Van Der Steen Candy Company

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Van Der Steen Candy Company
Marketing Case Analysis

1. Identification and explanation of underlying problems and/or issues

A) Issues that impact the success of the company:
Demographic: 25% business 75% consumers, foot traffic
Social/Cultural: Seasonal business, gifts, quality conscious, health conscious
Economic: Premium-discretionary item, inflation (ingredient prices)
Capital/Legal: haven’t been affected by urban renewal
Competitive: Market structure, monopolistic competition (differentiated product, many stores)
Strengths of the firm:
* Quality of product-Natural ingredients, hand dipped chocolate * Word of mouth
* Expert staff-loyal
* Joe has a degree
* Tradition-unchanged recipe’s/ingredients are recognizable * Price inelasticity
* Building and equipment are in excellent condition
* Facility available- extra capacity
* Variety of candies
* Repeat customers-90%
* Location- center of downtown
* Objectives are measurable

Weaknesses for the firm:
* Unchanged recipes and designs since 1855- people want something new * Poor advertising-all word of mouth
* Unused facility
* Joe lacks experience
* Limited selection-only one size box
* Prices are too low for quality
* Limited customer base
* Lack economies of scale-limited distribution

B) The underlying problem is that the company has an unclear target market. We wouldn’t be able to figure out the limited distribution, formal advertising, or consumable objectives without knowing the target market first. * If the company moves to a more newly developed urban location it could attract more customers to stumble upon the store. People tend to gravitate towards newly developed areas to see what’s offered, and this would make the store more visible, causing more revenue. * The company is mainly bringing in revenue from families and businesses....
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