Choco Fills Chocolate Company: A Detailed Business Plan Analysis

This business plan outlines the strategy for Choco Fills, a new chocolate manufacturing company aiming to offer high-quality chocolates with a "Punchy Munchy Crunchy" tagline. The plan details the company's unique selling proposition, core competencies, and values, emphasizing quality and innovation. It includes extensive market research, analyzing market segments, target markets (primarily children and youngsters in the UK), market size, and trends, and utilizes Porter's five forces and SWOT analyses to evaluate the competitive landscape. A sales forecast is presented, along with an analysis of competitors and customers. The plan addresses new venture formation challenges, resources, and marketing strategies, emphasizing digital marketing and aims to capture market share by focusing on quality, taste, and flavor. The plan also highlights the importance of customer satisfaction and loyalty for the company's growth and profitability. The business is structured as a private limited company.

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chocofills
IT & Entrepreneurship
12/17/2018

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Course Work 2
Executive Summary
The Choco fills chocolate company is starting their new venture of manufacturing and
producing chocolates. Their tagline is “Punchy Munchy Crunchy”, which delivers a variety
of flavors and taste through chocolate bars and truffles. Their main Unique-selling
proposition is to maintain stability and focus on delivering the best quality products to their
customers. Their marketing budget and sales forecast are to be estimated, which increases the
growth and profitability of the company. In the following, an effort has been made to discuss
the business plan and pitch it to the potential investors.

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Contents
Executive Summary...............................................................................................................................1
New Venture Formation........................................................................................................................3
Background and Branch........................................................................................................................4
Unique Selling Proposition................................................................................................................4
Company values................................................................................................................................5
Core Competencies............................................................................................................................5
Resources..............................................................................................................................................6
Market Research....................................................................................................................................7
Market segment.................................................................................................................................7
Target Market....................................................................................................................................7
Market Size and Trends.....................................................................................................................7
Porter’s five forces analysis...............................................................................................................8
SWOT analysis................................................................................................................................10
Competitor analysis.........................................................................................................................11
Customer analysis................................................................................................................................12
Planning and Costing...........................................................................................................................14
Sales forecast.......................................................................................................................................16

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New Venture Formation
Firstly, we are planned to starting a new venture Choco fills chocolate company, which is a
chocolate manufacturing company that offers “Punchy Munchy Crunchy” in a variety of
tastes through organic chocolate bars and truffles. The organization will concentrate to
capture philosophies from customers by fulfilling their needs and preferences. The
organization delivers high-quality chocolates, truffles in a clean, and hygiene atmosphere by
serving 78% population of children and youngsters in U.K (Gallo, Antolin-Lopez and
Montiel, 2018).
The company brand name will be “Choco fills” chocolate company, which is a private
limited company and is the most business vehicle. In this, the stakeholders have no obligation
for the company’s debts above the amount payable to the company. The stakeholders are
more willing to invest in the business because of their legal structure and capital structure.
The several options are available for the foreign organization to develop a business presence
in U.K. The most common approach is to develop a framework as suppliers, lenders, and
local customers will be familiar with the overall structure and can retain a higher degree of
control and power (Fosfuri, Giarratana and Roca, 2016).
It is to be state that by setting a private limited company in United Kingdom, the Registrar of
Companies retains several details of companies through a public register held at Companies
House, which incorporates registered number and address, copies of constitutional
documents, details of directors, and share capital (Boyarskaya, Ushakova and Schwaninger,
2014).
The issues, which are involved in creating a new venture, are a crowded market, compliance,
market condition etc. It is seen that in an economy with a creation of small business inhibited
the capability to attain access to customer needs and preferences. The statutory legislation,
tax policies, and industry regulations are significant for the decision-making process. Despite
these, the wider economic market condition can avoid or delay in the establishment of a new
venture. It is to be stated that the market condition when considering a new venture are
rapidly changing the competitive market and highly unstable (Huybrechts, Nicholls and
Edinger, 2017).

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They need to take care of the uniqueness and innovativeness of the product. They should also
ensure that premium chocolate offers smooth-melting and signature intense chocolate taste.
They should take care of the intensity of the product, which lies in the aspect that custom-
made chocolate with differences to the size, taste, and packaging as per the preference of the
customers. Intensive quality assurance in the selection of cocoa beans indicates that highest-
quality beans should be selected. It this chocolate product, proprietary blend of cocoa beans
that is refined to offer the organization’s intense and different chocolate taste. Then, it has to
be noted that the business signature flavor profile is constantly maintained and managed in all
chocolate products. It induces the customer to buy the products as it safeguards that chocolate
melts in the mouth. It is seen that nowadays individual looking for tasty chocolates because
of the competing nature of the environment. It is a good opportunity to involve in the
chocolate industry because of the prospect to generate positive revenue and growth. It will
progressively become the choice of every people in the United Kingdom and create
productivity (Sarasvathy et al., 2014).
Background and Branch
The Chocolate industry is evaluated around 45,000 tonnes valued at approximately $8
million. Bars of chocolate such as milk chocolate, truffle, nestle milky bar, Amul, and dairy
milk have covered the biggest segment accounting for 37% of the total market as per value.
The chocolate companies have increased sales, which have been targeted to attract adult
audiences. It can be displayed as snack food for the new target audiences and characterized
by huge expenses, price sensitivity, high volumes, and low margins. It has been rising at a
steady growth rate of 34% (Schjoedt et al., 2013).
Unique Selling Proposition
The uniqueness of the product lies in stability and flavor. It should be according to the
customer’s expectation and preferences.
Stability
The stability and reliability of the product made from two distinct skim milk and cocoa
powders. It is to be stated that highly stable chocolate generated from sustainable aspects that
will offer a more favorable alternative to chocolate customers in the U.K. confectionary
market (Jia et al., 2016).

