Cocoa Delight's Management: Strategic Analysis & Diploma Report

This report presents a strategic analysis of Cocoa Delight, a dark chocolate store chain in Melbourne, aiming to expand nationally. It includes an introduction to the company's mission, vision, purpose, values, and strategic directions, followed by a summary of a meeting with the CEO to discuss marketing objectives. The situational analysis encompasses a PEST analysis, legal and ethical requirements, the impact of organizational strategic direction, and a SWOT analysis. The report evaluates the effectiveness of previous marketing efforts, focusing on profit increases and customer loyalty programs, highlighting the strengths, weaknesses, opportunities, and threats facing Cocoa Delight in the competitive Australian market. This document is available on Desklib, a platform offering a wide range of study tools and solved assignments for students.

Running Head: ADVANCE DIPLOMA OF MANAGEMENT 0
ADVANCE DIPLOMA OF MANAGEMENT
8/1/2018
COCOA DELIGHT’S

ADVANCE DIPLOMA OF MANAGEMENT 1
TASK 1 -
1) Summary
Cocoa Delight, a chain of dark chocolate stores in Melbourne specialized in making
unique, creative, and handmade dark chocolates and was founded in 2000. The company was
established with 22 stores in the most popular city in Australia – ‘Melbourne’ and now they
were targeting for increasing their branches to 100 around Australia. The Company process
more than ten types of best Cocoa from different nations and thus produce large varieties of
dark chocolates tailored specifically to the dietary requirements. Considering the Australian
food and beverage industry, none of the other competitors was having this type of innovative
process of making gourmet handmade dark chocolates.
According to the annual report, Cocoa Delight was on the path of becoming a national
retail brand within the next 5 years with it's high-quality and unique dark chocolates as well
as due to the highly skilled and dedicated staff who is providing excellent customer service
and satisfying the customers’ needs effectively (Frow & Payne, 2007).
Assuming the marketing manager of Cocoa Delights, which is a chain of store in
Melbourne selling dark gourmet chocolate, the author would incorporate the yearly report
that is as of late displayed by Cocoa delights. This report contains the situational analysis
including PEST analysis and gives clear requirements of legal and ethical factors in the
organizations. The strengths, weakness, opportunities, and threats of the market were also
analyzed according to the market structure and requirements.
2) Introduction
 Mission or Goals – The mission of Cocoa Delights is to become the leader in the
whole Australian market with their premium quality gourmet chocolates and
maintaining the promise to do fair business with local and international suppliers
and promoting a sustainable environment. Other goals of the company are to
promoting continuous improvement, reducing ecological footprints and work with
sustainable behaviour.
 Vision – The vision statements states that the Cocoa Delights will expand in the
Australian market with their high-quality chocolates, blending imported cacao
with local sugar, fruit, nuts and dairy products. Cocoa Delight will produce large
range dark chocolate with greater varieties emphasizing on the health benefit and
customer preference (Clower, 2014). This will make them a unique organization
which cans satisfy the need of the national market of Australia.

ADVANCE DIPLOMA OF MANAGEMENT 2
 Purpose –
 Reducing environmental impact by improving production and distribution
processes.
 To expand in every city in Australia and becoming the high-quality
Australian chocolate brand.
 To make and establish themselves as a national retail brand for the
chocolate within 5 years.
 To communicate the advantages of Dark chocolates in the medical terms
through social media and promotion (Quesenberry, 2015).
 Values –
 Promoting excellent customers service - so that the customers can be retain
for the longer period of time (Lemke, Clark & Wilson, 2011).
 Maintaining quality and sustainability - which will help in making a strong
brand identity.
 Diversify with varieties in chocolate, expansion and growth – to provide
economy of choices and selection.
 Encouraging innovation and creativity using handmade dark chocolates –
helps in providing an edge over the competitor
 Promote leadership programs with self-direct teams – helps in the
development of staff which improves customer service (Loman, Vatland,
Strickland-Cohen, Horner & Walker, 2010).
 Customer oriented management – Raise expectation of customers by
providing quality satisfaction.
 Strategic directions –
 One of the main and important strategic decisions is to position Cocoa
Delights as the leader in making dark premium hand-made chocolates and
increase their market reach in the following 5 years.
 Next strategic decision is in the direction of creating a huge customer base
through a loyal customer segment and referrals (Stringfellow, 2018).
 Reducing the advertisements costs by placing it in the daily newspaper which
can attract more people and also online advertisement will be done on famous
websites only.
 Create awareness regarding the benefits of dark chocolate with the dietary
requirements.
 Offerings to the public by free samples and tasting sessions to attract them
towards the gourmet chocolates.
 Double-digit rise in the growth rate each year.

