Marketing MANAGEMENT

Topic:

The House Of Chocolates

Submitted by:
Amna Khan
Ramsha Ayyub
Anam Iftikhar

Registration #:
L1F10BBAM0261
L1F10BBAM0256
L1F10BBAM0268

Section:
N

Submission Date:
June 16, 2014

Submitted to:
Prof Awais Khan

Situation Analysis

The House of chocolate will begin its inception for the first time in Pakistan. The concept of
a shop soully dedicated to the love of chocolate is rarely witnessed in our country. The initial
marketing and sales activities will mark our success in the market. From the worlds finest
chocolate brands to purist-pleasing dark chocolate to inventive and artistic creations that
(almost) look too good to eat, The House of Chocolate will offer Pakistanis with the widest
variety of chocolates tastes from all around the world. Our main focus is that the chocolates
lovers of Pakistan get to experience the tastes of the worlds finest chocolates.

Current users:

The love of chocolate is not limited to a certain age. Mostly people whod benefit from the
concept will be youngsters, kids, or even the middle aged people. The house of chocolate
will also offer special gift packings for chocolates for different day to day and cultural
occasions as well, so all age groups can be our users.

Purchase cycle and seasonality:

Chocolate lovers all around the world tend to buy chocolates every now and then, some of
them might buy it due to festive reasons, others buy it every now and then for their love of
chocolate. As chocolate lovers tend to seek various different flavors and types of chocolates,
so they experience a variety seeking buying behavior when buying them, some might even
buy it impulsively because when they go out and see a chocolate shop nearby, theyd
suddenly be attracted to it and might choose to buy without even planning.
In a country like Pakistan, where its mostly summers for half of the year, people tend to buy
less chocolates in summers due to the risks of melting and health issues. However, some
people buy them no matter what season it is. But the major sales take place in winters
because chocolates are famous for winters, there are less health issues, and many festivals
take place in winters too. The house of Chocolate has a great potential to make its major
sales in winters and even on days like Christmas, valentines day, weddings, birthdays and
etc. Major advertising budget will be spent in winters.

Market Summary.
The chocolate industry offers a wide variety of opportunities for the small business owner,
weathers economic recession well and is growing despite increased health-consciousness
and calorie counting. Growth will be driven by population growth as well as expansion into
new markets, product innovation and rising disposable income levels leading to greater
purchasing of premium offerings. Moreover, the changing trends and fashion of offering
chocolates at weddings and other cultural festivals rather than traditional meethais has also
given a boost to the chocolate market in our country.
One of the primary demand drivers for chocolate and other sweets is consumer taste, and
consumers continue to love chocolate! Long a beloved treat in the western world, a recent
study in Great Britain showed that 91% of females and 87% of males consume chocolate
products. But the taste for chocolate is now expanding into highly populated nations with a
growing middle class, such as China and India and Pakistan. Rising disposable incomes and
changing tastes will continue to drive growth in the industry in Asia.

The trend of shops exclusively dedicated to chocolates is common in the western countries
but is still to be introduced in countries like India and Pakistan. These shops are highly a
workable business around the world it generates employment and revenue for many. But we
still dont have the concept of shops only for chocolates in Pakistan, this concept has still to
be implemented in our country.
Target Market:
Chocolate is a sweet for all. We provide chocolates of all sorts for different age groups in the
region. We also have a wide range of sugar free chocolates for old, special assorted and
decorated chocolate lollipops for kids and all sorts of regular and exclusive dark chocolates
for all kinds of people. Our major target market would be:
Kids
Teenagers and youngsters
Adults
Old aged people

Our main target market includes people who fall in the class category of middle and
upper middle class, people who earn enough to afford expensive imported
chocolates. The target market is divided by the age groups and income groups of
the consumer. The key target market are the people who earn themselves enough
money to buy chocolates for friends, family and themselves.
Market demographics:Studies of a population based on factors such as age,race,sex,economic status,level
of education,income level and employment among others. Demographics are used
to learn more about a populations characteristics.
Population
Pakistan is a very culturally and ethnically diverse country, Pakistan has a very high
population for its size.it is the 6th largest country in the world in terms of population
with a population of 181,086,078 in 2010.pakistans population has grown at an
immense rate with just under 60 million in 1960 to over 180 million in 2010 that
makes the rate of population increase of 24% per decade.
And as we see the people whom we are focusing more are large in population in
Pakistan he have 36.7% (male 33,037,943/female 31,092,572) population till age of
14 & 59.1% (male 53,658,173/female 49,500,786) population from 15 to 64 years of
population.
Target city: Lahore is the 27th largest city in the world with a population of 5433495
in 2010. It has one of the highest urbanization rats in the world. Lahore controls
12.7%of the total population in Pakistan, and has a large industrial and consumer
orientated market. When compared to competitive cities its current rate of 9 million
can compete well with cities with even larger companies

