which buyers prefer this company over
others.
Weaknesses
 One of the biggest weaknesses of the firm is the lack of its distribution
channels. Even through its demand is increasing, the firm is yet to
explore more ways for promoting and placing its products.
 The production facility lacks necessary technology which increases the
time, effort and price required for production.
Opportunities
 Customers within the UK are becoming more health conscious which
is a great opportunity for Yum Bar to place itself effectively in the
market.
 Technological Advancements too could be analysed as an opportunity
for Yum Chocolate Shop to employ effective technique and
equipments to produce Yum Bar effectively.
Threats  There are already many companies in this sector like Cadbury, Nestle,
etc. which already have impressive market share (Lagarde, 2015).
 Another threat for the firm is the changing preferences of customers
5

which is quite unpredictable in the long-run.
PESTLE Analysis:
These are external environment pointers that effectively influence the operations of
organisations and are required to be thoroughly analysed to develop effective strategies that help
the firm accomplish its business objectives (Ferreira, Coventry and Lenzini, 2015). PESTLE
analysis for Yum Bar is mentioned below: Political: This factor is related with Political stability of the country which influences a
company's operations. For Yum Chocolate Shop, after Brexit, the country is subjected to
various changes in its regulations and still might experience some in the future that could
be a threat for the company and its Yum Bar. Economical: It reflects how the overall economic factors supports organisation and their
offerings. Currently, with reduction in the value of Pound, the sales of Yum Chocolate
Shop has been affected. However, with closure of various MNC's, the firm could hire
skilled talent at lower wages which could enhance its production effectiveness. Social: All the social trends and customer preferences which could influence an
organisation and its products are covered in this factor. Recently, the trend among
millennials is shifting their interests towards adopting a healthy life-cycle. In addition, in
this customer oriented market, people want the most appropriate value of their money.
All such factors could be a major opportunity for the company and its Yum Bar. Technological: With such progressive technology, the firm could opt for various
methods such as Automation and Artificial Intelligence to produce as well as deliver its
Yum Bar to the customers. Legal: The company has to comply with various legal standards set for production,
distribution and employment (Kubacki and et. al., 2015). For instance, Yum Chocolate
Shop must comply with Minimum Wages Act as well as Equality Act to successfully
gain support of the legal system and government.
 Environmental: With ongoing environmental concerns around the world, the company
must ensure to employ effective waste management technique and use of equipments
which ensure minimisation of pollution in production of Yum Bar.
6

TASK 3- E-Marketing
4.1. Methods used for E-marketing products and Service
E-Marketing is a modern-day phenomena which companies undertake to effectively
market their brand as well as their offerings using latest and modern-day communication
methods, internet, for instance. There are various methods that could be opted by Yum Chocolate
Shop to market Yum Bar which are discussed below: Blogging: In this internet inspired era, there are various organisation who write blogs on
internet websites giving information about multiple topics to readers. Yum Chocolate
Shop could use this as a strategy to write blogs about the ongoing health concern in the
country and how its product, Yum Bar could help people overcome with this aspect.
 Social Media: Most of the people in today's time have various social media accounts on
which they effectively share information using videos, images and written materials.
Yum Chocolate Shop could use portals like Facebook, YouTube and Twitter to market
Yum Bar to large number of customers in one go.
4.2. How companies can manage their online image
It is very crucial for an organisation to establish effective management of its online image
as it tend to influence customers to a great extent. Firms could achieve so by updating
information about themselves regularly and come up with new ways of presenting their products
and services to the community by using animations, compelling videos, real-time production,
VR, etc.
If this management is poor, for instance, Nike, which has recently launched a very
controversial advertisements resulting in withdrawal of many customers from the firm and its
products. Such is the impact of social media if the management of online image is poor. On the
other hand, companies like Adidas and Reebok have always presented compelling videos that
were effective touchpoints for customers to get attracted to buy companies' offerings. Thus, it is
imperative that companies effectively manage their image by identifying the needs of customers,
present their product to gain maximum attention as well as which build an emotional connection
with the customers.
7

TASK 4
3.1. Market Analysis Technique to research Target Market
There are various techniques by which Yum Chocolate House could find effective Target
Market for Yum Bar. One such technique is Segmentation, Targeting and Positioning (STP)
which is discussed below:
Segmentation:
As discussed above, the market segmentation for Yum Bar would depend on various
aspects. The firm would be opting Confectionery Segment to effectively identify customer
groups. Aspects for segmentation are mentioned below: Demographic: For Yum Bar, the firm could opt for general population, preferably
millennials, aged 15-50, with income more than £5000. Behavioural: Yum Chocolate Shop could divide customers habitual of eating chocolates
having positive attitudes towards fitness. Geographical: To maximise its effectiveness of marketing Yum Bar, the firm could opt
for customers living in the urban areas of the UK.
 Psychographic: For Yum Bar, the company divide buyers who tend to live a healthy
lifestyle and have strong opinion in favour firms producing healthy products
Targetting:
After segmentation, the firm comes to target specific customers from segments that form
their target market (Tapp and Rundle-Thiele, 2016). For Yum Bar, the organisation would target
customers who live in the urban areas of the UK, aged 15-50, habitual of eating chocolates and
tend to live a healthy lifestyle.
Positioning:
This step is concerned with how the company would position Yum Bar so that it
effectively reaches the target market and spread accurate message. To achieve this, the firm
would position this product as something which could effectively be consumed anytime and even
its regular use would not harm its consumers. In addition, the firm is willing to adopt honest
pricing strategy which would enhance the effectiveness of Yum Bar as healthier products are
generally costly (French, 2017).
8

3.2. Interpretation of Findings of Market Research and Market Analysis
Secondary Research:
This research was carried out using various methods like internet and libraries. The
research was carried out about the health conditions in the UK. As per Higgins Erica Doyle
(2019), almost half of the UK could be obese by 2030 seeing its current patterns and eating
habits. Study also reveals that the obesity rate was almost 30% in the country in 2018.
By the views of Robinson Nicholas (2015), confectionery sales within the country would
increase by almost 9% percent by 2019. This is an opportunity for Yum Chocolate Shop to offer
healthy products like Yum bar to the customers.
Primary Research:
This research would carried out by the company on various objectives by number of
respondents which are mentioned below:
 Research Aim:
To market Yum Bar within the UK to capture wider market share by the application of
modern marketing tools
 Research Objectives:
▪ To identify the awareness of Yum Bar within the UK market
▪ To determine the most appropriate modern marketing tool for the firm to enhance
awareness of its product.
▪ To determine the impact of modern marketing tools on developing market share
of Yum Chocolate Shop.
 Target Sample:
To effectively conduct the research without much expense, non-target sampling has been
used to effectively
 Target Respondents:
To effectively satisfy the research purpose, 20 respondents have been approached who
have a keen interest in trying new confectioneries.
QUESTIONNAIRE
Name:
Age:
Contact no.:
9

Email id:
Q1) Are you aware about the company Yum Chocolate Shop?
 Yes
 No
Q2) Are you aware about its product called “Yum Bar” ?
 Yes
 No
Q3) What, according to you, is the most appropriate modern marketing tool to promote Yum
Bar?
 Social Media
 E-mail Marketing
 Blogging
Q4) What extent does modern marketing tools applied to market Yum Bar would help the
company to enhance its market share?
 High
 Medium
 Low
Analysis of the questionnaire
Q1) Are you aware about the company Yum
Chocolate Shop?
Frequency
 Yes 13
 No 7
10