MBA 603 Final Project – Marketing Management

Marcos Barboza
Stevens-Henager College

Case Problem: Final Project SH Confectioners

What should your strategic goals be?

As the CEO of SH Confectioners, I have requested our marketing department to create a

marketing plan for our new line of Grand Marnier filled chocolates. Our marketing department

has met at the CEO’s office and has devised a strategic plan set to initially conduct a market

survey to analyze how the public will likely show acceptance of our new product and to obtain

data based on public opinion about companies that are main competitors and/or potential

competitors to our new product. The marketing department at SH Confectioners understands that

a strong marketing strategy, that is able to generate solid data on consumer behavior is very

much needed, so that our company can understand how the new line of filled chocolates is to be

accepted in the market; and how the expected return on investment will be achieved and in how

long.

The marketing department at SH Confectioners will start the marketing plan for the new

line of filled chocolates having the development of the 4 P’s of marketing in mind.

The first P is for Product. We must analyze the product and its features, distinctions, design and

shape. We need to create a marketing plan that will obtain answers for questions such as, “ How

will this product impact the customer’s decision-making abilities?”. Our marketing plan needs to

take into consideration such items as the new product packaging, shape, and flavor. All of these

features need to be effectively studied and well-developed strategically.

The second P is the Price. It’s very usual for consumers to be curious about product price

over any other marketing strategy. A very careful price analysis is critical for the product to be

accepted successfully. Price shouldn’t be a barrier while buying the product. Consumers usually

have in mind the following question, “ How much will this new chocolate line cost?” . Price may

destroy product acceptance. The initial contact customers will have with a new product is very
critical and price shouldn’t stand in the way, thus preventing the customer from buying the

product. The price strategy should come from a thorough analysis of the competition prices and

also from the target market. Price will make or break a product. Price makes the distinction, and

price should be analyzed very carefully because price is seen as the leverage the consumers have

in the final purchasing decision they will make.

The third P is the Place. Defining the target audience, distribution channels and our

consumer pool is highly important as to define the strategy to be crafted. For example, a

chocolate filled with orange liqueur in Las Vegas or New York will have much a larger

consumer pool than in Utah where most people abstain from alcohol. Mistakes in defining the

place can completely ruin our marketing plan. The purchasing power of our consumers needs to

be seriously studied. Which target consumer are we aiming to reach? How much disposable

income does our target consumer have? For example, Italian auto-manufacturer Ferrari from the

beginning set their target audience as a group of consumers with high purchasing power. Ferrari

automobiles were never manufactured with a focus on low-income consumers; Ferraris are built

but for drivers that have high purchasing power. This P in my view is a top priority for our

marketing department because we need to understand where to place our target consumers within

our marketing plan; our marketing needs to map how the consumer will get to our chocolates.

The final P is promotion. A new customer searches for new products. Consumers already

have their preferences and one of the strategies that will make the difference is the use of

marketing promotions. For example, buy one and get the second 50% off or buy one, get the

second free. The loyalty card is another strategy to win customers. We may seek a partnership

with Cinemark and offer free samples to movie-goers in the lobby area as they go to their shows,

and the chocolates the consumer can sample will then show up in a commercial on the movie
screen prior to the new movie trailers. Commercial featurettes where someone eats chocolate can

definitely trigger chocolate craving in the movie-goers; this combination or marketing mix will

promote our chocolate and stick our company name in the minds of our consumers.

After defining the marketing strategies applied in the 4 P’s we have to establish our goals.

These targets should set deadlines, dates, quantities and states where we will market. The initial

proposal will be launching our product in the following states Nevada, Washington, Oregon,

California, Arizona, Idaho, and Utah. The product will be launched next Valentine's Day in

2016. In Nevada we will apply a more appealing strategy and the slogan can be, “ Chocolate

will make your night unforgettable.” In Utah, for example, it would be perfect to launch our

candy in a local version specifically for Utah without any alcohol liqueur filling. In other states

we will segment strategies that meet the needs of the local audience. Our goal is to sell 2 million

chocolates in every state in the next month of February 2016.

What will you require of the marketing department's plan to market your new product?

As the CEO of SH Confectioners I will need as much support from the marketing

department through their skills and experience as I can get. First point to ask from the marketing

department is market research, so we can evaluate the market. For example, how many

chocolates are consumed monthly in each state? Which the company sells more in each region?

What will be the distinction for SH product to stand out in the market? What kind of advertising

and marketing will we implemented? What will the product design look like? What is the quality

and the price point of the product? What’s the buying potential power of my target audience?

I will need to make sure that our company SH Confectioners has a structured and highly

qualified marketing department. I can’t jeopardize a project where millions of dollars will be
invested; we can’t be amateurs, and we have to bring our highest level skills to the table. I will

stand beside the marketing department to help them in their strategies as a facilitator of the

marketing implementation process. We are a team and we won’t win if we stand alone.

Will you have any regional concerns with your product?

