Introduction
The Real Chocolate Company Incorporated is a chocolate and confectionary company specializing in gourmet chocolates and confectionary. The Vision of the company is to build the company into the premier retail chocolatier in the United States. The Mission of the company is to use only the finest, highest quality ingredients with no artificial preservatives in the Perfection in Handmade Gourmet Chocolates.
The company’s products are gourmet chocolates, over one hundred varieties of other chocolates, fudges and varieties of caramel-covered apples, roasted nuts and chocolates, also a variety of confectionary. Marketing process of the company is in-store promotions and point of purchase materials. The local stores used
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Two other analytical tools that are appropriate for analyzing the real chocolate company’s competitiveness are Value Chain and Benchmarking. The value chain tool consists of two factors the primary activities which consist of real chocolate company’s cost and assets linked to purchasing of raw materials production and transportation. Production costs are vigorously monitored and only when production cost is low it is converted form a manual operation to an automated operation. Transportation costs are lower by using the trucks that make delivery to collect raw materials on their way back. Quality checks on finished products are maintained and all stores are customer friendly. Support activities are the company’s production, research and development of new forms of chocolates and confectionaries, the human resource management of the company, Sarah Smith and her management teams has good knowledge of the industry and formulate and execute good strategies.
Benchmarking is a tool that allows the company to determine how its strategy in the chocolate and confectionary industry comports to the industry’s best practice, considering both cost and effectiveness. Word count: 615
Part (2)
To identify the main internal of the real chocolate company a core concept of an S.W.O.T analysis.
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
The marketing strategy of Haigh’s chocolate has been identified through detailed analysis of the external and the internal environment of the present market conditions and development of the Haigh’s. There has been complete detailed SWOT analysis of the company on the basis of research conducted from several secondary sources. It has been conducted in order to determine the important strategies and the key strengths of the company. Talking about the chocolate sector which has been further segmented into several categories in which Haigh holds the important position and have captures the major chunk of the market. Such markets range from chocolate blocks, bars and other diet varieties like gluten and eggless products. The demand in the chocolate market is also divided on the basis of the geographic location markets like that in Sydney, Melbourne and Adelaide chocolate markets. Other factors affecting demand in the market includes demographic, behavioural and psychographic segmentation.
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
Its value is that they will be caring and considerate of their employees, customers, suppliers, shareholders, the community and the environment by showing respect to each other and valuing diversity, working together to achieve a safe, friendly and positive working environment, setting clear expectations, recognising contribution and developing their people, leading by example and taking responsibility for their actions, communicating clearly, inclusively, honestly and in a timely manner, having pride in their product and passion for the business, its heritage and its future and contributing to the community through corporate benevolence and environmentally sustainable practices (Haigh's Chocolates).
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
Value Chain- Company developed sources of cocoa and Food and created tie up with Farmers to create a strong and sustainable value chain to provide them high quality supply at low cost (Mars Supply Relation, 2014). The company is also working with Third party supplier to reduce cost and emission. (Mars Product Transport, 2014)
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.
It focuses on the craft of premium chocolate making from cocoa beans sourced from manors around the globe. Cooking procedures are innovative. Production line groups use fastidious artisan abilities to make chocolates that
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
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
Dream Chocolate (D.C.) is a small company trying to survive in an industry with many competitors. The competitive environment comes from some factors. Firstly, D.C. bars are sold in specialty markets, fine gift stores and also available online. However, the competitive companies can also provide various chocolate bars for customers with the low price on the Internet. Secondly, comparing to the big chocolate company like Mars, D.C. is a small company that has the lower brand reputation. Therefore, there may be not many people would trust their products.
- 250kg of beans 185kg of nibs; This relation can be seen in the
For “premium” chocolate maker Scharffen Berger (SB), quality is king. Their distinct process creates a “taste experience” second to none, an unparalleled quality that must be maintained despite apparent capacity issues. To satisfy the rising market’s demand for its product, it must address three primary issues related to capacity: bottlenecks, expansion, and economies of scale. The current bottleneck in the Conche (output=1,344 kg. /day) will be remedied with the installation of the ball mill, however other bottlenecks will be created starting at the Melangeur. A cost-benefit analysis has determined a need for a second melangeur as well as added Roasting time from 8 hours/day to 12-13 hours/day to keep up with the
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