Target Market
In order to obtain a goal of a target market, Tootsie Roll Industries must have an understanding of their customer’s demographic traits and a defined market size included in the business plan. The company states that its brands resonate strongly among every age group, culture, and demographic; for every occasion and event (Tootsie Roll Industries, Inc., 2013). To further provide a visual for their targeted market, Tootsie has a picture on their website of a child who is excitedly holding an unopened bag of delicious candy ready to be eaten. As the company plans on continued expansion, the targeted market must include a broader demographic of people. The company must first understand the buying patterns of the targeted market. This includes if the product appeals to customers more at a certain time of the year, how affordable the product is, where the customer first heard of the product, and the customer’s motivation for continued purchases. According to Abrams, R. (2003), “When assessing the size of the market, you will find demographic and geographic information easiest to locate. Much of this data is available from U.S. Census Bureau reports, local governmental agencies, real estate brokerages, chambers of commerce, and business directories.” With a reachable and definable target market, Tootsie will continue to expand its customer base as well as the company itself.
Competition
Benchmarking, analysis of internal operations, and predicting future competition are all strategic steps that Tootsie Roll Industries must take to remain competitive. To see where they stand financially when applying for a loan, Tootsie must compare their financial statements to other competitors, such as Nestle. By investigating Nestle’s internal strength, Tootsie can benchmark their 2011 total revenues of $532,505,000 to Nestle’s $83,642,000 in revenue (Nestle, 2013).