I need to preparing project documentation. Preparemy market research plan for execution. Use the standard Project plan forms and generatedetailed project plan for market research.

the project plan need to includes the following:

Project initiation and scope documents, including:

a project scope;

project objectives in relation to organisational objectives

a stakeholder analysis;

a communication plan;

team members, roles and responsibilities;

work breakdown structure and deliverable;

a project timeline

a risk management plan (risk register and risk assessment for each of four risks)

a budget to cover internal staff and any external research providers

quality assurance

record keeping

reporting

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Case study

Business Scenario

Choco Lux

Marketing plan

CHOCO LUX

MARKETING PLAN

'Sweet side of life"

11 Palm Parade

Melbourne VIC 3001, Australia

Contact: Jane Miller

1. Executive Summary

1.1 Business description

Founded in 2010, Choco Lux is a relatively new brand among gourmet chocolate manufacturers in the industry. We believe that is our advantage, as we have brought not only quality to the market, but also creativity and innovation.

Our team of master chocolatiers has been selected from prestigious confectionary schools boasting centuries of chocolate expertise from France, Switzerland, Belgium and Italy. Whilst we value the traditions of these schools, we place an even higher value on their passion for innovation and enterprise.

Choco Lux is the first company in Australia to process more than 10 different types of cacao from several countries, selecting only the finest cacao beans available. With chocolate factories in the Yarra Valley wine region of Victoria we currently manufacture and distribute exclusive handmade, partly handmade and machine-made chocolate products.

2. Situation Analysis

2.1Market analysis

The profile for Choco Lux customers consists of the following geographic, demographic and behavioural factors.

Primary target market

Demographics:

60% female

approximately 50% are married

aged 25-55

young and middle-aged professionals who work or live in inner city or suburban areas

Baby boomers, generation X and generation Y

Have attended university/TAFE and secondary school.

average household income of $150,000.

Lifestyle:

prefer gourmet chocolate, in particular, premium European-style dark chocolate

search for high-quality products

generally have busy lifestyles, and enjoy treating themselves to 'a bit of luxury'

prepared to pay for best quality

success and career driven

often purchases European chocolates from specialty food stores

they respond to advertising messages that centre around indulgence, are clever and well produced.

Geographics:

they live and work in inner city or suburban areas of Melbourne,Sydney, Brisbane, Adelaide and Perth

70% of this target audience lives or works within 15km of an outlet selling Choco Lux products.

Product usage levels:

the majority of this target audience purchase dark chocolate products at least twice a week

usually buying for personal consumption, gifts, dinner parties, etc.

30% have previously purchased products from the Dolce Vita range or other Choco Lux products.

2.1.2 Market needs

Choco Lux is providing its customers with a wide selection of merchandise in the chosen field. Choco Lux seeks to fulfill the following benefits that are important to our customers.

Quality - highest quality Australian chocolate available, using locally sourced sugar, fruit, nuts and dairy products and imported cacao.

Competitive pricing - because products are locally made they are competitively priced, relative to comparable high-end European confectionery.

Product choice - the Dolce Vita product range includes organic, dairy-free, and low G.I. products.

Social responsibility - Choco Lux make fair trade and sustainable practices a key part of their marketing message.

2.1.3 Market trends

The market trend for gourmet chocolates is heading towards a more sophisticated and informed customer in regard to:

High quality - preference for high-quality products is increasing, as customers are learning to appreciate qualitative differences.

Product choice - there is greater interest in products tailored to specific dietary requirements and customer preferences (dairy-free, low G.I., organic, etc.).

Choco Lux will capitalise on the health benefits of dark chocolate and offer the largest range of dark chocolate varieties and products.

2.1.4 Market growth

The chocolate market in Australia is currently estimated at $6 billion in annual sales with a projected growth rate of 0,7% per annum. According to IBIS industry report, the consumer needs are shifting towards premium goods and niche firms, which works in Choco Lux favor. This growth can be attributed to several factors, including:

greater disposable household income

increased marketing and awareness of the health benefits of dark chocolate.

