Task A
The chocolate industry requires natural resources for the production of the product, therefore one of the main macro environment factors that will affect Chocoapple are natural forces. With the effect on climate change this will affect the overall production of the chocolate bar. There is a growing shortage of cocoa beans due to the inconsistent rain periods and the buyers that are being forced into selling for rock bottom prices The Guardian (2014). One way that the business can manage this crisis is by gathering resources from fair trade suppliers so therefore it is ensured that the workers get full pay that will allow them to maintain the cocoa bean farms. This would be an environmental factor of the PESTEL analysis model. When managing
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The chocolate market is oligopoly therefore this means that there is a few companies that dominate the market, which means that it is very difficult to enter this market and become well established. From a managerial perspective this means that it would be essential for the product to have a unique selling point that would ensure that the product stands out against the competition. Using Porters five force model and the threat of new entry factor this would show that the business has got the power to offer a new product to the market and potentially steal customers from the other dominant companies. There is also the risk that the more dominant companies in the market have prepared for the new entries and then use tactics to combat them and force the new entries out the market. As a business there is very little control over the competition in the market therefore this makes it a difficult aspect to manage, but the business can reduce the risk by ensuring that the price of the product is very competitive and the product is also very good …show more content…
If the product is not viewed as a healthy alternative compared to the other chocolate bars on the market then the business will not be able to compete against the more established chocolate companies. There is also a negative view on chocolate being an unhealthy snack, therefore if the product cannot change the views of the potential customers then they will not substitute the product instead of buying other chocolate bars One way to combat this issue would be to market the product effectively, Chocoapple could do this by ensuring that the unique selling point which is the healthy aspect with the apple pieces in the chocolate bar. One way that this could be marketed is through advertisement that focuses on the health aspects of the product, this will then change the perspective of the product to the potential customers. Another marketing technique that can be used to ensure that the product will be well accepted into the health conscious culture is to use psychological pricing. By using psychological pricing this causes the customer to believe that the product is beneficial to health and also reasonably priced which increases their likelihood to want to purchase the product. This can be applied to the social factor in the PESTEL analysis model, this is due to the fact that currently there is a big health trend in our culture ‘In the UK we are going through a
While Europe and the United States account for most chocolate consumption, the confection is growing in popularity in Asia and market forecasts are optimistic about the prospects in China and India (Nieburg, 2013, para 9). According to the CNN Freedom Project, the chocolate industry rakes in $83 billion a year, surpassing the Gross Domestic Product of over a hundred nations (“Who consumes the most chocolate,” 2012, para 3). If chocolate continues grow popular in Asia, it stands to become even more lucrative.
A PESTLE analysis is a macro environmental framework used to understand the impact of the external factors on the organization. PESTLE stands for "Political, Economic, Social, Technological, Legal and Environment” factors.
Market research and information about the industry is very important to the organization because it will allow the organization to position itself well in terms of sourcing chocolate raw materials and in identifying the market for its products. For example, understanding that some chocolate product purchases are seasonal, e.g., at Christmas; around Mother’s Day; and, on Valentine’s Day, allows the organization to have more product on hand and to create displays, in store, that will increase purchases and attract more customers when existing customers tell their friends about the availability of high end products, at reasonable prices, in their store.
PEST analysis is a useful business tool to analyze the external factors that may affect an organization’s operation. PEST analysis includes four factors. The four factors are political, economic, social, and technological. The political factors concentrate on the role of governments in shaping business such as labor law, tax, and financial policies.
Chocolate companies changed from minimal production to massive manufacturing. Thus, targeting different market segments that weren’t possible to reach due to the high cost of the good. The market was able to shift because of the industrialization process that includes several innovations, such as van Houten’s process, this allowed a broad production and distribution of chocolate that spread around the globe.
