Category: Chocolate

Developing a plan for a company’s expansion in the international market is not an easy task. However, with appropriate planning and careful approaches, companies may come up with successful methods that will enable them to become prosperous in other countries. To make one’s business aspirations profitable, it is necessary to develop a strategy that will help to implement the desired innovations. First of all, such planning requires the investigation of the target industry in another country. Then, the company needs to choose the most appropriate entry mode and assess its limitations and benefits. Furthermore, the organizational structure should be selected and outlined. Finally, successful international expansion is not possible without a follow-up action plan which will delineate further procedures necessary to acquire a stable place in the international market.

A Brief Description of the Company and Chocolate Industry in Singapore

Saudi Chocolate Company (SCC) is a Saudi company that was established in 1995. The first factory was built in Riyadh – the heart of the Kingdom. We aimed to provide the market with the finest chocolate, cocoa, and cocoa derivatives. Currently, the Saudi Chocolate Company is the largest chocolate producer in the Middle East. With our team of experts in chocolate production, we have managed to reach state-of-the-art chocolate production.

The confectionery industry in Singapore develops at a high rate. Over the past few years, the growth level was 20% annually (Koh). The largest importers of chocolate and sugar are the US, North Asia, the EU, and Australia. Of the entire food consumption in Singapore, confectionery has the largest percentage growth. As lifestyles in the Asia Pacific area become enhanced, people’s taste choices are altering accordingly. Growing urbanization and income levels among the citizens of Singapore are the main agents for market expansion (Acute Market Research).

The reasons for chocolate market growth in Singapore are connected with a wide spectrum of the utilization of chocolate confectionery and flavored food products. Moreover, market growth is expected to be sustainable owing to chocolate’s stress mitigating abilities and its nutritional value (Acute Market Research).

Along with other Asia Pacific regions, Singapore is assumed to be a fast-expanding market owing to high demand. Changing consumer choices lead to increased sales, which require thorough approaches to expansion strategy development. The current leading chocolate manufacturers include Ferrero Group, Mondelez International, Hershey Foods Corporation, Meiji Co Ltd, Arcor, Nestle, and others (Acute Market Research). With the current expansion of chocolate products in Singapore, the Saudi Chocolate Company could take advantage of the situation and enter the confectionery market with further development plans.

Recommended Entry Mode and Rationale in Singapore

There is a diversity of entry modes into the international market, each of them having advantages and disadvantages. Taking into consideration the aspirations of the Saudi Chocolate Company and the target market, exporting seems the most suitable solution at this point.

Exporting is the business entry strategy that allows products to be sold directly to foreign companies by the domestic company. Direct exporting is a better approach than indirect for our company as this mode presupposes that production, sales, and delivery are performed solely by the firm without any intermediaries (“Going Global”). The benefits of direct exporting are numerous, the first one being the high return of the company’s investment due to the absence of a third party. Such an approach facilitates lower prices for the products, which are therefore more competitive. Additionally, a face-to-face relationship with clients becomes possible (“Going Global”). Direct exporting requires no investment in foreign production resources, which minimizes the investment hazards and market entry delay. Employing this strategy enables the company to access data about foreign market competition and prepares it to deal with seasonal market inconstancies (“Going Global”). Finally, exporting mode decreases the company’s dependence on the already-established markets.

While bringing many advantages, the chosen strategy also has some limitations which should be taken into consideration. First of all, it may be more costly because of transport tariffs and marketing expenses. Also, there may be a restricted admission to local data as the company will be considered a stranger. There is also a necessity to cultivate customer infrastructure in a foreign country. Other challenging tasks include the necessity to source clients, the possibility of losing control over the market, and any obstacles to reducing trade barriers. However, with proper management approaches, the disadvantages of the entry mode will be eliminated, and the advantages will bring about the best solutions for the company.

The rationale for the chosen entry strategy includes a thorough consideration of the company’s possibilities, calculating the benefits and predicting possible disadvantages, and coming up with the initial suggestions of target markets.

Recommended Organizational Structure for the Operation and Rationale in Singapore

Choosing an organizational structure is a significant step in shaping out the future project. Coming up with a proper framework will provide good relationships at all levels and enable successful communication. As a result, productive and powerful work processes will be ensured. Preferences for the organizational structure are chosen by the senior leaders of the company. There are several main types of organizational structures, namely product, customer geographic, matrix, and functional (“Types of Business Organizational Structures”).

For our purpose, the functional structure is the most suitable. It focuses on assigning all employees various functions. By successfully coping with these functions at all levels, the employees provide the most advantageous outcomes for the enterprise.

To reach the international market, the Saudi Chocolate Company needs to have several departments in its organizational structure. There should be such sections as human resources, sales, accounting, transporting, logistics, and design. Each department will have its workload and will report its activity to senior management. Thus, a hierarchy of managerial staff is also needed. The president of the company will accept the reports from the vice-president. All the managers will be accountable to the vice-president. The leadership board will regulate the division of the responsibilities between the departments.

One of the advantages of the functional organizational structure is the possibility of exchanging ideas and experience among employees of any given department. Another benefit of this arrangement is high productivity and efficacy due to the workers’ defined tasks. Still, this structure has some limitations. For instance, there is a limited possibility for teamwork and poor coordination among the departments (“Types of Business Organizational Structures”). However, with proper approaches, the company will make use of the functional structure’s advantages and will limit the constraints.

Recommended Business Functions and Rationale

Success in business depends on many factors. Choosing proper business functions enables one of the most beneficial components. Business functions are chosen according to the specifications of concrete enterprises, and they are different for each company. Being aware of the functional areas is a core requirement for the company’s progress.

The Saudi Chocolate Company needs to include the following sectors: production, marketing, human resources, sales, finance, management, distribution, customer support, research and development, operations, and legal department (Sevilla). All of these functions should be combined to achieve the most successful results. The areas of human resource, production, management, and operations are the most important for the company’s stability. They are accountable for the proper organization of the enterprise. For the company to progress, the functions of finance and research and development are needed. Finally, to conquer the international market, it is necessary to have solid marketing, sales, distribution, and customer support areas, which will provide outreach to the target market (Sevilla). The legal department is responsible for taking care of any legal issues.

Follow-up Action Plan

After choosing an entry mode, organizational structure, and business operations needed for the Saudi Chocolate Company’s expansion into the Singapore market, it is necessary to make a follow-up action plan which will enhance the success and eliminate the risks of the project.

First of all, it is necessary to evaluate the level of the company’s readiness to appear on the international market. We should consider the financial abilities to start a long-term engagement connected with the exporting project. Also, it is necessary to check the team members’ preparation and the engagement of all the necessary personnel. Most importantly, the product has to be assessed for its competitiveness and readiness to enter the international market (“3 Essential Steps”). It should be ensured that the company is capable of adapting its goods to suit the needs of the Singapore market and its customers to eliminate the risk of failure.

The next step is reaching the chosen market. At this stage, it is essential to consider the local environment and customs. Also, it will be helpful to visit the potential market and organize meetings with some contacts to become acquainted with the local regulations, distribution, and competition (“3 Essential Steps”). Another productive approach is to attend events connected with the confectionery industry in Singapore. Such actions will aid the assessment of the target market peculiarities and make sure that the company strategy does not have any flaws.

The final step is implementing the chosen market entry strategy. At this point, the senior management of the company needs to outline the budget, consider competitor companies, and thoroughly evaluate the possible risks and benefits. Also, at this stage, it is necessary to set out a time frame in which the expected aims can be achieved.

Conclusion

Conquering the international market may seem a challenging task. However, the Saudi Chocolate Company has a long history of successful operation, and with proper approaches, it can enter the Singapore market. Having chosen to export for an entry strategy, we hope to eliminate the risks and gain the biggest benefits. Employing the functional organizational structure will enable the company to sustain success at all levels. The follow-up action plan is developed for the Saudi Chocolate Company’s next steps in the international market. Thorough consideration and implementation of the suggested steps will enable the company’s success in the Singapore confectionery industry.

Works Cited

“3 Essential Steps for Entering a Foreign Market.” BDC. Web.

Acute Market Research. “Chocolate Market Analysis, Market Size, Application Analysis, Regional Outlook, Competitive Strategies and Forecasts, 2015 to 2022.” Grand View Research. Web.

“Going Global with Your Business: Modes of Entry.” Vistage. Web.

Koh, Jeremy. “Sweet Deal for Chocolate Makers Here.” The Straits Times. Web.

Sevilla, Charisma Mae. “Functional Areas of a Business.” Founder’s Guide. Web.

“Types of Business Organizational Structures.” PingBoard. Web.

Mission and vision statements are important elements of any business organization. In this paper, the author is going to analyze three elements of Custom Coffee and Chocolate Coffee Shop. The mission statement and possible tactical plan for this entity will be assessed. Also, the author will conduct a SWOT analysis on the firm.

Mission Statement

According to Bartkus, Glassman, and McAfee (2000, p. 25), a mission statement describes the objectives of a given business organization. The statement highlights the functions of the company and the marketing strategies adopted. Custom Coffee and Chocolate Shop has a wide-ranging mission statement that caters to the needs of the customers, the suppliers, and other stakeholders. The possible mission statement of this organization is Providing High-Quality Services to Customers and Suppliers.

Commercial statements have three major components. The three are the key market, contribution, and distinction. The key market includes the target consumers, while contribution involves the products provided to the client. The distinction is based on the uniqueness of the product in the market.

The mission statement of Custom Coffee and Chocolate highlights the services offered to the people within the community (Bartkus & Glassman, 2008, p. 209). The menu of the shop encompasses the provision of entertainment, social amenities, and other cultural events. The client is provided with the opportunity to explore the world through the various coffee and chocolate flavors offered (Pakneiat, Panahi & Noori, 2010, p. 255). Such events as entertainment make it possible for the customers to interact with the sounds and words of other cultures. Business management scholars agree that when all the stakeholders pursue the same mission, the success of the organization is enhanced (Jackson, Aparna & Erhardt, 2003, p. 818).

