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Transcript of Choco Day
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7/27/2019 Choco Day
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Chocday
MARKETING PLAN
OF
Submitted To:-
DR Nidhi bhatia
Date:- 29/08/2013
Submitted by: -
Name - Aditya Chauhan
Enroll no - A1802013031
Course - MBA-IB (2013-2015)
Chocday
Chocday
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I. Executive Summary
Chocday Choc milk is a brand of chocolate bar made by the Chocday plcunit of Kraft Foods and sold in several countries around the world. It first wenton sale in the United Kingdom in 1905.
The Chocday Choc milk smoothie is launched by the Kraft foods Inc whichis the largest confectionery, food, and Beverage Corporation headquarteredin the US. The Kraft foods Inc take over Chocday in 2010 which is the Britishconfectionery company, the industries second-largest globally. This product islaunched globally.
This presentation includes situation and category analysis of the chocolateindustry and the major companies at the forefront.
Chocolate Market in U.S sales is increasing every year. In 2007, totalchocolate sales equaled 141.2, and in year after sales increased to 158.5billion dollars. This substantial gain is expected to repeat, and by year 2013,total sales are going to reach above 180 billion dollars. Without a doubt, thechocolate industry can be expected to be successful for years to come,therefore, Chocdays Choc milk is in a very attractive industry with a strongmarket potential.
Product/Brand Strategy and Supporting Marketing Programs for Choc milkwill be explained in detail. These include new product formulation, improvedpackaging design and extensive sales promotion.
II. Situation Analysis
Category/ Competitor Definition
The chocolate industry is as popular as any in the world with theamount of people that enjoy the delicious taste. There are manycompanies involved in the industry but none are more powerful thanthe four which are known as the "Big Chocolate". Mars, Nestle,Chocoday, and Hershey are the major companies at the forefront ofthe chocolate industry.
One of the big four is Mars Incorporated which does not just dedicatetheir business to chocolate. They devote their expertise over snackfoods, pet care, main meal food, drinks, electronics, and informationtechnology. It is amazing they can compete at the highest level in all ofthese categories. Thanks to the five principles that shape the companythey are able to sustain excellence in the different areas while notlosing an edge to their competitors. The five principles are quality,responsibility, mutuality, efficiency, and freedom. By following these
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principles, Mars Inc. is able to compete in the chocolate industrywithout being solely devoted to the brand.
The Nestle Company has been around since Henri Nestle (a Swisspharmacist) developed baby food for infants in the 1860s that wereunable to breastfeed. Its headquarters are in Vevey, Switzerland and is
the world's biggest food and beverage company. Nestle expanded theirproducts in the 1920s to chocolate and quickly saw immediate rewardswith large profits. World War II damaged the company's profits as itdropped from $20 million in 1938 to $6 million in 1939. Although, thewar allowed the company to introduce a popular beverage into themarket as the armies began obsessing over the Nescafe product. Sincethen, Nestle has made major acquisitions to expand their company asthe trade barriers crumbled and world markets developed into more orless integrated areas. The most important acquisition occurred in 1996obtaining Carnation (an American food giant). Nestle also follows aseries of principles promoting fairness, honesty, and a general concernfor people. They are very concerned about keeping the shareholders
happy and delivering a high value product.
The Hershey Company is the most well known in the United States withtheir headquarters in Hershey, Pennsylvania. It is a leading snack foodcompany and the largest North American manufacturer of qualitychocolate and non-chocolate confectionery products, with revenues ofover $4 billion and more than 13,000 employees worldwide. Milton S.Hershey started the company in 1893 and became the first Americancompany capable of processing milk chocolate. The Hershey Companyis committed to diversity in everything they do ranging from ideas tothe workforce. They are not satisfied with being single minded andonly good at one thing. Diversity is the key to the Hershey Company.
Category Analysis
Factors Analysis
AssessmentMarket
Attractiveness(+/-)
Aggregate MarketCategory size With over $150 billion of retail
sales globally in 2008,confectionery is a large market. Itis in fact the fourth largestsegment in packaged foods aglobal market worth an estimated$1,800 billion.
+
Category growth The chocolate market has grownsteadily over the past five years at
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a rate of 5% (compound annualgrowth rate). Growth in developedmarkets, which represent around60% of the total by value, hasbeen at around 3% p.a. whereas
growth in emerging markets, theremaining 40%, has been strong ataround 10% p.a.
