MK7041 Managing Sustainable Global Value Chains Assignment Sample
Module code and Title: MK7041 Managing Sustainable Global Value Chains Assignment Sample
Introduction
The report is about one of the famous chocolate companies of the UK which has been ruling the market for 6 years (Eskandari, et al., 2020). HiP chocolate is one of the leading companies of chocolate with a unique taste of dark chocolate. The report will further discuss different competitions of HiP chocolate in the market and how the company is managing to give tough competitions to its competitors in the market. The report will also discuss different types of marketing strategies that the company uses to grab more customer’s attention towards them. It will also discuss how the company has competitions in the global market also.
Background of the organisation
Fig 01: Hip chocolate
In the early 19th century John Cadbury opened a company of chocolates in the uk market. The company continued to do sales in the market by selling chocolates which are made up of animal products. After about 200 years the grandson of John Cadbury, James Cadbury, aimed to reopen the company under the name of HiP chocolate. But this time he has changed the source of raw materials (Tan, et al., 2021). He has launched a variety of chocolate which are of vegan types as many people in the UK are vegetarian in nature.
As a result they have started getting customers more in number. He has got this idea of vegan quality of products while seeing other employees of a company when he used to work with them. They always preferred the vegan products first. The milk that the HiP chocolate company uses are not animal based but are plant based. This company uses the best quality of cocoa which originated from Colombia. This company mixes this cocoa powder with gluten free oat milk.
This company has followed many marketing strategies to stand out in the market. Even the customers are very satisfied with the quality of the products also. HiP chocolate is the first company who started selling chocolate which are made up of oat milk (Eliava, et al., 2018). And this strategy worked very well from the initial stage of the business only. The product contains less amount of sugar, about 31% in it and another 41% is cocoa.
Strategic objectives
The HiP chocolate company has many objectives to get more profits from the market. Some of them are mentioned below.
- To get more customers and more sales, HiP chocolates has aimed to expand its business in the global market also.
- To bring unique types of products in the market it has also aimed to bring many types of sweet products along with chocolate bars.
- To expand its business the HiP chocolate needs to open several franchises in the market.
Introduction to the extent of the Firm’s local/global operations and its international competitiveness
Evolution of Marketing (Philip Kotler)
The HiP chocolate has followed different phases of marketing to get more customers from the market. According to Philip Kotler there are different phases of marketing for every type of business and this company has also followed these phases as much as possible to get success in their business (Tamilia, et al., 2019). Some of the phases are mentioned below.
Orientation of production process – this company has always concentrated on the production method of the product for the sake of the customers. They have introduced modern machineries in their industries to produce products. They use a unique technique to extract gluten free milk from the plants.
Orientations of final products – this company always focuses on the quality of products. They have tried their level best to deliver pure vegan products in the market to maintain the trust of the customers.
Orientation of sales – the HiP chocolate company has increased their supply of products on a large scale in a short period of time to do more sales in the market without sacrificing the quality of the products.
Orientation of target customers – the main target customers of this company are vegetarian people of the UK. So to maintain the trust of the customers this company always delivers pure oat milk products.
Orientation of market – this company has always kept an eye on its competitors’ companies also. They have followed the steps of those companies and how they are trying to stand out in the market.
The marketing Mix 4-7 Ps
- Product – This company always produces chocolate from oat milt and which are purely extracted from plants only. The oats milk is totally gluten free.
- Promotion – The HiP chocolate company has followed different strategies to do promotions of their products in the UK market.
- Place (Distribution) – The products of this company are also used by small retailers for their business. This company had sent many sample products to many international chocolate companies to increase their sales in the market. This company has aimed to distribute their products in every part of the UK and other countries also.
- Pricing strategies – the HiP chocolate company has always maintained proper pricing of their products in the market for the sake of their customers. They sell their products at a reasonable price in the market.
- Physical evidence – this company has also ensured that the raw materials of the products are purely vegan and they support the concept of sustainability.
- Process – this company alwaye go through the details of their final products in their industry before delivering them in the market to find small defects in the products for the sake of the customers. The raw materials are purely vegan products.
- People – The main target customers of HiP chocolate are the vegetarian people of the UK. This company has noticed that vegetarian people have shown more interest towards their products (Summers, 2021). So this company has aimed to produce more vegan products.
Comparison of Marketing and sales
The HiP chocolate company has followed proper pricing strategies for the betterment of the business. They have also focused on the production cost of the products as it is very necessary to reduce production cost to get more profits from the market. The stakeholders of this company also maintain good relations and as a result they do not delay in investing in the production process (Vásquez, et al., 2019).
