Marketing strategy fo the special dark chocolate bar
Unit 4 Individual Project 1Marketing Strategy for the Special Dark Chocolate Bar Victoria Rock American Intercontinental University Unit 4 Individual Project MKTG 205 – Principles of Marketing
Unit 4 Individual Project 2 AbstractThe marketing strategy for the Special Dark Chocolate bar is presented. The bar will bepositioned as a premium product and targeted towards adult consumers. The health benefits willbe used to position this bar as a healthy but tasty product. It will be distributed through channelsthat will support its premium positioning.
Unit 4 Individual Project 3 Marketing Strategy for the Special Dark Chocolate BarIntroduction Marketing strategy and decisions are decided on the basis of internal and externalenvironments of a company or organization. Because of this it is necessary to make someimportant and effective marketing decisions. This paper will examine the different concepts ofmarketing strategies and decisions as well as explain the importance of research and the impactof change in environment on the decisions made.Definition of Marketing Marketing can be described in many different ways depending on which resource you areusing. In the International Encyclopedia of Hospitality Management (2005) describe marketingas; "The process of planning and executing the conception, pricing, promotion, and distributionof ideas, goods, and services, to create exchanges that satisfy individual and organizationalobjectives." The Macmillan Encyclopedia(2003) explains it as; "The process of developing amarket for goods or services based on market research." Even our own text book, Marketing(10th Ed.) by Kerin, R., Hartley, S., and Rudelius, W., describes it as; "the activity for creating,communicating, delivering, and exchanging offerings that benefit the organization, stakeholdersand society at large." From the above definitions we would have to say that Marketing is fulfilling the needs of thecompany while providing for the stockholders and fulfilling the consumer’s needs and demandsand at the same time providing a means of profit for the company.Introduction of Product/Service
Unit 4 Individual Project 4After much thinking and debating, I decided to do my research on the chocolate bar, particularlythe Special Dark Chocolate Bar produced by the Hershey Company, due to the fact that thiscompany has been around since 1894 and will probably be around for many more years. (Food:Company Spotlight; Hershey, 2010) By introducing this product as a heart healthy productalthough may be challenging, due to the beliefs that chocolate is not good for you; it would bebeneficial for the company to inter into the phase of healthy eating.Situation Analysis -- Marketing Environment Forces Impacting Product/Service In the chocolate bar industry there are three marketing environment forces that will have animpact on the chocolate bar, they are: price of cocoa for making chocolate, cost of transportation,and competition of the market. Price of Cocoa for making Chocolate: The price of the resources are going to make a difference in the ability to make a product that can be priced in a competitive market environment, Taking into account the economy and cost of resources, the pricing is an important part of the product and appeal to the target markets. Pricing of resources may make lower grades of coca more attractive, but the competition may be a key into how much one is willing to sacrifice in terms of product quality or pricing. (INDUSTRY PROFILE: Candy Manufacturing, 2012) Cost of Transportation: Due to fuel prices rising, adjustments will have to be made to cover costs. What most likely will be part of the pricing consideration would be making sure that the product arrives in good condition and a timely manner because it will affect the products reception as well as how it is perceived by sellers and buyers. (INDUSTRY PROFILE: Candy Manufacturing, 2012)
Unit 4 Individual Project 5 Competition of the Market: Competition makes pricing and placement considerations very important. Too much market saturation can mean prices have to be kept low or placement costs on shelves may be to high. With there being so many different kinds and flavors of chocolate bars already in the market, placement will be a key in attracting the eye of buyers. (INDUSTRY PROFILE: Candy Manufacturing, 2012)Marketing Strategy: Target Market(s) & Positioning When it comes to influencing buyer behavior with candy bars there are really two things thatmay have an influence on the buyer; personal choice and psychological. Face it, everyone hastheir favorite candy bar they like to eat being Hershey, Snickers, Mars, etc., so personalpreference is a big thing with candy bars. But did you ever think of why when you get to theregister you may see a display of candy bars? That is where I believe the psychologicalinfluence comes into play. For example, you stop at your local convenience store to fill up withgas and when you walk in to pay, not even thinking about buying a candy bar, your eye catchesthat display of sugar satisfaction right there in plan site, so you reach over and grab one andplace it on the counter to be wrung-up with your gas. Many candy companies know of this buying habit and they either get the company to place adisplay right there in front where the consumer can see it in plain site or even pay to have theirdisplay placed there in order to play on the psychological aspects of the consumers mind in orderto boost the sales of their product and therefore make a profit. By being consumers ourselves we as marketers know how the consumers think and we needto use this to the advantage of the company we are working for to help in the promoting andsales of the companys products.
Unit 4 Individual Project 6Product/Service Overview and Strategies to Consider Hershey has been around for more than 100 years and is known for having the best flavor aswell as being an American icon, (Food: Company Spotlight; Hershey, 2010) so why shouldntthey continue their success in the health industry with their Special Dark chocolate bar. Unlikeother types of chocolate bars and candy companies that focus on the young, Hershey can be theone known for looking out for the health of others as well. It would be good for them to helpspread the word about the health benefits of dark chocolate, (Marano, 2011) the package of thiscandy bar can be simple with maybe a slogan such as; "The Sweet Sensation for Your Heart". Itcan be promoted as being the chocolate bar for adults, while at the same time getting the kids towant it because if you have kids, you know they always want what their parents have. By dongthis we will be helping in promoting good health while at the same time increasing sales.Placement of this product should be with all the other chocolate bars as well as displays byregisters and at the same price as other chocolate bars. (Market Segmentation, Targeting, andPosition, 2011)Pricing Strategy There are many factors that affect pricing strategy such as marketing and manufacturing cost,competitions price, as well as consumer perception of the product, to name a few. (Kerin,Hartley & Rudelius. (2011))When it comes to chocolate bars however, they have always pretty much sold themselves formany years no matter what the price was. If you think about it, chocolate bars were first sold for10 cents in the early 1900s and now sell for over a dollar in many areas.
