The consumer section which Day Chocolate is taking at are the “concerned consumers” . The “concerned consumer” is a construct that is used for consumers who find it of import to cognize where their merchandises came from. They are willing to purchase Fair Trade merchandises like Day Chocolate because they find it of import to assist those who truly created the merchandise. Fair Trade merchandises insure the unity of the companies who make them. This is the ground the “concerned consumer” is willing to pay more for a merchandise because they know for certain that they will assist the manufacturers in 3rd universe states. Even though this construct of Fair Trade is going progressively popular. the type of consumer who buys Fair Trade merchandises usually has a modal or higher income. This is by and large the instance because Fair Trade merchandises are normally more expensive than normal merchandises ( see figure 1 ) and people with a lower income can non afford these expensive merchandises. This is likely to be the ground that Day Chocolate is selling their merchandises in the top UK supermarkets alternatively of the lower quality 1s.
Porter Diamond theoretical account
Harmonizing to marketing book ‘Global marketing’ by Sven Hollensen. the Porter Diamond is defined as ‘the features of the place base that play a cardinal function in explicating the international fight of the firm- the explaining elements consist of ; factor conditions. demand conditions. related and back uping industries and house scheme. Besides construction and competition. and alteration in authorities dramas an of import function.
For Day Chocolate is it of import to make a competitory advantage. so these factors plays an improbably of import function. The elements are described below:
Factor conditions: Day Chocolate has a benefit because they buy their chocolate from Kuapa Kokoa. a small-scale chocolate husbandman in Ghana. Ghana has legion of chocolate plantations and the state conditions like the clime and people that have knowledge about chocolate tree beans. All in all it gives an advantage in the production of cacao beans.
Demand Conditionss: Day chocolate chooses to be a Fair Trade merchandise while consumers are more and more aware of and open to the construct of Fair Trade. Consequently. the demand will merely increase for Day Chocolate.
Related and Supporting Industries: Day Chocolate has different spouses. It buys its cacao beans from Kuapa Kokoa. Chocolate Day has committednesss with NGO twin trading and with The Body Shop. They portion it’s ownership. Their milk cocoa formula was developed with UK gustatory sensations in head. Furthermore the support of charities Comic Relief and Christian Aid. Day cocoa has resulted in acquiring both Devine and Dubble listed in all the top UK supermarkets. Another helpful factor for Day Chocolate was that The Department for International Development guaranteed a bank loan. In other words. they have different back uping industries which combine into one large advantaged industry.
Firm scheme. construction and competition: Day Chocolate is a big. strong company. but besides faces competition. Chocolate is a basic merchandises and many houses produce and sell cocoa. However Chocolate Day distinguishes itself by utilizing Fair Trade merchandises. this is of import because this is going an progressively of import topic for consumers. and authorities. Furthermore. Day chocolate supplies chocolate for ain label merchandises in Co-op and Starbucks in the UK. and by making so going more popular.
Government: Day Chocolate has an official Fair Trade label licensed by International Fair Trade labelling Organisation ( FLO ) . This gives Day Chocolate advantages. one being that they received a bank loan premium ; to better the quality of their lives. As a consequence the authorities invests in instruction and a good environment to increase production and income.
Customer equity: Day Chocolate has in different ways a batch of client equity. First. they sell Fair Trade merchandises. which attracts a particular group of clients and this group is increasing. So the clients merely increase for Day cocoa. Furtermore. they sell high quality merchandises which is really attractive for many of clients.
Day Chocolate is a big. turning company. which is why it is utile to do a SWOT analyse to make an overview of their strengths and failings. This will be the internal survey. To hold an overview of their chances and dainties calls for the external survey.
Strengths: Day Chocolate has different strengths. the first being that they sell high quality merchandises. with a luxury eradiation. Furthermore. they choose to sell Fair Trade merchandises. which distinguishes Day Chocolate with its rivals. This makes Day Chocolate a strong trade name.
Failings: Day Chocolate take to sell high quality Fair Trade merchandises. By this taking on a specific group of clients hecause non everyone has the chance to purchase high quality and Fair Trade merchandises.
The selling mix is an overview of 4 factors ; Product. monetary value. topographic point and publicity. This gives the strategic place of a company. Below there is an overview of the selling mix for Day Chocolate.
