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MK400 Agribusiness Marketing Report 3 Sample
Marketing - Report
The assessment three has two components – The final marketing plan and a presentation.
Assessment 3a: Defend your Marketing Plan
Task: Complete all the components of a marketing plan You are required to complete all the components of a marketing plan and defend your marketing plan during the class session.
Assessment 3b: Completion of your Marketing Plan
Task: Complete all the components of a marketing plan
You are required to finalise your marketing plan by completing the components 7-9 highlighted and present your completed marketing plan.
7. Set your goals and objectives
Once there is clarity surrounding the business and its positioning, goals can be established. First, think long-term and specify the main business goals, e.g. size of the agribusiness, expansion plans or profit figures. Then, develop immediate objectives, e.g., whether it's to establish the business in the market or to increase sales or customers.
8. Outline marketing strategies
Once goals and objectives have been specified, analyse short-term business objectives and identify the marketing activity, process or price that will help achieve the marketing objectives. Your marketing strategy could include;
• Product/Service strategy
• Pricing strategy
• Position (place) strategy
• Promotion strategy
• People strategy
• Process strategy
When choosing marketing activities, choose activities that suit the agribusiness business and targeted customers. For example, newspaper advertising is not advisable if the target market is primarily young adults who probably never read a newspaper but use social media as their primary source of information about products and services.
It is often helpful to choose multiple media that complement each other, to help with messaging. For example, advertising on local radio, as well as setting up social media channels and introducing a low-cost pricing strategy for first-time buyers might work well together. When used together, these strategies start to complement each other and reach a broader market.
9. Set the marketing budget
Knowing how much is available to spend on marketing and how to spend it is critical to the success of a business. A marketing budget focuses marketing activities on those with the highest likely returns.
When developing the marketing budget, ensure that it focuses on the requirements of current marketing goals. Advertising and promotion can be expensive. Make sure to pick options that will give you the best ‘bang for buck’, while still reaching target customers.
Your final marketing plan should be structured as follows:
• Title page
• Executive summary
• The business
• The market
• The customers
• The industry
• The target market
• The competition
• Marketing objectives
• Marketing strategy
• Marketing budget
• Supporting documents
Solution
Introduction to the Business
Company Background
The company, Barry Callebaut Group, headquartered in Zurich, Switzerland, is seen to be one of the world’s largest manufacturers of high-quality cocoa products and chocolate. The company is seen to be a vertically integrated company with a strong market positioning (Barry-callebaut.com, 2023). For Assignment Help, The organisation is seen to be specialising in three different product segments such as: “Food manufacturers Products”, “Gourmet & Specialties Products (Beverage Business included)”, and “Cocoa Products” (Barry-callebaut.com, 2023). The image below represents the organisational segmentation of the company at present.
Figure 1: The Organisational Structure of the Company
(Source: Barry callebaut.com, 2023)
Furthermore, the successful expansion of the company to Campbellfield, Australia, is highly commendable as well.
Product and Business Portfolio
The products that are sold by the company at present are pretty diverse and include cocoa powder, chocolate drinks, dairy and non-dairy products and the newly launched 100% plant based products, Callebaut NXT (Barry callebaut.com, 2022). The annual revenue of the company has somewhat been stable as well over the past few years and has shown growth in the market. The revenue of the company in the period 2020/2021 has been 7,207.6 million Swiss Francs (Statista.com, 2022). The image below is a graphical representation of the same.
Figure 2: The annual revenue of the company
(Source: Statista.com, 2022)
At present, the company is seeking out new paths to achieve strategic growth through expansion into the Malaysian market. As per the recent article published by Maersk, a famous logistics company, it has been seen that Barry Callebaut, with the help of Maersk, is opting to increase the current landside and ocean logistics to increase its reach in the international market (Maersk.com, 2023). The plan of the company is to develop a “Built to Suit” cocoa bean dispatching and warehousing facility in Malaysia.
Mission, Vision and Objectives
Mission Statement of the Company
There is no such separate mission statement of the company but the areas that help in representing the values of the company. The website of the company has helped in pointing out the fact that the customer focus and passion for cocoa and chocolate helps in the growth of the business (Barry callebaut.com, 2023). Also, the company has been seen to be focusing mainly on four strategies of cost leadership, sustainability, innovation and expansion as well (Barry callebaut.com, 2023).
Vision Statement of the Company
The vision statement of the company is seen to be encompassing the fact that they are the heart and engine of the cocoa and the chocolate industry in the country (Barry callebaut.com, 2023).
The image below has helped in depicting the link between the company values, vision and strategy which collectively promotes the smart growth strategy.
Figure 3: The Smart Growth Strategy
(Source: Barry callebaut.com, 2023)
Objectives
- To focus on the launch of organic chocolate products in Malaysia.
- To generate market awareness about the existing and the new product line of the company in the new market.
Market and Industry Analysis
SWOT analysis of Barry Callebaut
Table 1: SWOT analysis based on Barry Callebaut
(Source: Created by the learner)
- Barry Callebaut has been considered as the major cocoa and chocolate item manufacturer (Barry callebaut.com, 2023).
- Offering high quality based products to their customers.
