...2015 Arjun K (PGP15069) Arun Shashi (PGP1570) Aditya Narvekar (PGP15093) Saravana Raja Kumar T (PGP15107) Sumit Chaurasia (PGP15115) Arjun K (PGP15069) Arun Shashi (PGP1570) Aditya Narvekar (PGP15093) Saravana Raja Kumar T (PGP15107) Sumit Chaurasia (PGP15115) Contents Introduction: 1 About Cocoa and the Cocoa Products industry: 1 Cocoa Prices Jump 30 Percent in 18 Months 1 Forecast of Chocolates: 2 Demand for Cocoa in the world: 2 Pricing in chocolates 5 Demand and Supply function 6 SUPPLY 10 Introduction: When I was a kid, I enjoyed the dairy milk chocolate for 5 rs. It was perfect and heart-warming. Now after 15 years dairy milk offers a product which is almost half in quantity of the product back then. This generated a curiosity in us and we started to find answers based on the microeconomic perspective. We zeroed on this and found that the most crucial factor in the production of chocolate is cocoa. In this report we have analysed the demand and supply of cocoa and how it affects the price of chocolate. Our research findings and data are collected from various national and international reports. About Cocoa and the Cocoa Products industry: Cocoa is a critical cash crop that is produced in a few specific regions of the world. Specific climatic conditions are necessary for the crop to grow. Travelling along a global supply chain, cocoa beans go through a complex production process that consists of the farmers, buyers, shipping...
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...to demerger. In 2008, the beverage site of the business (Schweppes) became Dr Pepper Snapple Group and confectionery (Cadbury) was bought by Kraft Foods the very next year. Cadbury Schweppes: Capturing Confectionery Introduction The purpose of this document is to analyze the existence of Cadbury Schweppes. This paper will describe the history and background of the company. In addition, the document will identify and discuss the global initiatives of Cadbury Schweppes. And finally, the document will discuss the recommendations for the corporation. History and Background Cadbury Schweppes began its journey in 1969 with the merger of a beverage company started by Jacob Schweppe in 1783 in Geneva, Switzerland and a chocolate business started by John Cadbury in Birmingham, U.K. in 1824 (Hill and Jones, 2010, p. C311). Cadbury Schweppes was the world’s oldest profitable family owned business till the early 2000’s. With origins stretching back over 200 years, Cadbury Schweppes became the international beverage and confectionery company...
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...CADBURY-GLOBAL FACE As we have seen Cadbury is a leading global confectionery company with an outstanding portfolio of chocolate, gum and candy brands. Cadbury employs around 50,000 people and have direct operations in over 60 countries, selling their products in almost every country around the world. Cadbury’s Global Journey In 1824 John Cadbury opened his shop on Birmingham's exclusive Bull Street and served tea, coffee, and, fatefully, cocoa and drinking chocolate. In 1854 the Cadburys open a London office and receive a Royal Warrant as manufacturers of chocolate and cocoa to Queen Victoria. In 1921 cadbury opened its first overseas factory in Tasmania, Australia. In 1969 Cadbury merged with Schweppes (an Australian based drink company). In 2003, the humble Birmingham chocolate becomes the world's number one confectionery company with the acquisition of US chewing gum giant Adams. In 2008, Cadbury launched the Cadbury Cocoa Partnership. £45 million was put aside to put into cocoa farms in Ghana, India, Indonesia and the Caribbean over a decade. In 2010, Cadbury was bought by American food behemoth Kraft Foods in an £11.5bn deal. In 2012, a new global research and devlopment centre opened in Bourneville as part of a £17 million investment in R&D in the UK. CADBURY WORLDWIDE Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in the world. Cadbury is the largest confectionary company in the world and has its presence in Beverages in Australia...
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...The trends that could transform the chocolate industry kpmg.com T he outlook for the world’s chocolate industry is brighter than it has been for eight years. Euromonitor predicts the industry will enjoy a 6% rise in revenues in 2014, delivering record global revenues of US$117bn. This robust performance is driven by a 2.1% increase in volume, reflecting growing appetite for chocolate in emerging markets. The challenge for the industry’s major players is how to make best use of this boom to profitably grow their volumes faster than the markets, achieve sustainable improvements in core operating margins and make the right investments – be they in capacity, acquisitions, the supply chain, marketing or R&D – to seize the significant opportunities ahead. The single biggest factor improving the industry’s performance is the 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...
