Forecasting Financial Performance Of Company Based On Structure

Description of the company and industry

Discuss about the Structure Based On Forecasting Financial Performance Of Company.

The confectionery industry and especially chocolate is liked by most of the customers due to the use of the technological advancements in the competitive market that has resulted in making the products attractive in nature. The company has been started by Donald B and wants to compete with the international brands with respect to the cocoa and confectionery products. The owner also wants to sell the products through the supermarket stores that are present so that it can help in increasing the attraction among the consumers.

This research has been done by conducting surveys of the customers and taking their insights regarding the products that they want the company to manufacture. Most of the consumers were between the age group of 15-45 years, which helped in analysing the young and the old customers.

Does the product of the company appeal to you?

What is the positive attribute regarding the product that is being sold by the company?

From the primary market research, it can be seen that the consumers are of the opinion that the product offered by the company have an appeal in the market and the price is set a lower rate so that it can increase the level of consumption.

The secondary research has been conducted through the 4P’s of marketing mix where it stands for product, price, place and promotion. This will help in understanding the manner in which the company is performing in the Australian market. The products of the company are largely diversified so that it can help in catering to the different needs and preferences of the customers (Tapp and Spotswood 2013).

The price of the products need to be kept in a competitive manner so that the customers can switch to the new brand from the competitors that are present. This will result in catering to different segments of customers. This tool in the marketing mix is important, as it helps the company in increasing its level of revenue generation by selling more number of products (Christopher, Payne and Ballantyne 2013).

The products of the company needs to be available all over the Australian market so that it can be purchased by more number of customers. The use of effective channels of distribution will allow the company in distributing the products in the local market. The products also need to be available in the supermarkets such as Woolworths, Coles and Aldi so that maximum reach of the customers can be capitalized (Resnick et al. 2016).

Market research

The company needs to promote the products in a proper manner so that it can help in attracting more number of customers. This can be done by using the social media platforms such as Facebook, Twitter and YouTube, as these platforms are accessed by customers of all ages (Akrani, Katyani and Patil 2013).

Buying behaviour of the consumers is the process through which they will consume the products and the services that are being offered by the companies. It consists of five steps, which needs to be satisfied so that the process can continue for them towards the same company. With respect to the chocolate company, the first step is to identify the needs their needs (Solomon et al. 2014). This will help in understanding that the product needs to be consumed by them. The second step includes researching the information regarding the different companies that produces the chocolate according to their budget. This will result in narrowing down their choices in a proper manner. Once the information has been gathered by the consumers, they will try to look for alternatives so that it can provide them different options through which they can choose and according to their budget as well (Brosekhan, Velayutham and Phil 2013).

The fourth step is the final consumption of the product so that it can satisfy the needs and preferences of the customers. In the chocolate industry, most of the consumers are driven by their instinct and the love that they have for chocolates, as it allows them in trying out different products that are being offered by these companies. The buying behaviour in relation to Donald B chocolate company is that the company provides different products to the consumers. This enables the consumers to satisfy their different needs as well. The fifth step is where the consumers provide feedbacks to the company so that Donald can improve the quality of the chocolates that are being served (Sharma 2014).

The company is mainly a sole proprietorship, as the owner of the store is Donald B. His main aim is to grow his brand of chocolates in an international and national manner so that it can compete with the other chocolate manufacturers that are present in the market. The company makes different kinds of chocolates and is trying to capitalize on the retail stores that are present in the Australian market such as Aldi, Woolworths, and Coles. This will enable the company to increase its attraction in the market for the customers (Brusov, Filatova and Orekhova 2014).

Primary

Since the company is a sole proprietorship, the majority of the shares are held by Donald B and is responsible for the profits or losses that are taking place within the company.  The customers of the company are the chocolate lovers and the ones who want to develop a taste of the chocolate products (Lawton 2017). Since the company provides different varieties of chocolate products, it also helps in attracting the chocolate connoisseurs as well. This allows the company in gaining valuable feedback regarding the taste that is being available in the market. The other type of customers are the kids who are fond of eating chocolates. This has been capitalized by the company, as it produces different varieties that help in attracting the kids towards the products (Kundakchyan and Zulfakarova 2014).

