International Marketing Sample

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International Marketing Sample

Executive summary:

The report deals with the importance of international marketing in the industry. The approaches to the existing segmentation, targeting, and position in a different country are discussed in the assignment. The report includes a brief introduction about the company profile and background. The critical analysis of the current STP approaches of the company taken is illustrated in the assignment. The report also has the development of the segmentation, targeting, and positioning of the company in the Indonesian market.  The justification of the STP approach is also discussed in brief in the assignment.


Haigh’s Chocolate is a renowned chocolate maker company in Australia that is wholly owned by the family of Simon, Alister, and John Haigh.  Haigh’s Chocolate is under the chairmanship of John Haigh and Simon and Alister are the Managing Directors.  The company has approximately 500 people working in the chocolate factory, 15 retail stores, and administration of the company, located all across Melbourne, Sydney, Adelaide, and online. The company uses fresh ingredients and specializes in making chocolate from cocoa beans that are sourced from various plantations around the world (Brady, 2014).

The company has six stores in Adelaide that include the Beehive Corner.  The company has six stores in Melbourne that include a store in Block Arcade which is a very beautiful heritage. Three of the company stores are located in Sydney including the store in Chatswood Chase on the northern shore. The company also ships its products online. The company has great demand from groups and clubs, tourists, and locals.

Higher Education and Universities in Australia

International Marketing

International marketing is a very vital aspect of the planning process of any business that is intending to go for globalization. In today’s era of advancement and growth, every marketing organization irrespective of its size is affected by global competition in some or the other way. Proper research regarding the potential market in terms of the legal and political environment, the structure of economics of the international market along with the targeting and segmentation of the customers has to be done by any company that seeks to go global. Small business chocolate stores differentiate themselves by promoting specialty and niche chocolate products, services, and gifts in a corporate-dominated global market.

According to Darley, Luethge & Blankson, chocolate is the largest category by volume and value shares further registering for the fastest growth among the products in the confectionery market in Australia (Darley, Luethge & Blankson, 2013).  The Confectionery market in Australia is growing at a steady rate. At the same time, it is confronting tough competition from imports from Asian countries that provide cheaper products. The population of Australia is aging which is resulting in the creation of opportunities for the manufacturers to introduce a higher number of good quality products. The overview of the confectionery market allows comprehensive insights into the analysis of the STP process for expansion in Indonesia. Consumers always seek products with the best quality at the cheapest price. As per Diamantopoulos, et al, the company has to take the cost of the organization along with effective segmentation, targeting, and positioning process for attaining the market position in the Indonesian market (Diamantopoulos, et al., 2014).

Haigh’s Chocolates – STP Approach in the Indonesian Market

The Segmentation, Targeting, and Positioning (STP) approach refers to the strategic approach which is more customers based rather than products based. The STP model is beneficial for marketers to prioritize their plans and develop and offer personalized communication to consumers (Gengler & Mulvey, 2017).

Haigh’s Chocolate makers have been offering customers world-class chocolate experience for generations. They intend to use safe and hygienic techniques and maintain environmentally friendly practices while offering authentic chocolates with a blend of distinct aromas and flavors (Haighschocolates, 2017).

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It involves dividing the market into subgroups known as segments based on certain criteria. The main aim of this activity is to identify the segment which will be most profitable for a firm.

In the case of Haigh’s Chocolate, the company has mostly focused on the premium segment of the market. The USP of the company has been to offer high-quality chocolates with different kinds of flavors. Since Indonesia has a growing market that is highly receptive to confectionaries, there is an increase in overall consumption of chocolates. But the domestic players are mostly favored by consumers since they have a better understanding of local tastes and preferences (Harr, et al., 2015).


Target market refers to a specific group of customers on which a business focuses its marketing tactics. Haigh’s Chocolate mainly focuses on young consumers and couples who purchase chocolates for consumption and as gifts (Harr, et al., 2015). It offers chocolates such as – Boxed chocolates, loose chocolates, Gift collections, Wedding collections, etc. Thus the current target group of Haigh’s in Indonesia includes young people who are not just willing to purchase chocolate as a snack but are also purchasing it as gifts on special occasions like Weddings, Valentine’s Day, Birthdays, etc.

The chocolate company has scope to expand its target market not just in Indonesia but on a global scale since chocolate as a confectionary is consumed by almost everyone and the premium quality of chocolate being offered by Haigh’s can be beneficial for other age groups as well (Li, et al., 2013).

Accounting for Managers Sample


As per Parry, et al, Positioning refers to an attempt to influence consumer’s perception and attitude about a particular brand or product in comparison to competing brands or products. Haigh’s Chocolate has positioned itself as a trusted and reliable family-owned chocolate manufacturer which has been involved in the business for four generations. Chocolates produced by them are handmade and produced using high-quality raw cocoa beans. The objective of manufactured chocolate confectionaries is to give consumers a delightful chocolate experience (Parry, et al., 2015).

Since in the Indonesian confectionary market, there are a large number of international and local players, there is a stiff competitive environment. And as the trend goes, domestic brands dictate the tastes. Since Indonesians are very price sensitive they prefer cheaper chocolates over premium chocolates. Hence the positioning strategy adopted by the Australian chocolate company has not been very effective in the challenging market of Indonesia (Schommer & Gaither, 2014).