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...unhealthy foods. This is done by improving the portion control even though it increases the sales volumes per kilo, but does not affect the profit margins adversely. Even though the confectionary may tend to be termed as a luxury food item, the sales value appears to be recovering steadily from adversity. In the quest of offering premium products which are more profitable than increasing the sales volumes, the confectionary makers are offering what is seen as low value confectionary. These new products include pro-biotic and antioxidant chocolate. However, the current depression is expected to limit the growth of confectionary, because it is seen as a non-essential food item. Nevertheless, chocolate appears to be picking up in the market and was expected to grow by 4 per cent in 2009. Hence due to the recent depression, the chocolate consumers are rewarding themselves in these difficult times with a treat. The production of smaller but luxury chocolate food items has excelled because both health and economic concerns are addressed as well as retaining the inability to fulfill the gratification of whims and desires. The health concerns might...
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...de infraestructura.: La diferencia cultural es un barrera para ti, puede que no se adapten a tu producto y afecte el proceso de decisión de compra. Lectura: globalazing the vale proposition: en China oreo tuvo que cambiar su formula. Debido a que era muy dulce, ya tenían como 8 años en el mercado pero no despega sin embargo la categoría de galletas estaba creciendo y no entendían porque. Posicionamiento - Percepcion deseado en la marca en la mente de los consumidores - Como estoy siendo percibido ya que implementaste tu estrategia. - Puede ser consistente (que tengamos el mismo en el local que en los internacionales) o tener cambios en la estrategia de internacionalización. (ej. Zara, es diferente posicionado aquí y en España.) - país de origen es un fuerte influenciador del posicionamiento real. (el de afuera) Elementos de la marca Video de CORONA. How to build a bran like Corona quieres saber que es “the real thing” de el lugar de origen. Pero si el lugar esta muy lejos no vas a querer pagar tanto por el. Chocolates el rey Venezuela produce el mejor cacao. Pero cuando preguntas quien es el que lo hace mejor dicen Switzerland o Belgium porque así lo comunican ellos. La gente no sabe de donde viene el mejor chocolate, esa compañía no sabe...
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...confectionery company owned by Mondelēz International Inc. and is the industry's second-largest globally after Mars, Incorporated.[3] With its headquarters in Uxbridge, London, England, the company operates in more than 50 countries worldwide. The company was known as Cadbury Schweppes plc from 1969–2008 until its demerger, in which its global confectionery business was separated from its US beverage unit (now called "Dr Pepper Snapple Group").[4] It was also a constant constituent of the FTSE 100 from the index's 1984 inception until its 2010 Kraft Foods takeover.[5][6] History 1824–1900: Early history In 1824, John Cadbury began selling tea, coffee, and drinking chocolate, which he produced himself, at Bull Street in Birmingham, England. He later moved into the production of a variety of cocoa and drinking chocolates, made in a factory in Bridge Street and sold mainly to the wealthy because of the high cost of production. John Cadbury became a partner with his brother Benjamin and the company...
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... Executive Summary People are identified by their name, the way they look, their voice and personality. In the same way a product is presented so that a consumer will always be able to recognize it as distinct from any other similar product. Critical to the success of any product is the creation of the right identity. Identity means that a product is easily recognizable and differentiates from the offerings of competitors. Our store takes the concept of a traditional chocolate shop and adds the element of creativity and health. Our customers will have the opportunity to come into our store and concoct their own chocolate tailored to a customer’s desire that is health conscious. Cadbury Diet will be reinventing itself by producing a low-calorie dark chocolate which will be tagged as a healthy snack in contrary to the recent issues that the confectionery industry has faced. Cadbury chocolate bar has been tagged as the “People’s Chocolate Bar” manufactured by the Cadbury Company and founded by John Cadbury in 1824.Cadbury is a British confectionery company owned by Kraft Foods and is the industry's second-largest globally after Mars, Incorporated. With its headquarters in Uxbridge, London, England, the company operates in more...
