...------------------------------------------------- AnaLysis of demand and supply of cocoa Managerial Economics Study Project September 25, 2015 September 25, 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...
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...Case Analysis: Cocoa Sublime Module 1: An Introduction to Strategy and Leadership 1.1 Approaches to Strategy: There are broad two categories of approaches to developing strategy: Rational and Processual Approach. For Cocoa Sublime, it is following Rational Approach as it has a clear concept of what it is going to do, execution plan of how it is going to happen, sequential activities of what to do after what, and discrete information. Though some assumptions are made in developing the approach, these assumptions are also backed by experience and research. 1.2 Strategic Thinking: Even in strategic thinking, there are two major dynamics: environment led ‘fit’ and resource led ‘stretch’. For Cocoa Sublime, Resource led ‘stretch’ suits properly. Calvin has a business vision to diversify the business. It has ample opportunities to cover through chocolate chips that they can leverage. It has scope to create a new market to improve its value for money. Calvin believes in utilizing the competencies that Cocoa Sublime has: reputation of high quality chocolate, excellent customer service, and Australian sourced ingredients. 1.3 Levels of Strategy: Cocoa Sublime is one of the family owned chocolate makers and leading brand in specialty chocolate market in Australia. Thus, it has to consider strategies at three levels: corporate, business, and functional. • For corporate level strategy, Cocoa Sublime has encountered steady growth in its market and thus it has planned to diversify its...
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...MANAGERS / SECTION Cinco Ranch INDIVIDUAL CASE ANALYSIS: WHY ARE COCOA PRICES RISING? STUDENT: _____Hassan Cherradi______ I, ________Hassan Cherradi______________, hereby certify and warrant: (a) that this Individual Case Analysis is my original work; (b) that I have acknowledged all the sources used in this Case. I understand that copying of another’s work and representing it as my own work is a serious academic offense, and should be treated as such. April 2009 Causes and Analysis of Rising Cocoa Beans Prices 2 Prices for cocoa mainly respond to supply and demand factors. Ideally, one would think that during boom periods, there would be a supply surplus that would result prices to decline. Consequently, farmers would want to switch to grow other crops that may be more profitable, creating then a short in supply that would bring prices up again. However, they are other determinants that can impact the market supply or market demand of cocoa and move the equilibrium between demand and supply. Some of the main causes that result in a price increase of cocoa are explained as below. Diseases and Pests Crop-damaging or threatening pests and diseases can lead to a decline in cocoa supplies and, therefore, make cocoa price shoot up. As published by the on-line source of OARDC (The Ohio Agricultural Research & Development Center), there are different species of insect pests that can afflict cocoa crops. In the major cocoa-growing areas of the world, the most serious...
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...The theory of international trade: 1. Mercantilism Theory. 2. Absolute Advantage Theory. 3. Comparative Advantage Theory. 4. Heckscher-Ohlin's Theory 5. Porter’s Diamond of Competitive Advantage Theory. Mercantilism The first theory of international trade ,mercantilism, engaged in England in the Mid 16th century holding that a countries wealth is measured by its holdings of treasure which usually means its gold & silver. The principal assertion of mercantilism was that gold and silver were the mainstays of national wealth and essential to vigorous commerce. At that time gold & silver were the currency of trade between countries,a country could earn gold & silver by exploiting goods. Conversely, importing goods from other countries would result in a outflow of gold & silver to those countries.The main tenet of mercantilism was that it was in a country’s best interest to maintain a trade surplus,to export more than it imported.By doing so,a country would accumulate gold and silver and, consequently ,increase its national wealth, prestige & power. Government policies: Consistent with this belief, the mercantilism doctrine advocated government intervention to acieve a surplus in the balance of trade.The mercatelists saw no virtue in a large volume of trade.Rather they recommended policies to maximize exports and minimize imports.To achieve this. import were limited by tarrif and quotas.while exports were subsidized. The concept of Balance of Trade: ...
