Gabriel Chocolate Marketing Plan - Case Study Example

Gabriel Chocolate Marketing Plan Tutor Tutorial Time Team Name Student Name Student ID (1) (2) (3) (4) (5) Table of Contents Table of Contents 2 Executive Summary 3 1.0 Introduction 4 2.0 SWOT Analysis 5 3.0 Competitive Advantage and Positioning 7 3.1 Hand Making Production Approach 7 3.2 Natural Taste Retention 7 4.0 Marketing Objectives 8 4.1 Diversify the Consumer Base 8 4.2 Reduce Competition 8 4.3 Increase Revenue 8 5.0 Target Market 9 6.0 Product Strategy 9 7.0 Pricing Strategy 11 8.0 Place/ Distribution Strategy 12 8.1 Direct Owned Restaurants 12 8.2 Third Party Partner Outlets 12 9.0 Promotion Strategy 12 10.0 Conclusion 15 References 16 Executive Summary This report develops a marketing plan for the development of a new chocolate-coffee brand for the Gabriel chocolate Company. In this regard, the report argues that with the unique coffee and chocolate, blending, the brand will acquire an increased consumer base both domestically and internationally. Citing a discriminative pricing strategy in a range of between $15 to $20, the report argues that with the adoption of both direct and indirect distribution as well as mainstream and internet marketing, the brand reputation and recognition will be enhanced. Further, the report asserts that due to its unique value proposition and a growing Australian economy and tourism industry, the proposed brand is bound to be a success. Therefore, the report offers a viable approach through which Gabriel Chocolate Company will not only diversify its consumer base, but also establish a sustainable market competitive edge into the future. However, in order to make the proposed plan a success the organization must be ready to face a marketing, product acceptance and financial challenges decisively. 1.0 Introduction The Gabriel Chocolate Company has served the Australian market, especially the South West region, since 2011. In this regard, as a forum to develop a unique market approach, the organization adopted the process of bean to bar production system, manufacturing chocolate bars from individual bean sources such as Ghana and Venezuela. As such, the organization manufactures individual chocolate flavours branded, packaged, and marketed as per the beans origin. However, this report argues that the current marketing system and brand portfolio is not enough to guarantee future organizational development. This marketing plan focuses on a preliminary evaluation of the organizational internal analysis through a SWOT analysis tool from which the organizational competitiveness and unique attributes are deduced. Moreover, the report develops a critical evaluation on the proposed product offering, its pricing system, consumer base, as well as the proposed distribution system. Therefore, this develops a critical evaluation on avenues through which the proposed product will mitigate the established organizational weaknesses, overcome threats or take up the listed future opportunities. Finally, the marketing report develops a review of the probable marketing tools and approaches for the new proposed brand. In this regard, the report develops three sample notice advertisement posters 2.0 SWOT Analysis Strengths Weaknesses One of the strengths demonstrated by the organizational products is the use of the handmade chocolate products, an approach un-applied by others in the market. As such, this increases the organizational product quality. A second organizational strength is the different chocolate products, branding and packaging based on the beans origin. In this case, the separate packaging of each of the products allows for the development of a wide variety base of natural chocolate flavors from which consumers can select and choose from. In this case, unlike the other commercial competitors blending their coffee products, the organizational natural taste retention on each of the chocolate products offers it added market operation strength. A third organizational strength is its target market, focusing not only on the traditional chocolate consumer base, but expanding to explorers and new and potential consumer base by providing them with tuition and testing sessions and competitions through which new consumers are encouraged to try out the various chocolate flavors, thus successfully introducing and recruiting them into the chocolate products industry. Therefore, this offers the organizational the strength to increase and diversified consumer base, breaking from the traditional chocolate consumer base, as adopted by its competitors. Despite its operational strengths the organization has a wide range of weaknesses. One of the key organizational weaknesses is the reduced production rates. The adoption of the hand-making approach has reduced the mass and quantity of chocolate products produced by the venture. Therefore, this reduces the overall organizational earnings and profit capability. In fact, as compared to its market competitors, the organization fails to meet their production thresholds and consequently their profit earnings. A second organizational weakness is the low market and consumer base. In this regard, over its 3 years operations has confined its operations in the South West region. Consequently, this has denied the venture the desired opportunity to acquire and tap into the expansive Australian chocolate products industry. Therefore, the organizational development and expansion strategy confining it to the local and domestic market is a major limitation for the Gabriel Chocolate Company. Opportunities Threats The chocolate industry, both in the Australian and global market is steadily growing, offering increased market development and success opportunities