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Haigh’s Chocolate and Marketing Plan Assignment Help
Haigh’s chocolate is a high quality chocolate brand which is the oldest in Australia. It is widely used in the festive season and other occasions. It is one of the oldest family businesses in Australia. It specializes in hand made chocolates. The company is run by fourth generation now. It is looking forward to increase the awareness and popularity inter-state and increase the brand recognition and its demand.
It is a plan that is developed for preparing a marketing plan of action for the organisation. It includes the details of the product or the service, competitors and the target market.
SWOT analysis is a study conducted by an organisation to identify its strengths, weaknesses, opportunities and threats. The strengths and weaknesses are generally an internal factor of an organisation whereas opportunities and threats are an external factor i.e. driven by an external force (Wong, et. al., 2011).
Established - Haigh is already an established brand in production of handmade chocolates and is recognized by public.
Quality - It is the oldest chocolate maker in Australia, therefore people are already aware of its quality and taste and it delivers high quality products. It offers good quality chocolates.
Demand – The demand for confectionary is rising with a great pace.
Positive response – Customers have positive perception towards Haigh’s.
Tours – Provides tours to the public to visit the factory and witness the chocolate making process (Wong, et. al., 2011).
Consistency– Haigh’s is consistent with its quality and taste throughout.
Single flavour – Though the taste is good but it is offering single flavours and not diversifying its area of operation and experimenting with new flavours.
Non expansion - Haigh’s is unable to expand its business.
Certification – Certificate has not been issued to it by the Fair Trade Foundation (Westwood, 2013).
Gift vouchers – Expansion in terms of marking the product as gifts and rewards given as goodies on special occasions.
E-commerce – Online selling and delivering options are made available which is resulting in increasing the sales.
Development – Australian market is developing (Westwood, 2013).
Competition – Many new entrants have entered in the market with wide variants thus giving tough competition to haigh’s.
Branded chocolates - Branded chocolates are always preferred and the market of branded chocolates is expanding greatly.
Variety – Existing brands are coming up with new variants, different flavours and choices.
Health consciousness– A large proportion of the population is suffering from diabetes, obesity and cholesterol issues thus people are becoming more health conscious and resisting consumption of chocolates (Pastan, 2015).
The set of tactics an organisation uses for the marketing and promotion of its product or the brand. It helps in achieving the marketing objectives of an organisation.
The 4P’s of marketing mix are:-
A product is anything that is produced, created or manufactured which satisfies the needs of the target. It can be in either of the forms, tangible or intangible and can also be in the form of services (Pastan, 2015). The entrepreneur has to conduct an extensive survey on the product he is offering in the market about its demand, its availability in the market, competitors and on the life cycle of the product.
Certain questions must be answered for making the right type of product.
What does the customer expect from the product or the service?
How will the product or service used by the customer?
Where will the product or the service be used?
What are the core features in the product or service expected by the customer?
Does it have a fancy name?
What should be the name of the product?
In what sizes and colors should the product be made available?
Is any significant feature that has been left out?
Does the product has unnecessary and unwanted features?
Does the product has distinct feature from its substitutes?
Does the product looks attractive (Luke, 2013).
The price of a product is the next important component which is used in determining the price of a product. The price of the product should be set appropriately. It should neither be too high nor too low, as when the price is too low when compared to competitors customers tend to think the product is of low quality (Hawkes, 2013).
The questions to be considered to determine the price of the product are:-
How much did the product cost?
What value is perceived by the customers?
If decreasing price will increase the demand of the product?
Is the current price quoted properly?
There are various pricing strategies
Market penetration pricing - This strategy is used to capture market share for the product. It involves setting very low initial prices for the product to attract new customers. When this strategy is used for existing product it results in price war. This strategy is quite useful when the demand for the new product is too high and it is quite easy to copy the product or its substitutes are easily available (Hawkes, 2013). When relatively low price is set for the product, there are lesser chances of competitors entering the market. For implementing penetration pricing the supplier should be sure of ample production and supply of the product to meet the demand. For instance, Patanjali has introduced its products at a very low price in comparison to its competitors to make a place for itself in the market.
Neutral pricing - When the price of the product is set in accordance with the price that prevails in the market i.e. price is set taking into account the price set by the competitors. With this pricing strategy the company cannot make maximum profits.
