...By: Hriskesh Ashokan, 42522490 Describing and illustrating changes in the international cocoa/chocolate market over the last 20 years. Hriskesh Ashokan 42522490 The aim of this essay is to apply the economic concepts I have learnt, to depict changes that have taken place in the international cocoa/chocolate market over the last 20 years. Given the criteria that we are only allowed up to five articles to cite references, most of my figures will be limited to those portrayed in my sourced articles. In recent years, the market for chocolate has been rather stagnant (Britain:Stuffed; Chocolate, 2003)Let’s take demand into consideration, for being a force that has driven the change in the cocoa/chocolate market. There are several factors that affect demand, but in this case, notable ones that are related to the chocolate market would have to be specific preferences of consumers, as well as the number of consumers. With Britain being one of the world’s largest consumers of chocolate, let’s relate to the sales figures they have had. The decline in sales numbers can be attributed to consumer behaviour. It could be the fact that consumers have been made more aware that chocolate is not forgiving when it comes to health. ‘Perhaps browbeaten by the obesity scaremongers, perhaps disgusted by their inability to see their toes’ (Britain:Stuffed; Chocolate, 2003). This undesired change in their preference for chocolate is reflected with a decrease in demand. This is shown in figure 1...
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...where are they located? Who are the major customers? What are the supply trends? Are there specific supply and demand price drivers? What is the overall competitive environment of the market for this commodity? The major suppliers are small, family-run cocoa farms in regions with tropical climate. Specifically, the primary growing sites consist of Americas, Asia and Africa, with a portion of 15%, 17% and 68%, respectively. Among them, Côte d'Ivoire in Africa is the largest producing country with a total 33% global supply volume. Usually, the cocoa beans are imported by direct purchase or through a broker. The ultimate major customers of cocoa are coffee and chocolate companies including Hersey, Godiva, etc. They are mainly from developed countries, whereas increasing markets exist in developing countries like China due to the growing middle class. With this stable demand growth, the total production for the past years has shown a growing tendency with a decreased increasing rate. Notably, due to the fluctuated weather patterns in recent years, it may pose more uncertainty on the supply as cocoa is significantly sensitive to the weather. Another factor for affecting supply price is the concentrated supply causing concerns. Furthermore, many cocoa-producing farmers switched to rubber production for higher profits, which may directly influence the supply price. On the other hand, the growing consumption of chocolate, especially in developing...
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...fact that, at long last, the global economy is showing signs of sustained recovery. Growth in many major markets is accelerating. The stellar performers are India (expected to grow by 22% this year), Brazil (13%) and China (11%). The potential long-term growth in emerging economies – many of which have growing middle classes – is vast. To give just one example: the per capita consumption of chocolate in China is only a tenth of that in Switzerland. Yet, as this global tour of the chocolate industry suggests, the future is not without challenges. The immediate concern is the balance between supply of cocoa and the chocolate industry’s demand. Manufacturers are already confronting this issue, investing in the development of higher-yield beans, encouraging more sustainable practices, collaborating more closely with farmers to improve efficiency and exploring potential new sources of cocoa in countries such as Australia and Vietnam. Across the world, consumer tastes remain diverse. In the US,...
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...in practical that chocolates are the most inevitable indulgence of all times. In the realm of advertising, the business of chocolate marketing stands at a figure of Rs.145 crore. And with that kind of money, the space becomes all the more interesting to watch out for, more so for the marketers. If we continue to let the numbers do the talking for sometime, we will get to know some dark chocolaty facts, like, Cadbury leads the Indian Chocolate market with a 70% share of the choco-pie, while Nestle occupies only 25% of the choco chunk. Interestingly, even with less than half of the former’s share, Nestle appears as the second leader in the entire arena and hence becomes the second pivotal player in the market. But that’s not the reason why they become this issue’s anointed marketers at war. In fact they have attained the status for being aggressive marketers of their respective chocolate variants for a consistently long duration without fail. An attack from one side has rarely gone unnoticed and not being retaliated with utmost valour from the counterpart. So let’s look at the events based on the 4Ps of marketing that lead to the culmination of this war, if at all, it has reached to one. PRODUCT The very first element of the 4Ps of Marketing – ‘Product’ – is nothing less than weapons for the companies. Going by that logic, Cadbury’s armoury comprises of Dairy Milk (their flagship product), Dairy Milk Fruit & Nuts, Dairy Milk...
