UK chocolate market is definitely the 2nd greatest market among the EU after Germany, with an average ingestion between 4kg to 10kg per mind. Not merely UK is among best chocolates consumers in EU but also holds highest share on sales of confectionery market since 2003. Average annual development rates in previous few years in delicious chocolate market show a growing trend in quantity sales attaining Ј4. 83bn, and expected to are as long as 684, 000 tons till end of 2010, growing at rate of 2. 4%.
The changing consumer purchase habits towards how products are stated in terms with their effect on environment and health are considered factors on which future market expansion of delicious chocolate will be depending on. For this reason the confectionery and delicious chocolate market has began struggling due to the lobby created by healthy eating, health conscious community. "The organic chocolate market" is thus becoming the recent trend for consumers as a result of increasing knowing of the economical and environmental concerns surrounding cocoa production. These changes are well watched by market players whose response towards these changes is obvious from going into of organic companies into chocolates market and big classic manufacturers' ventures in the control of organic and natural chocolates. Yet, although organic chocolate markets expected to expand at exceptional growth rates, the sector continues to be niche market when compared to the conventional and possess hardly any share in the full total chocolate market. Furthermore, with the press on disposable incomes, an increased focus on price, the 'buy one get one free offers have been changed with 'special price', 'multibuy' and 'round-pound' type bargains.
Continuous improvements in rival industries such as biscuits and cakes etc are offering tough troubles for chocolates market. The perspective for the market still remains positive, but chocolate brands need strong effort in terms of providing customers with quality value and healthy products.
The major players of Chocolate in UK market fighting with each other neck to neck in the struggle of market share are
Cadbury & Kraft, blended market share of around 40%, after Cadbury's takeover by Kraft.
Mars, market talk about of 15% and turnover greater than 9. 6 billion pounds
Nestle Kitkat, market show of 20. 4%
Green & Blacks, market share of around 5 % in regular plus more than 90% talk about in organic chocolates market
For the info about the current trends in UK chocolate market, it is evident that the target of communities are actually towards healthy eating for which they now are conscious as of what elements are their products composed of. Thus if the company desires to enter chocolates market in such demanding developments where customers have full selection of variety to choose from the safest path to choose will be organic and natural chocolate market. This might be safer for the reason that sense that as styles of individuals are moving from only fun and pleasure food towards healthy safe food, soon it is expected that the conventional market leaders will also be converting existing brands to organic and natural and natural ingredients used products.
Market Segmentation, Targeting and Positioning
For this section statistic data about consumer frame of mind towards chocolate in UK by age group, sex, social grade etc is necessary. This data is available in Keynote market research report to which there is no gain access to from here. However, I've tried my better to broadly describe the target segment but nonetheless as per requirement of the instructor, detailed data figures will be required.
The organic chocolates market is known as amidst those popular opportunities which were produced by changing consumer developments and liking towards more healthy and environmentally safer food items, specifically the concentrate on use of healthier and environmentally safer materials.
Consumers traveling growth
According to a market research demand for organic food items including organic chocolates is spread across the interpersonal spectrum, including workers, pensioners, students and people on benefits, and makes up about almost 33% of their total spending. For the purpose of our organic chocolate segment a significant portion of worker and student class will be our main target market segment.
Descriptive Data
For Organic delicious chocolate market segment, as a new entrant our target market would include working school and students.
The total populace of UK is divided into following age group segments:
For our organic chocolate segment, we'd target population which range from yr 10 to 44. This might take into account almost 48% of the full total population of UK, obviously the whole 48% will not be part of our own marketplace as organic delicious chocolate is a niche of conventional chocolates market, our working and university student school will be covered in these generation description. In order an estimate organic and natural chocolate demand should be expected from 40% of the 48% goal population.
Socio-demographic Description
The segment aimed as target segment will be people residing in North Western world of England. This is so as our company is initially launching our product in test market covering NW of Great britain only. Goal customers will maintain age group of calendar year 10 to approximately 44. Children below 10 are essentially not part of our target segment since it requires recognition to choose healthy foods that reason children above calendar year 10 are preferred. The age limit determined till 44 is because above this generation many people are suffering from heart and diabetic deceases thus for these people at a later level diet or low sugars items shall be introduced.
Target section will be constituting of students and working school.
Psychographic/behavioral Description
Our chosen segment is people who have health conscious attitudes and choice towards safe and balanced diet. This section has recognition about environmental issues also and therefore do not have wild fun loving lifestyle but a graceful lifestyle with healthy and gratifying eating patterns.
