Product Selection
Gourmet truffles with fruit, herb, and flower extract infusions obtain popularity among different age groups. Technavio (n.d.) said the truffle chocolate market could expand to 1.45 billion USD in 2020-2024. Gourmet truffles have a broad market in Asia, Oceania, and South America, growing fast. The product is top-rated among young adults and affluent societies. The primary producers such as AE HAIGH Pty. Ltd., Mars Inc., Ferrero International SA deliver products through the main distribution channels, including supermarkets, drug stores, hypermarkets (Technavio, n.d.). Truffle chocolates are used in various dishes, so, actively used in restaurants.
Persona (Target Market)
The target market of this product is mature wealthy entrepreneurs capable of covering price variations. The representative of this society is 50 years old female with postgraduate education. She is a CEO of a business with an annual income of 250 thousand U.S. dollars. She is happily married and has an adult child. Her income is relatively high, allowing her to travel, shop, and participate in different events. Having analyzed her shopping behavior, we can observe that she prefers brands that confirm her status. Moreover, she wants prosperity for her business and directs all power for this. She hires special personnel to complete basic needs and travels to develop her business from one location to another. Additionally, she eats truffle laced in dark chocolate with organic fruit that keeps her skin fresh. Gourmet truffles with fruit, herb, and flower extract infusions could be a good alternative for her preference.
Promotion
Promotion and distribution of the product could be expressed through two main channels. The first channel used to support marketing communication is going to be Facebook. My persona, introduced previously, corresponds to Generation X that commonly uses Facebook to communicate with friends and family. Nowadays, Facebook uses various marketing tools, including advertising and sales promotion. As mentioned by Business Research Methodology (n.d.), viral marketing implemented by Facebook allows promoting the product in various browsers. This channel could be helpful as the most representative of the target market, including our persona, spend many times on Facebook. Properly planned sales promotion and advertising on Facebook could attract her attention and make her share her findings. Her communication channels that include her friends and colanguages allow presenting the product to the target group.
Another marketing channel in reaching our persona is going to be newspaper ads and magazines. Unlike millenniums or generation Z, her generation like to read tangible product such as newspapers and magazines. Based on her interest, we could assume that she could be interested in fashion and travel magazines. So, advertisements included in magazines and newspapers could be as good as Facebook. Additionally, this method could work as the combination of digital and printed media with various audience help to expand consumer class.
Price
In identifying price, it is crucial to consider the profit. Profit is known as the difference between total revenue and expenses needed to produce the product (Campbell, 2020). Obviously, the company wants to reach positive profitability in dealing with the product. At the initial stages, the start-up could not be profitable with little or zero profit (Campbell, 2020). Nevertheless, with an adequately planned marketing strategy, companies could increase their profit over time. High profitability should cover investments spend on technologies and equipment for production (Campbell, 2020). The presence of regular customers and the general public of the product could also increase companies’ profitability.
The crucial factor to consider increasing profitability is the overall demand for the product. In our case, newly introduced Gourmet truffles with fruit, herb, and flower extract infusion would be more popular than a basic chocolate truffle without any extras. Higher demand could be explained by the fact that there are no products like this. So, this offers to attain a monopoly on the Gourmet truffles with fruit, herb, and flower extract infusion market. Furthermore, a new line of chocolate truffles could be launched without any significant expenses. Overall expenses should not exceed total revenue, as Chocolate Bliss already has management tools needed for manufacturing.
The pricing strategy used for Gourmet truffles with fruit, herb, and flower extract infusion is premium. In setting a pricing strategy, we should consider our target group’s purchasing behavior and habits. Wealthy populations desire products with the highest price and corresponding high quality, which is sometimes unavailable for the general public. The premium pricing strategy is a good representative of a higher profit margin based on the product’s conception. Setting premium products, we apply psychology and stereotypes that item with higher price is associated with top product and helps to promote the brand. Although premium pricing limits customers’ purchasing power and has more expenses related to marketing and promotion, the profitability of these products is higher.
As the main customers of new chocolate Gourmet truffles with fruit, herb, and flower extract infusion are upper-class women entrepreneurs, the premium pricing would suit their lifestyle. Moreover, the product could be distributed at charity events and another gathering of this group. My persona, the part of generation X, tends to select new goodies for charity events. Her previous order from Chocolate Bills proves her interest in such types of products. Her attraction to brands will not make premium costs surprising for her. The possible drawback of this price could be the appearance of a similar effect in the market from another distributor.
Place (Distribution Channels)
The global pandemic made it challenging to predict the possible outcomes related to the marketplace. Many shops have been closed or severely limited in operation because of a pandemic. The solution to the problem appeared in online markets and shops that operate without in-person contact. Based on the current situation, Chocolate Bills could introduce e-marketing and home deliveries. A personal visual approach could create a close relationship with the customer and ensure loyalty in the future (Cadby, 2021). Additionally, this strategy could be applied in communicating with companies interested in the product.
Product
The product should be established as a necessary and unique component needed to persona. The main goal, here, is to convince the persona that this product corresponds to her demands. The persona should recognize that Gourmet truffles with fruit, herb, and flower extract infusion are the ultimate factor of her success. Moreover, the marketing campaign should give her a vision of her success and achievements. The products from the premium segment usually do not require extra advertisement. They could help Chocolate Bills to create a brand of higher class. Moreover, the invention and success of one product in the market could lead to the presentation of additional products in the premium class. This could increase the revenue of the company and provide the perfect ground for brand development.
Evaluation
The marketing plan described above could help develop and increase the revenue of the company. This plan considers qualitative factors such as lifestyle and buying habits and quantitative factors such as income level and purchase level. Analysis of the market and purchasing strategies helped to present possible benefits and pitfalls related to production. Moreover, it covers the psychology and buying capability of the persona and target group.
References
Cadby, J. (2021). Can COVID-19 melt the craft chocolate industry? Food Ethics, 6(2), 1-14.
Campbell, P. (2020). Premium pricing examples, definition, and expert insight. Web.
Facebook Inc. marketing Communication mix – Research-Methodology. Business Research Methodology. (2017). Web.
Truffle chocolate market by product and geography – forecast and Analysis 2020-2024. Technavio. (n.d.). Web.