Haigh’s Chocolates
In recent years, the role of marketing has grown substantially between modern organisations, and they use marketing principles to improve the effectiveness of their strategy and gain a competitive advantage. An effective marketing strategy is developed by analysing strengths and weaknesses of a firm and successfully incorporating them into the marketing strategy. Organisations can use marketing analysis as a tool to measure and evaluate dynamism in the market in which they operate that unveils significant information about the environment. The information allows corporations to improve their current operations and it also creates future business opportunities for the firm.
This report will focus on creating a marketing plan for ‘Haigh’s Chocolates’ by applying marketing theories that analyse its strengths, weaknesses and marketing mix in order to measure its marketing opportunities. Haigh’s Chocolates is an Adelaide-based confectionery firm which was founded in 1915 by Alfred E. Haigh; the corporation manufactures high-quality premium chocolates for its customers (Haighschocalates, 2017). The report will make a marketing plan of Haigh’s Chocolates for Valentine’s Day and create a poster for the introduction of a new product called “Chocolate Rose Bouquet”. Further, the report will evaluate various recommendations and problems face by ‘Haigh’s Chocolates’ while developing and implementing its marketing plan.
Figure 1: Haigh’s Chocolates Logo
(Source: Haighschocolates, 2017)
Haigh’s Chocolates was founded in 1915 as an Australian confectionery manufacturing firm, and it offers high-quality chocolate to its customers. The corporation is a private enterprise which operates in confectionery industry; head office of the firm is situated in Adelaide, Australia. The company is the oldest chocolate maker situated in Australia; Alfred E. Haigh founded the firm, and it is owned by Haigh family (Waybackmachine, 2017). The enterprise is famous for its passion towards manufacturing of chocolate, and its vision is to provide a marvellous chocolate experience to its customers. The corporation is compassionate and thoughtful towards its workers, investors, vendors, consumers, shareholders and local communities in which they serve; the trust and faith of people in company’s products make them successful in the industry. The firms operate in 14 different locations in Australia from which six are situated in Melbourne, six in Adelaide and two in Sydney.
Primarily, the customers of the firm buy its products to give them as a gift to others because of their premium quality. The corporation uses high-quality premium ingredients to make its products and offer them in beautiful packaging; therefore, the products are high prices. The customers like the taste of company’s products but mostly they use them as a gift for special occasions (Hogan, 2017). The sales are high during festive seasons because the number of people who buy gifts is high and Haigh’s Chocolates offers seasonal packaging which attracts customers towards its products.
Customer Analysis
Haigh’s Chocolates segment is based on premium products which they offered to mid-level to high-level income individuals who prefer handmade products over other alternatives. The geographic segmentation of the company is situated in major cities of Australia in which corporation offer its products such as Melbourne, Sydney, and Adelaide. The main target of company is young people who are willing to spend their money on premium quality gifts on special occasions and who prefer to buy handmade products rather than alternatives. The mid-level and high-level income individuals who prefer to buy premium chocolate for consumption and gifting purposes. The positioning of the firm is based on its more than 100 years old trust of premium quality. The corporation uses high quality imported cocoa beans in its products and made them by the handmade process. The packaging of the firm is premium and beautiful which makes them an excellent choice for gifting purposes.
Haigh’s Chocolates is more than 100 years old, and they are known as a premium brand among people because it uses high quality imported ingredients and handmade process to make its products. The corporation allows people to visit its factory and witness its manufacturing procedure. The company has gained a competitive advantage because of its trustful brand image between people, and they prefer its taste (Stringer, 2015). The products of the firm are good choice for gifting purposes since they are premium quality and beautifully packaged.
For Valentine’s Day, Haigh’s Chocolates decided to launch a new product in the market for its customers to provide them gift option. People prefer to buy chocolates and flowers for their loved ones on Valentine’s Day. Therefore, Haigh’s Chocolates can design “chocolate rose bouquet” product which can be a perfect gift for Valentine’s Day since it includes features of both flower and chocolate. The product will be offered in premium packaging to give it a premium feel. The corporation can also provide 20 percent Valentine’s Day discount on the product to encourage customers to buy the product.
Established brand – Haigh’s Chocolates is more than 100 years old, and it is an established brand in Australia. The brand has a positive image between people since it is recognised as a handmade premium chocolate manufacture.
Premium Quality – The enterprise is the oldest chocolate maker in Australia and people are aware of its premium quality products. The company use high-quality ingredients and make handmade chocolate for its customers, and they like its taste. The consumers of the firms are aware of premium taste and quality of the firm (Chan, Quach, Mensah, Sung, Cheung, & Wake, 2012).
High Market Demand – The demand for confectionary products are growing in the market with a great pace with the introduction of new products. The customers buy premium chocolates for their loved once on holidays, birthdays, festivals or special days such as Valentine’s Day, friendship day and others.
