Brand Development Project “Canbara”

A Group As signment
Course Code: BM KT 32044 Subject: Brand M anagement
n 3 rd Year 2n d Seme ster
Depart ment of Mark etin g Management Faculty of Com mer ce and Management Unive
r sity of Kelaniya
Acknowledgements
It was a great opportunity to get a practical knowledge when developing a new br
and called “Canbara” sugar free chocolate. In here I greatly acknowledge the Mr.
Ravi Dissanayake, the lecturer of Brand Management, who gives us the knowledge
and guidance to prepare this report. Not only that the head of the department Mr
. Sudath Weerasiri and other lecturers are also given our thanks in this occasio
n. The theoretical knowledge is not important, further we have get an idea about
brand as well as how to work as a team with team spirit. I am also very gratefu
l to thank my group members, who are sharing their ideas, views with me to prepa
re this report. And I express my appreciation to everyone who directly or indire
ctly contributed to the development of this report.
Thank You.
Group Members
1. B. D. R. Cooray 2. O. M. C. Gunarathna 3. M. P. U. K. Indrajith 4. R. D. W. J
. Karunarathna 5. R. P. N. Madusanka 6. A. M. S. Madushani 7. P. G. G. G. Preman
ayake 8. R. W. K. Priyadarshani 9. W. D. N. K. Rajapakshe 10. R. L. A. G. S. Raj
apaksha 11. L. H. S. Ranathunga 12. K. C. Rohini 13. S. A. M. A. S. P. Senanayak
e 14. K. T. P. Silva 15. S. A. G. Thakshila CM-2005-032 CM-2005-062 CM-2005-079
CM-2005-105 CM-2005-127 CM-2005-129 CM-2005-171 CM-2005-172 CM-2005-179 CM-2005-
180 CM-2005-183 CM-2005-195 CM-2005-208 CM-2005-216 CM-2005-224
Brief Content
01. Executive Summary 02. Introduction 03. Market Analysis 04. Research Program
05. Scope & Space Analysis 06. Identifying Profitable Gap in the Market 07. Prod
uct in Use Analysis (PIU Analysis) 08. Point of Different (POD) 09. Brand Templa
te 10. Develop the Believers 11. Brand Positioning 12. Brand Levels 13. Smashing
Brand 14. Five Dimensions of a Brand 15. Sensory Branding 16. Four “R” Analysis
17. Brand Profile Development 18. Marketing Mix of “Canbara” Sugar Free Chocola
te 19. Control and Evaluation 20. Budget 01 02 04 32 39 42 43 45 46 50 53 57 59
60 62 68 72 78 95 97
Con tent
01. Executive Summary 02. Introduction
02.1. About the Company 02.2. About the Product 02 02 01
03. Market Analysis
03.1. Situation Analysis 03.1.1. Strength 03.1.2. Weaknesses 03.1.3. Opportuniti
es 03.1.4. Threats 03.2. PESTEEL Analysis 03.2.1. Political environment 03.2.2.
Economical Environment Inflation Rate Exchange Rate Per Capital Income 03.
