1. Executive Summary1
2. Current Situation3
3. External Environment4
3.1 Macro Environment4
3.2 Porter’s Five Forces Model of Competition8
4. Internal Analysis10
5. Strategic Factor Analysis Summary (SFAS)17
6. Current strategic21
6.1 Business-level strategic21
6.2 Functional-level Strategies23
6.3 Corporate Level strategies24
7. Recommended strategies26
7.1 Business-level strategy26
7.2 Functional Strategy28
7.3 Corporate strategy31
Appendix A: External Factors Analysis Summary (EFAS)43
Appendix B: Internal Factor Analysis Summary (IFAS)44
1. Executive Summary
The following marketing plan forms the basis for achieving Haigh’s company vision of becoming a successful top quality chocolate confectionary provider. The recommendations based on the analysis contained in this report allows us to outline the best strategies to follow for the achievement of the company’s strategic goals. The confectionary industry in Australia is dominated by few large players with fiercely high competition. Whilst the target market Haighs plays – targeting consumers seeking high quality premium chocolate, Haighs is one of very few providers, but the quality of chocolate provided for substitutable brands are also reasonably high. Haighs would need to ensure differentiation in their product quality; brand image, brand loyalty and brand awareness to be competitive within the market place.
Haighs being a family owned and operated business, their consistent management style ensures its operational control in all areas of business are strategically aligned. In analysing Haigh’s external and internal strengths and weaknesses, operational efficiency and consistency such as efficiency in production process and stringent quality control process are found to be the main strengths whilst risk of easily being substituted with cheaper chocolate confectionary products and lack of diversified management experience due to being family operated business, are stated to be the main determinant in realizing further success for Haighs. Whilst change of management structure in view of introducing wider range of management experience is outside of this marketing plan’s scope, in order to overcome the determinant analysed, there are number of other areas Haighs can look into.
In order to improve efficiency, strengthening of relationship with Haigh’s suppliers is recommended. Whilst Haighs has been successfully maintaining high quality chocolate production, this is required to ensure high quality products are continuously delivered for the future. Cross training of staff to increase labor efficiency is also recommended. Through having staff cross trained, Haighs can enjoy use of less employees and savings will arise from it. Active marketing activities are also encouraged. Haighs can look into wholesale supply into large hotels or exclusive dining places to create economies of scale. Through innovation, it would need to further develop its product in accordance with today’s consumer preference. Low fat, low sugar with high quality chocolate is recommended and opening of Haighs branded cafes that will bring new experience to its consumers are suggested. Haighs being the exclusive chocolate brand with high risk of being substituted into other brand, brand loyalty is the key in Haigh’s success. Launching of loyalty program, discount for seniors, and connecting its customers via social network sites are examples of building brand loyalty for Haighs. The report concludes by providing implementation plan to adopt the above recommendation that will help Haighs to remain competitive, sustainable and successful within its chosen market.
2. Current Situation
Haigh's was founded in 1915 in Adelaide, South Australia by Alfred E Haigh and has been successfully run by his son, grandson, and great-grandsons, Alister...