MARKETING COMMUNICATIONS

Marketing Communications

Marketing Communications

Company profile

At present our company is a small handmade confectionery company based in Tottenham North 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 chocolate factories in Belgium and Caroline having a profound background in accountancy being able to deal with growing paperwork. We have forecasted a boost in annual turnover of "Chocolate Heaven" 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, chocolate Heaven supply its products in wholesale quantities within 25 miles around North London base.

The UK chocolate confectionery market

The UK confectionary market was forecasted in 2002 to be worth £5.18 billion and the UK Chocolate 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 chocolate confectionery . A positive point can be seen, as there are a growing number of confectionery shops in the London area, which is seen by "Chocolate Heaven" 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. The prospect of such investment means that the company can supply to the growing number of specialists confectioneries within the London area with "Chocolate Heaven" own brand of luxury boxed chocolates as well as an opportunity to consider mail order.

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 main player in the boxed chocolate market is Kraft Jacob Suchard with strong brands such as All Gold and Terry's Chocolate Orange, which takes 13 per cent share of the market .

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 ...