COCOA DELIGHTS

Marketing Opportunities

Barbara Bernal
12-07-2021
Contents
Executive Summary......................................................................................................................3
Company Overview..................................................................................................................4
Mission, Vision and Philosophies.........................................................................................4
Main Objectives....................................................................................................................4
Situational Analysis..................................................................................................................4
Marketing Analysis...............................................................................................................4
Customer Analysis................................................................................................................4
Product benefits and unique Selling Proposition for each target market.................................4
Competitive Analysis................................................................................................................4
Gap Analysis.............................................................................................................................4
1 – Company Overview................................................................................................................5
2 – Investigating new market opportunities.................................................................................6
3 – Expanding into new markets..................................................................................................6
4 – Target Market Segments........................................................................................................7
Primary target market.............................................................................................................7
Secondary target market.........................................................................................................7
5 – Methods of Evaluating Opportunities....................................................................................8
6 – Rank the Opportunities........................................................................................................11
7 – Competitors..........................................................................................................................11
8 – Recommendations................................................................................................................12
9 – Conclusion............................................................................................................................12
Executive Summary
This document is about new marketing opportunities for Cocoa delights. This is a full and
complete study of the market Cocoa Delights is inserted on and new branches that they could
explore to increase the profits with some investment. Cocoa delights is a consolidated
company that has been working on the market for several years and it's expanding its business
constantly. Cocoa delights believe in the philosophy of joining creativity and innovation, and
from that philosophy came our way of thinking.
We dare to create the unconventional.
From this thinking we decided to explore the three business opportunities that are going to be
described below.
The first business opportunity found was the ice cream branch, we wish to explore the whole
ice cream market and we believe that this market will give us a great number of opportunities
and allow us to think of different ideas and to expand this Branch even more. For now, we are
going to start with the dark chocolate ice cream from cocoa delights, we are going to
transform our dark chocolate experience, which is vast, into the ice cream ranch and make it
even better.
The second opportunity we thought of is the production of chocolate bars for people that we
use this item to produce other delicacies. We think will require the smallest investment and
will bring the higher profits.
The third and last opportunity is a partnership to a company called Nuts About Life which has
been selling nuts in the Australian market for a long time already and it's a very consolidated
company in the market, for that reason we decided to develop this partnership with them.
Company Overview
Founded in 2000, Cocoa Delights is one of the youngest gourmet chocolate
manufacturers in the industry. However we do not view our youth as a weakness, on the
contrary, our youth is associated with our two most valued attributes: creativity and
innovation. 
Mission, Vision and Philosophies
Cocoa Delights, has a document with 41 environment friendly commitments, aligning them
with the United Nations Sustainable Development.
The company expresses it's values and mission by offering healthy and nutritious solutions that
contribute to the well-being of our consumers and their families, in all of their life phases.
The goals are applied in every step of the production chain, passing through the operations,
suppliers, rural productors and even to clients and customers.
These commitments are divided in three areas of impact: People and Families, Comminutes
and Planet. Among these compromises are actions of sugar reduction, fat and sodium in our
products, protect the human right in all of it's production chain and achieve a neutral impact
on operations. 
Main Objectives
Cocoa Delights main objectives are to expand their market areas of action to have different
challenges, acquire different customers, develop new products and reach different levels.
To be present in more than one market is a valuable strategy that will help the company to
remain competitive even in the worst case scenario.
Business Objectives

Cocoa Delights business objectives are to become the leader chocolate brand in the
Australian market for premium quality chocolate. Developing new products and
product lines to increase company’s revenue and profit and to increase our share of
dark chocolate market.

Marketing objectives

Increase brand awareness as a whole in the Australian market. Facebook marketing

campaigns are directed to the increase of Facebook friends which we aim to achieve a
10% increase. Twitter campaigns are being studied to increase our number of
followers. Joining our goals, we aim to become the most respected chocolate brand in
Australia.

