BUSN9022 - Charlesworth Nuts, Essay on Marketing activities of company PDF

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Summary

Charlesworth Nuts, is a specialist in Gift Baskets packed with Australia's Best & Freshest Nuts, Fruits & Chocolates and is based in Adelaide, South Australia. In this assignment you are required to research and discuss the marketing activities implemented by Charlesworth Nuts....

Description

Flinders Business School Student declaration: In accordance with the Flinders University information on academic integrity and plagiarism, referred to in the Student related policies and procedures manual (http://www.flinders.edu.au/ppmanual/student.html ), by submitting this cover sheet as part of my assignment I hereby certify that the work submitted in this assignment is entirely my own has been expressed in my own words and has not previously been submitted for assessment. Student’s Name FAN Topic code

BUSN9022

Topic name

Marketing Principle

Tutorial lecturer Assignment name

Group Assignment

Word count

3274

Due date

22nd May 2020.

Date of submission

22nd May 2020

Is this a resubmission? Yes

No

PARTICULARS

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TABLE OF CONTENTS:

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Assignment Cover Sheet

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Table of Contents

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3.

Introduction

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4.

SWOT Analysis

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Factors influencing consumer behaviour

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Market Segmentation

7 &8

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Conclusion

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References

10 & 11

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INTROCUCTION

For over 80 years, "Charlesworths” have been manufacturing and distributing almonds, dried fruit and chocolates. They enjoy what they do, that’s why they’ve been doing it for such a long time and they are excited about their goods, their past and their customers. Since 1934 they have been family owned and run in South Australia, that’s right, meaning they are up to the fourth generation of “Charlesworths”! They opened 4 new shops at Colonnades Shopping Arcade, City Cross Arcade, Tea Tree Plaza and Elizabeth Shopping Centre throughout the 1970s and 1980s. Their glazing and chocolating divisions were formed and they offered their nuts all fresh, never-before-seen makeovers. During this time they also began manufacturing their collection of gift hampers and bags, which have been their most popular items ever since. People in Australia love their chocolates and nuts. They have owned a shop in Burnside Village since Village since 2004 and in November 2013 they owned at No. 1 Rundle Mall on the old Darrel Lea Site, one of South Australia’s busiest thoroughfares and most popular sites. They have recently opened their first ever country store in Mount Barker, SA.

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Today 3 sons, Rhyns, Kain and Liam, the fourth generation are operating in several areas throughout the corporate, forever endeavour to expand their roles and learn the maximum amount as doable regarding the business. They’ve been additionally been endowed a fifth generation-very little Jayde Ava Charlesworth, the female offspring (and initial girl to turn within the Charlesworth lineage in 90 years). Their mission is to form and sell the most effective and freshest haywire, fruits and chocolates in Australia whereas making and unforgettable experiences for our customers at each chance. They have 11 retail stores settled in Australian state furthermore as a web store. All marketing starts with the consumer. So, consumer is a very vital person for a marketer. It’s Consumer choice and preference that, what to purchase, why to purchase from where to purchase and from whom to purchase. A successful business owner know the liking and disliking of the customer. They know the time and the quantity of goods and services, a customer may purchase, so that they store the goods or provide the services according to the likings of the customer and Charlesworth is the one of them who knows those things.

SWOT ANALYSIS Nowadays, many business organization use SWOT analysis approach to identify their strengths, weaknesses, opportunities and threats related to their business. Strength and weaknesses are considered as an internal factor whereas opportunities and threats are the external factors (Wan et al., 2011). Companies have control over its internal factors but they don’t control external factors. Following is the SWOT analysis for the Charlesworth nuts company which is based in Adelaide, South Australia specialized

in gift baskets packed with fresh nuts, fruits and chocolates. Strengths of Charlesworth Nuts: Best quality: Quality is the most important aspect of the business to achieve its goal. Best quality has the power to influence a buying decision. Charlesworth nuts are selling best quality nuts and that’s why this is their one of the strongest strength. Quality is the key driver for the success of the business (oil express, 2013). Innovation: Innovation helps the business to grow faster as it can fulfil the customers need or requirement. For instance, the gluten-free product (chocolate aniseed Ring). Goodwill or reputation of the company: Goodwill is an intangible asset of the company. Charlesworth is carrying its business since 1934 which shows that it has loyal customers and recognition in the market.

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Weaknesses of Charlesworth Nuts: Lack of social media use in marketing: After doing online research about Charlesworth Nuts, it’s seen that company is not using the social media platform to promote its product. Social media marketing helps a company to increase its revenue (Wireless news, 2013).

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Customer service: Customer service plays a major role in the company’s success. For Charlesworth nut, on the company’s website, there is a feature of live chat which is a very good example for customer service. Good leadership: As from the company’s history, we know that its family-owned business with great values. Good leadership is a crucial part of the company’s growth.

