Beyond Fairtrade: These bean to bar chocolate makers are venturing
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This report discusses the expansion plan of Chocosol, a chocolate brand based in Canada, to the United Kingdom. It includes a marketing plan and promotional tactics for the brand's expansion. Recommendations are also provided.
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Running head: CHOCOSOL CHOCOSOL Name of the Student Name of the University Author Note
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1CHOCOSOL Executive Summary In order to ensure success in the long run, any business organization would be required to ensure that they will be successfully able to expand the different operations into viable markets and ensure that they are being able to attain success in those markets. The given report is based on the expansion plan of the Chocosol, a chocolate brand based in Canada to the United Kingdom. The report has followed a systematic format with respect to which, the brand would be required to expand its overall operations in the other country. The report lays down the marketing plan of Chocosol in United Kingdom and the different promotional tactics which are to be adopted by the firm. Certain recommendations have also been provided.
2CHOCOSOL Table of Contents 1.0 Introduction................................................................................................................................3 2.0 About the firm/product..............................................................................................................3 3.0 External analysis of UK and France using PESTLE.................................................................4 3.1 Conclusion about the market.................................................................................................9 4.0 Market entry plan.....................................................................................................................10 5.0 Smart objectives.......................................................................................................................11 6.0 Plan components......................................................................................................................12 6.1 Marketing Mix.....................................................................................................................12 6.2 Key Factors of the planning Schedule.................................................................................13 6.3 The Marketing Budget.........................................................................................................14 7.0 Organization challenges...........................................................................................................15 8.0 Conclusion...............................................................................................................................17 9.0 Recommendations....................................................................................................................17 10.0 References..............................................................................................................................18
3CHOCOSOL Brief title: āBeyond Fairtrade: These bean to bar chocolate makers are venturing` 1.0 Introduction The global business scenario has become highly competitive and it is with respect to this, thatitbecomesconsiderablyimportantforthedifferentcompaniesaspresenttotake considerable initiatives so as to ensure that they are able to maintain a competitive positioning in the market and that they are able to take advantage of the different economies which shall enable them to increase their sales and perform considerably well (Ansoff et al. 2019). Hence, in line of this, it can be mentioned that the internationalization of the firms is not an easy task and the business which plans to internationalize its operations would be required to take considerable initiatives with the help of which they will be successfully able to identify the right kinds of market for themselves and then consider the overall scenario as well in order to be able to expand and earn large amount of profits.The report is based on the marketing plan of the Chocosol which is a chocolate firm based in the Canadian country of America. The plan will compare the international markets of France and the United Kingdom using the frame of PESTEL analysis and then will accordingly plan so as to ensure that the firm is able to decide the most suitable market for itself. 2.0 About the firm/product The Chocosol is a chocolate social enterprise which is based in Toronto in Canada. The company is one of the largest manufacturers of chocolate as present in the country and thereby engages in a production of 1.4 tons chocolate in a month. The company also has varieties to offer to the target audience based on which it can be stated that the firm has 10 different types of chocolateforconsumptionand4typesofchocolatefordrinkingChocolates (Chocosoltraders.com 2019). The company has made considerable profits in the last few years
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4CHOCOSOL and can be stated to have a good share of the Canadian market. It is for this that the company has not decided to expand its operations so that it is successfully able to ensure that it will be able to reach out to new and better economies and in the same manner, it will also be able to, increase its sales as well as the level of operations. 3.0 External analysis of UK and France using PESTLE Before expanding into newer and better markets, it becomes considerably better for the firm to take considerable measures which will help them in understanding the overall market structure and in addition to this, it will also ensure that, the firm is successfully able to take the right decision and plan accordingly (Chernev 2018). With respect to this, the PESTLE Analysis of both the countries will be carried out and certain comparisons will be made in order to ensure that the right country decision is made. PESTLE FactorsUKFrance PoliticalThe United Kingdom canbelargely understoodtobea constitutional monarchyand conductsits operationsunderthe influenceofthe parliamentary system. The overall economy and political status of thecountrycanbe understood to be fair andstable.Although thechangeinthe Prime minister of the countryandthe introductionofthe Brexitissue,there havebeenvarious instabilityinthe economy,however, InFrance,therehas beenawidegap between the rich and thepoorandthis aspect has often led to the destruction of the overallmarket performance.Hence, although there exists a great number of rules as well as regulations , for a business to be successful in the long run,thebusiness needstoabideby a strict set of rules and regulationswhichis absentinFrance (Wheelen et al. 2017). Thepolitical instability often leads to market uncertainty
