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Chocolate Industry

In: Business and Management

Submitted By adooli
Words 1857
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SI manufactures and sells high quality handmade chocolates in the Australian chocolate making industry. SI would come under the umbrella of the specialised chocolate makers who compete differently to the Large Chocolate manufacturers. The large chocolate manufacturers generally have large manufacturing facilities, manufacture in bulk and gain economies of scale. They compete primarily on reasonable quality product for a lower than average price to a large scale consumer market. Whereas the specialised chocolate makers compete primarily on quality products to a consumer who does not have price as the main criteria for choice. These fine chocolate makers cater to a niche market.

The industry Chocolate making industry is 55% of the Australian Confectionary Industry of approximately $3.6 billion at around $2 billion. By industry standards SI’s market share at 2,3% or $44 million is relatively small.

Value Chain
SI: Purchase Cocoa beans-(Roasting, Chocolate making)-Product Development-Marketing (collaborations with other gourmet food mfgs)- Retailing(company owned outlets).

Industry Segments
In general industry segments are based on the characteristics of the product or service. Those products or services can be linked to customer/market segments. Industry segments in the chocolate making industry are Bars, Blocks, Boxed, Seasonal. If one looks at the timing when a majority 80% of boxed chocolates are sold one can see that it is during the same time that the seasonal chocolates are produced and sold. The seasonal chocs comprise specialty types like Easter eggs, Easter bunnies, hearts, Santa, reindeers etc. So one can look at the seasonal and boxed items as one single potential market and a manufacturer can time the release/manufacture of boxed and speciality chocolates simultaneously. If one combines boxed and seasonal sales they account for 27% of industry…...

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