Positive Reputation – Haigh’s Chocolates has a positive reputation in the market because they manufacture premium products and maintain a healthy relationship with its stakeholders such as consumers, employees, suppliers, shareholders and many others. Bring a privately held corporation, Haigh’s Chocolates can easily handle and maintain its operations which removes the chances of disputes that allow it to maintain positive brand image (Chatswoodchasesydney, 2017).
Segmentation, Targeting, and Positioning
Public Tours – Haigh’s Chocolates allow the public to visit its factory and learn about its processes. People can witness the handmade chocolate making process which increases their trust in the company.
Lack of Creativity – Customers prefer the taste of Haigh’s Chocolate’s products, but they offer single flavour to its customers. The lack of diversity in the manufacturing process of chocolates stops the corporation from adding new flavour to its product line-up. The company did not experiment with new flavours and taste which narrow down its customer base.
Slow Expansion – Haigh’s Chocolates is more than 100 years old, but they failed to expand their business in Australia. The corporation only operates in 14 stores, and it did not operate outside Australia. The lack of expansion hinders the growth and profitability of the firm.
Inflexibility of Operation – Haigh’s Chocolates offer handmade premium chocolates to its customers, therefore, they manufacture at a slow pace than compared to its customer. The competitors of the firm also use modern technology into the production process, whereas, Haigh’s Chocolates focuses on handmade products.
Gift Offers – Haigh’s Chocolates can introduce new gift offers and rewards for its customers which encourage them to buy its premium products as a gift. People buy gifts for several occasions and special days, and special gift offer from the company can make their gift selection process easier. The company should introduce corporate gift vouchers to target enterprises.
E-commerce – Haigh’s Chocolates can improve its online shopping experience for customers by making the process easier for them which encourage them to shop online. The company should improve its delivery process by reducing the time of delivery and providing a larger range for delivery (Deloittedigital, 2017).
Expansion – The enterprise has the opportunity to increase its operations in Australia by opening new factories and stores which attract new customers. The company can also expand its operation outside Australia through online shopping facility.
High Competition – Haigh’s Chocolates face high competition in confectionery industry from its competitors such as Nestle, Cadbury, Mayfield Chocolates and many others. The entry of new confectionery corporations in the market also increases competition for the firm.
Health Awareness – People are becoming more aware of their health, and they avoid eating unhealthy food such as chocolate. The increasing rate of health awareness is a threat to company’s sales.
Variety of Products – New competitors are bringing new variety of their products by adding new ingredients and flavours, and they are a threat for Haigh’s Chocolates since it did not diversify its products.
- The main objective of the firm is to build awareness about its products between people.
- The company wants to increase its brand recognition in the confectionery industry.
- The firm wants to increase its sales during Valentine’s Day by offering gift product for its customers.
The marketing theory of the firm focuses conducting marketing mix of Haigh’s Chocolates which is based on pricing strategy that assist the launch of new product on Valentine’s Day.
Haigh’s Chocolates offer single flavoured chocolate products its customers; the products are handmade by employees by using premium ingredients. The corporation uses techniques from Swiss and local chocolate manufactures to improve the quality of its products (QVB, 2017). The company’s products are famous because of high quality and handmade production which is not provided by any other competitors; therefore, they are a great gift to give on special occasions (Ried, Frank & Stocks, 2009). The company can use pricing strategy to attract a large number of customers. The “chocolate rose bouquet” introduced by the firm on Valentine’s Day is focused on the spirit of the day, and it provides an excellent gift option to customers.
Competitive advantage
The Company’s products are manufactured in its factory which is situated in Parkside, South Australia. The corporation offers its products through 14 stores which are situated in different locations of Melbourne, Adelaide, and Sydney. The firm allows the visitor in its factory, and they can witness its handmade manufacturing process (Heuzenroeder, 2016). The corporation should offer its new product near the stores to reduce the cost of delivery and transportation. The company can also use the online platform to offer its product to customers who are living in major cities. The reduction in cost allows organisation to provide a discount on its new product and it fits the brand image of providing premium gifts on special occasion.
The price of Haigh’s Chocolate’s products are high because it uses premium quality imported cocoa beans; the company also uses a handmade process which is expensive than compared to using technology for manufacturing process (Papadelos & Williams, 2011). The packaging of the product is also expensive because the company uses premium material and process. The new products should have a high price since it is a premium gift for Valentine’s Day. The company should price its new product at AU$129.50 for entire bouquet which includes five roses. The price is realistic because the corporation charges AU$75.50 for medium and AU$117.50 for large “Milk Chocolate Assortment” box which is a popular gift for festive occasions. The new product is a good option for the customer between AU$75.50 Milk Chocolate Assortment box and AU$189.00 Dark Connoisseurs Selection Box (Haighschocolates, 2017). The corporation can offer 20 percent discount on the product to encourage its customers to buy the product on Valentine’s Day.
