Professional Documents
Culture Documents
PRINT ADVERTISEMENT.
INDEX
Industry Scenario.
SWOT Analysis.
Marketing Environment.
Marketing Mix.
PREFACE
“TRUFFLES CANDY” is a fun and friendly family business that works hard to provide
you with the highest quality, most delicious candy on the planet. In this field
profits are too good as it is of mass marketing type.
Chocolates are on everyone’s mind i.e. young, old, kids….. Everybody likes
chocolates...
“Company wants to fulfill its mission of serving the society what it wants &
desires. At the same time considering and focusing on the health & fitness of the
consumers.
Youth today are very very health conscious so though they have a desire to eat
candy they won’t eat due to they are priority towards their health.
Thinking of children’s desires and health, mothers are worried about the fact that
whatever children eat today is not nutritional for them& especially when it comes
to candies.
So taking into consideration children’s desires and mothers’ worries & dilemma of
youth, companies’ research and development department has come up with “truffles”
& its variants that are low in fat & are as nutritional as grains & vegetables for
kids.
INTRODUCTION:
COMPANY OWNERSHIP
START-UP SUMMARY
Almost 40% of start-up funds will go towards, administrative, consulting, Web page
development and product research and development costs. Expensed equipment
includes a new Personal Computer has been made in order to run the requisite
business and accounting software.
The balance of funds will be used to maintain a positive cash balance for the
first three months of operation.
OBJECTIVES
• To build a substantial cash balance by the end of year three.
• To contribute Rs.100,000 by our third year to non profit organizations that
assist organizations.
• To reach increase sales ten-fold by the end of Year Three.
• To pay off any loans or equity investments by the end of Year Three.
MISSION
TRUFFEL CANDIES Designs is dedicated to becoming the premier provider of high-
quality products to the market for the purpose of raising funds. We will
accomplish our mission by:
• Forming strategic alliances with companies and organizations that share our
vision.
• Conducting our business fairly and ethically.
• Treating our employees with dignity and respect.
In short it is “BEST QUALITY, VARIETY AND VALUE AT AFFORDABLE PRICE”. The strategy
focused is to stay close to the customers, understanding their needs, and
exceeding their expectations.
TAGLINE
INDUSTRY SCENARIO
The wholesale candy industry has gone through so many changes in the last 50 years
it is incredible. The industry has evolved from many small players in the early
1960's and 1970's to a much smaller set of mid sized to huge wholesale candy
suppliers. Manufactures are also much stricter with the criteria needed to buy
direct. The industry consolidation has also required the wholesale candy supplier
to carry a broad product base. This is required as customers are looking for one
stop shopping. Many wholesale candy companies are being bought by the larger ones,
are forced out of business or if lucky can find a niche area to play in.
Adding to the industry pressures are wholesale candy price increases. While candy
prices have continued to increase over the last few years in 2007 and 2008,
customers are often very price conscious and demanding. Recently written in
Professional Candy Buyer magazine is an article citing how Hershey and Mars
announced that due to the rising cost of milk and cocoa it is raising its prices
again. This is the second time in a year now. This increase is said to raise
wholesale prices about 12% and 11% respectively. This is on top of a 5% increase
in April 2008. For Hershey the increase will take effect immediately and Mars the
increases will be introduced through March 2009. Energy and commodity prices are
said to be the cause of the increases. The increase in costs has gotten to such a
point that there are even discussions on modifying the standards to lower cocoa
butter contents to save costs. Currently the existing federal standard for
chocolate says that chocolate in its purest state must contain between 50% and 60%
cocoa butter. The proposal includes using a vegetable fat to supplement the
product at a lower cost.
A relatively new avenue for wholesale candy suppliers is to use the internet as a
means for attracting new customers. Online wholesale candy sales do have high
barriers of entry. The complex and technical demands of establishing an online
presence and the associated required knowledge is often not in the skill set of
the candy wholesaler. This then requires additional funds to invest in technology
and on line marketing. However, if the barriers of entry can be over come, online
sales offer the opportunity for the small candy wholesaler to have a large look
and presence. While website design and maintenance will cost money it is possible
that revenues can increase to defer the costs. In addition the costs of hiring a
sales force can also be reduced.
COMPETITORS IN MARKET
ALPENLIEBE
Alpenliebe, a hard-boiled sugar candy, was one of the first brands to be launched
after Perfetti Van Melle (India) Ltd. (PVMI) launched its operations in India in
1994.
HAJMOLA CANDY
The zingy tangy candy that's fun to have any time of the day. And what's more, it
gets your digestive juices working better. That's a great way to enjoy while
staying healthy – with Hajmola Candy's khatta meetha taste and 3 fun-filled
flavours.