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 Targets –
 Within five years, establishing the brand as a market leader in the country.
 Within the next three years, becoming the national and domestic retailer by
making customer mindfulness for the gourmet dark chocolates.
3) A brief summary by meeting with CEO
After establishing various strategic directions for the company, there is a meeting
with the CEO of Cocoa Delight for the discussion of the marketing design so that he can
audit the strategic plan. The aim of this meeting is to find out the extended objectives to
enhance the company marketing for the following five years. Some important aspects
were being procured –
 What will be the development objectives?
 Factors affecting internal and external elements of the organization.
 How will be government new policy will affect the company operation?
At last, it is been clearly visualized the company vision, strategic plan and the
problems they are facing and this all information can help in framing the next structure
of the report.
4) Situational Analysis ( including PEST analysis)
 PEST analysis
 Political factors – The government of Australia promoting a policy which is
based on the conservation of energy usage and the management of waste. Before
this policy, the company has made their shop with the design to be brilliantly
bright which help the customers to shop comfortably. This makes high uses of
energy and power due to lights and air-conditioning. So, to comply with this
policy and to please the customers in the meantime, the company needs to bring
some bright ideas in the satisfaction of both sides.
 Economic factors – The development of the company will bring more job
opportunities for people as the country is facing a high rate of unemployment
with 5.8% and this rise in interest rates will also affect the demand of the
chocolate products.
 Social factors– The social aspect of Cocoa Delight is well good enough as it is
constituted a solid market as a survey demonstrate that more approx. 58% of the
general population can recall the brand easily and this indicates that the
faithfulness with the chocolate is high. Cocoa Delight has to maintain this pattern
as in general, most of the people in various parts are slanted towards the quality
chocolate.

ADVANCE DIPLOMA OF MANAGEMENT 4
 Technological factors – Due to the delay in the broadband rollout, it is
required that IT division has to think for the reinforcement to make it set up.
These setups will later-on help them to make their presence online with various
internet tools of promotion like digital marketing (Ryan, 2016). Also, Internet
retailing selections are growing and most of the retailers taking benefit of this
new present technology.
 Legal and ethical requirements
As time to time, the government implements and changes various policies which
may affect a business organization in the negative or positive way. The new government
regulation based on the efficient use of the energy and focuses on waste treatment so that to
reduce the impact on the environment.
It is now mandatory for the existing and new companies to must reduce power
consumption by the effective use of air conditioners and lighting. This will help the
organization to save various costs and also improve the condition of the environment. But
there is a need for deep understanding for the business firm to find a new solution that can
satisfy both sides of the coins.
Considering the ethical issues and according to the government wishes, the national
firms must specify the product information on its packaging with all necessary ingredients
information and the government wants that the industry should be self-regulated complying
with these issues rather than forcing and passing laws for that. This will also help the
business firm to be socially strong as the goodwill and reputation will be increased.
 Impact of organizational strategic direction
Cocoa Delight needs to focus on national suppliers instead of local suppliers for
finding quality raw-materials source so that it can make high-quality products. The company
must take the advantage of greater geographic benefits to save cost. Along with this, the
company should also focus on the sustainable development, waste treatment and the efficient
usage of the electricity. For the purpose of saving the cost, they have to follow an effective
promotional channel for the advertising whether on the internet or in the daily newspaper.
 SWOT analysis
 Strengths – Cocoa Delight has the most professional and talented employees
and staff which give excellent customer service. They have great and well-
maintained shops which provide customers with a comfortable place to shop with
good quality dark chocolates. Also, as per the survey, they have a high level of
loyal customers. The company is both innovative and creative in making dark
chocolates with different varieties. The lower price of these chocolates and easy
access to the customer is the major advantage for the company. The extensive
product range and economic manufacturing technology are also constituted as
strength for the organization.

