GALAXY JEWELS

FROM UAE WITH FLAVOURS TO AUSTRALIA

Strategic Marketing Analysis (Group Assignment)

Marketing Management (MKT5MMA)

La Trobe University

April 2012

Name Student number

Grob Almggrby 16340330

Ayudia P. Siregar 15943411

Jie Yogi Aditya 17302886

M. Ilham Wardhana 17025627

Abdullah Baarmah 15671467

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Executive summary

Galaxy is a renowned brand of milk chocolate marked by Mars Incorporated. In1996 the Brand

has launched in the market and brought name Mars in 1986. There are different types of galaxy

product available in the market such as Galaxy Milk, Galaxy Caramel, Galaxy Bubbles and

Galaxy Bubbles Orange. The Galaxy Jewels characteristically constitutes a chocolate collection

have ten different chocolate diversities. Galaxy Company is absolutely one of the biggest

chocolate industries around the world. Galaxy Company provides their product especially in

United Kingdom, Middle East and Africa but not in Australia. However, it will be beneficial for

Galaxy business to establish to their market following different marketing strategy in Australian

market. According to Chuachi, S. (2010) (the business analysts IBIS World), Australians like to

have chocolate. Australian spends almost $166 million on chocolate and other confectionery in a

year. According to research, people those are in Victoria would like to have chocolate more than

any other Australian. As per their survey report 82% of Victorians have chocolate at least once a

fortnight. That’s why we have chosen Galaxy Jewel product as one of the Galaxy varieties to

launch their in Australian market.

Moreover, it contains a very high quality of chocolate that offer a lot of different flavours which

can suit everyone. The exclusive selling intention of Galaxy is that this company offer several

types of chocolates with attractive flavour and price. In addition, the demonstrating of the

chocolate or the way of packing is so attractive for all customers. Furthermore, the company

objective is to afford better product with superior nutritional value and without compromise on

flavour. Also, they are operating a process to reduce 10% saturated fat in the product which is

certified by Rainforest Alliance, UK.

The marketing goal of Galaxy chocolate is to ensure its availability in everywhere so that people

can buy chocolate when they want. They try to be a focus for women between the ages of 25 and

45; Galaxy appears to be marketing well to the females. This report is commissioned to analyze

the marketing strategies of Galaxy Jewels product to available in Australian Market.

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Table of Contents

Executive summary ...........................…………………………………………………….. 2

Table of Content ............................................................................................................. 3

I. Introduction .................………………………………………………………......... 4

II. PEST Analysis .............................................................................................................. 5

II. 1. Politic .............................................................................................................. 5

II. 2. Economic .............................................................................................................. 5

II. 3. Socio-cultural .............................................................................................................. 6

II. 4. Technology .............................................................................................................. 7

III. SWOT Analysis .............................................................................................................. 8

III.1. Strength .............................................................................................................. 8

III.2. Weakness .............................................................................................................. 8

III.3. Opportunity .............................................................................................................. 8

III.4. Threat .............................................................................................................. 9

IV. Marketing Objectives and Segmentation .................…………………………………….. 9

IV.1 Marketing Objectives ……………………………………………………………… 9

IV.2. Marketing Segmentation ........................................................................................... 10

V. Marketing Strategies

V.1. Product ............................................................................................................. 11

V.2. Price ............................................................................................................. 12

V.3. Place ............................................................................................................. 12

V.4. Promotion ............................................................................................................. 13

V.5. People ............................................................................................................. 14

V.6. Process ............................................................................................................. 14

V.7. Physical Evidence ................................................................................................... 15

VI. Conclusion ............................................................................................................. 15

References ………………………………………………………………............. 16

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I. Introduction

The history of chocolate began in central American rain forests over fifteen hundred years ago in

the Maya civilization (Justin 2011), where the combination of high rain fall and humidity in this

tropical wither, provide the best condition for cultivation of the plant or the cacao tree that

chocolate are derived. The industry of chocolate began in Europe by mixing the drinks with it to

make them very acceptable and pleasant after that the new style to Europe of making the

chocolate were began with ground and mixing the cacao beans with sugar and vanilla, this way

of making chocolate still been used to make huge industry around the world (Justin 2011).