+
Product Life Cycle The chocolate market is in itsMaturity Stage with continuousrevenue growthAnd consumption levels have beenlargely static in recent years.
But despite its maturity, overallretail sales of confectionery are
forecast to grow by 21% in valueat current prices between 1999and 2004. Sugar confectionery isexpected to grow twice as fast aschocolate, albeit from a smallerbase.
+
Seasonality Trade research shows that almost40% of chocolate sales takes placein the first quarter of the year,which itself can be divided intoEaster and Spring occasions such
as Valentine's and Mother's Days.
Overall, the emphasis of sales andmarketing is year-round, with anincreased focus during the holidayseasons
+
Profits Between 2006 and 2010, theglobal confectionery market isforecast to increase by over 16% invalue terms, reaching more thanUSD145bn. Volume sales are
expected to amount to over 17.8million tonnes by 2010
+
CategoryThreat of newentrants/exits
Chocolate is mainly a regionalbusiness where consumers seek aparticular taste in each market. +
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This brings about fragmentation inthe market as well as complexitiesin production.
The chocolate industry has no
barrier to entry and this make thisindustry open to competition andmake it attractive
Economies of scale The chocolate and cocoa industrydoes have a significant economy ofscale entry barrier because largecompanies exist in the industrythat has high production output,which reduces the cost to producechocolate and cocoa.
If a new competitor wanted toenter the market, the companywould have to enter the marketproducing a large quantity at thesame low price as competitors orthe company would have tocompete with a cost disadvantage.
Because economies of scale existin the industry, it deters smallercompetitors from entering into the
market and reduces the threat ofentrants.
+
Productdifferentiation
Product differentiation is anotherentry barrier in the chocolate andcocoa industry. There are manycompetitors in the industry thathave remarkably identifiable brandnames and customer loyalty
All of the companies haveestablished brand names and
customer loyalty, which creates aconsiderable entry barrier for newcompanies. Thus, the newcompany must increase spendingto overcome the reputation andlarge customer base of the existingcompanies.
+
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But since Chocday Choc milk isextremely differentiated, the buyerhas low power to play competitorsagainst each other and reduce thecost.
Capitalrequirements
Large capital requirements createan entry barrier for new entrantsbecause it requires the company tohave a significant source of capitalto get started. The large capitalinvestment entails costs for itemssuch as production equipment,labor, raw materials, and researchand development. In addition tothese costs, a new company wouldneed to spend a large amount of
money on advertising andmarketing to overcome productdifferentiation
+
Switching costs Switching cost create a barrier toentry for new companies enteringthe chocolate and cocoa industry.Switching the supplier ofchocolates raw materials such ascocoa beans, sugar, and milkcreate additional testing andresearch that must be completed
by the company to ensure correctquality, safety and taste.
+
Distribution Chocolate products are soldthrough a wide range of outletswhich vary from market to market.The share of the impulse channel outlets where product is bought onimpulse from display rather thanas part of planned shopping isroughly 40% in developed marketsand is greater in some emerging
markets.
+
Bargaining power ofbuyers
The bargaining power of buyers isincreased by two factors: a numberof large volume buyers and thebuyers relatively low profits fromthe product. However, thebargaining power of buyers is low +
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to moderate because of theindustrys differentiated products,the presence of switching costs,the lack of threat of backwardintegration and the reliance on the
industrys product.
Bargaining power ofsuppliers
the bargaining power is low due tolarge no of supplier +
Pressure fromsubstitutes
Confectionary products are boughteither as snacks or as luxury/giftitems. Therefore, substitutesinclude savory snacks, fresh fruit,alcoholic beverages and other non-food items.
For retailers, it is usually easier tostore confectionaries rather thanmost of their substitutes, forexample, potato chips or freshfruit.
So, although there are a largevariety of items that can serve assubstitutes for Chocodaysproducts, most of them are lesspractical for retailers to store.
Overall, the threat from substitutesis moderate.
-
Category capacity As the business is characterized byautomated, high-volumemanufacturing, fixed costs are highand capacity changes easy toimplement; these act as sparksdriving up rivalry.