2.1.5 Economy

Based on economic forecasts, Choco Lux assumes that interest rates will remain steady and therefore have no effect on disposable income. The same assumption is made about employment levels, where Choco Lux assumes that unemployment levels will remain the same at 5.5%.

2.1.6 Political

From the research carried out, Choco Lux has identified that the Government focus and emphasis in future legislative direction will be on 'growing the economy' and 'population base', which Choco Lux sees as a positive for their business model. Choco Lux, as a business operating in Australia, will abide by the law in all its dealings and comply with all legislation impacting on its business activities.

2.2 SWOT analysis

Strengths:

Australian made and owned

high quality ingredients

extensive product range

competitive prices

innovation and creativity

talented personnel

socially responsible

economic manufacturing technology

relatively large number of Choco Lux stores. Opportunities:

the gourmet chocolate sector is a growing industry in Australia

our major competitors is not Australian owned

a flexible and assertive attitude towards radio and television should ensure continued business

we will reach consumers who aren't exposed heavily to print media or radio by using digital advertising.

Weaknesses:

smaller marketing budget compared to international brands

young company - not as strong brand awareness as other older brands

products sold in less sales outlets than the two main competitors Threats:

economic downturn

our competitors' more aggressive advertising campaigns and marketing strategies

radio and television advertising campaigns are increasingly scrutinised by an media savvy public

some consumers prefer digital media to printed media

changes in government regulations or certification for foodstuffs

changes in import regulations in food industry.

Competitor analysis

Competitive position Strength < -------------------------------------------------- > Weakness

General

Customer base

Facilities

Reputation

Location

Accessibility

Client proximity

Parking

Visibility/signs

Product mix

Selection

Price/quality

Benefits

Appearance

Interior

Exterior

Marketing

Communications

Coverage

Consistency

Service

Operating hours

Speed and quality

Friendliness

Choco Lux has a strong competitive position with relatively few weaknesses. We will focus on improving our marketing efforts. We have a smaller marketing budget compared to international brands competing in the same market. Until now our advertising campaigns have only focused on the two major cities and have occurred rather infrequently.

Competitor comparison Choco Lux Green & Black's Lindt

General

Customer base

Facilities

Reputation

Product mix

Selection

Price/quality

Benefits

Appearance

Interior

Exterior

Marketing

Overall quality

Consistency

Materials

Presentation

Location

Accessibility

Parking

Proximity to customers

Visibility/signs

Service

Operating hours

Speed and quality

Friendliness

1.

Very competitive

Mildly competitive

Uncompetitive

Green & Black's is now owned by Cadburys, this will help Green & Black's maintain growth and take Green & Black's further as an international organic chocolate brand. The company produces premium quality chocolate and has a socially responsible brand image. Their marketing strategy promotes their ethical, fair trade and organic principles. Up to now Green & Black's have been marketed more effectively than Choco Lux. These factors pose significant threats to our business. However Green & Black's is currently sold only in certain supermarkets and department stores. Green & Black's do not have their own sales outlets at this moment in time. In order to compete with Green & Black's, we need to run a successful advertising campaign which engages our target audience and informs them of the Dolce Vita product benefits which are equal to, or surpass, Green & Black's products. We must heavily promote the fact that we are Australian owned, as this is the main advantage we have over Green & Black's. We also have a more extensive range of dark chocolate. Green & Black's currently has 10% market share of the Australian Gourmet chocolate market.

Lindt is currently the market leader in the Australian market for premium quality chocolate, offering a large selection of products. It has a very strong reputation as one of the most innovative and creative companies making premium chocolate. Another threat to Choco Lux is Lindt's huge international advertising budget. We cannot currently compete with their marketing expenditure. The Lindt chocolate cafs are more extravagant and notable than our stores, and Lindt products are sold in more supermarkets and department stores that Choco Lux. Lindt currently has 30% market share of the Australian Gourmet chocolate market.

