Marsa’s Candy Store
By: Maryam Mardo
Agenda
Business and Product
Porter’s Five Forces Models
Buyer Power
Supplier Power
Threat of New Entry
Threat of Substitution
Rivalry Among Existing Competitors
Where ‘The Candy Store’ aligns?
Techniques
Why these techniques would work?
Logo
References
The business aims at launching a candy store in Metro Detroit in the State of Michigan.
The main products of the business would be an organic candy and a sugar-free chocolate (Gaines, 2019).
Target market of the business would be the people who want to attain sweet satisfaction without consuming artificial flavors and items.
Business and Products
Porter’s Five Forces Model
Rivalry among existing competitors
Threat of new entry
Buyer Power
Threat of substitution
Supplier Power
In US candy market, the power of buyers is high because of increased number of new products (Grand View Research. 2018).
There are many substitutes available to the consumers which increase buyer power.
Price sensitivity of the buyers is high that drives the confectioners to lower the price of the products (Haribo V Lutti. 2014).
Buyer Power
Supplier power is not high. The main items which are used in manufacturing of chocolates and candies are gelatin, colorants, cocoa and aroma.
Many suppliers of the abovementioned ingredients are accessible to the confectioners. Therefore, supplier power of bargaining is low.
Supplier Power
Threat of New Entry
Threat of new entrants is low to medium because the customers can not become fully aware of the quality offered by small candy businesses or know about the brand name.
The confectionery market is a concentrated market and therefore, threat of new entry is not very high (Haribo V Lutti. 2014).
Threat of Substitution
Threat of substitution is high because there are many alternatives available in the market that can satisfy the same need.
Anti-obesity campaigns have triggered new offers in candy industry (Haribo V Lutti. 2014).
Rivalry Among Existing Competitors
Competition is high among current confectioners.
There are various substitutes and well-established competitors in the market in Michigan.
Buying power of customers is high that also enhances rivalry among current competitors.
Where ‘The Candy Store’ aligns?
‘The Candy Store’ aligns in category of new entrants.
It aligns this way because this is an entirely new business in the market. However, the threat of substitution is already there and high.
Rivalry among current competitors is high, hence, ‘The Candy Store’ has to work hard to be established in the market in Metro Detroit, Michigan.
Techniques
The three techniques which I would use for my business are
The use of simple and organic ingredients in candies/chocolates (Nunes & Watts, 2016).
No food colorant
A combination of fruit and chocolate, and candies and fruits
Why these techniques would work?
These techniques would work for this candy business because of the curr.
1. Marsa’s Candy Store
By: Maryam Mardo
Agenda
Business and Product
Porter’s Five Forces Models
Buyer Power
Supplier Power
Threat of New Entry
Threat of Substitution
Rivalry Among Existing Competitors
Where ‘The Candy Store’ aligns?
Techniques
Why these techniques would work?
Logo
References
The business aims at launching a candy store in Metro Detroit
in the State of Michigan.
The main products of the business would be an organic candy
and a sugar-free chocolate (Gaines, 2019).
Target market of the business would be the people who want to
attain sweet satisfaction without consuming artificial flavors
and items.
Business and Products
2. Porter’s Five Forces Model
Rivalry among existing competitors
Threat of new entry
Buyer Power
Threat of substitution
Supplier Power
3. In US candy market, the power of buyers is high because of
increased number of new products (Grand View Research.
2018).
There are many substitutes available to the consumers which
increase buyer power.
Price sensitivity of the buyers is high that drives the
confectioners to lower the price of the products (Haribo V Lutti.
2014).
Buyer Power
Supplier power is not high. The main items which are used in
manufacturing of chocolates and candies are gelatin, colorants,
cocoa and aroma.
Many suppliers of the abovementioned ingredients are
accessible to the confectioners. Therefore, supplier power of
bargaining is low.
Supplier Power
Threat of New Entry
Threat of new entrants is low to medium because the customers
can not become fully aware of the quality offered by small
candy businesses or know about the brand name.
The confectionery market is a concentrated market and
therefore, threat of new entry is not very high (Haribo V Lutti.
2014).
Threat of Substitution
4. Threat of substitution is high because there are many
alternatives available in the market that can satisfy the same
need.
Anti-obesity campaigns have triggered new offers in candy
industry (Haribo V Lutti. 2014).
Rivalry Among Existing Competitors
Competition is high among current confectioners.
There are various substitutes and well-established competitors
in the market in Michigan.
Buying power of customers is high that also enhances rivalry
among current competitors.
Where ‘The Candy Store’ aligns?
‘The Candy Store’ aligns in category of new entrants.
It aligns this way because this is an entirely new business in the
market. However, the threat of substitution is already there and
high.
Rivalry among current competitors is high, hence, ‘The Candy
Store’ has to work hard to be established in the market in Metro
Detroit, Michigan.
Techniques
The three techniques which I would use for my business are
The use of simple and organic ingredients in candies/chocolates
(Nunes & Watts, 2016).
No food colorant
A combination of fruit and chocolate, and candies and fruits
5. Why these techniques would work?
These techniques would work for this candy business because of
the current demands of the buyers that are the organic/simple
ingredients and honesty.
Logo
References
Gaines, M. (2019). How to start a candy store business.
