This document discusses three key market forces that affect the chocolate industry: the price of cocoa, transportation costs, and competition. It analyzes how each of these forces impacts pricing. It then provides strategies for overcoming threats from these forces, such as keeping transportation costs low through frequent rate monitoring. Additional strategies for capitalizing on opportunities include ensuring high quality cocoa at low prices through strong negotiation. The conclusion states that understanding these market forces and implementing solutions will allow producing quality chocolate at affordable prices while increasing profits.

1. Unit 1 Individual Project 1
Victoria Rock
American Intercontinental University
Unit 1 Individual Project
MKTG 205 – Principles of Marketing
March 4, 2012

2. Unit 1 Individual Project 2
Abstract
To correctly identify opportunities and threats to a product, Marketing Managers need to have a
good 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 product
they are trying to introduce to the consumer. (Developing Successful Marketing and
Organizational Strategies, 2011)

3. Unit 1 Individual Project 3
Environment Forces that affect the Chocolate Industry
Introduction
In the chocolate bar industry there are three marketing environment forces that will have an
impact 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 of
what 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 that
can be priced in a competitive market environment, Taking into account the economy and cost of
resources, the pricing is an important part of the product and appeal to the target markets. Pricing
of resources may make lower grades of coca more attractive, but the competition may be a key
into how much one is willing to sacrifice in terms of product quality or pricing. (INDUSTRY
PROFILE: Candy Manufacturing, 2012)
Market Force 2: Cost of Transportation
Transportation is another key to pricing. Due to fuel prices rising, adjustments will have
to be made to cover costs. What most likely will be part of the pricing consideration would be
making sure that the product arrives in good condition and a timely manner because it will affect
the product's reception as well as how it is perceived by sellers and buyers. (INDUSTRY
PROFILE: Candy Manufacturing, 2012)
Market Force 3: Competition of the Market

4. Unit 1 Individual Project 4
Competition makes pricing and placement considerations very important. Too much market
saturation 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: Candy
Manufacturing, 2012)
Strategies to Overcome the Threats
The economy has actually meant a boost for items like the chocolate bar, so the company
would want to capitalize on this less expensive mood enhancer and sweet sensation. And while
there are many competitors, not all of them are new and getting a positive spin. With the use of
new flavors, adding things for healthy diets, or any other attraction will be very helpful. For
helping with transportation, we need to look closely at all methods. Keeping up to date weekly
on costs of transportation and rates can also help in keeping the price of the product in the
competitive 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 making
sure that the resources for making the product are the best quality at the lowest price. Creating
excellent negotiation skills to keep prices down and under control will also be very helpful. Also
having people who are experts in the field as well as know growers and distributors that they can
work with is another important aspect in keeping resources down. (INDUSTRY PROFILE:
Candy Manufacturing, 2012)
Conclusion

5. Unit 1 Individual Project 5
From the above discussion it can be concluded that by understanding the forces that affect
the product, to coming up with the proper solutions to solve them, we will be able to provide a
quality product at an affordable price to the consumer while at the same time helping to increase
profit for the company.

6. Unit 1 Individual Project 6
References
(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