-
Current categoryrivalry
There are a large number ofcompanies which participate in themarkets on only a regional or local
basis.Chocday competes againstmultinational, regional andnational companies.
-
EnvironmentalTechnological Innovation such as web marketing
is a major driver of growth in +
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developed markets wherepremium and better-for-youproducts are prevailing themes.
Economic High population growth rates andrising levels of prosperity, has
increased demand for affordableluxuries and treats.
Interest and inflation rates willaffect production, world economicgrowth and current recession willalso affect it.
+
Political/regulatory Confectionery manufacturers mustbe licensed by the program if theywant to purchase sugar at world
market prices for use in productsthat will be exported.
Also, confectionery manufacturerswho make products containing afunctional active ingredient, andclaim that the product provides abenefit, such as the promotion ofdental health, are subject to Foodand Drug AdministrationGuidelines on labeling
+
Social Wellness is a focus formanagement as increasedconsumer attention on diet, healthand fitness is expected to driveabove average growth forwellness products.
-
Company and Competitor Analysis
Product Features Matrix
ProductFeature
Mars Nestle Hershey Chocday
Customization Customized. Customiz Customiz Chocday Choc milk does
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Due todifferentproductofferings fordifferent age
group.
ed ed have a customized productbecause they have a goodbrand element due towhich they are able to salethe product easily in the
market. They haveproduced wowie forchildrens,celebrations 4gifts,and also variety incashew nuts, egg, egglessetc.
Performance 2nd 3rd least highestDurability Very good Very
goodVerygood
Very good- The productisable to survive under thestressful or naturalconditions. But it should be
taken care of refrigerationas milk will get spoiled ifresists for long time in hotatmosphere
Reliability reliable reliable reliable Chocday has reliableproducts. They were sureabout the absence ofmalfunction or fail of theirproduct within a specifiedtime
Style different
styles ofpacking andtaste
different
styles ofpackingandtaste
different
styles ofpackingand taste
different styles of packing
and taste
Objectives
Mars Nestle Hershey ChocdayTo offer the bestvalue to our
consumersmeans we have aconstant drive tocontinuouslyimprove thedesign andoperation of ourquality processes
To be the world'slargest and best
branded foodmanufacturer,whilst ensuringthat the Nestlname issynonymous withproducts of thehighest quality.
To redefine thefuture of snacking
by offeringconsumersproducts thatprovide provenhealth benefits andthe superior tastethey expect fromHershey.
To grow the marfor chocolate
confectionery
To increaseChocday's sharof the snackingsector
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and seek regularindependentassessment toensure ourapproach is at the
leading edge ofindustry practice.
Strategies
Mars Nestle Hershey ChocdayMaintaining aclose watch onits markets all
over the world.
Before theylaunch a newproduct theytalk to theirconsumers firstand find outwhat they thinkabout both theproduct itself
and the namethey areproposing togive it.
Integrated costleadership/differentiation
- Wide range ofproducts (over 20categories: coffee,milk, mineralwater, petfoods, cereals)- Low costoperators
The Hershey Companyestablished itself as acultural icon for brand
innovation.Over the past century,Hersheys has designedand produced anambiance that exudesquality and value for itscustomers. Thisambiance is part of astrategy that haspropelled Hersheys asan industry leader and
has successfullyingrained the Hersheybrand in the publicscollectiveconsciousness asAmericas premierchoice chocolate bar.
Growing themarket byappropriate
pricing stratethat will creatmass marketand to haveofferings inevery categorto widen themarket
Marketing Mix
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Marketing Mix Mars Nestle Hershey ChocdayProduct Mars is the
world's leading
confectionerycompany,following ouracquisition ofthe Wm. WrigleyJr. Company in2008, with five,billion-dollarconfectionerybrands: M&M'S,SNICKERS,
DOVE
, MARS
,EXTRA andORBIT.
Nestlecombine
companyname withproduct namewhilechoosing thebrand namefor Nestle EastWhip. That is,why thecompletename for
Nestle EasyWhip isNestle EasyWhip. Theyuse companyname withproduct namebecauseNestle has avery goodimage in the
minds ofconsumers.
