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Describe the Marketing for Liking and Attitude of the Customers.

Factors influencing buyer behavior in Japan

The market expansion and development are necessary to uplift profitability and revenue in the international market. This report includes the expansion of the Haigh’s chocolates in Japan. Haigh is Australia's oldest family-owned chocolate maker. The company was established in 1915 by Alfred E Haigh in Adelaide, South Australia. The company offers boxed chocolates, loose chocolates, chocolate confectionery, chocolate bars, chocolate novelties, chocolate bars, Haigh’s selections and top 10. Haigh has six stores in South Australia and now thinking to expand operations in. This report includes the buyer behavior and the microenvironment. The report further includes the likely competitors, their offerings and the target market. Finally it comprises the macro environment.

It is essential to explore the buyer’s behaviour in order to expand and sightsee the chocolate products in the Japanese market. It is helpful in making effective decisions in the international market. There are various components which influence the behavior and the income level of the buyers comprehensively (Antoncic, Auer Antoncic & Aaltonen, 2016). The factors which impact on the buying behavior of the customers are given below:

The likings, perception and taste of the Japanese customers can affect the sales and revenue of the Haigh’s chocolates in the nation. The elements significant in evaluating the taste and quality of the chocolates are delivery, service, brand information, advertising and packaging. These elements are equally useful in making purchase decisions worldwide.

The product selection is one of the critical factors which is required to be deliberated in analyzing the buyer’s behaviour. It is observed that the customers finalize the products only after converging and investigating the taste and quality of the chocolates (Zhang, Watson IV, Palmatier & Dant, 2016).

The market trends and the quality of the chocolate can affect the behaviour of the buyers in the market of Japan. The trends in the Japanese market influence the sales and revenues of the Haigh’s chocolates in the market. There are numerous chocolate companies in Japan which are introducing various flavors and sizes in order to attract customers universally (Ashley & Tuten, 2015). Haigh’s is expected to introduce products in the Japanese market so it desired to drive the market where buyers are more price conscious.

The customers believe in purchasing chocolates from the suppliers which are trustworthy and reliable enough to deliver good quality chocolates on time. Haigh is required to assess the choice of suppliers in order to raise profitability in the Japanese market.

Microenvironment of Haigh's chocolates

It has been observed that the customers are likely to purchase more chocolate products on special occasions like birthdays, anniversaries, Christmas and Easter. So, the need and the preferences are recognized by the company in order to conduct business activities in the Japanese market. Add on the income level is also essential to assess and identify to increase sale and market share.

The socio-economic factors have also an important role in influencing the buying behaviour of the customers globally. So, Haigh chocolates is required to concentrate on the socio-economic factors. It is also helpful in competing rivalries in the desired market. It will help to develop a positive image in the mindset of the buyers (Batra & Keller, 2016).

The microenvironment of Haigh's chocolates comprises the following:

The suppliers have a great and vigorous role in expanding and exploring the business globally. The suppliers are the persons who supply intermediary products to the manufacturers. The suppliers offer the raw material, unfinished goods, and resources to produce chocolate products in the Japanese market. The quality of the products, price charged by the suppliers and the supplier-manufacturer relationship defines the price and brand image of the company (Grönroos & Gummerus, 2014). The efficacy and efficiency of the suppliers determine the success and growth of the company in terms of producing chocolate products. The suppliers of the Haigh can be characterized into two parts such as material suppliers and labor suppliers. The labor suppliers handle and accomplish the quantity of labor and reduce the company from the scarcity of labor. On the other side, material suppliers achieve and handle the material required by the Haigh’s chocolates in order to produce finished products for sale in the competitive market (Wedel & Kannan, 2016).

The market intermediaries of Haigh’s help to promote, allocate and sell products to the final customers in the market of Japan. The market division of the company is helpful in promoting and encouraging the chocolate products and represent a communication channel between the consumers and the company. Some other intermediaries like banks support by offering funds to the company. The banks also play important role in the stability of the business in the market (De Mooij, 2015).

The customers and the community have an important role in the growth and the survival of the business in the Japanese market. The local companies in Japan provide the chocolate products to the customers at reasonable prices along with the profit (Erevelles, Fukawa & Swayne, 2016). Haigh's is required to focus on the customers and community to establish the brand image and save margins.

Likely competitors of Haigh's chocolates in Japan

The likely competitors of Haigh’s are Cadbury, Meiji milk chocolate bar, Nestle, Macadamia Chocolates Company, Lindt, Chocoball grande and Ferrero. These chocolates are distributed across many outlets. The rank of the company as compared to the other chocolate brands is eighth. Such competitors impact the progress and success of the Haigh’s in the Japanese market (Hudson, Huang, Roth and Madden, 2016). Meiji milk chocolate bar is one of the recognized chocolate brands in Japan which is successful in attracting and retaining a large number of customers globally. These chocolate bars are branded into grids of twelve- fifteen squares which makes easy to exchange with the friends and other persons. This chocolate company has an impact on the functions and activities of Haigh in the Japanese market. On the other side, Meiji almond chocolates and Macadamia chocolate brand have a strong and dynamic image in the market of Japan. The main target of the Haigh is kids who are between the age group of 7-15 years because the chocolates are liked in the large scope (Grünig & Morschett, 2017).

Most people in Japan prefer to eat Meltykiss chocolates because of its consistency of melting in the mouth and the availability in the different flavors in the local markets. These are cocoa powdered cubes and wafers filled with rum raisin, strawberry, and brandy. The champagne pocky is offered in many flavors like sparkling wine and Glico’s original pocky. Men’s pocky and heartful pocky are enjoyed by everyone having sweet tooth. This chocolate is not presented in several flavors in the Japanese market. It is stated that Kitkat Moleson is one of the major and pragmatic chocolate brands in the Japanese market. People can experience three combinations from these chocolates such as sour, crunchy and sweet in the global market (Webster Jr, 2015). The competitors are aiming to target people kids and people who purchase chocolates on the special events, occasions, and the festivals.