SWOT Analysis

According to Pakneiat et al. (2010, p. 256), the strategy is used to evaluate a given business organization in terms of its strengths and weaknesses. It also examines the opportunities and threats associated with the entity (Williams, 2008, p. 100).

According to Pickton and Wright (1998, p. 105), the strengths of the company are the characteristics that give it an upper hand in the market. In the case of Custom Coffee and Chocolate, it is noted that the two entrepreneurs are the only providers of coffee and chocolate beverages in the university. They know the customer base, the need for unique products, and the existence of high traffic locations in the campus market.

Weaknesses entail the internal characteristics that expose the business to competitors in the market (Lang, 2009, p. 242). Custom Coffee and Chocolate lacks sufficient capital to expand. They also lack adequate human resources. Also, the business concentrates on the provision of takeaway services.

Opportunities are external elements that a business organization can exploit to its advantage (Bateman & Snell, 2012, p. 33). Custom Coffee and Chocolate has very few opportunities to exploit. However, the establishment can expand the menu to include baked chocolate desserts, tea, and other beverages. The two entrepreneurs have assessed the possibilities of hosting events like poetry in the shop. The organization can also exploit the possibilities of introducing delivery services to boost business.

Threats are potential elements that destabilize business operations (Chermack & Kasshanna, 2007, p. 390). The threats faced by Custom Coffee and Chocolate include a small market. There is also limited access to capital.

Tactical Plan for the Business

To compete effectively, the business should adopt e-marketing and communication planning (Agarwal, Grassl & Pahl, 2012, p. 11). The two elements will help streamline and improve business operations. Pricing and promotion strategies should also be formulated. The management should also install wireless internet connection to help host various events like poetry and discussions, which will increase sales.

Conclusion

The mission statement of a given firm should define the goals of the business organization. SWOT analysis is used to analyze the competitiveness of the company in the market. In this paper, a SWOT analysis was conducted on Custom Coffee and Chocolate to improve the company’s operations.

References

Agarwal, R., Grassl, W., & Pahl, J. (2012). Meta-SWOT: Introducing a new strategic planning tool. Journal of Business Strategy, 33(2), 1-13.

Bartkus, B., & Glassman, M. (2008). Do firms practice what they preach? The relationship between mission statements and stakeholder management. Journal of Business Ethics, 83, 207-216.

Bartkus, B., Glassman, M., & McAfee, B. (2000). Mission statements: Are they smoke and mirrors?. Business Horizons, 43(6), 23-28.

Bateman, T., & Snell, S. (2012). Management: Leading and collaborating in a competitive world (10th ed.). New York: McGraw-Hill/Irwin.

Chermack, T., & Kasshanna, B. (2007). The use and misuse of SWOT analysis and implications for HRD professionals. Human Resource Development International, 10(4), 383-399.

Jackson, S., Aparna, J., & Erhardt, N. (2003). Recent research on team and organizational diversity: SWOT analysis and implications. Journal of Management, 29(6), 801-830.

Lang, M. (2009). Conflict management: A gap in business education curricula. Journal of Education for Business, 84(4), 240-245.

Pakneiat, M., Panahi, M., & Noori, J. (2010). Firm capabilities and diversification: How mission matters. Business Strategy Series, 11(4), 248-260.

Pickton, D., & Wright, S. (1998). What’s SWOT in strategic analysis?. Strategic Change, 7(2), 101-109.

Williams, L. (2008). The mission statement: A corporate reporting tool with a past, present, and future. International Journal of Business Communication, 45(2), 94-119.

Client Overview

Kakao Chocolate produces exquisite samples of chocolate and other sweets made of purely natural ingredients. You may find the rare flavors there which go beyond imagination: chocolate combined with pepper, tea, and even bacon. The customer service is great because they invite you to see the process of creation of their sweets by yourself.

Pricing

The company’s prices are quite affordable and vary between $3,50 for pieces of chocolate bark and $45,75 for an exclusive set of truffles:

• Big squeal bacon pecan brittle: $5,00;
• Dragees: $8,00;
• Marshmallows: $4,00-$5,00;
• Hot chocolate mixes: $6,00;
• Pates de fruits: $5,00;
• Sea salt caramels: $7,00;
• Toasted Missouri pecans – milk bark: $3,50;
• Truffles, 25-piece box: $45,75;
• Sea salt caramels gift box: $11,50-$36,00.

Distribution Channels

• Gordon Food Service Store (3200 Laclede Station Rd, Maplewood);
• Shop ’n Save (7057 Chippewa St, St. Louis);
• Straub’s (302 Kingshighway Blvd, St. Louis);
• Walmart Supercenter (1900 Maplewood Commons Dr, Maplewood);
• Schnucks (8800 Manchester Rd, St. Louis).

New Retail Store

I would locate a new store in the Four Seasons Resort (315 Four Seasons Dr, Lake Ozark, MO). I chose this location because many people from nearby cities as well as from faraway places come here. They would buy chocolate as souvenirs to take home and in this way, the brand would be promoted.

Competitive Analysis

Direct competitors:

• Grandma’s Candy Kitchen (1470 Bagnell Dam Blvd., Lake Ozark);
• Rocky Mountain Chocolate (4540 Osage Beach Pkwy N, Osage Beach).

Indirect competitors:

• Scoops Ice Cream (1396 Bagnell Dam Blvd, Lake Ozark);
• Easy Street Dessert and Dessert Bar (1100 Bagnell Dam Blvd, Lake Ozark);
• The Yoghurt Bar (1311 Bagnell Dam Blvd, Lake Ozark).

Kakao Chocolate will be in a strong position against its competitors because it has such advantages as entirely hand-made production and only natural ingredients.

Discussion Questions

“A Day in the Life of Your Ideal Client”

I would like to conduct such field research because it looks really interesting and beneficial for the business. I think that “shadowing” the customers gives a fantastic opportunity to get to know them and their purchasing habits better.

The thing that particularly impressed me about Korean consumers was that they do their shopping every day because they buy only fresh products. This information allowed Coke to adjust their marketing tactics to these people: they decided not to sell big bottles because the shoppers were unlikely to want them. Also, they came up with ways of advertising their store based on the typical consumer’s daily routine.

Target Audience, Description, and Media Choice

Rationale: The resort has an indoor pool, a TV with cable channels, a spa, and a health club. Visitors may choose from a variety of activities such as biking, fishing, boating, and hiking. All these opportunities will be appreciated by the kids who love having fun and their parents who need to relax after an exhaustive year of work. The resort also has a great cinema where the guests may watch movies for free every night, which is an ideal option for families. Finally, the resort is pet-friendly, which means the visitors do not need to worry about their favorite animals while having their rest. Since the Midwest Living Magazine publications describe the ways of spending one’s free time and focus on various recreational opportunities, it is a perfect way of reaching my target audience.

Marketing decisions and planning are one of the main and most important parts of successful product management. The marketing team must constantly analyze and evaluate alternative situations and choose among them. To do so requires the simplification of marketing reality and the resolution of conflicts. Given conflicting marketing situations, the choice is often difficult and involves balancing risks and payoffs, knowledge, attitudes, opinions, feelings, judgments and facts, and current situations and future opportunities. In the case of Climate change chocolate, the decision-making process shapes a company’s destiny, since today’s decisions are a prelude to tomorrow’s marketing situations.

Product Description

Understanding buyer behavior is one of the more perplexing tasks confronting Climate change chocolate. The difficulty arises from the heterogeneity of buyers, from their being groups of individuals who differ from one another (Fill1999). The climate change chocolate market is divided into two main segments, regular buyers and occasional buyers. Climate change chocolate has developed a unique product that better satisfies customer wants and needs.

Also, the product is intended for both children and adults category. “Our Climate change chocolate bar is meant to educate while tasting great. It comes in a wrapper with 15 tips for lightening your environmental impact. These helpful hints teach you how to save energy by making small changes to your daily habits. And of course, thanks to Bloomsberry & Co., you can be sure the finest chocolate is attached to these green lifestyle lessons” (Climate change chocolate Home Page 2008).

The product involves a unique packing attracting millions of buyers. This product has psychological assets that convey something besides its physical utility. Relatively peripheral or superficial factors, which have only symbolic meaning rather than functional value, are important. In the case of this product, psychological influences play an important role in purchase decisions, because the willingness to buy — a significant component of demand — is dependent on more than income.

While research findings may not establish unequivocally why purchasers react as they do, the insights, tendencies, and perspectives offered by behavioral scientists are helpful. Particularly valuable are the psychological theories and concepts relevant to personalities, wants, needs, motivations, perceptions, attitudes, opinions, expectations, aspirations, security levels, and images. “Now, Climate Change Chocolate has joined the mix, offering a fun and delicious way to educate consumers on ways to reduce energy consumption.” (Climate Change Chocolate Home Page 2008)

Customer Base

The Australian market has gone through an income revolution that has created a redistribution of wealth. Older baby boomers can now be characterized as middle-aged, established family members with several automobiles and at least one mortgage. This market segment is important to food marketers because of their numbers, wealth, and departure from established lifestyles. This market segment is better educated than previous generations and is expected to inherit more wealth than in the previous history. Some products have specifically addressed the needs of baby boomers (Fill, 1999).

Many boomers, for example, grew up wearing jeans and traveling around the world and desire to continue this practice. Since waistlines have expanded with age, companies have introduced larger sizes with different styles to conform to the middle-aged physique. Many baby boomers are obsessed with aging and desire to maintain a youthful appearance using vitamins and drugs. Consequently, many boomers monitor waistlines and diets which has a positive impact on the pharmaceutical industry (Kotler and Armstrong 2005).