5CHOCOSOL thegovernmentis quiteproactivein natureanditssplit intothenationalas wellasthelocal administrationshas madeitconsiderably easier for the country toexpandits operations adequately. and has an impact on theoverall performanceofthe businessaswell.In additiontothis,the countrybelievesin onlyprotectingthe rightsofthelarge brandsaspresentin the country and hence, thedifferent businesses as found in theUnitedKingdom mayfindit considerablydifficult toensurethatitis successfullyableto expand its operations. Additionally,the politicalelitesshare large privileges to an extentsuchthat,it becomesforthe generalcitizensto survive. EconomicThe United Kingdom canbestatedtobe relativelystrong economy in terms of the performance of the othercountriesas present. The count try has a diverse economy aswell.Moreover, thereexistscertain positiveaspectslike its position of the 5th largestGDPinthe globe, scope of good performanceforthe smallmarkets,free markets,theexistent of both private as well as the public sectors, increase in the foreign direct investment and Duringthegreat economicdepression, whenthedifferent countries as present in Europe faced a large extendofeconomic instability, it was only France which did not undergothis depression because of greatergovernmental intervention. However, in terms of theinternational businesses,theyfind itverydifficultto conducttheir operationsinthe particular country due to the different taxes which are imposed on
6CHOCOSOL otherrelatedaspects amongtheothers (Wheelen et al. 2017) However,thefirm suffered a huge slow downdoortothe economicrecession and lots of funds are spentonproviding free healthcare which limits the spending on the other economies. thedifferent businesses as present. However, the country is abundant in terms of the resources which oftenmakesita suitable place in terms oftheexpansion requiredtobemade by the different firms as present. Socio-culturalThe social factors tend to form an important partofanyPestle analysis and hence, in lineofthiswith respect to this, it can be mentioned that in theUnitedKingdom thereexistshigh social standards which have led to a positive outcomeinvarious sectors. Some of the aspects which can be discussedinlineof this can be stated to be thefactthatthe countryprovides variousfreepublic services to its citizens, isdenselypopulated in terms of the diverse culture and along with this, the possibility of conductingthe businessiseasierin the country (Noe et al. 2017).Additionally, thecountryisquite open to the migration and can be stated to haveacosmopolitan environment. AlthoughFranceis abundance in terms of the cultural value and theoveralltarget market,thedisparity of income between the rich and the poor in thecountryisquite high.Inadditionto this, it also needs to beunderstoodthat, Unionizedactivities often form the norm of the businesses and thismakesit considerablydifficult forthefirmsto perform well in terms ofthelaborissues facedbythem. Moreover, very often the country is subject toRacialviolence whichmakesit difficultforthe citizenstolivein peaceandforthe businesses to achieve theiroverall objectives successfully.
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7CHOCOSOL Moreover,the standard of living of the individuals can be understood to be quite high. However, there aresomedownturns as well with respect to whichitcanbe mentionedthatthe dependencyratiois highandincreasing, thereexistscertain social unrest in terms of ethnic groups and lastly,thecostof livinghasbeen increasing considerably. TechnologicalThe United Kingdom can be stated to be a Moreeconomically developedCountry and has good access totheadvanced technology. Moreover,the differentcitizensof thecountryhave Qualityinnovation skills,greater expertiseinthe science and IT and in additiontothis,the countryhaseffective lawstogovern international competitionand growthwithinthe economy(Chernev 2018). Francecanbe understoodtobea global leader in terms ofTechnology.Very often the place is only viewed as a pioneer of artandfashion,but thisisnotthecase. Thecountryhas invested greatly in the fieldsofelectric energy and renewable as well as sustainable technology.Thereby, the country is greatly inclinedtowards Healthtechnology which makes it easier forthemtoproduce thousands of educated researchers,scientists and global developers every year. EnvironmentalThephysical environmentformsa key source of concern foranybusinessto Theministryof Environmentin Francehasmade considerable laws and
8CHOCOSOL ensuresuccessin terms of its operations and in line of this, it canberightfully mentionedthat,just likethiseventhe UnitedKingdomhas certainsetlawsas wellaslegislations, which it would like its business to abide by. Theredonotexist high level disasters in theUnitedKingdom when compared to the othercountriesas present which can be consideredtobea positiveaspect (Ginter,Duncanand Swayne2018). However,therehave beencertain environmentalissues whichmightbe consideredtobea seriousconcernfor the overall operations of the firm. Hence, in ordertoensurethat the country is able to performwell,ithas outlinedcertain operationalstandards forthebusinessso that the firm is able to perform well. regulationswhich assiststhemin ensuring that they will be successfully able to combatagainstthe different environmental problemswhichare faced by the citizens inthecountry. Moreover, the country hasalsooutlined variousvulnerable zonesandreserved areastoensurethat their country is able to sustaintheecology and avoid and distress inrelationtothe same. LegalLikeallthe businesses,eventhe UnitedKingdom wouldberequired ensurethatits businesses would like to conform to certain standardsandhas hencecomeupwith Themainlaw enforcementwhich takes place in France can be stated to be the Policewhichalso comprises of the CRS (Lasserre2017).The policeislargely responsiblefor