Haigh's chocolates uses Porter's five force analysis to enhance its image in the international market. The porter five force analysis has been discussed as follows:

The entry of the competitors is one of the biggest threat for Haigh’s at the time of entering in the new market. The company has to face many competitors in the market of Japan. The major competitors in the local market are Meltykiss chocolates and Kitkat Moleson which can affect the strategies and policies of Haigh in the global market. Haigh is required to concentrate on the plans and policies of the competitors at the time of introducing chocolate products in the Japanese market.

Porter's Five Forces analysis

The threats of the substitute products recognized are retail and supermarket’s own products which can affect the brand image of the Haigh’s in the Japanese market. The company is required to produce unique chocolates in the rare flavours in order to distinguish the products from the competitors or the local producers (Katsikeas, Morgan, Leonidou & Hult, 2016).

The bargaining power of buyers is high and unique in the hands of buyers internationally. Although the price of the chocolate products is not much high in Japan the increased number of competitors offering the same products can be problematic for the company. This situation can even rescind the financial position and image in the mindset of the consumers. So price is the first thing which should be considered by the company at the time of producing chocolates in the Japanese market.

The bargaining power is high in the hands of the suppliers. There is tough competition in the international market. The raw materials like cocoa, nuts, flour, milk, and others are sufficient to satisfy the necessities and requirements of the business as well as customers (Voorhees, Brady, Calantone & Ramirez, 2016). Other than the stated factors, economies of scale, raw material, and other resources are purchased to manufacture chocolate products globally.

There are vast competitors in the Japanese market who are producing the same products as Haigh’s. These competitors can affect the profitability as well as the success of the Haigh's chocolates unfavorably. Haigh is required to advance a new range of products in the Japanese market to gain competitive benefits.

The macro environmental factors have a role in the survival and growth of the company. The macro environment factors are not controllable by the company in an efficient manner. Haigh should make unique and innovative strategies to assess international factors globally (Kozlenkova, Samaha & Palmatier, 2014). The Pestle analysis is one of the substantial tools to be used by the Haigh and it is discussed below:

The demand of the chocolate products has increased in Japan. The political factors influence the consumption of fast food such as varying parameter food activities and food standards. The political factors comprise the labor laws, tax policy, environmental law, political stability, and trade restrictions. The government of Japan is stable and strong and it has an impact on the chocolate products in the nation (Kumar, 2015). The political factors also comprise the products and services which are offered by the government as an assistance of promoting business in the country. The chocolate companies generate great revenue in Japan and are able to satisfy the expectation of the customers.

Macro environmental factors affecting Haigh's chocolates in Japan

The economic factors comprise interest rates, economic growth, exchange rates, and inflation rates. It brings in notice that Japan is the third largest economy in the world with a total GDP of $4.9 trillion in 2017. It has an impact on the chocolate makers in Japan. When Haigh's expand business in Japan then it is required to pay tax on the income generated in the country. The interest rates also affect the cost of capital of the company and to what extent a company can grow and explore globally (Schuetz & Schrefl, 2017). The exchange rate also influences the supply and the prices of the chocolate products in the local market. The budget of the customers keeps on fluctuating which can affect the growth and revenue of the Haigh. On the other side, increasing prices of the raw material goods and products in a link to the demands and needs of the source have an economic influence on the dealers. Haigh is required to focus on the economic factors in order to offer chocolate products to Japanese customers at suitable prices (Lamberton & Stephen, 2016).

The socio-cultural factors comprise the cultural elements such as age, growth rate, career aspects and the population of Japan. The cultural factors and the trends which can be assumed from the trend gluten-free food and dairy products. The Japanese public gives more preference to such chocolate products. The chocolate products injurious to the public should be prohibited like food containing more sugar and fat. There is also pressure in the country to reduce and eliminate such food products from the grocery stores (Pan Chen & Zhan, 2018). There is a trend of packed foods and chocolate boxes in Japan which is helpful in maintaining communal culture. Haigh is required to focus on the socio-cultural factors so that it can struggle with the rivalries globally.

Japan is one of the advanced countries in terms of technology. The Japanese are more efficient in learning and adopting innovative technologies. The country is pushing technology in an effective way in order to compete with other countries. Japan's innovations can be explored in a variety of fields. The country is even ahead of many other advanced countries in the case of technology (Pike & Page, 2014). Haigh's is required to use innovative technologies in order to conduct business activities in Japan. It can make use of e-commerce platform to make expansion internationally. It can also make use of bio-degradable wrappers in its expansion and the development process.

The natural trends have a significant impact on the prices and the specialization of the chocolate products. The natural trends like nutrition bars, premium, and the flavors run the food industry in the international market.

The demographic factors put a direct impact on the food and chocolate consumption in Japan. The demographic factors such as income level, choice, attitude, demand and the preference of the customers put impact on the profit margin and the growth rate of the Haigh's in Japan (Pihkola, et. al. 2017).


From the above report, it can be concluded that Haigh's chocolates can easily survive and grow in the Japanese market. The company is capable of identifying the risks and challenges possible in the market. Haigh’s is exploring the trends in the Japanese market to stand out against the competitors. The buyer behavior is one of the substantial features which helps in maximizing the sale of the chocolate products in Japan. The micro and the macro environmental factors have been assessed by the Haigh's to enter the market of Japan. Finally, it has been concluded that the company is required to differentiate its products by making use of innovative technologies.


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