for the respective stakeholders. On one hand, the increasing and growing Australian tourism industry presents an increasing opportunity for a growing consumer base for the venture. In this regard, a growing the industry, consumer base departing from the traditional domestic to include a foreign consumer base as well. An additional industry and organizational opportunity are in the proposed mass production approach. In this regard, increasing the organizational ability to increase its production ability as well as revenue gains for the product sales in the future. In addition, the market technology development offers an additional marketing and selling platform. In this case, besides relying on the physical market platform, the organization can market and sell its products through an online portal, thus allowing and reducing the forecasted internationalization and expansion costs across Australia as well as internationally. One of the existing threats to the organization is the rising raw material costs. In this regard, the high cost of production and acquiring the cocoa beans from the organizational supplier risks reducing its profit margins and thus its return on investment threats to its shareholders. Moreover, an additional threat is on the Australian free market policy that exposes it to the risk and threat of future market competition from new entrants. Therefore, in order to mitigate this threat, the venture should consider diversifying and expanding its market consumer base. 3.0 Competitive Advantage and Positioning 3.1 Hand Making Production Approach A strategic evaluation of the organizational internal analysis, this marketing plan deduces a descriptive evaluation of the organization’s, operational competitiveness as well as its current market positioning. On one hand, key among the organizational competitiveness is its production approach. In this regard, its hand made chocolate production model increase the ventures market control and influence. In this case, this is compared to other commercial organisations that do not apply the approach. Therefore, the exemption that the organization applies a unique chocolate manufacturing process offers it a strategic merit and market competitiveness in the market. Thus, this endears the organizational products to the consumer base as compared to its industry competitors. 3.2 Natural Taste Retention On the other hand, the organization has a competitive market advantage in that it does not blend its chocolate products. Unlike other commercial producers who blend the various chocolate products, the organisations natural appearance and testing of its various chocolate products, it offers a natural appeal to a consumer base with a desire to explore on chocolate brands. Therefore, this approach offers the organization a competitive edge in its consumer base diversification in that the product attracts new consumers learning about chocolate products or exploring on the existing natural tastes and varieties across the globe. Finally, this plan establishes that due to its discussed competitive advantages over peers in the Australian market, the organization has established and positioned itself as a unique chocolate products supplier across the Australian market, earning an increasing brand reputation likely to fuel and support the organizational strategic goal and objective of expanding and developing into the global market. 4.0 Marketing Objectives 4.1 Diversify the Consumer Base As Harker and Zenios (2000, p. 157) one of the strategic organizational approaches to develop a competitive market edge is through consumer base diversification. As such, the proposed product development and brand marketing are geared towards a wide range of marketing objectives. On one hand, the proposed brand development will diversify the consumer base for the Gabriel Chocolate organization. In this regard, the proposed product will help increase the organizational consumer base. As such, the blending of chocolate and coffee will expand the organizational market form the chocolate lovers of coffee and adventure loving consumer base. Therefore, this will serve in satisfying the organizational needs and goals to expand the consumer base into the future. In fact, this will serve as a strategic approach and an avenue through which the organizational goal and need to expand onto the international market will be based. 4.2 Reduce Competition The proposed product and brand development will serve as a market diversification approach with which the competition, concentration in the Australian chocolate industry will be offset. In this regard, although still at the growth stage, the Australian chocolate industry competition is increasing by the year. Consequently, it has become imperative that organisations diversify their market base. Thus, through the development and adoption of the new product base, the organization will mitigate the competition concentration threat in the Australian market. 4.3 Increase Revenue Finally, the development of the proposed product brand, the organization will increase its revenue streams. In this case, with increasing costs of production and reducing profit margins, it is ultimate that the organizations develop additional revenue streams as an approach to increase overall revenue gains. In this case, the development of a new brand, in addition to the existing organizational products will enhance its gains and competitiveness in the market both in the short and long run periods. 