Climate
Pakistan fortunately is having very enriched climate. People enjoy all four seasons
here from chilled winters till hot summer. We are aiming to cater the chocolate need
of every one in all seasons like Hot chocolate in winters to cold chocolate in
summer. Tendency of chocolate consumption remains the same only change comes
in consumption patter in all age groups.
Family life style:People love to eat chocolates when they are feeling cold and this can also be used
as an energy gainer for people who work out during the summers. Furthermore
people who are concerned about their health but who cant go on a diet can eat
chocolates. The market can be divided into overweight peoples and gymnastics
both can benefit from it.We are providing good quality chocolates at economical
prices by keeping customer fitness in mind.
Age:- every type of chocolate is attracted towards the more younger type of people
from main age group is 8-30 years.
Gender:- male/female
Income:Although Pakistan is considered a third world country the average persons wage
has increased by 54% since 1990.along with china and India it has one of the
highest growth rates in wages so the average person can now buy better consumer
oriented goods like chocolates. It is the great opportunity to invest in the chocolate
industry.
Attitudes towards the chocolates are positive as people are very in trusted in
chocolates. Those are willing to experiment with alternate products in place of
conventional food items,as the universe of chocolate consumption is changing from
occasional led to more casual.Our prices are economical so everyone can afford it.
Market Needs:
The House Chocolate will be the first chocolate shop in Pakistan that would offer the
chocoholics with the most exclusive chocolate brands and qualities from the most exquisite
places in the world. This is something that wasnt there before. Imported Chocolates were
sold only at big shopping stores, like Alafatah, Hyperstar, and etc. What people need is a
shop thats only about chocolates of all kinds, different brands, different varieties in milk
chocolates, dark chocolates and sugar frees. Best handmade chocolates will also be
available so people get to taste something they dont normally do. The House of Chocolate
seeks to fulfill the following market needs that will fill the gap between the demand and the
previous supply for the chocolates.

Variety: We provide people with the wide variety of chocolates from all around the world
under one roof. A place where people can buy the best chocolates of whatever type they
want.
Quality: All the chocolates will be the finest chocolates from all around the world that
are hygienic and halal.
Customer Service: Consumers want to patronize companies that have customer service as a
priority. The House of CHocolate will be using M&M, nestle, Lindta, Cadbury and other big brands
and private finest brands with the service consumer seek for.

Competition
As we are the first to open a shop in Pakistan that solely operate with chocolates and
nothing else, so we have dont have as such competitors for now but some retail stores like
alfatah, esajees and hyperstar are our current competitors because these shops have
separate sections for all types of chocolates, but still dont offer the huge variety and the
finest quality that were planning to offer. But these all above retailers do not provide the depth
and range of product with services as we are providing to our customers. The area and the
environment of our outlet will also plays an important role in grabbing the attention.

Product and service offering:

Products
Our chocolate hub is providing the worlds best chocolates from many different coutries. We
provide variety of flavors in worlds famous brands from famous chocolate making countries
like Belgium, France, Switzerland, UK, Italy and etc. Flavors include
Chilli,
Orange
Geranium
Peppermint
Ginger
Chilli & Lime
Dark Side
Butterscotch.
Mexican hot chocolate
Smoke & Stout Caramel Bar
Goji Bar
Chai chocolate
Red Fire Bar
Raspberry pink pepper
Lemon grass with peppercorn
Kaffir lime chocolate
Mos Bacon Bar
Banana Chocolate etc
Customized chocolates also like sweetened, unsweetened, semi sweeten, dark chocolates,
white chocolates etc
our shop having all the brands like
kitkat,mars,galaxy,Cadbury,Toblerone,Patchi,Guylian,Ghirardelli,Lindt & Sprngli and Ferrero
Rocher.
Services:
We are proud to offer a high standard of customer services
1) Telephone

2)
3)
4)
5)
6)

Email
Online ordering
Discount Codes
Privacy/Security
Collect loyalty points with every order you make.

Key Success Factors.

