Discussion
Belgium is selected as the country for conducting a market analysis. Belgium is one of the top four countries alongside United States, Germany and Switzerland in producing a huge amount of chocolate (Squicciarini & Swinnen, 2016). The Western European countries generate 35% of the total chocolate production in the World. Belgium’s chocolate industry has been an important contributor in the economy of Belgium. The Belgian chocolate industry is known for its higher percentage of cocoa content in their chocolate, which is a suitable condition for Tom’s confectionary. Belgium will help to find out the necessary information about the chocolate industry.
Tom’s confectionary was formed in the year 1924. The founder of the organization is Hans Trojel and Victor Hans Meyer. The product plant of the organization lies in United Kingdom, Sweden and Denmark. The organization serves its product worldwide. Toms produces more than 50,000 tons of sugar and chocolate confectionary each year. In 2012, the organization eared total revenue of 1.64 Billion Denmark krone (Mensah, 2016). The net income of Toms was accounted 51.1 DKK in 2012. The organization has a huge amount of market share in the environment.
Chocolate industry has been one of the main professions in Belgium. If the organization expands their business in the Belgium market then it can help the organization to grow in the market. Toms can build increase their market share by expanding their market in the foreign soil. The main aim of the organization should be global recognition. Global recognition will help them in increasing their potential customer. Increasing the potential customer will help the organization in earning huge amount revenue. The high amount of cocoa content in the chocolate of the Belgium is a positive aspect that Toms can use. In the next 3-5 years the management of Toms is expecting to have a 5% growth in their sales. The growth can be increased if they focus more on globalising their products.
The organization faces a tough competition in the market. Companies like Nestle, Mars Inc, Mondelez international gives them a tough competition in the market. Competitors like Nestle have a huge market presence in the world, which has helped them to earn a good amount of market awareness. Nestle segments their product Nescafe Ice based on the geographic weather, hot and cold. Nestle also segments their product based on the age.
Denmark is one of the most modern and rich country, with a high level of qualified and skilled workforce. Denmark is different from the rest of the world as they have the highest living standards, which is possible for its remarkable GDP of 48.000 US dollars (Castelli et al., 2012). Denmark is the most advanced society when it comes to information, with critique and innovating customers. They are the fastest when it comes to adapting any new technology or products. The Danish people are open to risks and change, they are educated and they are very much independent. The preference of the Danish people is mostly the quality of the products. Despite of having taste in new products or technologies the Danish consumers are conservative and prefers product from the organizations that are established for a long period of time. The people of Denmark usually prefer organic products and the market of the organic products is increasing day by day, which shows that the consumer’s interest is increasing in the health, environment, ethics and the taste and quality. Despite of having high income tax level, the Danish enjoys the best living qualities in the world. Denmark has a high connectivity with the skilled work force and modern infrastructure like the other Scandinavian countries. Danish have the population in which the median age is 42.2 years. The conservative nature of the Danish people influences the buying habit of the consumers to quite an extent. The marketing in Denmark is mostly done with the help of television. More than 95% of the Danish households own television sets. The companies have to give a high focus on the quality of the products as this will help the organizations to gain a high customer’s base (Evers, Andersson & Hannibal, 2012).
General Market Attractiveness
The chocolate consumption is huge and it can be said that the people of Denmark consider chocolate as staple food rather than snacks or reward. Whereas Australians use chocolate as snacks and not in a regular basis, however the chocolate consumption in
Australia has increased in the last few years.
Toms need to globalise their product and it will take time to gain a market share as the consumers may not shift their preference so quickly. However, there are products like Toms, which contains a lot of cocoa. Therefore, the organization will get a fair share of market as the consumers are already accustomed with the products like Toms.
The economy of Denmark is very stable and the economy of Denmark is growing. It has helped the population of Denmark in achieving the highest standard of living. The economic freedom score of Denmark is 76.6 which make Denmark the 12th freest country in the 2018 economy index. The overall score of Denmark has increased by 1.5 points, which is led by improvement in the effectiveness of the judicial system, government spending and the tax burden. Denmark has been ranked 6th among the 44 countries. The economy of Denmark has been gradually rising and this will help the organizations that operated in the country. The economy of the country has been growing in the last few years this is because of the availability of the skilled employee in the country. The availability of the skilled employees has helped the organizations to stay updated all the time. They are the most advanced when it comes to technologies. This has helped Denmark in the economy.
The consumers will spend a lot of money on the products as the consumer of Denmark considers chocolate as the staple food. They consume the products in a regular basis and they love their chocolate, which is reach in cocoa.
The economic condition of Denmark is very much stable. Denmark has the single chamber parliament which is also known as the unicameral parliament, with the deputies which are elected with the process of proportional representative. Four among all the 179 members are elected from the Faroe and the Greenland Islands. The Danish government tend to have minority governments, which means the Denmark politics tend to have compromises among different political parties. Denmark is one of the countries, which have very few political disturbances. This has helped the organizations that operated in the country in making a huge amount of revenue. The export import policies in the country are also quite flexible and this helps the foreign companies in doing trade.
Cultural Constraints
All the data that have been collected in this assignment is collected by reviewing the business journals and the data and the information that is available in the internet.
The main problem with the marketing mix of Toms is the promotional strategy and the distribution. The distribution channel of Toms is very ineffective. To globalise the product Toms need to have good supply chain that ensures an effective distribution of products at the right time. Ineffective distribution can hamper the customer base. Toms also need to give a huge attention in the promotional strategy. Promotion is one of the important aspects of any organization (Kumar & Raju, 2013). The promotional strategy will help the customer to know about the product and this will also increase the revenue of the organization.
I would recommend that the organization needs to enter in the Australian market.
Australian market is very stable and the organization will also get good support from the foreign investors (Dilley, 2012). This will help the organization in growing in the Australian soil and this will also give them a major boost in capturing the market. The stable Australian economy will prove to be fruitful for Toms and they can expand their market in the Asian countries as well.
The market segmentation process of Toms is effective but it can be improved if they consider the market segmentation according to the age group of the customers (Wedel & Kamakura, 2012). This will help to create specific consumer group in the market. The market segmentation strategy will also help in the pricing of their products. Toms need to market their product more and create more brand awareness in the industry. This will help to create their own customer that will provide them a better market share.
References:
Wedel, M., & Kamakura, W. A. (2012). Market segmentation: Conceptual and methodological foundations (Vol. 8). Springer Science & Business Media.
Squicciarini, M. P., & Swinnen, J. F. (Eds.). (2016). The economics of chocolate. Oxford University Press.
Mensah, D. (2016). CSR Driven Brand Marketing: The Case of Toms Group.
Castelli, I. E., Olsen, T., Datta, S., Landis, D. D., Dahl, S., Thygesen, K. S., & Jacobsen, K. W. (2012). Computational screening of perovskite metal oxides for optimal solar light capture. Energy & Environmental Science, 5(2), 5814-5819.
Dilley, A. (2012). Introduction. In Finance, Politics, and Imperialism (pp. 1-10). Palgrave Macmillan, London.
Kumar, D. P., & Raju, K. V. (2013). The role of advertising in consumer decision making. IOSR Journal of Business and Management, 14(4), 37-45.
Evers, N., Andersson, S., & Hannibal, M. (2012). Stakeholders and marketing capabilities in international new ventures: evidence from Ireland, Sweden and Denmark. Journal of International Marketing, 20(4), 46-71.
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