Marketing communication – Critical Evaluation of Integrated Marketing Communication Eco- Network- A case study of Bel Group.

Executive summary

The relevance and survival of an organization in a given market is in its ability to compete favourably through its integrated marketing communication which are the signals sent to customer , potential customers and the general public offline and online to create an image and personality.

This course work focuses on Bel group (with concentration on one of its core and most successful brand ‘The Laughing Cow’), the world leader in branded processed cheese packaged in pre- cut portion and the number one cheese spread in Europe (Khimji, 2012), been in business for more than 90 years with 400 million portions sold (in 2011) and with the target to make 3 billion pounds sales turn over by the year 2020.

In it offline activities, Bel group have developed fascinating advertisements in deferent media and as well made good efforts on its public relations and sponsorship. Part of its offline activities is also it good distribution channels. In its online activities, it’s (Bel group) got an effective web presence management through it web sites, providing ample information about its products with messages wrapped in pleasure and healthy diet.

This course work also intends to look into the brand source, personality, differentiation and function, as well as the expansion and growth strategy of Bel group and particularly, the laughing cow campaign in Netherlands to mark its 90^th anniversary; its objectives and the results (sales figures) from the campaign.

1.     Brand Positioning in regards to Online and Offline communication.

1.1 The Company.

The Bel is a multinational organization that originated from France. The organisation specializes in developing and manufacturing quality, brand-name cheeses that are loved around the world and easily reached to everyone. Bels is over 90 years in the industry, present in more than 120 countries with the mission to be the world  leader in the business  and to continue to produce and develop original, high-quality and widely available branded cheeses locally and in the international market. (Bel-UK, 2012)

1.2 The Products.

Bel group’s cheeses are made to match the well-built personality of its (the organization) powerful brands, With five universal major brands, including The Laughing Cow, Kiri, Leerdammer, Boursin and Mini Babybel, and more than 25 additional local brands, the organisation brings smiles to almost 400 million consumers annually in 120 countries around the world. These smiles which are basically from the delight of eating food made with dairy goodness, and Bel's commitment to fostering good and healthy eating habits and ‘good-naturedness’, form the common thread between the organisation and its brands (Bel-group, 2012)

1.3 The Brand

Brand is the reflection of the personality of a corporate image; corporate image on the other hand summarizes what the company stands for as well as how it is known or viewed in the market or the general opinion of the market about the company, while a good/ strong brands provide consumers with assurances of quality and reduce search times in the purchasing process (Kenneth E. Clow and Donald Baack, 2012). As discussed earlier, our target brand of Bel group for the purpose of this course work is ‘the Laughing Cow’. ‘The Laughing cow’ is one of the very first brands of the Bel group and certainly one of the most successful. In market for more than 90 years, ‘the Laughing cow’ has created a sustainable image offline and online connected with messages relating to refreshment, pleasure and sweet sensation.

1.4 The Offline Brand Image.

The ultimate offline brand image is a function of an organization integrated marketing communication. There has been a shift in the concept of marketing from managing just customer transactions to managing internal and external relationship and from passive to interactive multi-channel marketing communication strategies. Marketing communication is concerned with the planned, integrated and controlled interactive dialogues with key target audiences to help achieve mutual beneficial objectives, as modern marketing calls for more than just the development of a good product, making it appealing in pricing, and reachable, companies must make the right communication signals to both present and potential stakeholders as well as the general public. (Fill, 2009). How well a company is able to incorporate its marketing strategy, messages and message compositions as well as its relationship with house agencies and communication with stakeholders determine the achievement of the products and brand of such organization. The Bel group and particularly the ‘laughing cow’ is generally viewed to have channeled its marketing strategy towards a healthy nutrition which is its point of difference as compared to products like margarine, butter or chocolate spreads, by making ‘the laughing cow’ in piece and slices to help consumers manage their diet. It (Bel) has also strived to continually improve its products to meet consumers’ nutrition needs, For example; The Laughing Cow Light and Mini Babybel Light were launched long before obesity turned out to be a major concern it is today. At the moment, all Bel’s main brands have a light alternative and for some there is even an Extra Light version – the Laughing Cow Extra Light has only 3% fat and just 20 calories per portion. (Bel-UK, 2012)

The laughing cow’s design and packaging since 1924 (as I have observed) has been consistent and remains relatively unchanged to this day (thelaughingcow, 2012), while message over the years have been wrapped in healthy nutrition, delight and pleasure. Examples of such messages are :’sharing smile’, (Bel-group, 2012) ‘have you laughed today’ (thelaughingcow, 2012), ‘made with laughter’ (TheDrum, 2011), ‘Get your day off to a better start’, and at every opportunity, the laughing cow lays emphasis on how healthy it is to take Bel’s cheeze in the stead of related products from other competitors.