FUNDA MINT
The latest entrant in the 50p mint category in India is Fundamint. It seems to peg
its differentiation on Indian ingredients like saunf (fennel seeds) and hence the
positioning: dil se desi .
Funda Mint - "Mint with a twist": India has extremely diverse taste requirements.
Gujaratis love a sweet touch to their foods, whereas people from Andhra Pradesh
prefer their food to be extremely spicy. On this thought, Funda-Mint took birth to
provide the Indian consumer with a mint that refreshes them instantly and ensures
it caters to India’s varied taste. A mint that is modern but is essentially "Dil
Se Desi".
Currently available in 2 flavours – Saunf Fresh & Double Thanda. While Double
Thanda provides you that extra strong mint to freshen your breath in an instant,
Saunf Fresh gives you mint freshness in a unique flavor that Indians are used to
having after a meal.
CHOCOLIEBE
Perfetti has introduced a new candy brand Chocoliebe. Although this is a new
brand, the brand has strong secondary association with th e blockbuster candy
Alpenliebe. Chocoliebe is the chocolate filled caramel candy and will be taking on
the Cadbury's Eclairs. Perfetti has a chocolate brand Chocotella. Chocoliebe is
being positioned on the emotional platform of Love. Cadbury's has a product line
extension of Eclairs Crunch which will take on Chocoliebe. Chocoliebe uses the
tagline " Pyar Do Pyar Lo" which translates to " Give Love ,Take Love".
S.W.O.T Analysis
STRENGTHS
• Totally innovative product – the product which we are about to launch is a
totally innovative product which is going to be introduced in the Indian market.
• Patented product – our product is patented for three years, this protects
our product from being copied by other competitors.
• Nation wide launch – we are planning to launch our product throughout the
city.
• Low cost of production – the production line is using the latest technology
which will help in mass production so that we can enjoy economies of scale.
WEAKNESS
• As it is going to be a totally new product being introduced into the market,
acceptance by the public those who are used to particular brand for a long time,
will be at a low.
• The greatest drawback to the company will be if the product is not available
to the consumer.
• As we are launching new product in the market cost of production will be
high and revenue will be low.
OPPORTUNITIES
• People want to eat chocolates at the same time remain fit in shape
• Candies are consumed by 90% of the population
• Candies are consumed by people of all age group
• As we are completely new to the field of the candies, there is a wide
opportunity of getting accepted since the present generation does not believe in
sticking to old and outdated products. They are always in search of something new
and believe in getting the best for what they spend.
• We have associated with a famous distribution agencies in India to help us
reach our product to the nook and corners of urban/rural India
THREATS
• Biggest threats are competitors who are already present in the market
• There is a threat of the duplication or cheap substitution.
• We have threats from the MNC’s if they make substituted products with
similar advantages.
• Non-acceptance due to completely innovative idea.
MARKETING ENVIRONMENT
The marketing environment surrounds and impacts upon the organization. There are
three key perspectives on the marketing environment, namely the 'macro
environment,' the 'micro-environment' and the 'internal environment’.
The micro-environment
This environment influences the organization directly. It includes suppliers that
deal directly or indirectly, consumers and customers, and other local
stakeholders. Micro tends to suggest small, but this can be misleading. In this
context, micro describes the relationship between firms and the driving forces
that control this relationship. It is a more local relationship, and the firm may
exercise a degree of influence.
The macro-environment
This includes all factors that can influence and organization, but that are out of
their direct control. A company does not generally influence any laws (although it
is accepted that they could lobby or be part of a trade organization). It is
continuously changing, and the company needs to be flexible to adapt. There may be
aggressive competition and rivalry in a market. Globalization means that there is
always the threat of substitute products and new entrants. The wider environment
is also everchanging, and the marketer needs to compensate for changes in culture,
politics, economics and technology.
The internal-environment
All factors that are internal to the organization are known as the 'internal
environment'. They are generally audited by applying the 'Five Ms' which are Men,
Money, Machinery, Materials and Markets. The internal environment is as important
for managing change as the external. As marketers we call the process of managing
internal change ‘internal marketing’.
PRODUCT CONCEPT
This concept states that consumer will favour those products that offer most
quality performance and innovative features. So according to this as candies is a
product which keeps on changing with innovative features. This concept also
totally devotes itself to providing varied features in the product so as to sell
more. Managers of such organizations focus on making superior products and
improving them overtime.
PRODUCTION CONCEPT
In this concept production dominates the thinking process. They believe that
marketing can be managed by managing production. The concept holds that consumers
would as a rule support those products that are produced in great volume at a low
unit cost. All efforts is focused on production.
SEGMENTATION
TARGETING
A target market is the market segment which a particular product is marketed to.
It is often defined by age, gender and/or socio-economic grouping. Targeting
strategy is the selection of the customers you wish to service. The decision
involved in targeting strategy includes:
Which segments to target?
