156.

338 – International Marketing Assignment 2

Prepared for Henry Chung

Group 14
Billie-Jo Jones - 05118035
Kaelani Pittman - 16350176
Mark Pellowe - 14111603

Word Count: 2184

156.338 – International Marketing, A2. Group 14. Page: 0

Executive Summary:
This report is an international marketing strategy for J. H. Whittaker’s and Sons planned
expansion to the United Kingdom (UK) with their New Zealand Destination’s Artisan Range.
The elements of the marketing mix; product, price, distribution, and promotion are discussed
with recommendations offered as to the best strategies for Whittaker’s to gain success in the
UK market. Whittaker’s is famous in New Zealand and other parts of the world as a high-
quality product. This is achieved through the meticulous controls and processes in place at
Whittaker’s.

By utilising the 100% Pure New Zealand branding as a packaging guide Whittakers should be
able to position the Artisan range as a luxury item. Pricing will also enable Whittaker’s to
position the product as a luxury item with a recommended price point of £2.50 per block to
account for the changeability in currency exchange and the additional exporting costs to the
UK.

Whittaker’s has already established long-lasting, effective distribution partners through their
other global expansions. By utilising these partners, the organisation should be able to gain
access to the UK market. A partnership with a group such as Harrod’s is recommended to
maintain the distribution channels, and position as a luxury product.

When entering into a new market, an organisation can struggle to create momentum.
Fortunately, Whittaker’s have an already established advertising campaign featuring the
UK’s ‘domestic goddess’ Nigella Lawson. As Nigella is well known in the UK, this will help
with brand awareness so the advertising campaign should remain the same for expansion to
the UK. By pairing this promotional strategy with the use of social media influencers, we are
confident the product can be successful in the UK.

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Contents
Executive Summary: .................................................................................................................. 1
Introduction ................................................................................................................................ 3
Overview of Company ........................................................................................................... 3
Overview of the Product ........................................................................................................ 3
Overview of the Host Market ................................................................................................. 3
Product ....................................................................................................................................... 4
Placement/Distribution .............................................................................................................. 4
Price ........................................................................................................................................... 6
Promotion................................................................................................................................... 7
Conclusion ................................................................................................................................. 8
References ................................................................................................................................ 10
Appendix A .............................................................................................................................. 13

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Introduction
The purpose of this report is to produce a marketing plan for J.H. Whitaker’s & Sons
Limited planned expansion of the Artisan range to the UK. This plan will focus on the
marketing mix of product, price, distribution and promotion of the product in an overseas
market, furthermore this plan will provide marketing strategies that best fits the product
and foreign market.
Overview of Company
Whittaker’s began in Christchurch in 1896 by James Henry Whittaker (Scott, 2015).
In 1911, the business moved to Porirua in Wellington where his sons Ronald and James
joined and created J.H Whittaker and Sons. (Whittakers, n.d).
Whittaker’s pride themselves on making quality chocolate from scratch without
compromising on quality; using the best ingredients and controlling the process from
bean to bar. This sets them apart from the competition (Whitakers, n.d). Whittaker’s is a
well-established, sizable company that has a lot of flexibility allowing them to bring new
products to the market quickly, gaining a competitive advantage (Scott, 2015).
Whittaker’s have over 50 products that include limited edition ranges and bars for all
occasions (Whittakers, n.d).
For the past 8 years (2012-2019), Whittaker’s have been voted by New Zealanders as the
most trusted brand, beating other iconic New Zealand brands (Trusted Brands New
Zealand, 2019).
Currently Whittakers chocolates are exported to Australia, Canada, parts of Asia, the
Middle East, Kenya and many of the Pacific Islands. (Whitakers, n.d).
Overview of the Product
Whittaker's Artesian range contains nine 100g blocks of chocolate targeting chocolate
lovers seeking a bit of luxury. The bars are named after New Zealand destinations,
showcasing the locally sourced, high-quality ingredients New Zealand is known for
(Whittaker’s, n.d). This also reflects Whittaker’s commitment to sustainability and
producing chocolate of the highest quality (Scoop Business, 2015).
Overview of the Host Market
The UK is one of the main chocolate consumers in Europe, consuming 7.5kg of chocolate
per capita, and spending around $300 per person per year on chocolate. (Exporting Cocoa
to the United Kingdom, 2014).

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UK consumers seek more quality and authenticity and are willing to pay more for a higher
quality, specialty chocolate. As consumers become more educated on chocolate the demand
for artisanal, high-quality, premium, and fair-trade chocolates increases (Coriolis, 2018).