5.0 Target Market The proposed new Gabriel Chocolate product is focused on targeting the increasing working class Australian population. Over the last decade, the Australian population has experienced a growing economy, leading to a growing middle and upper class society. In this regard, the leisure industry in the market consequentially developed owing to increased earnings. Moreover, the tourism industry, due to the expansive Australian beaches has grown over the decades, attracting a wide range of both international and local tourists. Therefore, based on this understanding, the proposed brand product is the domestic market, whose increased leisure activities allows for the testing and trying out of new and innovative drinks. As such, it is expected that with the adventure-culture in the industry, launching a non conventional product would attract a wide domestic market. In addition, as highlighted, the venture proposed product targets the growing global tourism industry in the market. In this case, beside the known Australian wine industry that attracts a wide global following, the proposed product will seek to introduce a new product to the incoming tourists. As such, this will increase their adventure in Australia a virtue likely to increase their overall tourism satisfaction. Spennemann, Clancy and Thwaites (2007, p. 241) stated that when on leisure, tourists are increasingly receptive of new innovative and unconventional products rather than the traditional products in the industry. Therefore, through the development of the unique brand, the venture will successfully target and capture this consumer segment. With increasing globalization and technology developments, the Australian tourism industry is bound to expand and grow into the future, thus expanding the product base exponentially into the foreseeable future. 6.0 Product Strategy The main product value proposition is its design in combining the coffee and chocolate flavours. In this case, the product design is informed by the wide and growing consumer base in the Australian market. In this regard, the brand development is based on the organizational strategic goal as listed on its analysis, which involves the future development of unique chocolate coffee nibs where coffee beans will be covered by chocolate flavours manufactured by the organisation. Under its production process, the organisation develops chocolate nibs and markets them under the design size of 100g and 50g packets. Similarly, the proposed chocolate-coffee nibs product seeks to design and package its products at 100g packets based on the covering chocolate brand. Further, the brand intends to retain the organizational culture of ensuring the retention of natural coca beans taste based on their origin. Therefore, the brand will have many product lines all branded based on the cocoa beans used to cover the coffee beans origin, as a measure to retain the organizational strategic natural taste philosophy The development of this new product will increasingly appeal to the consumer base through the adoption of a familiar organizational packaging approach. In this regard, the cost of a new marketing strategy is always high for any organization in the market (Ferrell & Hartline, 2011, p.24). However, if the organization rides on the existing packaging and design already in place, the concept of familiarity and design trust will boast the new product sales and absorption in the consumer base. After all, the current Gabriel Chocolate product designs and packaging have been lauded as among the most sophisticated and appealing in the Australian chocolate products industry. 7.0 Pricing Strategy As argued under the product description and analysis, the product brand will have different product varieties based on the available organisational product lines. In this regard, the organisation will apply a discrimination pricing approach. In this case, as Jobberand Shipley (2012, p.649) stated, a discrimination, product approach is based on the charging of different prices for different products to different consumer segments. Therefore, beside charging unique chocolate flavours unique prices based on the cost of production and manufacturing for each flavour, the organisation will have a unique domestic market price, different from the international price charged on its products upon internationalization and development onto the international platform. In this regard, based on the flavour and the unique brand production process, and appeal in the market, the venture will charge between $15- $20 per package. In this regard, the price is realistic in that it will help cover the production costs for the applied chocolate flavour as well as the used coffee beans. Moreover, the difference margin will serve as the profit gain for the venture operations to make it sustainable. Although relatively high, the recommended price range is affordable to a wide range of the Australian population. In this regard, with registered and forecasted future economic growth and development, the Australian population will afford the recommended prices. Further, this price is developed based on an evaluation of competitors who charge chocolate nibs and coffee bars at an average $11-$13 price range. Therefore, the combined chocolate and coffee flavour price range offers an additional value for money justifying the added price value. 