In summary, Bel group, with more than 25 further local brands (and ‘the laughing cow’) is a key food industry player and a frontrunner in the cheese production market, with more than 11,000 employee,  (Bel group in 2011) generated consolidated sales of €2.5 billion, up 4.5% over the previous year. In its profile, the Bel group states that the success of its brands can be exemplified by the 10 million portion of the laughing cow consumed everyday in the world. (Bel-group, 2012) 2300 portions of The Laughing Cow are taken in every 20 seconds. More so, it is the most famous cheese spread in the world (Bel-uk, 2012).

1.5 Online brand image

The online brand image of an organization or a product is exclusively dependent on the offline relationship built otherwise with its customer or the general public (as the case may be) outside the internet or website. The online presence management of the Bel group in no doubt reflects the offline success of it brands. Bel group maintains various websites and predominantly for each of its brands, with numerous information about the organization, its history and its products. These websites also have sales figures and facts which in fact is helpful and useful for such researches and course works as this, as well as products’ rating platforms( which is a mean of maintaining a close follow-up on the results of offline sales campaign and activities), as well as feedback and consumer engagement blogs. In my own view, Bel group’s websites are some of the most up to date and voluminous information based website I have seen; but I have also noticed that none of these websites has an online sales management platforms – online purchase and payments platforms- but I suppose each organization, according to its target audience, have its marketing strategies and focus, and I do believe that as much as the offline sales focus and strategies of Bel’s group has paid off, an online sales management and payment platform could be an additional sales revenue source and means.

2. The Brand and Networks

2.1 Brand Personality

The mission of the Bel group is their long-term production and development of original, topmost quality, extensively available branded cheeses. The five significant values underlying Bel’s growth strategy are ethics, innovation, enthusiasm, expertise and unity.

Being categorized as the foremost European branded-cheese group and positioned 2nd in the world in terms of turnover and profitability, Bel maintains emphasis on innovation with technology and new products, permeation of new markets, and persistent external growth.

2.2 Brand Differentiation and Function

Bel focuses on the development of Branded Cheeses - unique, simple, healthy cheese products, with the extensively possible availability. Their brands are everyday products combining whole nutritional values, user-friendliness, and above all, tastiness. They are perfect for families, and intended to provide great pleasure and healthy nourishment for people of all ages throughout the world.

Over the years Bel has developed a portfolio of over 25 international and domestic brands strongly positioned in their individual markets in which The Laughing Cow is sold in about 100 countries. Much of Bel’s success is in no doubt built on brands that offer a new approach of eating cheese.

2.3 Brand Source

The Laughing Cow was officially launched in 1921 by Léon Bel. Since then, The Laughing Cow has been relished by many generations of consumers and it now makes part of a large trend of products. It is a brand that fills a distinctive place in the history of cheese making. The Laughing Cow introduced a whole new approach of eating cheese, due to the unique recipe combining a sole flavour and a creamy, melting texture.

Originating from France, The Laughing Cow is no doubt an international cheese, consumed in more than 100 countries on five continents, from Africa to the USA, from England to Japan, and to Australia. Reflecting various languages and cultures, The Laughing Cow has a different name in each country. Initiating a new marketing approach when launched and still much active today, The Laughing Cow has (no doubt) a truly audacious identity and personality. (ManassenFoods, 2005)

2.4 Target

Bel's plan for growth is propped by a motivated and expressive mission to bring smiles to families universally, through the pleasure of its products made with ‘dairy goodness’. (Bel-group, 2012) The organization (Bel) has identified the world and especially the European in-home and take-out lunch market as a segment of increasing demand, with research conducted by the firm signifying the home-made lunches have increased in popularity in the UK since the start of the recession. The firm also learnt that the UK consumers are looking for simple ways to add more variety to their lunches. (Dairyreporter, 2012). Bel group’s products (as a result of it research and discovery) have attracted 400 million existing consumers and the Group also targets to attract up to 600 million additional by 2020 (Bel-group, 2012)

2.5 Distribution channel

To the makers of increasingly (emerging) everyday food such as the case of Bel group and ‘the laughing cow’, availability and convinience are the major concerns and priority in its sales and marketing strategies. Lovers of cheese( and shoppers in general) want to grab portions from the nearest local stores or throw boxes of ‘The laughing cow’ into the trolley as they make a brief shopping and thereby expect that it be available at the point of need. The Bel group has identified these needs for availability and convinience in effective reach to this growing number of consumers and its active distribution channels to the shelves of stores and supermarket.

2.6 Competitors

As much as Bel group is a strong player in the cheese and dairy market, there are also some competitors in the industry that keeps them on their toes. Some of such (in the UK) are

Adams foods: A major and strong player in the UK food industry and supplier of pre-packed hard cheese, supplying every major UK food merchant as well as the wholesale, convenience and food service sectors with over 200 million packs sales record per year. Adams foods also have a emerging butter business through it portrait ‘Kerrygold’ brand (adamsfoods, 2012), which makes it a major competitor of Bel group in the UK.

