Marketing Principles Ecosystem Services

Question: Discuss about the Marketing Principles for Ecosystem Services. Answer: Introduction Marketing plan is essential for every business organization. This particular study aims to develop a new marketing plan for Haighs Chocolate, which is a family owned chocolate manufacturing company in Australia. The business of the company is already expanded to different areas in the world. The company is also the oldest family owned chocolate producer in the market of Australia and now the company is aiming to enhance its brand awareness so that it can perform better in the existing markets (Haighschocolates.com.au 2016). During this new marketing plan for Haighs Chocolate, the focus is made mainly on the identification of the internal situation of the company and its competitive advantage. In order to identify the internal situation of the company, the SWOT analysis is done. At the same time, the study also concentrates on developing the strategies for the 4Ps of marketing. In addition, the target market and the positioning strategies of the company are also developed for the business expansion of the company. Analysis and Evaluation of brand (SWOT analysis) Strengths Good financial strengths Friendly working environment within the company High product quality Proper internal infrastructure (Haighschocolates.com.au 2016) Weaknesses Less employee strength in marketing department Lack of proper marketing strategies Complicated distribution channel Opportunities The demand for chocolate is always high in every country The raw materials for producing the chocolate is always available The growth opportunity is high Threats The competition in the international chocolate manufacturing industry is much high. Several large chocolate manufacturing companies are operating their business (Haighschocolates.com.au 2016). Table 1: SWOT analysis for Haighs Chocolate (Source: Haighschocolates.com.au 2016) The above SWOT table is showing that the company is having enough strength to enhance the market awareness in the existing markets. As the company has strong financial backup, it will be not tough for the company investing money in new promotional or marketing strategies (Bull et al. 2016). The friendly working environment will help the company getting support from the employees end. However, fewer employees in the marketing department and lack of proper marketing strategies may create big problem during the market expansion. On the other side, as the company will face the threat of high market competition, the management of the company must concentrate on its strengths and opportunities (Von Kodolitsch et al. 2015). The growth opportunities must be utilized for further business development of the company. Competitive Advantage and Positioning A company must have the capacity of achieving the competitive advantage while increasing the current business volume of a company. Margulis, and Margulis, QuikBreak (2015) has defined competitive advantage as the situation of a company in which the company can take a superior position in the market or within the industry. The competitive advantage of a company can be understood by identifying the unique selling point of the company (Suri 2016). In case of Haighs Chocolate, the competitive advantage or unique selling point of the company is in its product quality. The company produces the single origin handmade chocolates, which are not easily available at everywhere (West, Ford and Ibrahim 2015). Moreover, the company uses high quality raw materials like, cocoa powder, cocoa butter, sugar, coconut oil and other dry ingredients. All of the ingredients used by the company are supplied by the best suppliers at the place. Apart from these, the company is also going to launch sugar free chocolates, which will help the company attracting the diabetic patients also, who cannot eat chocolates due to the restrictions of having sugar (Saeidi et al. 2015). At the same time, as the company has good internal infrastructure and good communication and bonding among the employees, it will also help the company grabbing the attention of the people or customers by providing proper service to the existing and new customers. On the other side, in order to enhance the market awareness, the company will also take care of the price of the products, so that it can enhance its competitive advantage (David and David 2016). Marketing objectives The company prepares the marketing plan or takes the marketing strategies so that it can create awareness about its products in the market (Schlegelmilch 2016). Along with this, the companies also want to increase its sales volume as well as profitability with the help of their marketing plan and strategies (Faratin, and Shi, Robust Links 2015). In case of Haighs Chocolate, the primary objectives of marketing are to create strong product awareness in the new as well as existing markets and to enhance the brand recognition of the company (Haighschocolates.com.au 2016). As the company is going to enhance the brand awareness