In order to compete with Lindt, we need to heavily promote the following selling points:

The Dolce Vita product range includes organic, dairy-free, and low G.I. products (Lindt does not currently market any of their products using these selling points).

Choco Lux must heavily promote the fact that we are Australian owned as this is the main advantage we have over Green & Black's.

Choco Lux' prices are generally lower than those of Lindt products.

Choco Lux must also make their fair trade and sustainable practices a key part of their marketing message.

We use a certified organic supplier for our organic product named Dark Green.

Other competitors in the fair trade chocolate market include:

Alter Eco

Cocolo

Oxfam Haigh's

Koko Black.

These competitors do not currently pose a major threat to Choco Lux. There are other gourmet chocolate manufacturers in the market but due to their marketing strategies and product ranges they do not pose a serious threat to our business.

Market shares

Company Market share

Lindt 30%

Green&Black's10%

Choco Lux 5%

Others 55%

2.4 Legislation and regulation

The following legislation, regulations or codes of practice directly affect the 'Sweet side of life' campaign:

Competition & Consumer Act 2010 (cwlth)

Australia New Zealand Food Standards Code (cwlth)

The Code of Practice on Nutrient Claims in Food Labels and in Advertisements 1995 (cwlth)

Australian Association of National Advertisers (AANA) Food and Beverages Advertising and Marketing Communications Code

Internet Advertising Networks of Australia (IANA) Code of Conduct.

Broadcasting Services Act 1992 (cwlth).

Choco Lux' 'Sweet side of life" advertising campaign will be compliant with the above legislation and Codes of practice in the following ways:

Choco Lux will not engage in conduct that is misleading or deceptive or is likely to mislead or deceive.

Choco Lux will not make any false health claims regarding food content or the ingredients in its products.

Choco Lux will ensure that the label on the packaging of all the products referred to in its advertisement applies include a nutrition information panel.

Choco Lux will use all reasonable endeavours not to include on the its website or campaign microsite those types of content forbidden by the IANA Code of Conduct.

Choco Lux will not knowingly violate any applicable laws or regulations with regards to its website or advertising campaign microsite.

Choco Lux will respect the licence conditions stipulated by the Broadcasting Services Act regarding the number, type content of ads in C periods, bans advertising in P periods, and C and P programs.

3. Marketing strategy

Choco Lux's marketing strategy will seek to create customer awareness of the Dolce Vita product line, and then work towards building customer loyalty and referrals.

The message that Choco Lux will seek to communicate is that Choco Lux offers the highest quality Australian chocolate available and the largest range of dark chocolate varieties in the country. This message will be communicated through a variety of tactics, including a video advertisement which will be shown on TV and the internet, an interactive microsite, a competition, an email campaign, social media, radio and print advertising, all of which will feature our catchy slogan 'Sweet side of life".

The yearly marketing budget is AUD$ 350.000.

3.1 Mission

Choco Lux is committed to becoming the leader in the Australian market for premium quality chocolate and maintaining a company culture which fosters and encourages continuous improvement. Our mission is to provide Australian consumers with the highest quality chocolate on the market whilst maintaining the promise to trade fairly with both local and overseas suppliers, promoting sustainable behaviour and reducing our ecological footprint.

3.2 Marketing objectives

1. To increase profit by 5% yearly over the next three years.

2. To become the gourmet chocolate market leader within five years.

3. To become established as the national retailer of choice for chocolate connoisseurs within the next three years.

4. To increase our share of the dark chocolate market by 3% over the next five years.

5. Establish Choco Lux as Australia's most respected chocolate maker.

3.3 Organisational objectives

A 10% revenue growth rate for each future year.

Continue to increase our gross profit margins.

Continue to decrease the variable costs associated with chocolate production.

3.4 Target marketing

The primary market will be inner city and suburban areas throughout Australia in order to capitalise on the shopping centres and local hubs of major Australian cities (Brisbane, Melbourne, Perth, Sydney and Adelaide).

The market can be segmented into three target populations:

Individuals: people that order for themselves and partake on site.