High pricing or Expensive: The Charlesworth Nuts products are slightly overpriced. It’s a human tendency to find a cheaper option. The company must review its product pricing and give competitive rates to attract more customers. No innovation in packaging: As a corporate social responsibility, many companies have changed their packaging. There is no innovation seen in Charlesworth nut regarding packaging style. The company should use eco-friendly products for packaging. Small market: As we know that all the Charlesworth Nuts has 11 stores and all are based in South Australia. Company is only targeting the customers with South Australia. The company should try to expand its operation and set up a new store in other states. Financial limitation: As Charlesworth nuts are a family-owned business. It could be possible that it has financial limitations as the only family is providing the capital. Opportunities of Charlesworth Nuts: Global market: Due to globalization, the Company can get more customers from many different parts of the world. There are no geographical borders exists in the current world. For instance. In future company can start the export. International trading helps the company to attract more customers and increase market share (Business Journal, 2014). Partnership with other companies: Company is currently doing all its home deliveries through Australian Post. The company can go into another partnership with Uber to meet up with it raising customers demand. Introduce new products: Company should do the survey and try to add another range of product in the market. For example, a company can introduce ice cream with nuts as a new product. Threats of Charlesworth Nuts: New competitor: Competition is one of the biggest threat every business faces. Company has no control over the competitor. The company should always be ready to deal with it. Not a necessity good: Nuts are not categories as a necessity good and can easily eliminate. Nuts are labelled as rich people food in some Asian countries. The South Australian population is multicultural which include Asian and that can be one threat to the business. Online shopping: Online shopping trend is getting more and more popular day by day. Due to online shopping, customers have more choices to choose and that can affect the business. Natural calamities: Sometimes natural calamities can affect the business as nuts are farming product.

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There are variety of definition of the discipline about consumer behavior. In general, It refers to the process of actions which lead to consumer purchase some products which might involve individual or groups consumers.

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FACTORS INFLUENCING CONSUMER BEHAVIOUR

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Charlesworth Nuts is specializing in nuts, sweet, chocolates, and dried fruit which is considered not necessity to daily life. For this reason, the factors that impact consumer behavior are slightly different to necessity or fast-growing category, for instance, fashion, or health and beauty. First, the situational influences include physical, social, time, motivation and shoppers’ mood. Some features have changed rationally due to technology advance and lifestyle adaptation, for instance, the dominance of mobile phone in shopping and payment. Following Australian Post’s Shopping Report released 2019, the data shows that 73% of Australian household purchased online in 2018 which made up to 10% of total retail of the year (Edward Jones, 2020). With more people are opting to purchase online, marketers of Charlesworth should shift their focus into impacting people through online channels rather than in-store. In addition, we examined the online shopping platform of Charlesworth Nuts and found that the company’s website was poorly designed and not catchy enough. Although the products list and price were in place, the interactive tools and social media incorporation were not employed. Obviously, the firm has not been successful in making good use of technology to enable shoppers a better shopping experience. Of course, they are losing their chance to bring Charlesworth Nuts brand to wider customers especially social media enthusiasts. Additionally, time is also a factor which is worth to take into account. Australian Post finds that 15% of eCommerce take place within just 5 weeks started from November 11st to December 15th (Edward Jones, 2020). This is understandable because most shopping events fall into this period which are Click Frenzy, Black Friday, and Christmas. Charlesworth Nuts’ products are perfect for gift giving and their marketers should capitalize on this factor to boost year-ended sales. Unfortunately, we do not have access to company sales data to discuss further on this factor. Secondly, we will discuss the group factors which include some serious information about consumer behavior of Charlesworth Nuts. One of the most important factor in this area is culture. However, culture has its own sub-facets or so-called subcultures, for instance, ethnicity, age, sex, language, religion, education (Ling 2009). The relationship and geographical proximity between Australian and Asia especially SouthEast Asia make culture learning become indispensable to any marketing activities in Australia. Following 2011 Census of Population and Housing, about one quarter of population were born oversea (ABS 2020). This is one of distinctive characteristic of

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In such a competitive world where consumers are constantly overwhelmed by information, and unexpected events, deeply understanding and impact the behavior of consumers are the key to marketing success. We can summarize factors influencing consumer behavior within following figure (Elliot 2017).

Australian consumer base. Obviously, this fact makes the subculture become even more important to marketers. Due to the high level of importance of culture to consumer behavior, we should discuss further about the relationship of age and brand preference. Although not many empirical studies can analyze and confirm the variation of brand preference and age, some study suggest that brand preference is formed during the age of 15 to 30 (Cole 2008). For example, a 25 of age female migrant who were born and raised oversea might not choose to buy Charlesworth Nuts’ products because her preferable brand had been well-established. Another factors which are worth to consider is psychological and personal aspects. We all familiar with Maslow’s Hierarchy of needs which dictate people behaviors based on their current situations. For example, people with low income obviously are not ideal target customer base for Charlesworth Nuts due to their necessity of products. In addition, from psychological perspective, some people are more motivated than the others. A man who is considering buying chocolate for his girlfriend in Valentine day might make up his mind more impulsively than usual. In addition, the majority of Australian participate in cultural event every year, and they leisure time is part of their culture. Charlesworth Nuts can capitalize on this factor to create more appropriate marketing campaign accordingly.