Alvis Bros: Alvis bros has also been a strong player in the UK dairy market since 1952, producing over 60 tons of wide range of traditionally handmade cheese, that are available in wide range of sizes and shapes (AlvisBros, 2010)

There are also other notable competitors in market like the Barber’s (the makers of the Maryland cheese brand), the Belton Cheese Ltd, Bradburys, Brue Valley Farms and so many others (outside the UK, in Europe and the rest of the world) that space will not permit me mention. The dairy and cheese market in Europe (using the Uk as a point of reference) and other part of the world is a highly competitive market, but Bel group and ‘the laughing cow’ remain a strong, major and relevant brand of all time.

2.7 Strategy

 A simple and sustainable business model

Bel's business is devoted to the production of branded cheeses. This strategic positioning is the basis of the Group's establishment, and it motivates the performance of Bel's inspiring and bond-building brands, which for the most part have made them outstanding in their respective markets.

Bel also maintains a unique technological know-how in food production, with notable cheese-making competence, specifically in processed cheese, and proficiency in miniaturization. These competitive advantages have impelled the Group to the title of the world's third-leading manufacturer of branded cheeses and the world leader in the portion segment.

Bel's capital structure is also a strong strategic asset, facilitating the Group to firmly manage its growth and ensure its sustainability.

Brands with strong growth potential

While Bel's five core brands, The Laughing Cow, Kiri, Mini Babybel, Leerdammer, and Boursin, are all precisely positioned, they share some common values, including a certain reverence, a healthy and fun eating experience, and personalities that can be modified to local eating habits. To further support this is the fact that consumers in many countries consider The Laughing Cow to be local brands.

These brands have remarkable growth potential in markets where they are already sold, as well as in new territories. (Bel-group, 2012)

A fine understanding of markets to extend product ranges.

The Laughing Cow cheese blocks launched in 2011, and precisely intended for eating habits in the Ukrainian market, Boursin Gourmet, targeted at American consumers when serving cheese and crackers among loved ones or Kiri used in cake recipes in Japan and Corea (Bel-group, 2012).

A strong sense of marketing and distribution that has made Bel products appealing, visible and accessible.

Bel group mentioned on one of its web pages that The High Farm Musical advertising campaign launched in 2010 did increase sales records of The Laughing Cow by 6% in Western Europe. The Group as I observe is also always willing to experiment new distribution and sales initiatives, an example of which is in the Congo, where Bel products are sold on the street by women. (Bel-group, 2012)

Market leadership strategy

Bel had started following an international growth strategy early enough. Presently, its products are spread in about 120 countries on five continents.
Bel's growth is bolstered primarily by efforts to strengthen and grow its market positions. Consequently to its international expansion, the group has instituted a presence in geographical regions with high organic growth possibilities. Bel implements its growth strategies to each territory. The pursuit for size is not necessarily the goal, but the objective is to be a frontrunner in the cheese and dairy markets and segments.

New territories to explore

The Group's growth is also a reflection of its willingness to expand into new geographical territories. Bel (at the moment) is already a market leader in Africa, but the continent is far from been totally won as there are still a number of untouched markets worth exploring. Such also is the instance in Asia and South America. In proportion to Bel's mission to share smiles with families everywhere, taking over new region and breaking new grounds come with new challenges for the organisation, that understands that (in the real sense) its products cannot entirely be accessible to all.

Over the years, however, Bel has been running a development program to bring its dairy products to the highest number of people. In 2011, it launched Goodi, a pilot program in Vietnam. Goodi is a hybrid product containing rice, dairy proteins with vitamins and nutrients modified to meet the nutritional basics of Vietnamese children.
The project gives highlight to Bel’s nerve to go further than just cheese to make its mission a reality. Furthermore, as a part of its development program, and in it quest to exploring new territories and reaching more people for the purpose of organisational growth and sales increase, in 2011, Bel group launched a campaign in Netherlands, Europe, marking the 90^th anniversary of  the laughing cow and the campaign details and result are as analysed below.

The Laughing Cow’s 90th Anniversary Campaign in Netherlands, Europe

Bel major brand The Laughing cow is no doubt the leading spreading cheese in the world, but the group sure understands there is more to be done to remain as relevant and significant in the market. In 2011 as the group celebrated its 90^th anniversary, Bel Netherlands employed the services of Weber Shandwick (a public relation expert) and interactive agency IN10( a brand communication expert) to help mark the anniversary by engaging children between the ages of 7 to 12 and their mothers. This it did in its pursuit to create more awareness, expand and make more sales.