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...drivers that increase the price of cocoa? 1.1. The demand The demand growth for chocolate increases the price of cocoa, which is chocolate's main ingredient. Demand for chocolate increased by 20% between 2002 and 2011, as measured by chocolate product consumption (ICCO cocoa market review Jan 2012). Increased standard of living in India and China is increasing the demand for chocolate products, which used to be considered an elite luxury item. The massive population in these countries is driving up the demand for chocolate and increase the price of cocoa. Between the years 2002 and 2012 the growth of consumption of chocolate products has been varying between 15 – 20 per cent annually. 1.2. Status in Africa The general world’s and UN’s attention is targeting to act against child slavery and general working conditions in African nations. The recent examples from West Africa are suggesting the situation is improving, but Ivory Coast example from 2009-2010 demonstrates the fact that the majority of world’s cocoa is produced in unstably ran nations where human rights are not respected and general stability is poor. When workers in Africa will receive proper wages and working conditions, African production costs will increase, and raise cocoa prices. 2.13 Crop and Harvest The crops which are smaller than expected in cocoa producing countries will lower the supply of chocolate. World chocolate consumption is increasing, so the price of cocoa increases. Destructive diseases...
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...Chapter-4: Analysis and findings of the study: Introduction: Analyzing the issues is always useful particularly when such analysis has been led with the assistance of distinctive models and tools. In this area of the study, the problems talked about in the earlier segment of the study have been analyzed. Here the expert has concentrated on what Zotter chocolate as of now doing and what it can do in future to resolve the issues with these analytical models. 4.2: International Business Problem: * 4.2.1: Ricardo’s theory of international trade: This theory represents if Zotter wants to get the necessary raw materials from its suppliers of another country, it also needs to help them. Zotter can surely help them by importing the products which they do not have much cost advantage. For example, from the edible zoo, they can send meat to those suppliers. Again, it can send other nations the cocoa husk wastage of those chocolates so that they can recycle them and make food-grade paper. Nowadays it is possible to make food-grade paper from cocoa husk. By doing this, those countries can gain cost advantage. Finding: Zotter can send their own edible zoo meat to the suppliers of other countries. Besides this, they can export the cocoa husk wastage by which those suppliers can produce food-grade paper. * 4.2.2: Uppsala Model Uppsala model is a hypothesis that helps in establishing business in other countries through internationalization. * Market Knowledge To expand...
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...http://www.wikinvest.com/stock/Hershey_Foods_(HSY) Possible industry: Affordable luxury The global chocolate industry has been in a moderate growth trajectory since the last five years. This growth is largely fueled by the increased global demand for premium chocolate. The major developing countries such as China and India are expected to offer great opportunities to the global chocolate industry; thanks to the use of chocolate as a functional food. Organic and fair trade chocolate is a rapidly growing segment of the industry. With consumers developing more awareness regarding environment-friendly products, this segment is expected to rise rapidly in the next five years. One of the major concerns for the chocolate industry is the rising number of counterfeit products. This is a great threat for the overall confectionery market and chocolate is no exception. The global chocolate market is highly consumer driven and companies need to focus on their development and marketing strategies towards capturing a larger consumer base, and acquiring new markets. The major strategies used are consolidation of processes, and enhancement of brand image through corporate social responsibility. Cocoa is the main raw material for chocolate production and has no other substitute. Moreover, it can only be grown within 10 degrees (latitudes) of the equator. Due to this constraint, global production of cocoa is highly concentrated in West African countries such as Ghana, Cote d'Ivoire, Cameroon, and...
