Introduction
Kit Kat is one of the most famous chocolate in the world with 150 chocolate consumed per second globally. (Nestle 2013 March 18, 2013). In this report, the following topics of the product will be discussed includes the product information, development of countries, location factors of manufacturers and sources, stakeholders and how they are affected by the product, alternatives, decisions on the consequences and also a map displaying the countries of manufacturers and sources.
1. Product information
Kit Kat is brand of chocolate owned by Nestle which is one of the biggest Multinational Corporation in the world. The Kit Kat is owned by the Hershey Company in the United States (omg.facts March 19, 2013). It was first created and sold by “Rowntree’s Chocolate Crisp” in London and the South East in September 1935 until the 18 of January 1988 by Nestle. (Nestle Professional March 18, 2013). The headquarters of Nestle is located in Vevey, Switzerland (See figure 2.1). Nestle had their own manufacturing plants throughout the world. In India, the factory is located in Dubai, TechnoPark, United Arab Emirates (See figure 2.0). (Zawya July 27, 2011)It is South of the Persian Gulf, East of Saudi Arabia and North of Omen. In the U.S, the manufacturer of the KitKat is located in Reese`s Hershey, Pennsylvania, it is South of Canada and the Great Lakes. It is North of Mary land and East of. The Kit Kat is made from many ingredients. (Nestle March 21, 2013) such as Cocoa, Sugar, Palm Oil and Milk.(See figure 2.6 and 1.0) (Top5anything 2013).
Countries Sources
Ivory Coast Cocoa
India Milk
Brazil Sugar
Indonesia Palm Oil
(See figure 2.6 for the map of the sources)
2. Development
Development is process of be...
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...right in front of me, it is like torture. But, after researching about Kit Kat ( one of my favourite chocolate) for my project, not only that I found information of why it is something bad to eat it but it is also something child are forced to take parts in. Children in Burkina Fatso and Ghana were often smuggled across to Ivory Coast where they received no education; they will have to work in conditions where it is dangerous even to an adult. I find chocolate kind of scary now; they taste good bad they are made from the hands of a child. I hope I won’t hate chocolates for this.
In the future, I will still buy chocolates since I love chocolate but I won’t be able to forget that child are the workers. I will always feel bad about the children in Africa where they have to work all day and I get to live in a developed country with family and friends supporting me.
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.
The videos provided for this subject builds a great understanding on what happens behind the scenes and how the production cycle of chocolates turns deadly for few. The chocolate industry is being accused having legit involvement in human trafficking. The dark side of chocolate is all about big industries getting their coco from South America and Africa industries. However, it is an indirect involvement of Hersheys and all other gigantic brands in trafficking (Child Slavery and the Chocolate Factory, 2007).
America is full of stores that have clothing made by children, but it’s not only us… maybe the things going on in Africa, where most of the cases are coming from, need a little light shed on them. In Africa they are using kids to cut down large trees, or in sweatshops… in actuality it’s any job that could help them support their families. That’s why most of the kids do these things, they have to, to keep their families alive and prevent them from dying of things like AIDS/HIV (getting money for the treatments) or just starving to death. Most of the “big guys” in the government of larger states, (like America or Europe) want “free trade” which is basically where there will be less regulations to get things traded. But that would also mean the places that are small and/or poor would get a very negative effect and lots of workers would be out of jobs, meaning people would be hasty to get more workers and who would they target? Kids. So that’s why there is still a lot of people fighting against it, which is a good thing. It would be very unfortunate for the kids if more and more of them had to go do these things or get kidnapped and forced to do them.
Child labor is very different in the industrial revolution compared to the chocolate industry, however there are some similarities. This issue occurred back then but is still around now, especially through different aspects of child labor; such as how these children are treated, which is not very friendly. Even the political role plays a major part in this situation. On the other hand there are some benefits from it, but it is still a terrible and unfortunate thing to happen to the children.
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.