Price Skimming - It is a strategy where price is set regardless of its competitors. The price that is set for the product is quite high. The demand for products under this category is inelastic which means the price is insensitive to change in income levels. For instance, Rado sets the price for its product quite high, irrespective of the competitors, such as Guess, Titian etc. It has a market of its own and does not compromise on its price (Friedman, 2012).
Marginal cost pricing - It involves marking the cost of a product in such a way that it is equal to the extra cost in producing the next unit of the product.
Psychological pricing - Pricing the product psychologically has a major impact on its pitching up its sales. For instance when the price of a product is set as $49.9 instead of $50, it will have a psychological impact on the minds of the customers and will tempt them to buy the product due to its decrease in price.
Keystone pricing- It is the pricing strategy where the retail price of the same product is double its wholesale price. It maximises profit but is generally not recommended (Meredith, 2016).
Cost-plus pricing - Under this strategy, the cost of the product is arrived at by adding the total cost of production, labour and all the other direct and indirect costs incurred and a mark-up percentage is added to it.
Predatory pricing - This strategy is used to drive out the competitors from the market. It is considered illegal in some countries.
Premium decoy pricing - The organisation sets price of one product higher in order to pitch up the sales of the other product.
Pay what you want- This is a strategy where the buyer pays the amount he wishes to pay. Sometimes this price can also be zero (Meredith, 2016).
It involves analysing the place where the product should be distributed. It focuses on the fact that the product should be easily made available to the target market.
It involves seeking answers to various questions
What market do the customers approach?
If online sales expansion is needed?
What ways the distribution strategy differ from the competitors?
How distribution in carried out?
Does the supplier need to attend fairs or exhibitions? (McDonald & Wilson, 2011)
Various distribution strategies are:-
Intensive distribution – it is a strategy through which the company sells its products at almost every possible store or place possible. The criteria is to make available the product in such a manner that wherever the customer goes he encounters the product and the product gains recognition. For instance, cold drinks are distributed under the intensive distribution system.
Franchising – Under franchising, rights are given by the franchiser to the franchisee, to use its brand name and sell its product or services. One time franchise fee is paid by the franchisee plus pre determined percentage as royalty. The benefits of this strategy is immediate name recognition. For instance, Mc Donalds outlets (McDonald & Wilson, 2011).
Exclusive distribution – Here, the seller and the retailer are the parties involved wherein, the seller gives exclusive rights to the retailer to sell the product within the geographical area. Most often, the supplier limits the supply of the product to the retailer as well. For instance, designer clothes are sold following the exclusive distribution strategy.
Selective distribution – It falls in between intensive and exclusive distribution. In this strategy the geographical area is covered by only a few retail outlets (Carr, 2011).
It is a very important tool as it is helpful in the recognition of a brand and pitching up the sales. Promotion of a product has various aspects.
Promotion of a product can be done by various modes.
Advertising – It covers paid modes like ads on tv, radio, newspapers and internet.
Public relations – These fall in the unpaid categories. Public relations can be established by spreading a word about the product or mouth publicity, press releases, conferences etc (Carr, 2011).
The answers to various questions must be obtained.
Identifying and analysing if it is the best time for selling the product?
Can the target market be reached using social media?
Is advertising through internet purposeful?
If the target market will be reached by opting for the planned advertising strategies? (Carr, 2011)
Marketing Plan - A marketing plan is a blueprint that is framed by the organisation which displays the marketing and advertising efforts to be undertaken by the organisation in the coming period. It includes details about the current marketing plan the company has undertaken, its policies, marketing mix and about the target market. It contains all the details regarding the product, the target market.
Marketing strategy – Marketing strategy is a strategy build by the organisation which helps the organisation to make optimum utilization of its resources and create best opportunities from the available resources (Carr, 2011).
Brand building– Brand building helps in creating the value of the product offered by the company for its customers.
The marketing strategy to increase the brand recognition of Haigh’s and to increase its sales level that can be employed are:-
Online promotion –The use of internet is increasing with a great pace. Hence online promotion strategy can be applied by Haigh’s to pitch up the sales of its chocolates and in its brand recognition as well.
