Marketing Environment And Strategy Of Haigh's Chocolates Reports Examples

Type of paper: Report

Topic: Company, Business, Products, Market, Customers, Competition, Strategy, Marketing

Pages: 10

Words: 2750

Published: 2021/02/11

1.0 Executive summary
The paper analyzes and evaluates the strategies and marketing environment of Haigh's company. It forms a basis of the company's vision of becoming the most successful and the top provider of chocolate in the entire country. The marketing strategies adopted by Haigh's group are correlated with other companies that comprise the major competitors in the chocolate market. This paper focuses on the long lasting strategies incorporated in the practices that are performed by Haigh; importantly they work to maintain an environmental friendly company. The company has established a unique approach towards attraction of their customers. Starting at the outlook of the product to the eyes of their consumers and the services offered to their customers. This company is the oldest owned and managed family entity. As a result, it must work to ensure that they create a positive perception towards their customers on their products. The company has grown and established to edge other competitors from the market; they have emerged the best sellers making the highest percentage of profits and market shares compared to their competitors. Importantly, all the competitor strategies and applies one aspect of the market mix with an aim of ensuring that they remain a notch higher in the competition matrix. Lastly, the paper provides an elaborate and efficient recommendation that Haugh can implement to perfect their marketing environment and strategies. There are several recommendations that shall be outlined and discussed in details. The portable recommendations include re-designing their products to fit the demographics of the consumers, to establish constant report showing the progress and additional of the existing promotional activities currently available in the market. In addition, the company should reach out to more customers by establishing distribution stores direct to their customers to improve their accessibility.
2.0 Introduction
Haigh's is the oldest chocolate producers in Australia, having opened its doors of operation since 1917. Remarkably, it has established a new customer experience through the quality and unique products they offer to them. The company has employed approximately 500 workers in their factory. In addition, they have established 14 retail stores widely distributed in different regions but mainly concentrated in Adelaide, Melbourne, and Sydney. The purpose of this paper, however, shall be to focus on the marketing strategies put in place by Haigh as an independent entity. Similarly, the report shall evaluate extensively on the current sustainable practices being practiced by the company and any possible future practice that may positively impact the company growth in market share and profits. In order to compare this group with other competitors, a marketing mix that includes price, product, place and promotion shall be analyzed in details. Lastly, the SWOT analysis of the business shall be carried out. This is carried out with a purpose of establishing the position of the company in the market and forecast on the company's future prospects. The marketing strategies of the company shall also be demonstrated and examined; this will be carried out through the construction of a positioning map.
3.0 Marketing Background Information
Haigh is an Australian based company with retail stores established in the different parts depending on the demand and supply. It has ventured into chocolate manufacturing business and has been operating since 1915. Currently, it has embarked into the internationalization of their market, and they have put various strategies for that purpose. Despite the changes in the market dynamics in terms of competition and market share, the company has not changed much but it is working on providing more and better products to their customers. The company's website is attractive, and constant updating is always carried out to ensure that their potential customers are regularly updated. This is one of the primary marketing strategies that this company has embarked on; it is also building on creating an online portal that will help the company to engage on E-commerce. In addition, the company offers free gifts to their clients, they are provided as a subsidy or as a top up after purchasing a certain amount of chocolate. The company has retail stores in different parts of Southern Australia including at Sydney. The retail outlets act as stalls where their products are displayed and sold to their potential customers. Due to their easy accessibility, customers are conversant with the goods offered, and when the need arises, Haigh will be the priority to purchase chocolate products.
3.1 Sustainable Practices
Sustainable practices are practices adopted by a company with a purpose of strengthening their customer ties by creating a harmonious existence with the environment (Despeisse, Mbaye, Ball & Levers, 2012). They are better practices that ensure their satisfaction and evoke to them a desire to come again for more products. The company is comprised of a workforce that is highly trained and experienced. In addition, the company has secured modernized manufacturing equipment's and techniques to cater for the increasing needs of high-quality chocolate by their customers. There are several sustainable practices that have been put in place by the company; they include unique and attractive packaging practices, environmental preservation, and good ethical practices. Sustainability is also vital to the brand itself since the customers are more interested in the value the company creates to them. They also support the company’s environmental preservation initiatives. This was clearly elucidated in 2012 when Haigh facilitated a campaign aimed at promoting their commitments to the environmental protections (Evans, McMeekin & Southerton, 2012).
3.1.1 Packaging
Haigh’s chocolates are uniquely packaged with a purpose of distinguishing them from their competitors (White, Wang & Li 2014). However, quality is usually the first consideration rather than the packaging; it is more important to their customers since the appearance should tally with what is packed. The company has been focused on minimization and sustainability of the packaging choices available at their disposal. Sustainable Packaging Guidelines stipulates the principles that can be incorporated in the design, selection and planning of the packaging strategies. The company has focused on two categories of packaging that are seasonal and standard range. Packaging is altered depending on the time of the season. The design and the color used in the packaging boxes are occasionally changed. The range of packaging strategies is obtained from the suppliers who frequently work with Haigh to create the uniquely branded products. The seasonal packaging approach is useful since it provides an excellent opportunity for testing new products in the market and utilizes the opportunities created by the new packaging products.