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...micro and macro perspectives. Describe economic efficiency. Understand the importance of ceteris paribus assumption. Distinguish between positive and normative statements. TUTORIAL EXERCISES. Question 1 In a paper written by Bentley College economists Patricia M. Flynn and Michael A. Quinn, the authors state: We find evidence that Economics is a good choice of major for those aspiring to become a CEO. When adjusting for size of the pool of graduates, those with undergraduate degrees in Economics are shown to have had a greater likelihood of becoming an S&P 500 CEO than any other major. A list of famous economics majors published by Marietta College includes business leaders Warren Buffet, Donald Trump and Diane von Furstenberg. Why might studying economics be particularly good preparation for being the top manager of a corporation or a leader in government? Question 2 In a mixed economy, does the government decide what goods and services should be produced? Briefly discuss the reasons for your answer. 1|Page Question 3 Explain which of the following statements...
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...S ustainable sourcing and procurement Sourcing and procurement as driving forces for sustainable business b y Helen van Hoeven, Lean & Green Foreword President Obama recently said that there are only two kinds of car companies: those that sell hybrid cars and those that will sell hybrid cars in the near future. The same is true for sustainability in supply chains. There are companies that source and sell more sustainable products and there are those that will do so in the near future. With a world soon populated by nine billion people and over two billion new middle-class citizens, traditional sourcing and selling will simply be a no. You are either on the pathway to sustainable development or you are out of business. The challenge of sustainability is reshaping the relation ship between business and society. Industry needs to better manage natural resources and significantly lower its global ecological footprint. And companies need to engage much better with suppliers and workers in the emerging and developing economies. The mission of the Dutch Sustainable Trade Initiative (IDH) is to upscale and accelerate the mainstreaming of sustainability in international commodity chains. IDH joins the forces of business, non-governmental organisations, labour unions and governments. We bring diverse stakeholders together in focused and result-oriented sectoral coalitions that implement ambitious improvement programmes. These programmes tackle social, ecological and economical bottlenecks...
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...are known for 9 Competitive Advantage 9 Mission Statement 10 SWOT Analysis 11 Organizational Structure 14 Company’s Capabilities and Processes 14 Industry environment 15 Customers 15 Who are they 15 Any recent or expected changes in behavior, attitudes, composition of the customer base 16 What are they purchasing from your company 16 Why are they buying company’s product 16 Describe order qualifying and order winning characteristics of your company’s product(s) 17 Context 17 Industry 17 Economics 19 Technological 21 Societal 22 Legal 24 Competitors 25 Kind Healthy Snacks 25 Nature Valley 28 Kellogg’s 31 Financial Ratio 34 Collaborators 35 Growth Strategy 36 Detailed description of the growth strategy 37 Goals/Objectives 37 Segmentation 37 Targeting 38 Positioning 38 Strategy Execution 40 Product 41 Goals and Product Description 41 Process Description 42 Life Cycle Stage 43 Place 43 Goals and Market Exposure 43 Channels Used 44 Supply Chain System 45 Promotion 46 Goals 46 Promotional Blend 47 Price 50 Goals 50 Value Proposition and Price Sensitivity 50 Pricing Strategy (Short Term/Long Term) 51 Breakeven Analysis 52 Implementation and Control 53 Timing and Implementation Activities 54 Sales Estimates (Forecast) 54 Forecast/Estimates 56 Scenario Analysis and Discussion 57 Sensitivity Analysis and Discussion 59 Comprehensive Financial Analysis 64 Conclusions 65 Appendix...
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...Hershey Company Name University Abstract The Hershey Company introducing the world of chocolate examines the remarkable successes and failures of the company. They are the largest North American manufacturer of chocolate and sugar confectionery products in its constant pursuit to maintain growth and profitability in a competitive industry. Hershey Company has an array of chocolate and confectionery products, which includes candies, beverages, baking ingredients, gums, syrups, and toppings for ice cream. Hershey Company produces and maintains more than 80 different brands. Hershey chocolate bar is known as the “Great American Chocolate Bar,” which is produced by Hershey Company and was invented by Milton Hershey over a hundred years ago and its products are sold in sixty different countries. We will look at the history of the company, its good marketing plan to expand that allows them to be more profits and more world recognition. Hershey Company maintain its dominant position in the industry and where the company is going in the near future. Hershey Company Mission and Objective Vision The vision of The Hershey Company is—Continuing Milton Hershey’s legacy of commitment to consumers, community and children, we provide high-quality Hershey’s products while conducting our business in a socially responsible and environmentally sustainable manner (The Hershey Company, n.d.). Mission Statement The mission of Hershey’s is encapsulated in the following words: Bringing...
