MKT600 The Business Environments
1. Create a marketing strategy – The aspects of marketing strategy that you should include are:
a. Your recommended target market (including market segmentation).
b. How the new business should be positioned – give an overview of positioning theory (and other relevant theories) and then explain one or more positioning approaches that you think this business should follow. Draw a positioning map.
Answer:
The global market for chocolate has grown tremendously over the last couple of decades which has led to the emergence of many firms that want to tap into the huge market. However, among the major beneficiaries and the main market dominants in the market is Cadbury, a leader in the global confectionery market. It is no secret that when the word chocolate comes to mind the world Cadbury will definitely pop up as it’s a household name. Despite the popularity and success, the firm has had in the launching of its several products all over the world, it still faces the volatility of the business environment. The business environments and markets today are more complex and filled with consequences for firms that do not play their cards right (Armstrong, Adam, Denize and Kotler, 2014).
Cadbury has experienced success in Australia which among the developing and growing emerging markets today. Emerging markets have economies where regulations and conditions must be stable for the operations of capital and market will differ from familiar conditions of the developed countries. Emerging countries like Australia will be offering a plethora of opportunities. These markets will characterize the opportunities and risks and sound analysis will be indispensable providing the frontier where scholars can add value. However, Cadbury has still managed to be the largest dominating firms enjoying the lions share, however, there are always roadblocks ahead when it comes to introducing a new product and ensuring that it achieves much success as its predecessors.
Dairy Milk Crispell Chocolate bar is a new product that Cadbury wants to introduce to the Australian market. However, the firm is skeptical despite the product good performance in the Indian market. Australia has a very large and growing market that is health conscious which lead to the success of the Cadbury dark milk chocolate bar which has less sugar than the Dairy Milk Crispell Chocolate bar which is sweet which could be unhealthy if consumers in large quantities. However, there is always a market for every product, therefore this paper will create a marketing plan for the core purpose of the Cadbury’s Dairy Milk Crispell Chocolate bar entry and success in the Australian market.
2.0 The product: Dairy Milk Crispell Chocolate bar
The Dairy Milk Crispell is a crispy center and finger format chocolate bar covered with a thin layer of delicious Cadbury Dairy Milk. Moreover, the chocolate bar is covered in a Cadbury Dairy Milk Chocolate smooth layer characterized by a crunchy and light crispy ball. One single unit or piece (100gm) of the Dairy Milk Crispell Chocolate bar comes in four fingers. The products contain a sugar content of 48.9 gm per serving size of 100 gm, 9.5 calories, vegetable fat and a low cocoa content that gives the unique Cadbury feature of ‘sweet melting in your mouth’ this experience that Cadbury offers makes its chocolate products among the most the favorite brands in Australia
3.0 Market segmentation
In today’s volatile and complex business environment, market segmentation is a common approach to modern marketing. It allows firms to maximize the use of scarce resources to dominate and understand the market and adapt to the potential barriers effectively (Bowen, and Sleuwaegen, 2017). This is achieved by dividing the target market into approachable groups or subsets that will achieve better manage and control over the market in the long run. therefore, this will be illustrated in the paper through the Australian market perspective by analyzing the approachable groups below.
3.1 Geographic
In geographic segmentations it all comes under urban vs rural, in most cases, these tow subsets of the segmentations have different views concerning a product, or in simpler terms, their taste and preferences are preferably different or slightly close. However, Australia is among the countries known to have the highest percentage of urbanizations close to a 90-percentage coverage.
Moreover, around 70 % of the population that resides in the rural Areas is believed to be a health-conscious consumer market, they prefer organic products and are less prone to the most common health-related diseases such as diabetes and cancer. Therefore, there’s a 50% chance that that many would consume the Dairy Milk Crispell Chocolate bar due to its high sugar content, however, the urban areas have a large market that the product can perform well. The significant popularity of the brand would assist the Dairy Milk Crispell Chocolate bar to penetrate the new market with ease. Therefore, it will be essential for Cadbury to focus on the urban market since it large and the development the infrastructure complements the distribution channel that will be used in ensuring consumers get access to the Dairy Milk Crispell Chocolate bar regardless of their location in the urban centers.
3.2 Behavioral segmentation
The behavioral market segmentation is a marketing strategy focused on the buying behavior of consumers in a particular market. The consumers are divided into their actual buying patterns which are then studied and analyzed for a better understanding which will be essential in predicting their response to the introduction of a new product (Oliver,2014).
