Enviroment forces that affect the chclate industry


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Enviroment forces that affect the chclate industry

  1. 1. Unit 1 Individual Project 1 Victoria RockAmerican Intercontinental University Unit 1 Individual ProjectMKTG 205 – Principles of Marketing March 4, 2012
  2. 2. Unit 1 Individual Project 2 AbstractTo correctly identify opportunities and threats to a product, Marketing Managers need to have agood understanding of what threats as well as opportunities will affect the price of their product.How they overcome these threats will have a great impact on the success or failure of the productthey are trying to introduce to the consumer. (Developing Successful Marketing andOrganizational Strategies, 2011)
  3. 3. Unit 1 Individual Project 3 Environment Forces that affect the Chocolate IndustryIntroductionIn the chocolate bar industry there are three marketing environment forces that will have animpact on the chocolate bar, they are: price of cocoa for making chocolate, cost of transportation,and competition of the market. By examining each of these we will get a better understanding ofwhat to aspect and how to deal with the issues as they arise.Market Force 1: Price of Cocoa for making Chocolate The price of the resources are going to make a difference in the ability to make a product thatcan be priced in a competitive market environment, Taking into account the economy and cost ofresources, the pricing is an important part of the product and appeal to the target markets. Pricingof resources may make lower grades of coca more attractive, but the competition may be a keyinto how much one is willing to sacrifice in terms of product quality or pricing. (INDUSTRYPROFILE: Candy Manufacturing, 2012)Market Force 2: Cost of Transportation Transportation is another key to pricing. Due to fuel prices rising, adjustments will haveto be made to cover costs. What most likely will be part of the pricing consideration would bemaking sure that the product arrives in good condition and a timely manner because it will affectthe products reception as well as how it is perceived by sellers and buyers. (INDUSTRYPROFILE: Candy Manufacturing, 2012)Market Force 3: Competition of the Market
  4. 4. Unit 1 Individual Project 4 Competition makes pricing and placement considerations very important. Too much marketsaturation can mean prices have to be kept low or placement costs on shelves may be to high.With there being so many different kinds and flavors of chocolate bars already in the market,placement will be a key in attracting the eye of buyers. (INDUSTRY PROFILE: CandyManufacturing, 2012)Strategies to Overcome the Threats The economy has actually meant a boost for items like the chocolate bar, so the companywould want to capitalize on this less expensive mood enhancer and sweet sensation. And whilethere are many competitors, not all of them are new and getting a positive spin. With the use ofnew flavors, adding things for healthy diets, or any other attraction will be very helpful. Forhelping with transportation, we need to look closely at all methods. Keeping up to date weeklyon costs of transportation and rates can also help in keeping the price of the product in thecompetitive range. (INDUSTRY PROFILE: Candy Manufacturing, 2012)Strategies to Capitalize on the Opportunities Strategies that can be used to capitalize on the opportunities of this product would be makingsure that the resources for making the product are the best quality at the lowest price. Creatingexcellent negotiation skills to keep prices down and under control will also be very helpful. Alsohaving people who are experts in the field as well as know growers and distributors that they canwork with is another important aspect in keeping resources down. (INDUSTRY PROFILE:Candy Manufacturing, 2012)Conclusion
  5. 5. Unit 1 Individual Project 5 From the above discussion it can be concluded that by understanding the forces that affectthe product, to coming up with the proper solutions to solve them, we will be able to provide aquality product at an affordable price to the consumer while at the same time helping to increaseprofit for the company.
  6. 6. Unit 1 Individual Project 6References(2011). Developing Successful Marketing and Organizational Strategies. In H. S. Kerin R., Marketing (pp. 24-49). New York: McGraw-Hill/Irwin.INDUSTRY PROFILE: Candy Manufacturing. (2012, Feburary 27). Retrieved from First Research: http://mergent.firstresearch- learn.com.proxy.cecybrary.com/industry.aspx?chapter=0&pid=238