Marketing for Rococo Chocolates - Business Plan Example

Marketing Plan for Rococo Chocolates July 11, I. SUMMARY Chocolates were first introduced in London in the mid 17th centuries and have since flourished to be one the city’s favorite snacks/ desserts. Centuries later, Chocolate Making has become an industry, with several foreign and local brands enjoying patronage from the target market. Rococo Chocolates, a family business, is one of the local brands that have captivated the market with its artistic execution of famous chocolate recipes, with the own personal touches and styled of its creators and chefs. Having been in the industry for two almost two decades now, the owner/ founder has one selling point – that he has a ‘dangerous passion for chocolates’ (Rococo 2011), which goes to prove how he committed he is to his craft. He first pursued a partnership with Grenada Chocolate Company, and then started rolling out his own stores a few years later. This Business Plan aims to rollout the company’s plan for the next two years, emphasizing on the fact that it has to be in synchrony with industry innovations and growing competition in London and the rest of Europe. While the company has achieved huge amounts of success in the last decade of operations, Rococo Chocolate should not be complacent, and should pursue continuous innovations in terms of products and services. They must keep abreast of the current issues, and work on other thematic advocacies that would make them the top of mind branch when it comes to Chocolates. Management must carefully evaluate their past operations to make careful plans for the future. II. SITUATIONAL ANALYSIS 1. SWOT Strengths Rococo is just one of the many chocolate specialty shops in London. In fact, there are over 10 chocolate shops that offer almost the same product line. But Rococo’s advantage lies in the fact that it doesn’t only appeal to one’s palate. The company treats chocolate making as an art; proof of which is the diversified product offerings that make the brand unique and standing out from its competitors. Rococo boasts of award-winning creators and owners, which guarantees top quality of the products. The company has three locations in key areas in London, and provides products to Waitrose Supermarket outlets strategically located all over the country. Rococo also has what they call a chocolate school which trains other chocolate lovers to prepare homegrown chocolates recipes. Weaknesses Rococo’s flagship products are its chocolate varieties itself, without highlighting another important feature of their stores, which is their dine-in coffee amenities Having to face the possibility that supply for chocolates might decrease due to the current of cocoa farmers in West Africa (Chocolate: Worth its weight in gold 2011) Opportunities It was reported in 2010 that the chocolate industry estimates a retail volume growth of 2% in 2011 for chocolate confectionary in Europe (Growth Predicted in European chocolate market despite grindings date 2011) Threats The fast rising number of chocolate shops in London and nearby areas results to a number of companies in a tug-of-war for the best market share. 2. PESTL Political Situation The London government has actively been implementing programs to assist local businesses in thriving and fighting the global economic crisis. There is an ongoing project called ‘The Mayor’s Economic Recovery Plan’ which aims to support local businesses to overcome economic issues. The city government pledges all out support for local businesses. (Dealing with Recession 2011) Economic Situation Due to the global recession, major adjustments have been made by small to medium enterprises to keep up with the unstable economic situation. About 22% of the local companies have reduced their operating costs (SME Marketing Budget Falls 2011). The challenge for Rococo is to be able to keep a balanced cash flow, and keep operational costs low while aiming for higher profitability by diversifying its product lines. Social Situation London is home to more than 12 major chocolate brands with each their own markets. Europeans are naturally chocolate lovers, and thus explains why the chocolate industry is well loved by the locals and tourists alike Technological Situation The emergence of e-commerce, particularly the internet, proves to be beneficial any business. One can now effectively promote his products in the internet, and offer interactive marketing as well. Having a way to directly reaching the target market is something Rococo is taking advantage today. Legal Situation Except for the usual business requirements entailed for a business to operate in London, there is no remarkable Legal situation that needs to be considered by Rococo Chocolates. 3. Product Portfolios Rococo features a diverse product line which makes the brand attractive to its target market (Rococo Chocolates 2011). These are as follows: Chocolate Bars, Confectionary and Nougats – what is considered to be the basics, to satisfy its target market’s palate Drinking Chocolate – Chocolate beverage that accompany the confectionaries Chocolate Art, Gift Bags and Boxes, Hampers – Basically gift ideas that also provide for aesthetic requirements. Chocolate School – Short term courses on preparing chocolate specialties 4. Segmentation Rococo Chocolates cater mostly to the age range of 16 to 40 years; a wide range but speaks of the flexibility of the company’s products. 5. Competitor Positioning There are about 12 other major local chocolate shops in London. Each company boasts of a ‘unique’ chocolate experience, with its own lists of specialties. Leonidas is one of the more popular brands. The company is originally from Belgium, but has reached many parts of the globe by getting local distributors and franchisees. In London, it boasts of a coffee shop as well (Leonidas in London 2011). Melt is one competitor which has strong online presence. It has an interactive website which encourages people to look more into their product offers. They also have the same product line as Rococo Chocolate. Melt’s tagline is ‘luxury’ (Melt 2011). It caters to the high end market, with its wide array of chocolate goodies and accessories. 6. SMART OBJECTIVES 1. To enable Rococo Chocolates to achieve a 20% increase in revenue for the first six months of implementation. 2. To increase website accessibility by utilizing a cost-per-page online as well as banner advertising. 3. To open a new shop in Nottinghill, London by the end of 2011. 