Take out: people that prefer to eat Chocolate at their desk or at a different location than the actual Chocolaterie.

Businesses:Catering for events occurring at regular intervals and for particular special events.

Choco Lux customers are mostly aged between 25 and 55, predominantly female, and mostly young and middle-aged professionals. Combining several key demographic factors, Choco Lux arrives at a profile of the primary customer as follows:

Sophisticated people who are prepared to pay for best quality.

Prefer gourmet chocolate.

Success and career driven.

Generally have busy lifestyles, and enjoy treating themselves to 'a bit of luxury'.

3.5 Positioning

We have positioned ourselves in the market as an up-market provider of gourmet chocolates and chocolate products - we provide chocolates of European quality. Choco Lux is a contemporary, innovative and customer-focused company that provides enormous variety and choice, especially in healthy and eco-friendly alternatives. Australian chocolate connoisseurs recognise the unique value of Choco Lux.

Choco Lux' positioning takes advantage of these strengths and pivots around two central priorities:

Product: Choco Lux provides some of the highest quality chocolates available on the Australian marketplace. Choco Lux is the only company in Australia which processes more than ten different types of cacao from several countries and works solely with fine cacao. We use locally sourced sugar, fruit, nuts and dairy products. Choco Lux offers the largest range of dark chocolate varieties and products available and tailor our product to customers with specific dietary requirements (dairy-free, low G.I., organic, etc.). We are the only company able to satisfy all of these under-met needs in the national marketplace.

Service: Choco Lux only employs staff who are experienced in matching customers' needs with our superior product. Our staff always ensures that our customers have the most enjoyable chocolate experience possible every time they enter one of our stores.

3.6 Strategy pyramids

Our principle objective is to position Choco Lux as the leader in the Australian market for premium quality chocolate, increasing our share in the dark chocolate market by 15% over the next three years. The marketing strategy will aim first at creating customer awareness for the Dolce Vita product line, and then develop that customer base and work towards building a loyal customer base and referrals.

Choco Lux will seek to communicate the message that we offer the highest quality chocolate available and the largest range of dark chocolate varieties in the country. This message will be communicated through a variety of methods:

The catchy slogan 'Sweet side of life" will be used in all of the advertisements for the Dolce Vita product line.

Advertisements will be placed in newspapers and women's interest magazines. Online advertising will include advertisements on these magazine's websites.

TV advertisements will be broadcast on TV Channels 7, 9 and 10.

Online advertising through Google's AdSense and AdWords will optimise search results and create online presence.

In-store promotions offering free samples and tasting sessions.

3.7 Marketing mix

Choco Lux'smarketing mix has the following approach to pricing, distribution, advertising and promotion, and customer service.

Pricing: the product cost is approximately 40% of the total retail price.

Distribution: Choco Lux chocolate products are distributed through a chain of retail stores which customers can access easily.

Advertising and promotion: Targeted advertising on TV, radio, the internet and in the press will form the foundation of Choco Lux' advertising and promotion effort.

Customer service: Choco Lux' philosophy is that every customer's experience in a Choco Lux store must be as special and rewarding as our chocolate.

3.8 Product development

Choco Lux is the first company in Australia to process more than ten different types of cacao from several countries and work solely with fine cacao. The Dolce Vita range has recently been expanded, and now gives dark chocolate connoisseurs the choice of 70%, 80% or even 90% cacao content. This allows dairy intolerant customers, vegans, organic eaters and those on strict, low G.I. diets to partake in the delightful indulgence they may have previously thought was off-limits.

3.9 Marketing research

During the initial phases of the marketing plan development, several focus groups were held to gain insight into the various ways that patrons consume chocolate. These focus groups provided useful insight into the decisions, and decision making processes of consumers. An additional source of market research that is dynamic is a feedback mechanism based on a suggestion card system.

The final source of market research is competitive analysis/appreciation. Choco Lux will continually patronise local chocolatiers and competitors. This will be done for two reasons; the first is for competitive analysis, providing Choco Lux with timely information regarding other cafe's service offering. The second reason is that local business owners, particularly cafe owners, are often part of an informal fraternal organisation where they support each other's business.