This company is able to do proper marketing of the products also. They have accounts in all social media platforms like facebook, instagram, youtube and many more to promote their products as a large number of people offer social media as a source of marketing.
The CX Relationship pyramid
Fig 02: The CX Relationship pyramid
According to one of the famous scholars, Gartner, it is very important to get customers’ trust for the betterment of the business (Tamilia, Ferrell and Hopkins, 2019). This company has followed the several stages mentioned by gartner in this theory. Some of the stages are mentioned below.
- Stage 1 – level of communications
The HiP chocolate company has also communicated with their customers sto know their feedback about the products to improve the quality in the future release.
- Stage 2 – level of response – this company has always followed the response of the customers in the market and according to their choice they have produced products in the industry.
- Stage 3 – level of commitment – This company has already committed to deliver pure vegan products in the market. The oat milks are only extracted from plants only.
- Stage 4 – Level of proactive- This chocolate business will give great vegan product experience to those who crave chocolate.
- Stage 4 – level of evolution – this company always tries to bring uniqueness in their products to stay in the market in a better way.
The consumer value framework
The HiP chocolate company always values the choices of their customers. They always keep the customer’s preferences on their first list as it is very necessary to stay in the market by giving tough competitions to its competitors. According to the theories of consumer value framework the customers always prefer the products which have high quality with low pricing strategy.
The market research process
The HiP chocolate company has done proper research on the market value of their products before launching them in the market. They have identified that the people who are above 30 years of age of both males and females are offering more to buy the products of this company. Teeanager of society do not like the vegan products of this company. The company has also found by doing market research that there are many companies who have started selling vegan products in the market.
STP process
- Segmenting consumer market – this company has done proper market segmentation in the market to garb more customers towards them. As a result the people who offer vegetation products are choosing the products of this company. The company ensured that the raw materials of the products are purely vegan and the milks are extracted from different plants only. The cocoa powder which the company always uses to produce chocolate bars are pure in quality.
- Targeting approaches – this company must find out the differences among the products to get more sales in the market (Li, et al., 2018). Proper target of the market will help this company to expand its business in a more systematic way.
- Positioning – product positions is one of the most important processes for business. This company has done proper market position by promoting their products in various ways. They have given advertisements of their company in every city of uk. They have also kept regular track of their competitors’ companies and their process of selling products in the market.
Appropriate international market to enter
The HiP chocolate company should find out the market value of several countries to start their business in the market. The respected government of every country plays a very vital role for the companies who want to start their business in the global market. This company should choose such countries where the production cost of the products will be less and sales will be more in number for the betterment of the business.
This company should choose such countries where the neighbour prefers vegan products more than the non – vegan products. This strategy will help the company to increase the sales of their products even more (Sheth, 2021). This company should also concentrate on the types of stakeholders as they play a vital role in the success of a business. Without proper investment it is impossible for this company to stay in the global market. This company should also look after the source of raw materials for the production process as oat milk is very essential to make the chocolates of this company.
Evaluation of the organisation’s market entry modes into the new market 300
The HiP chocolate company must follow a franchising mode of marketing to enter the global market. It will help this company to expand its business in a rapid way without compromising the quality of the products for the sake of the customers.
The linear model of communication
The company must build a line of communication with their new customers in the global market (Thabit and Raewf, 2018). This communication level will help the company to know the choices of the new customers and as per them the company can produce products in the industry.
Figure: Linear model of Communication
Source: www.s3-us-west-2.amazonaws.com, 2022
The marketing communication mix
There are many factors that are included in the marketing communication mix. They are selling products, promotions of products, maintaining public relations with the customers, different types of sponsorsHiP s, and many more. This company should always keep the pricing of their price low to get more customers attention in the initial stage. This will also help this company to get more sales of their products.
This company should advertise their products in every corner of the new country (Mahmoud, 2018). This company should adapt the source of marketing as social media platforms like facebook, instagram, twitter and many more.
Channel structure
This company should maintain good relationships with the stakeholders of the new country for the sake of the business otherwise they will face loss in the initial stage only. Without proper funding it is impossible for this company to stay in the international market. This company should also follow all the rules and regulations of the existing government of the host country to make profit in the global market.
The aggregated marketing system
Aggregated marketing system is the process of marketing without investing more money. This company should follow the marketing strategies which will need less but will attract more people (An, et al., 2018). The company should advertise their products in every part of the new country for more sales of their products. Social media can help this company to promote their products as the amount of investments is also very less compared to others.