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...Outlook for Sugar Prices and from the Commodities section of the Wall Street Journal titles World’s Sweet Tooth Heats Up Cocoa. The project also calls for an economic report that is to be published in a trade magazine that services the U.S. Market for Non-Chocolate Candy. Throughout the economic analysis and report market equilibrium, identification of the main variables of the articles, interpretation of impact on supply or demand, application to the supply and demand model, as well as the qualitative forecast of price and quantity in the relevant market. A Depleting Market for Sugar Cane and Cocoa Beans With the decline in sugar cane prices the world trade outlook for sugar cane also declines. As one can interpolate from Figure 1, the plot of quantity demanded for sugar cane versus the price per pound of sugar cane, the market equilibrium price for sugar is on the decline and has been on the decline for the past couple of years. In fact, raw sugar prices for the month of March declined at 15.22 cents a pound, which is down 7.3% since the turn of the New Year; it is also the lowest level in three and a half years accordingly. With the provided supply and demand curve (Figure 1), gives a projected outlook on supply and demand, as well as projected future prices of sugar and cocoa beans. The Barrons.com Commodities Corner cites a broker at Breitinger & Sons, Walt Breitinger, and in this citation Breitinger predicts that the expected future prices of sugar cane will...
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...Appendices Appendix 1: Cocoa Delights media plan ‘Get in touch with your dark side’ MEDIA PLAN Period: July 2010–June 2011 10 Chocolate Parade Melbourne, VIC, 3181, Australia Phone: 12 3456 7890 Fax: 12 3456 7890 Email: mediaplanning@cocoadelights.com Website: www.cocoadelights.com Contact: Coco Jones Table of Contents Executive Summary ........................................................................................................ 117 Business description ............................................................................................... 117 Vision for the future ................................................................................................. 117 Business goals/mission .......................................................................................... 118 Business philosophies/identity ............................................................................... 118 Main objectives ........................................................................................................ 118 Situation Analysis ........................................................................................................... 121 Marketing analysis ................................................................................................... 121 Customer analysis ................................................................................................... 123 Product benefits...
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...Topic Option A. Company Case Study Introduction In the recent years, people pay more attention to healthy food. The brand I chose which name is Cocoa Bio can easily solve this problem. Cocoa Bio's idea is to create natural products of nourishment, which help people improving health using one of the best products that the nature has offered, the cocoa and consequently the chocolate. Cocoa Bio (2010). Cocoa Bio was established in the United Kingdom. In March of 1997, Cocoa Bio started working to offer us this kind of products to a marketing expansion. In this essay, I will focus on expanding this brand to South Korean in which has not been covered yet. I will use PESTEL analysis macro environment, then discuss market entry modes and market mix strategy, and last, I will propose which one to choose, standardization or adaptation. PESTEL analysis Political factors South Korea is government-led market economy. The economic aspect of the direction and development depends on government’s unilateral command, because of its highly centralized system of government. The most cannot be ignored problem is substantial degree of selective state intervention in the private sector. It is an obstacle for Cocoa Bio market entry and penetration. Besides, South Korean market has relatively limited volume, and it mainly relies on foreign trade to accelerate economy, therefore the government is quite sensitive to imported goods. Furthermore, Protection of homegrown company is quite common...
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...com Web Site: http://www.cocoadelights.com Contact: Coco Jones Table of Contents Executive summary 1 Business description 1 Vision for the future 1 Business goals/mission 2 Business philosophies/identity 2 Main objectives 2 Situation Analysis 4 Marketing analysis 4 Customer analysis 6 Product benefits and unique selling proposition 8 Competitive analysis 10 SWOT analysis 14 Legislation and Regulation 15 Advertising analysis 16 Advertising strategy 16 Media Strategy 18 Marketing Analysis 18 Marketing Schedule 20 Media budget 23 Campaign evaluation strategy 24 Executive summary Business description Founded in 2000, Cocoa Delights is one of the youngest gourmet chocolate manufacturers in the industry. However we do not view our youth as a weakness, on the contrary, our youth is associated with our two most valued attributes: creativity and innovation. We dare to create the unconventional. Our team of master chocolatiers have been hand-picked from prestigious confectionary schools boasting centuries of chocolate expertise from France, Switzerland, Belgium and Italy. Whilst we value the traditions of these schools, we place an even higher value on their passion for innovation and enterprise. Cocoa Delights is the first company in Australia to process more than ten different types of cacao from several countries, selecting only the finest cacao beans available. With chocolate factories in the Yarra Valley wine region of Victoria we currently manufacture...