In case of the Haigh’s chocolates, the chocolatier there is no denying that the brand has been widely popular in its home market i.e. Australia. With its plan to enter and expand its presence and operation in the Indonesian market, the brand needs to adapt itself to a more evolved segmentation, targeting, and positioning strategy. The approach that would subsequently be adopted by the company would be a huge determinant of its success in the foreign market playfield (Trefzger, Baccarella & Voigt, 2015).

International Business Sample

Indonesian chocolate market analysis and industry reports

The market opportunities provided by Indonesian chocolate confectionery products have been showing a year-on-year up trend. Currently, the chocolate confectionery industry has been valued to be around USD 1 billion with a growth rate of about 17.9 percent.

Suggested alternative STP approach


To gain popularity and brand recognition, Haigh’s needs to diversify its product line up and move to the medium-range segments of chocolate confectioneries. Alongside offering its premium handmade offerings, it should consider delving into the manufacture of cheaper confectionaries for wider popularity among consumers as the price factors remain a key driver to the sales (Yap & Yazdanifard, 2014).


Currently, the population of Indonesia stands at 249 million with a large chunk of the population below the age of 40. This demographic statistic provides ample room for a more diffused target consumer base for the premium products since the younger target consumer base is more likely to go for occasion-specific premium chocolate confectionery.


One of the key concerns for the foreign chocolate makers operating in Indonesia such as Delfi’s and Nestle is the balancing act when it comes to the local preferences with the global standards of their products.

  • For Haigh’s to be profitable, it must consider reconsidering repositioning and diversifying itself as a brand that not only offers premium products but also cheaper offerings in the confectionaries
  • Launching a separate product line that specializes in cheaper alternatives to premium chocolate for the low and medium segment consumption could provide Haigh’s with an increase in its market share by volume.

MANG6293 Project Management Sample

Justification for the suggested STP approach

Indonesia, despite having suffered several economic and political setbacks in the past, has a stable political environment that allows newer foreign entrants into the market and allows ample flexibility in terms of the various free trade policies in place.

The alternative STP approach that has been suggested in the previous section would ensure that the price sensitivity of Indonesian consumers is taken care of. The overall annual economic growth shown by the region has been pegged at a consistent 5-6% for the last decade or so (Akakam, Vargo & Lusch, 2013).

Moreover, the middle class of the country has been expanding and becoming more affluent every year and thus providing the new chocolate confectionary makers with a larger target consumer base. Line-up a separate nonpremium confectionary product segment can be a plus point for the company as a similar approach adopted by Delfi’s with its SilverQueen chocolate bars has been successful before. The cost factor associated with this move can be neutralized by using the raw materials available locally as opposed to importing the same, since traditionally; Indonesia has been home to cocoa production (Dey, 2013).


In conclusion, it can be said that the drawbacks that were suffered by the existing STP approach have been fixed with the alternate STP strategy devised for the effective placement of Haigh’s chocolate. The cost factor associated with the production of Haigh’s conventional handmade premium chocolates has always been a challenge to grow in foreign markets. Shifting its focus towards a cheaper and more inclusive medium segment alternative may prove to be instrumental in driving up sales in the Indonesian markets.

Corporate Accounting and Reporting


Akaka, M. A., Vargo, S. L., & Lusch, R. F. (2013). The complexity of context: a service ecosystems approach for international marketing. Journal of Marketing Research, 21(4), 1-20.

Brady, D.L., 2014. Essentials of international marketing. Routledge.

Darley, W.K., Luethge, D.J. and Blankson, C., 2013. Culture and international marketing: A sub-Saharan African context. Journal of Global Marketing, 26(4), pp.188-202.

Diamantopoulos, A., Ring, A., Schlegelmilch, B.B. and Doberer, E., 2014. Drivers of export segmentation effectiveness and their impact on export performance. Journal of International Marketing22(1), pp.39-61.

Dey, D.K., 2013. Market segmentation techniques in the health care industry: A review for applicability in India. ZENITH International Journal of Multidisciplinary Research, 3(7), pp.253-258.

Gengler, C.E. and Mulvey, M.S., 2017. Planning pre-launch positioning: Segmentation via willingness-to-pay and means-end brand differentiators. Journal of Brand Management, pp.1-20.

Harr, J.C., Luperchio, T.R., Wong, X., Cohen, E., Wheelan, S.J. and Reddy, K.L., 2015. Directed targeting of chromatin to the nuclear lamina is mediated by chromatin state and A-type lamins. J Cell Biol, 208(1), pp.33-52. 2017. Home page – Haigh’s Chocolates. [Online] Available at: [Accessed 8 Apr. 2017].

Li, X.R., Meng, F., Uysal, M. and Mihalik, B., 2013. Understanding China’s long-haul outbound travel market: An overlapped segmentation approach. Journal of Business Research66(6), pp.786-793.

Parry, B., Greenhough, B., Brown, T. and Dyck, I. eds., 2015. A bull market? Devices of qualification and singularisation in the international marketing of US sperm (pp. 53-72). Farnham: Ashgate.

Schommer, J.C. and Gaither, C.A., 2014. A segmentation analysis for pharmacists’ and patients’ views of pharmacists’ roles. Research in Social and Administrative Pharmacy10(3), pp.508-528.

Trefzger, T., Baccarella, C. and Voigt, K.I., 2015. Antecedents of brand post popularity in Facebook: The influence of images, videos, and text. paper presented at the proceedings of the 15th international marketing trends conference, 1st December.

Yap, S.P.W. and Yazdanifard, R., 2014. Comparison of the impact of standardization and adaptation on international marketing. Journal of Research in Marketing3(1), pp.250-259.

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