The objectives of the campaign were to further develop the public relation and to promote awareness of the brand and the Laughing Cow's 90th anniversary, in paid, earned and shared media, and accomplish brand loyalty and engagement. The business goal was to create the Laughing Cow's biggest ever promotion, with target sales volume growth of at least 3.5% (PRWeek, 2012).

Campaign Strategy/ Communication tool

The campaign needed to stress The Laughing Cow's brand values, which are ‘Sharing Smiles', goodness, fun and delight, and stay true to the positioning as a healthy cheese snack for children and families.

The team generated an online club – The Secret Order of the Laughing Cow – and had children to sign up as members and help the Laughing Cow find the best places to swim, skate, or visit a museum in several ‘Secret Missions'. Members of the Secret Order and key journalists, together with retailers and other relevant third parties, also observed the Laughing Cow's 90th anniversary party, which took place in an amusement park, and included setting a Guinness World Record for gathering the most people dressed as cows in one place. Activities at the party included a quiz, a survival challenge, rodeo bull riding, cow milking and a Laughing Cow theatre show. Weber Shandwick made coverage before and after the event and made a social media release with a Facebook and Twitter link.

Campaign Evaluation

The campaign produced 106 online articles, 22 pieces of print coverage and three radio items. The world record attempt was mentioned in more than 80 tweets. The campaign engaged 7,500 kids and parents by inviting them to the party, and 250 people took part in the Guinness World Record attempt. The Secret Order signed up 1,730 members in its first year.

Sales in the Netherlands increased by 7.5% from January to October 2011, representing record volumes for the brand. Household penetration increased by 9.5% in Q4 2010 - Q3 2011, compared with the same period the previous year. The Laughing Cow is over-performing in the total cheese spread market: according to Nielsen Data, volumes are up by +6.9% - much higher than total market growth (+2%). (PRWeek, 2012)

Campaign Results

This campaign combined the Laughing Cow's historic assets with making the brand relevant for today's children. The campaign allowed kids to ‘share smiles' with friends and parents while enjoying outdoor activities and healthy snacks, and forged long-term relationships with children and parents through the online club. (PRWeek, 2012)

3. Conclusion

Marketing as the heart of a business determines the survival of an organization.

How an organization is perceived by the general public goes a long way to determine either it acceptance or rejection i.e its success or failure as the case may be.

Staying relevant in business is more than just conceiving an idea or creating a fascinating product, it is important to determine what such good or service stands for (Kenneth E. Clow and Donald Baack, 2012) - its value and essence, the needs or want it is to meet as well as determining who these needs and wants are meant for (a target market). But far beyond these is creating a sustainable relationship, not just with these target audiences, but also with future user- potential customers, and relevant stake holder, through a well-planned, steady and dynamic marketing communication strategy (Fill, C. 2009); taking an advantage and a good use of little things that count like a clear vision, a direct mission, stable and consistent colour codes and messages.

Organizations build a continuous and lasting relationship with their customers/ stakeholders by employing the right marketing communication techniques which are advertising, direct marketing, public relations, personal selling, sales promotions and/or sponsorship (Fill, 2009). The integration of these techniques and the marketing mix (product, price, promotion, place, packaging, positioning and people) (Clow.K.E., Baack.D. 2012) make the right marketing communication strategy.

Integrated marketing communication in other words is the interconnectivity and the relationship between an organization’s marketing strategy, its vision/ mission, product and the organization message, message composition and its choice of media. It is also the rapport between an organization and the house agencies as well as its communication with the stakeholders.

 To take a stand however as to conclude this course work, I maintain that there are no particular laid down rules or steps as to integrating an organization marketing strategy but to understand the market, put customer satisfaction first and reach them appropriately through all the marketing tools (Dahlen,M., Lange,F. and Smith, T., 2010) as I believe the Bel group and especially The Laughing Cow has done in its over 90 years in business. I suppose the brand is doing well and the image has been well accepted in all the markets where the Bel group is present trading and do hope the group will keep the trend, work more (particularly) on its online sales  and stay relevant in the world branded cheese market.

References.

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[Accessed 7 January 2013].

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Consumer Behaviour in the UK Chocolate Industry (Thorntons UK)

Executive Summary

Chocolate is one of the common sensational food man have grown to love from generation past. It is consumed by the young and old for different purposes; it could be used for baking (chocolate cake), chocolate drink and beverages (ice cream, milk shake etc). Gifts of chocolate fashioned into different shapes and sizes have also become customary on certain holidays/festive period, celebrations and merriments: chocolate bunnies and eggs are common on Easter, chocolate coins on Hanukkah, Santa Claus and other related symbols on Christmas, and chocolate hearts or chocolate in heart-shaped boxes on Valentine's Day. Chocolate has in no doubt been one of man’s favorite foods of all time.

