The UK Revenue in the Confectionery segment amounts to £11,996m in 2020. The market is expected to grow annually by 1.2% (CAGR 2020-2025). In global comparison, most revenue is generated in the United States (£136,653m in 2020). In relation to total population figures, per person revenues of £176.70 are generated in 2020. The average per capita consumption stands at 27.1 kg in 2020. Revenue (2020)+7.1% yoy £11,996m Average Revenue per Capita (2020)+6.5% yoy £176.70 The average price per unit in the Confectionery segment amounts to £6.53 in 2020

1. UK Chocolate Industry & Market Dynamics
Presenter: Mrinmoy Roy
Email: mroy2612@gmail.com
URL: https://www.linkedin.com/in/mrinmoy-roy/

2. Project Summary:
Purpose: To help increase the sales of Company X by designing a Customer Loyalty Program with relevant
approach considering the UK Chocolate Industry & Market Dynamics
Core Deliverables:
1. To use Market Data & Customer Data to craft more targeted Loyalty Campaigns
2. To differentiate the Loyalty Program from the existing ones
3. To make the Loyalty Program easily accessible to the customers
4. To make a push towards Brand Advocacy
5. To have a continuous monitor on the program and optimize accordingly
Make Up of Consulting Delivery Team:
1. Market Research Expert
2. Marketing & PR Expert
3. Data Analyst
4. Technical Team for Program Monitoring & Sales Optimization

3. Market Summary:
Market Definition:
Confectionery is defined as foods with a relatively high sugar content.
The Confectionery segment contains chocolate and chocolate products, sugar confectionery
(such as chewing gum and sweets), ice cream, and preserved pastry goods and cakes.
This segment does not include spreads containing cocoa and jams.
The Market Size:
• The UK Revenue in the Confectionery segment amounts to £11,996m in 2020.
• The market is expected to grow annually by 1.2% (CAGR 2020-2025).
• In global comparison, most revenue is generated in the United States (£136,653m in 2020).
• In relation to total population figures, per person revenues of £176.70 are generated in 2020.
• The average per capita consumption stands at 27.1 kg in 2020.
• Revenue (2020)+7.1% yoy £11,996m
• Average Revenue per Capita (2020)+6.5% yoy £176.70
• The average price per unit in the Confectionery segment amounts to £6.53 in 2020.
Scope:
IN-SCOPE
•Chocolate products
•Sugar confectionery
•Cookies
•Ice Cream
OUT-OF-SCOPE
•Nuts
•Dried fruit snacks
•Chocolate spreads
RevenueRevenueGrowthAvg.Rev.perCapita
Avg. Price per Unit
Source: www.statista.com

4. Market Summary:
Core Competition: There are 7 Big Players in the Market,
Mondelez Intl. have highest Market Share amongst all of them.
The Key Market Indicators & Challenges:
• Population: In mid-2018, the population of the UK reached an estimated 66.4 million.
The UK population’s growth rate in mid-2017 and mid-2018, at 0.6%, was slower than any year since mid-2004.
• Economy:
Contraction of Economy, Fall in GDP by 7% in 2020 and public sector
borrowing rises above £200 billion in 2020–21, over £150 billion more than in the OBR's forecast
at budget time. The government’s announced measures to limit the long-term economic effect of
Covid-19 are estimated to add about £75 billion to the deficit in our main-case scenario.
It is estimated that without these measures GDP would have fallen by a further 2 per cent.
• Business Condition:
1. There was improved optimism among food and drink manufacturers, but net confidence remains negative.
Asked about their level of confidence for the year ahead, responses were that there was increased confidence,
but this is coming from quite a low base. The survey also revealed that larger businesses were more optimistic
than smaller ones. Hard data has showed that the food and drink sector has performed slightly better than overall
manufacturing industry in terms of [growth in] gross value added. Amongst the surveyed food and drink manufacturers,
the main concern to business was the cost of ingredients, as a result of exchange rate fluctuations.
Second on the list was inconsistent policies on plastic reductions, closely followed by issues related to
border and customs.
2. Regarding regional differences in productivity while there has been evidence of disparity across most industries,
amongst food and drink manufacturers, data from 2018 (the most up-to-date data for the food and drink sector) revealed
there is an even spread across the UK. Another participant mentioned that the concern around productivity in the regions
has largely been centred around access to finance. There is increasing evidence that a lot of start-ups are looking to move to
London because access to finance has limited productivity growth across the regions, with 2/3rds of investment schemes done
in London South East.
• Household Income: UK median household income now stands at £29,400; Mean household income at £35,300
Median household disposable income in the UK was £29,400 at the end of the financial year 2019, up 1.4% or £400 compared
to the end of the financial year 2018, after accounting for inflation. Growth in the median income of individuals living in retired
households was also broadly unchanged in FYE 2018 compared with the previous year, with a median of £23,900.
30.6
22.314.3
11.9
10.3
6.6
4
Market Share of Top 7 Co's in %
Mondelez International Mars, Incorporated Own Label
Nestle S.A. Others Ferrero S.p.A.
Lindt & Sprungli AG
Source: www.niesr.ac.uk