Access to ongoing market research will be achieved via the publications from the Chocolate Association which Choco Lux has recently become a member of.

4. Financials and budgets

This section will offer a financial overview of Choco Lux, as it relates to the marketing activities. Choco Lux will address sales figures, marketing budget and expenses and how each links to the marketing strategy.

4.1 Sales figures

Below are the results of sales revenue and gross profit for the past three years:

2015 2016 2017

Total sales 8,200,000 10,400,000 12,200,000

Gross profit 3,850,000 4,850,000 5,550,000

In 2017 the average order value was $4. The number of customers was 785.235 and they made in total 3.050.000 sales.

4.2 Sales forecast

Continued growth is planned for the next three years of the organisation.

Ongoing sales forecasting will be conducted by Action Marketing, who will advise on all aspects of the marketing function that Choco Lux will be engaged with. Action Marketing will also be given access to the marketing cost data so that they can periodically examine and validate marketing costs in line with industry benchmarks.

Sales forecast for 2018

2018

Total sales 15,550,000

Gross profit 6,300,000

4.3 Market expenses

Brand awareness is vital to the success of the organisation. Marketing expenses for the past three years are as follows:

Marketing expenses

Expenses 2015 2016 2017

Direct mail 70,000 77,000 84,700

TV advertising 120,000 165,000 181,500

Radio promotions 30,000 26,000 32,600

Print ads 60,000 60,000 60,000

Digital (Google Ads) 1,500 12,000 24,000

Digital (Social media) 300 2,500 4,500

Total 290,000 338,000 358,800

Below are the results of the response rates for each marketing activity for the past three years:

Response rate 2015 2016 2017

Direct mail 5.7% 4,6% 4,7%

TV advertising 3,2% 2,9% 3,1%

Print ads 2.6% 2.9% 2.4%

Radio promotions 2,5% 4,2% 3,2%

Digital (PPC) 6,3% 8,1% 8,5%

Digital (social media) 3,2% 3.5% 5,7%

Profitability outcomes 2017

Profitability Average price Quantity Gross profit

Handmade Chocolate $5 1,500,000 30%

Partly handmade $4 70,0000 40%

Machine-made chocolate $3 258,000 50%

Chocolate truffles $4 105,000 20%

Belgian pralines $5 110,000 15%

Gourmet chocolate $6 270,500 12%

Hot Chocolate $4 88,500 62%

Coffee $4 18,000 88%

5. Controls

The purpose of the Choco Lux marketing plan is to serve as a guide for the organisation.

5.1 Marketing organisation

Choco Lux's Marketing Manager is primarily responsible for marketing activities, and has the authority and responsibility over all company activities that affect customer satisfaction. This is in addition to his other responsibilities.

5.3 Contingency planning

Difficulties and risks:

Overly aggressive and debilitating actions by competitors.

Changes in government regulations or certification for foodstuffs.

Worst case risks may include:

Determining that the business cannot support itself on an ongoing basis.

Having to liquidate equipment or intellectual property to cover liabilities.

6. ROI analysis

Regression Analysis

Predictor:

Outcome:

N = Digital marketing ($ spent per campaign)

Profit ($ earned per campaign)

80 (80 campaigns)

R = 0.72 F(1,78) = 84.50 p < 0.001

Coefficients:

Intercept = B =7468.86

Digital = B =1.12 t(78) =9.19 p < 0.001

Note: The p-values are shown with three decimal places because they are so small.

Regression Analysis

Predictor:

Outcome:

N = Broadcast marketing ($ spent per campaign)

Profit ($ earned per campaign)

80 (80 campaigns)

R = 0.67 F(1,78) = 62.77 p < 0.001

Coefficients:

Intercept: B = 55842.73

Broadcast: B =0.71 t(78) =7.92 p < 0.001

Note: The p-values are shown with three decimal places because they are so small.