As much as consumers love chocolate, the buyer behavior over time has proven to be elastic, in other words, consumers tend to demand  and consume  less at the instance there is any (supposed) increase in its cost (being assumed to be a luxury).

Following the recent recession, the chocolate market especially in the Uk has seen the market players having to fight and struggle to stay relevant in business. In this fight for survival and market share is the point where a firm’s strategy gets to be questioned. Thorntos, the UK’s largest chocolate maker (Theguardian, 2011) is not left out in the struggle, having to battle recession and competition, making emphasis on product, production and packaging, and bearing in mind that understanding the target market (offline and online) is paramount: being able to ascertain consumer want, the driving force as well as the future plans to making Thorntons a strong player in the UK chocolate industry and making its name outlast this age and generation.

Introduction

Chocolate products have been found by market researchers in their report that it is one of the Uk’s favorite purchase. According to the market analyst the chocolate market has increased by 7.5% growth in 2010, the market was valued at £5.41bn in 2011.The chocolate snack sector accounts for 74% of the market value which makes it the bulk/volume of the market and the sugar confectionery sector being only 26%. 

 Chocolate confectionery makes up the majority of the market, with countlines accounting for the bulk share within the sector. However, the subsector that has seen the most drastic growth in 2011 is the boxed chocolates and sharing bags. With consumers staying at home to save money because of the economic crisis, demand for this format has significantly increased. As a result, rather than introducing new products in an already flooded market, manufacturers are increasingly initiating sharing-format variations. (The Time, 2012)

Overall the Confectionery market, whose popularity in the UK is undeniable, is expected to have expanded well in value beyond 2012 with business analysts like the ‘keynote’ projecting the market to have hit £6.77bn by 2016. (KeyNote, 2012)

Thormtons.

Thorntons has been making delicious chocolates for a hundred years. The first shop was opened in Sheffield (England) by the confectioner Joseph William Thornton in October 1911 (Thorntons, 2011)with the vision ‘to be Britain’s best loved chocolate brand and to make chocolate lovers smile’ (Thorntons, 2011). Thorntons has since moved from deferent stages of growth and development. In 2011 it was reported that the company was worth £218m+ in turnover (Thorntons, 2011) with over 600 outlets, and products spread across a multi-channel network covering shops, franchisees, online and through different retail partners.

1.     THE THEORY OF BUYER BEHAVIOR

1.1 The production

 In pursuit of the mission ‘to deliver Chocolate Heaven to the world and deliver the best possible customer experience’ (ask, 2012), thorntons’ production has come a long way, from the range of handmade confectionary to the machine aided lines that make hundreds of thousands of kilograms of chocolate, thorntons operates a development kitchen, with a fully trained chocolatiers and chef. (Jennings, 2001)

Thorntons also pays a good and close attention to Packaging, knowing that it accounts for a huge part of the product’s perceived value. To maximize its effectiveness, Thorntons has continually modified its packaging to present new appearances for its products. (Jennings, 2001)

Thorntons operates hundreds of stores across the UK, as well as having an online presence management and in the big multiple stores, producing some of the country’s well known and best loved chocolates such as Continental, Thorntons fudge and toffee. The company is said to pride itself on producing the world best chocolate. (Yourfoodjob, 2012)

Overall there have been a maintained strong improvement and growth in Thorntons manufacturing operations. (Thorntons, 2011)

1.2 The product

Over the years Thorntons has produced a collection of milk, dark and white simply delicious classic chocolate. Some of the most successful hot sellers include caramel, fudge, fruit and nut, developed using the finest non-alcoholic recipes and the traditional art of confectionery-making: Classic assortments, something for everyone, in whatever occasion and celebration (BloomingKrackers, 2012). More so, the development of new and exciting products has always been instrumental to the success and vibrancy of the Thorntons brand. In recent time, Thorntons has successfully re-launched its two principal boxed chocolate brands (Continental and Classics) in Retail, as well as a refreshed Classic Collection in its (Thorntons) Commercial channel, the new Melts brand has also grown well over time and was joined by a new caramel variety which was created with an exclusive, two-tone shell produced through a new “triple-shot” technology.  Thorntons’ children’s favorites have also been re-launched and have seen some strong development in Thorntons’ strategic seasonal lines, such as the introduction of its Bramble Bunny range at Easter. (Thorntons, 2011). These put together has made Thorntons a premium brand and a house hold name in the UK chocolate industry.

1.3 The Strategy

A firm’s ability to achieve and sustain competitive advantage can be seen as dependent on the development of the organization’s value chain and linkage with other part of the value system (Porter, 1985, 1996).

