Overview of Donald B and Its Products

Donald B is a maker of chocolates and different chocolate based products. The organization has two major stores in Melbourne in which it offers different types of products which are related to the choices of consumers and their preference levels as well. The main aim of the organization is to start its international operations with the help of proper expansion in different parts of the world. The different types of products which are offered by the company thereby include, confectionery products, glazed on crystallized fruits, liquorice, candied nuts, candied popcorn and drinking chocolate (Simon, Fischbach & Schoder, 2014).

The report will be based on the analysis of the buyers of the organization and their behaviour levels. The microenvironment of the organization and the macro-environment based factors will also be analysed in the report. The competitors of the company who are a part of the industry will be analysed in detail in the report. The analysis will be able to depict an effective picture of the methods by which the company will be able to function in the environment in the future.

According to Barros, Hernangómez and Martin-Cruz (2016), the products which are a part of the confectionary based industry including chocolates are consumed by the Australians at a huge rate. Chocolates have also been able to develop the position of the highest consumed snack food in Australia. More than 77% of the total sales of the confectionary products in Australia come from the sales of chocolates. The purchase based decisions of the consumers are thereby based on the buying behaviour which has been developed by them. The organizations in different industries need to understand the ways by which consumers are able to behave.

As argued by Daspit et al. (2017), the development of value for the consumers is also possible with the help of effective analysis of their buying related behaviour. A huge part of the population of Melbourne consumes chocolate based products and chocolate is considered to be an important part of the lifestyle of Australians. The main considerations of Donald B should be different stages of the needs of consumers and stages which can be helpful in satisfying their needs as well. Huge part of the Australian consumers is found to purchase their favourite chocolates from various supermarkets which operate in the country.

According to Demir, Wennberg and McKelvie (2017), women form large parts of the consumers who are interested to buy chocolates from the supermarkets in comparison to men. The major reason behind the development of the expansion based strategy of the company with the help of Australian supermarkets like, Woolworths and Coles is based on the amounts of people who visit these places on a regular basis. The organization however needs to analyse the needs and demands of the consumers in an effective manner in order to offer them with products which will be based on their personal choices.

Buyer Behavior in the Australian Confectionery Industry

According to Durand, Grant and Madsen (2017), the levels of competition which have been created within the chocolate based industry of Australia which is significant for the company in order to form effective relationships with the suppliers. The suppliers who are a part of the company on an international level have high levels of bargaining power. The bargaining based power for the suppliers of the large organizations is considered to be higher as compared to the smaller ones. The entire confectionery based industry is highly dependent on the agro-business related supply chain and various companies which manufacture chocolate.

As argued by Dyer et al. (2015), the high levels of purchasing based power and effective relationships with suppliers who provide the agricultural products in the country. The organization will thereby need to struggle in the Australian industry with the companies that are leading the market. The leaders in confectionery based industry have huge levels of power over suppliers. The raw materials which are provided by the suppliers are offered in bulk to the organization. The different raw materials which are a part of the industry mainly include, cocoa, nuts, milk and different special ingredients as well. The suppliers are thereby able to support the needs based on chocolate production in the country. The large organizations like Cadbury are capable of buying the raw materials in huge quantities as compared to the companies which are of medium size (Engert, Rauter & Baumgartner, 2016).

As discussed by Ethiraj, Gambardella and Helfat (2018), the buyers in the chocolate industry have high levels of buying power based on the large confectionery based producers which operate already in the market. The large and well-known organizations in the country have the existing buyers who are loyal to the different international brands. The international chocolate organizations have billions of consumers in the Australian chocolate based industry. The prices based on different chocolate based products of the organizations are based on the choice of the consumers. Donald B is facing high levels of competition from the international organizations based on the prices and choice of consumers as well.

The levels of prices which are set for the products of Donald B needs to be considered by the organization. The price of the products which are offered by the company needs to be considered by Donald B before it starts the operations. The bargaining based power of consumers in the industry is thereby considered to be moderate in nature. The organization will also face huge amounts of threat related to low levels of switching costs and the backward integration as well (Frynas & Mellahi, 2015).

Competition in the Australian Confectionery Industry

The distributors are able to play a key role in the operations of the organizations in confectionery industry. The chocolate producing organizations in the industry are able to offer the effective levels of products to the consumers with the help of various distributors. The marketing related activities which are conducted by the organizations are also related to the distributors of the company. The marketing based chain of the organization is also based on the methods by which the distributors operate in the industry. The distributors of the organization are able to provide the products to different types of customers in the industry (Hill, Jones & Schilling, 2014).

Donald B has plans to distribute its products to the different supermarkets which operate in Australia. The distributors in the industry will be able to play a key role in the ways by which products of Donald B can be offered to a larger groups of consumers. The distributors of the organization are thereby an important part of the marketing based process which is conducted in the market. Donald B thereby needs to develop a strong distribution based network in order to enter a new country or area of market with the help of its products (Hubbard, Rice & Galvin, 2014).

As discussed by Kasemsap (2014), the marketing and promotional activities within the industry are able to play a key part in the methods by which the company can create awareness based on diverse products which are offered to the consumers. The distributors will be able to help the organization to maintain their specialised stores in the country. The speciality stores will be able to provide the products to the consumers in an effective way.