- In the year 2022, the sales volume of Barry Callebaut has increased almost 5.3% (Barry callebaut.com, 2023).
- In every fiscal year almost 2,306,681 tonnes of product has been manufactured by the business (Barry-callebaut.com, 2023).
- The sales capacity of organic chocolate has increased almost 4.5% (Barry callebaut.com, 2023).
- Limited brand awareness regarding the business in the developing nations (Yahoo.com, 2023).
- Decreased availability of the integrated logistics solutions.
- Limited existence of growth related to the market share (Yahoo.com, 2023).
- Barry Callebaut has shifted their focus towards reinvesting their business profit almost 39% which is affecting the business growth (Yahoo.com, 2023).
Opportunities Threats
- The adequate involvement of technological innovation within the Research and Development (R&D) process (Barry callebaut.com, 2023).
- Increasing focus towards developing strategies for creating international expansion.
- Ensuring the existence of sustainability within the different categories of food items has the capability to assure better organisational growth (Barry callebaut.com, 2023).
- Decreased focus towards managing uncertainty has the capacity to restrict the business growth (Barry-callebaut.com, 2022).
- High competition within the existing business market.
- Lack of existence of talent management capabilities (Barry-callebaut.com, 2022).
Based on the detailed evaluation of the above table it has been accomplished that the adequate offering of the high quality based product has been considered as the major strengths that have existed which played an important role in improving the total sales growth of Barry Callebaut. On the other hand, the involvement of technological innovation within the R&D process and the involvement of sustainability within the business has the capability to attract more opportunities for the mentioned business. However, the existence of huge competition within the international market and the lack of existence of strategies related to the uncertainty avoidance has been creating an intense threat for Barry Callebaut.
A Critical Industry Analysis
In recent times the UK has been considered as one of the major chocolate markets all across Europe and the mentioned place has been considered as the seventh highest market that consumed chocolate from all across the globe (Cbi.eu, 2022). Additionally, while going through the report by Cbi.eu (2022), it has been accomplished that in the year 2021 almost 164 thousand tonnes of chocolate has been exported by the UK and in Ireland has been considered as the largest chocolate importer which imported almost 23% of the chocolate products from the UK.
Figure 4: Total export of chocolate products by the UK
(Source: Cbi.eu, 2022)
While going through a report by Ibisworld.com (2023), it has been explored that the market size of the chocolate production sector has increased almost 4.4% in 2022 and it has also been expected to grow in a significant manner. Thus, it has been determined that through the detailed analysis of the collected numbers it has the capability to attract better scope of competitive advantages for supporting the business growth of the chocolate market from the UK. Furthermore, based on the evaluation of the below image it has been determined that in the UK the total sales turnover of the chocolate manufacturing industry has increased almost £4583 million which shows a significant growth of the industry within the mentioned country (Statista.com, 2022). Therefore, it has been accomplished that a huge scope of growth has been existed regarding the targeted industry within the competitive market environment from the UK.
Figure 5: Growth of the total sales turnover of the chocolate and cocoa industry in the UK from 2008 to 2021
(Source: Statista.com, 2022)
Competitor Analysis
Identification of the USP of the product
The USP of the chocolate that has been considered for the study involves the fact that it is dairy-free. As per the information provided by the official website of the company, the following has been outlined as the USP:
- No traces of dairy products.
- Made of 100% plant-based ingredients (Callebaut.com, 2022).
- Is vegan.
- Has high nutrient content.
Competitor Analysis
The main competitors of the products in Malaysia are Benns Calinan, Signature Market, Nomo Large Vegan Dark Chocolate Bar and Krakakoa (Myweekendplan.asia, 2022). The 4P analysis of the competitors has been presented in the table below:
Table 2: The Marketing mix (4P) of the competing products in the Malaysian market
(Source: Created by the Author)
The Target Market
Identification and evaluation of the market segments and customer profiles
Market segment
Table 3: Market segmentation of Barry Callebaut’s NXT organic chocolate
(Source: Created by the learner)
Customer profile
Table 4: The customer profile to launch organic chocolates in Malaysia
(Source: Created by the learner)
Considering the above figure, all the details of decision making have resulted in the identification of psychological perspectives towards the choice of organic chocolates by Barry Callebaut. Therefore, considering the table above, 10-16 years and 17-24 years should be the target market for the launch of organic chocolates called Callebaut NXT. Thus the elaboration of the consumer person could be feasible, which has been illustrated below.
Table 5: Consumer Persona
(Source: Created by the learner)
Critical analysis of the target market
The target market of Malaysia has an intense popularity towards the milk based chocolate and moulded solid compound chocolate among the people. While going through a report by Globaldata.com (2022), it has been explored that the market value of the chocolate manufacturing industry has increased almost $335.2 million which has grown almost 3%. Thus, it has been understood that a significant growth has been observed within the target market which has the ability to attract better growth of Barry Callebaut. Additionally, market penetration and diversification required to be considered by the mentioned company for maintaining sustainable growth of the business within the Malaysian market.