Thorntons’ value chain

Thorntons had developed its value chain activities over time to follow basically an in-house pattern. It is reported that 80 % of Thorntons sales are made through the company’s own shop, with sales through franchises providing a further 7% of sales (Jennings, 2001). Meanwhile, anticipating the risk of this vertically integrated retail model, in 2006 Thorntons quickened the development of its Commercial sales to supermarkets as well as growing its internet sales through Thorntons Direct, a strategy that has proved highly profitable as the Commercial channel has grown strongly over recent years and in 2011, sales increased 25.9% to £78.8m (2010: £62.6m)  In its own statement, Thornton confirmed: ‘Its strategic aim is to rebalance the firm and capitalize on its brand strength through a more focused retail channel with a differentiated customer proposition, a renewed customer focus and a coercing commercial, franchise and online offering’. (Thorntons, 2011).  Through its Commercial channel Thorntons now lead the inlaid box chocolate market in terms of market share and, through its further actions, Thorntons also is the main driver of growth and development in the UK chocolate market. (Thorntons, 2011)

2. SEGMENTATION PROFILE

Thorntons operates in four customer-market segments. Thus, gifts, personal treat, family-share and children. (Studymode, 2005) Each with different customer needs.

Thorntons has got good collections of luxury chocolate suitable as gifts for friends and loved ones. The sweet hamper are the definitive gift solution for excellent party treats or as birthday gift, especially when family or friends celebrate the coming of a new baby, new jobs, marriage and engagement and other adventures.

At any point in time a lover of chocolaty goodness needs a delicious self-indulgent treat, either with no much sugar or alcohol-free recipe, thorntons’ special and unique toffee and fudge serve right. With different chocolate recipes like the fiery ginger, cool mint or the experimental chilli, there is a flavor for every mood.

Thorntons chocolate packs make the perfect family share at any time, ranging from the continental to the classic and premium packs in different sizes and weight, whether it is to celebrate Christmas or Easter, a birthday, a new home, anniversary and other merriments.
For the children segment specifically, Thornton fashioned different figures like Dinosaurs, Fossils and Dalmatians spots. (Studymode, 2005)

3. BUYER DECISION MAKING PROCESS

Literally, decision making can be referred to as the mental processes (cognitive process) resulting in the selection of a course of action among different thread. Buyer decision making process therefore is the event of actions undertaken by consumers in regard to a potential market transaction before, during and after the purchase of a product or service. This decision making process is in five steps, Thus, problem awareness or recognition, information search, evaluation, purchase and the post purchase (Evans, M.; Jamal, A.; & Foxall,G., 2009) 

3.1 Problem awareness

The purchase of any product starts with the actual realization of the need for such product. This is the stage where the consumer recognizes needs/wants to be satisfied, these unsatisfied needs/want at this stage is seen as the problem. Sometimes these wants could go as far as being a need for a roof over a consumer’s head, a need for a new car, a need for the service of a doctor, a plumber or a barber, it could be a need for chocolates and confessionary to present a friend or a loved one. As long as there is a desire to be satisfied, we say there is a problem. During problem awareness, the consumer recognizes that the good, service, organization, person, place or initiative may solve the problem of shortage or unfulfilled want (Bhasin, 2010).

3.2 Information Search.

This is the stage where the consumer searches for various alternatives available to solve his/her problems (the needs) and determines the uniqueness and distinctiveness of these alternatives. It could be a research for different house agencies, considerations whether to buy or rent an apartment, searching for the available cars that would satisfy a need, be it for luxury, quality and safety or fuel efficiency and within budget. It could also be a search for the best collections of chocolate within range.

This search can be internal and/or external which could be influenced by a past experience with a product/service or an influence from family and friends. As want and the intensity increase; the amount of information sought also increases. Once the information search is completed, it must be established whether the needs or unfulfilled wants can be satisfied by the available alternatives. (Bhasin, 2010)

3.3 Evaluation and selection

Product characteristics are relevant and significant only to the extent that they lead to a certain set of benefits.  Likewise, benefits are important only if they can address the problem and are instrumental to satisfying needs and wants .This is the stage where (after the search for necessary information) consumer tries to solve the problems and ultimately satisfying his/ her need. At this point he/she looks for the problem solving benefits from the product. The consumer, then, looks for products or services with the features that deliver the benefits. Thus, the consumer sees each product/ service as a bundle of elements with different levels of ability to deliver problem solving benefits to suit his/her need. (Matsuno, 1997)

3.4 Store Choice and Purchase

To actually implement the purchase decision, a consumer needs to select the specific items (product brands) and specific outlets (where to buy/store) to resolve the problems. The purchase act involves the exchange of money or a pledge to pay for a product or the performance of a specific service, and so on. Buy decisions remaining at this point center on the place of purchase, terms and ease of access. If the above elements are pleasing, a consumer will then make a payment for the product/service (Bhasin, 2010).