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...report is Mars Inc. Unit 5 Individual Project Introduction The principles of marketing apply to every business and operation that produces and sells some type of commodity in exchange for profit. The marketing mix contains specific tools, which help companies and their marketing team to build and evaluate a product, structure the price based on the value, effectively promote the product, and place the product with best-suited channels of distributions. For a company that operates on a global scale, such as Mars incorporated, these tools are even more important to assess. Describe Main Line of Business of the Company Mars Inc. is one of the largest privately owned companies in the U.S.A alone (FAQs, 2012). Best known for their chocolates and candies; the company offers a diversity of other products from segmented areas within their company concerning pet care products, symbioscience, drinks, gum, and foods (Market Summaries, 2012). The company has approximately over 70,000 associates working nationwide at one of their facilities, which are located globally in over 73 different countries (Where we Operate, 2012). Name Four Countries in which the Company Operates The Mars Company caters to all kinds of people all around the world. Their operations reach far across seas and dwell in...
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...38 10.1 Exposing the Corporate Social Responsibility 38 10.2 Product Development to meet upcoming consumption trends 38 10.3 Market penetration in Spain 40 10.4 Penetration of Emerging Markets 41 10.4.1 Asia Pacific 41 10.5 Entering new Segments 43 10.6 Pushing profitable Product Lines 45 11 Bibliography 47 11.1 Books 47 11.2 Documents from Databases 48 11.3 Journals 50 11.4 Websites 51 II List of Figures Figure 1: Confectionery industry segmentation 5 Figure 2: Market value of the confectionery market in the period 2004-2009 and the expected growth until 2013 6 Figure 3: Stage of industry life cycle mature markets (Western Europe, North America) and immature markets (Middle East and Africa, Eastern Europe, India, China, Russia) 10 Figure 4: Growth rate of the global confectionery sales by region in the period 11 2007/2008 and forecast for the period 2008-2013. 11 Figure 5: Global confectionery market share by value 12 Figure 6: Strategic groups of the confectionery industry 13 Figure 7: Sales in million CHF and change in % in the period 2005-2008 14 Figure 8: Resource Base of Lindt & Spruengli 15 Figure 9: Value Chain of Lindt &...
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...Bureau MARKET INDICATOR REPORT | MAY 2011 Pathfinder Report Global Packaged Confectionery Trends Source: Shutterstock Pathfinder Report Global Packaged Confectionery Trends EXECUTIVE SUMMARY Australasia (Australia and New Zealand) and Western Europe were the two biggest regional confectionery markets in 2010, with Australasia‟s sales increasing by almost 25% over 2009 figures. North America, Asia Pacific and Latin America confectionery markets have also maintained increasing sales of these products despite the global economic downturn. The recession has caused many consumers to sacrifice volume rather than quality, and to use confectionery as a reward or as a means to help alleviate stress. However, sugarized gum, milk chocolate tablets and boiled sweets confectionery are all being adversely affected by mounting consumer health concerns. Obesity and diabetes are major health issues that are increasingly affecting both the young and aging populations. In particular, the United States (U.S.), United Kingdom (U.K.), and Japan will stand to benefit the most from reduced calorie and low/no/reduced sugar content. When it comes to “healthy” confectionery, consumers tend to look for products benefiting dental and cardiovascular health, as well as low-calorie products that help assuage guilt over indulgence. We see this trend playing out with sugar-free gum which has been performing well globally, and is predicted to continue, particularly in emerging countries. Gum is...
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...Assessment 2 Company Selected - Nestle Executive summary Nestle is global company of milk products and nutrition, chocolates’, beverage, catering and many type of confectionary goods. It has its millions of customers worldwide. Today Nestlé Singapore Limited is on good positioned to grow through its business policy of constant innovation and renovation, concentrating on its core competencies and commitment to better and high quality, with the aim of availability to the best quality food to the people of Singapore. In the report we have brought a discussion about the marketing segmentation of Nestle, their target market and positioning strategy in Singapore. The way Nestle chooses its different core customers different needs with a better way and how it fulfilled satisfaction its consumers by making greater facilities by the aggregate of different products or marketing mixes is shown in market segmentation of Nestlé. In the area of market viewing we have talking how Nestle have made many segments and decided to expand their whole business in whole Singapore. In the end of this we have talking how Nestle available to the customers point more Efficiently and effectively comparing with their other manufacture competitors in the highly challenging food& beverage market of Singapore by making differentiation of target Users and customers. Nestle is the biggest nutrition and foods company in the globe, established his headquarter in Vevey, Switzerland. The journey of Nestle begins...
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