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Taste and Flavours
Choco fills will give a huge rivalry to its competitors through taste and flavors. It will offer
“Punchy Munchy Crunchy” in diverse flavors with high quality such as vanilla, crunch,
coffee, dry fruits, and caramel flavor to the customers. It is stated that utilizing high quality of
cocoa will improve the taste and flavor of chocolates. Choco fills will be defining the taste
and flavor of chocolates and it is best to share among relatives and friends (George, 2016).
Company values
Their main objective is to deliver customer with the best quality products to the best interest
of the customers.
Research and Innovation
It states that innovation will generate value for our customers. Maintaining production
processes and innovative research will attain brand loyalty of the customers and develop high
customer retention. They will concentrate on the development of the best quality products
and progressively innovate as per the positioning and nutritional values (Running, Hayes and
Ziegler, 2017).
Quality
Quality assurance induces those customers who are highly conscious about their health and
hygiene. Choco fills will deliver good quality products to the best interest of customers in
sustainable development and hygiene in order to meet the standards of U.K. standard and
Quality Controlled framework (Recanati, Marveggio and Dotelli, 2018).
Core Competencies
The core competencies on which the organization will compete are:
High quality
They need to take care of consuming the “Choco fills” as it is of supreme quality and
generate productivity. They have sufficient quantities of cocoa beans and become sticky at
room temperature. The Choco fills chocolate company will have to ensure that a customer
gets quality products at low cost (Pandi and Watson, 2018).

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Taste
The Choco fills chocolate company maintains the pleasure in tasting the chocolate as it is
hard to focus on the particulars of flavor. The customer would describe for the chocolate as
Punchy Munchy Crunchy (Sharma and Ghosh Choudhury, 2014).
It is to be stated that the main objective behind this is to attain customer loyalty, confidence
and market share in the U.K. industry. They can utilize these Choco fills as gifts to their
customers and business clients, which help an organization to develop and grow.
Resources
The business issues involved in the Choco fills chocolate company, as it is the most exciting
product in the confectionary industry. Many products are out-dated as Choco fills maintain a
pattern of growth and success and continues to innovate as per the needs and preferences of
the customer. In the United States market, dark chocolate filled with nuts and essences such
as caramel, fruits, and chili are becoming common. The negative health connotations of
chocolate will continue to decrease sales in the United Kingdom. As, people are more
focused towards a healthy diet and need not be compromised with this, which can be a
challenge faced by the Choco fills chocolate company. Their products can stay in the market
as it can capture the health trends of the customers and success can be achieved (Nelson and
Phillips, 2018).
They cannot achieve its goals and objectives, which states that profitability and growth can
be achieved. They should develop its highest market share and compliance with the
regulation of the United Kingdom. They should take care of health and hygiene as always
provide customers with good quality and tasty chocolate product (Jones, Comfort and Hillier,
2016).
The resources involved in the Choco fills chocolate company are-
 Labour-They is the most important asset of the company as they involve transporters,
farmers, etc., which help the organization to grow and develop.
 Capital-It is the start-up capital to launch a company, which produces products and
innovate in a distinct way.
 Manufacturing, distribution, and marketing-They are also the most important
elements, which help in the careful planning of the business.

