1. Introduction
1.1 Purpose
The purpose of this report is to identify, analyse and evaluate the marketing factors that Whittaker’s has adopted in attempts to position themselves as a top-quality chocolate confectionery brand. In addition, this report would also be an aid to the major assignment in terms of developing detailed plans with marketing factors, data and facts.
1.2 Scope
This report will cover the background understanding about the confectionery industry and do an in-depth analysis of the micro and macro environment. In addition, the market segmentation, market positioning and target market that Whittaker’s is concerned with is also discussed.
1.3 Background
The background of this report is to ensure that Whittaker’s
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They are distribution channel firms that make sales to final customers and Whittaker’s has to improve and sustain a close relationship with these resellers as they have the biggest customer base amongst all with 45.3% patron’s, holding a substantial amount of power. As such, Whittaker’s can obtain better advantages such as getting prime product area shelf-displays. (KPMG, 2012)
4.1.3 Competitors
From the graph above, Whittaker’s market share is part of 10.9% held by other ancillary confectionaries, while the majority of 51% is owned by Cadbury, followed by Nestle and Mars with a market share of 23% and 15.1% respectively.
4.2 Macro-Environmental forces
4.2.1 Natural
The natural environment involves Cocoa beans that are needed by Whittaker’s to produce their chocolate products. Over the next few years, the world is expected to face a chocolate ‘drought’, leading to soaring prices of cocoa beans due to insufficient consumable cocoa to chocolate manufacturers. (Western farm press, 2011)
4.2.3 Cultural From the graph, cocoa farmers are severely underpaid. Under the fairtrade agreement, farmers can now receive a fair price for their cocoa. Whittaker’s has two fairtrade agreements for their dark chocolate, allowing them to paint an ethical picture of their company. This would attract consumers who are concerned about the origins of their food. (Lindsay
The marketing strategy of Haigh’s chocolate has been identified through detailed analysis of the external and the internal environment of the present market conditions and development of the Haigh’s. There has been complete detailed SWOT analysis of the company on the basis of research conducted from several secondary sources. It has been conducted in order to determine the important strategies and the key strengths of the company. Talking about the chocolate sector which has been further segmented into several categories in which Haigh holds the important position and have captures the major chunk of the market. Such markets range from chocolate blocks, bars and other diet varieties like gluten and eggless products. The demand in the chocolate market is also divided on the basis of the geographic location markets like that in Sydney, Melbourne and Adelaide chocolate markets. Other factors affecting demand in the market includes demographic, behavioural and psychographic segmentation.
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Moreover, consumers and employees are also demanding chocolate companies to follow good corporate social responsibility practices in addressing the environmental concerns in terms of how to design its packaging, procurement and operational decisions. Human rights concerns are also high in terms of consumer expectations of chocolate companies with respect of forced child labour in West Africa. All of these driving forces - societal concerns, attitudes and change in lifestyles, are strong enough to shape up the competition and impose the constraint on chocolate industry profitability and competitive survival.
Thorntons also expanded into the ice cream industry and introduced a children’s range. However, the new product lines lowered the image of the chocolates to simple “snacks” or “impulse buys”. In diversifying its product offerings, Thorntons was soon competing in a saturated market with big names such as Cadbury. Also negatively impacting the company was the fact that not all products were proven successful. Thorntons had little experience in the manufacture of ice cream and was soon producing multiple ‘mediocre’ products instead of several ‘superior’ products. Customers were no longer sure of the quality of Thorntons chocolate and as a result, sales performance was impacted. Although by offering a wide range of products Thorntons could have possibly appealed to a greater number of consumers (including teenagers and children), product offerings were not consistent and this demographic often preferred to stick with well known brands such as Cadbury or Nestle. Therefore, Thorntons’ image as a specialist “chocolatier” was seriously damaged.
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Whittaker’s is most trusted brand of chocolate in New Zealand. Whittaker’s headquarters are located at Porirua, Wellington, New Zealand. Whittaker’s was founded by J.H Whittaker in Christchurch. James Henry Whittaker worked in the British confectionery industry at the age of 14 and moved to Christchurch, New Zealand, in 1890. Six years later he started manufacturing chocolate confectionery, selling it directly to customers. In 1913, he established a partnership with his two sons, Ronald and James, based in Wellington. The business became a limited liability company in 1937, with third-generation Whittaker’s still the sole shareholders in the company. In 1992 the company formed J.H. Whittaker Australia Ltd.
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