BUSINESS STRATEGY

Business Strategy



Business Strategy

Introduction

The aim of this report is to outline a strategic communications plan in order to assist "Donovans" in fulfilling its objective of emphasising quality within its target consumers mind.

The Australian Chocolate Confectionery Market

The New Zealand and Australian confectionary market was forecasted in 2006 to be worth $5.18 billion as being worth $3.5 billion accounting for the majority of the New Zealand and Australian confectionary market. In addition to this, market penetration is also high with 86 per cent of adults saying they purchase chocolate confectionery . A positive point can be seen, as there are a growing number of confectionery shops in Sydney, which is seen by "Donovans" as an area of significant growth and justifies the company's forecast for expansion. As well as this, the company's recent investment in packaging has allowed them to safely carry up to 2Kgr of chocolate via next day delivery.

Competition

The three main players, which dominate the chocolate confectionery market, are Cadbury, who leads with a 24 per cent share, followed by Nestlé Rowntree with almost 19 per cent share. The third largest player can be seen as Masterfoods who has succeeded in boxed chocolate market since the launch of Celebrations, Bounty Calapuno and Amicelli and the development of their galaxy brand.

Another competitor is Thornton's, who is the only major confectionery company, which has its own chain of retail outlets and with it a range of boxed brands. Ferrero is another chocolate manufacturer with a share of 8 per cent the majority of which is accounted for by its Ferrero Rocher brand.

Furthermore, even though own-label boxed chocolate confectionery market is relatively small, it is presently expanding rapidly as there is an increase with supermarket developing sub-brands such as Sainsbury's "Taste the Difference" and Tesco's Finest Range in order to create ...