Analysis of Whittaker's Market Strategy

1622 words (6 pages) Report

10th Jun 2020 Report Reference this

Tags: Business ReportsFood and DrinkBusinessInternational BusinessBusiness StrategyWhittakers

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Companies can increase their sales by developing strong strategies and plans to curb competitors and drive business growth. Each company's products can be continually enhanced to attract more customers, or management methods can be improved to contain various markets. This report is focus on analyzing Whittaker's market strategy and leveraging strategies to expand consumption and increase market brand, as well as Whittaker's range of organic chocolates for sustainable development. Current market strategies for Whittaker Chocolate include price strategy, market penetration strategy, market expansion strategies, market development strategy and mixed market strategy. Price is one of the important factors determining the company's market share and profitability. Because of the increase in cost, Whittaker has to raise the price, but the company guarantees that the quality of the product will not change (2). In the expansion strategy, increasing the production line to increase production and sales of the number one product (1), gradually expand the sales of products, increase the market share of the original products, and attract for new consumers. On the other hand, Whittaker develops exports, and a quarter of Whittaker's chocolate has been sold to Australia, Southeast Asia, China and North America (1). In the market development strategy, Whittaker cooperates with New Zealand local dairy companies to make chocolate drinks with fresh milk (6). It not only maintains the market competitiveness of the company, but also uses new products to developing new markets. As the most trusted brand in New Zealand for seven consecutive years, Whittaker is ready to show its strength to the world. Whittaker's current main activities are to promote its brand to the world. Rapidly developing international trade, "A quarter of Whittaker's chocolates were sold to Australia, Southeast Asia, China and North America (1)". And "now also entering the Japanese market (5)". As well as opened the first physical store at Auckland International Airport, in order to better display their products. The airport store is able to communicate directly with chocolate lovers around the world, providing high-quality chocolates as well as get feedback from chocolate lovers, and overseas consumers can provide better propaganda. Innovate in the flavor of chocolate. Because of each sale is based on the consumer's benefit and increasing the flavor of the Whittaker brand of chocolate will help them get more profits. Using different flavors will improve the taste of consumers. The new taste will attract to people who are preferring to try the new product. For example, in preparation for entering the Japanese market, in order to attract Japanese consumers, it is necessary to add a matcha taste to the chocolate to make changes. This will not only attract to buyers of regular matcha lovers, but also attract people who are preferring to try new tastes (5). Break the usual will bring about changes in sales and the creation of a good brand for Whittaker. Regular flavors can help companies enter the market but present the idea of ​​a more flavorful chocolate will be unique in taste and can provide more varieties flavors than the competitors. Adding comfort flavor will also help increase brand sales and outperform competitors. Comfortable floods include bacon, popcorn and even a mixture of sweet and savory ingredients together (1). This will help attract consumers and turn into more benefits, which will make the brand highly competitive in the market. (Gresbosz and Otto, 2013). Whittaker's increased their profits by 60 per cent in the 12 months in 2014, and they now take up 38 per cent of chocolate market in the New Zealand. According to Centreport Annual Report (2018), After Cadbury reduced the weight of chocolate by 10%, which was strongly opposed by consumers. Cadbury’s crisis has given Whittaker an opportunity, and Whittaker has taken advantage of this opportunity, reportedly growing at an annual rate of 10%. It can be seen that Whitaker is the favorite brand, and the advantage of local brands has been supported by a large number of consumers. Whittaker will show an upward trend over the next five to ten years. The reason for Whittaker's success is their company's unique production proposition. In terms of health, health risks have led to a slowly consumption in the chocolate industry. Whittaker attaches great importance to the health needs of consumers, attracting large sales and becoming a competitive product on the market. Whittaker's chocolate process includes a variety of nutrient-rich products, which brings more reputation to the brand. Adding healthy products to chocolate to process quality products which will increase sales of more. So even if Whittaker products increase prices because of increased costs, consumers tend to pay higher prices for health products. Therefore, although Whittaker claims healthy development could tend to risks in earlier period, because some people are not willing to pay more because some products are cheaper, but this will not only create a unique brand to attract consumers, but also It will promote a healthy lifestyle and enable consumers to enjoy the product for a long time. Another factor of success is the innovation of flavor. developing different flavors will improve the taste of consumers. The new taste will appeal to people who are willing to try the new products. Break the usual will bring about changes in sales and the creation of a good brand for Whittaker. For example, to try to attract the tastes of adults, company need to add alcohol flavors of the chocolate. Alcohol flavors not only appeal to buyers of regular alcohol lovers, but it also attracts people who are willing to try new tastes (Rahma and Areni, 2014). When Whittaker promoted chocolate products to Japan, it also incorporated with Japanese food culture elements into the products -- Matcha, and adopt a Japanese style in packaging design, which reflecting the innovation of the companies on the taste and the development of the Japanese market. On the other hand, a report shows that the primary factor considered by Chinese consumers is the taste of the product, followed by the chocolate brand and finally is the price. This shows that Whittaker chocolate can well match the Chinese consumer market and gain a huge market here. The biggest challenge in the development of Whittaker is the endangered chocolate production (6). Cocoa is the raw material for chocolate which needs to be planted in a suitable climate and rainforests. Because of the global warming effect, the area of ​​land available for cocoa cultivation is limited and decreasing. Moreover, plant virus contamination and pests cause 30 to 40 percent of global cocoa production lost per year (6). And because of risks and price fluctuations, farmers have to consider planting other more profitable alternative crops. Restrictions on raw materials will result in reduced production and increased costs, which will lead to a decline in sales. Chocolate producers are aware of the potential for cocoa lost and have launched a sustainable cocoa strategy. Mars Wrigley & Candy launched a new program which could reform cocoa supply chain. This plan focusing on the profits for the number of farmers, as well as dedicated to help children and protect forests. Whittaker can follow by the other chocolate producers, develops a sustainable cocoa strategy for this potential threat. Develop their own ethical sourcing standards for raw materials to ensure that their programs are more effective and tracking ethical standards at every stage of product production, as well as providing planting assistance for farmers. Train farmers through sustainable cocoa strategies to increase efficiency and help processors meet the requirements of international suppliers. Consumers will be more expected to buy these products from sustainable development programs. The strategy of sustainable planning will also improve the health, education and welfare of local farmers. On the other hand, due to the high perishability of chocolate products and the transportation problems of international trade business, a large amount of costs is incurred. Although it can be transported by ship, the product's perishability may not be suitable for it. Companies could work with foreign export companies. Or Whittaker can try to build factories in countries such as Southeast Asia for production, which is close to raw materials places, staff workers can manage their own cocoa production, and have a low labor force. In this market report for Whittaker, the rules for management in the food industry can be found. Rich-product selection is making the important status of psychological factors in the process of consumption. How to improve the competitiveness of products, stimulate consumers' desire to purchase, and even establish brand reputation have become issues that enterprises need to consider. In the early development, Whittaker has been through the products for health and the innovation on the taste. In the medium term, use market expansion strategies and development strategies to expand consumption. Export trade is developeding now and plans to involve sustainable development strategies in the future.

Reference list:

  • Grębosz, M., & Otto, J. (2013). International Expansion of Brands By Realization Of Co-Branding Strategy. Journal of Economics & Management, (14), 77-87.
  • Rahman, K., & Areni, C. S. (2014). Generic, Genuine, Or Completely New? Branding Strategies To Leverage New Products. Journal of Strategic Marketing, 22(1), 3-15.

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