in the new and existing markets, it is obvious that the people at those places are not fully aware of the brand of Haighs Chocolate. Therefore, it is the first objective to create strong awareness by focusing the USP or the quality of the product. Apart from that, this marketing has another objective of increasing the financial strength of the company (Haighschocol ates.com.au 2016). Target market Identifying the proper target market is very important while expanding the business or brand awareness of any company. In the words of Huet et al. (2015), a company can identify its proper target market, by segmenting the overall market on the basis of some factors. These factors are demographic factors, psychographic factors and geographic factors. In order to increase the brand awareness, the management of Haighs Chocolate must segment its market based on these three factors (Kim et al. 2016). The segmentation and target market of the company are stated below: Demographic segmentation and targeting It will be better for Haighs Chocolate, if it does the demographic segmentation on the basis of the income level and gender of the people (Healy 2015). The company will require dividing the market into three segments based on the income level of the people. The segments will be - high income group, middle income group and low income group. After segregating the market into three segments, the company must target the high income group and middle income group. This is because the products of the company will not be priced at low level and so it will be better for the company if it target the high level and middle level income group (David and David 2016). On the basis of the gender, the company will divide the market into two segments male and female. The company will target both of the two segments because both male customers and female customers like to have chocolate in any festival or at any time (Haighschocolates.com.au 2016). Geographic segmentation and targeting In case of the market segmentation based on the geographic factors, the company will segment the market as per the geographic boundaries of different countries. The company will segment the market in to three geographic areas Eastern zone, middle-east zone and western zone. The company will mainly target the people in the eastern zone and western zone because in this will help the company to differentiate between the tastes and preferences of the people, so that the company can produce the specified products (JO et al. 2016). Psychographic segmentation and targeting This is another category considering which the company can identify its target market. The company will consider the personality of the people in order to do the psychographic market segmentation. The company will segment the market into two segments people with polite personality and people with aggressive personality. The company will target the people with polite personality because in surveys, the company has identified that the people with polite personality prefer to eat chocolate in any occasion (Haighschocolates.com.au 2016). Product Strategy: As discussed by Brooksbank (2013) for obtaining a successful marketing mix and making the brand popular among the target customers, it is important for the companies to design the product in such a way that attracts the target customers and fulfils their demand. The company can opt for developing a new product range for the Christmas. The Christmas season is highly profitable for the chocolate companies and people are likely to gift various kinds of chocolates to their kith and keen. Hence, the company will develop a milk chocolate range for the customers, as it is the most popular chocolate kind worldwide. As the company has chosen its target customers from all age group, this range will include a line of sugar-free chocolates for aged and customers with health concerns. As opined by Giddens (2015) branding of a product is crucial for creating market awareness. As the consulting company has the objective of creating brand awareness, launching a product in Christmas will be a great idea, as it is the season of gifting chocolates. For branding the company can provide a wish note with every box of the product, which will be handwritten by the maker. The company can also opt for an offer of engraving the name of the receiver and giver on the bo x, with the phrase Haighs Chocolate is here to deliver a wish note from X to Y. Product Design: The name of the product will be Whish Choc Note. The product will be a standard model of Santa Claus with the weight of 40 g. The length and breadth will be (4x.5) inches. The sugar free line of product will also be of the same standard. Now, for the packaging, the company must go for a consumer packaging strategy (Verghese et al. 2012). As discussed by ST Wang (2013) the objectives of packaging includes the cause of presentation, protection, preservation, economy and convenience. Now, for attracting the customers to the product, the packet will be of red and white colour as it is a charismas