Competitive Environment

For climate change chocolate, the Australian competitive market is represented by the candy and confectionary markets. The main competitors of climate change chocolate are Nestle and Mars. Both companies are market leaders relying on the high quality of products and selling history. Competition refers to the creation of differential advantage particularly by the effective management of innovation to meet changing marketing opportunities (Boone and Kurtz 2002).

Consolidation and internationalization of buying operations, independently and through alliances, will remain dominant. Retailers will thus countervail collaborative moves among major manufacturers such as Nestlé-Coca-Cola, Nestlé-General Mills, and Nestlé-Baxter. Large food retailers have joined hands in the past five years to pool their resources for centralized buying and effective negotiation of terms with suppliers.

Major retailers have also consolidated and internationalized their buying functions on an individual basis. External factors that place a limit on competition and innovation include various types of governmental regulation, accepted industry practices and agreements, and the social. The main strengths of climate change chocolate are innovative methods of production and unique advertising and promotions methods. The main weakness is that the product is not ready for immediate launch (Climate change chocolate Home Page 2008).

The Australian market proposes enormous opportunities for climate change chocolate because it will be the only company producing such products. The main strength is that for the next 3-5 years, climate change chocolate will be the only market leader in this sector. The main weakness is that any other company can enter this market and reduce the price level. Thus, even such leaders as Nestlewill need large cash reserves for research and development. These reserves also enable them to take risks in spending large sums for advertising and promotion. Today, climate change chocolate has full advantage of the quality and unique image of its products (Climate change chocolate Home Page 2008).

Price Potential

in Australia, prices are the terms of exchange among goods and services, and price policy is a central element in the marketing program of any company. Under competitive conditions, prices are determined primarily by costs. Researchers explain that prices may vary as part of the marketing policy of a company and costs may vary correspondingly (Dobson and Starkey 2004). The price potential for climate change chocolate varies from $4.95- $6.95.

Price should be seen as the ingredient of the marketing mix that has been subjected to the most intensive analysis. But as an aspect of the mix, it cannot be divorced from other ingredients. A lower price does not necessarily mean expanded sales. This price is the best one for Climate change chocolate because pricing decisions should be viewed from the perspective of a company’s total product line since products have complementary and competitive demands, joint and common costs, and by-products.

In this case, a skimming policy is effective because demand is relatively inelastic. It pays with new products, where smaller volumes can be produced economically and a high price does not attract heavy competition. On the other hand, penetration pricing is suited to markets that are price sensitive. Its value is greatest in situations where production or distribution costs, or both, decrease with volume and low prices discourage competition. Also, it is important to note that “at a low price Climate change chocolate could never hope to recoup the massive cost of production development” (Climate change chocolate Home Page 2008; Crawford 2003).

Distribution

In Australia, climate change chocolate would be positioned as a market leader and a top brand. Thus, intention to buy would be treated as a dependent variable as well as an independent variable. Regarding the consideration of intention as a consequence of the internal processes, it is generally the intention-behavior issue is larger than the attitude-behavior issue. The unique image and perception of the product would be supported by the fact that Climate change chocolate is the first in the product category (Hollensen, 2007). Segmentation would be based on behavior and psychographic characteristics (Drejer, 2002).

The target audience would involve pets owners who are willing to pay high price for both adult and children consumers. A special group would involve those customers who have insurance. Climate change chocolate should locate a brand in customers’ minds as a unique and innovative solution. Positioning of a product can be characterized by establishing trustworthiness, confidence, and competence for customers. “Whole Foods sells a variety of cause-related chocolates that raise awareness and funds for everything from saving endangered species to protecting the rainforest” (Climate change chocolate Home Page 2008).

The image of the innovative product will help Climate change chocolate to locate it in customers’ minds. Usually, customers integrate all their experiences of observing, using, and consum­ing the product with everything they hear and read about it. Information about this product should come from a variety of sources, including advertising, publicity, sales personnel, and packaging. Perceptions of price and distribution should be also taken into account (Pittengrew et al 2006).

The sum of impressions is the image, a unified image about both the products and services. The product would be distributed through direct agents and representatives of the company and the retail chain. Agents will be representatives who act on behalf of Climate change chocolate. The agents will be paid based on commission. This is the best way to reach a customer and familiarize practices with an innovative product. Also, marketing communication is based on psychographic characteristics that group people in terms of their attitudes, values, and lifestyles (Climate change chocolate Home Page 2008).

TV programs and press clubs, trade shows newsletters, press releases would help to inform potential clients about recent developments and innovations, about future directions and strategy of the company. Newsletters would inform all clients about recent changes and innovations applied by the company. This information will help to create an image as a unique brand (Cooper et al 208). Promotion and communication by Climate change chocolate would be tied intimately to consumer and buyer behavior. But not all consumers will necessarily respond to marketing promotion in the same way, following the same sequence concerning the hierarchy of effects in the dimensions of attitude and behavior – cognitive and affective.

Most buyers are driven by success and brand prestige, brand loyally, and qualities of the products and services. Marketing communication has a direct impact on buyer behavior. Climate change chocolate marketing communication would appeal to the rational choice of consumers proposing high-quality goods. Climate change chocolate should base its strategy on a rational approach appealing to logic and speak to the customer’s intellect (McDonald and Christopher 2003).

Pricing

Pricing policy is therefore a vital strand of strategy, which because of the complexities involved is often difficult for man­agement to judge. Pricing strategies should consider both cost and demand conditions, and the dynamics of markets, thereby accounting for both internal and external variables. Although the determination of an optimal price is usually impossible, a satisfactory one can be developed by analysis (Hollensen, 2007).

A skimming policy should be used for climate change chocolate. This strategy is valued by those who believe that a concentration on a unit that focuses their efforts is better able to serve their needs of a narrow strategic target more effectively than their competition. A low price would decrease brand image and does not allow Climate change chocolate to sell Climate change chocolate at a premium price. The too high price would have a great impact on sales because only a limited number of customers would buy Climate change chocolate at $3.00 and high.

SWOT Analysis

Strengths

In Australia, the least obvious case of consumer learning is when products and competitors remain stable, unchanging for years, perhaps decades. A lack of innovation and the absence of new competitors may lead you to believe that there is no buyer learning occurring. In both laundry detergent and ice cream, for instance, product benefits have remained unchanged for years, there have been few innovations, and virtually everyone is familiar with major brands in both categories. Despite that constancy, buyers continue to learn. Buyers may, for a particular product category (such as graduate business education), engage in this process only once. In the case of automobiles, they may engage in it every few years, and in the case of wine, buyers may engage in this process more frequently (Paley, 2006).

Weaknesses

The two populations in these subgroups share common life experiences or events that might be useful in targeting these groups. Therefore, the oldest and the youngest baby boomers would appear to have the most differences and would likely require different marketing programs. Manufacturers are trying to develop products aimed at this market for removing wrinkles or easing baldness (Geller, Zenick, 2005). Baby boomers have an active lifestyle and are increasingly the buyers of leisure products and services such as educational seminars, travel and sporting goods, and recreational equipment.

Opportunities

On the Australian market, for Climate change chocolate competitive strategies play a central role in the buyer learning process. The competitive strategies brands pursue create the buyer experience and, based on this experience, buyers learn three key things—how to perceive brands, how to value the differences among brands, and how to make a choice among the alternatives. These perceptions, preferences, and choice strategies become the essential rules of the competitive game.

Those rules, however, are continually updated as buyers continue to learn. In contrast, under the conventional view of buyers—that they know what they want—the rules of the game remain fixed, or at least they are beyond the influence of competitors’ strategies. Competitive strategies are crafted subject to those rules. Competitive advantage, in that case, arises from playing by the rules that buyers establish and creating unique value in the minds of buyers. If buyers learn, competitive strategies play a fundamentally different role in the competitive process. Buyer knowledge still defines the rules of the competitive game. But

Threats

The main risk of Climate change chocolate is that it would not be able to set a premium price for its product. On the other hand, the launch of Climate change chocolate on the Australian market would help to position Climate change chocolate as a market leader and create a strong brand image. Also, it would help Climate change chocolate to pass ahead of its competitors. To minimize these risks, Climate change chocolate should create a strong brand image and establish trustworthiness, confidence, and competence for customers.

This strategy would be supported by the buying process and the pricing and as the most important this positioning strategy. Branding would be crucial for Climate change chocolate because it enables customers to better organize their marketplace experience by helping them seek out and zero in on particular products (Keegan and Green 2004).

In sum, those rules are the outcome of the competitive process. Rather than a chess match between rivals, a better analogy might be a poker game where the game is the dealer’s choice and the selection of the dealer is up for grabs. The dealer defines the winning hand, and competition determines who deals. Through competitive strategy—the market segments targeted, the brand positions adopted, the products offered, the advertising messages crafted, and the prices chosen— the firm influences the buyer learning process. It is supposed that the unique image and parching is a key component of consumption, and the stimulus inducement or purpose in a certain desire.

Its energizers are drives, including the visceral, activity, aesthetic, and emotional drives. Concepts of aspiration levels, images, cognition, and vector analysis add to our understanding of human behavior. People seem to aspire to goals that might be attained — that are just outside their immediate grasp. Once goals are achieved, higher aspiration levels spring up. Purchasers experience brand, product, price, quality, company, and store images.

Bibliography

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Paley, N. 2006. The Manager’s Guide to Competitive Marketing Strategies. Thorogood.

Introduction

Chocolate is prepared from cocoa beans. In Aztec language xocolatl refers to bitter water. The natives drank it as a drink mixing it with, chilli vanilla and achiote. Europeans discarded the chilli and added to it milk and sugar. In due course a process was developed that created chocolate bars from this. Cocoa was a native of South America but today West Africa meets two thirds of the world’s requirement for cocoa. One of the finest businesses in chocolate is the Hershey Company, who has excelled in the trade with ethical approach and guidelines that are helpful for the employees in providing better service and thus a better product and consumer satisfaction in the long-run.