Positioning
The current segmentation in UK chocolates market described because of any perceptual map is shown below:
Thus we will be setting our product in high quality depicting its healthy making nut very much high price. It'll be positioned similar to milk tray shown above in physique but little higher in quality.
Product Standards and Branding Strategy
There already are few very popular organic delicious chocolate brands in UK including Green and Blacks which retains a very significant show in organic delicious chocolate market. Thus the benefits of our organic chocolates brand needs some cutting edge or competitive advantage over others. We will present this difference with providing our organic and natural chocolate lovers a variety of combinations and natural healthy tastes in our delicious chocolate products.
First of most, our brand choco naturals will be grouped in three amounts targeting three set of places with different consumption style.
Organic delicious chocolate bars
After meal mints items
Organic chocolate gift idea boxes
The basic structure and ingredients of most three variety in our brand will be almost same, i. e.
Dark Chocolate - dark bitter delicious chocolate made from 70% organic cocoa solids, dark brown cane sweets, vanilla and soya lecithin
Semisweet Delicious chocolate- organic sugar, organic chocolate, organic and natural cocoa butter, organic and natural flavors, milk body fat and soya lecithin
White Chocolates- no cocoa solids, but organic and natural cocoa butter, sugars, vanilla and milk
On this basic organic composition of your brand the leading edge would be its natural and healthy flavoring and combo combining of white and dark chocolates. The traditional choco bars available in market have presented all kind of variety including nuts, wafers, biscuits etc, but as our brand is providing its customers with chocolate that is good for health also we will improve their flavor and cravings by mixing berries chunks inside our brands and good cholesterol nut products i. e. almonds and walnuts. Additionally providing combo mixing of dark and white chocolates will deliver delicious chocolate lovers tastes of two in a single and with added advantage of health benefits associated with chocolates.
Our products will be offered in pursuing sizes and weights
Organic delicious chocolate bars
Initially as we are introducing our brand in test market we will only supply pubs in 2 sizes i. e. 50g pub and 100g bar
After dinner mint items
These will be offered in spherical balls 100 g each to popular hotels and restaurants to provide their customers as after evening meal items and you will be provided with berry chunks and combo variety described above
Organic chocolate gift items
For our test market this may also be provided in two sizes i. e. 1 lb and 1 Ѕ lb box packing
As the area of expertise of this make of chocolate is based on it being healthier, near to nature and for individuals who have high concern for health insurance and environment, we will have high concentrate of packaging choco naturals_ chocolates in an environmentally friendly rappers which can be biodegradable packaging and also have zero waste components. Our three line of products will be properly labeled describing components and everything details regarding calories, excess fat etc. As the brand has high insistence on being organic and natural, the design of packaging of chocolates will show the making of delicious chocolate from most natural and organic materials through its color and style developing a warm connection with those who love being near to characteristics, adding value for the coffee lover.
Developing Brand Personality
As an introductory brand it is one of the main responsibilities of us to explain our brand and portraying its talents which meet all benchmarks set by the marketplace. Included in these are the consistency in style and quality sent etc. When producing brand identity regular delivery of the value must match offers made to target customers. The logo, mark, theme collection, and "look and feel" as part of choco natural's individuality will generate a identification in the thoughts of our target customers and will make them bear in mind choco naturals. As choco naturals_ chocolates are produced from fully organic ingredients with an extra blend of natural fruits chunks that enhance the product benefits, the custom logo will depict such closeness to character, health and tastes. Similarly the mark and theme brand will deliver same identification of the merchandise.
Creating brand id commences with having a clear notion of target customers. When a customer decides which brand they choose to buy they may have many considerations at heart including its price, quality, benefits however the final thing which eventually wins is the brands identity created in your brain of the client. This if carefully developed, as inside our case that choco naturals chocolates shows the traits and tastes of its target customers can make choco naturals delicious chocolate win over other traditional brands. choco naturals chocolates will be developed as a advanced brand which is targeted as providing tastes with health.
Pricing Strategy and Price
Strategy to decide:
Of the countless costing strategies, for choco naturals chocolates, four strategies are of value. These are
Competition established pricing
Market focused pricing
Premium pricing
Psychological pricing
We will chose a combo of market oriented and psychological pricing. Premium pricing could also be opted but as our marketplace also includes students and worker class, it could create a luxury brand image which might results the closeness we want our brand to develop with concentrate on customers. In the same way competition based costing method could have also been a very safe strategy but for having an added value, we choose market focused pricing which is based on analysis and research of target customers and on those prices if the effect of psychological pricing is also added it is expected to create more value for our products.