Australian chocolate consumption is higher at a 64 % rate where most are based in the urban areas. According to research done by Roy Morgan’s data reveals that an average of 68.4% of the Australian population who are aged 14 years and above. contributing to the high consumption of chocolate is the growing trend of gifting friends and families with chocolate boxes. However, Australians going to gifts shops to buy chocolate ate chocolate or bought a unit of chocolate boxes for themselves (Thaichon, et al 2018). Therefore, the first sub-segment in behavioral segmentation is the usage rate.
The usage rate of chocolate has increased in the country increasing the demand in the market. Consumers are buying chocolate are retail prices for home-based consumptions or mere chocolate experience which is considered to be a fast-moving market pattern. Cadbury can tap into this fast-moving market by introducing the new product to such consumers who would enjoy buying several unit prices packed in four finger bars or boxes for later consumptions. The next behavior pattern that Cadbury can focus on is occasions and festive seasons. According to Roy Morgan (2017), the gesture of gifting is dominant during occasions or the festive seasons. Gifting chocolate as a gift is not only effective but illustrates the symbolic passion and love one has to another individual.
Although boxed chocolates are for the most part advertised as a gift to somebody would purchase for another person, almost 75% (73.4%) of Australians who get them in a normal a month eat them as well. This recommends giving boxed chocolates is simply part of the condition, with the ensuing demonstration of sharing them nearly as critical, a scrumptious case of the more extensive retail pattern of 'encounters over things’ .
The goal of this market segment is to distinguish explicit segments niches and address needs or wants that are accepted to be normal (Haskelberg, et a,l 2016). This empowers Cadbury advertisers to target explicit gatherings by creating publicizing programs for the new product Although the in the Indian market the firm did not target this market segment of the consumer pattern, it different in Australia and the firm has no choice but to adapt to the business market environment. Therefore, Cadbury has to adapt and tailor its Dairy Milk Crispell Chocolate
bar to the needs and preferences of this market segment by designing boxes that would penetrate this market with ease (Hariharan, Talukdar and Kwon, 2015).
Consumers can also be grouped by their loyalty to the Cadbury brand since consumers are usually faithful to particular brands in different dimensions especially now that there are several firms that have emerged to tap into the growing Australian demand in chocolate products. A few people will dependably purchase a specific brand, others will purchase this mark periodically and 'switchers' will switch between brands.
Cadbury will have to endeavor to segment its business sectors into those, where faithful clients can be found and retained as it is also significantly more important than obtaining new consumers in the long run and increase the market share The best case of social division by dependability can be found in the chocolate market industry where from firms try to compete to retain and acquire new consumers. However, Cadbury has an added advantage as it has dominated the global industry with its confectionary products
3.3 psychographic segmentation
Psychographic segmentation is a crucial approach in the modern market where the business environment revolves around the consumer's change in taste and preferences, therefore, consumer markets can be psychographic in nature as different consumers vary in perception towards a product. They are divided into sub-groups that differentiate their attitude, character, motivation, and priorities which influence their consumer behavior in the long run. It has actually proven to be more reliable than demographics segmentation in predicting the consumer patterns many Australians perceive a chocolate bar it more just an edible it's among the simplest yet effective symbolism of life and passion one can show to friends and a family (Andrews, and Shimp, 2017).
This contributes to the change in consumer attitude toward firms that provide quality products such as Cadbury declining the market for low-grade mass production chocolate brands. Therefore, the quality in the mixture and richness in the Dairy Milk Crispell Chocolate bar will be received well in the market. Additionally, most Austrians prefer purchasing their products in supermarkets and grocery stores, the firm can select suitable and popular supermarkets and grocery stores in the country to shelf the Dairy Milk Crispell Chocolate bar so that consumers can purchase the product while in the supermarket.
This will be essential in successful penetration and sustainability in the market. branding and adverts of products and services are known to have a huge impact on consumer patterns and behaviors. Cadbury has been in the country for a while and it has managed to be among the favorite chocolate brand. quality and informed branding and adverts of the Dairy Milk Crispell Chocolate bar through the use of conventional methods such as TVs, radios and Billboards as well as the use of social media, will lead to loyal consumers to the product and acquiring new consumers in the process playing a role in the growth and development of the brand in the market (Weinstein and Cahill, 2014).
3.4 demographic segmentation
This type of segmentation is focused on consumer groups based on their age, gender and income. The segmentation is mostly used in developing and implementing marketing strategies focused on the population in a specific market by pairing their products with the suitable target audience (Venter, Wright & Dibb,2015). Cadbury has different products that focus and cover the different age subset of the demographic segmentation. The Dairy Milk Crispell Chocolate bar product will focus on an age bracket between 14-50 years old. Unlike other chocolate bar products. the Dairy Milk Crispell Chocolate bar has a higher sugar content and may not be suitable for children if they consume many bars however under a parent supervision is okay (Boelsen-Robinson, Backholer, and Peeters, 2015).