Galaxy is a worldwide brand launched in 1960 and owned by Mars Company that produces

chocolate mixed with milk. Galaxy is very popular in United Kingdom, Middle East and

Australia. The chocolate has a very smooth texture and the company’s slogan also describes the

product when it mentions the smoothness and creaminess. Moreover, it has a very high quality of

chocolate, with lots of different flavours to satisfy all the consumers around the world.

Galaxy has an intelligent marketing strategy which makes it one of the top leading companies in

the world. Galaxy has a policy regarding the name in some countries, for example, it is called

‘Dove’ in Canada, Australia, and France. Hence the consumers in these countries have found the

product appealing and it has led to creation of its huge base of loyal customers. It covers a wide

range of products and flavours like milk chocolate, pure chocolate, caramel, Fruit & nut,

Minstrels and Ripple.

Galaxy Jewels is one of their products which include an assorted collection of chocolates packed

in a gift box, making it very attractive and suitable for purchasing as gifts. Galaxy Jewels has

been widely accepted in America, Middle East and Africa, and it is expected to be successful in

other markets, for example the Australian market, because of there are huge amount of

international consumers consuming the chocolate in their own countries and it will be another

new product that the Australian consumers are looking forward to.

This report will focus on galaxy jewels to be marketed in Australia which has a diversity of

different cultures and nationalities and which make it a strong reason to give careful

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consideration in its promotions to be successful. The reader will find information such as

Marketing Objectives Marketing mix, Product life cycle model, PEST and SWAT analysis.

II. PEST Analysis

II.1. Politic

Australian Government has very strict policies and programs related to export and import. The

implementation of these policies and programs are expected to ensure that Australia's food

industries, especially the chocolate industries remain competitive, profitable and sustainable.

According to the Australian Department of Agriculture, Fisheries and Forestry, the purposes of

these policies are to help producers and food industries in order to develop their skills in business

and marketing, and financially independent (2012). Based on Australian Quarantine and

Inspection Services, Galaxy Jewels does not require an import permit and quarantine permit

(2012). Importer’s responsibility to complete all the requirements of any other regulatory and

advisory bodies prior to and after importation such as the Australian Customs Service,

Department of the Environment, Departments of Agriculture and Health and Environmental

Protection and other authorities.

Australian politic situation are really good at this moment to expanding business. Australia is

now more open to the product from Middle East due to the Muslim Community in this country

increasing. According to Australian Bureau of Statistic, the community increased from 281,590

in 2001, in to 340,392 in 2006 (2006).

II.2. Economic

a. Cocoa Price

According to International Cocoa Organization, cocoa price are falling down at this moment

from $ 3164.86 per tonne in January 2011, into $ 2307.62 per tonne in 2012 (2012). The

imbalance between supply and demand for commodities has led to the decline in cocoa prices

over the years said Market Trade Fair (2002). It’s mean that production cost will be decline and

company can spend the rest of production budget to other departments.

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b. Consume Ability

International Monetary Foundation said that Australia income per capita in 2011 was $AUS

1,507.4 Billion (2011). Based on that, it can be seen that Australian people have high level of

consumption, according to Rate Inflation website, was 179.4 (2012).

II.3. Socio-cultural

a. Population

The number of migrants has been significantly increased in the past few years. In 2010, based on

Australian Bureau of Statistic, 5.2 million people are born overseas (2011). According to the

statistic that provided by ABS (2006), 193.633 people are Middle-Eastern born and nearly half of

them are women. While there are 1.471.000 India-born people and 59.7% of them are female age

20-49.

Meanwhile the numbers of Muslim population also shows a significant increase in Australia. In

2001, there were only 281.578 Muslims in Australia while in 2006, it increased up to 340.392

(Australian Bureau of Statistic, 2001, 2006). 58.6% of them are aged 29 and under (Wise and

Ali, 2008) and half of the Muslim population is women (Abdel-Halim, 2008).

In Australia, most of the Middle Eastern-born population lives in Sydney (58.1%) or Melbourne

(26.0%). Less than 5% reside in each of the other mainland state capitals, with less than 1% in

each territory and Tasmania (Perspectives on Migrants, 2008). Meanwhile, the Muslim

population is mostly concentrated in Melbourne, Sydney, and Brisbane (Wise and Ali, 2008).