ADVANCE DIPLOMA OF MANAGEMENT 5
 Weakness – The main weakness of the company is their limited budgets for
doing advertising and they are continuously struggling for the funding (Moriarty,
Mitchell, Wells, Crawford, Brennan & Spence-Stone, 2014). They also lack in
some part of the brand awareness as well as in online presence. Most of the
customers of the dark chocolates are not aware of the health benefits of eating
dark chocolates (Varghese, 2016). The company also has less male and child
customers’ base and also have fewer outlets in the city as compare to its
competitors. Cocoa Delights is a young company and thus not as strong as
reputation like older brands in the city.
 Opportunities – The growth opportunities are very high in number for the
company as the social trend of chocolate eaters is rising up against expectations
(Fuchs, Steinhilber & Dohnke, 2015). Also, they are the best seller in terms of
selling the dark gourmet chocolates which give them an edge over the
competitors. As the CEO also stated that their mission is now to become a
national retail brand by satisfying the customers with their unique and creative
dark chocolates and this clearly shows that their strategic plan is ready to come in
light. They are also focusing to advertise their products via local daily newspaper
and magazine to attract more customers. If the market budget will increase, their
revenue and sales will definitely show growth in numbers. Also, many of the
competitors are not Australian owned which can help the company as the
customer sentiment is always more towards the parent or Home County.
 Threats – The Company is having a threat from the competitors as the
competitors are selling chocolates imported from other countries with poor
quality but low prices. They are also having competitions from other nation’s
chain of Australia who is also selling dark chocolates and rising interest and
unemployment rates also pose a threat to the company. Others possible threats
can be the company narrow advertisement plan due to the budgets, the possibility
of a recession in the market and changes in import regulations and the policies in
the food and beverage industry (Sharma,Teret & Brownell, 2010).
 Evaluation of the effectiveness of previous marketing undertaking
 Increase in performance against their strategic plan (Profit) – The Company
profits now stand for an account of 46% against 63% set objectives and this
clearly shows that they have to achieve their sales growth objective and they also
have a long list of loyal customers (34,500) which they achieve through loyalty
and referrals programs (Dick & Basu, 1994). The company survey indicates that
around 58% of the general public is easily able to recognize the brand which is a
great achievement and this shows that the company has established strong brand
identity in the market.
 Critical success factors – The Company is needed to increase the imports to
their discount factor (Kasahara & Lapham, 2013). Another necessary factor is

ADVANCE DIPLOMA OF MANAGEMENT 6
that they have to reach the target market segment by adverting online or on
television. Creativity and innovation in producing products and providing quality
services under professional and moral standards of conduct are also critical
success factors (Valentine & Fleischman, 2008).
 The lesson they learned and the key areas for the improvement – The key
areas where they need to improve is the effective allocation of funds for
electronic advertisement. The lesson they learned is the importance of PR which
help the company to lead many articles on their unique offerings. Also, there is an
increase in the social trend of eating chocolates at a higher rate than expected
(Tăut, Băban, Giese, de Matos, Schupp & Renner, 2015).
TASK 3 –
1) Summary
As a marketing manager for Cocoa Delights, the developer’s written statement was –
‘Cocoa Delights’ is the company who is self-reliable for the constant improvement of all the
aspects of our business irrespective of the excellence of the product and services but also our
social sustainability, environment and business. We are truly a sustainable organization and
providing a significant value to our customers. Our vision is to put our thoughts and beliefs in
actions through various programs and focus on other activities also like achieving social
objectives, managing the environment and promising a commitment with the shareholders by
taking the company to the pillar of success. In the future, we will move from local service
providers to the national provider.
In 2016, The Company built a significant retail presence with the stores in Australia.
The Australian government is also pushing the business to focus on sustainability and
environmental issues under waste treatment and conservation of energy (Epstein, 2018).
Hence, there is a need to procure some innovative ideas and plans that can help the
management to solve these issues. We also need to provide products and services according
to the needs and wants of the customers within the framework and in a sustainable way.
Cocoa Delights are proud to be an Australian made company and thus we also comply with
all the government rules and legislation. However, we need to expand our business to the
whole of the nation rather providing local services in a few cities and this can help us to gain
wider geographical advantages like saving of huge operational costs (Stevenson, Hojati &
Cao, 2007). We also need to choose the right media for the purpose of advertising under the
national scope (Brice & Carpenter, 2008). As reaching for 63% of average profit, we expect
to grow and expand through diversifications. In last, we need to focus on raising the revenues
by using cost-effectiveness strategies (Meehan, Simonetto & Montan, 2011).