3.5 Post Purchase process                                                          

Here is where a consumer questions the rightness of the decision made. ‘did I make the right purchase? Would there have been a better brand?’ these are the common reaction after a long, complex decision making process (Matsuno, 1997). More so, buying a product may lead to the purchase of another. (Bhasin, 2010)  The post purchase behavior of a consumer is especially how a consumer relates the benefit of a product/service against the actual want or need (the problem). The result of this process determines if there should be a re- assessment or a call for more of such item the next time.

Ultimately, the buyer decision making process is principally influenced by the consumers’ product awareness. A consumer will make his/her decision based on the choices of products/services that come to mind at the time of making a buying decision (the evoked set). It is therefore the goal of a marketer to build his/her business brand firmly among these handfuls of choices of products considered by most target consumer when making a purchase decision. (Businessdictionary, 2012).

4. ONLINE BUYER BEHAVIOUR

The website is the gateway to the organization and a very important contact point to every business. Internet has modified the way consumers shop and buy goods or services, and has rapidly developed into a global trend. Many organisations use the Internet with the purpose of managing marketing costs, thereby cutting the price of their products and services with the goal to stay ahead in a very competitive market. They (organizations) also use the internet to explain, communicate and disseminate information, to sell products, to take feedback and also to conduct satisfaction surveys of consumers. Consumers on the other hand use the internet not only to purchase products online, but also to compare prices, product attributes and after sales facilities they could receive if they buy products from a particular store. In all, the success of an online/internet marketing effort of an organization is exclusively dependent on the offline relationship built otherwise outside the website. (Scribd.com, 2010)

For a company’s website to have an effective and positive contribution to marketing and the online presence, the internet marketer might have to make some research and answer certain questions.

The first and the major research an internet marketer needs to do is to identify the target market and be ascertain of the fact that this target market are internet users, in other words, do these people have access to computers, are they willing and able to use them in their shopping and purchases. By this research he can determine if there is actually a need for a website.

The second question companies/ internet marketers need to ask is: what kind of website appeals to these target markets. i.e describing the overall look and ‘feel’ of a website, which could be contemporary, traditional, corporate, elegant, relaxed, bright, funky and so on, to catch the attention of a target and potential consumer.

The third research towards an effective online presence management is for companies to ascertain the architectural layout of websites. A ‘sales purposed’ built website should be designed for a comfortable buying process, making out room for easy navigation and a secured online payment pages.

Other researches toward an efficient website are to establish an effective interactive digital diary, and (where necessary) create online chatting facilities as well as effective feedback avenues. Moreso, companies/ internet marketers also need to establish a good search engine optimization for easy search from search engine user, thereby generating quality traffic flow to the website.

The thorntons online sale platform (Thorntons direct) has so far been a success, as it has continued to grow in its internet traffic flow and incessantly increasing online sale. In 2011, overall Thorntons Direct sales grew 4.3% to 9.6 million pounds as compared to the 9.2 million pounds sales in 2010. (Thorntons, 2011)

5. THE TREND

As earlier concluded Chocolate has become the most popular food types and flavors in the world and one of the most popular recipe and taste across all age groups and social classes; different collections of chocolate in different sizes and shapes have become one of the major gifts defining our celebrations and festivities: chocolate bunnies and eggs are popular on Easter, chocolate coins on Hanukkah, Santa Claus and other related symbols on Christmas, and chocolate hearts or chocolate in heart-shaped boxes on Valentine's Day. Chocolate is also used in cold and hot beverages, to produce chocolate milk and hot chocolate.

The chocolate industry though have had to battle the global recession, still remains resilient and has over time seen a relatively steady growth, recording $50 billion-a-year worldwide business transaction (Chocolatesource.com, 2001)

Many chocolate manufacturers have created products from chocolate bars to fudge, hoping to attract more consumers with each creation, knowing well that Consumers will continue to stay loyal to the chocolatier and brand that will not stop in the act of providing the definitive customer want.

5.1 What consumers want

The believe behind chocolate suggests that consumers see it as a ‘naughty but nice’ impulse treat (KPMG, 2012) but in utmost; every chocolate consumer is always in search of one or all of these points:

Convenience

Chocolate may be seen as an impulse purchase, but it’s becoming increasingly everyday among consumers. Convenience is a major driver for chocolate lovers, who want to grasp a bar from any store or throw a multi-pack into the trolley during a snap shop.

As convenience becomes more important to time-poor consumers, sales of tablet bars are growing (up by 37% in the UK in 2011) as consumers grab and go. Ace chocolate-makers such as Godiva are reconsidering their tactics to get a bite of this profitable market, by introducing smaller bar formats.