Product
Whittaker's is a well-known New Zealand chocolate brand, famous for their quality
and attention to detail throughout their production process (Whittakers, n.d). This
reputation must be upheld and presented to the UK market. It is important to consider this
throughout all the elements of the product, from the core product right through to the
augmented product.
The core benefit of Whittaker's chocolate is the quality. Whittaker's never compromise on
quality and it is represented in their final product and appreciated by consumers
internationally (Whittakers, n.d). Consumers realise this upon consumption of the
product, to get to this stage we must first appeal to consumers through the tangible
product and packaging is the key. The range we propose to be exported is the Artisan
New Zealand Destinations range. This range is produced with ingredients sourced from
New Zealand's finest artisan producers (Whittakers, n.d). New Zealand made products are
highly sort after and have a reputation of high quality because of the natural ingredients
used (Coriolis, 2018). This is a desirable attribute that will create competitive advantage
in the UK market. Keeping this in mind, we suggest that the packaging represents the
pure ingredients used and perhaps advertises the 100% Pure New Zealand campaign. This
100% Pure campaign is associated with positive characteristics that appeals to consumers
throughout the UK (Coriolis, 2018).
The next element of the product is positioning. We aim to position the product at the
premium end of the mass market. Through the packaging strategy and through other
strategies discussed further, we hope to achieve this.
Finally, the installation or the augmented product. The products are unique so an after-
sales service could be launched via the internet for UK consumers where they can learn
more about the products and the Whittaker's brand. The website could also be a way to
familiarise consumers with the brand so if the expansion into the market was to happen it
has more chance of success.

Placement/Distribution

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Organisations the world over are becoming more globalized through trade agreements
offering free, easier international trade. It is said we are now a global market with
marketers able to target products to different cultures around the world (Wang, Lamb,
1983). With all marketing, distribution channels are key.
The globalised approach to an international marketing strategy does not fit the needs of
Whittaker’s. In a globalized strategy, marketers treat all markets the same under the
understanding that all humans are the same. This theory also applies to distribution
channels (Rosenbloom, & Larsen, 1991). However, an individual approach tailored
specifically for Whittaker’s expansion into the UK will be necessary. It is said the use of
distribution channels already in place can assist an organisation to create new networks in
other markets (Caviello, & Monro, 1994). As Whittaker’s already have a network to
distribute products throughout Asia and Australia, there are opportunities to use these
channels to distribute through to the UK.
With all distribution strategies, there must be a market entry strategy. Entering into a
foreign market always contains risks that must be assessed before entry (Chetty, Ojala,
Leppaaho, 2015). However, there are options available to minimize those risks. There are
various entry strategies available, from agents to full overseas production. Using agents is
the most cost-effective strategy (Johanson, & Vahlne, 1977). The organisation stands to
lose very little financially should the product not be highly received in the new market.
There is however, a small risk to the brands reputation should that representative act in a
manner that does represent the values of the organisation (Johanson, & Vahne, 1977).
By creating partnerships in foreign markets, the local organisation stands to gain insight
and knowledge of the new market (Ahi, Baronchelli, Kuivalainen, & Piantoni, 2017).
Through an effective and interested distribution partner, there are opportunities for both
parties to gain influence, brand power and greater profits (Tuling, 2017). The partnership
means there is greater flow of information creating less logistical issues, regular stock
supply and greater customer satisfaction (Tulung, 2017). These two options are
recommended by scholars using an incremental process that has proven to be successful
for smaller organisations seeking to expand internationally (Ahi, et al, 2017). Whittakers
have been successful at creating effective partnerships elsewhere and this should be
recreated in the UK with an organisation such as Harrods, known for luxury items and
products.

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Should either of these options exceed expectations the organisation could look to further
expand through manufacturing or establishing a retail presence.

Price
To market a product such as chocolate in a foreign market, New Zealand chocolatiers
must retain the image of high quality and capitalize on the pure New Zealand image
(Coriolis, 2018). Through this, New Zealand chocolate should be marketed as higher
quality and to be slightly unique in design in order to succeed in foreign markets
(Coriolis, 2018). Whittakers already have the unique chocolate flavours in the artisan
range that are primed to enter the UK market as premium chocolates.
Price is considered to be a signal of product quality (Dawar, & Parker, 1994). It is widely
understood that the pricing of an item indicates higher quality, and that consumers
seeking a higher quality product will generally seek out the more expensive product
(Thaichon, Jebarajakirthy, Tatuu, & Gajbhiyeb, 2018). However, the studies of
economics suggest that the higher the price the lower number of individual sales, as is the
theory of supply and demand (Thaichon, et al, 2018). This makes creating a price point
delicate for organisations entering a foreign market like the UK.
Pricing is allocated to cover the cost of production with a small percentage allocated for
profits the pricing graph in Appendix A shows the whereabouts of profit margin of
chocolate production in New Zealand. The graph fails to consider the costs associated
with exports in their transportation costs. This must be considered when allocating a price
for the UK market.
The artisan chocolate range is already priced slightly higher than the general chocolate
being $4.20 for 100g compared to $5.30 for the standard 250g of chocolate at Countdown
supermarket in New Zealand. Current conversion puts this at £2.14 for $4.20NZD.
Currency exchange rates will have an impact on future sales revenue and should be
accounted for. Current data suggests the average exchange between New Zealand Dollar
and British pound at .51c over the last five years with a peak of .56c (OFX, 2019). With
this in mind we recommend a price of £2.50 per block to cover exchange rates
changeability and extra transportation costs through exporting.
With the current situation facing the UK with Brexit, New Zealand is seeking to gain a
new trade agreement that will reduce or eliminate any trading tariffs or taxes already in
place. New Zealand Trade and Enterprise believe now is a good time for New Zealand

