Case Study of Marketing on Wafer Industry ( Perk and Kitkat)

The premium chocolate industry is a large market in the United States and continues to grow around 10% annually. It is also populated with very strong

1. From the business prospective of KKD, the company’s reputation for making tasty, high-quality doughnuts grew steadily throughout the southeastern United States in the 1960s and 1970s, thus, KKD Brand based on high quality product. In addition, there are several ways for KKD to generate revenues; some other revenues can offset one loss.

Hershey’s and Cadburys are moving towards the premium chocolate market through the acquisition or upmarket launches (Zietsma, 2007). The profit potential present in this sector supported by its 20% annual growth rate make it very attractive for large organizations to come forward and avail this opportunity. There is a low threat of new entrants prevailing in this chocolate industry because of the high capital requirements and expected retaliation by current manufacturers. Current players in the industry also possess some barriers to entry for new entrants by maintaining economies of scales with their large production capacity and keeping their product differentiation with their specialized and novelty chocolate products. Even though there are low switching costs and easy access to distribution channels, but still the brand loyalty of the customers including the Rogers’ Chocolate itself make it harder for new firms to come into the competition.

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.

The main threat to Rogers’ chocolate is the competition. Not being able to keep up with the competition or current trends can lead to lost market share. With Godiva having superior packaging, distribution, and price points, and Bernard Callebaut having superior packaging and seasonal influence, Rogers’ Chocolate could be falling behind soon if they do not join the ranks. Rogers’ must find their niche in order to be able to compete not just locally, but globally.

As Roland Marchand mentions, It’s the ‘look’ of you by which you are judged most often (209), working women often don't have time to fix themselves because they are too busy, but what this commercial is stating is that Perk Plus can make your life easier by not having to deal with two bottles and yet achieving this look that will astonish others when they see you walk by. Once again Roland comments, Clothing manufactures stressed overall appearance; gum, toothpaste, and toothbrush markers promised a magic road to popularity in the first winning smile (209), just like toothbrush markers promise people of having a ‘winning smile’ this Breakout commercial promises women that by having nice thick full hair their life is much better because not only do they look great, they feel

In Canada, premium chocolates were growing at 20 percent annually and the Canadian market size for Chocolates was US$ 167 million in 2006. An attractive growth from premium chocolates makes the current player like Rogers Chocolates, Purdys and others are thinking new strategies to expand market. In addition, some big traditional manufacturers like Hersheys and Cadbury are also very interested and keen to enter this segment (Zietsma 2007).

One important underlying driver of change in the chocolate industry is the large manufacturers lobbying to change the definition of the term "chocolate" under USFDA guidelines, if they are successful in doing this then this could potentially have a dramatic impact on the competitive environment, with lots of cheaper products

The premium chocolate industry is changing dramatically with the growth rate in the chocolate industry falling as a whole, other traditional big name chocolate companies like Hershey’s and Cadburys are moving more towards the premium chocolate industry. The premium chocolate industry growing 20 percent annually and with the baby boomers purchasing more chocolate, they put are putting great emphasize on quality and brand when they purchase their chocolates. The underlying drivers of change are changes that companies go through in the industry and competition conditions. There are 14 total driving forces that drive industry change but Roger’s chocolates has 6 driving forces in particular that affect

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

The company’s revenue still relies on partnership deals with brand such as Subway and Dunkin’ Brands (Dunkin’ Donuts). But it’s also been steadily increasing sales on its online shop. For example, it increased its portion packs-related online sales by 13% in 2014.

Despite a decline in annual growth in the recent past (-1.9%), the chocolate industry alone is still making an estimated $1.8 billion dollar profit. With the help of the estimated $1.3 billion dollars in exports and the improvement in the economic landscape, the industry is expected to grow an annual 3.4% in the years 2011-2015. The total number of companies is expected to fluctuate from the 1,039 that are currently in business (IBIS World, 2011). Considering many candies sell for less than one dollar, a billion dollars in profit is an amazing fete.

In today markets, there are many other chocolate brand out there that offer low price product and have a variety flavours to attract customers. With this pressure, it can lead to more aggressive marketing price and promotion activity among the competitors and the Cadbury company.

A shift in consumer demand to want healthier fast-food options has hit the industry hard. Dunkin’ Donuts and Starbucks have combated this shift by offering healthier menu items, something Krispy Kreme has failed to do. Dunkin’ Donuts offers healthy breakfast sandwiches and

One thing Krispy Kreme needs to work on is diversifying their product. Competitors, such as Dunkin' Donuts', offer bagels, low-fat products, premium coffees, and newly cinnamon sticks. They offer these products to go with the changing times of the market. They remain to be the top competitor in the market because they are constantly changing their product line to suit their customers.