Because of it imported from United Arab Emirates (U.A.E.) therefore Galaxy Jewels is

segmented to Muslim Community in Australia, especially in Melbourne. However, this product

can also be consumed by non-Muslim communities. This product can be easily found at area that

the majority its community from Middle East and Indian, such as Preston and Coburg Suburb.

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b. Age Segmentation

As producer of Galaxy Jewels, Mars take a responsibility for marketing their brands

appropriately very seriously. They have a Marketing Code that governs all their promotional

activity and states that they only promote their products to people aged 12 and over as this is the

age at which they believe that people may make informed choices about sensible snack

consumption.

c. Health

Some people believe that eating chocolate might caused health problems. This assumption is not

true. In fact, consuming chocolate which is containing flavanols can protect human skin from

UV radiation (Williams, Tamburic & Lally, 2009). Furthermore, chocolate reduce the risk of

cardiovascular disease (Ding et al, 2006)

d. Environmental

Galaxy Chocolate buys and uses cocoa from Rainforest Alliance Certified farms. The Rainforest

Alliance helps thousands of farmers around the world gain the tools and techniques necessary to

protect the wildlife, the environment, and the rights and welfare of their workers and their

families for now and for future generations. Raynolds, Murray and Heller stated that, “the

Rainforest Alliance initiative’s mission involves protecting people and the environment by

improved farm management across as much of the agricultural sector as possible” (2006, p.5).

II.4. Technology

The new technology such as internet might help the marketing strategy by conducting

advertising with more effective and efficient. Australia had good internet connection and almost

people in here are aware with internet become the reason for the company to do the marketing

strategy by developing Online Selling System where consumers can buy the chocolate directly to

the company. In marketing this process, manufacture to end consumers’ process, is known by a

zero-level channel (Kotler, Keller & Burton, 2009, p.448).

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Furthermore, as the technology is getting advanced there has been introduction of new

machineries. With the new machineries, in the future the company can establish a new factory in

Australia in order to save import fees.

III. SWOT Analysis

III.1. Strength

Brand strength in UK, Middle East and Africa

High quality

Galaxy Jewels does not containing peanuts or tree nuts for consumers who’s concerns

about allergic. Howell, et al states that, “peanut is one of the most common foods

provoking allergic reactions and is the most frequent cause of fatal and near-fatal food-

induced anaphylaxis” (1998, p.1).

III.2. Weakness

Brand awareness of the product in Australian market is relatively low. Generally, consumers in

Australia are not too familiar with Galaxy Jewels. Only a minority of them who know this

product and these people came from Middle East countries, where the chocolate was produced

and manufactured in that region. Moreover, it also competes with other Mars products such as

Snicker, M&Ms, Pods, etc.

III.3. Opportunity

Kraft was the top leader of chocolate market share in Australia with 49.1% (Sivasailam,

2010). It means there is opportunity for Galaxy Jewels to take the rest of the market share

which is 50, 9%.

Mostly women are very concerned about their weight and therefore they keep their food

intake so it won’t cause obesity. They are also known for their habit of snacking on

chocolate. Forslund, et al states that, “higher snacking frequency was found in obese

women” (2005, p.2). Based on those two things, Mars as the producer of Galaxy Jewels may

want to develop a low fat chocolate which is devoted to the women who love to eat

chocolate without fear of getting fat.

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There is a growing interest in dark chocolate. This could be opportunity for the company to

develop Galaxy Jewels which is made from dark chocolate.

III.4. Threat

Galaxy Jewels faces immense competition from its competitor such as Kraft and Nestle who already on

the market (Sivasailam, 2010).

IV. Marketing Objectives

IV.1 Marketing Objectives

Marketing Objectives will be divided into 2 terms, short term and long term.

a. Short Term (1 Year time)

Product will be available in at least 10 local convenience stores in each potential suburb

Increase introduction promotion in the local area through social media and local news

media

Increase market share by 1%

Increase profit margin by 1%

Maintain the good relationship with the retailers

b. Long Term (5 Years time)

Increase numbers of shops by 25%

Introduction to a bigger market, such as 7-Eleven, Star Mart, etc.