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operations to investigate the UK markets as possible exporting destinations (New Zealand
Trade and Enterprise, 2018).

Promotion
Whittaker's takes pride in the quality of their products and highlights this through their
marketing campaigns (Stop Press Team, 2017). The bean-to-bar campaign demonstrates
this pride by focussing on Whittaker's control of the entire production of the product,
ensuring it is of the highest standard (Whittaker's, 2019). To ensure Whittaker's can
position themselves at the premium end of the market, we suggest they implement a pull
strategy. The strategy suggests including advertisements like the Nigella Lawson
campaign across most media outlets to gain more exposure to new consumers. The
second part of the strategy is through social media marketing utilizing the power of
influencers.
Celebrity endorsement has proven to be beneficial to firms because consumers tend to
perceive products associated with celebrities to be more credible and reliable (Ladipo,
Oniku, Akeke & Chlieuwa, 2018). The Nigella Lawson campaign has been hugely
successful in NZ and overseas therefore, we recommend using this campaign when
entering the UK market. Nigella Lawson is a suitable celebrity because of her English
heritage and her existing reputation in the UK as a 'domestic goddess'. We recommend
using the Nigella Lawson campaign through mass communication mediums such as
television, magazines and billboards and signs. The main aim of this strategy is to give
the product exposure and make consumers aware that there is a new product in the
market.
When a new brand enters an international market, they are unknown to consumers,
making it challenging to persuade consumers to switch brands. Hammett (2019), found
that over 50% of consumers have little trust in mainstream advertisements, creating more
of a challenge for international companies. Consumers find products more credible when
advertisements have been created through peers rather than marketers (Shareef, Mukerji,
Dwivedi, Rana & Islam, 2017), and customer reviews and word-of-mouth
recommendations are an invaluable marketing asset (Chatterjee, 2001). Utilising social
media marketing by sending the product to influencers to be reviewed on their platforms
is a successful strategy that can close the gap between marketers and consumers
(Hammett, 2019). People follow social media influencers because they find them

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relatable perceive them to be credible in their product reviews (Hammett, 2019). This
gives influencers the power to persuade consumers to purchase or try a product.
Through the mass media strategy with the Nigella Lawson campaign, Whittaker's can
give their product exposure so that it is in the mind of the consumers. Once this seed has
been planted among consumers, making them aware of the product using social media
influencers will enable Whittaker's to create a trustworthy image among consumers.
Together these two strategies can persuade consumers to try our new product.

Conclusion
As one of the leading chocolate consuming regions in the world, with an increasing
demand for high quality artisanal chocolates increasing, the UK presents a great
opportunity for Whittaker's to launch their New Zealand Destinations Artisan range.
The product is of the highest quality made from the purest ingredients, it has been hugely
successful in other international markets and with the 100% Pure New Zealand marketing
approach, we are confident it can succeed in the UK market that values the quality of
New Zealand Produce.
The pricing was determined based on the cost of production and distribution and had to
account for foreign exchange rates as well as the cost of exporting to the UK. Based on
this the price of the chocolate bars in the UK will be £2.50.
Distribution processes should be done through partnerships as this is a safe and cost-
effective strategy that Whittaker's is familiar with due to their business in other foreign
markets.
The promotion of the range can be done using methods that give the product as much
exposure as possible so that is in the mind of consumers and then by utilising the power
of social media to persuade consumers purchase decisions.
Through these strategies, Whittaker's can take advantage of the opportunity that is
presented in the UK market and be very successful.

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Caviello, N., & Monro, H. (1994). Growing the entrepreneurial firm: Networking for
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Whittaker’s: FAQ. (n.d) Retrieved 30 September, 2019 from:
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Appendix A

ALLOCATION OF CHOCOLATE PRICING

Farmer Origination/taxes Transport/trade Processing Manufacturing Retail

7%
4%
2%

8%

44%

35%

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