Value

Value-mindful shoppers prefer a new generation of outlets. Discount stores are thriving, which is forcing supermarkets to think more like discounters to fascinate fussy customers, including increasing their private label array. Small grocery stores may be short of the economies of scale to vie on price, while ‘specialist’ formats are being crowded out. In emerging markets, ‘one-stop’ retail locations are becoming popular due to low prices and greater variety. (KPMG, 2012)

Luxury

The luxury chocolate market persists to accept the mainstream –and not just in developed economies. “The believe is that even expensive chocolate is an affordable luxury,” says Marcia Mogelonsky, Global Food Analyst at researcher Mintel. Chocolate is becoming more and more premiumized, and as such makes producers as Godiva and Lindt become virtually mass market as consumers develop a taste for everyday glamour (KPMG, 2012)

5.2 Driving growth:

Sustainability

The survival of any company is in its aptitude to sustain itself. In other words ability of an organization to integrate its environment, economics and social facet will determine whether such organization will survive and eventually make a future.

Innovation

Innovation is basically finding new ways of pleasing the increasing ever more demanding customers. Personalization could be an example of this, with indication to what Nestlé is already doing in Switzerland, the world’s largest per capita chocolate market, where it lets its customer personalize taster packs based on their preferences. Its Spanish brand Diselo con Chocolate also of late launched an e-commerce platform where customers can design their own assortments. (KPMG, 2012)

Health

KPMG reports, although many consumers regard chocolate as an occasional treat and don’t obsess over its consequence on health, fat is becoming a major concern for manufacturers. So-called ‘fat taxes’ are pressurized in a number of major economies, including the UK, while European countries such as Denmark and Hungary have already introduced excess taxes on unhealthy food.

To combat this, the industry will have to ponder the potential health benefits and facilitate chocolate to be amongst the next generation of functional foods, pushing the antioxidant effects of dark chocolate or exploring the energy boosting features of bars with oats, nuts or ‘super fruits’. Latvian brand laci is using ‘super berry’ sea buckthorn in its products. Smaller bars can encourage awareness of portion sizes. (Mars has capped its bars at 250 calories in the UK and Australia) (KPMG, 2012)

5.3 Looking to the future

Health Benefits

Chocolate should ride the fad for ‘nutraceuticals’. Nestlé has already revealed plans to invest US$510m in “initiating a new industry between food and pharma”. Medicinal basils could be used as an ingredient, or even aspirin. Additional better-for-you recipes like super-fruits, nuts and oats may become more common. Preservative-free chocolate will become the norm in developed economies. Dark chocolate could increase in popularity as consumers become more informed of its health benefits (KPMG, 2012)

Innovative Packaging

To be prominent on the shelves and reduce costs, packaging could undergo reforms. Manufacturers will invent new ways to ensure chocolate doesn’t melt in the extreme heat of many evolving markets, as well as initiating new bar sizes. (KPMG, 2012)

Attracting youth

Marketing to the youthful populaces of evolving markets (particularly India and Latin America) will be essential. Use of popular and acceptable culture, including bands and TV shows, in marketing campaigns should increase, as will viral marketing and social media communication, as young people widen their channels. While children fancy sweeter chocolate, concerned parents will seek for chocolate with added health value. (KPMG, 2012)

The Personal Touch

Customized bars may be common. One artisan chocolate maker says he envisions smaller shops offering people the chance to make their own bar. As consumer appetite and taste grow more sophisticated, unusual flavors may become the model; with chocolate-lovers decide on their own combinations. Consumers may also be able to fashion their own packaging. (KPMG, 2012)

New distribution channels

Chocolate should/will be available from a broader variety of outlets, from coffee shops to health food stores, to satisfy convenience buyers. Supermarkets and discount stores will continue to dominate sales, particularly among value-seeking consumers. Premium chocolate could become available in mainstream stores as luxury buyers increase. Brands might pursue to move up the value chain by creating their own flagship stores, as Thorntons, Hershey and Mars (through its M&M’s brand) have already done successfully. (KPMG, 2012)

A new recipe

Milk chocolate should/will have a lower cocoa content to reduce cost due to rising prices, and manufacturers will be forced to use cocoa more frugally. Demand for cocoa could get out of control: one Latin American manufacturer forecasts that China and India increasing average per capita consumption by just 1kg could make most manufacturers’ current models unsustainable. In such scenario, artificial cocoa could become the next available alternative. (KPMG, 2012)

Middle class rule

Manufacturers are most likely to propose more chocolate from ethical sources to satisfy aspirational buyers’ needs. Middle class consumers will also do more of premium chocolate for gifting purposes, and seasonal launches, which increased 6% during 2011, will continue to grow. (KPMG, 2012)

Price vs Size

In emerging markets, chocolate takes a heavy bite from the household budget. As input price volatility continues, manufacturers may have to keep value in mind or risk losing customers. Price per gram is rising fast in developed markets, but research shows consumers feel cheated if bars get smaller but price is static. Mainstream manufacturers could be forced to choose between containing cost, at the expense of size, and moving further up the value chain. (KPMG, 2012)

           

 

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