The Day Chocolate Case

The Day Chocolate Case

International marketing

Assignment 1

Date: 2nd of March 2011

Group 1.4

Table of contents

Table of contents2

1. Introduction4

1.2. Main characteristics of The Day Chocolate Company4

1.3. Porters Diamond5

1.4. Comparative industry structure analysis: Porter’s five forces5

2. Applying available theories, concepts and statistics to answer the requested questions6

2.1. Question 1: Describe the consumer segment Day Chocolate is aiming at6

2.2. Question 2: Asses what makes The Day Chocolate such a strong brand (e.g., competitive advantage, strengths, weaknesses and customer equity). In this, also describe the marketing mix for Day Chocolate.7

2.2.1. SWOT analysis: strengths and weaknesses7

2.2.2. Brand strength analysis7

2.2.3. Customer equity8

2.3. Question 3: Describe the general market trends in the chocolate market. Come up with opportunities and threats.8

2.3.1. Trends in the chocolate market8

2.3.2. Trends in the fair-trade chocolate market9

2.4. Question 4: Considering the strengths, weaknesses, opportunities and threats, what should Day Chocolate do? Should they pursue the same market segments, with the same products?9

2.5. Question 5: The Day Chocolate company wants to internationalize to other parts of the world. Where should they go?10

2.5.1. Motives, Triggers and Barriers to internationalization10

2.5.2. Strategic approach to internationalization11

2.5.3. The country choice12

2.5.3.1. First screening: determining what product to offer to the world market12

2.5.3.2. Second screening: Macroeconomic and financial conditions12

2.5.3.3. Third screening: Political and Legal forces13

2.5.3.4. Forth screening: socio-cultural forces13

2.5.3.5. Fifth screening: Competitive enviroment14

2.5.3.6. Final selection14

2.6. Conclusions14

3. Statistical Annex15

3.1. Figures16

Figure 1: Five forces analysis16

Figure 2: The chocolate confectionary markets today16

Figure: 3: Geographic distribution of chocolate in 2020 – Share of total17

Figure 4: Comparison of New York’s cocoa prices and the Fairtrade price, 1994-200917

Figure 5: A guidebook to internationalization18

Figure 6: Income level Vs. Expected growth18

3.2. Tables19

Table 1: SWOT analysis19

Table 2: Motives for starting export19

Table 3: Triggers of export initiation19

Table 4: Barriers to export initiation19

Table 5: Internationalization models20

Table 6: Fair trade products - Retail sales volume and variation20

Table 7: expected GDP growth for 201120

Table 8: Global Competitiveness Index 2010/11 – First Pillar: Institutions21

Table 9: Global Competitiveness Index 2010/11 – First Pillar results. First 30 nations.21

3.3. Maps22

Map 1: Prevailing world religions22

Map 2: English speaking countries22

4. Literature Cited23

1. Introduction

The objective of this paper is to give the reader an insight in The Day Chocolate Company, based on existing marketing theory. This paper is starts with a first part dedicated to the general impression of the firm and the environment in which it is operating, by means of Porter’s Diamond. The paper continues with a subsequent analysis of the main determinants of this company’s competitiveness. This is achieved by using Porter’s five forces model.

On a second segment, the document covers the answers to the proposed question. There, the market segment the company aims at will be discussed. Afterwards, a SWOT analysis takes place in order to determine The Day Chocolate’s strong brand determinants (e.g., what is their competitive advantage, their strengths and weaknesses, customer equity etc.). At this point, the marketing mix for the firm will also be described. Later, market trends will be looked upon. Finally,...


Cited: Äijö T., Kuivalainen O., Saarenketo S., Lindqvist J., & Hanninen H., (2005), Internationalization handbook for the software business.
Annual report of Divine Chocolate, (2008-9).
Byers A., Liu P, (2008), Value-adding standards in the North American food market, Food and Agriculture Organization of the United Nations.
Doherty B., Tranchell S, (2004), New thinking in International trade? A case study of the day chocolate company.
Fair trade Annual report (2009-10), Growing stronger together.
Hollensen S, (2008), Initiation of Internationalization.
International Cocoa Organization, Annual report (2008-9).
Michael E. Porter(1975), From the book of Hollensen (2008), Essentials of Global Marketing, IBSN 978 027 371 7843, page 73-82.
Pay E., (2009), The market for organic and fair-trade cocoa, Food and Agriculture Organization
Pham M., Ausema T., Ten Brug H., Van Leeuwen B, (2010) International marketing – case study: Divine Chocolate Ltd (Formally the Day Chocolate Company).
Rabobank, (2010), The chocolate confectionery market today: consumer trends and outlook.
Schwab K, (2010-11) The global competitiveness report, World economic forum.
Tranchell & Doherty, 2005.
IMF, World Economic Outlook (2011) Global recovery advances but remains uneven.
[7] Michael E. Porter (1975).
[9] Food and Agriculture Organization, 2009
[10] ibidem.
[14] http://www.dubble.co.uk/user/register
[15] The market for organic and fair-trade cocoa, 2009.
[20] Tranchell & Doherty, 2005.
[22] www.transfairusa.org and Food and Agriculture Organization (2009).