7. MARKETING TACTICS 1. Price Rococo Chocolate is positioned to cater to the upper bracket of the working class, as well as those of the affluent. It is considered to be high end, and as such the pricing strategy follows. Generally, the prices of its product will be at the higher range of the spectrum, and will be maintained as such. 2. Place London is where Rococo started to roll out its operations, and it already has four branches to date, albeit the operating hours are limited. Management targets to open one more in Nottinghill, London this year, and looks at expanding its presence by putting up Rococo Chocolates and Coffee Shop in France and Rome by 2012. The one in Nottinghill will be its concept store, and will showcase a portion that will sell raw cooking materials/ ingredients as well. 3. Product Rococo Chocolates will continue to sell its existing product lines: Chocolate Bars, Confectionary and Nougats Drinking Chocolate Chocolate Art, Gift Bags and Boxes, Hampers Chocolate School And an addition to its product lines, which is the ‘Chef’s Fair’, a corner that sells raw chocolate, baking paraphernalia and related items for individuals who wish to try baking at home. 4. Promotion Rococo Chocolates will rely on non traditional media and below the line advertising to make its presence known in the market. There will be very minimal print, television or radio advertising. There will be merchandising activities along nearby roads and villages using announcement banners and streamers where applicable. These materials shall already be in full display two weeks prior to launch. The company will seek the assistance of two or three media personalities who will announce the store in their media appearances in exchange for privileges in the store. This way, traditional media may still be tapped despite limited funds for advertising. There will also be newspaper advertisements one week prior to the launch. This is to be able to announce the launch date and the concept, and spark interest among the local market. The ads will not be sustained anymore with more print ads due to limited number of resources. The internet will be an important tool to captivate the market. There will be an official website for the company which will feature the menu choices. A loyalty program will also be launched simultaneously. Program members are entitled to obtain materials such as limited edition shirts and other items. They will be given privilege cards for them to use while they are in the store. There will also be loyalty programs to encourage the customers to return for next day purchases. Periodic promotional programs such as raffle and discounts will also be implemented. There will also be thematic celebrations such that customers will be given value added products and service in celebration of certain occasions such as Christmas, Valentines and the likes. Word of mouth is an important tool to expand the market. As such, it is important to the company to be able to make each customer’s visit very satisfying and remarkable for the store to be able to earn referrals. The manpower and staff are the main assets of the store. They will form part of the advertising team in such a way that they will be trained to establish good customer rapport. Rococo Chocolates will also partake in local activities and will seek to sponsor civic and non civic events. This way, there will be sampling opportunities and the company will have a way to touch base with individuals and groups as well. The objective is to build a solid group of returning customers to be able establish sales and generate returns. It will also partner with local merchants to be able to maximize advertising efforts at a minimal budget. Other merchandising and points of sale materials such as shirts, caps, pens and other premium items will also be available. These will be used as gifts for loyal customers and may also be sold from time to time. III. EVALUATION PROCESS AND MARKETING CONTROL 1. Start-up costs Rococo Chocolates will need to rent a space for its store operations. To achieve its desired look, the store will also have to be renovated and with the help of an Interior Designer, will be arranged to achieve a minimalist look integrated with wooden fixtures and furniture. Other assets for acquisition include baking and bar equipment, kitchen equipment, and dining equipment. Advertising expenses include design and production of merchandising materials; tie up fees, projected sponsorship and talent fee costs. Store Space Rental (Inclusive of first six months rental) $ 12,000 Store Renovation $ 80,000 Store Equipment and Furniture $ 80,000 Advertising and Promotions $ 30,000 Permits and Licenses $ 5,000 Initial Stocks Purchase (Raw Materials) $ 20,000 Other Expenses $ 23,000 TOTAL $ 250,000 2. Monthly budgets   Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Projected Gross Income Coffee 5,000 5,000 8,000 8,000 10,000 10,000 Confectionaries 3,000 3,000 5,000 5,000 8,000 8,000 Total Projected Gross Income $ 8,000 $ 8,000 $ 13,000 $ 13,000 $ 18,000 $ 18,000 Projected Expenses Equipment and Materials             Store Construction and Architecture 80,000           Store Equipment and Furniture 75,000           Registration and Rental Costs             Business Registration Costs 5,000           Store Space Rental 12,000           Manpower Costs 7,000 7,000 7,000 7,000 7,000 7,000 Ads and Promo Costs 10,000     10,000     Others 1,000 1,000 1,000 1,000 1,000 1,000 Total Project Costs $ 190,000 $ - $ - $ 20,000 $ - $ - Coffee 10,000     10,000     Confectionaries 10,000     10,000     Total Projected Expenses $ 210,000 $ - $ - $ 40,000 $ - $ - Net Income $ (202,000) $ 8,000 $ 13,000 $ (27,000) $ 18,000 $ 18,000 Rococo Chocolate’s evaluations will be based primarily on meeting sales and marketing objectives as laid out above. Management shall be conducting sales analysis every quarter to ensure that expectations are met, and to implement tactical sales and marketing strategies where applicable. Reference List Chocolate: Worth its weight in gold. Retrieved July 16, 2011 from http://www.independent.co.uk/life-style/food-and-drink/features/chocolate-worth-its-weight-in-gold-2127874.html Growth predicted in European chocolate market despite the grindings data. Retrieved July 16, 2011 from http://www.confectionerynews.com/Financial/Growth-predicted-in-European-chocolate-market-despite-grindings-data SME Marketing Budget Falls. Retrieved July 17, 2011 from http://www.smallbusiness.co.uk/channels/sales-and-marketing/news/1641038/sme-marketing-budgets-fall.thtml Dealing with Recession. Retrieved July 17, 2011 from http://www.london.gov.uk/priorities/business-economy/dealing-recession Rococo Chocolates. Retrieved July 18, 2011 from http://rococochocolates.com/products.html Melt. Retrieved July 18, 2011 from http://www.meltchocolates.com/ Leonidas in London. Retrieved July 18, 2011 from http://www.leonidasbelgianchocolates.co.uk/shops.html Read More