5. Market Summary:
The Key Market Indicators & Challenges:
• Consumer Spending:
The British Retail Consortium trade body said retail sales values rose by 3.4% in annual terms in June, the
biggest increase since May 2018, although the reading was flattered by the comparison with unusually weak
sales in June 2019. The turnaround is especially sharp when compared with a 19.1% fall in spending recorded
in April, when lockdown restrictions were greatest.
Food, computing and furniture sales were bright spots last month but although clothing and health and beauty
sales remained weak. Barclaycard said spending on food and drink outside the home was down by 56% year-on-year
in June, before the lockdown eased - though this represented an improvement on the 70% fall in May, as more food was
bought to takeaway or for delivery. Last week finance minister Rishi Sunak said the government would fund discounts on
eating out on Mondays, Tuesdays and Wednesdays in August, and also slashed value-added tax for the hospitality and
domestic tourism sector.
• Consumer Price Index: It is declining
• Tax Rates: Under UK VAT law most food of a kind used for human consumption is zero rated.
However, confectionery, including chocolates, sweets and biscuits, is liable to full VAT at 20%.
Source: www.avalara.com
• Gross Domestic Product: The Gross Domestic Product (GDP) in the United Kingdom was worth
2910 billion US dollars in 2019, according to official data from the World Bank and projections from Trading
Economics. The GDP value of the United Kingdom represents 2.40 percent of the world economy.
Source: www.economictimes.com
Source: www.ons.gov.uk
Source: www.tradingeconomics.com/uk

6. Problem Statement:
A leading UK Chocolate Brand has seen a downturn in sales due to new competition in the market. Analysis work has shown
the need for a customer loyalty programme.
Solution Overview:
Proposed Solution: Retain Customer
By
• Creating a loyalty proposition that stands out from the competition
• Capturing and rewarding customer interactions across all touch points
• Tracking and Utilizing customer profile data and buying behavior patterns
• Designing a loyalty program with a high perceived value
• Ensuring customer awareness and understanding of the program benefits
How to do it:
• Omni-channel loyalty program 1 with 360 degree engagement
• Rewards for customer interactions on site, offline and social
• Use best practices to name the loyalty program, customize redemption options and loyalty tiers (Gamification & stages to
earn points)
• Comprehensive reporting and analytics for Key metrics
• Proactive Promotion strategy for your loyalty program

7. Customer Loyalty Scheme:
• 360 Degree engagement loyalty platform
• Ability to reward users for any desirable interaction
• Increase lifetime value of customer by 5x
• Increase in Word of mouth referrals, reviews etc. Few examples as follows:

8. Customer Loyalty Scheme:
• 360 Degree engagement loyalty platform
• Ability to reward users for any desirable interaction
• Increase lifetime value of customer by 5x
• Increase in Word of mouth referrals, reviews etc.

9. ROI Measurements:

10. Equipments and Change Agents:
Tools, Highlighter, Measurements

11. Every Customer Data is crucial:
Tools, Highlighter, Measurements

12. Implementation Plan:
July Aug Sep Oct Nov
Project Planning
Kickstart of the Project by end of July
Project Management Meetings
On-boarding of all team members
Outline the process
Change Management
Start CompleteDecision

13. To Do List
The following steps need to be taken immediately:
1. Approvals for Main Agreement and drafting Proposal
2. Hire and recruit the team comprising Project requirement based approach
3. Virtual or physical on-boarding and commencement of Project

14. Thank You