Background on Donald B Company
Discuss About The Impact On Product Ecall Production Efficiency.
The main aim of every business is to expand and flourish the business activities and operations in international market. Here is the discussion about Donald B Company that is producing chocolate products and services across the world. The major aim of the firm is to spread their business around the world to maximize the profitability in the global market. The vision of the firm is to maximize the market share by offering new chocolates to the consumers. The paper explains that how the Corporation makes dynamic market strategy and plan to explore its business in foreign market. Furthermore, the segmentation, targeting and positioning strategies have been explained in the task. It describes that how the firm uses marketing mix strategy to cope and strive with competitors in the rivalries market. More detail of the task has been discussed below.
Donald B is known as a chocolate maker and has two own stores in Melbourne. Its principal and main product groups include chocolate and confectionary products. The primary mission of Donald B is to grow and enhance its brand in the international market and cope with biggest competitors producing and manufacturing confectionery, glazed fruit, candied nut, cocoa product, drinking chocolate and marshmallow. The organization is taking help of Coles and Woolworths to increase and enhance the sale of chocolate in Australian market. In today’s era, Donald B needs to focus on the external market to destroy the competitors in the global market. Furthermore, it has been analyzed that the organization should focus on the micro environmental analysis and macro environmental analysis to maximize the outputs and results.
Marketing planning may be defined as a long term, forward looking approach to planning with the fundamental goals attaining a sustainable competitive benefit. On the other hand, marketing plan provides an outline and information of the specific actions and behavior that need to be taken over time to attain the long term goals and objectives (Weekley & Ployhart, 2013). STP (segmentation, targeting and positioning) is one of the significant strategies of the company.
Target audience plays a significant role in each and every organization to earn more revenue and returns in the international market. This target market also helps to overcome the competitors. Donald B focuses on the needs, requirements, wants and desires of the target market to increase and enhance the demand of the products (Snijders, 2011). It shall be stated that target market provide wide range of opportunities to the company to explore and expand the operations and activities globally. It is noted that Donald B examines and evaluates the different types of market segments on the basis of size, trends and natures of the market to introduce new and innovative chocolate products and services in the market. The organization distributes their target market because of having needs, desires, wants and requirements. The company produces different types of products for many segments after considering the age, occupation, climate and season. In geographic segment, the company focuses on the target audience and their culture to enhance the sale of the firm. In demographic segment, Donald B focuses on the young working professionals who are between the age group of 20 to 40.This target market like to eat chocolate product widely (Dahlén, Lange & Smith, 2010). In psychographic segmentation, the company is targeted a2, b1 and b2 socio economic classes. In behavioral segmentation it is found that the company is targeted the first time users and also their regular users who like to eat chocolates on daily basis. The target market includes departmental stores, target grocers and hyper markets (Duhigg, 2012). No company can survive and grow its business without analyzing and examining the needs and wants of the target market. If Donald B wants to grow its brand in the international market then the company should focus on the requirements and expectations of the consumers. It will also help to uplift the profitability and outputs with minimizing the cost of the products. By analyzing and identifying the target audience, Donald B has been able to boost and increase its reputation in the international market. The company should also focus on the cost of the products to retain maximum number of consumers all over the world (Ainsworth, Blehar, Waters & Wall, 2015).
Marketing Strategies
One of the significant strategies that initiated Donald B is segmentation. Donald B divides its market into different segment on the basis of demographic area, psychographic area, behavioral area and geographic area. These factors affect the progress and growth of the firm.
Demographic segmentation: In demographic segmentation, the market is divided into different groups on the basis of various factors including age, gender, income and occupation etc, these demographic variables are so famous with marketers so that they are often interconnected with the needs and wants of the consumers. Some of the demographic variables that are used by the company to divide its market have been discussed below (Wilson & Mukhina, 2012).
Age: The Company focuses on the people who are age group between 20-40 years. The young boys and girls mostly prefer chocolates on occasion and festivals. Many people buy chocolates on regular basis. Therefore, it helps to attract and retain more consumers in the international market.
Gender: Donald B produces chocolates for anyone who wishes to be healthy. In this way, the company has been able to meet its desired goals.
Income: Donald B is associated with a specific luxury brand name to fulfill the expectations and needs of the consumers.