Hershey’s takes advantage of many different types of advertising. Television commercials and ads are very common. Sponsorships is also another very common way Hershey advertises. Hershey sponsors everything from ice skating shows, to racecars. The Hershey Food Corporation is very competitive so they need this type of advertising. However, the only other major corporation to compete with is Mars. The chocolate industry is diffidently not pure competition. Mars and Hershey’s form an oligopoly. Hershey’s has so many different kind of products that they have a lot of competition. The company has branched out to where they’re not only competing against other chocolates but also for fruit candies, and baking chocolate and chocolate drinks as well. The fact that so many products are offered, extends the corporation to different divisions. Mexico and Canada have manufacturing plants. Seventeen manufacturing plants include Hershey, Pa (Hershey plant, Reese plant, West Hershey plant0, Hazleton, PA, Lancaster, PA, Memphis, Tenn., Naugatuck, Conn., New Brunswick, NJ, Oakedale, CA, Palmyra, PA, Reading, PA, Robinson, Ill., Stuarts Draft, VA, Wheatridge, CO, Dartmouth, Nova Scotia, Montreal, Quebec, Smiths Falls, Ontario, and Guadalajara, Mexico.
The Hershey Company is the largest manufacture of chocolate and candy in the United States. The Hershey Company produces and sells a wide variety of sweets, including gluten-free and sugar-free sweets (The Hershey Company). Some famous brands produce by The Hershey Company include, Hershey, Reese’s, York, Kit-Kat, Ice Breakers, Twizzlers, Almond Joy, and Mounds (The Hershey Company). Milton Hershey changed the candy making industry by turning his caramel business into a chocolate industry, caring enough to influence his company to help organizations and individuals, and by remaining successful for over a hundred years.
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.
The chief element of Krispy Kreme's strategy is to deliver a better doughnut and to appeal to customers in new ways. They have taken great steps to insure customer satisfaction from the use of their proprietary flour recipe to their automated doughnut making machines. They have chosen to target mainly markets with 100,000 households. They also were exploring smaller-sized stores for secondary markets.
In 2013, about 7.4 million tons of chocolate is expected to be consumed globally, totaling to nearly $110 billion (Pardomuan, Nicholson). I can honestly say that I will be one of the many people who contribute immensely to those massive quantities. Chocolate has always been one of my guilty pleasures, leading me to consider myself a “chocoholic.” After 20 years of eating chocolate, I learned there is more to chocolate than meets the eye. Many chemicals compose each delicious piece creating multiple psychological effects on the mind. With the knowledge of the chemical and psychological influences that chocolate has on the human mind and body and my own curiosity as to why I love it so much, this led me to ask: Why is chocolate considered such a pleasurable and craveable food?
This memo contains the answers to Questions 1 through 4 from the International Marketing assignment titled, "Krispy Kreme Doughnuts Going Global?" The questions are offset in the shaded area and the answers are provided below each question.
This report outlines and analyses the consumer decision process encountered when purchasing biscuits in relation to primary market research completed targeting one particular demographic of the possible market. The purpose of market research is to ensure that a businesses focus is on producing a product that meets the needs and wants of consumers, therefore it is essential to identify a potential target market and create a product that is able to be successful at all stages of the consumer decision cycle (Armstrong, Adam, Denize, Kotler, 2010, pp. 74-146). The report will explore the effects within the biscuit industry of various external factors influencing their products. Political and legal regulations, socio-cultural trends, economic shifts and the natural environment all impact a consumer’s decision making process and in turn the necessary actions of the businesses. Additionally, there are various demographic, geographic, behavioural and psychographic traits and trends of the target market that are inextricably linked to the circumstances within a marketplace and are analysed (Armstrong, Adam, Denize, Kotler, 2010, pp. 74-146).
Ecuador is the biggest fine or flavor cocoa exporter of the world. Since chocolate is a billion dollar industry, one would think cocoa farmers would be benefit fairly. However, when the production chain is analyzed, one can find large differences between the working conditions of cocoa farmers and the chocolate factory employees. Still in the 21stcentury there exists a large amount of child labor in cocoa producing countries. Meanwhile in the chocolate factories (which are mainly located in developed countries), the transnational corporations boast about their compromise with ethics, particularly human rights and environmental protection.
...the product until they encounter one. Due to this, it is rare that one who has not seen a Krispy Kreme advertisement, or heard from a friend about the quality of a product will seek out an opening store. Advertising is important for most businesses in the specialty foods industry because of the high competition. Starbucks is at a level where they have become a household name. It is not uncommon to see Starbucks logo’s in movies or television shows, because it is a symbol of quality. Recognition as well-built as this does not happen through natural marketing evolution. It takes great effort to become a company that is on the tip of consumers tongue when discussing certain products. The goal of Krispy Kreme is to be the world wide doughnut name. Unfortunately, without the power of a cross country campaign, this status will be difficult to achieve. Successful advertising can be achieved by using technological mediums such as the internet to generate consumer interest in places it does not yet exist.
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