8.0 Place/ Distribution Strategy 8.1 Direct Owned Restaurants The distribution practice is an imperative tool in the marketing mix. In this regard, the process includes the process through which the organizational products are availed to the consumer base. In this regard, in order to distribute and avail the proposed product brand, the organization will rely on two distribution models, both the direct and indirect distribution channels (McDaniel, Hair & Lamb. 2014, p.24). On one hand, under the direct distribution channel, the organization will establish mobile restaurants serving the chocolate-coffee blend along the Australian beaches. In this regard, the process will enhance the development and generation of a brand reputation and contact with the consumer base. Therefore, through the established consumer relationships, the organization can acquire and develop a reputation and approach through which to acquire the consumer’s response and feedback. In the process of a product development and market introduction, it is imperative to obtain consumer feedback that offers the basis for brand development, improvement and challenges elimination. 8.2 Third Party Partner Outlets On the other hand, the proposed brand will be availed to the consumer base through third parties. In this regard, forward market integration alliances with the coffee industry stakeholders in the Australian market such as Nescafe among others, will enable such stakeholder’s stock and sell the proposed product. In this regard, through the third party business models and market reputation, the product expansion and spread across the Australian market will be increased. As such, the adoption of both the direct and indirect distribution approaches recommended in this marketing plan will increase the organizational proposed brand market competitiveness. 9.0 Promotion Strategy Besides developing a relevant and appropriate brand with the relevant market oriented features and value proposition, marketing is an ideal product mix that increases an organizational brand value. In this regard, based on this understanding, the proposed product will be marketed to its relevant consumer base through a wide range of avenues (Ross, 2004, p.700). On one hand, the organization will rely on third party marketing through liaising with the coffee industry stakeholders in the Australian market. As such, the product will be marketed through riding on the coffee stakeholders own unique marketing platforms riding on the developed respective organizational brand reputations across the market. The adoption and application of this marketing approach is based on the understanding that with each organization pooling its own consumer base, multiple organizational marketing will increase overall consumer base attraction for the proposed new product. In addition, besides relying on the third party marketing, the organization will adopt and apply its own marketing through which advertisements will be adopted. As such, such adverts will be secured and placed within the Australian mainstream media as well as through the social media and the internet platform. In this regard, the adoption of this approach will ensure that the organization develops a relationship between it and the consumer base as the chief and main brand producer in the market. The poster below illustrates a sample for the proposed chocolate-coffee brand marketing campaigns Gabriel Chocolate-Coffee  Background Gabriel Chocolates, a leading Australian hand made chocolate manufacturer, has developed he all new and exciting chocolate, coffee brand that revolutionizes the beverage drinks market.   Work Hours The organisation offers full time services both on a restaurant and outside catering services for individual and corporate consumers. Restaurant open 7 days a week from 10am to 9pm Please visit and contact us within this hours for efficient and timely quality services. Our Location Located on the Corner of Caves and Quininup Roads,   Brand Features The brand offers a unique and unconventional approach to the beverage industry. It offers you the excitement of a chocolate experience as well as the stimulating coffee effect for an active day ahead. Low fat and calorie content, making it health conscious. Brand Varieties Ghana chocolate, coffee Venezuela chocolate, coffee Ecuador chocolate, coffee Contact Us Tel: 089756 6689  Website: www.gabrielchocolate.com.au 10.0 Conclusion Despite the viability of the above developed marketing plan. The organization is likely to face a number of challenges in the plan execution system. One among them is acquiring a reliable coffee beans supplier. In this case, in order to match the chocolate diversity, the organization will require conducting a global supplier evaluation, appraisal and selection process to acquire equal coffee bean diversity in its product base. In this regard, the venture will face a time bound challenge as well as increased financial spending that will require a relevant cost benefit analysis to assess viability and relevance. In addition, the plan is bound to face a challenge in evaluating and selecting the relevant coffee industry stakeholders to partner with in selling and marketing the proposed brand. Therefore, challenges in partnerships failure and retention costs could be high initially. However, these costs and mutual understandings will be developed in the long run, thus reducing the operational costs. References Ferrell, O. C., and Michael D. Hartline. 2011. Marketing strategy. Australia: South-Western Cengage Learning. Harker, Patrick T., and Stavros Andrea Zenios. 2000. Performance of financial institutions: efficiency, innovation, regulation. Cambridge, UK: Cambridge University Press. Jobber, David, and David Shipley. 2012. Marketing-orientated pricing. European Journal of Marketing 46, (11): 1647-1670 McDaniel, Carl D., Joseph F. Hair, and Charles Lamb. 2014. MKTG 8, South Western, Australia. Ross, D. F. 2004. Distribution: Planning and control : managing in the era of supply chain management. Dordrecht: Kluwer Academic Publishers Group Spennemann, Dirk H. R., Laura Clancy, and Rik Thwaites. 2007. An exploration of the public face of indigenous cultural tourism in the Australian media. Journal of Vacation Marketing 13, (3) (07): 239-259 Read More