With wage increase expected outstrip inflation rates
PEST………………………………………………………………………………….3
Risk……………………………………………………………………………………3
Cocoa Delights with a significant retail presence in every Australian capital city, starting with 22 stores in the greater Melbourne area and growing to 100 stores Australia wide by 2016. Cocoa Delights have defunded and run the expansion program as a wholly-owned operation to franchise and take up the opinion of a point venture.
Cost
Cost of advertising and promotion: Targeted advertising on TV, Radio, the internet and in the press will form the foundation of Cocoa Delights’ advertising and promotion effort
Cost of Customer service: Cocoa Delights’ philosophy is that every customer’s experience in a Cocoa Delights store must be special and rewarding as out chocolate
Product choice – the Dark Decadence product range includes organic, dairy-free and low G.I. products
Social responsibility – Cocoa Delights make fair trade and sustainable practices a key part of their marketing message
T: technological developments with the broadband rollout across Australia have been delayed, although the rollout is continuing and will be completed in the next three years. Internet retailing options are expanding, and most bricks and mortar retailers are taking advantage of this new technology
ECONOMICAL: DISPOSABLE income has reduced due to rising interest rates this shortfall expected to be recovered in the long term, with wages including expected to outstrip inflation rates by 2% unemployment levels are also increasing and expected to climb steadily to 6% in the coming year.
Risk management strategy is an integrated business process that incorporates all of the Risk Management processes, activities, methodologies and policies adopted and carried out in an organization
The franchising concept will result is fast growth and could achieve the 100-store target within three years. Franchisees bring their own capital and they provide a ready solution to the store manager shortage
Significant government laws protect franchisees, increasing the need for strict compliance by the organization
Expansion would start in Sydney and move to a new city one profitability is reached Sydney
Product choice – there is greater interest in products tailored to specific dietary requirements and customer preferences. Cocoa Delights will capitalize on the health benefit of dark chocolate and offer the largest range of dark chocolate varieties and product
Impact
The customer may be a conflict of interest between 2 brands what is good for Haigh’s Chocolate and what is good for Cocoa Delights
Association with a mass-produced product and brand could impact negatively on Cocoa Delights’ premier reputation for quality chocolate