Cash Cows

This is the segment where the company gains a better financial position due to the products that are being supplied in the market. These products do not develop on a further manner, as it helps the company in earning a continuous rate of return due to its increased level of sales. The drinking chocolate and the marshmallow that is made by the company are the cash cows, as it has helped in gaining a strong financial position in the market (Palia, De Rick and Mak 2014).

Stars

The products in this segment have the potential to grow and help the company in earning a better rate of return. The company has products such as confectionery and candied nut that has the potential to increase the revenue of the company in the market. This can be done by increasing the demand among the customers so that the products can be liked by them. Apart from these products, drinking chocolate and marshmallow are also generating better rate of income for the company and can be considered as starts as well (Harding 2017).

Question mark

This segment deals with the products and services that are not a constant source of finance for the company. There is an uncertainty regarding the revenue that will be earned through the products that are listed in this segment. The question mark products for the company are the candied popcorn and liquorice, as it does not provide a better rate of return to the company. This has resulted in low revenue by selling these products due to its lower share in the Australian market (Shanbhag, Dutt and Bagwe 2016).

Secondary

Dogs

This segment consists of the products that take up the resources that are present in the organization but does not provide the return on the investment. These products do not perform in a better manner in the market and is only based on increasing the product portfolio of the company. The products such as candied popcorn and liquorice are taking up the resources that are present in the company but are not being able to deliver the revenues for the company (Harding 2017).

The above diagram shows the Ansoff matrix of the Donald B chocolate company. It shows that the products that will help the company in penetrating the market will be drinking chocolate and marshmallow, as it is being liked by the customers (Hussain et al. 2013). This will help in increasing the level of sales as well. The product development for the company will be candied nut and confectionery, which can be developed according to the needs and preferences of the customers. This will help in attracting more number of customers towards the company (Team 2013). The development of the company will depend on the products such as crystallized fruit that can be developed according to the demands that are present in the market. The diversification segment consists of candied popcorn and liquorice, which will help the company in bringing more number of customers towards the company. This will also allow the company in increasing its base of customers (Yin 2016).

Most of the food products that are present in the recent market may have a doubt of its originality and may lack the nutrition content in the products. This results in attracting the consumers in a different direction where they like to consume the products that are nutritious in nature. The company makes it a point to satisfy the demand of the customers by making flavourful products and inducting beneficial ingredients so that the nutrition content can be present as well. This results in attracting more number of customers towards the products by the company. This also helps in convincing the customers to purchase the brand due to the superior level of quality that is being offered by the company (Suh 2014).

Another major strength is that the company makes the products according to the latest trends that are present among the customers. This results in increasing the demand of the products among the customers as well. The company makes it a point to use products that are free of glutens so that it can result in increasing the appeal among the customers.

Buyer behaviour

There is a lot of competition in the chocolate industry, as the demands among the customers have increased to a great extent. The companies such as Margaret River Chocolate company and Denmark Chocolate company are some of the major brands apart from Cadbury and Lindt that is posing a threat to Donald B chocolate company. This is due to the fact that these companies are established in the Australian market for a long period of time and have a loyal base of customers as well. The availability of raw materials to product chocolates is readily present in the market, which has resulted in increasing the level of competition as well (Yuan 2013).

Another major threat is that the margin of profit among the chocolate makers is very less due to the use of the latest machines that are expensive in nature along with the latest methods of packaging. This results in lower rate of profit margin for the producers. Apart from this, most of the chocolate producers also lack the ability to market their products due to which the products remain unsold in the market. The misuse of the marketing strategy by the producers results in the lack of profit as well (Suh 2014).