Occupation: Students, sports enthusiasts, athletes, and working professionals.
b.Psychographic segmentation: Under psychographic segmentation, Donald B focuses on the lifestyle, personality, occasions, benefits, usage rate, user status, loyalty status, readiness stage and attitude toward product. By focusing on psychographic segmentation, Donald B has been able to provide chocolate these people who really want to tastes and enjoy chocolate (Kazemi & Esmaeili, 2010).
C.Geographic segmentation: Donald B segmented its target market for chocolate and confectionary depends on the geographic weather such as warm, hot and cold weather. Furthermore, it has been noted that the company divides its market into the rural and urban areas (Gabay, Moskowitz, Beckley & Ashman, 2009).
D.Behavioral segmentation: By analyzing the behavioral factors, Donald B can attain sustainability in the competitive market. The people who belong to the high job profile with efficient and effective communication knowledge and experience can use it. After the various researchers, it has been analyzed that the company should use targeting and segmentation strategies to expand the business operations and activities in foreign market. It will help to stand out against the competitors in such market (Majaro, 2013).
Positioning is another important and effective strategy that is initiated by Donald B within the organization in order to maximize the returns and revenue. After analyzing and identifying the target market, positioning is done by the firm. By creating and analyzing service, channel, product, image differentiation the organization arrives the customers touch point more easily, efficiently and effectively in comparing with other competitors in the high rivalry food processing market (Thompson & Martin, 2010). To position the chocolate products, Donald B focuses on the product, image, channel and distribution strategies of competitors. It will help to compete with rivalries in the Australian market. It has been noted that the company should focus on the positioning strategies before entering in the foreign market. The company cannot attain success in foreign market without analyzing the positioning strategies in the global market. In addition, it has been stated that Donald B should focus on the positioning strategy to maintain a good communication with consumers in the international market. Along with this, the company is become successful and powerful to handle and face the marketing trends and challenges (Jaman, 2012). With the help of positioning strategy, Donald B can create goodwill and win customers loyalty and faith in the foreign market. It has been suggested that Donald B can use this strategy in other market to introduce a new and innovative products. The brand positioning strategy also helps to attract different types of consumers in the marketplace. The consumers are differ in terms of their needs and expectations from the product. Some of the people want durability, some want novelty, some want unique features and some want safety, and so on. Donald B can attract different types of buyers by promoting and using different types of positioning strategies (Maital & Seshadri, 2012).
Segmentation Strategies
Along with positioning strategy, Donald B can initiate different types of positioning approaches in the international market that have been detailed below.
Using customer benefits and product characteristics: In this case, the segmentation shall be done by the company keeping in mind the product features and customers benefits. It is one of vital and effective positioning approaches that can be initiated by Donald B.
Price quality approach: This approach includes the various prices of the products. The company fixes different types of prices for different products and services. It shall be noted that Donald B should focus on the prices of the chocolate products to make a dynamic image in the minds of the consumers.
The application and use approach: The company should also consider the application approach to handle and resolve the issues and problems of new market (Ellis, 2010).
The product use approach: This approach focuses on the needs, requirements and buying behavior of the consumers to differentiate its products from the competitors. It shall be studied that Donald B must focus on this approach to increase revenue in the foreign market.
The product class approach: Some products need to make dynamic and unique positioning decisions that include product class associations. One of the significant approaches that should be used by Donald B Company in the international market is product class approach to gain the rivalries benefits.
The cultural symbol approach: Many companies use cultural symbols to distinguish their brands from the rivalries. Therefore, Donald B should also use this approach to differentiate its brand from the other competitors. It also helps to make unique and effective decisions within the organization.
The competitor approach: The positioning can be made with an implicit and explicit frame of references of one or more rivalries. The company should maintain good and strong communication with competitors to attain various competitive advantages in the marketplace. This approach is important to know and identify the plans, policies and strategies of the competitors. In this way, it has been stated that Donald B should use positioning approaches to implement its business activities and operations in the international market.
The marketing mix is one of the most important strategies for Donald B to implement and start business activities and operations in other country. This strategy helps the company to attain various types of competitive advantages in the market (Hossien, 2011). This strategy helps to find out the position of the competitors worldwide. The elements of marketing mix are discussed below.