Our key success factors are:
1) Tapping an undiscovered idea: By this we mean that before our shop, none of the shops
have adopted the idea of introducing a shop solely for the worlds best chocolates. Our
success factor here refers to us providing all sorts of chocolates that are not are not
commonly available, under one roof.
2) Best distribution and vendors: We have the best vendors from all the countries that we
want to buy from, they have through market knowledge and provide us techniques and
deliver timely. Globalization has helped us to hire the best vendors and make our
distribution system very strong.
3) Variety: Variety is our major key success factor, on the basis of which we can make our
business famous in no time. We provide the worlds best variety, from different places, in
different prices, in variety of flavors in one place.

critical success factors

Consumer Insight: To sustain success the choclate hub must have insight of the customers
changing needs, you have to be focused that what kind of chocolates your customers
prepered.
Continuous Improvement Programs: Continuous improvement includes offering the
deals,discount cards,annual sales etc improvement in distribution channel which will help us
to be at the top.
Regionalization: the regionalization means the regionalization of products which we will
bring from other countries. The chocolate HUB will run like independent entity in each
divided region with its own targets and resources.
Development of People: Every business responsibility is the development of its employees
as that brings good will factor among the employees and which results into lower attrition
and higher productivity.
Social Responsibility: this is about creating good will among the people where you operate,
about the society which helps and allows you to grow and use its resources and at last the
protection and responsibility regarding environment

Critical Issues
The critical issues and challenges that our business might face are:
Selecting a particular target market
Selecting a particular pricing strategy for our products, because prices all around the
world are different, and its really hard and unjust to price the chocolates according to
one strategy
Having very realistic and achievable goals: Although the concept is new and seems very
profitable, but there are many hurdles in the way. Energy crisis are one of the major

hurdles, because in order to maintain the quality of chocolates we requires the best
refrigeration facilities, for which we need constant electricity.
handling Costs:
economic conditions:
Political Instability:

Marketing Strategies
The market strategy we will use for the chocolates is that we will focus the customer and
target them in different ways like we will offer them the discounts, proportioning deals and
we will also provide the chocolates in customized shapes so that the customer get attracted
because we will be the first one in Pakistan which will going to provide the chocolates in
customized shape.
we will also provide the customized baskets, boxes, gift packs during the different occasions
like mothers day, fathers day, on eid and many more we will also make a strategy that we
will give discounts as in foreign countries gave on their occasions like Christmas, ester etc.
We will also market our chocolates in unique way that we will promote that chocolates which
helps to maintain the blood pressure so that the customers get more attracted towards our
shop.

Mission, Vision Statement

Our aim in the confectionery and sweets industry is to give the chocolate lovers the taste of
the worlds finest chocolates and sweets of all flavors and kinds under one roof. To be the
market leaders by providing quality, quantity and uniqueness that has yet been
undiscovered in our country. To boost the trend of chocolate eating and encourage people to
indulge in the love of chocolate.

Marketing Objectives
This stage in marketing planning is indeed the key to the whole marketing process. The
marketing objectives state just where the company intends to be; at some specific time in
the future. Taking into consideration the growth rate of the market & competition with major
brands, the marketing objectives can be as under:Short Term Objectives

To introduce chocolates in various new flavors.

To make a place in consumers mind.

To provide quality chocolates at affordable price.

Long Term Objectives

Investing in strengthening the grass root level operations like cocoa farming, milk
collection and storage.
A broad product portfolio, a large and efficient R&D department, decentralized
management, etc.

Target Market

We will provide the wide range of chocolates under one roof it will be our unique feature. Our
target market will be kids, youngsters, adults and even old people. We will keep variety of
chocolate flavors for all kind of people. The reason for selecting such a wide range of target
market is also that the trend of chocolate eating is getting diversified to different age
groups, like many adults like having dark chocolate flavors and old people eat sugar free
chocolates. We will open our outlet in phase V DHA, because our target audience will be little
bit restricted to the upper and upper middle class.

Positioning
As the concept of a shop only dedicated to chocolate has yet be undiscovered in Pakistan, so
we wont have any major competitors initially. As were bringing together the worlds best
chocolates in all varieties under one roof, it would be easy for us to position our business
positively in customers minds. As they it will bring to them more variety, and better quality
than ever before. We will provide the worlds best chocolates in premium prices which will
make the customer realize that it really is the best product. In order to maintain our position,
we will provide special services to our customers, detailed information about the new
chocolate brands, and also make them taste the new samples. We will also maintain good
relations with our vendors, so delivery always takes place on time and we never run short on
customers favorite chocolate brands.

Strategies:
This is most critical portion for our success because on basis of our strategies customers will
position brand in their mind. We have to convey right meaning to right customers. We have to
promote our outlet and product to make people aware of our brand. This is a step which will
introduce our product to our target market. To make people aware we will use following steps:

Flexes and banners: We will put flexes and banners all around the city to tell people about
our business and what speciliaty it is offering to them. We will place them in city centers
and posh market areas.
Sampling: whenever we bring in a new brand or type of chocolate, we will give our
customers free samples of those chocolates to make them try the new taste, and give them
awareness of the variety on chocolate flavors and brands in our store.
Facebook page: We will also make a facebook page about our shop. Give constant updates
about our upcoming brands. Arrange picture contests and give away chocolates as gifts.
Packages: We will offer our customers different packages, like a gift package of 12
chocolates and 3 free, on buying 4 you get 1 free and etc