Recommendations
It is recommended that this company should give more concentration on the marketing process of the organisation. Marketing plays a very important role in this digital age. The company should do social media marketing in the proper way to get more customers in the new country. They should also do email marketing where the customers will get notified about the new arrival of products of this company.
The HiP chocolate company should recruit well experienced employees who will be able to mangne the website of this company properly to maintain continuity of posting news in the websites (Król and Zdonek, 2020). It is also recommended that this company should increase the amount of supply of the raw materials in a larger scale to produce more products in the industry. The company should reduce the production cost also for the sake of the business otherwise it can face loss in the global market.
It is recommended that the HiP chocolate should bring varieties of sweet products rather than chocolates to give tough competition to its competitors in the international market also. The company should always maintain good relationships with otis stakeholders and the target customers as well as without proper funding it is impossible to stay in the global market (Konstantas, et al., 2018). It is also recommended that the company should keep procind of the product low in the initial stage to do more sales in the global market.
Conclusion
It can be concluded from the above report that HiP chocolate is miantaing a good reputation in the uk market. They have mainly concentrated on producing vegan chocolate for the sake of the customers. It can also be concluded that this company is following different marketing strategies to promote their products in the market in a better way.
It is also found that the customers of the UK market are very well satisfied by the quality of the products and the behaviour of the employees while delivering the products. From the above report it is found that this company is planning to expand their business in the global market also. To expand its business in the international market this company should follow the existing government rules of that country properly to avoid issues in the future of the business.
References
Eliava, G.G., Tsintsadze, T.G., Kasradze, P.A., Svanishvili, T.R. and Buachidze, T.S., 2018. ASSESSMENT OF THE SCENE OF HOT CHOCOLATE GIRL FROM THE VIEWPOINT OF DYNAMIC EQUILIBRIUM ACCORDING TO JEAN-ETIENNE LIOTARD’S PICTURE „LA BELLE CHOCOLATIÈRE “. In EUROPEAN RESEARCH: INNOVATION IN SCIENCE, EDUCATION AND TECHNOLOGY (pp. 82-87).
Summers, B.T., 2021. Reclaiming the chocolate city: Soundscapes of gentrification and resistance in Washington, DC. Environment and Planning D: Society and Space, 39(1), pp.30-46.
Vásquez, Z.S., de Carvalho Neto, D.P., Pereira, G.V., Vandenberghe, L.P., de Oliveira, P.Z., Tiburcio, P.B., Rogez, H.L., Neto, A.G. and Soccol, C.R., 2019. Biotechnological approaches for cocoa waste management: A review. Waste Management, 90, pp.72-83.
Tamilia, R.D., Ferrell, O.C. and Hopkins, K., 2019, May. Evolution of Marketing Channels and Supply Chain in Marketing. In Proceedings of the Conference on Historical Analysis and Research in Marketing (Vol. 19, pp. 331-333).
Li, B., Liu, Y., Wan, C., Liu, Z., Wang, M., Qi, D., Yu, J., Cai, P., Xiao, M., Zeng, Y. and Chen, X., 2018. Mediating short‐term plasticity in an Artificial memristive synapse by the orientation of silica mesopores. Advanced Materials, 30(16), p.1706395.
Morgan, N.A., Whitler, K.A., Feng, H. and Chari, S., 2019. Research in marketing strategy. Journal of the Academy of Marketing Science, 47(1), pp.4-29.
Sheth, J., 2021. New areas of research in marketing strategy, consumer behavior, and marketing analytics: the future is bright. Journal of Marketing Theory and Practice, 29(1), pp.3-12.
Thabit, T. and Raewf, M., 2018. The evaluation of marketing mix elements: A case study. International Journal of Social Sciences & Educational Studies, 4(4).
Mahmoud, T.O., 2018. Impact of green marketing mix on purchase intention. International Journal of Advanced and applied sciences, 5(2), pp.127-135.
An, J., Kwak, H., Jung, S.G., Salminen, J. and Jansen, B.J., 2018. Customer segmentation using online platforms: isolating behavioral and demographic segments for persona creation via aggregated user data. Social Network Analysis and Mining, 8(1), pp.1-19.
Król, K. and Zdonek, D., 2020. Aggregated indices in website quality assessment. Future Internet, 12(4), p.72.
Konstantas, A., Jeswani, H.K., Stamford, L. and Azapagic, A., 2018. Environmental impacts of chocolate production and consumption in the UK. Food research international, 106, pp.1012-1025.
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