The companymakes such
well-knownchocolate andcandy brandsas Hershey'sKisses, Reese'speanut buttercups, Swizzleslicorice,Mounds, YorkPeppermintPatty, and Kit
Kat (licensedfrom Nestl).Hershey alsomakes grocerygoods such asbakingchocolate, ice-creamtoppings,chocolatesyrup, cocoa
mix, cookies,snack nuts,hard candies,and lollipops.Its products aresold throughoutNorth Americaand exportedoverseas.
ChocolateBar
Made fromreal darkchocolateSimilardesignworldwideContainsmore milkthan anyotherchocolate
bar
Place Retail Outlets
and Wholesalers
They adopted
distributivechannel andso it wasavailable onlyon stores andsupermarkets.
Hershey
distributes itsproductsthrough avariety ofdistributionnetworks.
Retail outlets
CDM are s
directly towhole selland retailDistributioNetworkencompass 2100Distributio
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like: largegrocery chains,large drugstorechainsconvenience
ores,wholesalers,small retailoutlets, andbrokers
and 450,0retailers.
Price affordable Nestle chargea single priceof RS. Nestledid relativelylow pricing as
compare toforeign brandsavailable inthe localmarket.Nestlefocused on A class and didlow pricing,becauseNestle want to
attract theexistingcustomers ofimportedbrand andpotentialcustomerswith the helpof their lowpricing.
In general,chocolatecustomers whohave moresubstitutes
available tothem, or whodo not have asgreat a needfor the product,will be moresensitive (i.e.,elastic) to pricemakingHersheysstrategy a one-
price policy.
brands araffordableand high-qualityindulgenc
Promotion In spite of itsmarket sharesetbacks, Mars,Incorporatedwas still aseriousmarketing forcearound the
The salesstrategywhich Nestleadopted isAvailability &Visibility. Toincrease salesand gain
The companyhas concentratedon producing awide variety ofchocolates tosuit thecustomers' taste.Hershey'sstrategy
The mediamix for thcampaigncomprisesTV, outdoInternet aradio.Use of
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world. At thebeginning of themillennium, thecompany hadfacilities in more
than 60countries andsold products inmore than 150.It was spending$850 million ayear advertisingbrands such asM & M's candies,Snickers candybars, Uncle
Ben's rice, andPedigree dogfood.
profit thecompany hasto provideproper supplyof product in
the market.
Use ofextensivepromotionaltools
encompassesextension of itsproduct line thatprovides thecompany adistinct
advantage overits competitorslike Mars andNestle. Inaddition,Hershey's focuson acquisitions ofwell-knownbrands,discontinuingweak productlines, apart fromappropriatemarketing of itsproducts
emotionalappeals inadvertisin
Differential Competitor Analysis Matrix
**Basis for Analysis is the position of Companies in EmergingMarket
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CapabilitiesMars Nestle Hershey Chocday
Ability to Conceiveand Design
8 8 8 9
Ability to Produce 9 8 7 10Ability to Market 9 8 7 10Ability to Finance 9 8 7 10Ability to Manage 9 9 9 9
Total Rating 8.8 8.2 7.6 9.6
Prediction of Competitors Future Strategies
Mars Nestle Hershey ChocdayProviding new flavorsand sizes,
Going globally active
Cut investmentbudgets,overheads, frill
Double adspending
Investing in
Minimizing addingvariance
Maximizing the
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and environmentfriendly,
Targeting people whoare health conscious.
Getting moreadvertisement.
Maximizingexisting assets,capacity,distribution
Target internalgrowth rate
Improve supplychain,productivity,optimize planning
consumermarketing,greater retailcoverage, andbroadening its
range ofpremiumbrands.
customerrelationship
Getting into morecustomer loyalty
Customer Analysis
Mars Nestle Hershey ChocdayWho are thecustomers?
Teens.Because of itsreal sweetnessteens really dolove thischocolate.
Young & Urban Classes A, B,and C
Customers oChocday hachanged fromkids to adultssince chocolais aconfectionerydessert enjoyby everyone.
What do theybuy and howdo they useit?
For snacks andfor dessert
Chocolates arewhat theylove. As asnacks.Sometimescan be gift.
A lot of theirchocolateproducts arein demandactually.This can be
used assnacks, or andenjoyment
Purchase as gift.As a snack &dessert.
Where dothey buy?