Maintain good relationship with the retailers

These objectives will be supported with several stages of strategies in order to achieve them.

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IV. 2. Market Segmentation

Galaxy has been known as the ‘Venus’ in the MARS chocolate varieties. It is targeting women

in their productive age (The Independent, 2010). However, for Galaxy Jewels the target needs to

be slightly specified.

Galaxy Jewels is known as a brand of chocolate made in UAE (Mars, 2010) and also sold in

India (India Import Chocolate Data/Statistic, 2010). Therefore, the specific target will be the

migrants coming from the Middle Eastern area and India who miss the little taste of home.

In 2006, there are 193,633 Middle-Eastern-born people lived in Australia, while India has

contributed 9.8% of migration in Australia. In 2006, 147.1 thousand India-born people lived in

Australia and 59.7% of them are female age 20-49 (ABS 2008).

Furthermore, realising that Galaxy Jewels is manufactured in UAE where Islam is very

dominant, it is also possible to spread the market target to Muslim societies. The reasoning for

this is Islam requires certain conditions in the food preparation and by assuming it is produced in

an Islam dominant country, Muslim population will be interested in the product. Meanwhile,

Australia has been known to have a quite large number of Muslim populations. Based on the data

provided by Australian Bureau of Statistic, in Year 2006, there are 340.4 thousand people

affiliated to Islam and 58.6% of them are aged 29 and under (Wise and Ali, 2008). Furthermore,

half of the Muslim population is women (Abdel-Halim, 2008). As the fourth biggest religious

belief, Muslim population can become an attractive target.

Combining the fact that Galaxy in general is targeting women and other supporting facts

provided above, the profile of attractive segments for Galaxy Jewels will be:

India-born women age 20-40

Middle-Eastern-born women age 25-45

Muslim women age 20-40

In conclusion, it will be women with selected background (India-born, Muslim, or Middle-

eastern-born) age 20-45.

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V. Marketing Strategies

V. 1. Product

The galaxy jewels constitutes of assorted creamy chocolates with different flavours packed with

luxury box which looks like treasure box. Three levels of galaxy jewels can be described as

below:

Core Product :

1. Chocolate to eat as healthy snack.

Actual Product :

1. Assorted chocolates with different flavours.

2. Fancy box packaging which looks like treasure box.

3. Galaxy brand image which infamous of its soft and creamy chocolate texture.

Augmented Product :

1. Comfort feeling while eating such a creamy and soft texture of chocolate.

2. Galaxy jewels design is perfect as gift to relatives.

3. Luxury image from galaxy jewels packaging.

4. Some people believe that eating chocolate can be used as stress-release therapy.

Product life cycle

Galaxy jewels can be a long-term product as long as Mars Company does not discontinue the

product. However, the problems are how Australian market accepts the product itself. Based on

papers4you article (2009), said that the introduction process can take about two or three years

since there are heaps of competitors with better brand awareness. The next cycle is growth which

can be seen by sales profit and how much people aware with the product before hit the maturity

cycle which can be achieved within three or four years and last for four to five years before

declining, losing awareness.

The maturity cycle hopefully can last longer than that depends on how customer value the

product itself, because if the growth process is successful, it will draws more attention and brand

engagement so perhaps the product will last longer in Arabian and Indian people in Australian

market even can expand the distribution line to Australian people as well.

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V.2. Price

The price will be $22 for 200 grams packaging of galaxy jewels, since there are several

competitors with better brand awareness and image such as Ferrero Rocher, Cadbury, and even

another Mars/Galaxy line-up. Based on the UAE retail price for 400gram of galaxy jewels priced

$32 then with the distribution and handling cost it would be proper to put the price tag $22.

V.3. Place

Galaxy jewels will be imported from UAE and distributed in Middle Eastern and Indian

groceries since its origin is from UAE. The product itself has already well-known in India

because there are some importers bring it to India so the penetrating will be start from middle

eastern and Indian groceries to see how the potential customers response with the product.

Moreover, according to Business Case Study, Marketing Mix (2012) it is important to make a

dedicated web store for customer who is willing to be wholesaler or accommodates enquiry

about distribution for certain groceries in order to expand the distribution line .