ADVANCE DIPLOMA OF MANAGEMENT 7
2) Marketing Objectives
a. Brand Awareness
 Compatibility
 A nationwide retail brand
 The Company Marketing Plan (2010)
 Choice of domestic media
 Management of Brand Awareness.
 Cost Management by expanding geographically.
 Cocoa Delights Standards
 Consistency
 The above-mentioned standards need to be implemented in each segment
of the market.
 Encouraging and promotion in television hike.
 Build and maintain consistency with the consumer behaviour and
Competitive Behavior (2010).
 Chairman of the Directors of Boards.
 In each new market, there will be $1.1 million with the effective cash
support in the arrangement.
 Equipped
 In financial planning, 5% of revenue needs to be allocated.
 To make the brand visible in stores, publishers, vehicles and PR
articles.
 $1.1 million for each new market – publicity efforts of television.
 Confirming the collective approval with the Competition and
Consumer Act 2010.
 A frequent criticism from research and studies.
 Legal
 The strategic plan of the management should be in compliance with the
Competition and Consumer Protection Act 2010.
 The company needs to find other ways of providing better services due
to the new law of the government of waste treatment and energy
conservation.
b. Target Category
 Compatibility
 Dominate the market where the operation is done by Cocoa Delights.
 Cocoa Delight will establish as a top chocolate retailer.

ADVANCE DIPLOMA OF MANAGEMENT 8
 Retain old customers and attract new customers (Deng, Lu,Wei &
Zhang, 2010).
 Customer signup for the loyalty program.
 Consistency
 Working under the umbrella of the joint venture can help the company in
the establishment of marketing channels.
 The company services will exceed the expectations of the clients.
 Corporate governance can help the company in achieving the sales
objectives which can be done by the market speculation with the help of
handmade catalogue (Tricker, & Tricker, 2015).
 Equipped
 Appointment with the national consultant Holt & Burrows.
 For funding the budget, 5% of the revenue is needed to be allocated.
 Sharing space for ads, PR articles and billboards.
 With the joint venture partner, the company needs to work closely
(Killing, 2013).
 A full marketing proposal will be settled.
 The budget allocated and set in initial advertising will include an item
from this category.
 Legal
 Self-governed country due to not forcefully implementation of the law.
 Compliance with the rules set by ACCC for the dominant market player
in the industry. These are a set of rules and policy regarding the
competition in the industry.
 Cocoa Delights veto rights.
3) Strategic long-term Objectives
a. Long-term goals – Awareness of the brand.
 Key Performance Indicators (KPIs) – a tool to evaluate the success of the
business aligning with the performance.
 Revenue growth and inventory growth rate accomplished.
 Already captured market will spend 20% of the advertising budget so
that brand awareness can be increased.
 New markets are also achieving sales objectives as it was shown by
the report stating of 30% of sales of chocolate.
 To attain 18% market share break-even the goal of 3 million should
be achieved.

ADVANCE DIPLOMA OF MANAGEMENT 9
 Risk Management – This aspect is very significant to the operation of Cocoa
Delight. It helps the organization to prioritize the risk so that the effect of
uncertainty can be minimizes. Firstly, the feedback from Holt & Burrows should
need to be regularly checked. Secondly, all executives and managers are duly
accountable for prominently showing the brand. In last, the business also needs
compliance with the Competition and the Consumer Act, 2010. This assessment
of risk management helps the organization in achieving the vision and mission
effectively (Strbac, 2008).
b. Long-term goal – Market Share
 Key Performance Indicators (KPIs) – a measure to tell how effectively a
company is achieving its goal.
 Establish and opening new stores according to the marketing
channel.
 30% of chocolate produce by machines states that new markets are
doing well.
 18% market share before the breakeven level of sale is certain to
guarantee.
 Each capital city with 10% market in which Cocoa Delight operates.
 Risk Management – In this aspect, Haigh’s Chocolates with Cocoa Delights
veto (legal contract) will acknowledge that all plans relating to marketing are
conducted with prominent ethics and in compliance manner so that it will help in
the risk management. Also, the company should visit the national consultant Holt
& Burrows. It also needs to ensure that all marketing plans and strategy moving
forward with the set rules by ACCC for the players in the industry to attain more
market share.
4) Summary of CEO meetings
Meeting Date: 03/08/2018 Meeting Time: 15:00pm to 18:30pm
Present at Meeting:
- Marketing Manager: (insert your name here)
- CEO: (insert your Assessor/teacher name here)
 Minutes of Meeting (live written record of a meeting)

ADVANCE DIPLOMA OF MANAGEMENT 10
 1st: Marketing objectives of the organization like market share, brand
awareness and category market.
 2nd: Response from the CEO includes two most important aims. Note of
identified long-term objectives to be further developed.
 3rd: The plan to improve the company based on these goals.

ADVANCE DIPLOMA OF MANAGEMENT 11
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