Project Proposal – MIS 600 The business being studied, is that of Cargill Cocoa and Chocolate North America (CCCNA). They are part of Cargill, Inc. an International producer and marketer of food, agricultural, financial and industrial products and services. They are the largest privately-owned company in the world based in Minnetonka, Minnesota. CCCNA partners with Cocoa farmers around the globe to procure, ship, and transform their produce to a wide range of cocoa and chocolate products and applications. After the consolidation of the sector in 1990’s, CCCNA has emerged as the largest manufacturer of Chocolate in USA and owns several brands, apart from supplying products for other well-known brands like Hershey’s, Mars, Nestle etc. and …show more content…
Triple Point's flagship software platform, Commodity XL, integrates physical and financial market requirements for multiple commodities including agriculture, emissions, biofuels, freight, metals, power, coal, gas and oil. Triple Point's software products are used by over 400 commodity trading and energy companies in 35+ countries around the world. Industry Sector – Agricultural Manufacturing and Commodity Trading Business Objective: CCCNA intends to reliably partner with the Cocoa Producers and Customers to help them thrive, today and in the future, by keeping up with rapidly changing markets and consumer tastes. Their vision is to create value for customers at every opportunity by offering deliciously innovative products and helpful services that help them succeed in their markets. Long-Term Business Strategy: CCCNA defines its long-term business Strategy in terms of four pillars: • It all starts with having the right Selection of highest quality cocoa & chocolate products that Cargill’s customers want. • It’s about delivering the product to customers – consistently in spec, on time and in full, with a Service level that makes Cargill the easiest to work with, the most reliable and most welcoming supplier in the industry. • Behind the scenes, CCCNA works hard in managing one of the most complex and dynamic ingredient supply
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
At Scharffen Berger Chocolate Maker, Jim Harris was the COO (chief operation officer) and was with the company for about 18 months and was observing the increased demand for their chocolate. “America’s finest dark chocolate” company wanted to increase production by equipping factories with new machineries and equipment but did not want any difference in the taste of the chocolates they produced. As the company totally agrees on not compromising the taste of chocolates and increase the production in order to meet the rising demand for their chocolates they should probably get into customizing chocolates blend for the mass-market retailer in order to grab huge market share, increase accessibility of the chocolate to customers and provide variety of choice to the customers by maintaining the taste they are known for. As the demand is increasing from 50%, 100%, to 150% by the start of 2006, Harris has to make a significant decision in order to invest Scharffen’s capital budget in expansion of the Company. Harris is recommended to acquire the required machinery in order to fasten the production and increase the capacity of the plant and should be careful about the quantity to be produced as the acquiring of machinery will increase productivity multiple times but the initial demand for
Haigh’s Chocolate provides quality products and service throughout Australia and make sure to produce only the best raw materials from
Clare’s Chocolate Cafes has always used good quality cocoa to make their chocolate products. This is, in itself, an amazing marketing product because customers know that while they may be paying a little bit more, the product is worth it. As well, the organization makes a wise customer draw when each hot beverage is served with a high quality chocolate product. The early practice of making chocolate products by hand and providing individual or pre-packaged products, of all sizes, for the customer to select, was
There is a high bargaining power of suppliers because of the need of the key ingredients required for chocolate manufacturing and limited number of suppliers for this industry. Since cocoa trees require tropical climate, it forces the main producers in the west to import them from countries in West Africa or other hot places
The premium chocolate industry is having an intensive competition in Canada with the strong growth potential. Industry growth opportunity imposes increasing competition from rivals and threats of new entrance that adds pressure on overall profitability. Even though Roger’s has been able to establish its place in the chocolate industry with its strong brand recognition and products’ quality, it still needs to be on top of ever- going market changes, by continuously
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
As of October 2012, Andrea Torres, director of new product development at Montreaux Chocolate USA, needs to recommend whether or not the company should pursue a new product launch in the United States. The new product, a 70% cocoa dark chocolate with fruit product, has been tested because of “its heightened revenue potential, better alignment with health and wellness initiatives, and strong consumer acceptance of the proposition” (Quelch 7). This memo will address the
In pursuit of upscale segments of the market and an increased market share, Consumer Food Groups (CFG) purchased the rights to become a distributor of Montreaux’s European chocolate products in the United States in June 2011. As CFG is the division which produces confectionery products for Apollo foods, they contribute not only to one-third of the company’s total revenues and net income, but are a vital part of Apollo’s ranking as second in the global confectionery business. Upon acquisition of the rights for Montreaux’s chocolates CFG formed a new division, Montreaux Chocolate USA. Under the leadership of David Raymond as division manager and Andrea Torres
The Scharffen Berger Chocolate Maker is experiencing an exponential year over year growth rate of their premium product. This is a situation that all new businesses strive for and although Scharffen Berger is pleased with their growth, they are facing a potential dilemma. The company must consider how they will keep up with growing demand while having enough capacity to handle the increase in production and maintain their high quality standards.
The Cherry Lady falls under the premium chocolate industry. Thus, the porter’s model can be utilized by The Cherry Lady as a framework to structure and analyze its industry. According to the Model, the premium chocolate industry can be impacted by five distinct forces such as rivalry among existing firms in the industry, threats from substitutes, bargaining power of buyers, threats of new entrants, and bargaining power of
- 250kg of beans 185kg of nibs; This relation can be seen in the
By October 2012, it had been over 15 months since Apollo Foods, a global consumer packaged-goods firm, had obtained the rights to distribute the well-known European chocolate company, Montreaux, in the United States. Andrea Torres, the director of new product development at Montreaux Chocolate USA, is presented with the
Mars states that its long-term business depends on a sustainable supply of high quality cocoa and it is committed to helping cocoa be an environmentally sound industry at all levels of
After a thorough analysis of Apollo Foods business situation, a decision plan regarding the launch of a new chocolate product for its new branch acquisition Montreaux Chocolate USA has become clear. This decision plan is based on the following key challenges and marketing issues that need to be addressed. These challenges and marketing issues can be best summed up by a decision on what brand the product will be home to, whom the product will be marketed to, the ingredients and formulation of the product, the packaging of the product, can the product perform well enough in a sales forecast plan to exceed a $30 million dollar hurdle rate, and finally to launch or to test market the product. After reviewing Apollo Food’s data, their market research findings, and sales forecasts. A decision plan that addresses all of the key issues and marketing points has been created and will be