MARKET SEGMENTATION

Geographic Segmentation

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To divide consumer markets into different segments is almost limitless. It is however, divided in four broad categories: geographic, demographic, psychographic and behavioural. (Elliot 2017,) (Wedel, 2000)

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Market segmentation is the foremost step in selecting target markets of potential customers into distinct groups based on similar requirements. Markets are segmented to reach customers and give them value.

Geographic segmentation is starting point and the simplest form of segregating the market. This segmentation is vital for international marketing. As the product range of Charlesworth Nuts, mainly consists of nuts, it may appeal more to the urban and the suburban population as they the population is more as compared to rural areas. With the trend of online trading, and Charlesworth Nuts adopting it, it is now catering to a wider audience. Demographic segmentation Demographic segmentation is the market segmentation based variables such as gender, age, occupation, education level, income level and much more. ( Elliot 2017,) The products of Charlesworth Nuts may in general appeal to higher level income group and the middle or older age groups. But we also see that the company has added products such as chocolate coated nuts which will appeal to the younger and adolescent age groups. They also have sweet products like that of jellies, chips, and other attractive candies that would definitely appeal the young kinds, Generation Z, (born after 2001), Generation Y (born after 1980 to 2001), or for that matter even the Generation X (born between 1965 and 1980) and The Baby Boomer Generation (those born between 1946 and 1964) and so, in general, the when it comes to age groups, it caters to almost all the age groups. (i. Elliot 2017,) (iii) Psychographic segmentation Often, it has been found that people with the same demographics may behave in different manners. This is caused by the differences in their personality, lifestyle, and values. Like demographic and geographic variables, psychographic segmenting is based on the mannerism, personality traits, values, attitudes, interests and lifestyles of the consumer. (Elliot 2017, 6.3) Large markets like the fitness market use psychographic segmentation when they sort their customers into categories of people who care about healthy living and exercise. People have diverse interests attitudes and traits for example some people are very health and fitness conscious while others are not so much. The products of Charlesworth Nuts may appeal to people who are more health conscious and work upon it. One important factor to note here is that there are a section of people who are allergic to nuts and so, these groups will not be potential buyers.

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Promotional Mix Promotion mix is one of the 4ps in marketing strategies. It is a strategy in different area that company and businesses need to consider as a way of positioning themselves. It is also the company want to the extent or the company want to be positioned in mind of the consumer. However, the promotion mix is going to discuss the company utilizes of the promotions as a way bettering the company overall position in the market. So, there are numbers of different things that company can leverage as presenting itself in a certain light but also highlighting

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Behavioural segmentation Behavioural segmentation is about applying the human touch to the business. It is about understanding how to take product beyond product and services and go to what really motivates the customers. People want to be treated as humans and this is where behavioural segmentation comes into action. It consists of what the benefit expectations are, of the product, brand loyalty, occasion, price sensitivity and volume usage. (Elliot 2017, 6.3) Brand loyalty plays very important role increasing revenue in sales and referrals are increased. Charlesworth Nuts customers in general, have had delightful experiences according to the reviews given by them, not only in terms of the products but the way they are made to feel. This definitely gives an edge to for company as well as the future customers. (iii. Charlesworth Nuts FB Page)

certain features and benefit of the different products and services. There are four elements of promotional mix which has included advertising, sales promotion, personal selling and public relation[ CITATION Lau19 \l 2052 ]. Firstly, one of the most famous elements of a promotional mix is advertising, a form of media communication paid for by sponsors. Customers can see advertisements on the Internet, in magazines, on TV, on billboards and so on. Businesses attract more and more consumers through advertising, which is an effective promotion method and a good way for brand awareness to be established and new products to be introduced[ CITATION Ana19 \l 2052 ]. Secondly, personal selling operates in a very different way than advertising. The personal selling involves a salesperson specifically that actually communicate by one on one to the potential customers. This promotion method has included both advantages and disadvantages. The advantage of personal selling is one of the most effective method of promoting the particular products and services. The method is tailoring the product message to the customers who are actually receiving the message. The sales are also observing the reaction by the customer by something like nonverbal communication and assess their needs and essentially offer them different services and products. On another hand, the disadvantages are as well as the most expensive form of sales because the company is paying for the cost for one on one basis[ CITATION The00 \l 2052 ]. In case of the nuts company, it will have to hired sales person or employee in the store and make the direct message promotion to the customers walk in the store. Thirdly, another one of the marketing strategies is sale promotion, which is a way to stimulate consumers to buy goods through promotion. Common promotion methods include giving out coupons, discounts, rebates, free samples, sweepstakes, free trials or tastings. This marketing strategy can reduce the risk for new customers' reasons to buy and increase the purchase rate among existing customers. The best way for a company to increase revenue in a short period of time is promotion. A short discount can quickly encourage customers to buy the product[ CITATION Ana19 \l 2052 ]. For example, if Charles worth Nuts gives gifts or discounts on certain holidays or holidays, holds a game in a park, and gives out a taste of Nuts in the form of a trophy, that income will increase dramatically. If the promotion can offer a buy one get one free special or a free home delivery service for some customers up to a certain amount of money. Increase purchases through promotions. Finally, it will be publicity or public relation. Publicity is information about a...