1. One factor influencing Divine Chocolate Ltd’s pricing decisions is the fact Kuapa Kokoo owns 45% of Divine Chocolate Ltd and influences the company’s decisions and receives a share in the profit. This means that the company will have to think about what price to make the chocolate bar in order to still receive a good amount of profit after Kuapa Kokoo takes their share of it. If they don’t consider this, they make not make much profit, if any at all, and their business will be unsuccessful leading to loss of sales and no profit.
A second factor affecting their pricing decisions is the competition they have with Cadbury’s. Cadbury’s bars of chocolate cost 82p and Divine Chocolate Ltd’s chocolate bars are 81p. They have to consider their
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This means Divine Chocolate Ltd will not be much competition for Cadbury’s and other brands. A second advantage is that they carry a USP because not only do they work with fair-trade meaning the people who grow the cocoa-beans are getting a fair share in the money, but they also give all their profit to charity or reinvest in it, which managed to help communities afford to build four schools each year in Ghana. This will help lead to more sales and profit because customers will like the idea that buying Divine Chocolate Ltd’s chocolate bar will help people in poorer countries. A second disadvantage is that although they are cheaper than Cadbury’s, there is a very small price difference of 1p. This will not give much competition for other competitors because customers may be willing to spend 1p more to have a chocolate bar that is more popular and well known. This will mean less sales for Divine Chocolate Ltd and more sales for their competitors. In conclusion, Divine Chocolate Ltd could be more of a competitive company if they lowered their price of their chocolate bars and also promoted their products more. This will help raise sales and gain more profit, meaning Cadbury’s and other brands will feel more in competition with