1 Saurabh Arvind S292049 MKT501 INTERNATIONAL MARKETING ASSIGNMENT – 1 SAURABH ARVIND S292049 MKT501 INTRODUCTION: Haigh’s Chocolates is a private company based in Australia that deals in chocolates and various goodies related to it. It was founded in 1915 and is based in Adelaide, Australia. It was founded by Alfred E. Haigh. Currently the company has 6 stores operating across Australia like Block Arcade, Chats wood Chase, Beehive Corner Store to name a few. It is currently operating in 14 locations currently across Australia namely Adelaide, Melbourne, and Sydney etc. These are some of the important locations for the company. Haigh’s Chocolates is operating in Australian confectionary Industry. The Australian confectionary industry is currently showcasing strong growth in the country. It has shown 4% growth in the current year. This figure has shown increasing trend as compared to the previous year. The consumer tends to get attracted with variety in this industry by the companies operating in this industry. Black chocolate is viewed as one of the important products among the consumers. The companies apart from this has showcased and experimented with various other flavors like mint, caramel salty flavor and many more. This has led to enhancement in the customer base for the industry influencing positive signs for its growth in the recent years. Modelez Australia, Old Gold, Cadbury Australia, Marvellous Creations are some of the brands operating strongly in the Australian Industry. The confectionary industry in the chocolate segment is considered to showcase growth of about 2% 2 Saurabh Arvind S292049 MKT501 rate in accordance with CAGR. The industry is expected to show low growth due to various factors like shortage of supply of important raw materials like cocoa. Table of Contents INTRODUCTION: ............................................................................................................................................ 1 THE CURRENT STP MODEL AT HAIGH’S CHOCOLATES: CRITICAL ANALYSIS: ................................................ 3 Business to Business (B2B): ........................................................................................................................... 3 Targeting: ...................................................................................................................................................... 5 B2B: ............................................................................................................................................................... 5 Positioning: ................................................................................................................................................... 6 NEW APPROACH AT STP MODEL FOR INDONESIAN MARKET: ..................................................................... 6 Targeting: ...................................................................................................................................................... 8 CONCLUSIONS: ............................................................................................................................................ 10 REFERENCES: ............................................................................................................................................... 10 3 Saurabh Arvind S292049 MKT501 THE CURRENT STP MODEL AT HAIGH’S CHOCOLATES: CRITICAL ANALYSIS: 1.1. Market Segmentation of the company: The Haigh’s chocolate company currently operates in premium segment and has been targeting potential customers through its segmentation (Grosen, 2014). Business to Business (B2B): Haigh’s Chocolates also provides its business services through this approach as well: • Cinemas : Lifestyle: Psychographic: The Haigh’s Chocolates has been providing wide range of chocolate supply to the cinemas across the country. The premium, high quality range of chocolates has been in demand and lots of cinemas targeted their customers in order to increase the number of audiences in the cinemas (Antoniou and Zabaniotou, 2015). The chocolates then were sold under the concept of Tray girls and boys to attract customer. This specifies the lifestyle segment of the consumers where the consumers in order to relax tend to enjoy cinemas. It is the biggest source of entertainment and best way to enjoy non working hours, hence best way to sell the audiences their most liked food items (Wismadi et al., 2014). • Other confectionary stores: Geographical: The company already has its well established stores in various parts of the country, but it also tends to sell the chocolates to the other stores those have high demand for its product. Hence these stores also have good locations in terms of the business establishment which means lots of customers (Doyle, 2016). 4 Saurabh Arvind S292049 MKT501 This is the geographic segmentation of the consumers where such stores are chosen by the company due to good location, area that attracts the customers as there is more movement of customers at such locations meaning more business (Wild, 2010). This type of market segmentation is on the basis of area, country, and region. 1.1.1. Business to Consumers (B2C): • Young population (Kids): Demographics: The young population (Kids) are considered as potential consumer as there because of more demand for chocolates in this segment compared to others. Hence more business has been earned through this segment by the company (Boudreaux, 2009). Demographic Segmentation basically means on the basis of gender, age, income and ethnicity etc. the consumer is divided. Hence this is based this consumer base type is based on this segment. • Young couples: Psychographics: The young couples also get attracted towards chocolates, making potential customer base for the company now days. The company has targeted this consumer base based on psychographic segmentation which involves emotions, opinion, and personality of the consumer (Lazer, 2013). • Festivals: Beliefs and values: Cultural segmentation: Festivals are the source of joy involving high consumption of sweets. Australian enjoy chocolates on Easter, hence the company has released Easter Billy chocolates brand especially for this festival attracting large base of consumers (Mohamed et al., 2012). It is based on beliefs and value segment of the consumer involving religion, culture and values as important attributes to segment product customer. 