2.3. Socio Cultural Environment 03.2.4. Technological Environment 03.2.5. Ecolog
ical & Ethical Environment 03.3. Competitor Analysis 03.3.1. Kandos Objective 03
.3.2. Edna Product Range 03.3.3. Ritzbury Product Range 03.3.4. Diana 03.3.5
. Cadbury Product Range 03.3.6. Mars 03.3.7. Ferrero 03.3.8. Toblerone 03.3.9. K
it Kat 03.4. Competition from other product Current Strategy 04 04 05 05 05 06
06 06
07 07 07 08 08 08 10 12 14 14 17 18 19 20 20
 Future Goals Resource & Capabilities Assumption 03.5. Industry Analysis
Threat of New Entrants Threat of Substitutes Bargaining Power of Suppliers
Bargaining Power of Buyers/ customers Intensity of Rivalry 23 24 25 26 27 28
04. Research Program
04.1. Research Report 04.2. Market Segmentation 04.3. Target Market 04.3.1. Demo
graphic Bases 04.3.2. Geographic Bases 04.3.3. Psychographic Bases 04.3.4. Behav
ioral Bases 32 36 37 37 37 37 38 39 41 42 43 45
05. Scope & Space Analysis
05.1. Scope 05.2. Space Bleu Ocean
06. Identifying Profitable Gap in the Market 07. Product in Use (PIU Analysis) 0
8. Point of Different 09. Brand Template
09.1. Brand Philosophy Emotional Value Rational Value Physical Value 09.2.
Brand Template & Design 09.2.1. Smart 09.2.2. Facing Challenges 09.2.3. Active
09.2.4. Urban pulse 09.3. Brand Muscles Well Being Refresh Mind Smart Thin
king Taste
46 46 46 47 48 48 48 48 49 49
10. Develop Believers 11. Brand Positioning
11.1. Positioning principle 11.1.1. Central Value 11.1.2. Selecting the correct
mental domain 11.1.3. Laddering principles 11.1.4. Sustain the brand name at the
correct mental domain 11.1.5. Strongly communicate the POD and the positioning
massage to the target profile 11.1.6. Deliver the promise value 11.2. Brand Posi
tioning 11.2.1 Positioning Strategy 11.2.2 Perceptual Map and Positioning
51
54 54 54 54 54 55 55 55 56 56 57 57 58 58 58 59
12. Brand Levels
12.1. Functional Value 12.2. Experiential Value 12.3. Relational Value 12.4. Soc
ial Value 12.5. Psychological Value
13. Smashing Brand
13.1. Smash the Colour 13.2. Smash the Shape 13.3. Smash the Name
14. Five Dimension of Brand 15. Sensory Branding
15.1. Smashing the brand towards the loyalty 15.2. Steps of sensory Branding Ste
p 01 - Sensory Audit Step 02 - Brand Staging Step 03 - Brand Dramatization Step
04 - Brand Signature Step 05 – Implementation Step 06 – Evaluation
60
62 64 64 65 65 66 66 67 69 69 69 70 71
16. Four “R” Analysis
16.1. Brand equity pyramid for “Canbara” 16.1.1. Salience (Taste) 16.1.2. Perfor
mance and Imagery 16.1.3. Judgments and Feelings 16.1.4. Resonance (Touch the Re
al Sense)
17. Brand Profile Development
17.1. Brand Intent 17.1.1 Brand Purpose 17.1.2 Brand target (B 2 C) 17.1.3 Brand
Vision 17.1.4 Brand Mission 17.1.5 Brand Life Cycle 17.2. Brand Content 17.2.1
Brand Values 17.2.2 Brand Personality 17.2.3 Brand Reflection 17.3. Brand Proces
s 17.3.1 Value Proposition 17.3.2 Category of the Brand 17.3.3 Point of Differen
t 17.3.4 How the POD is on 3D’s 17.3.5 The role of Marketing Mix with Value Prop
osition 17.3.6 Brand Recalling Power 17.3.7 Naming Strategy 17.4. Brand Performa
nce 72 73 73 73 73 73 74 74 75 75 76 76 76 77 77 77 77 78 78 79 81 82 84 84 84 8
6 86 87 88 89 90 90 92 92
18. Marketing Mix of “Canbara” Sugar free Chocolate
18.1. Product 18.1.1. Brand Name 18.1.2. Product Attributes 18.1.3. Product ingr
edients 18.1.4. Nutritional Information 18.1.5 Product Consumerization 18.2. Pri
ce 18.2.1. Pricing objectives 18.2.2. Analyzing the external environmental facto
rs that affect the pricing decision 18.2.3. Analyzing the Competitors’ Strategie
s 18.2.4. Pricing strategy/ Methods 18.3. Distribution 18.3.1. Distribution Netw
ork 18.4. Promotion 18.4.1. Advertising 18.4.1.1. ATL Activities 18.4.1.2. TV Ad
vertisement 18.4.1.3. Press advertisements 18.4.1.4. Company Jingle
18.4.1.5. Company Website 18.4.1.6. BTL Activities 18.4.1.7. Poster campaign 18.
4.1.8. Bill Board 18.4.2. Events and Public relations
93 93 94 94 94 95 97
19. Control and Evaluation 20. Budget 21. Appendix
21.1. Customer Behavior Audit 21.2. Inflation 21.3. 21.3. HACCP 21.4. Product “C
anbara” 21.5. Maltitol 21.5.1. Maltitol Powder 21.5.2. Product details 21.5.3. P
ayment and shipping terms 21.5.4. Supplier information 21.6. Vitamin B12 21.6.1.
Vitamin B 12; Powder 21.6.2. Supplier Information 21.7. Full cream Powder 21.8.
Distribution Plan 21.9. TV Advertisement (Story Board) 21.10. Press Advertiseme
nt 21.11. Website of Choco Land Company 21.12. Teaser Campaign 21.13. Poster Cam
paign 21.14. Bill Boards
101 103 104 106 107
108
108 109 111 112 113 114 115 116
Page |1
01. Executive Summary
The purpose of doing this project is to get the subject knowledge of Brand Manag
ement and especially practical knowledge regarding how to build a brand. Due to
the emerging trend among the youth segment in SriLanka that more alert on low su
gar/ sugar free and non fat foods, We capitalized that as an opportunity to intr
oduce the brand “Canbara” as sugar free chocolate for the target market of youth
segment in the Choco Land Company. Before introducing the “Canbara” chocolate t
he company performed the market analysis to identify the current market position
for a new brand. For that purpose, company did a situation analysis (SWOT & PES
TEEL), competitor analysis and industry analysis. And also Choco land Company co
nducted the research to identify the consumer behavior regarding the low sugar /
sugar free chocolate and market characteristics. After analyzing the all of con
sumer behaviors and market characteristics, company identified the profitable ga
p prevailed in the market. According to our analysis, within the scope of refres
hment there is sugar free / low sugar chocolate brands and other brands that kee
p customers well. But those health conscious products have been restricted only
to that category and not specifically target to the youth segment. Moreover ther
e are number of brands which give refreshment to the youth segment but those are
not healthier ones. So we want to balance both of the two aspects of refreshmen
t and well being. That is the gap we identified between competitive brands and c
ustomers. The youth segment in SriLanka not too much health conscious. If we com
e up only with the sugar free / low sugar concept it may not be workable and poi
ntless. And we want to attract youth segment who already consume normal sugar ch
ocolates from the other brands. So we need to differentiate our chocolate from o
ther brands and need to add extra thing.Then we came up a sugar free chocolate w
ith the brand name called “Canbara” that gives “extra refreshment by vitamin B12
and as a healthier product.” With that concept, we developed the Brand “canbara
” in the Choco land company that align with the brand develop process and Market
ing mix strategies and hopes to success is in near future.