Marketing Program
The detailed knowledge is given below about our product:

Product:
We are a retail shop in Lahore, that will import the worlds finest chocolates of all brands
from the worlds finest chocolate makers, like Belgium, France, Italy, UK and Switzerland.
The House of chocolate will begin its inception for the first time in Pakistan. The concept of

a shop solely dedicated to the love of chocolate is rarely witnessed in our country. The initial
marketing and sales activities will mark our success in the market. From the worlds finest
chocolate brands to purist-pleasing dark chocolate to inventive and artistic creations that
(almost) look too good to eat, The House of Chocolate will offer Pakistanis with the widest
variety of chocolates tastes from all around the world. Our main focus is that the chocolates
lovers of Pakistan get to experience the tastes of the worlds finest chocolates.
Price:
We will set the premium prices of our chocolates, and according to brand of the product and
the country it is from. We will use premium prices to determine the exclusivity of our
chocolates and the country that they belong from.
Place:
As our target market is the upper middle class and the high class, so our location would be
somewhere posh, that would be Defense Phase V most probably. This is where the high
income people dwell mostly, these are the posh people of the city, who have adopted the
chocolate eating trend most rapidly than rest of the people of the city. It will also attract
other people who visit the place, it will be in this place for the people who can afford the
premium prices of the chocolates, and this also a status symbol to operate in that area.
Promotion:
We will use flexes and banners on streets and green belt lights in Defense. Well put posters
in all the major shopping and public places of Lahore. Another tool that we can use is
distributing pamphlets in cars and in houses. We will also use hoardings as a way of
promotion. No major electronic promotion will be used except facbook page and the website.
People:
As told earlier, we our only targeting the upper middle and higher class, people who fall into
high income groups. As poor people wont have the ability to buy imported chocolates at
premium prices. Moreover, we have targeted people of all ages, because we offer them
chocolates in varieties and tastes for all.
Service:
The process of delivering a product is discussed above. We will be providing services through:
Online service
Drive thru service
Home delivery

Market Research
Through different surveys we have conducted our marketing research. The research shows
that there is a clear demand of our product in the market. The lack of variety in chocolates
and the demand of chocolates makes our market and target audience even bigger and wider.
Our research also shows that our competitors like Hyperstar, Pottpuri, Metro and others have a
huge lack of variety in their chocolate stock, and that is the best motivator for us as none of

these provides the wide range of variety of chocolates that we do. As the amount of money
and standards of life of our target market is increasing, the demand of different and
international names of chocolates is also increasing. The high class lifestyle of our target
consumers demands quality and we are in the market to provide that, we not only provide a
wide range but maintain the actual quality and taste of every brand of chocolate as well . So
the need is definitely there and The Chocolate Hub is there to provide it.

Financials:
Activities
Flex & streamers
Hoarding (MM Alam
road,Shouk chowk, DHA
main boulevard,
Samanabad) for 4 months
Facebook, website update
and SEO
Sms Marketing
Sales team required for
events
Sampling

Cost
07,00,000
150,00,000

Total

15,00,000
50,000
500,000
10,00,000

32,250,000

Controls
To run any company or system, control over all matters and everything is very important.
Everyone connected to the company must be ready for any emergency, if something wrong
happens, and should know their roles. Our advertising and marketing should be up to date for a
better place in the market. The promotions, events, activities, changes in any offers and new
offers should be up to date and on time, to facilitate our audiences. Every employee should be
connected and aware of the products and the companys policies.

Implementation
Only planning is never enough, if you need a plan, first it should have a strong planning, then it
should be practical, and the most important and the last step is its implementation. The one
thing that should be kept in mind when planning something is its practicality and execution,
because our plans are not executable the planning will and the eventually the company has to
suffer. So, a separate team of professionals will be given the task of planning the future events
and events for The house Chocolate for a better and secure future.

Contingency Plan
It is always necessary to have a contingency plan, because anything can happen in the
business world. As our product and plans are comparatively unique and restricted only to the
chocolate products, it is really important for us to have strong contingency planning. As we sell
a product which has quality and has a limited audience we have to be strong and to the point
in our planning. There is a huge amount of our target market who loves to have some sweet

stuff after their food. This is the reason why many restaurants today have a long list of desserts
in their menu. For a starter in the market we will do free sampling in different restaurants which
also have the same target market. In these restaurants some of our fine quality chocolates will
be served as desserts, and then we will sign contracts these restaurants and coffee shops to
serve our chocolates and use our name in their desserts menu. Another plan that we have in
mind after restaurants is seminars, functions and private parties of different multinational
companies. We will serve our product in these events to attract more audience and increase
our business.