5 Saurabh Arvind S292049 MKT501 Targeting: 1.1.2. B2C: The company has targeted young population of kids as potential consumers for its product. • Accessibility: The kids are in large number in the country as compared to other consumers and their demand for chocolates never ceases to exist. Hence the kids have undying love for chocolates leading to high accessibility (Erkan Ozkaya et al., 2013). • Size: Kids market is a huge market as compared to other consumers. The demand from this segment is really high and due to considerable growth in this segment, the company has made huge profits. • Differences: Kids have undying love for chocolates and they demand chocolates in every event possible which has led to high demand in this segment for the company. • Stability: The population of kids is really large in number with their demand for chocolates everlasting. It has been seen that no matter what every child has strong love for chocolates that does not go that easily, ensuring stability for the company for many years. B2B: The company in the recent years has targeted cinemas as potential customer base in this segment. • Accessibility: With so many sources of entertainment like cinema coming up, the company has enjoyed good business in terms of accessibility. 6 Saurabh Arvind S292049 MKT501 • Size: The entertainment industry has been growing rapidly and so does its audience base, hence the company has enjoyed good business from its vast spread of business (Servantie et al., 2016). • Difference: Cinemas have huge audience with the mood to relax, have fun with food and movies; hence there is no resistance to food. This has ensured distinctiveness for the company. • Stability: The cinemas are there to stay and expand, already doing huge business, hence the chocolate company has made huge profits even with new cinemas that have established recently. Positioning: The positioning of the brand is done through its trademark family business establishment which is a family business going on from many years. The family business operates their business on their own which means no carelessness in the operations. This has ensured its positioning. It has been dealing in hand made chocolates made from coco beans which have ensured its quality, hence comfortable positioning of the product in terms of health benefits as well (Boso, Oghazi and Hultman, 2017). NEW APPROACH AT STP MODEL FOR INDONESIAN MARKET: Haigh’s Chocolates have well established business and consumer base in Australia, where even wide range of foreigners are also attracted to its brand of chocolates. Its expansion in Indonesia can be quite fruitful for its business operations with wide variety of consumer availability in the country. 1.2. Segmentation: 7 Saurabh Arvind S292049 MKT501 1.2.1. B2B: • Hotels and restaurants: Demographic Segmentation: Indonesians are fond of chocolates and variety of their desserts includes chocolates as one of the most important ingredients with coconut milk. In various dished it is the chocolates that is directly used as ingredient instead of cocoa. Haigh’s Chocolates with its fine chocolates can supply chocolates as raw material to such hotels and restaurants. It is based on demographic segmentation of the consumers which depicts age, gender occupation, religion, culture, ethnicity as the basis of division. • Cookery classes: Psychographic segmentation: Indonesians tend to take a lot of interest in cooking; hence such classes are really popular. The company can provide chocolate making or sweet making involving chocolates classes to the customers or can collaborate with other cooking classes. It is a psychographic segmentation of consumers which is based on opinions, lifestyle, activities and interest and people in this country are fond of cooking. 1.2.2. B2C: • Parties and events: Beliefs and values, cultural segmentation: Various types of parties like corporate parties, weeding, birthdays and other parties related to festivals are organized and in this country such parties have high demands for chocolates or related goodies. With its services it can get good business in this segment. This segmentation is based on beliefs and values where people tend to include chocolates in their every celebration or work parties (El-Ansary and Razian, 2015). • Health conscious customers: Behavioral Segmentation: A lot of people in the country are also health conscious that is why dark chocolates are normally sold as an important product in the 8 Saurabh Arvind S292049 MKT501 Indonesian markets. This segment can be useful segment for the company (Puri, 2010). This is based on the behavior of the consumer as a segment of people consider health really important, hence enhanced demands for dark chocolates. • High income groups: Demographic : The people have high demands for chocolates and hence a lot of them are always ready to spend hefty amount in the country. This can be profitable segment for the company as well. The segmentation is based on income of the consumers hence is classified under demographic segmentation. Targeting: 1.2.3. B2B: Hotels and restaurants are considered best segmentation on the basis of future growth of business. • Accessibility: The food culture in Indonesia is really vast and spread everywhere with deserts being the main lifeline, hence there is proper Accessibility for the company (Melewar and Dennis, 2016,). • Size: The food industry in the country is everlasting and is increasing every year with so many restaurants coming up, hence ensuring proper growth of the chocolate company. • Difference: The hotels use chocolates most of the time as important ingredient in their dishes; hence the demand will always be high in this regard. • Stability: 9 Saurabh Arvind S292049 MKT501 The food culture is always stable in the country and people are really crazy for desserts on different occasions and even normally. 1.2.4. B2C: Parties are events are considered as important segmentation in this case for the growth of the business. • Accessibility: In terms of accessibility, the country is full of celebration with parties organizing everywhere and almost every day and dessert craze is everlasting. • Size: Indonesian culture is all about celebrations with parties organizing in every corner of the country and food being the most important specialty. This culture is everlasting in the country. • Difference: Apart from other parties which are festival based, the country keeps on organizing parties almost every day with deserts being the main food, hence huge demands for chocolates. • Stability: The Indonesians enjoy parties a lot and their culture is all about celebrating everyday with such events being organized almost every day with also tourist being main attraction. 1.3. Positioning: Now with the recognition of the various consumers and potential segments in the country that can be targeted, it is important for the company to position its product in the minds of its potential consumer segment. This can be done with the maintenance of quality that it already offers and also with wide variety of flavors introduction and also fast delivery options, good and attractive packaging can ensure good positioning of the product in the country. 10 Saurabh Arvind S292049 MKT501 CONCLUSIONS: In this end, it can be said that with proper marketing methods in terms of customer segmentation and then targeting of those customers by using various factors, the company by focusing properly on the culture, nature and traditions of the people of particular country can achieve its targets easily of business expansion. 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