Targeting Strategies
One of the dynamic and effective strategies for company is product strategy that helps to introduce new products in the international market. Donald B is leading company in Australian market that keeping in minds the products of the competitors. After considering the products of rivalries, the organization has been able to distinguish its chocolate products from the competitors. By using this strategy, the company can easily sale its products globally. Cherry Ripe, Snikers, Freddo frog and Crunchie are main competitors of the firm. It has been further noted that Donald B monitors the expectations and wants of the consumers to introduce and launch new products. It helps to make a good reputation in the global market. Donald B should keep in mind the product strategy to enter in the foreign market.
There are three levels of the products that are discussed below.
Core product: It has been analyzed that core product is not tangible physical product, the people can touch it. The core products are valuable; it is main benefit of the product. The company can use this level to promote the chocolate products in the oversea market. Furthermore, the core products can be shifted here and there easily. The chocolate products can be moved from one place to another.
Actual product: It is the second level of the product. The people can get actual product for some special purpose. This level is unable to provide much benefit to the consumers in the international market.
Augmented product: One of the significant levels of product is augmented. These products are part of the non-physical part of the product. It is generally consists of lots of added value to attract more clients worldwide.
It has been studied Donald B can use various types of price bundling strategies to offer the products and services to wide range of consumers. To ensure customers buy more chocolate products, Donald B focuses on psychological pricing strategies in its marketing mix that indicates affordable to customers (Afoakwa, 2016). The company should set the appropriate prices of the products to maximize sales and returns. Moreover, discount and offers should be provided by the company to make a great brand image in the market. The pricing strategy is also adopted by the company to tap the lower middle section of the community. Along with this, promotional pricing strategy shall be initiated by Donald B in the overseas market (Beckett, 2011).
Positioning Strategies
The company operates its business in Australian market. Now the company has decided to explore its business in other countries. Therefore, place strategy plays a major role when the firm initiates its business operations in foreign market (Saltini & Akkerman, 2012). It has been analyzed that Donald B should focus on the place strategies to decide attractive and unique place to sale the chocolate products in the global market. For example, the company should set and establish its own outlets in China, New Zealand and United Kingdom to maximize the profits. In this way, the organization can explore and flourish its business actions in other countries. Apart from this, the company should focus on the high quality standards and hygiene norms and regulations (Murray, 2010).
It is noted that Donald B is investing large amount on advertising campaigns, it makes use of newspapers ads, signage and billboards. The company uses aggressive promotion strategies when it comes to its marketing mix. Apart from this, effective and unique promotional and advertisement strategies shall be used by the company to promote the products and services in the global market. This strategy helps to know and identify the features and quality of the products and services. On the other hand, it has been evaluated marketing survey and unique campaigns shall be done by the company to analyze and know the market situations and promote the chocolate products. In this way, the company can attract large number of consumers in the foreign market (Rosenbloom, 2012).
Donald B has unique way of addressing its consumers and also treats its workers very well. The company should appoint a unique and dynamic team to focus on sales and profitability of the firm. Along with this, the organization should emphasize its employees to be customers cheering, friendly and gave affection for people. The customer satisfaction should be primary objectives for the firm to achieve effective brand name in the global world. Hygiene is important factor that kept in mind by the employees of the firm. The leadership team of Donald B is responsible to provide right and accurate information to the consumers about the chocolate products (Babin & Zikmund, 2015).
Physical evidence is significant and vital factor in marketing mix. The psychical evidence creates a great impact in the minds of the customers. The features of physical evidence displayed are speed of service, cleanliness, quality and hygiene. The website of Donald B has been able to maintain a great presence in the minds of the consumers (Dahlén, Lange & Smith, 2010).
Importance of Positioning Strategies
On the other hand, process plays an empirical role in each and every organization to produce products in a right and appropriate manner. Donald B use effective and attractive processes and procedures to produce the products in the marketplace (Beckett, 2011).
Conclusion
On the above aforesaid information, it has been concluded that Donald B should focus on the market and strategies to initiate business activities and operations in foreign market. The above analysis shows that marketing mix strategies and STP strategies play a fundamental role to make a unique and dynamic marketing plan for entering in the overseas country. It has been analyzed that Donald B should also focus on the plans of the competitors to attain success and growth in the international market. In this way, Donald B can attain desired mission and vision in foreign market with maintaining sustainability in the workplace and environment as well.
References
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