At the malls,wherein thereare a lot ofvariance tochoose, they
Preferably atthe leadingsupermarket,where a lot ofpeople can
Retail outletslike grocerychains suchlargedrugstore
Leadingsupermarketand big chaistores andaimed at as
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may be foundin an eyeleveled shelvesto a greatextent so that
customerswont miss it.
choose from alot of theirvarianceavailable.Some people
around sellingsmall amountof ourchocolates,
chainsconveniencestores,wholesalers,small retail
outlets, andbrokers whosell productsto grocerystores.
manypromotions apossible usinbig boxes ofchocolates
stored near tcheckout areto attractimpulsepurchasing.Secondly, thehave also usthe concept oeye levelshelves to agreat extent
that theconsumersdont miss it.
When do theybuy?
Impulse ImpulseSeason
When groceryshopping
impulseseason
How do theychoose?
Fallowedquality,tradition offavorites.
Influenced bypeers, a word-of-mouth.
The choice ofhighchocolatecontent/standard qualitylevel
influenced byflavor/tastefollowed byquality, branand image
Why theyprefer aproduct
Quality andthe image ofthis product.
The taste, thequality, andthe price of theproduct.
Theavailability ofthe product,in goodstores.
It is the homof hugelypopular bran
How theyrespond tomarketingprograms
Feedback Activelyparticipating inany event thatwould helpthem to gainmore
knowledge forthe products
Accuratelyand straightto the pointfeedbacks
Brand Loyalt
Will they buyit again?
Whenever theproduct isavailable.
Any time,because it ischeaper thanothers. Alwaysavailable.
If the parentsare off tosupermarketand stores
Because of itavailability.They canactuallypurchase our
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product anytime they wa
Long-termvalue ofcustomers
Giving themsouvenirs,promos
Call to actionmovement.Giving hotlines
Being visiblethroughinternet
website.
Offering thecustomers thhotline numb
for anycomments,suggestions,etc,
Segmentation Sweet lovers Youngprofessionals,teens,
Middle aged,teens
Teens, lovessweet
Planning Assumptions
Market Potential
Chocolate Market in U.S sales is increasing every year. In 2007, totalchocolate sales equaled 141.2, and in year after sales increased to158.5 billion dollars. This substantial gain is expected to repeat, and byyear 2013, total sales are going to reach above 180 billion dollars.Without a doubt, the chocolate industry can be expected to besuccessful for years to come.
Category and product sales forecast
U.S. Market for Chocolate
With 2006 sales estimated at close to $16 billion through all channels,chocolate is forecast to grow to $18 billion by 2011, according to theU.S. Market for Chocolate, a fully updated Packaged Facts report.Strong consumer interest in the reported health benefits of darkchocolate and a general trend towards product premiumization(including organic and fair trade products) are offsetting steadydeclines in other categories, such as sugar-free and novelty products.For example, the market share for premium chocolate grew from 13%of the total market in 2002 to nearly 17% in 2006.
Chocday beat sales forecasts and raised targets in a bumper third-quarter trading report, pushing up its shares and pressuring suitor
Kraft to come up with a bigger bid to win its takeover battle.
Sales forecast approach used:
Top-down approach
Uses Quantitative Technique of Forecasting
3-year Moving Average Method is implemented
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Year divided into 12 periods
Seasonality also taken into account
Major Emphasis on last years data
Statistical Tools being used
SAP integration
Promotional Offers according to Sales Forecast
Other assumptionsIt is assumed that Wholesale chocolates and retail store sales shouldstay strong despite increasing new players in the market.
III. OBJECTIVES
Corporate objectives:
Ensure profitable growth in the market.
Grow shareholder value over the long term.
Marketing objectives:
Increase market share of Chocday using marketing strategies offeringthe market an assortment of innovative confectionery products.
Increase sales profit of Chocoday. Sustain market share over the year through product innovations in
product development, packaging.
Program marketing mix
Product generate new flavors and improvements to existingChocday products.
Place place may vary depending on the Chocday product sold.Chocday products would be place on vending machines, retail stores(sari-sari) and in convenient stores located near the counter toencourage impulse buying of the product.
Distributions Chocday products will be sold directly to wholesalersand retailers &
Promotions - tie ups with non-traditional sellers, sales promotion useof coupons. Contest, sponsorship of events to increase&/maintainproduct awareness. Use of emotional appeal in advertising
Price price cut off, or no increase in prices but products weight wouldbe reduced.