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 Raw-material-It is an important resource, which involves milk, packaging material,
which is required for production processes of Choco fills chocolate company (Berlan,
2016).
Their primary goal is to attain customer loyalty and generate awareness among the customers
and society. It is the primary responsibility of the Choco fills chocolate company to attract
them and maintains the profitability, success, and growth of the business. They should spread
the message of good quality chocolate through the internet, television, billboards, and print
media. The digital marketing can also play an important role as they can spread awareness
through Facebook, Instagram, Twitter, and other social media channels. In this way, the
Choco fills chocolate company can easily grab the minds of the consumers and focus on
increasing the sales and profitability of the company (Colley, Fretwell and Bourdeau, 2017).
Market Research
Market segment
The segmentation of the market for Choco fills chocolate company is depending upon three
aspects. The first aspect is the gift segment as providing chocolates as gifts is a trend that is
rapidly growing in the United Kingdom. The next segment is based on geography as
chocolate is segmented upon customer preferences, which are sold in the areas, which
consumes more chocolates. The last segment of the market is income and revenue as higher-
market groups are ready to pay for premium chocolates. They also need to cater to the needs
and preferences of the lower-income groups also (Poelmans and Rousseau, 2016).
Target Market
The population of the United Kingdom is approximately 32.57 million consists 89% ration of
children and youngsters. Choco fills will target children and youngsters as they are more
expected to prefer chocolate or it can be stated that they love chocolates more than any other
confectionary. It is not just the flavor and taste but also the happiness on the people face
comes out from the chocolate (Lancaster and Massingham, 2017).
Market Size and Trends
It has been predicted that the chocolate market in the United Kingdom will develop to $ 96
million in 2019 from the $89.3 million in 2015. Presently, Asia is maintaining sales in the
market as it has lower penetration in the market and is expected to hold a 30% market share

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in 2019. It has been seen that it is expected to rise to $23.7 million in 2019 from the $19
million in 2015. Their market is expected to generate a high CAGR degree of 6.8% because
of the lower penetration (Neilson et al., 2018).
The United Kingdom chocolate market is expected to rise by a value CAGR of approximately
9% at continuous prices of 2018 during the forecast period, which is aligned with the value
CAGR of 8% at continuous prices of 2018 during the increase in development rate. It is
attributable to the penetration of chocolate product in the children and youngster segment
(Lipton et al., 2015).
Porter’s five forces analysis
Competitive Rivalry
 The chocolate market is a developing market that slowly increases the competition
between the competitors in the industry.
 The chocolate market has both high fixed cost and storage costs.
 The chocolate market has high exit barriers.
Threat of new entrants
 It has been stated that its level of competition is intense from the well-developed
brands.
Competitive
Rivalry
Threat of
new
Entrants
Bargaining
power of
buyers
Threat of
substitute
products
Bargaining
powers of
suppliers

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 Their cost of legal requirement requires registration of the company.
 They have well-developed distribution and marketing channel.
 Their start-up and advertisement costs are high because of the business premises as
they are at the initial stage.
Bargaining power of buyers
 The chocolate market has an innovated product, which decreases the powers of
buyers.
 It has been stated that buyer substituting costs in the cocoa and chocolate industry is
moderate to rise as the product is differentiated.
 Departmental stores are the major customers as large volume retailers can decrease
the profit and revenue.
 It has been stated that buyer has lack of threat of backward integration.
Threat of Substitute products
 The threat of substitute chocolate products in the United Kingdom is high.
 They must compete with various substitute products such as ice-cream-brownies;
bakery items can give threat to the industry’s profitability.
Bargaining powers of suppliers
 It has been stated that the bargaining powers of suppliers are moderate.
 The suppliers of the cocoa and chocolate market have substantial bargaining power
over the market due to the limited number of suppliers.
 In this market, the bargaining power of the supplier group is the reliance of the
industry product on the supplier product.
 It has been predicted that if the supplier’s product does not meet the expectations of
the customer then the industry will suffer largely (Wilson, 2015).

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SWOT analysis
Strength
 It has been seen that customers are craving
for best quality chocolate product and it
serve well to persuade customers.
 A large group of professionals is
continuing the Choco fills chocolate as a
gift and spreading the culture of fine
chocolate.
 They are matching the needs and
preferences of the customer as it is raising
the demands.
Weakness
 It has been stated that competition is
intense and industry is saturated.
 The profit margins are discouraging as
it faces difficulties in maintaining a
cost-effective business, which is the
greatest weakness of the market.
 In today’s era, the competition is
intense and in the promotion of these
chocolate products need much
investment.
Opportunities
 There are business-to-business
opportunities as to fulfill the needs of the
customer's standards should be raised.
 With the increase in reputation of the
confectionary industry in U.K., they are
looking forward to selling and promote the
chocolate products in the overall market.
 The social media can be utilized for great
exposure in satisfying profit margins for
Choco fills chocolate company.
Threats
 They are facing threat with big
manufacturers and dealers who are
trying to give trouble.
 It is been predicted that many
companies are now generating low
margins.
 Many people want that their health
should not be compromised and seek
that juices should be consumed despite
chocolate.
(Beg et al., 2017)

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Competitor analysis
Competitive
factors
Cadbury Nestle Mars Choco fills
Unique Selling
Proposition
Taste Quality Quality and
Flavour
Innovation and
Stability
Products Dairy Milk, Fruit and
Nuts, Caramel
Sonnet and
Paradise
Snickers and
Mars
Truffle
Price 30-40 40 and above 35 40-60
Promotion Ad Campaign Direct Selling TVC’s Sales
Promotion
Company size Very large Large Moderate Moderate
Market share 56% 45% 30% 40%
Quality High Good Low Good
(Madar, 2018)