Company background

The biggest chocolate manufacturing unit in North America is The Hershey Company – known as Hershey Foods Corporation till 2004 April. As a company with more than 100 years of history, it ranks among the oldest chocolate firms in USA and has acquired an iconic status. The main building of the Hershey Foods Corporation is currently situated in the state of Pennsylvania. The place that holds the head office is called Dauphin County’s Derry Township. It also hosts Hershey’s Chocolate World.

In 1894, the entrepreneur, Milton S. Hershey became the chief architect of the company and named the company Hershey Chocolate World. It was founded as an auxiliary local office of Lancaster Caramel Company. Today, Hershey Foods Corporation is considered to be one of the oldest surviving firms dealing with chocolates that are located in the United States. It is no surprise that it has gained the status of an icon in today’s business world.

The proprietor, Milton Snavely Hershey, is truly a very interesting character. After running through an apprenticeship with a confectioner, Milton Hershey set up a candy shop in 1876 at Philadelphia. Six years later it downed shutters. He tried but failed in manufacturing candy in New York. He came back to Pennsylvania and set up the Lancaster Caramel Company. From then on the company has not looked back. Milton constructed a plant for processing milk in 1896 and invented a recipe for milk chocolate candies. After 3 years he developed what became known as Hershey’s process. In 1907 he introduced Hershey’s Kisses. It shifted over from being hand-wrapped to machine-wrapped in 1921. Apart from these elements, it can be well stated that the company has acquired many other subsidiary companies over the time that were operational in the same industry of chocolates and candy. There is also diversification and Hershey Company is also into entertainment industry and hospitality business with Resorts that feature stadium, parks etc. There are various brand names too under the name of the mother business (Brenner, 26).

Discussion

There are several products that the company offers. There is a wide range of Hershey Bars like Hershey’s Symphony, Hershey’s special dark, Hershey’s with almonds etc. There is also a range of health bars that includes Hershey’s extra dark, Hershey’s Whole Bean and Hershey’s Antioxidant. Furthermore, Cacao Reserve is regarded as a niche brand of the company that includes Signature collection, Single origin or Truffles. Other chocolate based products are Hershey’s Bite, Glosette, Cherry Blossom, Bar none, 5^th Avenue Almond joy etc. (Brenner, 28)

A ribbon on its top indicated it to be a genuine Hershey product. It acquired a trademark in 1924 and since then it has won laurels and fame. 2007 was marked as the one hundredth anniversary of Hershey’s. The postal services of USA recognized the occasion by issuing a special Love Stamp. Some of its other original famous products are Mr. Goodbar, Hershey’s Syrup, chocolate chips and Krackel bar. The newest additions are calorie candy and toffee bars along with rice and marshmallow bars. There are varieties in gum and mint as well as pantry items like pantry items (chocolate for baking, dessert toppings etc.) (D’Antonio 186).

The organizational setup of the company is well defined and extremely well formulated. Across the globe Hershey employs nearly 13,000 employees. It maintains high ethical levels for all the tiers – directors, officers and the employees. The buzz word is maintaining excellence in governance. The board of directors comprise of the very best of talents. The guidelines of the company are renewed every year. It was amended recently in February 2010. The board comprises of independent directors who are to be in the majority. The criterion followed is stricter than pursued by the New York Stock exchange. The members of the audit committee and other committees dealing with organization, risk, finance, management etc are also independent.

Conclusion

Today chocolate enthusiasts consume over million tons of chocolate products annually. The interest began to grow from the 1990’s and continues to be the rage with no signs of diminishing interest. Latest researches in science have shown that chocolate is good for our health. Once it was avoided as a fattening snack but today it has reclaimed its original position as an elixir for revitalizing the body and mind.

Works Cited

Brenner, Joël Glenn. The emperors of chocolate: inside the secret world of Hershey and Mars. NY: Broadway Books, 2008.

D’Antonio, Michael. Hershey: Milton S. Hershey’s Extraordinary Life of Wealth, Empire, and Utopian Dreams. LA: Simon & Schuster, 2007.

The rising global concerns related to climate change and the exhaustion of natural resources due to the intensified human activity in multiple industries have been triggering the need for shifting to sustainable development. Food security and resource scarcity issues are of particular importance within this perspective, since the performance of agriculture and other food-related industries are at risk of being adversely impacted. The chocolate industry, which globally relies on the supply of cocoa from African countries, faces significant resource scarcity threats due to climate change that reduces the amount of water in the tropical areas (Naranjo-Merino, C.A., Ortiz-Rodriguez, O.O. and Villamizar, 2017; Zhang, 2016). While cocoa production exceeds the demand, there are multiple difficulties related to taxes, pricing, and production regulations that farmers face. However, the rising volumes of production trigger the concerns of the exhaustion of natural resources necessary for sustainable chocolate manufacturing.

The long-term vision of the future of cocoa production as the main agricultural resource for the chocolate industry necessitates the evaluation of the availability of resources for sustainability purposes. However, while some areas are more impacted by the resource shortage than others and the data on the state of the chocolate industry vary, it is necessary to research the level of impact of resource scarcity on the chocolate industry (Maltais, 2019; Wilmore, 2015). This paper will be based on the environmental complexity and source scarcity theories to investigate the business case of the Ferrero Rocher company. The evaluation of the level of influence of Ferrero Rocher on the availability of resources will be presented. The overview of the company’s past and current performance, the analysis of its supply chain, and the forecasts for the future trends in relation to resource scarcity will be provided.

Reference List

Maltais, K. (2019) ‘What chocolate shortage? Cocoa prices steady as record output projected’, The Wall Street Journal, Web.

Naranjo-Merino, C.A., Ortiz-Rodriguez, O.O. and Villamizar-G, R.A. (2017) ‘Assessing green and blue water footprints in the supply chain of cocoa production: a case study in the Northeast of Colombia’, Sustainability, 10(1), pp.1-9.

Wilmore, K. (2015) ‘A chocolate shortage? Why the world’s favorite treat could get a lot more expensive and harder to find’, Junior Scholastic/Current Events, 7, p. 12.

Zhang, Y. (2016) 5 facts about the chocolate industry. Web.

The interaction between product quality and process quality is a complex one, whereby the quality of output is highly depended on the process quality. Process quality together with other factors such as manpower affects the processing time and the final end product.

A process is composed of various stages, which interactively influence each other.

In 2005 Harris faced the same problem of retaining the product quality at the same time improving on the production capacity as a result of speculations for demand increment of the chocolate Continuous attempts had been made in reducing the time allocation for each processing step in the Scharffen Berger chocolate maker but this led to great changes in the quality of the America’s best chocolate (Leff, 2005, p. 73).

The final decision was to come up with a new ball mill machinery all together. This machine would multiply the production speed at the conching processing stage and at the same time improve on the product’s texture.

It would also improve on the flavor of the product by ensuring that less sugar is lost during the long processing times. This big question had finally found an answer but greater challenges lay ahead of the company. This work summarizes the benefits of a quality process line in relation to the Scharffen Berger maker.

The case study shows clearly the link between quality of process and quality of products. All processing steps are equally important and slight changes in the time allocated or even some other settings would be very detrimental to the end product.

Scharffen Berger Chocolate Maker consists of seven main processing steps among them is the bean cleaner which serves to clean up the beans before production. Poor working conditions of the bean cleaner can lead to chocolate production with poor flavor due to dirt leakages.

The other step is the roasting stage, which introduces the caramel flavor to the cocoa beans. Poor control of the roasting temperatures could lead to burning of the cocoa beans leading to poor quality products or even worse complete lose of the product.

From here the product goes to the melangeur stage, which is necessary for a smooth paste of cocoa (Perry & Ruffenach, 2008, p. 191). This stage highly defines the texture of the finished product a major quality parameter in chocolate production.

Conching is another processing step involved in Scharffen Berger chocolate making process. It involves further refining of the chocolate mass at the same time incorporating air into the mixture for better taste. This greatly influences the quality of the end product.

Tempering is the stage involved with the hardening of the chocolate mass and ensuring that the gloss is well maintained. For a chocolate to have viscosity the tempering stage has to be fully controlled.

The final stage in the chocolate manufacturing is the packaging stage, this serves to hold the final product and for display purposes. Quality packaging serves to attract more customers and sell the product in greater volumes.

In Scharffen Berger chocolate maker, quality of packaging is ensured by outsourcing 65% of the packaging and the other 35% is done from the company’s premises (Axelrod & Brumberg, 2006, p. 10).

Identify the capacity bottlenecks throughout the process

Three major issues face the Scharffen Berger chocolate makers, which are related to the level of output, that is, the need for expansion, bottlenecks and the economies of scale.

A bottleneck is an occurrence in which the output of a given processing system is restricted by one of the steps in the processing line or even the raw materials. In the Scharffen Berger chocolate maker the conche stage is one with such a holdup.

The production capacity of the conche whose function is to blend, purify and aerate the chocolate mass is 1344 kg per day, which is a limitation towards meeting the high demand of the product.

This can be solved by the use of a high capacity ball mill, which is said to be able to greatly reduce the throughput time and at the same time improve the texture of the final product.

The ball mill reduces the time used in the conching process alone from 40-60 hours to about 15 hours.

This means that the production efficiency would triple and the demands of the people would be met (Thompson, 2006, p. 73). The few hours used also would enhance the flavor of the chocolate as sugar degradation is minimized.

The introduction of the ball mill could also serve to introduce other bottlenecks in the preceding stages. The melangeur stage will also be able to handle the increment in the production capacity at the conching stage.