Unit 4 Individual Project 7 Being that we are marketing a new healthy dark chocolate bar for adults, we will need toadopt a pricing strategy that will allow us to penetrate the market in order to attract consumers toat least try the product at least one time. Once the initial launch period is over and hopefullysuccessful, we would then adopt a competitive pricing strategy that will price our product in-linewith other competitors, to ensure that no customers are lost due to higher pricing.Distribution Channels Organizations and companies use distribution channels to bring their products to market andthe consumer. (Managing Market Channels and Wholesaling, 2011) A distribution channel is amethod of interdependent organizations which helps the marketer delivers their products to theconsumer. Because of it being part of the marketing mix, it can be direct or indirect. Due to theexpanded use of the internet, companies and organizations are able to sell their products directlyto the consumer leaving the middle man out thus reducing their cost. Indirect distribution usestwo or more level of channels before reaching the consumer. Some of these channels includewholesalers, retailers, agents and brokers. Companies us the indirect distribution best suited fortheir product in order to obtain the vest market share allowing them to focus on producing theirgoods. (Managing Market Channels and Wholesaling, 2011) There are various kinds of channel organizations: Vertical Marketing System: In this structure producer, wholesalers, and retailers act as a unified system and one channel member owns the other. Horizontal marketing system: In this arrangement two or more companies join together to explore more market opportunities.
Unit 4 Individual Project 8 Conventional Marketing System: In this structure there is one or more independent produce, wholesaler and retailer. Multichannel Marketing system: This is also called hybrid marketing channel. In this arrangement a company selects two or more channels to reach two more customer segment base. (Managing Market Channels and Wholesaling, 2011)Integrated Marketing Communications The integrated marketing communications will consist of high spending for advertising,consumer production, and publicity in order to create a strong consumer demand for the SpecialDark Chocolate bar. (Advertising, Sales Promotion, And Public Relations, 2011)Promotion Mix Strategy The promotion mix strategy for this special dark chocolate bar will be a pull strategy.The reason for this discussion is due to this being a premium product thus making it necessaryfor the consumer to ask the retailer for the product or to book orders online. The promotiontools of TV, magazines, and internet marketing will be used. TV advertising will help develop apremium positing while magazines will communicate the health benefits and direct marketingwill help in reaching the target market. (Advertising, Sales Promotion, And Public Relations,2011)Message Strategy The message strategy for this chocolate bar will be the luxurious, tasty, and good for yourhealth sweet sensation. This general message will be communicated to the target market acrossall promotional tools.
Unit 4 Individual Project 9 There will be an integrated approach to promote this dark chocolate in order to reach asmany consumers as possible. At the time TV ads are broadcast, public relations will show howthe new dark chocolate bar is not only luxurious and tasty, but also good for the heart. At thesame time internet advertising and direct marketing will also be going on. It can be expected thata strong “pull” will be created and customers will book orders on the company website as well asask retailers for the new bar. (Advertising, Sales Promotion, And Public Relations, 2011)Promotion Tool #1 Advertising will be the first marketing tool used. This promotional tool will be essentialin communicating the health benefit of this dark chocolate bar and to position it as a premiumbrand.Promotion Tool #2 The second marketing tool will be public relations. The public relations or publicity willcommunicate the use of chemicals like Tryptophan, and amino acid, as well as the antioxidants;endorphins, phenols, and catechin.Promotion Tool #3 Direct marketing through the company’s website will be the third marketing tool use.Advertising on the internet will be integrated through website selling. By doing thiscommunication can be sent to the target market and allow customers the ease of booking ordersfrom the website.Conclusion The marketing of the special dark chocolate bar will take place in the backdrop of a weakeconomy but a positive attitude toward healthy eating. This bar will be a premium product andpricing will support that image. Channels of distribution will be high end and the integrated
Unit 4 Individual Project 10marketing communications will help achieve a high quality, tasty, good for you, healthychocolate bar image.
Unit 4 Individual Project 11 References(2011). Advertising, Sales Promotion, And Public Relations. In R. H. Kern, Marketing (pp. 484- 517). New York: McGraw-Hill.Food: Company Spotlight; Hershey. (2010, March). Retrieved from Marketwatch: Global Round-Up 9, no. 3, pp. 89-95: http://ehis.ebscohost.com.proxy.cecybrary.com/ehost/pdfviewer/pdfviewer?sid=345aef1e -10ea-4e64-9460-27afc745a81d%40sessionmgr12&vid=10&hid=101INDUSTRY PROFILE: Candy Manufacturing. (2012, Feburary 27). Retrieved from First Research: http://mergent.firstresearch- learn.com.proxy.cecybrary.com/industry.aspx?chapter=0&pid=238(2011). Managing Market Channels and Wholesaling. In R. S. Kern, Marketing (pp. 378-403). New York: McGraw-Hill.Marano, H. (2011). The Scoop on Chocolate: Is chocolate really healthy? Retrieved from Psyclology Today, Vol. 44, Issue 2, pp.44-45: http://ehis.ebscohost.com.proxy.cecybrary.com/ehost/pdfviewer/pdfviewer?nobk=y&sid= 9b412f6c-be5f-4f73-87e4-5a02a9305fbf@sessionmgr110&vid=12&hid=101(2011). Market Segmentation, Targeting, and Position. In R. H. Kern, Marketing (pp. 220-243). New York: McGraw-Hill.(2003). Marketing. In The Macmillan Encyclopedia.(2005). Marketing. In International Encyclopedia of Hospitality Management.