Merchandise: Merchandise is the touchable object or intangible service what a company manufactures or green goodss. Day Chocolate produces Fair Trade cocoa with a high quality. The bundle of their merchandises looks luxury that shows the high quality. Day Chocolate is a touchable merchandise. Day Chocolate produces on a big graduated table and sells their two trade names of cocoa. Devine and Dubble. in the top supermarkets of the UK. Aditionally they sell their ain trade names at Starbucks and Co-op.
Monetary value: The monetary value is the sum consumer wages for the merchandise. Day Chocolate produces high quality and Fair Trade cocoa. They attract consumers that are willing to pay for high quality and Fair Trade. The sum of clients merely increases because Fair Trade is going progressively popular throughout the universe
Topographic point: Topographic point refers to the topographic point where merchandise is purchased and to the distribution channel. Day Chocolate is supplied by Kuapa Kokoa. where they buy their chocolate tree beans. The formula of their milk cocoa is developed in the UK. Day Chocolate sells its merchandises in all top listed UK supermarkets every bit good as independent supermarkets. Furthermore. they have an ain web site where they sell their merchandises.
Promotion: Promotion refers to all communicating a company makes in order to sell their merchandises. Day Chocolate has two of import trade names. viz. Devine and Dubble. These trade names are recognized as high quality and have a Fair Trade label. Furthermore. their web site has a epicurean visual aspect and the client can happen everything they want to cognize about the company at that place. This distinguishes Day Chocolate and its rivals. This attract a particular section of clients and this will increase in the hereafter because Fair Trade merchandises are going more popular.
A tendency in the cocoa industry of recent old ages is healthy cocoa. Healthy cocoa is dark cocoa with more than 70 per cent chocolate tree. this manner the chocolate contains most antioxidants and are non cancelled out by the milk added. harmonizing to Alan Crozier. professor of works biochemistry and human nutrition at the University of Glasgow. This is the ground why dark cocoa has been promoted the most in recent old ages. Furthermore. manufacturers have added fruits to chocolate to give it even more healthy facets.
Additionally. a recent tendency is that the cocoa industry is going more focussed on really specific market niches. For case. premium cocoa is vastly popular. Premium cocoa is usually differentiated by seting more accent on sourcing and the production procedure. much like vino. This premium label besides tends to travel with the chase of quality.
Last. an approaching tendency is that consumers want the ‘ethical’ option as they are going much more cognizant of the merchandises they buy. Consumers are much more informed through the information on merchandise packaging –reading through the list of ingredients and beginnings every bit good as look intoing if the merchandise has blessing of environmentally cognizant administrations. Retailers are. in reaction to this new tendency. going more ethically cognizant as good.
One of the chances that Day Chocolate has is paying great attending to how much chocolate tree they put into their cocoa. Day Chocolate could. for illustration. set the chocolate tree per cent on their packaging for consumers who want to cognize this. Furthermore. they could make an wholly new. healthy merchandise line. Detecting that the merchandise is Fair Trade and healthy. this is likely to be attractive to their current consumer section: the “concerned consumer” . This would be the instance because the merchandise non merely helps the 3rd universe states but besides the consumers themselves.
In relation to the market trends in the cocoa industry. another large chance for Day Chocolate could be to get down bring forthing Fair Trade premium cocoa. They could spread out their market by developing many different original. yet ‘premium tastes’ such as cocoa with alien spirits or organic cocoa. The more pick there is. the more likely it is to pull more consumers.
Finally. another chance for the company is the fact that the Fair Trade market is turning due to the new upcoming of the ‘ethic consumer’ . This will give Day Chocolate the chance to spread out non merely their scope of merchandises. but besides to spread out to different states.
However. the growing of the Fair Trade market besides brings menaces. More and more companies learn that some of their consumers are able and willing to pay more in order to purchase just trade cocoa. The addition in gross revenues leads to more turnover and net income. This in its bend may take to more competition. Companies that are losing their clients to Fair Trade companies. such as Day Chocolate. might present their ain Fair Trade line.
Furthermore. the recent fiscal crisis is besides a menace. This crisis affects the consumers in their pockets in such a manner that purchasers will be given to purchase the cheaper cocoa as a replacement to the more dearly-won Fair Trade cocoa. As a consequence this will impact the gross revenues of Fair Trade merchandises negatively.
Last. a menace is that cocoa is made from chocolate beans which grow on chocolate tree trees. These trees are really delicate and sensitive. They respond really rapidly to a alteration in clime or environing. Their dirt must hold both H2O keeping belongingss and good drainage. Additionally. there are different sorts of plagues. Fungis and diseases which affect the trees. This makes the cocoa industry hazardous concern as you can non command all of these points wholly.