The production capacity at this stage can only be met by introducing three of such melangeurs. The costs of introducing the three melangeurs will surpass its benefits and therefore outsourcing this kind of services should be considered.

Tempering and molding stages should also be considered to see whether they can sustain the processing efficiency. These considerations may call for an expansion in the company’s premises making it to incur more costs.

The costs can then be transferred to the rest of the distribution channel and the greater impact is therefore felt by the consumers.

Another huddle to be solved is the outsourcing of the packaging materials. 65 % of the chocolate is packed by co packers. This poses a problem of the quality management for the product.

Quality control is made easier when products’ processing lines are continuous. The packers would also re-temper and re-melt the chocolate hence the need for quality control. This also adds on the processing time and the costs as some of the processes have to be done twice.

This could be solved by transporting the liquid chocolate to avoid reprocessing of the chocolate mass but this too is difficult due to the problems posed by the transportation of the liquid chocolate to the packers.

Assess the attractiveness of a high quality process development for a premium quality product

A high quality process development for a premium quality product is vital as best products are basically bought for their prestige. The development of a high quality process is advantageous to the organization, the whole distribution channel and the consumer at large.

Coupled with other factors such as ingredients quality, the effectiveness and the standards of formulation, development of a quality process determines the quality of end product.

The attractiveness of the end product determines its market value. A high quality premium product fetches more money and attracts quick sales. This translates to voluminous sales and high profits to all the members of the distribution channel.

Quality products from quality processes also build up the company’s name and this is the aspect of branding. Superior brands attract a lot of money in return as they are associated with quality and prestige. Also branding will help in product differentiation, which will ensure that the product stands the tests of time.

A quality process minimizes lose of products and raw materials due to failures. This ensures that profits are maximized and that less money is spend on the raw materials.

The savings in the cost of raw materials could be used to develop the company’s premises. Quality processes also increase efficiency of the production meaning that the output per any given time is maximized.

Another attracting feature on developing quality process is the aspect of reducing the manpower required. Some processes require a great number of people who can be reduced by developing of the processing lines.

Finally, a quality process ensures uniformity in products produced giving its customers a continuous and even taste. The satisfaction of every consumer is the main goal of any processor hence quality products are able to meet this goal.

Conclusion

From the case study it is evident that quality is core when it comes to any organization. The expansion of throughput by Scharffen Berger chocolate maker is mainly the quality variations upon reducing the process’s time of production in order to attain maximum output.

The conching stage of the Scharffen Berger Chocolate maker is the major bottleneck for capacity increment and the solution lies in the adoption of a ball mill. Process quality is equally important for quality products.

Premier products, which are associated with prestige, need to be of superior quality. The quality can only be ensured through development of a quality process which also serves to ensure maximum throughput of the company.

References

Axelrod, K., & Brumberg, B. (2006). Watch it made in the U.S.A.: A visitor’s guide to the best factory tours and company museums. New York, NY: Avalon Travel Publication.

Leff, J. (2005). The chowhound’s guide to the San Francisco Bay. New York, NY: Penguin Publishers.

Perry, S., & Ruffenach, F. (2008). Deep dark chocolate. New York, NY: Chronicle Books Publications.

Thompson, F. (2006). Hot chocolate: 50 heavenly cups of comfort. New York, NY: Harvard Common Press Publications.

Taking Advantage of Changes in Legislation

The latest FDA regulations are designed in a way that natural and organic chocolate producers might find beneficial. Because the emphasis is made of mentioning actual information about the daily value and added sugars on a package, it is advantageous for natural brands, as they use only healthy ingredients for production, and the amount of sugar is minimal. Nevertheless, they should pay significant attention to designing a comprehensive marketing strategy to boost sales, especially if their activities are more dynamic during seasonal holidays. This marketing mix will be based on several campaigns – educational aimed at increasing awareness of nutrition facts and chocolate contents and promotional for drawing attention to organic products and targeting consumers.

The objective of the first campaign is to draw consumers’ attention to labeling and nutrition facts to increase awareness and promote a healthy culture. The central idea is to educate people about the significance of studying labels, providing nutrition facts. According to the new FDA regulations, labels should provide details about serving sizes, calories, and daily values, and they should be actual (FDA, n.d.). Because this marketing mix is developed for a small company, it is essential to recognize that it does not have enough resources and opportunities for funding a massive marketing campaign.

For this reason, the primary source for running and promoting this campaign is a website. It is recommended to include several sections before designing and launching the website. First of all, there should be information about chocolate contents so that consumers are confident that the product is natural and does not include artificial and unhealthy components. Moreover, it is advisable to show short videos from production facilities to show how chocolate is made. The objective is to attract consumers to natural chocolate. Another section should provide answers to frequently asked questions about chocolate contents.

One more beneficial option is to educate people, teaching them to understand the nutrition facts label. Furthermore, it is essential to compare and offer natural products to a traditional chocolate bar. Here, it is imperative to avoid mentioning producers to avoid legal consequences, as it is a determinant of unfair competition (Ferrel & Hartline, 2014). This section should focus on comparing calories, the amount of added sugars, and daily values of both our product and those produced and offered by rivals. This step is advisable because it would point to the advantages of the proposed chocolate bars, as they contain less sugar and are healthier. Also, it is a perfect educational campaign because it would motivate a smart consumer to check labels and choose healthier and more natural products. It is an option for boosting sales because people are more likely to give preference to natural goods if they are shown how to select ones.

As it was mentioned above, describing nutrition facts is a crucial element of this marketing mix. For instance, according to the FDA (n.d.), daily value refers to the amount of vitamin D, potassium, iron, and calcium compared to the average daily intake. Another significant label is fat because it mentions saturated and trans fat. Because trans fats have a negative influence on the condition of human health, it is imperative to indicate this figure and pay attention to it. Finally, the amount of added sugars should also be noted because excessive consumption of these sugars leads to diabetes, obesity, and other serious health concerns (Wilson & Hurst, 2015).

In addition to increasing awareness of nutrition facts, this strategy aims at promoting healthy and natural products. This objective can be achieved by taking different steps. The first step as described above. It is comparing common chocolate to the product made from natural ingredients. If people find out that taste is the same or even better and this chocolate bar contains fewer calories and sugar, they will give preference to a healthy alternative. It is especially true in the era of growing consciousness and overall struggle for a healthy future. Another step is to target consumers. In this case, there are no limitations to choosing the target market because the product is 100% natural and healthy. That is why the idea is to show people of different ages and body tympanums.

However, it should be noted that the product is seasonal. It means that commercials should be seasonal as well whether they are posted online or appear in a local newspaper. For example, speaking of Halloween, the idea is to depict a woman, who gives natural chocolates as treats. The goal is to appeal to emotions and highlight that this woman gives the same chocolates to her children and her little guests. It means that the focus should be made on care and subconscious appeal to the belief that this product is good and safe for people of all age categories even children.

In general, targeting strategy is product specialization. The very essence of this strategy is to focus on producing only one type of product, i.e. natural chocolate. However, the specificity of this approach is to adapt it to the needs of particular consumer groups (Pride & Ferrell, 2016). For example, nuts are a common allergen. It means that introducing chocolate without nuts is an option for attracting highly allergic individuals. At the same time, it is a way to diversify products, which is beneficial for increasing consumer base and boosting sales.

At the same time, it is imperative to remember the seasonality of the product. To boost seasonal sales and make natural chocolate popular, it is recommended to fall upon diversification. It is an effective marketing tool, which helps to satisfy the tastes and needs of different consumers (Pride & Ferrell, 2016). Keeping in mind the scope of the company, it is impossible to assume a high degree of diversification. Still, introducing at least one or two seasonal products is an affordable decision. It is even more economically beneficial. The rationale for this statement is the fact that the company uses natural ingredients. So, it is better to purchase seasonal fruits and berries than to import the required contents. Speaking of seasonal diversification, pumpkin stuffing is an appropriate decision for Halloween. Adding apples and air-popped corn would as well hint at Halloween mood and make the product seasonal. Significant attention should be paid to nuts, except for allergen-free chocolate bars.

To sum up, this marketing strategy is based on several campaigns and techniques. The first one is launching a website, which would include detailed information about the product itself and nutrition facts labeling, thus fostering awareness, creating health-centered culture, and promoting sweets. Another technique is market targeting and product specialization aimed at pointing to the uniqueness of the proposed chocolate and increasing seasonal sales.

Adapting Seasonal Strategy to FDA Regulations and Reacting to the Rising Threat of Natural and Organic Chocolate Brands

Chocolate producers are susceptible to high risks of being outperformed by competitors because confectionery market products are easily imitable and substituted. The most significant threat is the rise of natural and organic chocolate, as the demand for healthy sweets is constantly growing. Even though such influential chocolate producers as Hershey announced the removal of artificial and unhealthy ingredients from branded sweets and it is one of the market leaders, the company should pay significant attention to developing a comprehensive strategy of reacting to the emerging natural and organic chocolate brands.

Introducing Hershey Kisses was a successful decision. Announcing that it is produced without using artificial flavor was another victory (Euromonitor International, 2016). However, Hershey should as well keep in mind recent changes in FDA regulations and adapt its marketing strategies to take maximum advantage of the new laws. According to these laws, chocolate producers should mention information about the daily value, nutrition science, added sugars, etc. (FDA, n.d.). As for now, the company moved to smart labeling, which meets the requirements of the new FDA regulations because it points out that a product is gluten-free and does not contain artificial flavors. This label helps Hershey to become a more transparent chocolate producer, as people know the constituents of candies they love to buy (Heneghan, 2015).