How many products to offer?
Which products to offer in which segments?
POSITIONING
In marketing, positioning is the technique by which marketers try to create an
image or identity in the minds of their target market for its product, brand, or
organization. It is the relative competitive comparison your product occupies in a
given market as perceived by the target market. Positioning is something
(perception) that is done in the minds of the target market. A product’s position
is how potential buyers see the product. Positioning is expressed relative to the
position of competitors.
PROCESS OF POSITIONING
Positioning is not what you do to the product; it is what you do to the mind of
the prospect. Hence our basic approach will not be to create something new and
different in the minds of our prospective consumers but to manipulate what’s
already up in their mind.
Positioning Statement
TRUFFEL CANDIES Designs' products give the customer a high-quality product that
has true value and also allows them to contribute toward a cause. For fund-raising
function coordinators who are looking for a distinctive product to make a lasting
impression, TRUFFEL Chocolates will more than meet that need. Currently, those
event coordinators do not have such a distinctive product.
Pricing Strategy
Our pricing strategy will be developed by comparing our products to other like
products and then taking into consideration what the market will bear. We are
selling a unique product for a specific reason -- to raise money for benevolent
programs. Because of this approach, we will be able to price our product slightly
higher than comparable products in the market.
Sourcing
Sourcing is critical for any enterprise, especially a retail operation. TRUFFEL
CANDIES Design's first line of products - high quality chocolates- will be
produced exclusively by HUL of INDIA. We have entered into a non-binding agreement
with HUL’s, which can handle large volumes of product. Orders will be placed
through OUR main office and then communicated to HUL’s for fulfillment. This will
ensure the most expedient delivery and the freshest product possible.
Advertising will be outsourced. Most sales promotions and public relations work
are handled in-house by Deepali Rathi. Professional administrative and consulting
tasks will also be outsourced
MARKETING MIX
The concept is simple. Think about another common mix - a candy mix. All candies
contain essence, starch , flour, and sugar. However, you can alter the final candy
by altering the amounts of mix elements contained in it.
It is the same with the marketing mix. The offer you make to you customer can be
altered by varying the mix elements. So for a high profile brand, increase the
focus on promotion and desensitize the weight given to price. Another way to think
about the marketing mix is to use the image of an artist's palette. The marketer
mixes the prime colours (mix elements) in different quantities to deliver a
particular final colour. Every hand painted picture is original in some way, as is
every marketing mix.
Some commentators will increase the marketing mix to the Five P's, to include
people. Others will increase the mix to Seven P's, to include physical evidence
and process.
PRODUCT
A product is anything that can be offered to a market to satisfy a want or need.
Products that are marketed include physical goods, services, experiences, events,
persons, places, properties, organizations, information and ideas. For many a
product is simply the tangible, physical entity that they may be buying or
selling. You buy a new car and that's the product - simple! Or maybe not. When you
buy a car, is the product more complex than you first thought?
PRICE
Price is the second element of the marketing mix. Price is the value exchange that
occurs between buyers and sellers for a product or service. It is a vital decision
area in marketing that generates revenue. Price is the most important determinant
of the profitability of the business. Factors related to price include legal and
regulatory guidelines, pricing objectives, pricing strategies, and options for
increasing sales.
PLACE
The third element of the marketing mix is place. Place refers to having the right
product, in the right location, at the right time to be purchased by consumers.
This proper placement of products is done through middlemen called the channel of
distribution. The channel of distribution is comprised of interdependent
manufacturers, wholesalers, and retailers. Each participant in the channel of
distribution is concerned with three basic utilities: time, place, and possession.
PROMOTION
Promotion is the fourth element in the marketing mix. Promotion is a communication
process that takes place between a business and its various publics. Publics are
those individuals and organizations that have an interest in what the business
produces and offers for sale. Thus, in order to be effective, businesses need to
plan promotional activities with the communication process in mind.
There are four basic promotion tools: advertising, sales promotion, public
relations, and personal selling.
PRODUCT LIFE CYCLE
The Product Life Cycle (PLC) is based upon the biological life cycle. For example,
a seed is planted (introduction); it begins to sprout (growth); it shoots out
leaves and puts down roots as it becomes an adult (maturity); after a long period
as an adult the plant begins to shrink and die out (decline).
In theory it's the same for a product. After a period of development it is
introduced or launched into the market; it gains more and more customers as it
grows; eventually the market stabilizes and the product becomes mature; then after
a period of time the product is overtaken by development and the introduction of
superior competitors, it goes into decline and is eventually withdrawn
However, most products fail in the introduction phase. Others have very cyclical
maturity phases where a decline sees the product promoted to regain customers.
Introduction
The need for immediate profit is not a pressure. The product is promoted to create
awareness. If the product has no or few competitors, a skimming price strategy is
employed. Limited numbers of product are available in few channels of
distribution.