Social media forum – The use of social media sites like face-book, Insta-gram and twitter is increasing day by day and has a very wide coverage. Thus Haigh can publicize its chocolates on the social sites (Carr, 2011).
Traditional methods – Employing traditional methods for advertising the product is very useful as newspapers and magazines have vast coverage and are widely used by public thus it is a significant tool in creating the brand value and expansion. Haigh should advertise its chocolates by advertising in the newspapers and magazines and mentioning its quality and traditional business as its USP.
Sponsor– Haigh’s can indulge in sponsoring its product at various events and charity functions. When any significant event is conducted at a place the Sponsors play a major role in funding of the event and are in the limelight for the event. It also results in network building as such events are often in limelight due to the presence of politicians and celebrities (DeFanti, 2015).
Display– The display of Haigh’s chocolates must be made predominant. It should be made available for sales at places where people pay a visit generally so that it may gain recognition from the public and ways can be opened for its expansion programs.
Referral codes– This is an innovative way for creating brand recognition these days. When a customer purchases Haigh’s chocolates he should be given referral codes and discounts on the next purchase which would result in spreading a word about the brand and building excitement on the next purchase among the buyers.
Local partnerships– Haigh’s can get into partnerships with the local vendors and departmental stores near occasions like valentine’s day, new years, Christmas and other occasions when the demand for chocolates is quite high as people distribute them as goodies on such occasions.
Car wraps– Haigh’s can also employ an innovative feature of car wrap for advertisement. It can get the wraps created in a way which is quite attractive to the eyes of the targets.
Freebies– Free stuff is always appreciated by people. Haigh’s can advertise its chocolates by putting its stickers on various items like, pens, scales, erases and other stuff and this can be distributed among kids on festivals or on Sundays when the mall is crowded (Luther, 2011).
Blog posts– Blogs can be created for creating awareness among people regarding the recognition of Haigh’s chocolates.
Slogans and Jingles– Attractive slogans and jingles can be created for Haigh’s promotion as attractive slogans and rhyming jingles have a lasting impact on people.
Short videos– Short videos can be created which can be played on sites that are widely used by the public.
Guest blogging– Haigh’s can once in a while employ guest blogging strategy where the blog which the guest posts will be shared and accessible to his entire follower base which will create the new target market and in the brand recognition as well (Luther, 2011).
Workshops– Small workshops can be organised by Haigh’s for chocolate making courses which will spread the awareness among people and more public will be drawn for the workshops which will help it gain recognition.
Exhibitions– Haigh’s can participate in various exhibitions and exhibition cum sale events where the cream target is drawn and the brand will gain recognition.
Occasions– The chocolates can be made in various shapes and attractive form taking into consideration the upcoming occasions. For instance, chocolates in rose shapes can be made at the time of valentine’s day, the shape of Santa Claus can be given to the chocolates during Christmas.
Haigh’s chocolate is a running chocolate industry in Australia. It is popular among people due to its great taste and packaging. Haigh’s Chocolate and Marketing Plan Assignment Help has covered the SWOT analysis and the determination of 4P’s of the marketing mix. The marketing strategies help increase sales and these strategies that can be further implemented for expansion and for pitching up the sales which are discussed in the entire scenario.
Carr, S. 2011, "Is a marketing plan necessary?", Cranio : the journal of craniomandibular practice, vol. 29, no. 2, pp. 164.
DeFanti, M. 2015, "Using the American Marketing Association Integrated Marketing Plan Competition to Enhance Students' Competitiveness", Competition Forum, vol. 13, no. 2, pp. 371.
Friedman, A. 2012, "AWI Sets Wake-Up Call, Freshens Marketing Plan", WWD, vol. 203, no. 126, pp. 8.
Hawkes, K. & Food New Zealand 2013, "First principles in developing a Marketing plan", Food New Zealand, vol. 13, no. 6, pp. 19.
Luke, K. 2013, "5 Steps to a New Marketing Plan", Journal of Financial Planning, vol. 26, no. 12, pp. 20.
Luther, W.M. 2011;2001;, The marketing plan : how to prepare and implement it, 4th;4;3rd; edn, American Management Association, New York, NY.
McDonald, M. & Wilson, H. 2011, Marketing Plans, Wiley.