As for adapting the marketing strategy to the new FDA regulations, the focus should be made on the packaging. It is imperative to focus on meeting the requirements to label size and content, mentioning all necessary details such as added sugars and nutrition value information. This information should be printed, using a readable font. Also, serving sizes, calories, and daily values should be actual (FDA, n.d.). Indicating facts about the product is the only way to take advantage on the new FDA regulations because transparency and smart labeling is the only strategy for winning a smart consumer and keep up with a rapid pace of confectionery industry development (Heneghan, 2015).

As there are numerous seasonal holidays, it is imperative to pay significant attention to offering Hershey Kisses in seasonal packaging. Due to several holidays, the focus should be made on the most popular ones such as Easter, Valentine’s Day, Christmas, and Halloween. The motivation for choosing a limited number of holidays is the fact that chocolate is a perishable product. That is why unsold candies cannot be kept until the next season. Moreover, proposing limited variations of seasonal packaging would make the company recognizable, and its marketing strategy more effective. The rationale for recommending this decision is the assumption that bright packaging with seasonal drawings would stand out against the traditional packaging of the company itself and its competitors as well as motivate consumers to purchase them.

Keeping in mind the recommendations mentioned above, the idea is to design a seasonal package, which would contain a drawing on the front side of the chocolate or candy set and all necessary information required by the FDA regulations on the rear side. Also, it is advisable to introduce different designs of packages during different years. The motivation behind this idea is the assumption that people are interested in the Hershey product not because of its taste but also due to its peculiar and bright styling. For instance, Halloween is traditionally associated with pumpkins, bats, and various monsters. Easter is the season of eggs and rabbits. Valentine’s day cannot be spent without flowers, kisses, hearts, and Cupids. Finally, Christmas is synonymous with Santa Claus, Christmas tree, and miracles. All these elements should be reflected in Hershey’s Kisses packaging in different combinations and colors. Still, orange, black, and brown can become the colors of Halloween, red and pink for Valentine’s day, light blue for Easter, and deep blue, white, and green for Christmas.

The recommended marketing strategy is Hershey’s traditional approach – product placement. The very essence of this marketing trick is to mention Hershey Kisses in different radio programs, show them in magazines, clips, newspapers, on the Internet, etc. General idea is to develop a belief that Hershey is well associated with all holidays (Lamb, Hair, & McDaniel, 2011). Special attention should be paid to seasonal packaging, as it is a way to make Hershey a symbol of a particular seasonal holiday and celebration. It should be noted that product placement is not only public relations strategies but also helps target preferable consumer groups, e.g. teenagers, women, and young adults by showing them in ads.

Nevertheless, introducing bright packaging, which includes detailed information about nutrition, is only acceptable for drawing attention to the product. Being transparent and mentioning facts about daily value and added sugars can become a challenge because of the growing health consciousness and giving preference to natural and organic sweets, which are more healthy. This trend is established during seasonal holidays as well, as people choose to purchase healthy sweets made of nuts, yogurt, berries, or cereals (MarketLine, 2015). Because Hershey Kisses is a seasonal product, the company should react to the rising threat of natural and organic chocolate brands. Product placement mentioned above is among marketing strategies, which apply to maintain the company’s share and popularity. Also, it is recommended to target consumer group that usually gives preference to Hershey Kisses. For instance, as for now, Hershey targets children in schools (Nestle, 2013). Additional attention should be paid to young adults.

Finally, it is paramount to launch a massive and comprehensive campaign, which would center on the advantages of Hershey Kisses compared to competitors both traditional and natural chocolate producers. As for now, no artificial flavors are included in Hershey’s chocolate. This information should become the heart of the new campaign to point to the fact that the negative influence on the condition of human health is less profound. The idea is to teach people to seek a label, marking that a product is made better with natural flavors, e.g. ‘100% natural and caring for your health’ or any other similar text. Still, the primary concern is the amount of added sugars because they lead to diabetes and obesity. To address this problem, it is imperative to point to the fact that one candy a day is not what causes diabetes. So, it is unnecessary to stop buying Hershey Kisses.

To sum up, product placement, designing seasonal packaging, introducing labels, and further targeting or consumers are the strategies, which are best applicable to addressing the challenge of the new FDA legislation and the rising threat of being outperformed by natural and organic chocolate producers. And Hershey Kisses’ current market positions and financial conditions are appropriate for launching and supporting them.

Implementing Experiential Marketing in Promotion of Chocolate Brands During Halloween

Experiential marketing is a relatively new approach to marketing. It is opposite to traditional marketing, which is based on the assumption that a consumer chooses a product or service that maximizes benefits compared to identical ones or substitutes. It means that the foundation of the traditional approach is the belief that all decisions are rational and well thought. In some cases, consumers give preference to a particular product or service provider because of emotional connection or because they are better advertised (Experiential marketing, 2013). Still, these are the determinants of traditional marketing. It is still widely used because of its effectiveness and commonality.

However, due to the evolution of an ordinary consumer and turning into a smart consumer, it is paramount to modify this approach and introduce new strategies. The modern technique is referred to as experiential marketing. It is based on both emotions and rationality of consumers’ decisions. The primary idea is that people give preference to those goods and services, which are closely related to their previous experience of consumption (Schmidt, 2011). It means that the role of feelings and emotions is more significant than in the case of traditional marketing, and the central objective of a manufacturer is to create memories and positive experiences connected to their goods (Zhang, 2012).

Experiential marketing is a combination of numerous strategies. First of all, there are communications strategies, i.e. sales promotion by public relations, advertising, and issuing annual reports so that people are informed of companies’ progress and introduced innovations. Moreover, there are verbal and visual techniques, which refer to various verbal and visual messages such as labels, logos, signs, and other symbols that represent a manufacturer.

Another strategy is product presence. It centers on the packaging and other physical attributes of an offered product. Furthermore, co-branding is also a technique used by experiential marketers. This approach is based on different arrangements and agreements with other manufacturers or investors to increase production or improve performance. Also, people associated with a company such as salespeople or representatives are a part of experiential marketing. Finally, significant attention is paid to websites and electronic media. The idea is to include not only detailed information about a proposed product or service but also make it attractive and entertaining (Experiential marketing, 2013; Schmidt, 2011).

Experiential marketing applies to all spheres of business activities and products, and the confectionery industry is not an exception. However, before recommending effective strategies, it is imperative to highlight the fact that a productive technique is one that entertains consumers but, at the same time, educates them and appeals to their emotions (Schmidt, 2011). It means that people give preference to those manufacturers, which recognizes the effectiveness of entertainment and gaining new knowledge.

Keeping these ideas in mind, it becomes easier to find ways to implement experiential marketing in the promotion of chocolate brands during Halloween. The proposed approach is a comprehensive plan, incorporating most of the strategies mentioned above. The objective of this marketing mix is to boost seasonal sales and improve the financial performance of chocolate producers. First of all, it is essential to focus on product presence, i.e. physical attributes of chocolate. There are two aspects to this approach. First, it is recommended to design the seasonal packaging of a chocolate bar. For instance, drawing some funny monsters or pumpkins is applicable for hinting at the mood of Halloween.

The second aspect of the strategy is to add new flavors or stuffing of chocolate. As the traditional product is pumpkin, introducing a limited series of Halloween chocolates is advisable. The foundation of this approach is adding either pumpkin flavor to bars and candies or seeds both sweet and salted. The idea is to create a special filling related to this seasonal holiday so that consumers are fond of it and desire to purchase it during the next seasons. Redesigning packaging format is recommended for each season to point to the brand’s uniqueness and special approach to its consumers and producers. In addition to it, changing the color of packing is also acceptable. For example, adding more black and orange, as they are symbols of Halloween.

The next strategy is communication. It aims at targeting consumers by making attractive commercials that depict happy people, eating brand’s chocolate. Moreover, the idea is to show happy children, who received these sweets as Halloween treats. Here, it is imperative to present candies and chocolate bars in seasonal packaging and as a part of the Halloween celebration. The goal is to turn a brand into a symbol of Halloween or at least point to the fact that there is no need for preparing homemade treats because there are industry-prepared goodies that are mod and appropriate, as they create the needed mood.

Furthermore, it is recommended to focus on visual and verbal techniques. Primary attention should be paid to texts of advertisements and signs on chocolate packaging. For instance, it is advisable to incorporate a symbol, which would point that offered sweets are a limited edition and available during the Halloween period only. A bat, ghost, skeleton, witch or black cat are all appropriate examples of symbols that can be used in a campaign because they are synonymous with this seasonal holiday. Mentioning ‘limited edition’ on a package is also helpful.

Finally, it is imperative to pay significant attention to websites and electronic media. First of all, a website should be redesigned during this seasonal holiday. For instance, adding Halloween music and changing colors to orange and black is an appropriate strategy for creating a needed mood. The website should provide detailed information on the limited edition chocolates, new flavors and stuffing, and other special offers. Moreover, because the objective of experiential marketing is not only to entertain but also to inform and educate, including some details about contents and nutritious value is recommended. Another option is to add short videos that show the process of production so that a consumer knows what chocolate or candy is made of and how it is made.

To sum up, experiential marketing is the best option for promoting chocolate brands during Halloween. The rationale for making this assumption is the fact that Halloween is a period of special mood and atmosphere just like experiential management appeals to emotions and feelings. Public relations strategies, communication, redesigning packaging, focusing on verbal and visual techniques, and adding a new section on the website or adapting landing page to the atmosphere of this seasonal holiday is a combination of strategies, which should be used by chocolate producers to boost seasonal sales and draw attention to the uniqueness of their brands.

References

Euromonitor International. (2016). Chocolate confectionery in the US. Web.

Experiential marketing. (2013). Troy, MI: Business News Publishing.

FDA. (n.d.). At a glance: Highlights of the final nutrition facts label. Web.

Ferrel, O. C., & Hartline, M. D. (2014). Marketing strategy: Text and cases. Mason, OH: Cengage.

Heneghan, K. (2015). Hershey debuts Kisses, milk chocolate bars without artificial flavors for the holidays. Web.