Page |2
02. Introduction
2.1. About the Company
The Choco Land Company (Pvt) Ltd is a registered private company under the Compa
ny’s Act No. 7 of 2007. It is situated in the No.21, Kandy road, Nittabuwa. As a
newly establish company, hope to introduce the brand “Canbara” sugar free choco
late for the urban and suburban youth segment in SriLanka with the following vis
ion and mission statement.
Vis ion
To be the pioneer in providing wide varieties of chocolate and chocolate coated
products in Asia.
Miss ion
By deploying our sophisticated technologies and unique competencies, it will be
discovered the real sense of the taste which is expected by the customers. Throu
gh that our products will offer a greater satisfaction to our customers by letti
ng them to consume wide varieties of our products.
2.2. About the Product
To develop a new product as a sugar free chocolate the company has selected a br
and name called “Canbara”. As the company members we expect to give the best sat
isfaction for our customers that not only the caring but also extra refreshment,
real taste and specially personality of smart youngsters. The “Canbara” sugar f
ree chocolate will be targeted to the urban and suburban youth segment those who
in 18-30 year category. By using the Ansoff Matrix to the “canbara”, it can be
shown as follows,
Page |3 Product Present Market New
Present
New
“Canbara”
The “Canbara” is a new product that is introduced by the Choco land company as a
sugar free product. And also it will introduce to the new market of urban and s
uburban segment in SriLanka.
Page |4
3. Market Analy sis
Chocolate is one of the popular products among the youth segment and it has diff
erent context like symbolizing love, to give a gift, refreshing and as a taste i
tem. And also there is emerging trend among the young generation aged between 18
-30 that more alert on low sugar and non fat foods. And there are many SriLankan
and foreign brand available in SriLanka with the values of low sugar/ sugar fre
e content. But those are not specifically target on the youth segment or any oth
er segment. This creates an opportunity for the new players who wish to enter th
is market. It is important for a Choco Land company to identify the current mark
et position of a new target market, as success of the entry strategy will depend
on how far they have been able to correctly identify the market environment. Th
erefore to doing a Brand development plan also it is better to do a marketing an
alysis which focus on SWOT analysis, PEST analysis, Competitor analysis and Indu
stry Analysis.
3.1. Situation Analy sis (SWOT Analy sis)
SWOT is used to describe the particular strengths, weaknesses, opportunities and
threats that are strategic factors for a specific company. So when launching a
new brand by newly establish company it must to analyze the strength, weaknesses
, opportunities and threats in order to success in the market place.
3.1.1. St rengt h
The Choco Land Company has newly assigned skilled work force for each function
including marketing, finance and other administrative tasks that can have abili
ty to work in strategic manner in order make “Canbara” success in the market pla
ce. The location of the company is facility oriented one. The “Canbara” is p
remium quality chocolate with attractive packaging and labeling. Created a goo
d marketing information system, in the initial stage of operation.
Page |5
3.1.2. We aknesses
Due to the establishment of new brand called “Canbara”, the customers haven’t
any idea regarding that brand. The lack of industry experience due to newly es
tablish company. The company does not have strong distribution net work. Mor
e than half of the capital represents the borrowed money. So that company will f
ace to a gearing problem in near future if they want to have more debt capital.
3.1.3. Opport unit ies
There is eme rging trend among the young generation that more alert on low sug
ar/ sugar free products. So far there is no any low sugar/ sugar free chocolat
e specially target on the youth segment. There is low awareness rate for the e
xisting brands of sugar free/ low sugar chocolate.
3.1.4. Thr eats
There is very tight competition among the existing brands. Very high brand l
oyalty towards the current on going brands. The “canbara” possesses high price
than the normal chocolates. Due to imported item “Maltitol” the sugar substit
utes bearing the high cost. Low awareness rate for the sugar free/ low sugar c
hocolates.
Page |6
3.2. PESTEEL Ana ly sis
Through this analysis the company can identify the environmental factor which af
fect to the company and there process. The reason for that the company exists in
environment as a living being. Therefore it also follows the rules and regulati
on of government as well nature. In here company analysis about the Political fa
ctors, Environmental factors, socio cultural factor and technological factors wh
ich affect to the company and it process.
