Chocolate Industry Essay

1855 Words Nov 5th, 2010 8 Pages
SI manufactures and sells high quality handmade chocolates in the Australian chocolate making industry. SI would come under the umbrella of the specialised chocolate makers who compete differently to the Large Chocolate manufacturers. The large chocolate manufacturers generally have large manufacturing facilities, manufacture in bulk and gain economies of scale. They compete primarily on reasonable quality product for a lower than average price to a large scale consumer market. Whereas the specialised chocolate makers compete primarily on quality products to a consumer who does not have price as the main criteria for choice. These fine chocolate makers cater to a niche market.

The industry Chocolate making industry is 55% of the
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While SI plays in all the basic industry segments product differentiation is achieved by the quality of the product, method of production, quality of its inputs, the method of selling, the overall customer experience. It maintains these standards of customer experience by selling exclusively through its own retails outlets

Industry Life-Cycle

SI: Overall the Industry has matured and growth is moderate. However there has been significant growth in the fine chocolate market. Over the two years ended 2009 the high quality chocolate market has grown 46% and is significantly higher than the other segments. There is an expectation that this segment will grow at a rate of more than 5 times that of chocolates overall by 2014. One can conclude that not all segments of the chocolate making industry are at the same lifecycle stage. While most segments are in the mature phase the high quality (and possibly handmade) chocolate is in the growth phase. SI is well placed to capitalise on this growth and would do well to be a big part of this growth expectation. While SI has a 2.3% market share, it is unclear by how much the company has grown to capitalise on the 46% growth in the high quality/boxed/seasonal segment. There is indication that the number of stores has increased with the company opening stores in Melbourne so one can assume that there has been growth. Not sure at this stage by how much.

industry’s future

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