9CHOCOSOL lawstoensurethe overallsuccesswith respecttothesame (Meyer,Neckand Meeks2017). However,itcanbe rightfullymentioned that the legal elements of the country can be understood to be quite tough.Moreover,in line of this, it can also be mentioned that the country is required to comply with some key wages regulation and resourcelegislations toensuregreater success. maintainingthe overalllawand decorumofthe country which thereby ensuresthatthereis no clash of delegation. In terms of law and otherlegalaspects relating to the overall securityofthe country,Francehas setoutconsiderable lawsandpolicies which go a long way in assisting the firm to ensuresuccessful relationswith neighboring countries. 3.1 Conclusion about the market Therefore from the given analysis of the two countries France and the United Kingdom, it could be understood that, the country which will be more suitable for the firm to expand its operations into can be stated to be the United Kingdom. The reason, why the country is being chosen is because, in terms of the environmental considerations and the economic standards of the target market, the country is doing much better when compared to France (Hill 2017). Moreover, although one might consider the tension regarding the Brexit to be a serious source of concern for the different operations of the firm, its absence or avidity will not have any major impact on the operations of the firm. In addition to this, there exists considerably lower levels of corruption in the United Kingdom which has led to better opportunity for the businesses. Even if the Brexit comes into place then, the United Kingdom would prefer having suitable FDI`s to strengthen its overall positioning in the global market which might be considered to be the
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10CHOCOSOL reason why the ease of doing business is relatively easier in the United Kingdom. Hence, with respect to this, it is better for the firmDavid and David (2016), to expand internationally in the United Kingdom and this report will highlight the market strategy as per the target market consideration of the United Kingdom. 4.0 Market entry plan In order to ensure that a business is able to attain long term success and engage in the expansion of the different operations in the long run in an international market, it can be considered to be very important for any organization, to plan its market entry mode (Rowley 2016). This is because, the market entry strategy and plan goes a long way in ensuring the different considerations which have to be undertaken by the business to ensure that it is successfully able to carry out the operations successfully in the market (Olson et al. 2018). Hence, for Chocosol it can be considered to be very important that the business is able to ensure that they take up a market entry strategy which will enable it to have access to the brand name of the firm. For this purpose, the entry mode of franchising is being recommended. The concept of Franchising is based on a marketing concept which can be easily adopted by the firms in order expand their operations in the long run whereby the franchisor can license the know-how of the business including the intellectual property and the business model as well. Moreover the business would be required to comply with certain obligations in return of the licensee agreement (Lovelock and Patterson 2015). In this, Chocosol will be required to find interested entrepreneurs who would be interested in becoming the distributors and are willingly expanding the operations of the business and be interested in purchasing the franchise agreement. In this kind of a market entry strategy, the business would be successfully able to manage the franchisee business in the new country and in a similar manner, reduce the overall costs of
11CHOCOSOL expansion by extending its operations. According toMorschett, Schramm-Klein and Zentes (2015), the primary cost of the business can be stated to be the marketing cost will be incurred by the business. The Franchising will be the most appropriate expansion strategy which can be adopted by Chocosol. The Franchising cannot be considered to be an equal partnership due to the fact that there exists a preponderance of the franchisor over the existent franchisee. However, under specific circumstances like the maintenance of the transparency, favorable legal conditions and financial benefits for both the parties, the franchising will prove to be a favorable condition for both the parties (Homburg, JoziÄ and Kuehnl 2017). 5.0 Smart objectives The SMART Objectives can be defined and understood as a set of objectives which a business generally sets out for itself in order to ensure that it is able to achieve overall success in the long run and to also ensure that it is able to attain sustained growth throughout its operations. The SMART objectives which have been set out for the business, Chocosol in the new country of United Kingdom can be understood to be as follows: ļ·To take over a market share of 10 percent in the coming two years in United Kingdom ļ·To engage into a sales ofĀ£1000000 in the first year of operations. ļ·To engage into a profit ofĀ£50000 in the first year of operations. ļ·To ensure that the number of customers to which the product has been sold turns out to be approximately 500000 ļ·To make use of social media platforms and reach out to the 50% of the targeted audience by 1 year.