3.2.1. Pol it ical Environ ment
The Maltitol is imported items. And also current government is restricted for
the imported goods. It affects for high tax rate. As the result the company has
to pay more on the tax fee. Under the foreign trade policies, the government h
as implemented the restrictions for the quantity of import items. In this situat
ion we have to limit our imported materials.
3.2.2. Econo mical Envir onment
Inflation R ate
Inflation rate has high impact to the buying decision of most of the customers.
The inflation rate in Sri Lanka has slightly come down in this year to the one F
igure. However, with the analysis of last year inflation rate it is too early to
predict the trend and come to a conclusion that inflation will further come dow
n. The central bank is projecting base-case inflation of around 9.0 percent in 2
009, best case inflation of around 5.0 percent and a worse case scenario of arou
nd 12 percent. The decline of the inflation rate will affect the borrowing cost
where the borrowing cost will further decline.
Exc hange R ate
Exchange rate of china is slightly affected to the Choco Land Company due to imp
orted items of Maltitol sugar free substitute and vitamin B12. To the date of 10
.08.2009 exchange rate of Yuan is 16.8125.
Page |7
Per C apital In come
Per capital income is US $ 1500 at the beginning of the year 2009, and it is e
xpected to be US $ 2000 at the end of the year. However, the per capita income
in the Western province is US $ 3000 at the beginning of the year. Per capita
income is significantly affected to the purchasing of sugar free chocolate as i
t is a not essential product for the customers.
3.2.3. Soci o Cult ural Envi ronment
The consumers are knowledgeable people who use to purchase the products with h
igh involvement in ingredients, standards and levels of nutrition. Majority of
the youth segment try to show their status purchasing and using some kind of hi
gh class products. According to the current economic situation most of the sugar
free chocolate buyers are high class people. There is emerging trend among th
e young generation that more alert on low sugar/ sugar free products.
3.2.4. Technol ogic al Envir onment
Technology is kind of thing which changes day by day. Therefore company has to
adopt according to that changes. Otherwise they cannot move with their competit
ors. And it was very costly to hire the new technology.
3.2.5. Ecol ogical and Ethi cal Envi ronment
Customers’ concern on the environmental friendly living style is increasing. T
his will have direct influence to the buying decision of the customers especiall
y in the FMCG category. E.g. Biodegradable Package There are various organizat
ions, that could affect the business activities in Sri Lanka; E.g. Environmental
Foundation Limited a non-profit public interest law group is a driving force in
promoting environmental justice for the people of Sri Lanka,
3.2.6. Legal Environ ment
Company must register under Company’s Act No. 7 of 2007. The Food Act, No. 2
6 of 1980. Import and Export Act. Regulations under the Sri Lanka Standards
institution.
Page |8
3.3. Competitor Analy sis
A company faces different levels of competition in marketing products and servic
es. It consists of the competition of the companies within the same market space
and the competition of products or services that offer the same customer termin
al value. The customers can use the products or services within the same market
space as substitutes. Although the products and services within other spaces wit
hin the same market scope does not compete directly, they offer the same custome
r terminal value and the customers can consume any of those products to satisfy
their need. When we consider about chocolate as a product, the Western influence
of chocolate as a snack, reward or gift has gained universal acceptance. Chocol
ate is also a popular impulse item, where purchasing is influenced by visibility
in stores and by packaging. The market is now quite sophisticated, with many pa
ck designs, display configurations, chocolate flavours and pack sizes on offer.
If we consider about the Sri Lankan chocolate industry, it is mostly dominated b
y only a few large local players within the industry and they are the companies
who directly compete with our company. The total imported brand share is less th
an 5% in Sri Lanka. The analysis of competitors within the Sri Lankan chocolate
industry is given below.
03.3.1. Kandos
Kandos has a strong customer base. It was the premier chocolate long before fore
ign competitors and local imitators arrived on the scene. The local consumer has
been exposed to the unique taste of Kandos for the past 44 years. The Kandos br
and has recognized the value of segmentation and it reaches each market segment
in unique ways. All this has combined to make it a successful Sri Lankan brand.
Kandos has maintained a clear market leader status in Sri Lanka throughout its f
our plus decades in existence. It is the first transnational company in Sri Lank
a to have multiple bases in countries such as Singapore, Malaysia, Indonesia and
Thailand as well as in Sri Lanka itself. Currently its market share is 48%. Kan
dos has a mind share of over 90% in the chocolate category in Sri Lanka. It has
thus become the benchmark for chocolates in Sri Lanka. From its origin, Kandos w
as stated as a premium chocolate made from high quality ingredients. Its product
range covers all possible demographic and psychographic
Page |9 segments. They presently boast 52 product lines from choc bars, slabs, g
ift packs, and center fills, to cooking chocolate and cocoa powder. The most pop
ular are milk, orange variants, cashew and other nutty chocolates. The premium r
ange of Kandos chocolate is called Kandos 21 Collection. Others in the top range
are Cashew, Super blend, and Reach-Out all made from 100% Criollo cocoa beans f
rom Sri Lanka. It is considered to be one of the finest in the world. 95% of Sri
Lanka cocoa beans are used in the manufacturing process of premium Kandos choco
late. Ceylon Chocolates Ltd. Recently launched Kandos Lite. Kandos Lite does not
contain sugar as a sweetener. Instead it contains Maltitol, which is a sugar su
bstitute. Unlike many low sugar/ sugar free products which use sugar substitutes
and are virtually not edible, Kandos Lite has been formulated to overcome this
problem and provide the consumer with a product which tastes like a normal, suga
r – added chocolate. Maltitol is a sugar alcohol (a polyol) used as a sugar subs
titute. It has 75-90% of the sweetness of sucrose (table sugar) and nearly ident
ical properties, except for browning. It is used to replace table sugar because
it has fewer calories, and has a somewhat lesser effect on blood glucose. It is
absorbed more slowly than sucrose which makes it more suitable for people with d
iabetes than sucrose. The core brand value of Kandos is the perception that it i
s a delectable delight – hence, the positioning of Kandos as the original chocol
ate. The brand essence is associated with love, sharing, caring and the enhancem
ent of family values.
