day chocolate company essay
This paper is dealing with the Day Chocolate Company, which has been first established in 1993 by a co-operative set of Ghanaian farmers. Thanks to liberalization of the cocoa market in Ghana (1990s) the first step of export was made. Because of the fact that farmer's benefits were not thought of by the governmental cocoa agent, the need for a cocoa agent became obvious. This is why the Kuapa Koko was established in 1993 to appeal to the benefits for the farmers. With two farmer representatives the Ghanaian farmers agreed to start The Day Chocolate Company in 1995. The farmers' aim was to establish a farmer owned organisation, where farmers were able to work together for their own benefit and trading their own cocoa (Divine 2007). On the following pages the consumer segment, at which day Chocolate is aiming at, and the assessment about what makes it a strong brand is given. Furthermore, the general market trends (opportunities and threats) are presented as well as the question of how Day Chocolate should cope with those opportunities and threats. Finally, it will be discussed where Day Chocolate should go when internationalizing to other parts of the world. Case analysis / Consumer segment
The consumer segment that Day Chocolate is aiming at is the so-called "concerned consumer". These types of consumers find it important where their products come from. They want to buy Fair trade products like Day Chocolate because they find it important that with buying that product, they really help those who have produced it. Fair trade products insure the integrity of these companies, and therefore the "concerned consumer" is willing to pay more for a certain product, knowing that the producers in third world countries benefit from this. Although the concept is becoming more and more popular, usually (not always) this type of consumer has a fairly good income. This is usually the case, not because people with a less good income are not interested in Fair trade, but because Fair trade products are mostly slightly more expensive than regular products, and people with a lower income need to keep a tight budget. This is probably the reason that Day Chocolate is selling their products in the top UK supermarkets instead of in a lower price range. According to Adams & Raisborough (2008), there is a suggestion that customers who are interested in buying fair trade products are located in the so called middle-class. Besides, there seems to be a relation between higher education of buyer and fair trade, by which it can be proposed that middle-class segmented buyers have more money to spend. What makes the Day Chocolate a strong brand
In order to say what makes the Day Chocolate a strong brand one has to have a closer look at the company's competitive advantage, their strengths and weaknesses, the customer equity and their marketing mix. Regarding the company's products, its structure and its mission it gets obvious that its competitive advantage is its fair trade mark. In 1970, the fair trade market has been established by Oxfam, a charity organization, and several other European aid organizations. Consumers who are buying fair trade products are seen as being ethical consumers. Ethical customers are concerned with topics like for instance 'fair labour conditions, environmental care and fair prices' (Transfair USA, 2008). Thus, it can be stated that Day Chocolate's competitive advantage is its fair trade mark because it addresses a special type of customer who are willing to pay more money for products and are loyal to companies who are selling fair trade products. Moreover, one the one hand, the company's product excellence is one of their main strengths. They pay very much attention to the quality of their products and their suppliers und this is why the customers are very satisfied and are willing to pay more. The customers can be sure that they will buy great quality und thus they are very...
References: * Bized, 2010, "Visit: The day Chocolate Company", http://www.bized.co.uk/compfact/daychocolate/chocindex.htm, retrieved on the 20th of February 2010.
* Confectionery News, 2007, "Chocolate Trends 2007", http://www.confectionerynews.com/The-Big-Picture/Chocolate-Trends-2007, retrieved on the 20th of February 2010.
* Datamonitor, 2008, "Global ethical revolution is driving growth in fair trade sales", http://www.datamonitor.com/store/news/?productid=284FC7F1-DE33-48B1-861A-63F2447B3DE6, retrieved on the 20th of February 2010.
* Divine, 2007, http://www.divinechocolate.com/about/story.aspx, retrieved on the 20th of February 2010.
* The Gourmet Retailer, 2008, "2008 Trend Report: Premium Chocolate", http://www.gourmetretailer.com/gourmetretailer/content_display/trends/e3ic1abd1883d2156371dc907ea114507eb, retrieved on the 20th of February 2010.
* Hollensen Svend, 2008 , essentials of global marketing, Prentice Hall, 4th edition
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