The company has also adopted the standard design, in this approach; the packaging used is rigid and does not frequently change. For the past five years, the design has not changed much. Additionally, there is a lot of similarity for the past ten years on the methods used for packaging (Epstein & Buhovac, 2014, 23). The traditional methods of packaging provoke the identity of the company; it is a distinguishing factor between Haigh and other chocolate manufacturers. The white presentation boxes are prepared by the power of the hands as opposed to the ones offered by their competitors that are a machine filled boxes. The sustainable packaging guidelines ensure that there is s consistent review that is carried out to ensure that the packaging applied is integrated into all the life events.
3.1.2 Efficient Collection and Recycling of Packaging
Haigh’s has over the years been involved in the process of recycling and reusing the packaging that they use for their products (Beske, Land & Seuring 2014). The company is always committed to ensuring that through this process they maintain a sustainable environment to all. The efforts to recycle have been integrated into all the company's outlets and in the central manufacturing plant by putting into operation recycling methods and systems. This system is continuously reviewed due to the workforce changes to ensure the effectiveness of this program. The company has embarked in enacting a policy that facilitates buying and selling of recycled materials. However, the purchasing processes had been informal previously; as a result the company has been working on formalizing the processes to ensure that the policy is implemented. The executive level managers have been focused and supportive of the program, the only action remaining is the formalization of the system. The choice that has been taken by the company for the suppliers can confirm the genuineness of the company to formalize the plan (Dubuisson-Quellier 2013). Buying and selling of recycled materials is a good approach to ensuring sustainability in the environment. In addition, it is a good strategy of increasing the company’s revenue while at the same time reducing the costs of production.
3.1.3 Product Stewardship
In the chocolate industry, Haigh’s company has been a leader in enhancing the development of sustainable packaging solutions in the chocolate industry. Product stewardship by this company can effectively be demonstrated by the company established initiatives in developing a re-usable packaging, coming up with unique biodegradable packaging solutions and the act of maintaining the traditional minimal solutions. In addition, the company has participated in a series of educative programs with an aim of creating awareness to their clients on their initiatives. This has created confidence of the customers to Haigh’s, and they become more aware of the products available at the disposal. Social media has been used significantly in the initiatives of the company to create awareness among their customers. Similarly, printing media, brochures, and promotions have been useful in the promotion of communication (Rosen & Kishawy 2012). The suppliers selected to supply the cocoa used in the synthesis of chocolates must uphold the set code of conduct to ensure that the goods they supply are of the right quality. The initiatives to control the supplier selected are meant to ensure that they uphold the health standards, the environment of the organization that includes the labor force, human rights, business ethics and the market dynamics.
4.0 Marketing Mix
The marketing mix is made up of four elements commonly referred to as the 4p’s; they are product, price, promotion and placement (Huang & Sarigöllü 2012). Each element is crucial in creating a unique position of the company in the market thus enhancing the creation of the company's identity. The first part product identifies the design and innovativeness used in the development of the product; it cites the differences between the products with others to show diversity. Price determines the cost of production and the amount of profit targeted; price is the amount payable by the consumers in the market. Promotions are a set of strategies which facilitates the communication with the customers and create awareness of the presence of the product in the market. Placement resembles the distribution process and is concerned with the way the companies uses the channels that are helpful in ensuring the availability of goods and services directly to the customers.
4.1 Product
Figure 1: The haigh’s product
Source: Huang & Sarigöllü (2012)
Haigh’s is one of the many retailers in the world who have focused in processing premium chocolate from the raw cocoa bean (Mintz & Currim 2013). This company believes in quality for their products and as a result they seek for the best raw materials to reciprocate with a high-quality product. They sources from the best cocoa beans in the world and later in their factory they process the beans to form liquid chocolate. The company continues to apply the traditional methods of manufacturing while ensuring a stable quality of their products; this is enhanced by carrying out a batch method cooking. More than 20 batches of chocolate are produced every day with an aim of ensuring that the company has the freshest products newest products for their clients at all times. In order to edge out other products from their competitors that are produced by utilizing machines, the company has resorted to handmade chocolate. The process is carried out by hand-foiling then Easter eggs, hand dipping the truffles and hand marking individual chocolates to identify loose endings. Haigh has introduced more than 20 brands of chocolate to choose from and hence all the potential clients will be contented by the products offered by the company since they value the taste buds of every person. Every year, the production team comes with a brand new chocolate design, fresh in the market and fulfilling all the customer’s needs.
4.1.1 Product Portfolio
Figure 2: Product Portfolio
Source: Mintz & Currim (2013)
Haigh provides a variety of products with an aim of meeting the diverse needs of their consumers; the chocolate types are reviewed yearly depending on the customers' demands. Importantly, the products are of different sizes and ingredients; all are for the purpose of ensuring that their clients are happy with the products offered to them (Boon & Liang 2015).
4.2 Price
Marketing is one of the crucial marketing mix element that every company must put into consideration on the verge of ensuring that they retain their market share. Effective pricing strategies will determine the company's profits and the subsequent costs of production. Haigh’s company has adopted a premium pricing strategy. In this strategy, the company averages the prices of their products, a price that is not extremely small or high (Bahadir, Bharadwaj & Srivastava 2015, 45). For the purpose of setting the correct price of their products, the company has top carried out a thorough research on the prices set by other players in the market. In addition, the company incurs a 165% tax for importing their chocolates to UK thus they have to alter their pricing strategies depending on the regions they are operating.