Advertising Objectives

Our advertising campaigns aim to astronomical numbers. We expect to achieve 1

million hits on our campaign ‘Get in touch with your dark side’. By the end of the
campaign, we expect to receive at least 500.000 responses to our e-mail campaign.
Situational Analysis
Marketing Analysis
Cocoa production is an old activity in the country.
In the past, the chocolate produced had a very sweet characteristic, that is, it contained large
amount of sugar. However, the consumer's taste is changing, and what is noticed is that the
taste of cocoa has been more appreciated, which motivates businessmen and farmers to
invest in fine chocolates, or gourmet chocolates. This, in fact, was one of the points that
leveraged the business.
Gourmet chocolate is a product made with high quality ingredients, produced by a specialized
and very skilled professional, and with an exquisite aesthetic presentation. The production of
this chocolate is also directly related to the amount of cocoa inserted, which ends up being
bigger than that of common chocolates.
Marketing Strategy

Aiming to a double-digit growth rate for every future year, we are aiming to reach a large
number of new consumers by displaying our products and our campaigns on Facebook and on
Twitter. By doing that we expect to increase our brand name recognition.

Positioning Strategy

We position ourselves in the market as the European quality chocolate. We are a company
defined as contemporary, innovative and customer-focused. We have two main priorities:
Product and Service. Our products have the widest variety and also includes special
requirements such as dairy-free, low GI, organic and etc. Our services are provided by
experienced staff and our staff always ensures that our customers have the best experience at
any of our stores.

Marketing mix

Our products are distributed through our chain of retail stores, our product cost has to be a
maximum of 40% of the retail price and or philosophy towards our customers is that every
customer experience in any of our stores must be excellent, special and rewarding.

Customer Analysis
Customers are those who buy or consume the product in question. In the case of the sale of
gourmet chocolates, it is understood that legal entities can be companies that buy the product
and resell it to another type of merchant. Individual end users refer to consumers who buy the
product for their own consumption. In the latter case, it is of people who value the taste of
cocoa more in the composition of the candy and who seek higher products quality on the
market, even if they have a higher cost.

Cocoa Delights operates with two main target markets:

Primary target market

Demographics:
● 60% female
● aged 25–55
● young and middle-aged professionals who live or work in inner city or suburban areas
● families, couples and singles
● Baby Boomers, Generation X and Generation Y
● Have attended university/TAFE and secondary school.
● average household income of $190,000.
Lifestyle:
● prefer gourmet chocolate, in particular, premium European-style dark chocolate
● search for high-quality products
● generally have busy lifestyles, and enjoy treating themselves to ‘a bit of luxury’
● prepared to pay for best quality
● success and career driven
● often purchases European chocolates from specialty food stores
● they respond to advertising messages that centre around indulgence, are clever and well
produced.
Geographics:
● they live and work in inner city or suburban areas of Sydney, Melbourne, Brisbane,
Adelaide and Perth
● 70% of this target audience lives or works within 15 km of an outlet selling Cocoa
Delights products.
Product usage levels:
● the majority of this target audience purchase dark chocolate products at least twice
a week
● usually buying for personal consumption, gifts, dinner parties, etc.
● 30% have previously purchased products from the Dark Decadence range or other Cocoa
Delights products

Secondary target market

Demographics:
● 70% female
● ages 25–50
● young and middle-aged professionals or wives of professionals who live or work in inner city
or suburban areas
● families, couples and singles
● Baby Boomers, Generation X and Generation Y
● have attended university/TAFE and secondary school
● an average household income of $190,000.
Lifestyle:
● search for products they judge to be healthy: low fat, low calorie, low sugar
● 30% have food intolerances (dairy, gluten, etc.)
● 20% are vegetarian or vegan
● 30% prefer to buy organic foodstuffs
● prefer to support brands that they believe are socially responsible
● aware of the health benefits of dark chocolate, including its anti-oxidative properties
● success and career driven
● they respond to advertising messages that emphasise the ethical, intellectual, ecofriendly
and healthy aspects of a product.
Geographics:
● they live and work in inner city or suburban areas of Sydney, Melbourne, Brisbane, Adelaide
and Perth
● 70% of this target audience lives or works within 15 km of an outlet selling Cocoa Delights
products.
Product usage levels
● the majority of this target audience purchase dark chocolate products at least twice a week
● usually buying for personal consumption, gifts, dinner parties, etc.
● 25% have previously purchased products from the Dark Decadence range or other Cocoa
Delights products.