This is to prevent any cases from arising that a minor has medical emergencies due to consuming the Cadbury chocolate bar that would affect the growth and sustainability of the products damaging the whole brand in the process. However, Australia of the ages 14 and above are increasing the chocolate consumption, in 2013 and average of 40% which translates to about 7.7 million people consume chocolate on average of a single block in every four weeks. This increased to 8 million in 2010 and in 2017 to 11.3 million. Therefore, the age subset of 14 years and above present a promising opportunity of the Dairy Milk Crispell Chocolate bar to prosper.
Gender is another crucial subset under the demographic segmentation, according to Roy (2017) it was found out that more women tend to buy more chocolate than men, moreover more women as the research illustrates, buy the chocolate products for their families to consume at home, as they often go to the supermarket and grocery store to buy food products. Therefore, it is essential for the product to appeal the female gender especially in it packaging which should be conspicuous and appealing to the eye in order to be spotted easily in the grocery and supermarkets, unlike India where they are mainly bought in Cadbury convenient stores.
The final segmentation is the income which depicts the buying power of the consumers in a specific market. Cadbury has performed well in this segment by covering all the income brackets with products to choose from i.e. high price products and mid-priced products. However, the Dairy Milk Crispell Chocolate bar targets the from the lower middle class to the high-end class which makes it easily affordable to most of the Aussie population regardless of the high-quality pricing which plays a major role in the growth and sustainability of the Dairy Milk Crispell Chocolate bar in the Australian market (Appleyard and Dibb, 2018).
4.0 Marketing mix variables
the Dairy Milk Crispell Chocolate bar should be packaged and presented in a similar manner in India which played a major role in its success during this year roll out. Moreover, the four finger blocks design is essential as it promotes sharing among friends and family. Quality of the products should be maintained however a reduction on the sugar content by at least 5% could be essential as the consumer market in Austria is health conscious and Godiva which is a major high-end chocolate in the country is taking steps in providing quality products with reduced sugar levels. The Dairy Milk Crispell Chocolate bar could be packaged in quality beautiful boxes to tap into the consumer market that is focused in gifting on several occasions. Moreover, to luxury high end packing could be implemented for the high-end market as well
4.2 Distribution
according to Roy (2017), it was found out that more women tend to buy more chocolate than men, moreover more women as the research illustrates, buy the chocolate products for their families to consume at home, as they often go to the supermarket and grocery store to buy food products. Therefore, the distribution strategy to focus on is helping the Dairy Milk Crispell Chocolate bar in the major supermarket such as Walmart and Coles. Moreover, setting up Cadbury convenient stores in locations in strategic locations such as next to colleges and universities will be essential in targeting the youth. moreover, being in the age of technological advancement and the boom of the internet, using major online retailers such as Amazon will be essential in covering the online consumer demographic
4.3 Pricing
The pricing of the products should target the lower and the middle-class citizens as they occupy close to half of the population. The affordability of the product will lead to increased consumption and revenue generation for the firm. However, to cater to the high-end market, the firm should consider the significance of designing and implementing luxurious chocolate boxes for the Dairy Milk Crispell Chocolate bar
4.4 Promotion
Promotional strategies are essential in creating awareness of the new product to both Cadbury loyal consumer and the prospective consumer who may switch from other competitor firms. The firm will use the usual conventional methods of brand awareness such as TVs, radio, and billboards. Additionally, the advancement in technology has introduced and developed new ways of promoting a brand to a larger audience, social media marketing. The firm will design and implement social media add that will be conveyed on free android applications as well as websites (Strauss and Frost, 2016).
4.5 people
This entails loyal consumers and the staff members of Cadbury. The loyal consumers or another consumer who like the Dairy Milk Crispell Chocolate bar will spread the word about the product indirectly and directly. 50% of advocates recommend a brand because they had a good experience with a product or service. building and maintenance an engaging relationship with the consumer will be significant in promoting the brand. The Cadbury staff members will also play a role in making consumers happy as well as the creating awareness of the new product. a productive culture in Cadbury will be significant in ensuring the success of the product in the market.(Dolnicar et al,2018)
4.6 partners
Patenting with other parties in ensuring the achievement of the products success id not only essential in the quick growth and development in the market but ensure effective sustainability. partnership with supermarket and grocery stores such as Coles where the get a piece of the pie after every sale will lead to a strong and motivated partnership. partnering with online retailers such as Amazon and eBay will be effective in ensuring quality distribution is essential to the sustainability of the products in the Australian chocolate market (MacLaren, Farrington and O'Gorman, 2017).