Objectives
Kandos is presently seeking international markets for its future growth. The com
pany’s vision is to be a serious player in the chocolate and confectionery busin
ess in the South East Asian region. In line with the Company’s objectives, CCL h
as invested Rs. 150 million in its production facility at Kundasale, Kandy to en
hance capacities and to further improve its product quality, using state of the
art equipment and the very latest technology found in the global chocolate and c
onfectionery industry. The company’s export programme has been expanded to cover
Maldives, Middle East, parts of Europe and most recently India.
P a g e | 10 India’s total population of one billion people with over 200 millio
n middle income earners has proven to be a lucrative market from the initial res
earch, and thus CCL has chosen the South Indian state of Tamilnadu as the launch
ing pad in its arduous journey to conquer Indian market in its chosen segment.
03.3.2. Ed na
Edna Chocolates and Confectionary is made with the use of a special Swiss recipe
and is well-known for the fine quality and exquisite taste. These chocolates an
d confectionery are made from the finest cocoa grown in Sri Lanka, and the best
in milk, flavour and essence from around the globe. Their modern plants are situ
ated in Mawanella and Colombo for their export markets. They manufacture a range
of products - Bars, Snacks and Candies amongst others including Traditional Mil
k Chocolates in six delicious flavours - Milk, Orange, Coffee, Vanilla, Rum and
Raisin and Fruit and Nut., The Premium Range and also Children’s Specials. Other
products like Royal Treat, Smacker, Choc and Nut and Wafer Cox are a hit among
children as well as adults who love to indulge themselves with the chocolaty tre
at. Edna has 21% market share in Sri Lanka.
Pr oduct Range
Traditional M ilk Choc ola tes
Extra La rge The Edna Creamy Milk Chocolate Slabs (bar) range is available in 6
delicious flavours - Milk, Orange, Coffee, Vanilla, Rum & Raisin and Fruit & Nut
. This range of Milk Chocolates is available in 90g, 60g, 32g, 22g, & 15g bars.
The Pre mium Range
Edna E xtra the largest in the slab (bar) range (180g), Edna Extra is a chocolat
e for the discerning. It is available in Milk and two delightful combinations -
Cashew Nut and Fruit & Nut.
Oth er Product s in t he Edna Ra nge
Roya l Tre at a treat to the chocolate-lover. Delicious slabs (bars) of Creamy M
ilk Chocolate - in Milk, and Cashew Nut and Fruit & Nut combinations
P a g e | 11 Sm acker a Chunky Snack bar (45g) available in Milk, Nut Milk and R
um & Raisin Flavours Choc and nut another delicious treat from Edna. This chocol
ate snack has Peanuts in Creamy Milk Chocolate, in 65g & 72g packs. Wafer chocx
Oven fresh Crisp Biscuit Wafers wrapped around in delicious Creamy Milk Chocolat
e.
Pr esent ati ons
Check Ma te and Just Magic exclusive presentation packs, with a selection of fin
e quality Creamy Milk Chocolates, in Fancy Shapes and delicious centre fillings.
Gol den nugget Here is a tray of Creamy Milk Chocolates, weighing 100g, in a mi
ni presentation pack, in gold and black. Choco-logs Bite size logs of Creamy Mil
k Chocolate individually wrapped in bright colours - a favourite with kids. The
see-through pack has a net weight of 110g of chocologs.
Chi ldre n’s Speci al
Ki ddies Milk Choc olat e 12g Milk Chocolate in mini-slabs, for kids Bunt y Choc
o A popular chunky bite of Creamy Milk Chocolate weighing 5.5g, wrapped in colo
urful printed aluminium foil. Bunt y & Bingo Hard boiled candy of 4g in deliciou
s fruit flavours - Orange, Mango, Strawberry, Lemon and Pineapple. Twi nky a bit
e-size mini chocolate which is a favourite of kids. Chocofil Milk based center f
illed toffee in bright alu-foil twist wrappers. Available with center fills of C
hocolate, Caramel, Strawberry and Peanuts. Obj ecti ves Edna’s objective is to f
urther consolidate the position and to achieve a market share of 60%. In the hop
e of achieving this objective the group has entered into various diversified fie
lds of business and is involved with large investments towards them at present.