12CHOCOSOL 6.0 Plan components 6.1 Marketing Mix Product: The product which is being offered by Chocosol can be stated to be the chocolate bars and the drinking chocolates which are available within the scope of the firm (Gummesson 2017). The chocolate is an extremely popular product of the country and with respect to this, they will be able to ensure that, using this popularity they can make their expansion to the United Kingdom a success. The products are available in various sizes which ensures that a large variety is offered to the different customers (Fahy and Jobber 2015). Price: The pricing of the product will be done as per the rules of the penetration pricing method. In this kind of a pricing system, the firm would be required to, set the pricing at a considerable low in the beginning of their expansion plans and later on when they have achieved success, they can increase the pricing of the product. Place: The product will be available in various cities of the United Kingdom and will be largely available at the major supermarket stores and related convenience stores as present in the country (Gummesson 2017). In this way, they firm will be successful in ensuring that it is able to capture a large consumer base in the initial years which will assist in ensuring the overall success of the firm. Promotion:
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13CHOCOSOL The different promotional tactics which will be adopted by the firm can be stated to be the operational tactics like promoting using the online mediums, using the social media, using traditional methods of expansion and in addition to this, making use of the local methods of advertising in order to ensure a larger customer operations (Fill and Turnbull 2016). 6.2 Key Factors of the planning Schedule In order to ensure that Chocosol is successfully able to expand its operations through the procedure of Franchising in the long run, the firm would be required to chalk out a proper planning procedure which will assist in ensuring that the firm is able to carry out the different operations in the right manner and see to it that, there does not exist any loophole in the particular system or that the overall operations are carried out effectively (Wagner and Eggert 2016). The key factors of the planning schedule can be understood to be as follows: Sr. NoOperationsActivitiesPerson responsible BudgetTime allocations 1National advertising Banner advertisements Marketing manager Operations Manager Ā£50002 months 2Local Advertising Newspaper Instore marketing Advertisemen t head Manager Ā£125002 months 3Public relations Public events Sponsorships Client events Marketing manager Operations Manager Ā£370003 months 4Social media advertising Twitter Facebook Instagram Pintrest Socialmedia manager Marketing head Ā£600003 months 5Traditional advertising Online Print Radio advertising Television Marketing manager Operations Manager General Ā£532003 months
14CHOCOSOL manager 6Sales Campaign 4sales campaign Marketing manager Operations Manager Ā£219004 months 7Online Mediums Blog Website Mobile applications Email newsletters Marketing manager Operations Manager Influencers and Bloggers Ā£104006 months 6.3 The Marketing Budget CAMPAIGN TYPEQTYPROJECTED COSTPER UNIT PROJECTED SUBTOTAL National MarketingSUBTOTA L Ā£ 5,000.00 Banner Ads10Ā£ 500.00 Ā£5,000.00 Ā£- Ā£- Local MarketingSUBTOTA L Ā£ 12,500.00 Newspaper10Ā£ 1,000.00 Ā£10,000.00 In-Store Marketing5Ā£ 500.00 Ā£2,500.00 Ā£- Public RelationsSUBTOTA L Ā£ 37,000.00 Public Events5Ā£ 5,000.00 Ā£25,000.00 Sponsorships5Ā£ 2,000.00 Ā£10,000.00 Client Events5Ā£ 400.00 Ā£2,000.00 Ā£- Ā£- Social MediaSUBTOTAĀ£
16CHOCOSOL Campaign D1Ā£ 3,900.00 Ā£3,900.00 TOTALĀ£200,000.00 7.0 Organization challenges In the implementation of the market entry strategy and the different marketing ix tactics which the firm aims to apply, it can be stated to be quite obvious, that Chocosol may face certain issues when they are carrying out their operations with respect to the same. The different issues which might be faced by the Chocosol when they are planning to expand their operations into the United Kingdom can be defined as follows: ļ·The taste of the Target market: The Target market of the firm can be stated to be the individuals who have a sweet tooth or are young in age. However, it is not necessary that this target market may like to have the particular product. There may be a scenario whereby the particular target market may not enjoy having the specific chocolate or there may be a scenario where they may not feel acquainted to the taste of the produce the existent competition ct. ļ·Competition: Another issue which might be faced by the Chocosol in case they plan to expand the operations to United Kingdom may be related to the issues of the existent competition as present in the country (Bagozzi et al. 2018). There are several chocolate brands as present in the country and they may prove to be a strict competition to Chocosol. ļ·Cultural adaptation: Very often, there may be a scenario with respect to which it can be largely understood that, the brand may not be able to culturally adapt to the overall setting of the country and with respect to this, it may face large number of issues. Legal
17CHOCOSOL issues: The last kind of issues which may be faced by the company can be stated to be the issues related to the legal regulations of the country (Gummesson 2017). Due to the Brexit, various scenarios have changed and hence, Chocosol may face issues while establishing their base in the country. 8.0 Conclusion Therefore, from the given analysis, it can be rightfully stated that in order to expand its operations in the long run, any business would be required to ensure that they are able to make the selection of the right kind of market. In lieu of this, they will be able to ensure that, once they are successful in choosing the right market for themselves, then they will be able to carry out its expansion plan successfully. The given report was based on the expansion and marketing report of Chocosol, a company based in Canada. The company had chosen France and the United Kingdom as the final countries, where they were required to expand in and then a PESTLE analysis was carried out to understand the overall suitability. The country of United Kingdom was chosen and this was followed by the different strategies as well as the plans which are required to be adopted by Chocosol in order to ensure successful expansion in the United Kingdom. The budget, planning template and the challenges which can be faced by the firm have also been provided. 9.0 Recommendations The given recommendations can be provided to the company in order to ensure that they are able to carry out their expansion successfully.
