CASE ANALYSIS

Case Analysis

Case Analysis

Introduction

The aim of this report is to outline a strategic communications plan in order to assist "Memory Lane Sweet Company" in fulfilling its objective of emphasizing quality within its target consumers mind.

Task One

Memory Lane Sweet Company

At present our company is Confectionery Company based in London. We specialise in luxuriant cream and liqueur fillings, which for quality and taste, is ranked alongside the finest in the world. Additionally the opportunity of being part funded by the government with a grant has enabled our company to move to a purpose built facility based in a major industrial regeneration site. This financial backing was part of the governments intentions to encourage industries with growth potential to expand production and be able to offer local residents jobs. We both have existing skills and expertise with Albert having served an apprenticeship with one of the finest factories in UK having a profound background in accountancy being able to deal with growing paperwork. We have forecasted a boost in annual turnover of "Memory Lane Sweet Company" from £ 250,000 to £ 600,000 within three years as well as doubling our staff figures, which totals to six. At present, the customers of our company are department stores in the London area, but due to the perishable ingredients of the products there is a restriction on the geographical area. Consequently, Memory Lane Sweet Company supplies its products in wholesale quantities within 25 miles around North London base. (Lancaster, 2009)

The UK confectionery market

The UK confectionary market was forecasted in 2002 to be worth £5.18 billion and the UK sweet confectionary market is forecasted in 2002 as being worth £3.5 billion accounting for the majority of the UK confectionary market. In addition to this, market penetration is also high with 86 per cent of adults saying they purchase confectionery. (Lancaster, 2009) A positive point can be seen, as there are a growing number of confectionery shops in the London area, which is seen by "Memory Lane Sweet Company" 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 via next day delivery. The prospect of such investment means that the company can supply to the growing number of specialists confectioneries within the London area with "Memory Lane Sweet Company" own brand of luxury boxed Sweets as well as an opportunity to consider mail order.

Competition

The three main players, which dominate the confectionery market, are Cadbury, who leads with a 24 per cent share, followed by Nestle Rowntree with almost 19 per cent share. The third largest player can be seen as Master foods that have succeeded in boxed market since the launch of Celebrations, Bounty Calapuno and Amicelli and the development of their galaxy brand. Another main player in the boxed market is Kraft Jacob Suchard with strong brands such as All Gold and Terry's sweet Orange, which takes 13 per cent share of the ...