Lamb, C. W., Hair, J. F., & McDaniel, C. (2011). Essentials of marketing. Mason, OH: Cengage.

MarketLine. (2015). Chocolate confectionery in the United States. Web.

Nestle, M. (2013). Food politics: How the food industry influences nutrition and health. Berkeley, CA: University of California Press.

Pride, W. M., & Ferrell, O. C. (2016). Marketing 2016. Boston, MA: Cengage.

Schmidt, B. (2011). Experience marketing: Concepts, frameworks, and consumer insights. New York, NY: Now Publishers.

Wilson, P. K., & Hurst, W. J. (2015). Chocolate and health: Chemistry, nutrition and therapy. Cambridge, UK: Royal Society of Chemistry.

Zhang, Y. (2012). Future wireless networks and information systems. New York, NY: Springer.

Introduction

In order to be profitable in international business, it is vital for one to examine the micro and macro factors prevalent within a chosen business environment. This would help in anticipating challenges and in curving out a business strategy needed in order to succeed in that nation. The country chosen for this purpose is Singapore.

Justification of choice

Minimal barriers to entry

Singaporean Immigration laws are some of the most business friendly around the world. This would allow investors and businessmen in the chocolate business to enter the country easily and without major hurdles.

Expatriates often consider this as the best place to work and live in so it would be a great place to establish the manufacturing plant. Additionally, business regulations are not too tough in this country.

If one has to import a food product from the international environment, one would not be expected to pay import duties unless the product is alcoholic (Australian Government, 2010).

Such a policy is a big incentive for the proposed business because cocoa (an essential raw material in chocolate manufacture) will be sourced from the Caribbean so it is essential to select a country that will not impose heavy import duties on the same.

Most foreign investors in the country are not required to follow certain distribution channels once in Singapore. It is expected that manufacturers should have their own warehouses, cargoes and networks. This would ascertain that they can easily take the commodities to the consumers without overly dealing with other intermediaries.

Economic conditions

As stated earlier in the industry analysis, the best place to start a chocolate business would be one which has a high GDP and high prospects for economic growth in the future.

Currently, Singapore is ranked third by the International monetary Fund’s 2010 economic index. It is ranked 4^th by the CIA word factbook and is position 5 by the World Bank in terms of its GDP.

Therefore, this would be an ideal society for the proposed chocolate business because any country’s GDP is indicative of its purchasing power (CIA, 2011).

Chocolate is a luxury item that may not be easily purchased by poorer nations. Singapore has 0% of its population living below the poverty line and over 90% of all Singaporeans live in urban areas. Consequently, their economic conditions illustrate that they would easily buy the product (World Economic Forum, 2011).

Additionally, Singapore also boasts of an immensely successful free market economy and is recognised as the least bureaucratic nation to do business in South East Asia. This has been made possible by the low instances of corruption and the government enabled programs that have been instated in order to prevent or capture the vice before it gets out of hand.

Its Ministry of trade and Industry has contributed towards these indicators by taking charge of economic growth, developing industries and by creating the right environment for fostering entrepreneurship.

Furthermore, the country has set up a Standards Productivity and Innovation board (SPIB) to accredit and develop standards for businesses while at the same time help them to reach markets and compete effectively internationally.

In fact, transparency in Singapore is taken so seriously that government tenders and quotations are posted publically at an ebusiness portal. Such initiatives indicate how straight forward and fair business practices are. Singapore also has a Corrupt Practices Investigation Bureau which was formed in order to ensure that the business sector is corruption free.

It appears these institutions are doing their jobs very well because international rankings illustrate that Singapore is the fifth least corrupt nation and the first in Asia. Naturally, such a country would minimise the difficulties that an overseas manufacturer would have if one was trying to establish oneself in such a country.

Since Singapore has set up itself as one of the leading IT hubs in the region then it would be easier for this chocolate manufacturing company to register and get licenses there. That would greatly minimise resources and time wastage as is the case with other economies in the region.

Infrastructural conditions in the country are great. The government has built a vast transportation and road network, airline hubs and strong telecommunication facilities. All these factors indicate that the proposed company will be in a position to import raw materials easily owing to these airline hubs.

These materials would easily reach the point of manufacture because of the favourable transport and communication networks. Since some of the ingredients in chocolate are perishable then it would be best to move that produce as quickly as possible and this is very achievable in Singapore.

Most commodity prices in Singapore are relatively stable and this would be advantageous to the proposed business because it will be possible to plan for the future as well as make strategic plans or do business forecasts based on past performances.

In terms of the industrial sector, Singapore is known for its production of chemicals, rubber, processed foods and petroleum refining. This industry accounts for 25% of the entire GDP and thus places the country as 3^rd in the world (CIA, 2011).

It would be ideal to set up a production plant in Singapore because the technological and equipment advances needed in the chocolate industry can be easily located or found there.

The country’s strong history in industrial manufacture is indicative of the fact that all the processes needed in order to make industries succeed are already in place and they are likely to do well in the future.

The presence of about seven thousand multinational corporations in Singapore testifies to the feasibility of bringing in foreign investments into this nation (Dycke, 1997). Besides, Singapore’s products are associated with excellence so it would be likely that if the chocolates were produced in that nation then the world would respect them since they are synonymous with quality.

It should be noted that the chocolate industry depends more on availability of advanced technology rather than cheap labour. When compared to other Asian economies like China and Vietnam, labour costs in this country are relatively high.

One would therefore find it difficult to minimise production if one was dependent on this component. However, because chocolate manufacture is not heavily reliant on cheap labour then it would still be alright to do business there.

It was also explained earlier that innovation and creation of new chocolate recipes will be vital to the success of any chocolate business in the industry. A survey carried out by Boston Consultancy group found that Singapore was the top most innovative nation of the world.

They focused on 110 countries and came to that conclusion after intense analysis. This innovative culture will work well for the chocolate industry because it will give the company a competitive edge and will also ensure that all the products put forward are ahead of competitors in the market.

Food and confectionary production is regulated through the food and hygiene safety standards. Any imported foods are normally taken through a rigorous process authorised and implemented by the Food advisory committee.

It is only this group which will allow the distribution of goods to manufacturers. Consequently, those standards will ensure that the chocolate manufacturer only accesses clean and safe milk for use in its processes. This will keep the taste of the product consistent and it will also protect consumers from diseases.

Market features

Singaporeans operate under the principle of “Kiasu”. This loosely translates to ‘never accepting defeat’. In Singapore, citizens have a material culture which causes most people to work hard in order to purchase more.

These qualities are essential for products such as chocolate because they denote some form of indulgence which is often possible when the concerned consumer feels as though he or she deserves that particular treat. Chocolates often do well in cosmopolitan cultures and this country is one such society.

Most areas have elaborate shopping malls, resorts and large supermarkets (Krummel et. al., 1997). Chocolates are best sold near the counter in retail chains so as to increase impulse buying or to draw in certain consumers. In order for the proposed business to do well then it should be set up in a country that is rich in such stalls.

That would increase the rate of product movement and thus boost sales of the commodities nationally. Previously, the country was known for its smaller traders but now the population is illustrating a preference for supermarkets because they are considered a lot cleaner and synonymous with high quality products.

Nonetheless, not all small traders have been eradicated; they still sell confectionaries and food items like chocolate and can be crucial components of the distribution system. These small traders mirror some aspects in supermarkets like displaying sweet and fast moving products like chocolate at the front.

The proposed company can advise such traders to exhibit their items near their windows so that customers can be easily attracted to them.

About 70% of all households utilise broadband thus illustrating that Information technology infrastructure is quite strong in Singapore.

Since e-commerce would be a great way to save on distribution and marketing expenses of the chocolate industry as stated in the previous industry analysis then this country would be great. The products can be made and sold to Singaporeans through a relatively cheap method which connects a vast number of citizens.

The country also has very complex distribution channels stemming from its historical preferences. Most people were private traders who would get merchandise from different parts of the world and sell them to specific target markets.

Essentially, this implies that the distribution channels are not as straight forward. While some people may look at such a scenario as a problem, it is possible to tap into that missing component in order to have a marketing advantage. The concerned company can set up its own distribution channel which would be run efficiently and professionally.

Marketing and promotional concepts in this country are crucial in the success of new players. The chocolate manufacturer can start with a very strong and captivating marketing campaign and then follow this up with frequent reminders about the brand so that consumers can keep remembering the product.

Unlike other western nations like the US, Singapore is not saturated with marketing battles. The population would still notice a campaign involving a certain new product and would actually respond well to it at all levels.

Another important demographic factor that had been cited in the industry analysis concerning the chocolate industry was prevalence of a young population. It was explained that older members are more concerned about their health and would not want to purchase a product that was risky to their health.

The world CIA factbook shows that the average age in this country is 41(CIA, 2011). In other words, there is an ageing population.

However, this issue might not be such a disadvantage for the proposed chocolate company because unlike western states, most citizens in Singapore are not as weight conscious. Furthermore, the younger population is quite aggressive and would still provide a ready market for the commodities.

Another issue that may be considered as a barrier in this nation is its relatively small population size. There are about four million people in the country thus placing Singapore as the 117^th most populated nation in the world (CIA, 2011).

The lack of a large population size is not necessarily a problem for the chocolate manufacturer because one only has to select the right marketing strategy. In certain circumstances, chocolate may be sold as a niche product while in others one can select the mass market.

If the population is affluent then chocolate would not be considered as an unaffordable or unnecessary treat. If a mass market approach is used then almost all members of the population can be targeted for this campaign and this would ensure high returns.

In fact, it is better for a country to have a small population that can purchase the product rather than have a large one with only few people who can buy it. If there is a trade off between population size and spending power then spending power would definitely come first.

