Canadian Chocolate Bar Market Essay Example
REPORT I: Marketing Background
Economic Trends:
Increase in cost for manufacturing such as packaging or ingredients.
Chocolate bars are thought of as impulse buys, which means they require no thought. This is due to how inexpensive they are. However, if an ingredient such as sugar was to rise drastically, so will the cost of the chocolate bar therefore changing the buyer's perspective on the product class.
Social, Demographic Trends:
Although chocolate bars are thought to have been more enjoyed by a younger consumer, crispy crunch has always focused towards older demographics. This is shown through their mature packaging commercials.
Healthier Living:
Consumers are now watching what they eat, and want to avoid products that contain ingredients that have become deemed as fattening.
Technology:
Internet advertising is at an all time high, and consumers are attracted to products that they can get more information on over the Internet. Also, "buzz" promotion can be created efficiently via Internet.
Political:
French/English Packaging
In Canada it is illegal not to have both English and French writing on the packaging.
Ingredients:
All ingredients must be labeled on the packaging.
Market Analysis
Total Canadian Size and growth:
From 1996 to 2000, the chocolate market enjoyed a total growth rate of 19.1% with retail sales in 2000 producing a whopping $13.7 billion.
Competitive Analysis
Market Trends:
Hershey Canada is one the largest competitors in the chocolate bar market. Hershey brands have a strong market value and a long history dating back to 1903. Hershey Canada owned three of the top five chocolate bars sold in 2000 to 2001. Hershey's three principle brands held fifteen percent of the Canadian market share. Hershey's brands, Reese Brand, and Hershey Milk Chocolate gained 0.9 percent market share in 2000-2001. Hershey brand Oh Henry lost 0.3 percent market share but still holds the number four
Economic Trends:
Increase in cost for manufacturing such as packaging or ingredients.
Chocolate bars are thought of as impulse buys, which means they require no thought. This is due to how inexpensive they are. However, if an ingredient such as sugar was to rise drastically, so will the cost of the chocolate bar therefore changing the buyer's perspective on the product class.
Social, Demographic Trends:
Although chocolate bars are thought to have been more enjoyed by a younger consumer, crispy crunch has always focused towards older demographics. This is shown through their mature packaging commercials.
Healthier Living:
Consumers are now watching what they eat, and want to avoid products that contain ingredients that have become deemed as fattening.
Technology:
Internet advertising is at an all time high, and consumers are attracted to products that they can get more information on over the Internet. Also, "buzz" promotion can be created efficiently via Internet.
Political:
French/English Packaging
In Canada it is illegal not to have both English and French writing on the packaging.
Ingredients:
All ingredients must be labeled on the packaging.
Market Analysis
Total Canadian Size and growth:
From 1996 to 2000, the chocolate market enjoyed a total growth rate of 19.1% with retail sales in 2000 producing a whopping $13.7 billion.
Competitive Analysis
Market Trends:
Hershey Canada is one the largest competitors in the chocolate bar market. Hershey brands have a strong market value and a long history dating back to 1903. Hershey Canada owned three of the top five chocolate bars sold in 2000 to 2001. Hershey's three principle brands held fifteen percent of the Canadian market share. Hershey's brands, Reese Brand, and Hershey Milk Chocolate gained 0.9 percent market share in 2000-2001. Hershey brand Oh Henry lost 0.3 percent market share but still holds the number four