Chocolate Case

Topics: Fair trade, Chocolate, Marketing Pages: 7 (1764 words) Published: February 27, 2013
Case Day Chocolate




3.Describe consumer segment Day Chocolate

4.Diamond model Porter for Day Chocolate

5.SWOT analyse

6.Marketing mix for Day Chocolate

8.General market trends

10.Advice for Day Chocolate

11.Where to internationalize?




Consumer segments

The consumer segment which Day Chocolate is aiming at are the “concerned consumers”. The “concerned consumer” is a concept that is used for consumers who find it important to know where their products came from. They are willing to buy Fair Trade products like Day Chocolate because they find it important to help those who really created the product. Fair Trade products insure the integrity of the companies who make them. This is the reason the “concerned consumer” is willing to pay more for a product because they know for certain that they will help the producers in third world countries. Even though this concept of Fair Trade is becoming increasingly popular, the type of consumer who buys Fair Trade products normally has a modal or higher income. This is generally the case because Fair Trade products are usually more expensive than normal products (see figure 1) and people with a lower income cannot afford these expensive products. This is likely to be the reason that Day Chocolate is selling their products in the top UK supermarkets instead of the lower quality ones.


Porter Diamond model

According to marketing book ‘Global marketing’ by Sven Hollensen, the Porter Diamond is defined as ‘the characteristics of the home base that play a central role in explaining the international competitiveness of the firm- the explaining elements consist of; factor conditions, demand conditions, related and supporting industries and firm strategy. Also structure and rivalry, and change in government plays an important role.

For Day Chocolate is it important to create a competitive advantage, so these factors plays an incredibly important role. The elements are described below:

Factor conditions: Day Chocolate has a benefit because they buy their cocoa from Kuapa Kokoa, a small-scale cocoa farmer in Ghana. Ghana has numerous of cocoa plantations and the country conditions like the climate and people that have knowledge about cacao beans. All in all it gives an advantage in the production of cacao beans.

Demand Conditions: Day chocolate chooses to be a Fair Trade product while consumers are more and more aware of and open to the concept of Fair Trade. Consequently, the demand will only increase for Day Chocolate.

Related and Supporting Industries: Day Chocolate has different partners. It buys its cacao beans from Kuapa Kokoa. Chocolate Day has commitments with NGO twin trading and with The Body Shop. They share it’s ownership. Their milk chocolate recipe was developed with UK tastes in mind. Furthermore the support of charities Comic Relief and Christian Aid, Day chocolate has resulted in getting both Devine and Dubble listed in all the top UK supermarkets. Another helpful factor for Day Chocolate was that The Department for International Development guaranteed a bank loan. In other words, they have different supporting industries which combine into one big advantaged industry.

Firm strategy, structure and rivalry: Day Chocolate is a large, strong company, but also faces rivalry. Chocolate is a basic products and many firms produce and sell chocolate. However Chocolate Day distinguishes itself by using Fair Trade products, this is important because this is becoming an increasingly important subject for consumers, and government. Furthermore, Day chocolate supplies chocolate for own label products in Co-op and Starbucks in the UK, and by doing so becoming more popular.

Government: Day Chocolate has an official Fair Trade label licensed by...
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