Zotter
Budget in EUR '000s | Year 1 | | Year 2 | | Year 3 | | | | | | | Total revenues | 17903 | | 24527 | | 35809 | | | | | | | Materials | 5797 | | 6898 | | 8967 | SG&A/Packaging/Transport | 4014 | | 6663 | | 9731 | Total cost of goods sold | 9811 | | 13561 | | 18698 | | | | | | | | | | | | | Labor | 2421 | | 2638 | | 3350 | Other | 7148 | | 7719 | | 11351 | Total operating costs | 9569 | | 10357 | | 14701 | | | | | | | Total Costs | 19380 | | 23918 | | 33399 | | | | | | | Income before taxes | -1477 | | 609 | | 2410 |
Explanation budget
For the revenues we used the average growth of the past two years plus the amount of extra growth we expect the new stores will add to. The average amount of the growth the past two years was 17% we expect an extra of 8% of growth from the new stores. Other costs increased by a large amount because new stores will have to be opened and more money will go into marketing. Some costs will grow less than the increase in sales this is because the marginal costs will decrease. The transport costs will increase because the new target countries are further away. After the first year investments in marketing and stores already a positive income before taxes is expected. [1]
[1] Zotter- Living by Chocolate, page 17 table
Marketing Mix
Product
Zotter has 8 different kinds of chocolate products. All there chocolate is according Zotter organic and fair trade. The original chocolate are the Hand Scooped bars and they have more than 200 flavors. And every season 70 new flavors are added. All the flavors have their own artistic package. Then there is the Labooko bars line these enables the consumers to compare 2 pure chocolate bars from different regions with each other. Besides the bars to eat Zotter also has drinking chocolate bars, these bars you have to put in hot milk and then are ready
Explanation budget
For the revenues we used the average growth of the past two years plus the amount of extra growth we expect the new stores will add to. The average amount of the growth the past two years was 17% we expect an extra of 8% of growth from the new stores. Other costs increased by a large amount because new stores will have to be opened and more money will go into marketing. Some costs will grow less than the increase in sales this is because the marginal costs will decrease. The transport costs will increase because the new target countries are further away. After the first year investments in marketing and stores already a positive income before taxes is expected. [1]
[1] Zotter- Living by Chocolate, page 17 table
Marketing Mix
Product
Zotter has 8 different kinds of chocolate products. All there chocolate is according Zotter organic and fair trade. The original chocolate are the Hand Scooped bars and they have more than 200 flavors. And every season 70 new flavors are added. All the flavors have their own artistic package. Then there is the Labooko bars line these enables the consumers to compare 2 pure chocolate bars from different regions with each other. Besides the bars to eat Zotter also has drinking chocolate bars, these bars you have to put in hot milk and then are ready