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IV. Product/Brand Strategies
Customer targets The prospective customers of Chocday Chocmilk ranges from 5-60y/o. Since Chocday has a line of products suited
for every member of the family. We will strengthen relationship ofbrand n current consumers life.
Competitor targets - Chocodays target competitors are Hershey,Nestle and Ferrero. What we will do is to sell Chocday at affordableprices and put it on a convenient position, develop a range of newproducts for every need. (Occasional gift, snacks, after dinner dessert)
Product features - In order to attain the objectives of Chocday wehave come up of different strategies and their main focus is on productdevelopment, innovation, focus on existing products and packaging.
C. I.Market penetrationUse market penetration as a strategy to achieve growth through theuse of existing products of Chocday in the current market. Come upwith promotions that would enhance customer loyalty and productawareness.
C. II. Product development and diversificationGenerate new flavors of Chocday such as coffee, peppermint, whitechocolate and a non fat Chocday since most prospective consumerstoday are very significant with diet. A non-fat Chocday with the samepleasurable taste but has less fat and calories. Other variations includeChocday with a popping candy filling, energy bars, cereals (Choc
flakes) Chocday lollipops, Ice creams, Chocolate syrups, candies andbaked goods.
C. III. PackagingImprove packaging design by adding graphics or caricatures to theoriginal label & making a re-sealable pack and reducing the cost ofpackaging by using cheaper resources and materials that are safe forthe environment. Package should protect the product fromdeteriorating, efficient and more importantly it should attract thecustomers.
Core strategy
Value propositionChocday perceived as a brand that is meant for everybodydisregarding age/class. Affordable and has contemporary taste,with various selections to choose from.
Product positioning
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Chocday positioned as an all time favorite chocolate. Anirresistible snack, after dinner dessert anything that can be sharedand offered to loved ones.
V. Supporting Marketing Programs
A. Integrated marketing communications plan
To promote the new look of Choc Milk
Campaign Theme: The look of happiness
To objective of this campaign is to promote the new look of Choc Milk,Chocday should implement comprehensive campaign. This involved a highlycoordinated set of promotional activities across various communications
channel each activity bearing the same message which is the look ofhappiness. This approach ensures that consumers receive a clear andconsistent message about Chocday.
The look of happiness campaign includes advertisements showing the newpackaging of Chocday, free samples and contests.
The product would be differentiated as the chocolate with a happy packaging
The result expected is sales to exceed by 10%
B. Advertising
Creative Execution
For television advertisementsOne advertisement to target men, one for women, one for the uppertier of the target market, and one for the lower tier with humor andemotional appeal.
For print advertisements Same target market customization concept as above
Placement in designated magazines and newspapers
Out of home is included (billboards and transit locations)
C. Promotion
Objectives
To create brand loyalty
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To encourage repeat and multiple purchases
To promote sales and increase market share
Strategies
To position Choc milk as an increasingly visible brand within themarket
To gain trust and familiarity from the target market throughcontests and free samples
D. Sales
In order to maintain the sales of Chocday, sales promotion should beimplemented to generate growthSales Promotion Execution
Tactics
Broadcast Television, Radio
Print Newspapers
Packaging- add graphics
In Store Posters, Flyers, Stall
F. Price
Price cut off, or no increase in prices but products weight would bereduced.
G.Channels
Chocday already uses the following distribution channels:
Point of sale display (racks and stands)
Retail outlets : supermarkets and convenience stores
We recommend the use of small vending machines exclusively forChocday products that will be placed in different public areas such as:school canteens, airports, hospital, malls, etc.
Vending machine In-store stalls
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H. Customer management activities
Consumers are having a difficulty to capture and classify thats why thestrong relationship to the consumer is very important. Chocday also usesites like Facebook, Twitter, Multiply and Friendster to get closer with theircustomers and collect feedback.
H. Website
Chocday has available website for consumer's here in the Philippinesconsumers can freely navigate in their website and get information about theproducts.
http://www.kraftfoodscompany.comhttp://www.Chocday.com.ph
The existing flash websites of Chocday are already functional (because of itsown search engines and extensive information available) and is tremendouslyattractive (because of the heavy use of graphics and animations), therefore,no more improvements needed.