Conclusion

Singapore was chosen as the ideal country for the proposed business because it has; minimal barriers to trade, a strong FDI and economic environment and has the right social cultural mix.

Singapore does not impose import duties on food items and neither does it has strong immigration laws thus implying that it has minimal barriers to trade; a foreign investor would not encounter too many obstacles during entry and exit of goods and items into the country.

The country has a strong FDI and economic environment because it the third richest nation of the world. This means that consumers have high purchasing power and would provide a ready market for chocolate. The area is not bureaucratic and has very low corruption.

Transparency is always a good indicator of how favourable a country is for international business hence this proposed business. Infrastructural strength is yet another economic indicator of the feasibility of this country for chocolate manufacture since perishable raw materials like milk need fast and efficient transport systems.

Prices are immensely stable in this country and technological development favours a technologically dependent industry like chocolate manufacture.

Social cultural factors such as prevalence of broadband internet, the materialism culture and cosmopolitanism will contribute towards the purchase of chocolates once manufactured in this country. All these factors will contribute towards a successful chocolate manufacturing venture in Singapore.

The country meets almost all micro and macro industrial needs. Its shortcomings like small population size can be easily overcome through a sound marketing and strategic plan.

References

Australian Government (2010). Food and beverage to Singapore: Trends and opportunities Web. Australian Trade commission website. Available from https://www.austrade.gov.au/ .

CIA (2011). The World factbook: Singapore [online]. CIA website. Available from https://www.cia.gov/index.html .

Dycke, A. (1997). Country Analysis: a framework to identify and evaluate the national business environment. Harvard: Harvard Business review.

Krummel, D., Apgar, J., Seligson, F. (1994). Patterns of chocolate consumption.

American Journal of clinical Nutrition, 60(7), 1060-1064.

World Economic Forum (2011). Global competitiveness. Global competiveness report 2010-2011, 3 June.

Product

Haigh’s Chocolates has wide varieties of milk and dark chocolate products it can offer in the US market. The company offers these products in different quantities, quality, and packages. Consumers normally take packed or consume products in Haigh’s Chocolates branded packaging.

This is one method the company can use to attract its potential customers in the US. It knows that packaging communicates to all customers consuming its chocolate products. Thus, packaging of chocolate products must emphasize Haigh’s Chocolates brands in the US markets. It has to appeal to customers within the shortest time possible. Products packaging provides convenience to customers who want takeaways, send gifts, or just consume them on the go.

Customers may buy products over and over again because of packaging. Over the years, Haigh’s Chocolates has strived to improve its brands of milk and dark chocolate products for convenience, and for the comfort of its customers. Haigh’s Chocolates also ensures that all the company’s products have the same tastes across all its outlets.

Haigh’s can guarantee all customers that the products will be of its standard always in all its different in the US and Australia with regard to their hand-made milk chocolate. It has learnt to give customers some level of comfort by providing quality milk and dark chocolates in all its outlets in the US.

This enables the US customers know what to expect if the product does not meet their standards. This is necessary in cases where Haigh’s is selling hand-made milk chocolate. This flexibility enables customers to trust Haigh’s to deliver quality products always (Kotler, Wong, Saunders and Armstrong, 2005).

The US chocolate industry is competitive because of many players in the field. However, Haigh’s Chocolates does not need to modify its products in the US. Instead, the company can improve its quality of services in the target market. It is the service delivery that will differentiate it from the rest. The company should also introduce online purchase systems so that customers do not have to visit its outlets to get products. This is because the US lifestyle is one of the busiest in the world as opposed to where the company currently operates.

Pricing

Haigh’s Chocolates marketing mix tends must consider the total marketing mix when setting prices. This is because the competitive chocolate industry of the US cannot allow for non-price strategy implementation. At the same time, the use of phone services to sale products and delivery arrangement affects the price, promotion and distribution of its products. These will strongly affect its pricing strategy in the US.

In all these marketing mix oriented towards pricing, Haigh’s Chocolates must remember that buyers rarely consider price alone. Instead, the products they seek must give them the best value (Brassington, and Pettitt, 2005). The company can set its prices higher than those of Australia because the US economy is advanced and customers have spending power.

Haigh’s Chocolates has learnt that it is selling to the high-end consumers in Australia. It will have to target the same customers in the US. Thus, the company pricing strategy and implementation is essential. Pricing implementation must consider the message it is sending to customers.

The US customers want value for their money. Price implementation must consider competition. The US chocolate industry is extremely competitive. Haigh’s Chocolates will not be the only chocolate retailer in most busy streets of the US. Thus, setting prices to beat competition is a strategy that the company must evaluate carefully before implementation.

In some cases, customers are sensitive to high prices, particularly in busy streets. This leads to price elasticity has Haigh’s Chocolates will try to introduce low cost chocolate products and combined items for low prices. However, some customers will pay more for the value of chocolate and services the company will offer than get it elsewhere at a relatively lower price. Pricing strategy and implementation will control all other elements of the marketing mix (Solomon, Marshall and Stuart, 2009).

Distribution

Haigh’s Chocolates must be selective in choosing its outlets in the US. The company will find busy streets, and places of high-end consumers among others. This strategy is necessary because it will ensure that Haigh’s Chocolates sells and distributes its products to the target market.

Distribution in such places will make the company conducts a lucrative business in already competitive industry. The company must also create the demands for its products. Implementation of distribution strategy must consider access to Haigh’s Chocolates target markets.

Haigh’s Chocolates has known the importance of choosing high-end places for its retail outlets, and so it must do the same in new target markets. Distribution defines the quality of services and products a company may offer. The company must implement a place strategy that matches its brand image, and pricing goals of its products. This explains why the company chooses high-end places and busy streets to attract consumers who are from work, and have no time to spend on queue.

When implementing a distribution strategy, Haigh’s Chocolates must take into account the price, products’ image, place, and customer perception of its products and services. It must also study the US market dynamics and stay ahead of the competition. This will mean appropriate choices of its retail outlets, and opening new channels.

The company must also ensure that distribution channels must catch the attention of customers and employees. There are certain consumers who may not buy some products from certain locations due to different factors such as the distance, insecurity, and pricing among others (Solomon, 2006).

Promotion

Incorporation of promotional strategy is necessary for the development of a business opportunity in a competitive industry. Companies rely on communication for building their brand images and creating awareness about their products. The company must consider the message and tools of communication in order to reach its target market.

Haigh’s Chocolates must consider how to implement its advertisement messages using different media so as to appeal to various segments of the market. It may also engage the use of direct market such as seeking for referrals, public relations, support community-based events, and working on its company brochures and its Website. (Berry and Wilson, 2001)

The company must cover every communication method used in marketing including social media. At the same time, these modes must appeal to various markets of chocolate consumers. These methods must drive traffics and also make people buy chocolate products from its outlets.

This is how to ensure that a company is using an Integrated Marketing Communication strategy and implementing it well. Since there are different channels of communication, the implementing body must ensure that messages are consistent, and remain the same in all media channels. Thus, Haigh’s Chocolates must manage different cases of misinformation if it as different sales forces and separate public relations, or a promotion group i.e. the message must remain the same.

Chocolate industry Outlook in the US

Haigh’s Chocolates has to struggle with well established chocolate companies in the US so as to establish its brand. According to AC Nielsen’s study, consumption of premium chocolate is growing rapidly at 24 percent in the year 2006. In 2007, there was an increment of 3.9 percent.

Given this scenario, companies like Mars Snackfood have taken the advantage by introducing new ranges of premium varieties of its Dove chocolate. Ghirardelli has also increased its varieties of dark chocolate with three new ones. The company based its approach on the growing popularity of dark chocolate brands due to its healthy benefits.

Ghirardelli sales have grown by 49 percent selling dark chocolates between 2003 and 2006 with sales reaching $ 1.2 billion. At the same time, there are also growths in other brands of chocolates. These are some of the competitions that Haigh’s Chocolates must implement its marketing mix while taking account of them.

These companies have diverse ranges of chocolates in healthy and luxury brands. They know that the US consumers want luxury and not average chocolates. In addition, the product must also be healthy and offer sophisticated recipes (Business Services Industry, 2008).

Conclusion

International marketing has grown as firms extended their operations outside their domestic markets. Haigh’s Chocolates must contend with issues of market entry strategy, develop, or adapt its marketing mix for the US market. This must involve thorough decision-making processes. These approaches must aim at identifying satisfying needs and wants of the US chocolate market.

The US chocolate industry has differential advantages and competitive edges in terms of a marketing mix; thus Haigh’s Chocolates must make its products and services attractive and competitive than other competitors’ products and services.

It can only achieve this through using marketing mix techniques. It must also ensure that its marketing mix approach aligns well with its strategic vision of expansion. It must enhance the achievement of long-term goals and help propel the company into the desired future growth in the international market (Johansson, 2009).

Reference List

Berry, T and Wilson, D 2001, On Target: The Book on Marketing Plans, Palo Alto Software Inc, Eugene, OR.

Brassington, F and Pettitt, S 2005, Essentials of Marketing, Pearson Education Limited, Essex.

Business Services Industry 2008, ‘The Premium Chocolate Category in the US Grew by 24% in 2006, Compared with Overall Growth in the Chocolate Market of 3.9%’, United States Food & Drink Report, Q1 2008 , pp. 1-2.

Johansson, J 2009, Global Marketing: Foreign Entry, Local Marketing, & Global Management, 5th ed, McGraw-Hill/Irwin, New York.

Kotler, P, Wong, V, Saunders, J and Armstrong, G 2005, Principles of Marketing, 4th ed, Pearson Education Limited, Essex.

Solomon, M 2006, Consumer Behavior, Prentice Hall Europe, New Jersey.

Solomon, M, Marshall, G, and Stuart E 2009, Marketing: Real People, Real Decisions: European Edition, Pearson Education Ltd, Boston, MA.