product range. The product will be launched in a round shaped tin box, which will be covered with a paper cover from its interior. The radius of the box will be 2.2 inches and its height will be .7 inches. As discussed by Kotler et al. (2015) one of the major objectives packaging protection and preservation of the product. The tin box will be helpful in protecting the product from any outward damage. The product will be wrapped with foil and inner coat of the box will be helpful in preserving the product from humidity or any bacterial attack. Convenience is typically important factor in product packaging. Here, the small size of the product will be helpful in handing it with ease. The cost of packaging will be a bit high, however, depending on the product image and the pricing strategy, the company has to follow this packaging idea for successfully attract its customers. Pricing Strategy: As opined by Brooksbank (2013) a pragmatic pricing of a product is crucial for a brands success in the market. While opting for a price of a product, the companies need to consider the competition, distribution, products position in the PLC, demand pattern of the product and the objectives of the marketer. Figure 1: PLC for Whish Choc Note (Source: Created by the author) Here, the company can choose a premium pricing policy. As the company is following the strategy of providing handmade and single origin chocolates, the company carries much higher cost than other mass production organizations. Moreover, the packaging and branding will cost the company a much higher range of production cost than its competitors. Hence, it is important for the company to opt for a higher range of pricing strategy (Banfi et al. 2013). However, as the company has chosen the objective of creating brand awareness, it is important to hold the price within a certain limit. As mentioned by Kotler et al. (2015) in the introduction stage of a product, the companies generally face the issues like, high cost per unit and low sales, hence, the organization can opt for a skimming pricing strategy. As the company needs to create brand awareness, it is important to set a relatively high price for the product at its innovation and lowering it with its growth in the PLC. In the introdu ction phase, the company can opt for a higher range of price for each of the product, which can be declined in the maturity stage. Moreover, the company needs to create a different price range for the sugar free line, as it will create different cost per unit. Here, the company will follow the strategy of price differentiation (Brooksbank 2013). Place Strategy: As mentioned by Brooksbank (2013) distribution channel is significantly important for the organizations as it approaches the customers directly and this is the way from where the customers can grab the product. However, as mentioned by Kotler et al. (2015) in the modern world of business, the companies need to make themselves available in the web portals. As the socio-cultural pattern of the international market has taken a high pace, the companies need to be more approachable and available to its target customers. The company already has a website which provides the convenience of online shopping of the company products (Home page - Haigh's Chocolates 2016). Here, Haighs Chocolate needs to introduce this product line into its Christmas collection and Gift collection. Moreover, for approaching higher number of customers the company can make the product available in the online shopping portals like Amazon.com, eBay.com and other popular platforms. On the other hand, the company needs to make the product offerings in the high-end gift shops and confectioneries. As in Christmas people tends to buy gifts and cakes, availability of the product in those stores will influence the buyers to make a purchasing decision in favour of the brand. As the company has targeted the population of all age group, availability in the physical stores is required for being available to the aged customers (Brooksbank 2013). Promotion strategy In order to promote its product in a better way, Haighs Chocolate will use advertisement as the promotional tool. The company will promote its products with the help of three types of advertisements magazine advertisement, television advertisement and social media advertisement. The company will use advertisement as the promotional tool because with the help of advertisements, the company can aware highest number of people within minimum time (Maheshwari, Seth, and Gupta 2015). However, the cost of the company will be high in case of promoting the products through advertisement. As the company has strong financial backup, it will not be very problematic for the company. The advertisement through magazine will help the company to create attention in the minds of people for many days. On the other side, with the help of television advertisements, the company can create awareness regularly (Marian 2016). The social media advertisements will also aware the people, who are not fond of watching