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...Outlook While the outlook for continued demand growth of cocoa looks positive, the longer term prospects for sustainable production to meet this demand are tenuous and many chocolate manufacturers are becoming concerned. Supply shortages and high prices are a long-term threat to future growth of cocoa consumption since rationing of stocks will affect the most price sensitive markets first which are also the emerging markets. Subsequent establishment of consumer patterns of increased consumption of alternative snack foods and the use of less, or lower quality, cocoa in chocolate products could seriously effect long-term consumption of cocoa in these markets. Despite historically sustained growth, forecasting cocoa supply, demand and price movements is very difficult. However, as expected prices rose in 2001 due to a tightening of supply. Recent outlooks point to a demand growth range of 1.5-4.0% per annum. The current (November 2005) price is about US$1,400 per tonne. The long term outlook is for a price of US$1,200-2,000 per tonne in 2009-10 depending on demand growth Critical factors for an Australian industry Researchers and industry have been interested in cocoa production in northern Australia since the 1960s. A number of reviews were conducted showing there were suitable areas for commercial production and limited trials demonstrated that promising yields were possible. However, a combination of fluctuating world prices and the traditionally labour intensive nature of production...
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...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 Nigeria. The cocoa fruit is harvested twice a year in the form of a main crop and an intermediary crop (also termed as mid-crop). The main crop is larger than the mid-crop though the relative size varies according to the country where it is produced. Emulsifiers are basically used in food and pharmaceutical applications. The global emulsifier market was valued at around $1 billion in 2010....
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...Discuss the antecedents of International Business Models. International business models can be classified into two main categories: country-based theories and firm-based theories. Country-based theories view business in a macro perspective from a point a view of a nation and focus on trading phenomenon particularly in exports and imports. While firm-based theories are modern theories that emerged after the Second World War as it views business in a micro perspective from the angle of a firm. Despite the different perspectives of firm-based theories and country-based theories, they are interlinked and complement each other. The firm-based theories were developed from classic country-based theories and supported with empirical research. Country-based theories are international business theories that argue on the evolvement of business since the 16th century. The theories are classical theories that derived from an economic perspective. There are 4 theories involved in country-based theories. They are Mercantilism Theory, Absolute Advantage Theory, Comparative Advantage Theory and Heckscher-Ohlin Theory. Firm-based theories attempt to explain business phenomena related to international trade. Mercantilism theory was the first theory of international business that emerged in England in the mid of 16th century. The principal affirmation of the theory was its gold and silver were the mainstays of national wealth and essential to dynamic business. It was a political economy...
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...______________________________________________________________________ 2.2 Economics ___________________________________________________________________ 2.3 Social _______________________________________________________________________ 2.4 Technological ________________________________________________________________ 3. Identification of segments _________________________________________________________ 3.1 Geographic segmentation _______________________________________________________ 3.2 Demographic segmentation _____________________________________________________ 3.4 Consumer behaviour ___________________________________________________________ 3.5 Positioning ___________________________________________________________________ 4. Competitive analysis _____________________________________________________________ 4.1 Potential founders _____________________________________________________________ 4.2 Buyers ______________________________________________________________________ 1 2 2 3 3 3 4 4 4 5 5 5 5 6 7 7 7 8 4.3 Suppliers ____________________________________________________________________ 8 4.4 Substitutes ___________________________________________________________________ 8 5. Company strategic approach _______________________________________________________ 8 5.1 Mission _____________________________________________________________________ 8 5.2 Market...