Product benefits and unique Selling Proposition for each target market
Dark chocolate connoisseurs (primary target market):

Cocoa Delights chocolate is the highest quality Australian chocolate available, using locally
sourced sugar, fruit, nuts and dairy products and imported cacao. The quality is comparable to
that of the finest European confectionary, but because they are locally made they are more
competitive in price.

Health conscious/eco-conscious professionals (secondary target market):

The Dark Decadence range has recently been expanded and now offers customers the choice
of 70%, 80% or even 90% cacao content and allows dairy intolerant customers, vegans, organic
eaters and those on strict low GI diets to partake in the delightful indulgence they may have
previously thought was off-limits.

Competitive analysis
Green & Black’s Organic Chocolate is now owned by Cadbury, this will help Green & Black’s
maintain growth and take Green & Black’s further as an international organic chocolate brand.
The company produces premium quality chocolate and has a socially responsible brand image.
Their marketing strategy promotes their ethical, fair trade and organic principles. Up to now
Green & Black’s have been marketed more effectively than Cocoa Delights. These factors pose
significant threats to our business. However, Green & Black’s is currently sold only in certain
supermarkets and department stores.

Lindt is currently the market leader in the Australian market for premium quality chocolate,
offering a large selection of products. It has a very strong reputation as one of the most
innovative and creative companies making premium chocolate. Another threat to Cocoa
Delights is Lindt’s huge international advertising budget. We cannot currently compete with
their marketing expenditure. The Lindt chocolate cafés are more attractive and impressive
than our stores and Lindt products are sold in more supermarkets and department stores that
Cocoa Delights. Lindt currently has 30% market share of the Australian Gourmet chocolate
market.

Break even analysis

Break Even Analysis
  1 st 2 nd 3 rd
Fixed Cost Per Week $423 $423 $423
Rent / Year $58 $58 $58
Insurance / Year $19 $19 $19
Advertising / Year $96 $96 $96
Utilities / Year $19 $19 $19
Person / Year $231 $231 $231
Total Fixed Costs $846 $846 $846
Selling Price $25 $10 $3
 50,00 50,00 50,00
Variable Cost % % %
% Of Selling Price $13 $5 $2
Contribution Margin $13 $5 $2

Break Even Point

No. Of Units / week 68 169 564

Break Even Sales Per

Week $1.692 $1.692 $1.692

Gap Analysis
Nowadays, Cocoa Delights works only in a few branches of the whole giant market of
chocolate that exists out there.

By exploiting these new market opportunities, Cocoa Delights will have a whole new world to
explore, allowing the company to become more competitive, more present in the market and
making the brand more solid.

Marketing opportunities
Cocoa Delights Dark Chocolate Ice Cream – Same quality of Coca Delights regular chocolate
but as ice cream. Generates several new combinations of flavor – Product development

Cocoa Delights Dark Chocolate Bar for Producers – Sabe quality of the Cocoa Delights regular
products, but in bigger sizes and cheaper for people that will produce another delicacies. -
Market development

Cocoa Delights Nuts About life – Coca Delights favorite chocolate bar mixed with the special
nuts from Nuts About Life company. A partnership of great businesses that there is no way
that it can go wrong – Product development.

The first market opportunity we wish to explore is the ice cream branch. Several other brands
have already developed products in this area and are expanding their efforts, which is already
a good sign of propension of this area. The Ice Cream branch is wide and provides us with a
huge variety of possibilities to explore. We will start with the Cocoa Delights Dark Chocolate
Ice Cream.
The second market opportunity would be larger bars of raw chocolate for people who process
it into some other food and will be able to utilize the Cocoa Delight brand for their products.
This branch will require less manipulation of the raw material (cocoa) and the sales will be in
larger quantities, because the target buyers of the products of this branch will use it for
production of other items and will produce them in larger quantities. The product will be
Cocoa Delights Dark Chocolate Bar for Producers.
The third market opportunity is the partnership with other brands and products. Offer for
example a chocolate bar with a certain brand of nuts, a chocolate bar with a certain brand of
beer for example. The product will be Cocoa Delights Nuts About life.
There are always numerous new opportunities for any business. Cocoa Delights’ opportunities
are based on the market consumers that are not currently their customers yet.
They still don’t target men on their campaigns, which is a major opportunity considering men
also consume chocolate in the same amount as women and eventually might buy chocolate for
their women.
Children are another opportunity or any other person below the age of 25. That is also a huge
portion of the market and might bring great new businesses for the company.