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...What is your take on the recent trend of 'million sq.ft. malls' where every second developer wants to make one of the biggest malls in India? Do you support this trend? I support this unprecedented wave of million sq ft mall as with multiple demands on limited time, shoppers carefully choreograph their shopping trips. Mn sq ft size and prominence means that, for good or ill, these malls have a significant impact on a place and its character There is growing acceptance that as long as Big malls are well designed ,made, leased , and suitably located, they can accelerate retail growth in our country In broader perspective Million sq ft malls are signs of growing economic development and prosperity and the desire of the investor and builders to invest in these mega projects -- which means more choice for retailers , shoppers and increasing employment opportunities for catchment population. A large Mall is an indicator that a Industry is moving toward the future. Large malls require plenty of investment, more time and labor to construct , lease and operate but they also have long- and short term advantage . How sustainable will this trend be considering the economic condition of the country? Sustaining a successful retail development in India requires a high level of expertise, proactive management, and innovation. In the near term, the robust consumer demand will mask the lack of experience of these new developers. Over the longer term, however, it will be important...
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...Why commodity markets were started The first recorded instance of futures trading occurred with rice in 17th Century Japan. There is some evidence that there may also have been rice futures traded in China as long as 6,000 years ago. Futures’ trading is a natural outgrowth of the problems of maintaining a year-round supply of seasonal products like agricultural crops. In Japan, merchants stored rice in warehouses for future use. In order to raise cash, warehouse holders sold receipts against the stored rice. These were known as "rice tickets." Eventually, such rice tickets became accepted as a kind of general commercial currency. Rules came into being to standardize the trading in rice tickets. These rules were similar to the current rules of American futures trading. In the United States, futures trading started in the grain markets in the middle of the 19th Century. The Chicago Board of Trade was established in 1848. In the 1870s and 1880s the New York Coffee, Cotton and Produce Exchanges were born. Today there are ten commodity exchanges in the United States. The largest are the Chicago Board of Trade, The Chicago Mercantile Exchange, the New York Mercantile Exchange, the New York Commodity Exchange and the New York Coffee, Sugar and Cocoa Exchange. Worldwide there are major futures trading exchanges in over twenty countries including Canada, England, France, Singapore, Japan, Australia and New Zealand. The products traded range from agricultural staples like Corn and...
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...Starbucks Shared Planet - Our Responsibility MY CUSTOMIZED REPORT CREATED AT WWW.STARBUCKS.COM/SHAREDPLANET ©2009 Starbucks Coffee Company. All rights reserved. https://test.starbucks.com/SHAREDPLANET/customGRPage.aspx (1 of 108)6/1/2010 2:23:02 PM Starbucks Shared Planet - Our Responsibility Mission Statement Our Starbucks Mission To inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time. Here are the principles of how we live that every day Our Coffee It has always been, and will always be, about quality. We’re passionate about ethically sourcing the finest coffee beans, roasting them with great care, and improving the lives of people who grow them. We care deeply about all of this; our work is never done. Our Partners We’re called partners, because it’s not just a job, it’s our passion. Together, we embrace diversity to create a place where each of us can be ourselves. We always treat each other with respect and dignity. And we hold each other to that standard. Our Customers When we are fully engaged, we connect with, laugh with, and uplift the lives of our customers— even if just for a few moments. Sure, it starts with the promise of a perfectly made beverage, but our work goes far beyond that. It’s really about human connection. Our Stores When our customers feel this sense of belonging, our stores become a haven, a break from the worries outside, a place where you can meet with friends. It’s about enjoyment...
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...Name: Marketing Plan for Launching Super Bite Presented To: Prof. Arpita Srivastava Company Name: Kolkata Super Bite Food Ltd. Group Members: Group V SMS ID DB13081 DB13019 DB13020 DB13017 DB13075 DB13008 DB13150 DB13154 DB13105 ROLL NO. 2227323 2227248 2227118 2227117 2227271 2227101 2227227 2227037 2227221 NAME Manoj Kumar Amrendra Kumar Srivastava Kaushik Das Surya Khan Rohit Mandal Anamika Singh Hemani Abhishek Bhattacharya Som Sekhar Mishra Somnath Ganguly CONTENT 1. 2. 3. 4. 5. 6. BUSINESS MISSION STATEMENT MARKET RESEARCH SWOT ANALYSIS COMPETITOR ANALYSIS OBJECTIVES MARKETING STRATEGY TARGET MARKET ENVIRONMENT ANALYSIS 1. MICRO 2. MACRO 7. MARKETING MIX PRODUCT PROMOTION DISTRIBUTION PRICE 8. MARKETING IMPLEMENTATION, EVALUATION, and CONTROL 9. ASSUMPTIONS 10. STORYBOARD MISSION STATEMENT “Committed to Enhancing the Quality of Life With Tasteful yet Healthy Camaraderie” MARKET RESEARCH Today the total production of biscuits in India is estimated to be around 30 lakh MT in 2013, the organized sector accounts for 65% and the unorganized sector accounts for 35% of the total industry volume and the organized sector is valued at above Rs. 8000 crores. While the biscuit industry, is estimated to grow over 15-17% in the next few years. The biscuits per capita consumption in India is 2.0 kg. India is ranked 3rd after US and China amongst the global biscuits producers. The export of biscuits is approximately 17% of the annual...