18CHOCOSOL 1.The firm needs to adapt to the culture of the United Kingdom. This means that, in order to ensure success in the long run, it can be considered to be very important for the firm to come up with offerings that may prove to be suitable for the different members of the UK Society (Baker 2016). 2.Secondly, it can be considered very important for the Chocosol to ensure that, they are successfully able to set the pricing of the different chocolate products accordingly. This means that, in order to see to it that the firm is able to attain success in the long run, the pricing of the product is required to be made competitive in nature. 10.0 References Ansoff, H.I., Kipley, D., Lewis, A.O., Helm-Stevens, R. and Ansoff, R., 2019.Implanting strategic management. Springer. Bagozzi, R.P., Rosa, J.A., Celly, K.S. and Coronel, F., 2018.Marketing-Management. Walter de Gruyter GmbH & Co KG. Baker, M.J., 2016. What is marketing?. InThe Marketing Book(pp. 25-42). Routledge. Chernev, A., 2018.Strategic marketing management. Cerebellum Press. Chocosoltraders.com 2019.Bean-to-Bar + Stone-Ground Dark Chocolate[online]. Available at: https://chocosoltraders.com/ (Retrieved on: 13 April. 2019). David, F.R. and David, F.R., 2016.Strategic management: A competitive advantage approach, concepts and cases. Pearson. Fahy, J. and Jobber, D., 2015. Foundations of marketing.
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19CHOCOSOL Fill,C.andTurnbull,S.L.,2016.Marketingcommunications:brands,experiencesand participation. Pearson. Ginter, P.M., Duncan, W.J. and Swayne, L.E., 2018.The strategic management of health care organizations. John Wiley & Sons. Gummesson,E.,2017.Fromrelationshipmarketingtototalrelationshipmarketingand beyond.Journal of Services Marketing,31(1), pp.16-19. Hill, T., 2017.Manufacturing strategy: the strategic management of the manufacturing function. Macmillan International Higher Education. Homburg, C., JoziÄ, D. and Kuehnl, C., 2017. Customer experience management: toward implementinganevolvingmarketingconcept.JournaloftheAcademyofMarketing Science,45(3), pp.377-401. Lasserre, P., 2017.Global strategic management. Macmillan International Higher Education. Lovelock, C. and Patterson, P., 2015.Services marketing. Pearson Australia. Meyer, G.D., Neck, H.M. and Meeks, M.D., 2017. The entrepreneurshipāstrategic management interface.Strategic entrepreneurship: Creating a new mindset, pp.17-44. Morschett, D., Schramm-Klein, H. and Zentes, J., 2015.Strategic international management(pp. 978-3658078836). Springer. Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017.Human resource management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
20CHOCOSOL Olson, E.M., Slater, S.F., Hult, G.T.M. and Olson, K.M., 2018. The application of human resource management policies within the marketing organization: The impact on business and marketing strategy implementation.Industrial Marketing Management,69, pp.62-73. Rowley, J., 2016.Information marketing. Routledge. Wagner, S.M. and Eggert, A., 2016. Co-management of purchasing and marketing: Why, when and how?.Industrial Marketing Management,52, pp.27-36. Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., 2017.Strategic management and business policy(p. 55). Boston: pearson.