4.3 Promotion
Development strategies are meant to improve the perception the customers have against the company. Promotion can be a good way of improving the understanding of the clients to consumption of a particular product. Haigh’s has embarked on a series of development strategies as a way of marketing their products. The development process is carried out through as process of reaching the potential clients. One of the promotion approach taken is offering free gifts after purchasing an absolute value of products. The rewards are offered as an added appreciation to show the company’s appreciation to their clients (Awan, Salam & INAM 2015). In addition, education and training are vital to the success of any organization; this is facilitated through reaching the potential buyers. Training processes includes workshops, seminars social and the print media. In these forums, the company gets a chance of advertising their products and awareness is created. The company has introduced 14 retail stores that are directly connected to the customers and as a result service delivery is eased by the easy accessibility of the retail shops.
4.4 Place (distribution)
The market that Haigh is intending to target is full, many people consumers chocolate nevertheless of their age or background. The prominence and the credibility the company has already set will be of benefit to the venture into the market since these qualities shall be associated with the chocolate brands. In addition, there are more than 14 retail outlets that the company has already established which stocks more than 11 brands of chocolate (Mintz & Currim 2013). The market is already segmented in some places and clustered in some regions. As a result, Haigh is expected to create a high position and make the consumer minds to concentrate on the company as the sole high-quality chocolate distributor in the entire market.
5.0 Competitors
As illustrated in the positioning map, there are two types of competitors of Haigh’s in the chocolate industry which are direct or indirect competitors. Direct competitors include Godiva and Charbonnel ET Walker. On the other hand, indirect competitors include the Selamlique and Jerry Berry. The existence of the competitor’s in the market is advantageous to the consumers since the products offered are of high quality. It is important to take keen interest in all the market players since they all have an important role in the market dynamics and to their customers (Morris & Koleszar 2015).
5.1 Direct Competitors
5.1.1 Product
The products from the different companies have maintained their uniqueness with a purpose of distinguishing themselves from similar products available in the market (Mitchell & Dalgic 2015). However, it is important to note that the ingredients are similar; the only notable difference is the packaging methods used. Apart from Haigh, all the other companies have modernized their operations and as a result they no longer utilize the traditional methods of production. In terms of sustainable development, the companies have embarked in different social undertaking aiming at boosting their image to their customers and create a positive perception of their products to all their clients. Environment conservation strategies have remained to be one of the aspects of much interest to the companies; they have enrolled in practices of ensuring that they recycle and use no biodegradable wastes.
5.1.2 Price
Indirect competitors are most likely to have a higher cost of production as compared to indirect competitors (Mintz & Currim 2013). However, indirect competitors the price range are standardized, and there are no disparities in pricing. Pricing is set by each company but before setting a price they carry out extensive research on the pricing strategies of other companies.
5.1.3 Promotion
Development strategies are also identical amongst the competitors; however, it is important to note that Haigh’s website and social media platforms are outstanding. They are the only one that are consistently updated and containing detailed information. In addition, all of them have established retail outlets where they showcase and sells their products.
5.2 Indirect Competitors
The indirect competitors are manufacturers of chocolate, but it is not their full-time business since they engage in other business such as selling of fast foods. As a result, they are not fierce competitors as it is the case with direct competitors. The two competitors Selamlik and Jerry Berry, however, offer their products at slightly lower prices as compared to Haigh them (Boon & Liang 2015). However, their quality is low as compared to the Haigh products, and this edges them out of the competition matrix. The reason these competitors are termed as indirect is because they do not target the same market as Haigh and the difference in the seriousness in establishing new markets.
6.0 Recommendations
There several recommendations that is suitable for Haigh in order to maintain their market share despite the increasing rates competition. The company has to review on their management and incorporate outsiders in their management. Diversity in management will facilitate new strategies of marketing to be suggested and implemented henceforth. The marketing team to be recruited should be knowledgeable and possess the necessary skills for effective marketing. The products need also to be redesigned and embrace modernity while refraining from the traditional methods of manufacturing. This will increase their output and consequently increase the company’s profits.
E-commerce is slowly overtaking the standard shopping methods, and soon it may overshadow it. Therefore, there is a necessity for Haigh to adapt E-commerce and incorporate it in their attractive website. This will increase their market share mostly among the young people who make the largest percentage of chocolate consumers.
7.0 Conclusion
Haigh remains the leading chocolate manufacturer in Australia, which is facilitated by the high level of quality and observance of the set sustainable practices. It is a fact that from this paper, Haigh products are considered environmentally friendly and takes an enormous interest in the interests of their consumers and the entire society. The company has embarked itself on several strategies aimed at promoting their relationship with the whole community. Their marketing strategies are well planned and implemented and, as a result, this has enabled the company to withhold its position as the best in the market running out all the other competitors. The company is still formulating new strategies to ensure that they will grow and develop to become a force to reckon within the entire industry.