I. Marketing research
Market research determined the knowledge, attitude and opinions ofconsumers in our country.
We recommend Chocday to continue investing in consumer research thathelps build knowledge around health concerns, including obesity. And to helpimprove understanding of concerns, research within both inside and outsidethe business will be applied.
J. Partnerships/joint ventures
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By March 2001 - Chocday Confectionery Phils. Partnered with Mc KenzieDistribution, thereby providing Chocday with much wider distribution cove inthe Philippines.
May 2003 Adams Philippines, a well known Candy Manufacturing Companymerged with Chocday.
Recommendations are to continue merging with other manufacturingcompanies to further expand the product reach.
Financial Documents
ADVERTISEMENT:
Television
30 seconds airing duringnoontime shows(6months) 8,635,500
30 seconds airing duringprimetime shows (6 months) 15,329,000
BillboardsSLEX Southbound (4 months) 346,000EDSA Northbound (3 months) 520,000
Tarpaulin100 stores in metro manila
(2x3 sq ft--x Php 25 x 100) 14000
Magazines Full page, FC
Candy 400,000Cosmopolitan 500,000Seventeen 430,000
Total: 26,174,500
SALES PROMOTION 1,850,000
EVENTS AND SPONSORSHIPS 1,450,000
TOTAL ADVERTISING EXPENSES 29,474,500
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FORECASTED BUDGET
Promotional Expense 29,474,500
Advertising 26,174,500Sales Promotions 1,850,000Events and Sponsorship 1,450,000Agency Fee and Development Costs 8,787,600
TOTAL EXPENDITURES 38,262,100
B. Pro Forma Statements
In Millions of GBP (except for pershare items)
52 weeks ending2009-12-31
Revenue 5,975.00Other Revenue, Total -
Total Revenue 5,975.00Cost of Revenue, Total 3,210.00
Gross Profit 2,765.00Selling/General/Admin. Expenses, Total 2,001.00
Research & Development -Depreciation/Amortization 4.00
Interest Expense(Income) - Net Operating -Unusual Expense (Income) 256.00
Other Operating Expenses, Total -
Total Operating Expense 5,468.00
Operating Income 507.00Interest Income(Expense), Net Non-
Operating -
Gain (Loss) on Sale of Assets -Other, Net -21.00
Income Before Tax 378.00
Income After Tax 275.00Minority Interest -1.00
Equity In Affiliates -
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Net Income Before Extra. Items 274.00Accounting Change -
Discontinued Operations -Extraordinary Item -
Net Income 509.00
Preferred Dividends -Income Available to Common Excl.
Extra Items274.00
Income Available to Common Incl.Extra Items
509.00
Basic Weighted Average Shares -Basic EPS Excluding Extraordinary
Items-
Basic EPS Including ExtraordinaryItems
-
Dilution Adjustment -Diluted Weighted Average Shares 1,364.00
Diluted EPS Excluding Extraordinary Items 0.20
Diluted EPS Including ExtraordinaryItems
-
Dividends per Share - Common StockPrimary Issue
0.16
Gross Dividends - Common Stock -Net Income after Stock Based Comp.
Expense-
Basic EPS after Stock Based Comp.Expense
-
Diluted EPS after Stock Based Comp.
Expense -Depreciation, Supplemental -
Total Special Items -Normalized Income Before Taxes -
Effect of Special Items on Income Taxes -Income Taxes Ex. Impact of Special Items -
Normalized Income After Taxes -Normalized Income Avail to Common -
Basic Normalized EPS -Diluted Normalized EPS 0.34
MONITORS AND CONTROLS
Marketing Metrics
External- to measure the customer satisfaction and the responserates, customers loyalty, and the quantity of the products being
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purchase and the time basis of ones customer in buying theproduct. Some may be form in survey.
Internal-quantification of the market share and marketpenetration.
Secondary data:
Internal
Sales recordStock recordAccounting recordDistribution dateSales persons opinion
External
Government statisticsSpecialist business organizationsCustomer database
Primary data
Face to faceObservationExperimentResearch
Contingency Plan
If we receive negative feedback from our new developed product,we could make it more affordable or improve flavor.
If new developed products will not be successful globally, we willfirst focus on positioning one country at a time.
If we receive negative feedback from our market with extensive
health concerns, we will make a strategy that will promotewellness.