Because it is a product that will be sold in completely different regions as the CEO I have

a concern in the target audience definition aspect. The Western states offer us the opportunity to

market to a very eclectic public, for example, consumer differences between Utah and Nevada

are not only cultural but religious too. As this is a product that contains liquor, I believe that we

have to understand that we are in a more segmented market, than if we were just selling milk

chocolate. As CEO of SH Confectioners I will work with our marketing department to launch in

Utah a chocolate candy with artificial flavor liqueur without alcohol added. Regional concerns

are always present in any business that market to different demographics, however if we have a

skilled marketing team the problems we might face will become details in the highly skilled

development of our products.

Should you make a substitute available to the liquor component of the filled candies? Explain your
decision.

As a strategy to look for a secondary plan if our attempt to launch chocolate with liqueur

was something frustrating, as a replacement strategy we would have a line of chocolates with

fruit fillings and a line of milk chocolate. When in doubt, milk chocolate will always be an

attempt with a percentage of very positive successes, and fruit fillings would be our advantage.
We could insert an aphrodisiac fruit as something different replacing our liquor without

attracting much attention in a negative way. Creating structured using marketing strategies with

caution and with much study, exploring the human potential of our team, this is one of principal

strategies and resources that as CEO I will strive to prioritize and encourage our employees to

make a difference.

(1) The overall scope and mission of the organization.

The overall scope of Mars Corporation is to meet the needs of its customers by putting itself in

their place. Not an easy task but it is part of the main view of Mars striving to do the best for

their customers. Its mission is practically divided into five principles: Quality, Responsibility,

Mutuality, Efficiency, and Freedom. Quality is one of the most important aspects defended by

MARS because they believe in offering the best they have for their customers. Responsibility is

another factor that it is up to each employee to give their best and be responsible for its daily

tasks and contributions to the development of the organization. Developing each other is much

more than cooperating only, it is the opportunity to demonstrate empathy, serve, help and be

more concerned about our neighbor, who may be either the customer, consumer, employee or

owner of the organization. The last principle that is addressed by Mars is efficiency, we must not

only be good, but we must be agile. We should be able to do better, in better time and with

higher quality. Mars believes that when we apply these five principles, not only we will be

reaching the company's mission as we will also be meeting the needs of our customers and

employees.

(2) Company goals and objectives,

The purpose and goal of the company is to become the best of the best sellers in their segment.

According to them it is necessary to make sure they are doing the best of the best and are

investing the best methods to make this goal possible. Doing better is necessary to always have a

self-analysis, and the constant search for development. It is precisely this that the market needs

people who are willing to do the best with the best that is in them. To contribute our best to make

the goals and objectives that are achieved efficiently and successfully.

(3) A source of competitive advantage,

Make lasting improvements. We need to make sure that each employee has contributed to the

company to make it something better. Always focusing on the client, making a difference in

product quality and customer satisfaction. A search for a competitive advantage is not an easy

task, rather it is challenging. However, the Mars company is not looking for professionals who

do easy and simple things, but rather for professionals who are searching for excellence, doing

differently to achieve a prominent position in the labor market. Competitive advantage does not

mean being dishonest or harming the image of our competitors, it means standing out from the

competition with a proposal to achieving a prominent position for the excellent work offered and

the ability to do better that which we believe to whom deserves our best, and those are our

customers.

(4) The development strategy for future growth of the SBU,

Being able to innovate. Stopping progressing, growing, is not part of the future of Mars growth

strategy. The term innovation should be applied on Mars SBU as an essential tool for the

continued development of the organization. A company that does not innovate can be directed to

the museum. We do not want to be part of a historical museum, but rather to make

history in the business world. Innovation is a guaranteed success tool. It's almost zero chance for

a company to grow without innovation, without change, without offering something better to its

customers. Innovation as the word itself says is the act of innovating, we must act and implement

new features, methodologies and business plans. The focus is that our clients see us as a

company that always has something new and different to offer, and mostly always has

something new to add to people's lives.

(5) The allocation of corporate resources to ACCOMPLISH your goals,

Corporate resources to accomplish their goals is to put the customer first by focusing on the

needs of our customers; when we follow this success is inevitable. Maintaining product quality

and innovation, thus seeking to make a difference in the labor market. There is a well-known

phrase that says , "The customer is always right," I would change this phrase to: "The customer

is always the right reason." When we place the customer as the main reason of our business it is

much easier to meet his needs. Using our resources to meet the needs of our customers, not only

helps us as to be a successful professional but it makes the difference when it comes to

excellence in serving the needs of our customers.

(6) Synergy through the sharing of corporate resources, intangibles, or programs across

businesses or product lines.

The synergy process is critical for the development of each product line, departments and

business programs. Being in synergy is much more than just being integrated with the process

but it means being involved in the organization of the business processes. I would say we must

not just be involved rather we must be committed to the company, with our customers and

employees. Synergy is joining forces to succeed. The application of synergistic process is a line

of business or product applied to a tangible or intangible product, in both circumstances, tangible

as wells as intangible, we must make the best from the best that we have.