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...Marketing Plan 1 .Executive summary In the process of developing this marketing plan a comprehensive analysis of the environment that affecting to Dairycova was done. With respect to the micro environment of the company, affect of the customers and the competitors has analyzed. And also analyzing the macro environment, we have identified affect of the PEST factors. Thereafter SWOT analysis was done identifying the favorable and unfavorable f actors in the internal & external environment. Company has clearly set objectives what is planned to achieve in the future. As well as we could identify several issues that will affect our attainment. As to identify the target market several groups of customer segments have been taken into consideration. By analyzing consumer characteristics and behavior the most appropriate segments have been selected. Several marketing tools used by the firms to pursue its marketing objectives. Company has selected relevant pricing strategies, innovative distribution strategies and attractive communication techniques. We allocate sufficient funds to market our products and achieve our future objectives. 2. Current market situation 2.1 Market analysis Generally in Sri Lanka chocolate is consumed as a snack, given as a present and used during festival season and some variants as an ingredient in cooking as well. Sri Lankan chocolate market is very competitive and it consists with complex customer base. It means consumers have knowledge...
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...MARKET RESEARCH PLAN FOR HANGYO ICE CREAMS PVT. LTD. Prepared for Hangyo Ice Creams Pvt. Ltd. Mangalore – 575003 Karnataka, India Prepared by Group T2 Section 4 MNCN – 2 T. A. Pai Management Institute - 576104 March 26, 2014 Letter of Transmittal March 26, 2014 F.S. Miranda GM(Marketing) Hangyo Ice Creams Private Ltd. Hampankatta, Mangalore Karnataka 575001 India Dear Mr. Miranda As agreed in our meeting on February 13,2014, we are submitting the attached report entitled market research for Hangyo Ice Creams. This report examines the most preferred new ice-cream flavor in the market and its related parameters .This report illustrates the research method to find the viability and choice of a new flavor, its packaging and pricing for Hangyo Ice creams from within the regular customer pool in Manipal, Udupi and Mangalore. I hope you find this report satisfactory. Sincerely yours, Anish Sengupta Deepanwita Nandi Navonil Rahut Neha Poddar Sourav Mohapatra T. A. Pai Management Institute Manipal 576104 ACKNOWLEDGEMENTS The project was a success mainly due to the contributions from a number of people. First and foremost, we take this opportunity to thank Prof. Sridhar Telidevara, the faculty guide for the project, for his continuous support and valuable insights without which the project would not have been successful. We are also thankful to all the faculty members of T. A. Pai Management Institute for their guidance...
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...Case Study: Slavery in the Chocolate Industry- Close to half of the world's cocoa is made from highly prized top-quality cocoa beans that are grown in the farms in the Ivory Coast and Ghana, a small nation on the Western side of Africa. The farmers of these poor nations are notorious, however for sometimes relying on slaves to harvest their beans. The slave are boys between 12 and 16 , sometimes as young as 9-- who are kidnapped from villages in surrounding nations and sold to cocoa farmers, who use whippings, beatings, and starvation to force the boys to do the hot, difficult work of clearing the fields, harvesting the beans and drying them in the sun. The boys work from sunrise to sunset and are locked in windowless rooms where they sleep in bare wooden planks. Far from home, unsure of their location, unable to speak the language, isolated in rural areas and threatened with harsh beatings if they try to get away, the boys rarely attempt to escape their nightmare situation. Those who do try are severely beaten as an example to others and then locked in solitary confinement for a prolonged period of time. Every year an unknown number of boys die or are killed on the cocoa farms of the Ivory Coast and Ghana. The plight of the enslaved children was publized widely around the world, by True Vision, a British television company , through videos and documentaries in Britain and the United States. News reports from the United Nations Children's Fund and other form of Human...
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