Figure 6: Ansoff matrix for highlighting the market position of Barry Callebaut
(Source: Created by the Learner)
The setting of Goals and Budget
Barry Callebaut's market expansion in Malaysia for organic chocolate, which is Callebaut NXT, must be embedded with a few essential objectives (goals). The objectives would come in handy for successful Malaysian market penetration, which has been mentioned below.
- To deliver the main focus and make the intention successful of the launch of organic chocolate products in Malaysia.
- To create awareness in the country and market with the initialisation of a new product line for the organisation in Malaysia.
The focus regarding the launch of the new organic chocolate product in Malaysia would help in gaining the positive psychological perspectives of the customers involved in the consumption of healthy food habits. In addition, awareness of organic food production and consumption would be created by forming a new product line in a new country market. Now, the market penetration for Callebaut NXT in the Malaysian market needs a budget which has to be estimated by the organisation. The details of the budget are illustrated below.
Table 6: Budget plan for the launch of Callebaut NXT
(Source: Created by the learner)
Considering the above budget table, it can be stated that partnership could be an entry mode for the sales of Callebaut NXT in Malaysia. In addition, along with the market entry mode, the factors of the budget would help the organisation not only to popularise the product but also make it reachable to every shop, shopping mall, and people who love and are eager to consume organic chocolates.
Marketing Strategy using 4P
A marketing strategy includes an extended strategy for attaining a business' objectives via knowledge of client demands and the development of a distinct and long-lasting competitive advantage. Whenever successfully advertising a good or service, the company considers the four Ps as they are the main factors that must be carefully examined and put into practice (Saura et al., 2023). In addition, Ps, such as product, price, place and promotion strategy.
In consideration of this, the affirmed company “Barry Callebaut” has the intention to sell its new product to the new target market, which is Malaysia. However, its new product is “organic chocolates” under the name ‘Callebaut NXT’, which will be the product that shall be made of fresh cocoa beans directly purchased from the farms. According to the perspective of Langen and Huber (2023), prior to establishing the 4Ps marketing plan, the product should be evaluated from a variety of aspects, and the following qualities should be understood: "Quality," "Features," "Benefits," as well as "Potential add-ons." Thus, businesses in Malaysia are progressively modifying their offerings for online sales along with, in the instance of service providers, online delivery. Customers in Malaysia increasingly prefer to purchase online (Lin et al., 2023). Thus, the aforementioned company needs to re-evaluate its offerings in order to keep them relevant.
However, a crucial component of the "Barry Callebaut" product shall involve availability, which can have an impact on how the company markets it. Inconsistent or sluggish access to the approved product or the components that "Barry Callebaut" needs to create it can cause launches to be delayed or sales to be lost. This is troublesome since one of the most important factors to corporate success is how quickly new or current items are introduced to the market (Saura et al.,2023). That implies the company could gain a competitive edge if it can come up with a novel approach to manufacture or operate its new product so that it can reach the market more rapidly.
Figure 7: Revenue generated from the cocoa industry in Malaysia
(Source: Statista.com., 2023)
From the figure above, it is determined that, in 2023, the Cocoa segment will generate “US$25.94 million” in revenue. Thus, the market is anticipated to expand at “-8.31%” yearly (CAGR 2023-2025). By 2025, out of home consumption (such as that found in bars with restaurants) will account for “49%” of expenditure and “5%” of total consumption within the Cocoa category (Statista.com., 2023).
In accordance with the above facts, the 4Ps shall be the best marketing strategy for “Barry Callebaut” in understanding “‘organic chocolates” and further determining its price for sale. Furthermore, the mentioned brand shall focus on the display of the affirmed product in the Malaysian market by selecting the correct way to communicate to Malaysian consumers. Additionally, the following table represents the 4Ps of marketing strategy that will be considered by “Barry Callebaut" in launching its new product line of “Organic Chocolates” in Malaysia.
Table 7: 4Ps of marketing for "Barry Callebaut"
(Source: Self Created)
Marketing Budget
A marketing budget constitutes a breakdown of the expenses a business will incur to sell its goods or services. The marketing budget is allocated for a specific amount of time, ranging from a quarter to a year (Korner, 2023). Thus, the marketing budget covers all costs associated with the "organic chocolates" (Callebaut NXT) advertising campaign for "Barry Callebaut." In addition to this, the affirmed company intends to set its budget for promotion and sales of “organic chocolates” in the Malaysian market with “estimated costs vs. the actual costs”. However, in the notion expressed by Ago et al., (2023), it is crucial for a marketer to identify the ‘goals and optimal channels’ for communicating along with reaching out to the targeted audience. Whereby, in consideration of "Barry Callebaut", the following table shall justify the marketing budget.
Table 8: Marketing budget for "Barry Callebaut"
(Source: Self Created)
Conclusion
Based on the overall discussion, along with the organisational background, the product and business portfolio have been illustrated and described above. Figures were provided for a better understanding of statistics. The mission, vision, and objectives of the business organisation have been successfully identified, along with the unique selling proposition of the product. Detailed competitor analysis has been done by considering the internal and external factors that were supported by critical industry analysis. The identification of market segments, consumer profiles, and budgets has taken place in the discussion for the entry of organic chocolate in Malaysia.
References

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