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Lecture 12

ADM3326 Lecture 12: Twix.docx

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Raluca Balan

Twi remove_ads remove_ads monthly business [email protected] x 1. What is the purchase and consumption behaviour for chocolate bars? People get bored of the same kind of chocolate so they want something different therefore chocolate manufacturers produce different kinds of chocolate to satisfy consumers. 2. How can the chocolate bar market be segmented? The market can be segmented into Socioeconomic, Psychographic and demographic markets. The consumer chooses which chocolate bar to purchase according to their socioeconomic status. The displays attract consumers psychologically to buy chocolate bars even they are not thinking about buying one. 3. Assess how the competitive campaigns will affect Twix’s plan for advertising. The competitive brands usually reduce price for volume purchase or use contests and similar promotional activity. Brands are offered in different packages and sizes and sometimes given for free in restaurants. 4. What should Twix emphasize in its ads? • • 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 • 4. 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.SituationAnalysis -- 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) • 5. 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. • 6. 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 anAmerican 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. • 7. 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
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