The corporation can promote its products through various offline and online sources; the firm can use feature of premium quality, sustainability and packaging during its advertisement to attract new customers. Social media sites are popular among people, and they use them to find gifts near Valentine’s Day (Mangold & Faulds, 2009). The company should market its products on social media sites to its target demographic since it provides them better opportunity to increase its sales. The corporation can also improve its customer engagement by using social media strategy. The company should use a mix of online and offline sources to advertise its product to its target audience. The main target audience of the firm generally use online sources over traditional methods; therefore, the primary focus of the firm should be on online sources (Minowa, Khomenko & Belk, 2011). Following are few examples of online and traditional tools that can be used by Haigh’s Chocolates to market its products to the target audience.
Social Media Sites – The Corporation can use social media platforms to increase its brand awareness and reach a wider audience (Berthon, Pitt, Plangger & Shapiro, 2012). The number of social media in Australia is more than 24.4 million as per Australian Bureau of Statistics, and most of them lived in major cities such as Adelaide, Sydney, and Melbourne (Socialmedianews, 2017). The corporation can target these people to advertise its products which will assist them in increasing its sales (Miller & Lammas, 2010). In case of new product launch, social media sites provide a large platform to Haigh’s Chocolates through which it can advertise its new product “chocolate rose bouquet”.
Product Design
Blogging – The firm can use online blogs to raise the awareness of its online customers regarding its new product; the enterprise can hire online bloggers, and they can write articles on company’s products and upload it for their audience (Chua, Deans & Parker, 2009).
Search Engine – The corporation can pay search engines such as Google to show its product when people search for specific keywords like valentine’s day, gift, premium gift, flower, and many others (Pan, Xiang, Law & Fesenmaier, 2011).
Television Advertisement – The Corporation can advertise its product through television advertisement and show its advertisement during programs with larger audiences to reach larger number of customers (Romaniuk, 2009).
Newspaper and Magazine – Haigh’s Chocolates can advertise its product in newspaper and magazine as well to attract offline users. But, these sources are not preferable because people use their smartphones to read news and magazines (Prideaux, 2009).
Billboards and Posters – The Corporation can display its posters and billboards near highly crowded areas or near retail stores and malls to gain the attention of people (Burgess, Parish & Alcock, 2011). Usually, people visit these areas and posters gain their attention. The poster should also mention discount offer since it encourages customers to buy the product quickly.
Haigh’s Chocolates might face following challenges while implementing above mentioned marketing plan to promote its new products on Valentine’s Day.
- High expenses– The social media followers of the corporation is low as compared to its competitors. Therefore, the company has to invest time and resources in order to increase its social media following. The improvement of customer engagement requires the corporation to hire new employees and provide 24*7 services to its online followers. The cost of online marketing is also high, but as compared to traditional sources, it is considerably low. The expenses of posters and billboard are high which increases the operational cost of the firm.
- Narrow Customer Base– The price of company’s products is substantially high, and most people did not prefer to invest heavily in chocolates or gifts. Therefore, the customer base of the firm is narrow than compared to its competitors. So the marketing plan of the firm might not be successful in reaching the target demographic of the enterprise.
- Competitors’ Strategies– The competitors of the firm are billion dollar organisations which spend heavily on the marketing of their products (Blattberg & Deighton, 2010). The marketing plan of Haigh’s Chocolates might not be able to gain as much attention as its competitors.
Figure 2: Poster for Haigh’s Product Launch
Conclusion
Conclusively, modern organisations use marketing as a tool to increase the sale of their new products since it allows them to gain the attention of their target customer base. Haigh’s Chocolates is an Australian confectionery company which was founded in 1915; the corporation is known for its premium quality and high prices products which are used by customers for gifting purposes. The segment of the firm is premium products, and its target audience is mid-level and high-level income individuals who prefer premium chocolate for consumption and gifting purposes. The company has gained a competitive advantage because of its trustworthiness between people because it uses imported cocoa beans and allows its customers to witness their handmade manufacturing process in the factory. The corporation is designing new product called “chocolate rose bouquet” which is to be launched as a gift option for customers near Valentine’s Day.
The product is a premium gift option for Valentine’s Day which is priced at AU$129.50, and the packaging of the product is also beautiful. The corporate should promote the product in major cities in which it serves and offers it through the online and offline source. The corporation can use various traditional and online marketing tools to promote its new product such as social media, blogs, search engines, television advertisements, newspaper, magazine, poster, and billboard. The company might face various issues while implementing its marketing plans such as high expenses, narrow customer base, and competitors’ strategies. Haigh’s Chocolates should effectively implement this marketing plan to increase its sales near Valentine’s Day which assist it in expanding its business and sustain its future growth.
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