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Marketing Strategy For Chocolate Products
Marketing Strategy For Chocolate Products
Production of chocolate has seen a constant growth in the recent past. Chocolate manufacturing industry has been stable since 19th century when solid pieces were introduced. Through deliberate Research and Development efforts, the industry has been able to come up with innovative technology within chocolate manufacturing. As a result, productivity in the industry is poised to increase. There is no doubt that the industry is set for further growth in the future. It is also worth noting that high-brand recognition will go a long way in fostering the industry’s vitality. The venture described in this marketing strategy encompasses both domestic and international consumers. Through franchises and ambitious marketing plan, the firm is going to stabilize and develop its market share.
Chocolate is one product that has continued to be loved by many people all over the world. It falls under the category of most craved food products. It’s soothing nature has been proven scientifically. Chocolate helps in raising serotonin in the brain. This hormone helps people to have a feeling of relaxation and calmness (Beckett, 2000). As a result, chocolate has found a constant place in most tables today. It is one of the favourite desserts and snack in most homes. With the new technology in place, chocolate industry is set to grow. Its history so far is enough proof to argue that it will endure turbulent economic tides.
The chocolate to be marketed in through this plan will come in various forms developed with close consultation to market research done. There is enough evidence to argue that these forms appeal to customers. This is because they were developed after a through market research. Chocolate pieces proposed in this plan have the following forms: small bars, boxed candies, powdered, nuts and seasonal molds. This product portfolio will ensure that everyone is gathered for in the company’s production efforts. In a bid to accommodate prospective customers of varying diet orientations, the firm underscores the importance of developing sweetened and unsweetened, white, milk or dark chocolate. There is doubt that the increase in consumption of readily prepared food will have glamorous impact on chocolate industry.
Product Branding Strategy
The company is going to roll out an ambitious scheme of expansion and customer base growth. There is a large portion of the market yet to be saturated with chocolate products. The scheme aims at cutting itself a substantial niche in this lucrative market. The ultimate goal of expansion is to have a loyal and reliable market segment. This new venture appreciates the fact that business success is largely dependent on the perception customers have towards products. The names of all brands mentioned above are going to have a tag called ‘Yummy’ to capture the interest of taste conscious customers.
The organization underscores the impact of venturing into an already colonized market. Although it is not yet saturated, chocolate market has players who have already won the loyalty of most consumers. For this firm to penetrate in to these markets, franchise option is being considered. Through partnership with already established organizations, an ambitious project will be rolled out. This involves collaborations with top players in various parts of the world (Hooley, Saunders, Piercy, and Nicoulaud, 2008).
Promotional activities are going to focus not only on price but also quality. Advertisements set to begin immediately after the first batch of production is made. Statements praising the products quality at affordable prices will constitute the massive advertisement schedule.
Market segmentations are based on the human behaviour dictating the selection and choice of products. Reliable research reveals that most customers are either interested with the quality of what they buy their prices or both. Since chocolate cannot be classified as essential product, it means that its purchase will be considered as product of luxury. Market penetration and stabilization will be dictated by the quality and affordability of the product. Lower revenues are acceptable in the initial years of operation to ensure that penetration is achieved at a fast rate. Setting the prices at a lower level than existing ones will ensure that customers who are sensitive with spending will be accommodated.
Chocolate falls under the category of food products. Therefore, consumers are very critical on the ultimate impact of this product on their health. The recent reawakening on living healthy and cutting weight is a factor to consider in both design and marketing phases of Yummy products.
To ensure that the products are going to appeal to most customers, the aspects of healthy living will be given much consideration. A lot of effort should be put on issues that touch on diet and weight cutting. It is possible to come up with chocolate products, which will not cause obesity and heart related conditions. Campaigns geared towards promoting this new product will emphasize on countering famous crusades opposing processed food products. The love of chocolate is an intangible and precious asset at the firm’s disposal. The company will not face many challenges in promoting new chocolate.
Equally important advantage is its chance of not only supplementing already existing food products but also substituting some of them. Since it is a new product on the market, many consumers will be trying to have a taste of it. It has never been a big challenge to market food products.
Product and Target Market Strategies
Although the food industry market is viable, there are those organizations which have colonized a substantive portion of the market. The marketing strategy proposed in this plan involves identifications of weaknesses in these firms. Once this has been done, capital investments will be done to fill the gaps generated by these weaknesses (Kotler, 1997). SWOT analysis of leading chocolate marketers will help in identification of these weaknesses. The study will be done on Hershey and M&M/Mars which commands more than 50% of the market share.
Life cycle of chocolate products is characterized by a prolonged saturation phase because it has proven to be a timeless product. As a result, marketing strategy should focus on not only winning consumer confidence but also building long-term loyalty. Loyalty compensation schemes will be considered to ensure that the present consumers of Yummy products will continue to purchase them in the future.
Another strategy to be employed by the company in a bid to make substantial revenues is the involvement of current and potential consumers in the production phase (Kotler, 1997). Through toll free telephone lines, the opinions concerning improvement of the product will be invited. Similarly, short questionnaires will be made available in the supermarkets to ensure that first-hand information about consumers’ feelings is obtained. A department will be established to study these suggestions, criticisms and complements before making recommendations. Actions point emanating from these suggestions will be handled with priority.