Cocoa Delights identified their target market through research and the main opportunity
identified, that gives us a market opportunity is to work with people with food intolerance
(dairy, gluten, etc.), vegetarian or vegan people and people with organic foodstuffs
preferences. This is a growing market worldwide and has high growth potential. As mentioned
in the referred document, Cocoa Delights products allow people to “treat themselves and
satisfy their chocolate cravings at any time of the day without making them feel guilty” and it
also allows “dairy intolerant customers, vegans, organic eaters and those on strict low GI diets
to partake in the delightful indulgence they may have previously thought was off-limits.”
These two sentences condensate the main idea of the market opportunity, which is giant, to
what they have discovered through their researches and should put a lot of effort on.

Identify business risks and opportunities

Strengths: Well stablished and financially stable company. Cocoa Delights have a strong name
in the market already and by developing these new opportunities, the company will grow even
stronger and develop a wider approach to the customers.

Weaknesses: New markets always bring uncertainty, even though the chances of the new
opportunities going wrong are slim, due to the vast research that will be conducted, that is still
a factor and cannot be ignored.

Threats: The possibility of new products to be launched by competitors that might influence on
the market research we make and cannot be foreseen, this impact can have enormous
negative impact on our new markets, but we need to be prepared to face them instantly.

Opportunities: The gap shows that currently, our target markets focus on females and with this
new market opportunities, there is a possibility of discovering a market as big as the one we
are working on right now.

Rank the Opportunities

The rankings for the three new opportunities are as follows:

1st 2 nd 3 rd
Dark Chocolate
Bars for
Chocolate Dark Chocolate Ice Partnershp Nuts
Producers Cream About life
Fixed Expenses - TOTAL $22.000 $22.000 $22.000
Rent / Year $3.000 $3.000 $3.000
Insurance / Year $1.000 $1.000 $1.000
Advertising / Year $5.000 $5.000 $5.000
Utilities / Year $1.000 $1.000 $1.000
Person / Year $12.000 $12.000 $12.000
Total fixed costs: $44,000 $44,000 $44,000
Selling Price $25 $10 $3
No. Of Customers Per
Month x12 - 5.000 12.000 15.000
Total Revenue $125,000 $120,000 $45,000
       
Variable Cost 50,00% 50,00% 50,00%
% Of Selling Price $13 $5 $1.50
No. Of Customers Per
Month x12 5.000 12.000 15.000
Total Variable Cost $62,500 $60,000 $22,500
Total Costs      
Fixed + Variable $106,500 $104,000 $66,500
 Revenue – Total costs:      
Profit/Gain $18,500 $16,000 $21,500
ROI = Profit/Total costs x 18/500/106500 x 16,000/104,000 x 21,500/66,500
100  100 100 x 100
ROI 17% 15% 0%

Ranking these opportunities by feasibility and viability.

The most viable option would be the Raw Chocolate bars due to the minor modifications in the
processes that are required and the minor investment required.
The least feasible option would be the Partnership because it involves a third party that has to
agree with the idea and also profit on it. If the third party has another project and doesn’t
want to carry out this project right now, that project will never happen.