Critical Strengths and weaknesses of the Cowgirl chocolates that determines the success of the small business? Some of the critical strengths that help determine the success of the company would be having a distinctive product due to the fact that her product would not be considered a regular chocolate bar, because it is infused with cayenne and other peppers. This makes the product very different from competitors. Another strength would be Marilyn’s experience working at a chocolate shop at the age of 16 this gave her the love she has for chocolate by working with others and seeing why others loved chocolate. As a result this encouraged her to become more creative when opening her own business years later. Other strengths the company’s chocolates has won 11 awards either in the annual Fiery Food challenges sponsored by Chile pepper magazine or the Scovie awards competitions sponsored by Fiery Foods the caramel sauce also won 1st place in the latest competition.
PESTEL analysis is the technique where political, economic, socio-cultural, technological, environmental, and legal factors are evaluated to identify external forces that impact market’s growth or decline. Assessment of the external environment helps to recognize key drivers and create a development strategy for the company.
Market penetration could be used if a successful product was being re-launched to increase the company’s market share, but this would not work if the product were a dog. The marketing models can be influenced other factors and research. Cadbury’s competitors may affect the company’s use of the Ansoff Matrix. The model is used to analyse the strategic direction of a product, and if a product was placed in the market expansion, which has medium risk strategy, and competitors also released a similar product in this section, there will be a higher risk strategy, which will affect the product’s performance and position in both the Boston matrix and the product life cycle. My questionnaire told me there was a gap in the market for my product, and my SWOT analysis reinforced this.
It is a community approach to prevent diseases and illnesses. The social model focus is on policies, education and health promotion and goes beyond the focus of lifestyles and behaviour and accepts the need for social change to provide prerequisites for health. It was developed in the late 1970’s 1980’s as some members of the community were not experiencing the same levels as health as others despite the understanding of the impact of lifestyle and behaviours on
Pestle analysis is the tool to analyze the external environment of the business. It takes the different factors according to which the opportunities and threats can be analyzed and the actions plan can be made.
What do the statistics reveal about the product? This reveals that the market for the two products is present, and combining them will result in a profitable business. This paper is a report on targeting and segmenting the new liquor-filled chocolates as a potential business. To begin with, it is crucial to appreciate the meaning of segmentation and targeting, because these two terms lay the foundation for this report. Consequently, segmentation is dividing a market, into groups of consumers with homogenous traits in order to provide each group with the desired product.
Cocoa production is predicted of getting shortage of supply in 2020 (Nelson, 2017). The famous chocolate drink that Malaysian drink daily, Milo contains cocoa. Other than Milo, Koko Krunch, Nestle Crunch Wafer, KitKat are also mainly made from cocoa. Nestle as a company which largely depends on cocoa bean for its products, will become one of the victim of this cocoa supply risk. The biggest cocoa producer in the world, Ivory Coast, is facing the problem of diseases infected in cocoa plant, frequent rain, and buyers forcing producers to sell cocoa at very low price (The Guardian, 2014). In Malaysia and Indonesia, cocoa plantations are threatened by a tiny moth named as cocoa pod borer which eat the seed (Nelson, 2017).. These pests has cost cocoa
This means that each party can make choices. However in chocolate manufacturing one of the parties is often a large multi million dollar corporation and the other is a small farming company. Concern about the impact of this on small primary producers in developing countries lead to the Fairtrade agreement which Cadburys is a part of. By signing up to the Fairtrade agreement Cadburys agree to buy cocoa at a certain value. Last year Cadburys sold over 7 million chocolate products made with Fair Trade cocoa and this supported 65,000 jobs in
A PEST analysis is an analysis of the external macro-environment that affects all firms. P.E.S.T. is an acronym for the Political, Economic, Social, and Technological factors of the external macro-environment. Such external factors usually are beyond the firm's control and sometimes present themselves as threats. For this reason, some say that "pest" is an appropriate term for these factors. Let us look at the PEST analysis of the Indian aviation sector:
PESTLE analysis, which is sometimes referred as PEST analysis, is a concept in marketing principles. Moreover, this concept is used as a tool by companies to track the environment they’re operating in or are planning to launch a new project.product, or service etc.