NZ Chocolate and confectionary industry
7/31/2012
Assignment 1 Task 3
Annelize Vermeulen
Table of Contents NZ Chocolate and confectionary industry 3 Macro environments: 3 Political 3 Environmental 4 Social 6 Technological 7 Economic 7 Porters five forces 8 New Entrants: 9 Substitute: 9 Buyers: 10 Suppliers: 10 Rivalry: 11 Micro environments 12 Consumers: 12 Employees: 12 Suppliers: 13 Distributors, Retailers and wholesalers: 13 Transportation providers: 13 Shareholders and investors: 14 Government: 14 Media: 14 Sponsors and Charity organisations: 15 Direct and Indirect Competitors. 15 Swot Analysis: 15 Segmentation Criteria: 17 Marketing Cadbury Marvellous Creations Jelly
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It will also affect the sources from where manufacturers in the industry get their ingredients. If a lower amount of cacao or sugar must be used according to legislation, Cadbury will be forced to buy fewer amounts of these ingredients and thus affecting the farming industry. (abhishreshthaa, 2012) * If taxes are to be increased by the government chocolates and confectionary than customer have to pay more for it. * If some party such as congress comes into power than it will affect positively or negatively depending on tax and norms. * If inflation rate increases than it will affect the farming sector so dairy milk, cacao, sugar and other ingredient prices will also be affected. * Chocolate and confectionary producers are subjected to comply with advertising, health regulations, food safety and consumer and fairtrade legislations. Consumers may not be misled and falsely represented by advertising on packaging. Chocolate and confectionary producers have to make sure that their labels and advertising is compliant with the governments’ requirements. Legal assistance can be obtained to make sure all requirements are met. * Manufacturers have to comply with food labelling and packaging legislations. All nutritional values must be visible on packaging. All allergies that may be evoked when consuming of using a product must
The label contains allergy information so people don’t eat things that will cause them an allergic reaction. The last thing they contain are storage and cooking guidelines so the person knows how to store and cook their food.
The article discusses the regulations of the U.S. Food and Drug Administration (FDA) and the U.S. Federal Trade Commission (FTC) on health claims and structure/function claims of food products. It explains that the FDA approves a health claim that is supported by
Because of the amount of substitutes on the market, the premium chocolate industry is also has a high level of competition engrained in it. Rival companies with similar products consistently offer an alternative for customers.
In today’s society there are regulations in place for everything- from the safety of children’s toys to road construction to food processing and packaging. “Regulations consist of requirements the government imposes on private firms and individuals to achieve government’s purposes” (Litan, 2008). Regulations are in place to protect businesses, producers, consumers, individuals, animals, and even the environment. For example, the packaging and labelling regulations in Canada protects the consumers and producers of the many food products produced in Canada, one of which is honey. This paper will focus on the packaging and labelling requirements of Canadian honey through discussion of the regulations, stakeholders and the opposition of stakeholders
The Food Drug and Cosmetic Act contains a labeling law for any positive and negative “material” changes to the nutrition of food. For example, trans fats are labeled because they are related to cardiovascular disease (Murphy). Products containing peanuts and other allergens are required to be labeled due to the potential adverse health effects if eaten by individuals with nut or other allergies. In 1992, the Food and Drug Administration addressed the labeling of GMOs in a policy statement amended to the act. The policy states that foods developed by genetic
With the increasing trend in healthy diet preference, the underlying drivers of change of competition in premium chocolate industry at the strongest level are the buyers’ preferences for differentiated, refined products, instead of standardized ordinary products that are no longer demanded. In addition, baby boomers - generation with their disposable income are spending a lot on high quality premium chocolates.
Abstract: A food label is the tool that helps the manufacturer communicate with the consumer. Consumers in each country will have different expectations from the food label. This paper seeks to present a comparison between the positive and negative aspects of mandatory labeling in Canada Versus India.
The premium chocolate market has been growing at 20% annually, showing that buyers are willing to pay more for a better tasting and better quality chocolate. The declining growth of the overall chocolate market and rapid growth of the premium chocolate market is positive for current producers of premium chocolates in that the decline
You may also say that the FDA requires all the ingredients to be listed.Often additives are not specific enough, making it hard for buyers to know for sure what they are eating.For instance, before an example is (MSG) a product which causes headaches and nausea "The terms “natural flavor” and “hydrolyzed yeast extract” are often forms of MSG."(http://www.sustainabletable.org/385/additives).Food companies put their ingredients in disguise, so the buyer wouldn't
Industry Analysis: Cadbury Schweppes (CS) is comprised of a global confectionery and beverage company. For the purpose of this case we will maintain our focus on the confectionery business and the assessment of adding to their sugar confectionery portfolio. CS is number three in the beverage business but see the opportunity to become the largest confectionery in the world. The categories are chocolates, sugar and chewing gum. At this time Adams is the number two sized in the gum business. This industry operates on “bigger is better in confectionery”. Their strategic discussions and ambitions appear to stay true, in mentality, to this mantra. This mantra could be potentially dangerous to the business. CS had a presence in over 70
The social demand for chocolate varies for several reasons. One of which is a change in the level of the population. The population of the UK is aging, people are living longer and there are a lower percentage of children. This would indicate that although the population is increasing because of people living longer there are fewer children, which is the main consumer for the chocolate industry resulting in less demand for the product.
This report will cover the background understanding about the confectionery industry and do an in-depth analysis of the micro and macro environment. In addition, the market segmentation, market positioning and target market that Whittaker’s is concerned with is also discussed.
Less interest rate charged by banks for agricultural inputs. Inflation may provoke higher wage demands from workers and raise costs. Higher national income growth may boost demand for a firm's products
product label and comply with any limit that are established for cosmetic products and ingredients
Political factors impact the agricultural sector in factors relating to regulation, distribution, and consumption of foods in a given country. Government policies and imposed regulations have a direct effect on nutritional choices that a consumer makes, and this, in turn, affects the agriculture market (KPMG, 2012). For example, policies governing food prices or the amount of information that a consumer will receive affects the choice of the consumer. Food regulation and safety measures implemented influence the supply of food products, and ultimately determines the market choice for consumers (KPMG, 2012). Economic factors have a direct effect on the agricultural industry. On one hand, the input cost such as the price of seeds, fertilizers, and cost of labor affect the productivity of the industry. The economic status of a country also affects the industry’s productivity. For example, in developing countries, the agricultural sector is less developed owing to limited resource input and poor infrastructure (KPMG, 2012).