In addition the recipe too has been improved.
P a g e | 12
03.3.3. Ritzbury
Ritzbury is a subsidiary of Ceylon Biscuits Ltd. Ritzbury produces chocolates an
d chocolate-coated products. Within a comparatively short span of time, Ritzbury
has been able to capture the Market by catering to the needs of chocolate lover
s with a wide range and a refreshing taste. The product range includes chocolate
slabs, enrobed, panned products and specialty chocolates. At present Ritzbury h
as a market share of 22%.
Pr oduct r ange
Chocolate bars
Sa fa ri Slabs moulded with rich milk chocolate are available in 10g and 22g pac
ks. The 10g slab comes in a rectangular shape while the 22g slab comes in 5 diff
erent shapes of jungle animals. Mi lk Chocol ate Origi nal Rich, smooth chocolat
e slabs are available in 3 different sizes of 20g, 30g and 50g. Milk Chocolates
are also available in Orange and Vanilla flavours, which complement the rich tas
te of milk. This is in addition to the Original Milk Chocolate. Mi lk Chocol ate
- Orange Rich, smooth chocolate slabs are available in 3 different sizes of 20g
, 30g and 50g. Milk Chocolates are also available in Orange and Vanilla flavours
, which complement the rich taste of milk in addition to the Original Milk Choco
late. Mi lk Chocol ate –Vani ll a Rich, smooth chocolate slabs are available in
3 different sizes of 20g, 30g and 50g. Milk Chocolates are also available in Ora
nge and Vanilla flavours, which complement the rich taste of milk in addition to
the Original Milk Chocolate. Caju Crunch A rich milk chocolate with insertions
of diced cashew nuts is available in 22g, 40g and 60g packs.
Kris pies
Chocolat e Bea ns Pe bbles
P a g e | 13 Sugar coated chocolate beans in an assortment of bright colours are
available in a 15g sachet and 25g pencil shaped tube. This product can also be
supplied in bulk packs. Go Nuts Go Nuts is a peanut coated in chocolate and fini
shed off with a crisp sugar coating of bright colours. It is available in a 23g
pouch, and 40g and 150g packs. This product can also be supplied in bulk packs.
Choconuts Peanuts covered in a rich smooth chocolate, available in pack sizes of
35 g and 70 g. Popi ts Delicious rice crispies coated in rich milk chocolate ar
e available in 15g packs.
Cooking C hocolates
Supe rfi ne Milk a nd Da rk Available in 440g packs and in 1.9 kg bulk packs as
milk chocolate or dark chocolate. It is ideal for making delicious desserts and
chocolate-based snacks. Chocolat e Coat ed Biscui ts
Chunky C hocolate
Two crisp chocolate biscuits sandwiched with a creamy center of butterscotch cre
am and enveloped in rich milk chocolate. It is available in a 240g pack. Chocola
t e Fingers A crisp "Finger" biscuit coated rich milk chocolate. It is available
in 20g, 60g, 100g and 200g packs.
Gift Pa cks
Cherish An assortment of Butterscotch, Orange, and Strawberry center fills in pl
ain milk chocolate coming in an attractive 175g pack. Obj ecti ves The long term
objective is to make this range [into] strong regional brands in SAARC region,
Especially India, where, the company currently exports three 40-foot containers
a month, which is just the vanguard for a gradual push starting from the country
s south and moving towards other parts of the subcontinent.
P a g e | 14
03.3.4. Di ana
Diana is a leading Biscuit, Wafer, Cake & Chocolate manufacture in the Central P
rovince of Sri Lanka. Being an organization engaged in the food industry, the co
mpany is much conscious of maintaining the best hygienic levels to the consisten
t product quality to achieve the total customer satisfaction. Their Chocolate pr
ocess has been awarded the S. L. S., H. A. C. C. P., I. S. O. 9001: 2000, standa
rd certification for the food safety and Quality. Their brand is the first Milk
Chocolate & the Coated Chocolate brand, which was awarded the above quality cert
ificate in Sri Lanka. The company’s Chocolates range includes a wide range of sl
ab Chocolates and a range of Assortment packs. With an island wide sales & distr
ibution system with own field sales force and own vehicle fleet Diana Trading is
catering to both local & export markets.
Impor ted Chocolat es
The total imported brand share in the Sri Lankan chocolate industry is less than
5% as the cost of living is going up regularly. Many people cannot afford to bu
y the imported chocolates as they are high priced and they don’t like to buy tho
se at higher prices as Sri Lankan chocolate manufacturers offer high quality cho
colates at a reasonably low price. This discourages imports.