As a business strategist my goal is to apply these concepts discussed here in my organization, so

that these resources not only become theoretical tools, but tools with a focus on achieving

satisfactory results.

Marketing strategies should be studied and discussed with great caution. A well

elaborated market segmentation helps us in the process of targeting and segmenting our

customers correctly.

The first step that will be defined in our company will be the implementation of market

segmentation. Because our product is a liqueur chocolate, our target audience will be above 21

years of age, because it is a product with a level of alcohol. Our audience will be defined as

upper middle class, we do not want our product resembling any low cost brand or to be

compared to a common chocolate. Consequently, right after identifying our public, we must

direct our sales channel and the distribution of our product. For example, we will seek

partnership with flight companies to deliver our chocolates during flights, but because it is a

exclusive product, our product will be distributed only to business and first-class travellers.
 Our strength is in the quality of our product and in the variety of flavors we can offer.

The format of our product will follow after the shape of geometrical figures, each shape will

have a different flavor. For example, orange liqueur, can be in square format, strawberry liqueur

can be in rectangular shape, and so we will continue our line segment according to the shape of

the product.

Since our target is a more selective audience, our selling point will be a network of

selected shopping malls and a higher public standard. Another strategic selling point we will aim

is the creation of a deal with the Starbucks network known for its famous coffee. We can work to

consolidate a deal with Starbucks, so we can distribute our chocolates for retail at their stores.

We believe that at first we should enter the process to join forces, so a partnership with Starbucks

would open doors for our product to reach an outstanding position quickly in the labor market.

The price will be set before a careful analysis of our competitors. Our main competitor is

the chain Godiva Belgian chocolates, and we want to gain market share by offering a much

wider selection than our competitor.

Initially our product will be launched in Las Vegas, at the hotel Venetian, where a store

will be installed to serve our customers. At first we will launch our chocolate liquor, so that we

can reach a target audience and the name of our product is positioned in the minds of our

consumers. Then, we’ll enter in a line of aphrodisiac chocolates . But because it is a future

project, we will not discuss the details at this point.

Every marketing process should always have a plan B as a second option. Initially all our

disclosure will be on top of our chocolate liquor, but if the expected results do not happen
according to our expectations, we will apply plan B and we’ll restart the process of the product

life cycle. Our second option is our aphrodisiac chocolate, which would provide chocolates with

fruits extracted directly from the Amazon rainforest in Brazil. Fruits like açai, passion fruit,

cupuaçu, jackfruit, among other fruits. Our target audience will remain the adult audience, but

the fruit will have no level of alcohol.

The philosophy of our company is to seek and to analyze our marketing plan thoroughly.

We do not want to leave a negative marketing impression in our consumer's mind, one of a

company that did not work. We have to succeed and we succeed we will. We have to grow. The

product life cycle is divided into four parts and the first part is the introduction phase. Every new

beginning is hard. The financial investment is very high, and a lot of money is spent on

advertising and marketing at the stage of product introduction. The next step is growth, dealing

with the acceptance and growth of sales of our product is a task that requires caution because our

focus is to reach the next stage of the product life cycle, which is to reach maturity. Reaching this

stage is a satisfaction and a reflection of a job well done. At maturity is when the product sells

for itself, for example, if Coca-Cola stopped advertising and publishing commercials its brand

would already be sold by itself. It's a wonderful stage, but a stage that requires much care,

because the next step in the product life cycle is decline. The decline is the stage no one wants to

go to, that’s why the strategies of how to win and maintain our client should never be applied left

aside. But if our product ever enter the declining phase of our plan B mentioned above will come

into action and we’ll restart a new product life cycle.

As head of the marketing area, I will develop continuous training for the improvement of

our stakeholders, so that our product has all the care that our client deserves. We want to be

recognized as a serious company, investing in better products, better professionals and mainly
offering to our customers a line of tasty chocolates, we can deliver to our customers an exclusive

product and above all that we can get a positive marketing when it comes to customer

satisfaction.

References:

1. Kotler, P., & Keller, K. L. (2012). Marketing management. Upper Saddle River, NJ:

Prentice Hall.

2. Weinstein, A. (2013). Handbook of Market Segmentation: Strategic Targeting for

Business and Technology Firms, Third Edition. Hoboken: Taylor and Francis.

3. Kotler, P., and Armstrong (1989) Principles of Marketing

4. Our Strategy and Priorities | Mars Principles in Action Summary | Mars. (n.d.). Retrieved

from http://www.mars.com/global/about-mars/the-five-principles-of-mars.aspx

5. Kotler, P., & Keller, K. L. (2012). Marketing management. Upper Saddle River, NJ:

Prentice Hall.

6. Pearce, J. A., & Robinson, R. B. (2015). Strategic management: Planning for domestic &

global competition.

7. Kotler, P., and Armstrong (1989) Principles of Marketing.

8. Kubr, T.,& Marchesi, H.(1998) Starting Up.