The company needs to tap the B2B opportunities so that it can result in using the high quality products for the creation of its products. This will help the company in raising the standards of the company so that the products can be better than the competition that is present in the market. It will also help the company in expanding their product offering among the public as well so that the sales can be increased.

The company also needs to use the social media so that it can spread awareness regarding the products in the market. This will help in attracting more number of customers so that the products can be marketed in a better manner. The company needs to advertise the products heavily so that the customers can use the social media platforms to get the information regarding the products that are available in the market. The introduction of the new products in the market will also be informed through the media platform so that the customers have a knowledge regarding the places where it is available (Yin 2016).

Most of the companies are combining stories while producing the chocolates. This helps them in connecting with the customers in a better manner. The major threat is that most of the people are becoming conscious regarding their health, which has resulted in a lower amount of income for the chocolate companies. The cost of cacao fruits, which is the primary raw material has also increased due to the Fairtrade Agreement, which has resulted in an increase in the overhead cost as well. The current rate of inflation in the Australian market has resulted in reducing the level of sales in the market (Suh 2014).

Micro environment

There are many regulatory bodies that are present in Australia such as the sugar tax and the reduction in usage of sugar in manufacturing the products. There are political decisions that are being taken regarding the consumption of sugar so that it does not hamper the normal lives of people. The use of sugar by-products as substitutes are being pressurized by the Australian government so that it can help the customers in leading a healthy life (Zalengera et al. 2014).

The economic condition of the Australian market is strong, which has helped the chocolate industry to grow in a better way. This has helped in keeping the rate of interest lower so that the raw materials can be purchased at a discounted price. The plant has to be located at a particular place so that the economies of scale can be capitalized. This will help in increasing the level of revenue for the company as well (Gillam and Siriwardena 2013).

Donald B chocolate company has been taking in to consideration the demands of the consumers that are changing on a constant manner. It has also undergone a Fairtrade Agreement so that the cocoa products that are being imported is done in a right manner and not through illegal transactions. The company also takes in to consideration the health concerns of the consumers regarding the intake of sugar products, as it leads to damaging heath. The company also responds to the customers that enable them in reducing the cost of the resources as well (Fozer et al. 2017).

Technology plays an important part in decreasing the cost of production to a great extent. The company is using the modern technologies and the machineries so that the products can be manufactured in an effective manner. This has helped the company in producing heat resistant chocolates so that the attraction of the consumers towards the products can be increased. This has allowed the company in building a better relationship with the customers so that it can result in understanding their needs (Zalengera et al. 2014).

The use of the heavy machineries and the innovative packaging systems has resulted in increasing the level of carbon footprints in the environment. This is due to the fact that the supply chain of this products are inclusive from the process of manufacturing to that of distribution (Fozer et al. 2017).

The company needs to provide full details regarding the ingredients that are being used in the product along with the calorie count that will be taken in by the consumers after they have consumed the product. This will help the consumers in getting a better information regarding the amount of fat that is being taken up by them. These requirements need to be met by the companies so that they can function in a proper manner within the Australian market (Gillam and Siriwardena 2013).

Structure

Therefore it can be recommended that after studying the behaviour of the company in the Australian market, the price of the products play an important role so that the product can be appealing to the consumers. The company also needs to promote the products in a proper manner so that maximum presence among the customers can be a result out of it. This will help in increasing the consumption of the products. It can thus be stated that the company also needs to consider the primary research of the market that has been conducted so that it can help in taking in to account the different views as well. The products that are available to the company for developing the market needs to be done in a proper manner with the help of the feedbacks of the consumers so that it can attract them. The strengths of the company needs to be capitalized by utilizing the resources to the optimum so that it can result in a better financial position for the company.

Conclusion

Therefore it can be concluded that the company can use the marketing techniques so that the customers can be attracted towards the products in a proper manner. It will also help the company in gaining valuable feedbacks from the customers so that the development of the products can be done in a proper way. This will also increase the attraction of the products in the Australian market.

Reference List

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