03.3.5. Cadbury
Cadbury is a confectionery and beverage company with its headquarters in London,
United Kingdom, and is the world s largest confectionery manufacturer. The firm
was formerly known as "Cadbury Schweppes plc" before demerging in May 2008, sep
arating its global confectionery business from its US beverage unit, which has b
een renamed as Dr Pepper Snapple Group Inc. Cadbury’s products consist of three
categories: chocolate, gum and candy. The Group s brands in chocolate are Cadbur
y Dairy Milk, Creme Egg, Flake, and Green and Black s. Its gum brand consists of
Trident, Hollywood, Stimorol, Dentyne, Clorets and Bubbaloo. The Candy brands i
nclude Halls, Cadbury Eclairs and Bassett s.
P a g e | 15
Pr oduct Range
Cadbury Dairy Milk
There are twelve different varieties to enjoy including Whole Nut, Fruit & Nut a
nd new Apricot Crumble Crunch and Cranberry and Granola.
Cadbury Wis pa
Tiny but dense bubbles.
Cadbury Flake
Flake is famous for its delicious taste and texture.
Cadbury Crunch ie
A golden honeycomb centre surrounded by delicious Cadbury milk chocolate.
Cadbury Cre me Eg g T wisted Bar
All the gooey fondant fun of Creme Egg inside a bar of thick milk chocolate.
Cadbury Double Deck er
Two layers of crispy cereals and nougatine wrapped in delicious Cadbury chocolat
e – and there’s a small amount of coffee in there too.
Curly Wurly
A chewy caramel ladder draped in thick milk chocolate.
Cadbury Dairy Milk Freddo
Frog-shaped Cadbury milk chocolate
Cadbury Bo ost
A milk chocolate bar with caramel and biscuit filling and a soft chocolate centr
e, ‘charged with glucose’ for extra energy
Cadbury T wirl
Two twirly chocolate fingers covered in smooth Cadbury milk chocolate. Twirl was
originally launched in Ireland as a single finger product and became a twofinge
r product on its UK launch.
Sta r Bar
Milk chocolate shot through with peanuts and creamy caramel
Picnic
Crispy wafer and chewy caramel covered in peanuts, raisins and Cadbury milk choc
olate.
P a g e | 16
Fudge
A bar of soft fudge covered in delicious Cadbury milk chocolate.
Cadbury Cre me Eg g
Chocolate eggs with gooey, sticky fondant centre.
Cadbury M ini E gg
Tempting solid milk chocolate eggs in a crisp candy shell.
Cadbury E aste r Egg Delight
A chocolate egg inside another chocolate egg and three individually wrapped mini
ature chocolate eggs are tucked inside the second one.
Cadbur y Cl uster s
Sha ring jus t got a whole lot more scrumptious!
Crunchy flakes and juicy raisins tumbled in scrumptious Cadbury milk chocolate.
Cadbury Bu ttons
Chocolate buttons. Every ½ pound of Cadbury Dairy Milk contains a glass and a ha
lf full of fresh liquid milk.
Cadbury Ro ses
The brightly wrapped Cadbury Roses, in distinctive blue packs.
Mil k Tr ay
Cadbury Heroes
Tiny little bits of fun for everyone to share
Cadbury Dairy Milk Share Boxes
Re-sealable square tubs containing individually-wrapped bite size chunks of choc
olate.
Hot Choc Chunks
A creamy, yummy hot chocolate
Cadbury Drinking C hocolate
Traditional drinking - made with Milk.
Cadbury Highlights
P a g e | 17 Cadbury Chocolate Highlights is made with hot water alone to delive
r the traditional Cadbury taste in a hot chocolate drink. It has only 40 calorie
s and less than 1% fat per serving.
Cadbury Bo urnville Cocoa
Cadbury Bourneville Cocoa is mostly used in baking and for making a drink of hot
chocolate.
Objectives
Cadbury has two objectives for the development of their chocolates. Those are:
To grow the market for chocolate confectionery. To increase Cadbury s share o
f the snacking sector. (When launching a product Cadbury has to make sure that a
ny new product in the snaking sector must establish points of difference, creati
ng a unique selling proposition (USP) i.e. a product with unique appeal which is
not shared by any of its competitors.) As the products are developed, Cadbury t
ests them to ensure that consumers are willing to buy them. Cadbury then promote
s its products in various ways which is where a product is advertised through co
nsumer media such as television, magazines, newspapers and radio.
03.3.6. Ma rs
Mars, Incorporated is a worldwide manufacturer of confectionery, pet food and ot
her food products with US$21 billion in annual sales in 2008. Headquartered in M
cLean, Virginia, USA, the company is entirely owned by the Mars family, making i
t one of the largest privately owned U.S. corporations. Mars is most famous for
its eponymous Mars Bar, as well as other confectionery such as Milky Way, M&M s,
Twix, Skittles and Snickers. They also produce non- confectionery snacks (inclu
ding Combos) and other foods (including Uncle Ben s and British Pasta Sauce Bran
d Dolmio) as well as pet foods (such as Whiskas, Chappy and Pedigree brands). Ma
ny of Mars products are famous-name brands.
