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Whittaker’s – brand of chocolate in New Zealand Essay

Whittaker’s is most trusted brand of chocolate in New Zealand. Whittaker’s headquarters are located at Porirua, Wellington, New Zealand. Whittaker’s was founded by J.H Whittaker in Christchurch. James Henry Whittaker worked in the British confectionery industry at the age of 14 and moved to Christchurch, New Zealand, in 1890. Six years later he started manufacturing chocolate confectionery, selling it directly to customers. In 1913, he established a partnership with his two sons, Ronald and James, based in Wellington. The business became a limited liability company in 1937, with third-generation Whittaker’s still the sole shareholders in the company. In 1992 the company formed J.H. Whittaker Australia Ltd. Part A – Task 1

Outcome 1- Assess the potential for market segmentation
A. Resource implication: Resources Implication deals with using accessible human, material and financial resources effectively to attract a particular market segment of the total market. Whittaker’s works on the policy whatever best is grown go and get them in terms of ingredients. Their cocoa comes from Ghana and Madagascar- two finest home of beans. In terms of human resources company trust on the saying “blood is thicker than Water” today the company is still owned and run by Whittaker family. The machines used in Whittaker factory is imported from Europe. Raw materials: Whittaker’s got raw materials from different sources also they are dependent on other countries. Following listings show from where they get raw material: Milk powder, orange peel and hokey pokey-New Zealand

Sugar-Australia and Malaysia
Macadamia nuts-Australia
Peanuts-South Africa
Almonds and raisins- U.S.A
Hazel Nuts- Turkey
Coconut- Philippines
Cashew- Vietnam
Biscuit pieces- UK
Peanut Butter- Australia
Cocoa Beans- Ghana and Madagascar
Human resources: Whittaker’s mainly depends on their family members for operating and running their business. However for other purposes such as marketing and distribution they recruit workers from outside. Main marketing area of Whittaker’s is New Zealand. Also they hire distributors in other countries such as Australia as Whittaker’s export chocolate mainly to Australia.

Targeting markets:
15-25 aged females:
15-25 aged males:

B. Understanding and meeting customer’s needs: Right now Whittaker’s is offering 70 different products to satisfy different kinds of customers. Also Whittaker’s take care of Vegan and lactose intolerant customers; they make dark chocolates for them. For milk lovers they make milk chocolates. Whittaker’s don’t produce gluten free chocolates for customers. Whittaker does not use palm oil in their chocolates as per customer demand. If the customers are dissatisfied with Whittaker’s products then they can return it to Whittaker’s. Whitakers’s will replace their product with a new one. This shows that Whittaker’s really care about their customers.

Even before creating new products, they conduct consumer research groups. They also keep all customer suggestions on a database and analyze it every 6 month. So that they can work upon customers suggestions and do the required changes according to customer’s need and requirements. Whittaker’s also study trends in chocolate market in other countries to improve their products according to demands of customers. Whittaker’s used best cocoa to satisfy customers they don’t modify the ingredients genetically. As Whittaker’s know the customers don’t like genetically modified products, they like products made from pure and fresh ingredients. Targeting markets:

15-25 aged females:
15-25 aged females:
C. Identification of competitor activities: the biggest competitor of Whittaker is Cadbury. Cadbury is doing following activities with little price change to increase its market share: For the same price the dairy milk chocolate has increased the amount by 10%. Reducing the size of their king size chocolate bars altering the recipe

Changed the packaging.
Another competitor of Whittaker’s is Nestle. Nestle is following the strategy of giving less quantity at less price. Nestlé’s white chocolate is favourite among customers. 1. Nestle Milky Bar 180g – $2.79 2. Cadbury Dream 220g – $3.19

3. Whittaker’s White Chocolate 250g – $3.75

So it is clearly visible from above comparison that Nestle is trying to attract such customers who have less buying power. Other chocolate brands like Lindt are selling their products online whereas Whittaker’s has still not provided the facility of online ordering of chocolates to the customers.

D. Evaluation of market performance: Whittaker’s market performance is very good. Whittaker’s mainly stresses on Quality of the product. Whittaker’s market performance can be measured along product, price and place as follows: Product: Dark chocolate has always been best seller for company by setting a trend or a saga of taste. Its high quality cocoa beans and it is family sized blocks of chocolate having 72% dark Ghana chocolate. It is popular in KIWI people of New Zealand because Whittaker is KIWI owned company and has been one of the good competitors. Its vegan preparation add features in this chocolates Product Support for Whittaker’s products:-

The product support for the Whittaker chocolates are, contact centre details, other elements like phone number, email communication and customer support details. Also, retailers always have taken Whittaker’s as the most appreciable manufacturer of market for its quality and long term appreciation of customers. Internet is also play a crucial for product support because it is ultra-modern and technology. It has the pages on Facebook, LinkedIn, @twitter, web pages and other blogs. Product differentiation for Whittaker’s products:-

If compared with other big market players like Nestle, Ferro and Cadbury the range of products at Whittaker’s is unmatchable. If we talk about differentiation, as we know there are 33% cocoa in this chocolate and only 21% cocoa in Cadbury chocolate. All the cocoa for Whittaker comes from Ghana and Madagascar. All are gluten free as comparison to other companies. Price: Value-Based Pricing:-The strategies to put price first as a primary factor and not the exclusive is Value-based pricing. Whittaker’s set its pricing lesser as a tag of profitability and more as a cost to quality. The price for Whittaker’s seems higher if compared with any foreign brand. The ‘Creamy Milk’ product of Whittaker’s has a direct competitor in global market i.e. ‘Dairy Milk’ form Cadbury.

KIWI mostly people prefer to go for Whittaker for its purity and vegan .So it goes with Whittaker’s also, they set the price as not to earn the profit only but to keep the clientele attached with brand furthermore. Competition-based Pricing: Whittaker follow the steps to stay longer in the market via setting the price of goods in accordance with the price of similar products (already existing or newly launched).As we know very well, Whittaker chocolates are liked by KIWI people not only of its pricing but also their quality in chocolates. According to marketing manager of Whittaker, cocoa butter is more expensive but still they are selling chocolates on normal price which is beneficial for company output as comparison to other company cocoa like Cadbury.

E. Segment viability and segment attractiveness:
Segment viability: A market segment to be viable it satisfy following criteria: Measurable
Substantial
Accessible
Defensible
Durable
Competitive
Homogeneous
Compatible
Segment attractiveness: An attractive market segment is one that offers solid current or long-term profit potential for your business. Companies typically consider the various segment options they have to market to and may target one or multiple markets depending on how much money they have available to invest in marketing. Attractiveness of a segment depends upon following aspects: Size

One of the most attractive features of a market segment is its size. While the largest segments do not always offer the best potential, it is better to have a larger potential market when possible. With larger market segments, advertisers can generate business without having to pull in as high of a percentage of the market segment. Long-term sales volume and profitability are both higher with large markets. Growth Potential

Another trait of attractive market segments is untapped potential. With emerging markets or market segments that have not seen a full range of product or service offerings, a company has more opportunity to generate business and expand market share. Additionally, the opportunity to derive high profit margins by offering value in a way that the market has not experienced is a draw. Higher profit margins mean you can sell less and still make money. Competition

Along with the traits of the market segment, the amount and quality of the competition already serving the market significantly affects a segment’s attractiveness. Generally, more competitors means a business has to work harder and invest more in advertising to earn business and increase market share. When considering two market segments, the one that poses a less competitive environment is most attractive if other factors, such as size and potential, are constant.


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