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...Discussion of the issues (2.5) * Limitation of historical cost accounting Historical cost accounting: assets are recorded at the amounts paid/ received at acquisition Problem: +) inflation, +) increase in asset values are not reflected in financial statements (wearing out of assets, increase in market value) Advantage: +) objective method: documentary evidence to prove the purchase price of an asset, or amounts paid as expense. +) costs can easily be verified. * Alternative method of accounting that have been developed to address the problem: Measurement of the elements of financial statements: measurement options rather than historical cost include: +) replacement cost/ current value: means the amount need to replace an item with an identical item. Ex: XY Co purchased a machine five years ago for $15 000. It is now worn out and needs replacing. An identical machine can be purchased for $20 000. Historical cost is $15 000 Replacement cost is $20 000 +) net realisable value: is the expected price less any costs still to be incurred in getting the item ready for sale and then selling it. Ex: XY Co's machine from the example above can be restored to working order at a cost of $5 000. It can then be sold for $10 000. What is its net realisable value? Net realisable value = $10 000 – $5 000 = $5 000 +) deprival value: is the loss which a business entity would suffer if it were deprived of the use of the asset. Value to the business, or deprival...
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...Channel and Pricing Strategies MKT/571 November 22, 2011 Abstract In week two’s learning team assignment, Team A discussed that Kudler Fine Foods (KFF) planned to bring Swiss chocolates to the Atlanta, Georgia market similar to the one currently in three California markets. This week’s team paper will introduce the product to the international market in the United Kingdom (UK) that include channel and pricing strategies and justify the selection of the market selected. Why the United Kingdom? The entire worth of the chocolate marketplace in Great Britain and the United Kingdom (UK) is presumed to be more than five billion dollars in 2010, as stated by a 2011 article in Marketing Week magazine titled “Appetite for Indulgence Will Sweeten Bitter Pill” (www.marketing.co.uk). Following that, data on the UK chocolate marketplace gets complex, specifically with owners and manufacturers. For instance, the UK natural chocolate marketplace is believed to be the biggest in Europe. Green and Black’s organic chocolate company maintains that they are the Britain’s top organic maker of chocolate. It was created in 1991 and acquired by Cadbury in 2005. Cadbury has been making chocolate since 1824, and was acquired by Kraft foods in the early part of 2010. Nestle, based in Switzerland, and Mars, a private United States company, also lead Great Britain’s massive chocolate marketplace. Other chocolate manufacturers’ products are also accessible...
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...THE UNIVERSITY OF BURDWAN DIRECTORATE OF DISTANCE EDUCATION Term Paper CONSUMER BEHAVIOUR Paper : Consumer Behaviour (MMD-404) on RITABRATA BANERJEE Enrolment No.: DDE/MBA/Jan2010/18 Session: 2010-2012 :: SUPERVISOR :: PROF. DEVMALYA DUTTA THE UNIVERSITY OF BURDWAN CONTENTS 1. Declaration 2. Acknowledgement 3. Introduction 4. Consumption of Chocolate in India 5. Nestle 6. Cadbury DECLARATION RITABRATA BAHERJEE (Signature) ACKNOWLEDGEMENT QUESTION Wafer chocolate has never been a success in India until Kitkat was launched. Cadbury has launched “Crisp” in 70’s and the brand was in reposition in 80’s. “Kitkat” was launched at Rs. 3/- per 8.5 gm the smaller version with a ‘have a break’ campaign. The campaign introduced the brand as a friendly, casual and humorous product. The brand also had a finger format which meant that chocolate could either be shared or stored. “Perks” from Cadbury was launched around same time at Rs.7/- for 35gm bar. The product format was similar to that of “5Stars” bar. The brand came out with the ‘Stomach worship’ campaign. While “Kitkat” was targeted at adult Perks seem to be targeted young people as made out from commercial. Perks formulation is slightly different from that of Kitkat. It had few ingredient other than wafers and also position as a snack food. Recently Cadbury has reposition a number of it’s brands like “Dairy Milk”, “5Stars”, “Gems” and festival offer; as it evident from various print and electronics...
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