UK Chocolate Brand

Consulting Proposal

Work sample for Bright network

MD SAQUIB RAHMAN KHAN

saquibrahman107@gmail.com

Contents

• Project Summary

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• High-Level market Summary

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• Analysis of the market

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• Solution Overview

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• Implementation plan

Project Summary

The purpose of this presentation is to advise on how to increase sales

This presentation consists of:

• Market Summary
• Solution Overview
• Implementation Plan

Consulting Delivery Team:

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• Project Oversight
• Project Manager
• Business Analyst
• PMO Support

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Consulting Delivery Team

Business Analyst

Project Manager

Project Oversight

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Project support

Project Support

High level Market Summary

Market Size (2020)

• Revenue = £11,996m

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• Expected to grow annually by 1.2% (CAGR 2020 - 2025)

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Core Competition Examples

• Cadburys
• Ferrero
• Lindt
• Kinder
• Nestle
• Milka

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Analysis of the Market

In order to successfully implement a loyalty programme we must look at the market, which, in 2018 brought in approximately £44 billion.

According to IBIS World the chocolate and confectionery production in the United Kingdom is dominated by 4 main competitors: Mars Wrigley Confectionery UK Ltd, Nestle UK Ltd, Chocoladefabriken Lindt & Sprungli and Mondelez Europe GmbH.

This, therefore, means that there is an oligopoly at play consequently leading to incredibly high barriers of entry, hence brand loyalty plays an important role in the positioning of a firm. For this project however, the client is a major player in the oligopoly thus the barriers of entry is not a hindrance.

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Challenges faced in the UK Chocolate Industry:

• Increasing concerns for sugar consumption and its “correlation with weight gain and food-related diseases” (Confectionery Production, 2019) = decrease in chocolate consumption
• As consumers want more healthy lifestyles for their family and themselves - they look for healthier and more nutritious alternatives to snack on
• Also, there has been an increased awareness of cocoa sourcing ~ organic chocolate is increasing in growth

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Solution Overview

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Proposed Solution:

• Decreasing size of product and charging a premium price
• Premiumisation and indulgence trends see consumers turning to premium chocolate as they adopt the “better but less” approach (Confectionery Production, 2019)

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• Decrease the sugar content and fat content in their chocolate bars and sell them as healthy alternatives - organically sourcing the cocoa as it is a growing market.

Justifications

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• Creating smaller premium chocolates gives the opportunity for increased prices
• Even if less quantity is sold, increasing prices allows for revenue to increase
• “Brands like Lindt are the ones advancing sales” (Weinbren, 2018)

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• As there is a desire for healthier alternatives; reducing the sugar content and increasing the cocoa content
• “It’s safe to say consumers are looking to still enjoy chocolate which provides a huge cocoa hit without the sugar” (Weinbren, 2018)
• Meeting consumer needs = increase demand = increase sales = increase in revenue

Expected Outcomes

• Selling premium chocolates can increase sales and in turn profits
• Premium single chocolate bars market is “growing by 46% year on year”, with brands such as “Green & Black’s offering margins up to nearly 40%” (Better Retailing, 2019)
• Cost of making premium chocolates can be high and therefore, selling enough at a high price allows the investment to be worth it
• Reducing sugar content in chocolates and increasing the cocoa content will appeal to consumers of whom are looking for healthier and nutritious alternatives
• Reduced / no sugar will appeal to parents and those with diabetes/ health afflictions

ROI

• The UK chocolate and confectionery industry is now worth £1.1bn and is currently a good industry to invest in. “Mr Pereira says: 'Confectionery companies have a considerable amount of pricing power thanks to many loyal followers'” (Thomas, 2020).
• Implementing a customer loyalty programme can help increase this ROI efficiency

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Change Management Plan

If we subscribe to the Kotter principle there is 8 changes when it comes to change management; sense of urgency, establishment of a team, creation of a vision and strategy, communicate, removal of obstacles, short term wins, stay committed and finally embed change.

In order to successfully do this there are 12 steps to be taken:

1. Stakeholder mapping,
2. Training needs and analysis,
3. Develop comms and training plans,
4. Kick off comms,
5. Briefing workshop,
6. Comms/ engagement,
7. Create training content,
8. Deliver training,
9. Initiate support period,
10. Adoption methods,
11. Survey feedback,
12. Lessons learned.

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RACI

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Responsibility:

• The majority of the responsibility will be on the Project Lead who will direct most of the operations on a wider scale.

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Accountable:

• The final say will go to the Engagement Oversight, who will receive information and they will receive the opinion and insight from the Project Lead.

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Consulted:

• Those who will be consulted are only those relevant, likely to be the company’s project manager, their CEO, for executive decisions, and in our own team; the project lead, delivery and engagement oversight for the final say.

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Informed:

• Our whole team will be informed, but the information will be given within the chain of command, starting with the project lead so that operations do not slow, but everyone is still aware of their responsibilities. The relevant people of the Chocolate Company will also be informed of our decisions for transparency and communication purposes.

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IMPLEMENTATION PLAN

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REFERENCES

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Bhasin, H., 2018. Cadbury Competitors - Top 13 Cadbury Competitors. [online] Marketing91. Available at: <https://www.marketing91.com/cadbury-competitors/> [Accessed 14 July 2020].

Statista, 2020. Confectionery - United Kingdom | Statista Market Forecast. [online] Statista. Available at: <https://www.statista.com/outlook/40101000/156/confectionery/united-kingdom?currency=gbp> [Accessed 14 July 2020].

Thomas, H., 2020. Investing In Chocolate And Confectionery Can Deliver A Tasty Return. [online] This is Money. Available at: <https://www.thisismoney.co.uk/money/investing/article-7939477/Investing-chocolate-confectionery-deliver-tasty-return.html> [Accessed 14 July 2020].

Weinbren, E., 2018. Confectionery: The Quest For Lighter Chocolate. [online] The Grocer. Available at: <https://www.thegrocer.co.uk/trend-reports/confectionery-the-quest-for-lighter-chocolate/569634.article> [Accessed 14 July 2020].

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THANK YOU