Pricing goals:
Purpose of choosing this combo of pricing strategy is to provide such a price to the clients which is not too high to loose connection from goal customers and not too low that can portray the brand as a low standard brand. The objective is to set such a price that can portray our concentrate on customers the substance of the organic image our brand portrays i. e. natural. In conditions of sales, this plan for costs is expected to create a wholesome market show in organic chocolates market at a good speed and continuous increase in level of sales and earnings. The positioning of this brand will also support this charges strategy.
Recommended Price:
Organic Chocolates Bar
100g -- Ј2. 95
50g -- Ј 1. 95
After meal mints - Load up of 4 round balls 100g each for Ј6. 95
Organic chocolate Item containers ( combo mixture of dark white and multi flavored fruit chunks)
1 lb -- Ј19. 95
1 Ѕ lb -- Ј 29. 95
Retail Distribution Strategy
As our company is introducing 3 categories in organic and natural delicious chocolate brand, the distribution will to 3 different type of outlets. These are:
Organic Chocolate pubs -- Large ultra stores and espresso and tea cafes
After supper mints -- Three to five star Hotels
Organic Chocolate present containers -- Large ultra stores
As initially our company is presenting our brand in test market, choco naturals chocolate will be accessible to get, cafes and hotels in north west of Great britain mainly. The super stores that may sale our products include
Sainbury's very market Ltd, having 5 outlets in NEW
Tesco, having 9 retailers in NWE
Woo Sand excellent market, having 1 wall socket in NWE
ASDA Stores Ltd, having 6 stores in NWE
WM Morrison supermarkets, having 6 stores in NWE
The selective Hotels in which we would primarily supply our after meal mints will be some three to five star hotels with good reputations so that connection in our brand with such names can deliver positive impression of our brand to the section of our marketplace browsing those hotels. These include:
Holiday Inn
Hard Days Evening Hotel
Beech Mount Hotel
Feathers Hotel
Trout Beck Inn Hotel
Park House Hotel
We will be opting selective circulation strategy to make our products available to our target market. The product will never be massively available even as we initially want to gain access to response from test market and in addition the sophistication of our product could easily get sidetracked if it gets available in each and every store. Thus at start selective supermarkets, hotels and cafes will offer you our products to customers so that the brand may create its image by making use of the image of the places they are available at. Our products will never be available at web based distribution options as it at first requires to develop a position in local market and then be available at global level.
Integrated MARKETING AND SALES COMMUNICATIONS Strategy
The integrated online marketing strategy we have designed for our product is striking the market segment in North Western in selective ways. We are not going for the guerilla marketing tactics because it's high quality product and market is not very wide. We must introduce the merchandise and usually the products in the early stages with their Product life circuit need careful practices for marketing and advertising because income are lower therefore selective marketing should be utilized instead of using the brief gun approach.
The main objective behind our advertising campaign is to add our product and its benefits along with creating brand individuality. We will concentrate our attention in the original period of the campaign to create recognition about our product in the native market (North Western world of England). On this period we will notify our customers about the worthiness we will deliver.
In the second phase of your advertising campaign we will highlight on campaign and advertisement of our own brand. First period would help us to identify again the interested portion so in the next stage we will scrutinize and promote to our potential valuable customers.
For promoting our brand we are not using all the various tools of built in marketing communication strategy which can be advertising, sales special offers, immediate marketing, website and public relations). We are going to only use advertising, direct marketing and we will create our website as well.
For advertising we will choose the print and electric media for print out media we will only advertise in best selling food journals and news-letters of Northwest. For electric press we make a 45sec. advert. We will use celebrity endorsement in our advertisement. The superstar we use would be environmentalist and mind of NGOs promoting aspect friendly products. We will air our ads on food centered local stations for the center aged men and women and music and music established and entertainment channels for youngsters slot machines would be best time. We would go for cooperative advertisement.
We won't go for sales marketing promotions because it's a high quality product and sales promotions would provide a negative impact.
For direct offering we will seek the services of a team which would convince the clients. Our customers for after dinner mints would be owners of famous cafes and restaurants. In primary days we will use mall intercepts in large excellent stores and departmental stores offering organic and natural products.
Public relations is mainly done for service sector so that it won't make any significant impact here however in later stages when there would be much larger sales quantity then we will present PR for our high quality customers. In later stages we will also carry out workshops for creating knowing of organic food but in initial phase income are too low.
We would create a site for promotion however, not for sale because customers are very conscious in striving a fresh product and for a product like chocolate it won't work at all. In maturation stage when customer response would be good we may go for online working.
So inside our IMC our concentration in print advertising would be on delicious chocolate bars, in digital media it would be more on present items. And in direct selling we'd promote after evening meal mints and gift items however the whole advertising campaign would promote the brand.