television or reading magazine. Apart from advertisement, the company can also use the sales promotion strategies to promote its products. As the strategy of sales promotion, the company can provide free gifts with the large packets of chocolates. Conclusion In this study, it has been identified that Haighs Chocolate is the oldest handmade chocolate manufacturing company in Australia. The company is currently trying to enhance the brand awareness in the existing market of it. The company has enough strength that it can utilize to reduce its weaknesses and threats. The USP of the company is its product quality. The company will target its market on the basis of the demographic, psychographic and geographic segmentations. The company is also planning to launch its new sugar free chocolate in the market. It will emphasize on premium pricing strategy and choose the advertisement and sales promotion strategies to promote its products in the market. Reference list: Banfi, F., Bhandari, R., Gordon, J. and Umblijs, A., 2013. Marketing Mix Modeling. Retail Marketing and Branding: A Definitive Guide to Maximizing ROI, Second Edition, pp.161-177. Brooksbank, R.W., 2013. Successful marketing practice: a literature review and checklist for marketing practitioners. International Journal of Wine Marketing. Bull, J.W., Jobstvogt, N., Bhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C., Lambini, C.K., Rawlins, M., Baral, H., Zhringer, J. and Carter-Silk, E., 2016. Strengths, weaknesses, opportunities and threats: A SWOT analysis of the ecosystem services framework.Ecosystem Services,17, pp.99-111. David, F. and David, F.R., 2016. Strategic Management: A Competitive Advantage Approach, Concepts and Cases. Faratin, P. and Shi, C., Robust Links, LLC, 2015.Software service infrastructure indexing user demographics, interests and expertise. U.S. Patent 9,092,732. Giddens, N., 2015. Building your brand. Ag Decision Maker, 6(3), p.3. Haighschocolates.com.au. 2016. Home page - Haigh's Chocolates. [online] Haighschocolates.com.au. Available at: https://www.haighschocolates.com.au/ [Accessed 9 Dec. 2016]. Healy, N.E., 2015.Consumer Perceptions of Cross Promotional Strategies: Exploratory Research in the Music and Fashion Industries(Doctoral dissertation, California Polytechnic State University, San Luis Obispo). Huet, A.L., Frail, C.K., Lake, L.M. and Snyder, M.E., 2015. Impact of passive and active promotional strategies on patient acceptance of medication therapy management services.Journal of the American Pharmacists Association,55(2), pp.178-181. JO, S.K., Lea, J.H., Park, D.M., Hwang, K.I., Ryu, W. and Jung, I.G., Electronics, Telecommunications Research Institute and Samsung Electronics Co., Ltd., 2016.Apparatus for analyzing advertisement effect and method of analyzing advertisement effect. U.S. Patent Application 15/070,595. Kim, J., Kim, P.B., Kim, J.E. and Magnini, V.P., 2016. Application of construal-level theory to promotional strategies in the hotel industry.Journal of Travel Research,55(3), pp.340-352. Kotler, P., Burton, S., Deans, K., Brown, L. and Armstrong, G., 2015. Marketing. Pearson Higher Education AU. Maheshwari, P., Seth, N. and Gupta, A.K., 2015. Advertisement Effectiveness for Print Media: A Conceptual Model.World Academy of Science, Engineering and Technology, International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering,9(2), pp.701-706. Margulis, O.P. and Margulis, G.A., QuikBreak, 2015.Content targeting to particular individuals based on demographic and psychographic segmentations, utilizing the computer-implemented methods and specifically programmed computer systems for performing thereof. U.S. Patent 9,015,151. Marian, M.M.N., 2016. Evaluation of the effect of quality of services on customer satisfaction and mouth advertisement.International Journal of Humanities and Cultural Studies (IJHCS)? ISSN 2356-5926,1(1), pp.1567-1585. Saeidi, S.P., Sofian, S., Saeidi, P., Saeidi, S.P. and Saaeidi, S.A., 2015. How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction.Journal of Business Research,68(2), pp.341-350. Schlegelmilch, B.B., 2016. Segmenting Targeting and Positioning in Global Markets. InGlobal Marketing Strategy(pp. 63-82). Springer International Publishing. ST Wang, E., 2013. The influence of visual packaging design on perceived food product quality, value, and brand preference. International Journal of Retail Distribution Management, 41(10), pp.805-816. Suri, R., 2016.It's about time: the competitive advantage of quick response manufacturing. CRC Press. Verghese, K., Lewis, H. and Fitzpatrick, L., 2012. Packaging for sustainability. Springer Science Business Media. Von Kodolitsch, Y., Bernhardt, A.M., Robinson, P.N., Klbel, T., Reichenspurner, H., Debus, S. and Detter, C., 2015. Analysis of strengths, weaknesses, opportunities, and threats as a tool for translating evidence into Individualized medical strategies (I-SWOT).AORTA Journal,3(3), p.98. West, D., Ford, J. and Ibrahim, E., 2015.Strategic marketing: creating competitive advantage. Oxford University Press.