Opportunities Rank
Raw Chocolate Bars 1
Ice Cream Branch 2
Partnership 3

Operational Changes for Cocoa delights

A Organisational changes and communication with key
stakeholders
Organizational changes should be documented in a meeting with the cheesecake
holders, then a newsletters be sent to the key stakeholders as well as any other
stakeholder that might be interested in information, after the reviews are made a
project summary report must be sent to all the key stakeholders, if necessary a second
meeting with the stakeholders as well to present the final version of the project and all
of these meetings must be documented in the meeting minutes and the meeting
minutes must be sent to all the parties involved.
B Continued quality of customer service
The key to ensure customer satisfaction and quality of service to customers is the
communication, all of her staff will be communicated actively and regularly regarding
any changes or any existing procedures and policies that we have in our company,
there will be recurrent assessments for staff to ensure that they are aware of how they
should handle customers and customer satisfaction, there will be a questionnaire to be
sent to every customer to register no company or in our website so that they can
provide us feedback on the experience that they had and report any issues that they
had in any experience with our company.

C Resource requirements
Ranking by value, the least expensive branch to be explored would be the Raw
chocolate bars for producers, which would require only a few modifications of
machinery and the people involved in research and digital traffic.

The second option would be the Partnership with other brands and then the Ice Cream
branch, which will require more machinery due to the difference in the products.

Some of the costs involved in implementing these changes are:

A specialized marketing person/team – Cost may vary from AUD 1.000 / month to the
salary of the people that are hired.
Increase in Digital Marketing investment – Cost may vary from as little as AUD 100 /
week to any amount defined to be spent in this section.
Studies about the new market – Costs may vary from AUD 1.000 / month in case a
person is hired by the company to make these studies or any amount in case a
specialized company is hired to do them.

The main external factors that may influence the new market opportunities are the
The options chosen were of sexuality and age factors. Those two elements were
chosen due to the great volume of people contained in them and the huge possibility
of consumption of Cocoa Delights products by these two markets.

Eventually, in case of a too big increase in the volume of daily work and information,
some teams would have to be restructured and resized to match the amount of work.

These would be the minimum costs researched online based on the modifications that would
be necessary.
Ice Cream Raw Chocolate Bars Partnership
Research Team $1.000 $1.000 $1.000
Digital Traffic Manager $1.000 $1.000 $1.000
Production Team $5.000 $0 $2.000
Machinery $10.000 $1.000 $0
TOTAL $17.000 $3.000 $4.000
E Factors influencing success or failure
The main factors that can influence the success or failure of this opportunities are the
market research that has to be vast and deep, the market awareness that must be well
established in other company members as well as the stakeholders and any manager
in the company, the constant review of the policies of the company and the ongoing of
the campaign and the preparation to create and embrace changes that might be
necessary to put the project back on track.

Legislation and regulations

Regulations and legislation applicable to the marketing campaign efforts of Cocoa Delights
● Competition and Consumer Act 2010 (Cwlth)
● Australia New Zealand Food Standards Code (Cwlth)
● Code of Practice on Nutrient Claims in Food Labels and in Advertisements 1995
● Australian Association of National Advertisers (AANA) Food & Beverages Advertising
& Marketing Communications Code
● Broadcasting Services Act 1992 (Cwlth).
Cocoa Delights’ advertising campaign will be compliant with the above legislation and codes of
practice in the following ways:
● Cocoa Delights will not engage in conduct that is misleading or deceptive or is likely to
mislead or deceive
● Cocoa Delights will not make any false health claims regarding food content or the
ingredients in its products
● Cocoa Delights will ensure that the label on the packaging of all the products referred to in
its advertisement applies include a nutrition information panel
● Cocoa Delights will not knowingly violate any applicable laws or regulations with regards to
its website or advertising campaign microsite
● Cocoa Delights will respect the licence conditions stipulated by the Broadcasting
Services Act regarding the number, type and content of ads in C periods, bans advertising in P
periods, and C and P programs.

Conclusion and Recommendations

Cocoa Delights must be aware of the internet trends and new possibilities of exploration of the
market so that they continue growing and can expand their business more and more.

To reach the main objectives listed in the documents, Cocoa Delights will have to adapt and
change some structures like, increase the size of the digital marketing team, increase the
digital marketing budget for the company, develop a “trending topics for internet” analyst to
be fully aware of new trends online and be able to provide quick response for any new trends
that may appear.

References:

Cocoa Delights Media Plan

BSBMKG501 Identify and Evaluate Marketing Opportunities Student Book