5.1 Competitive rivalry
There are many organizations that are working against the Schweppes Cadbury. There are few contenders that are persistently creating the building up of items and advancing thoughts for making the contending harder. Such firms include KitKat and snickers are competing for dominance in the Australian market. presumably they will respond after the introduction of Dairy Milk Crispell Chocolate bar to stay in the game/
5.2 Threat of new entrants
The advancement of technology and the presence of a fast-growing consumer market as some of the conditions that led to the emergence of new firms in a market. The Aussie chocolate consumer market have these characteristics and presents the probability of Cadbury shrinking it market dominance in the country to these firms.
5.3 Threat of substitutes
The consumer taste and preferences changes with time and the primary danger of Cadbury substitutes with other confectionery brands such as KitKat, Mars and Snickers, However Cadbury should be keen in studying the competitor advantages in order to minimize and prevent their consumers from switching to competitor brands
5.4 Bargaining power of buyers
In order to control the bargaining power of buying Cadbury has been focusing on price differentiation of its products by targeting different consumers in the social class pyramid where consumer can buy products depending on their pockets. However, the Dairy Milk Crispell Chocolate bar targets the middle class, however for the high-end market it will provide costumed and luxurious packaging of the products.
5.5 Bargaining power of suppliers
Cadbury has primary control over the supplier power by choosing suitable suppliers in the country or outside the country as the firm is already a global household name. This prevents the suppliers in affecting the consumers prices of the firm products hence able to target the lower and the upper middle classes effectively
6.0 Conclusion
The marketing plan above has illustrated how Cadbury should introduce the Dairy Milk Crispell Chocolate bar into a growing chocolate consumer market in Australia. However, the product has an added advantage since the firm is already a household name in the global industry which has played a role in domination of the Aussie market despite having fierce competitors such as Godiva and nestles (Anand and Rajan,2018).
Despite the popularity and success, the firm has had in the launching of its several products in the country, it still faces the volatility of the business environment especially since Australia is an emerging market. Therefore, the paper has discussed the marketing segmentation in depth by depicting the target audience and how to approach them. Moreover, the marketing mix variables have also been discussed which entail the core purpose of ensuring the products entry into the Australian market is smooth and leading to the growth and its development in the long run.
7.0 References
Anand, N. V., & Rajan, P. T. (2018). COMPARATIVE STUDY ON CONSUMER PREFERENCE TOWARDS NESTLÉ AND CADBURY CHOCOLATES IN CHENNAI CITY. GLOBAL JOURNAL FOR RESEARCH ANALYSIS, 7(9).
Andrews, J. C., & Shimp, T. A. (2017). Advertising, promotion, and other aspects of integrated marketing communications. 31(62-83) Nelson Education.
Appleyard, L., & Dibb, S. (2018). Responsible personal finance: Three fundamental questions. Social Business, 8(1), 57-63.
Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing. 3(2),23-27 Pearson Australia.
Boelsen-Robinson, T., Backholer, K., & Peeters, A. (2015). Digital marketing of unhealthy foods to Australian children and adolescents. Health promotion international, 31(3), 523-533.
Bowen, H., & Sleuwaegen, L. (2017). Are International and Product Diversification Substitutes or Complements? Theoretical and Empirical Perspectives. Global Strategy Journal, 7(3), 241-256.
Cadbury India (2018). Mondelez India Launches Cadbury Dairy Milk Crispello. Retrieved from https://www.adgully.com/mondelez-India-launches-cadbury-dairy-milk-crispello-80931.html
Dolnicar, S., Grün, B., & Leisch, F. (2018). Step 9: Customising the Marketing Mix. In Market Segmentation Analysis (pp. 245-254). Springer, Australia.
Gu, J. (2016). Causes Analysis and Countermeasures of Overlapping Food Products Processing Regulation-based on Overlapping Products Rights of Food Products Processing in China. Advance Journal Of Food Science And Technology, 10(3), 218-221.
Hariharan, V. G., Talukdar, D., & Kwon, C. (2015). Optimal targeting of advertisement for new products with multiple consumer segments. International Journal of Research in Marketing, 32(3), 263-271.
Haskelberg, H., Neal, B., Dunford, E., Flood, V., Rangan, A., Thomas, B., ... & Gill, T. (2016). High variation in manufacturer-declared serving size of packaged discretionary foods in Australia. British Journal of Nutrition, 115(10), 1810-1818.
MacLaren, A., Farrington, T., & O'Gorman, K. (Eds.). (2017). Marketing Perspectives 3(5),53-71. Goodfellow Publishers Ltd.
Oliver, R. L. (2014). Satisfaction: A Behavioral Perspective on the Consumer: A Behavioral Perspective on the Consumer. 3(7), 13-15. Routledge.
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