Web store has quite versatile functions such as bypassed middle men to distribute the product,

shorten the expedition time and cost, connect straighter forward to potential customer and

retailer. Web store also works as promotion media which will be explained in the promotion

section.

The distribution can be done with more sophisticated by putting the galaxy jewels in some

potential coffee shop, café, and bakery store as a penetrating to local people since its packaging

is so tempting for present to relatives.

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V.4. Promotion

a. Social Media Marketing

Galaxy jewels will have its own webstore which is connected to some popular social networking

such as youtube, Facebook, twitter, tumblr, instagr.am, and google+. The majority of the

promotion will be positioned in internet. All of those social media constantly promote about the

galaxy jewels and interact with people through unique way of each social media.

Nowadays, it is the most straight forward way to promote within social media since it is almost

fully sincere media and provides two way communication and interaction between customer and

producer. According to Parise’s statement (2008), being exist in social media will help the

product blending in with the community and perhaps the potential customer.

Based on Bahvya (2010), the social media will also organize some event or games that can boost

the sales, for example, post your picture with galaxy jewels on Facebook and get the most likes

to win iPhone4s, that kind of quiz can gain awareness of galaxy jewels and hopefully the

awareness grows to buying process of the product. However, social media spamming should be

avoided for example do post updates every 3 to 5 minutes will annoy people who connected to

the galaxy jewels product and eventually shape the brand badly.

b. Event Marketing

Based on Lacorgio (2011), there are several ways to communicate and build brand engagement

through event marketing. In addition, galaxy jewels will support and open booth in certain local

markets or Arabian and Indian cultural events. The booth can be designed like Arabian house

homage so the product will delivers a feeling like home. The event marketing itself must be

connected with the social media advertising and announcement to brand engagement with both

potential and frequent customer.

c. Advertisement Marketing

Gaining awareness also can be done by putting advertisements on community newspapers, since

galaxy jewels targeted to Arabian and Indian people so hopefully delivering offering process can

be faster and more effective. Since only one product which is exported then the main goal is to

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create brand awareness on the product itself while the brand can be flow along the product with

the event marketing. According to Roberts (2008), it is better to put advertisement effectively

based on size, colours, and purposes itself.

V.5. People

Since galaxy jewels imported from UAE, according to McGovern and Quelch (2005), it’s better

to do outsourcing and hire professional workers in Australia to fill a representative office which

handles distribution line, media promotion, hotline, enquiry service, database management, web

store maintenance, accountancy. The main reason to do outsourcing is more effective and can

save money. Furthermore, in order to collect such a detailed Arabian and Indian demographic, it

is useful and more efficient to hire some third party firms or buy a statistical data than collecting

by ourselves.

Feedback from customer is very important so develop media relationship and hotline would be

perfect to catch every customer’s response about the products including from the social media

which are the straighter forward than hotline. Moreover about the promotion division can be

done be hiring event organizer which more experience run some event marketing such as sales

booth with certain number of salespersons and supervisors.

V.6. Process

The process how galaxy jewels being accepted to Arabian and Indian market starts with re-ignite

memory about the product back from their country, the next step is customer can understand the

value of not just eating chocolate but feel the creamy texture and the luxury of the packaging

while consuming and have a good time with family and close friends because galaxy jewels

contains 200 gram of chocolate. The value of the packaging itself can be re-useable box to store

accessories or kitchen utensils.

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V.7. Physical Evidence

Galaxy jewels consists of ten chocolate from five varieties which some of them are limited

edition in Saudi Arabia market only. Each of the chocolate wrapped in different colours of foil

that reflects the flavours and made the chocolates so eye-catching. The box itself shaped unique,

it looks like treasure box so it is perfect to give it to relatives for present. The added value of

galaxy jewels is the packaging is very beautiful to suit some occasion.

VI. Conclusion

As a product from a very well-known manufacture, we are optimistic that Galaxy Jewel will be a

very successful product in Australia. Some further researches have been made carefully in order

to find the perfect strategies and segment of Galaxy Jewels in Australia.

Therefore, we believe that bringing Galaxy Jewels all the way from UAE to Australia is a perfect

decision for the company.

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