The organization is planning to offer its products to the customers with the help of supermarkets which operate in Australia, namely, Coles and Woolworths. The distributors will be able to maintain the uninterrupted levels of supply to the consumers within lesser amounts of time. Donald B will thereby require to develop a group of distributors in such a manner so that they are helpful in offering the products to consumers (Hubbard, Rice & Galvin, 2014).

As discussed by Meyer, Neck and Meeks (2017), the chocolate or confectionery industry of Australia is widespread in nature and has been able to affect many people in a huge manner. The different organizations which are considered to be a significant part of the chocolate based industry of Australia mainly consist of international companies like, Nestle, Mondelez, Lindt and Mars. The organizations are able to provide high levels of competition to Donald B with the help of huge customer base. The organization thereby needs to grow strategies in such a way which will be helpful for maintain the levels of competitive advantage.

Role of Distributors in the Confectionery Industry

According to Michael, Storey and Thomas (2017), the organization thereby needs to analyse the levels of competition which it can face in the industry from the domestic and the international players. This will play a key role in the ways by which Donald B can increase the profitability based levels in the confectionery industry of Australia. The sustainability based measures which have been taken by the organization have played a key part in the effective processes of the company. The demands in Australian confectionery based industry can provide huge amounts of opportunities to Donald B so that it is able to operate in a profitable manner.

The organization can further develop its competitive advantage and customer base in the market with the help of lower prices. The lower rates of high quality products will be helpful for the company in order to develop its position in the confectionery based industry. The organization can also take major steps in order to maintain sustainability in the operations. The sustainable operations will be able to offer effective levels of opportunities to Donald B in order to create a position in the confectionery based industry. Donald B will be able to appeal to the customers of international organizations with the help of effective pricing based policies (Morschett, Schramm-Klein & Zentes, 2015). The international organizations have created a loyal base of consumers with the help of its products. Donald B will be able to operate in the confectionery industry with the help of high quality based products which are provided at lower prices.

Social influences – The operators in chocolate based industry of Australia have to face fast changes based on the preferences of the consumers within the last few years. The growth which has been seen in the concerns of the consumers are based on the levels of sugar and fat in foods related to chocolate. The participants in the confectionery industry have started facing increasing levels of demands based on the diverse needs of the customers. The demands for healthier products have increased in the recent environment which has caused changes in the products which are offered to them. The demand of consumers for premium levels of products have also been able to influence the ways by which organizations can operate (Sakas, Vlachos & Nasiopoulos, 2014).

Political factors – The changes which take place in the Australian government based activities are able to affect the operations of Donald B. The entry of workers within the country of operations is hugely dependent on the government regulations. Another major political factor which is able to affect the operations of an organization like Donald B is based on the levels of investment and imbursement which is provided to the shareholders. The employees who form an important part of the effective operations of Donald B can be managed effectively with the help of proper imposition of taxes. The lack of an effective and proper workforce is thereby able to influence the prices of the products which are provided by Donald B (Simon, Fischbach & Schoder, 2014).

Strategies for International Expansion

Economic factors – The monetary downturn all over the world has been able to affect different chocolate based organization which have their operations in Australia. The changes which occur in the tax rates have a major effect on the sales based performance of Donald B. The larger or international organizations will be able to mitigate the risks which are based on their operations in the industry. However, an organization like Donald B will not be able to mitigate the risks easily (Steinbach et al., 2017). The economic situation of the country in which Donald B plans to operate thereby needs to be considered by the firm in order to function in the industry in a successful manner for a longer period of time.

Natural factors – The high demand of chocolate based items are able to affect the ways by which it influences the environment. The activities related to cocoa farming are thereby considered to be highly important for the effects which these have on the environment in the country in which the organization operates. The environmental conditions are also able to influence the ways by which organizations are able to produce the chocolate based products. Donald B thereby needs to take into consideration the ways by which its operations are able to affect the environment (Trigeorgis & Reuer, 2017).

Technological factors – The production and packaging based processes have an immense effect on the speed of activities. The innovations which have taken place in the industry have affected the ways by which chocolate products are manufactured. The introduction process of new machinery for the purpose of brewing can be used by the organization in an effective manner in order to mix the cocoa grains and coffee. The levels of technological innovation in the industry is a major factor which will affect the profitability of the company. The technological factors will be able to affect the revenues of the organization (Wheelen et al., 2017).

Cultural trends – The social and cultural factors always play a key role in the demands for chocolates. The organizations in the industry thereby need to take into consideration the needs of people effectively in order to offer them with the desired products. The companies which operate in the chocolate industry are able to become a part of the lifestyle of consumers. Donald B can maintain its position in the industry with the help of appropriate fulfilment of different needs of the consumers (Trigeorgis & Reuer, 2017).

Demographic factors – The demographic factors are able to play a major role in the ways by which consumers make purchasing decisions. The decision making capabilities of the consumers are affected by the demographic factors. Donald B can analyse the demographics of the consumers in order to function in the market in a profitable way (Steinbach et al., 2017).

Conclusion

The report can be settled by stating that Donald B can operate in the chocolate industry in a lucrative way with the help of proper analysis of the internal and the external environment. The expansion based activities of the organization will be influenced in a huge way by the ways by which it is able to mitigate the risks which arise from the external as well as the internal environment. The proper development of a supply chain is also considered to be highly important for the operations in different areas or countries. The development of a distribution network is also considered to be highly important for the ways by which the company can maintain the operations in the competitive market. The organization will then be able to provide tough competition to the international organizations like Nestle which operate in different countries.

References 

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