Retrieved from https://smallbusiness.chron.com/start-candy-
store-business-4640.html
MindTools. (n.d.). Porter's five forces. Retrieved from
https://www.mindtools.com/pages/article/newTMC_08.htm
Grand View Research. (2018).U.S. candy market size, share &
trends analysis report by product (chocolate, non-chocolate
candy), by end use, competitive landscape, and segment
forecasts, 2018 – 2025. Retrieved from
https://www.grandviewresearch.com/industry-analysis/us-
candy-market
Haribo V Lutti. (2014). Porter five forces’ analysis. Retrieved
from https://haribolutti.wordpress.com/2014/10/19/porter-five-
forces-analysis/
Nunes, K. & Watts, M. (2016). State of the industry:
Confectionery Retrieved
fromhttps://www.foodbusinessnews.net/articles/7239-state-of-
the-industry-confectionery
6. Thank You!
Maryam Mardo
System Request
Business Drivers
This project was motivated by the need to fill the existing niche
in the candy market. There exist very many brands and variety
of products in this sector as well as substitutes. The main goal
of anyone buying candy has been and is mostly the sweetness.
This is achieved by having several flavors and sweeteners
blended to achieve this. Candy is a simple product which a
consumer takes a little time to think about the purchase and
most of the purchase is usually impulse buying. However, its
worth noting that today's customer is looking for more than
value for money in terms of quantity and quality. Health
concerns have taken a stage in today's consumables market.
Information sharing and access to internet access have made
today's customer more aware of their health and therefore any
food item should address health concerns clearly for it to be
competitive. In the candy and chocolate market, there is little
effort to address these health concerns. This creates a niche of a
brand of chocolates and candy which are organic and sugar-free.
This being an original idea requires proper distribution and
marketing channels. An online platform will serve this purpose
better because of the expected wide coverage of the product.
7. The company
As earlier stated, this company will be a candy store that will
deal with sugar-free chocolate and organic candy. The company
will be located in metro Detroit in the state of Michigan. The
business will operate both online and will also a physical store.
The store will also act as the manufacturing area so as to cut
cost and maximize the available space. Below is the description
of the company’s core values
Company name
Marsa’s Candy Store
Mission
To produce organic and sugar-free products with natural
ingredients without eliminating the original candy and chocolate
taste at affordable prices for the health conscious clients
Vision
To be the market leader in the new niche of healthy candy and
chocolate
Tag line
“you don’t have to worry about your health when it comes to
candy and chocolate”
Objectives of the website
The website should ideally cater to several users. The users and
their needs are highlighted below.
a. Customers
As described earlier, the customer will be both online and over
the counter with distributors also classified as customers. The
customers should be able to view available products fully
described and prices well illustrated. The customers should be
able to view available quantity and make orders.
b. The system admin
The system admin should be able to add new products, delete
products and set prices. Also, the system should be able to give
reports on the quantity available, quantity sold, orders and well
as the company performance. Data on the cost of raw materials
8. should also be available and the profit margin available for the
preparation of financial statements. He should be able to
monitor employee and customer accounts with actions such as
approval or deactivating
Technological requirements of the website
This being an online store with possible payment check out
system, the two opposing parameters will be the cost since the
company is a startup with limited capital and security since
financial data will be provided. hosting will be outsourced as
opposed to having local servers which will be costly. Secure e-
commerce shopping cart software
1. Java- to ensure that the website is versatile with all browsers
and also make debugging easier
2. Javascript- this will make the website interactive and make
back end and front end development easy.
3. PHP- This will ensure that the business function and
scalability is achieved
4. CSS and HTML- this being an online shop will need the best
interface design since it sets the image of the company
5. MariaDB- This is a cheap option for the database needs.
6. nsProtect™ Secure SSL Certificates
7.
User interface
Colors
To be consistent with the organic theme while at the same time
highlighting a good taste, colors close to nature will be used in
the background. Green range of blues, cerulean and some shades
of blue will be used. To highlight good taste the products will
be highlighted in orange, yellow and purple
Homepage
The homepage will contain several pages on a drop-down format
with links opening on different pages. The pages will be
1. About the company
2. The products
3. Blog
9. 4. Place order
5. Contacts
Schedule
The website will take three weeks to be completed and
presentation and installation to be done on the fourth week. This
will start after the proposals have been analyzed and a winner is
chosen
Phase 1
Week 1
System request
Feasibility study
Risk Assessment
Project plan
System proposal
Phase 2
Week 2
Requirements Definition
Use cases
Process model
Data Model
Architectural Design and network diagrams
Hardware specifications
Software specifications
10. Phase 3
Week 3
Data dictionary
Data flow Diagrams
Entity Relation Diagram
Database Design
Interface Design
Phase 4
Week 4
Development environment
User Interface creation
Database creation
Business logic
Website creation
Documentation Review
Project presentation.
Evaluation criteria
The major consideration will be cost and knowledge of the
major security features. Knowledge and experience in the use of
the stated programing language will be a major consideration.
The other main Area will be the ability to stick to the schedule.
Service level agreements
11. The minimum criteria should be met. The project should be
piloted for at least a month before the handover. This will
follow by six months of observation where the vendor will be
required to be available for any troubleshooting.