Reference list

Awan, W. A., Salam, A., & INAM, S. G. (2015)’ The impact of marketing mix (5 Ps) elements on sales of UPS: A case of Karachi Market–Buyer’s perspective’.VFAST Transactions on Education and Social Sciences, 6(2).
Bahadir, S. C., Bharadwaj, S. G., & Srivastava, R. K. (2015) ‘Market mix and brand selling in global markets: Examining the contingent role of country market characteristics’. Journal of International Business Studies. 3(1), pp. 67-89.
Beske, P., Land, A., & Seuring, S. (2014) ‘Sustainability in the supply chain management practices and dynamic capabilities in the food industry: A critical analysis of the literature’. International Journal of Production Economics, 152, pp.131-143.
Boon, B. T. L., & Liang, T. W. (2015) ‘Firms’ Marketing Mix Effectiveness and Modes of Entry in the Host Countries’. In Proceeding of the 1998s Academy of Marketing Sciences (AMS) Annual Conferencing (pp. 474-474). Springer International Publishing.
Despeisse, M., Mbaye, F., Ball, P. D., & Levers, A. (2012) ‘The emergence of sustainable manufacturing practices’. Production Planning & Control, 23(5), pp.354-376.
Dubuisson-Quellier, S. (2013) ‘Market mediating strategies: How social movements seek to change firms' practices by promoting the new principle of product evaluation’. Organization Studies, 34(5-6), pp.683-703.
Epstein, M. J., & Buhovac, A. R. (2014) Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers.
Evans, D., McMeekin, A., & Southerton, D. (2012) Sustainability in consumption, behavior changing policy and theories of practice. New York: International University Press.
Huang, R., & Sarigöllü, E. (2012) ‘How branding awareness relates to marketing outcome, brand equities, and the marketing mix’. Journal of Business Research,65(1), pp.92-99.
Mintz, O., & Currim, I. S. (2013) ‘What is driving managerial usage of marketing and financial metrics and does metric use affect performance of marketing-mix activities?’. Journal of Marketing, 77(2), pp.17-40.
Mitchell, M., & Dalgic, T. (2015) ‘Towards an International Marketing Mix for Services’. In Proceeding of the 1997 Academy of Market Science (AMS) Annual Conferencing (pp. 227-232). Springer International Publishing.
Morris, M. H., & Koleszar, W. L. (2015) ‘The Dimension of National Cultures and their Implication for Consumer Behaviors and the International Market Mix.’ In Proceeding of the 1993 Academy of Marketing Sciences (AMS) Annual Conference (pp. 208-213). Springer International Publishing.
Rosen, M. A., & Kishawy, H. A. (2012) ‘Sustainability in manufacturing and designing: Concepts, practice, and needs.’ Sustainability, 4(2), pp.154-174.
White, G. R., Wang, X., & Li, D. (2014) ‘Inter-organizational green packaging designs: a case study of influencing factor and constraint in the automotive supply chains’. International Journal of Production Research, (ahead-of-print), pp.1-16.)
9.0 Appendix
SWOT analysis
10.0 Positioning Map

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