This is a solution of Marketing Environment Strategy At Haighs in which we discuss comparison with marketing mix of competitors with haighs chocolate company.
COMPARISON WITH MARKETING MIX OF COMPETITORS
The main competitors of the company include Nestle, Cadbury and Mayfield Chocolates with all the companies operating in a highly competitive food processing industry. The giants like nestle operates through providing a wide range of products such as baby food, breakfast cereals, chocolate drinks, packaged water, etc however the Haighs operates only through choclteand its variants (Emmanuel, 2008). The companies like Nestle and Cadbury provide the products at global levels and the products are mostly sold through distribution network including retailers and wholesalers however Haighs chocolate is restricted with regard of the operations mainly focused at Australia and not having huge customer base like that of its competitors. Haighs chocolate is distributed through integrated supply chain and only 5 % of the products are distributed through the use of wholesalers. The company products is available on the company stores mainly and the company operated tourist centers while the competitors products including Nestle and Cadbury are available globally through various channels like malls and local grocery stores and the use of company specialty stores in distribution is limited. Haighs operates through a highly integrated supply chain which is not the case with the competitors. The pricing of the Haighs is done so as to target the premium class of customers while the customers of companies like nestle exists in all the classes of the society and they provide different products suitable to different geographies and different products are launched t target the different segments of the society.
SWOT ANALYSIS AND POSITIONING
Strengths- the company is operating successfully since 1912 and thus owns a strong brand image and presence. The high quality products are provided by the company. The company provides the customer delight by providing a huge collection of chocolates in different flavors like liquor chocolate, milk chocolate, etc in attractive gift packaging. The flagships brand of chocolates like ‘Easter Billy’ is a boon to the company. The company works towards strong connection building with the public by tour to the factory to see the manufacturing process. Also the company owns highly skilled employees and low labor costs are involved in its operations (Davenport, 2010).
Weaknesses- the company is unable to expand the market shares despite of continuous efforts. Also the company does not own the certification for the fair trade practices. The company operates through business units that are pretty small in size and operations.
Opportunities- Sales through online and e commerce based platforms is providing opportunity to expand the sales to newer markets. The company can develop the market share by expanding in to global markets. Company can provide gift vouchers and rewards to the customers and employees to improve sales and performance. The growing income levels of people at Australia and elsewhere in the world provide market expansion opportunities and increasing demands.
Threats- tough competition from confectionary and chocolate giants like Nestle, Cadbury, etc and growing health concerns amongst people in the society affecting sales. Also the company lacks the necessary storage infrastructure especially for the perishable products. The company operates through a weak technology which causes problems and also the prices of the raw products including cocoa is soaring.
Low Quality High Quality
The company is placed as shown in the situational chart with high price and high quality in the market and thus is targeted mostly at the premium segment of customers including Family customers who buy chocolates for gifting on occasions or to celebrate and the youngsters or couples buying on occasions like valentine’s day, etc.
RECOMMENDATIONS FOR HAIGHS
The company has a huge untapped market for its products which needs to be targeted through increased operational levels and support of online media based sales. The company products are appreciated for a variety of tastes and flavors throughout Australia and the brand is synonymous with quality and great taste of the handmade chocolate. But the company must focus on increasing its market share by widening its supply chain and distribution network and look for new markets in and outside of Australia. The pricing of the products like gift packages for special occasions could become competitive and the company must introduce a standard range of chocolate to beat the heat of competition from giants like Cadbury. The company brand success is based on cocoa which they get in raw state directly from the places of origin like Ghana and Peru thus the company must focus on specializing in other relevant raw materials like coffee and diversify its product portfolio.
The company may expand in to geographies where the demand for high quality chocolates is high as the chart suggests the major consumption markets of chocolate. The company must focus on expanding its product portfolio by either entering into other market segments like children and designing products for them or the company must focus on its specialization in cocoa and enter in to new geographies to tap the potential of vast uncovered markets. The company must focus on the improvement of the infrastructure particularly in relation to storage of perishable products. Also the company must go beyond its 14 polished and well managed stores in Australia and look for a better distribution strategy. The company may focus on cosmetics or pharmaceutical where the raw ingredient is cocoa which the company specializes at, as the figure below suggests.
The company must contribute to the community of Australia and must step forward to participate in activities to preserve the environment for future generations. The company must provide a share of their profits to the suppliers of raw cocoa at Ghana, New Guinea and Peru from where the company obtains its key ingredient cocoa and which is the base for its success (Corina, 2013). Also the company must act as a responsible social citizen by promoting health, education and well being of people in the society. By taking steps towards sustainability of the business and showing environmental concerns, the company can make the customers pay premium prices for buying products that are eco friendly in terms of packaging and operations.
The confectionary business is getting highly competitive with the entry of large number of firms in the market. Chocolate market of Australia is dominated by manufacturers like Haighs, Nestle, Cadbury and Mayfield Chocolates. In order to increase the market share in the chocolate industry the company like Haighs must use various sales promotion and promotional techniques apart from providing delivery to the global markets through the use of online media. Focusing on just a single market or geography can lead to significant reduction in market shares due to lesser barriers to entry in the industry and increasing number and quantum of competition. Thus developing newer markets and segments within the same market can prove beneficial for a company like Hiaghs in order to provide growth to the business.
- “Our company history”. Haigh’s Chocolates.(2015) online available at haighschocolates.com.au last accessed on 20 May 2016
- Sourcing the best (2011) online available at https://www.haighschocolates.com.au/ Last accesses on 20 May 2016
- Davenport, T. H. (2010) Mission Critical: Realizing The Promise Of Enterprise Systems, Harvard Business School Press, Boston, MA, USA, pp 302-33.
- Emmanuel, O. (2008) Effects of tempering and fact crystallization behavior on microstructure mechanical properties and appearance in dark chocolate systems. Journal of food engineering. Vol. 89, pp. 128-136
- Dent, H. S. (2008) The Great Depression Ahead: How To Prosper In The Crash Following The Greatest Boom In History, Simon & Schuster, Inc., New York, N.Y., USA, pp 37-56.
- Festa, J. (2012). Chocolate and wine: A perfect pairing in South Australia’s Adelaide hills (online) available at. haighschocolates.com.au Last accessed on 20 May 2016
- Specialty chocolate stores in Australia: Market research report.(2015) Online available at com.au. Last accessed on 20 May 2016
- Sweet success (2012) online available at http://citymag.indaily.com.au/commerce/business-profile/sweet-success/ Last accessed on 20 May 2016
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