Growth
Competitors are attracted into the market with very similar offerings. Products
become more profitable and companies form alliances, joint ventures and take each
other over. Advertising spend is high and focuses upon building brand.Market share
tends to stabilize.
Maturity
Those products that survive the earlier stages tend to spend longest in this
phase. Sales grow at a decreasing rate and then stabilize. Producers attempt to
differentiate products and brands are key to this. Price wars and intense
competition occur. At this point the market reaches saturation. Producers begin to
leave the market due to poor margins. Promotion becomes more widespread and uses a
greater variety of media.
Decline
At this point there is a downturn in the market. For example more innovative
products are introduced or consumer tastes have changed. There is intense price-
cutting and many more products are withdrawn from the market. Profits can be
improved by reducing marketing spend and cost cutting.
LABELLING
Indian Food Inspection Agency (IFIA) carries joint responsibility for federal food
labeling policies in INDIA under the Food and Drugs Act.
IFIA Activities include:
• Investigating consumer and industry complaints,
• Developing programs designed to encourage compliance with the provisions of
the respective Acts,
• Developing consumer protection policies.
The food label is one of the most important and direct means of communicating
product information between buyers and sellers. It is one of the primary means by
which consumers differentiate between individual foods and brands to make informed
purchasing choices.
A label serves three primary functions.
• It provides basic product information (including common name, list of
ingredients, net quantity, durable life date, grade/quality, country of origin and
name and address of manufacturer, dealer or importer).
• It provides health, safety, and nutrition information. This includes
instructions for safe storage and handling, nutrition information such as the
quantity of fats, proteins, carbohydrates, vitamins and minerals present per
serving of stated size of the food, and specific information on products for
special dietary use.
• It acts as a vehicle for food marketing, promotion and advertising (via
label, promotional information and label claims such as "low fat", "cholesterol-
free", "high source of fibre", "natural", "organic", "no preservatives added", and
so on).
PACKAGING
Packaging is defined as all the activities of designing and producing the
container for the product. Well designed packages can create convenience and
promotional value. The package is the buyer’s first encounter with the product and
is capable of turning the buyer on or off.
Packaging can be divided into 3 broad categories:
Primary: it is the wrapping of container held by the consumer
Secondary: it is used to group quantities of primary packaged goods for
distribution and for display in shops.
Transit: it refers to wooden pallets, board and plastic wrapping that are
used to collate groups into larger loads for transport.
Packaging of handmade truffles, dipped berries, cookies and other fun things that
are made can be fun. Candy packaging can make chocolate gifts look even more
professional. Enjoy it when they say, "You MADE that?!"
Packaging of chocolate candy gifts can make a special gift even more special. We
have brought packaging supplies right here for you so you do not need to search
all over for that perfect packaging. Use truffle cups and boxes as beautiful fun
packaging for your truffles. Use cello bags to help with packaging your chocolate
candy suckers. Candy foil can help with packaging candies and make them look
beautiful and shiny. My favorite packaging to use with my chocolate candies is the
mocha spoon handles and bags for a great chocolate spoon to dip in your coffee.
Break-even Analysis
A break-even analysis table has been completed on the basis of average
costs/prices. Our cost of goods is 50%. The table below shows our average monthly
fixed costs, and the amount we need to sell per month to break-even.
Break-even Analysis
Assumptions:
Average Percent Variable Cost 50%
Estimated Monthly Fixed Cost 6,72,400
Expenses
Payroll 40,000 1,32,000 2,17,600
Sales and Marketing and Other Expenses 27,300 44,500 1,17,500
Depreciation 792 1,600 1,600
Leased Equipment 0 0 10,000
Utilities 3,000 5,000 6,000
Insurance 3,600 3,600 3,600
Rent 0 5,000 9,600
Payroll Taxes 6,000 19,800 32,640
Other 0 0 0
Current Assets
Cash 60,09,800 72,50,100 3,90,64,300
Accounts Receivable 1,47,300 3,11,400 11,67,800
Other Current Assets 0 0 0
Total Current Assets 61,57,100 75,61,500 4,02,32,100
Long-term Assets
Long-term Assets 0 0 18,00,000
Accumulated Depreciation 79200 2,39,200 3,99,200
Total Long-term Assets -79200 -2,39,200 14,00,800
Total Assets 60,77,900 73,22,300 4,16,32,900
Current Liabilities
Accounts Payable 11,60,900 23,82,200 89,79,900
Current Borrowing 0 0 0
Other Current Liabilities 0 0 0
Subtotal Current Liabilities 11,60,900 23,82,200 89,79,900
Long-term Liabilities 0 0 0
Total Liabilities 11,60,900 23,82,200 89,79,900
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