Pr oduct r ange
3Musketeers, Aquarium Pharmaceuticals (recently renamed to Mars Fish Care), Banf
ield, The Pet Hospital, Bounty, Buckeye Nutrition, Celebrations, Cesar (Dog Food
), Cocoa Via, Combos, Dove Chocolate, Fling, Flyte, Galaxy (alternative for the
Dove range used
P a g e | 18 in the UK, Australia and the Middle East), Greenies (a bone to impr
ove dogs breath), Kudos, Lockets, M&M s, Maltesers, Marathon (UK name for Snick
ers until it was renamed in 1990), Mars Bar, Mars Delight, Mars Planets (newly i
ntroduced in the UK), M-Azing, Medi-Cal (Prescription Pet Food), Milky Way, Mins
trels, Nutro, Pedigree, Pill Pockets, Promite, Revels, Royal Canin (Pet Food), S
chmackos, Seeds of Change, Sheba (cat food), Skittles, Snickers Marathon Energy
Bar, Snickers, Spillers, Starburst, Teasers, Techni-Cal, Topic, Tracker, Twix, W
hiskas (cat food), Winergy, Wisdom Panel MX Mixed Breed DNA Test.
03.3.7. Fe rrero
Ferrero SpA is an Italian manufacturer of chocolate and other confectionery prod
ucts, founded by confectioner Pietro Ferrero in 1946 and based in Pino Torinese,
Italy. The company is still owned by the Ferrero family. The Ferrero Company wa
s founded by producing the world known Kinder Chocolates in Belgium. This was be
cause the founder of Ferrero moved to Belgium during the Second World War In add
ition to Nutella (a hazelnut-based sweet spread), Ferrero produces many other pr
oducts, including the chocolates, Ferrero Rocher, Pocket Coffee, Mon Chéri, Giot
to, Ferrero Kusschen, Ferrero Gargen, Ferrero Opera, coconut cream candy, and th
e tic tac breath mints. A dark chocolate version of the Ferrero Rocher is also a
vailable, called the Ferrero Rondnoir, which contains a pearl of dark chocolate
in the center instead of a hazelnut, chocolate cream instead of Nutella and crun
chy chocolate bits instead of crushed hazelnuts. There is also a coconut version
, Confetteria Raffaello, which contains milk cream surrounding an almond and cov
ered with meringue and shredded coconut. The Ferrero Prestige collection is a se
t of three: Rocher, Rondnoir, and a coconut version called Garden Coco. The Gard
en Coco candy is similar to Confetteria Raffaello, but has coconut cream instead
of milk cream. Ferrero also produces the Kinder product series, including Kinde
r Surprise (also known as "Kinder Eggs"), Fiesta Ferrero, Kinder Chocolate bars,
Kinder Happy Hippo, Kinder Maxi, Kinder Délice and Kinder Bueno.
P a g e | 19
03.3.8. Toblerone
Toblerone is a chocolate bar made by Kraft Foods Switzerland. It is best known f
or its triangular chunks. It’s distinctive packaging is prism shaped and its ava
ilability in airport duty-free shops. Toblerone was created by Theodor Tobler an
d Emil Baumann in Bern, Switzerland in 1908. They developed a unique milk chocol
ate including nougat, almonds and honey with a distinctive triangular shape. The
product s name is a blend combining Tobler s name with the Italian word torrone
(a type of nougat). Theodor Tobler applied for a patent for the Toblerone manuf
acturing process in Bern in 1906. The Toblerone brand was trademarked in 1909, a
t the Federal Institute for Intellectual Property in Bern.
Vari ati ons
In 1932 Tobler made the first filled bars of chocolate. Since the 1970s, other v
ersions of the Toblerone have been produced. These include:

Plain chocolate – (dark chocolate) in a green or black wrapper White chocolate –

Filled editions – milk chocolate with a white chocolate centre (blue wrapper) On
eByOne – individually wrapped triangular chunks Toblerone Pralinés – released in
1997, a single peaked version in the distinctive yellow packaging

Fruit and Nut – in 2007 with a half purple cardboard box Honeycomb crisp – with
a half white box with honeycomb pieces pictured on it Berner Bär – 500 g milk ch
ocolate bar, with a relief portrait of the Bernese Bear and the Coat of arms of
Berne on its face. The only non-triangular Toblerone.
Bar sizes range from ten centimetres to nearly one metre, all similarly proporti
oned.
P a g e | 20
03.3. 9. Ki t Kat
Kit Kat is a confection which was first created by Rowntree Limited of York, Eng
land, and now produced worldwide by Nestlé, which acquired Rowntree in 1988, exc
ept in the by USA where it is made under license by Hershey s. Each bar consists
of fingers composed of three layers of crème filled wafer, covered in an crème-
filled outer layer of chocolate. Each finger can be snapped from the bar, one at
a time. Many varieties of Kit Kat are available world wide. There are often cou
ntry worldwide. country-specific limited edition bars. Kit Kat Original (differe
nt taste & texture in different countries) and Kit Kat Chunky are available in S
ri Lanka.
03.4. Competition from other Products
In addition to the competition inside the chocolate industry there is competitio
n arising from other confectionary too, such as the competition from ice cream,
biscuits and cake. Other products that offer refreshment such as fruit drinks, f
ood drinks, dairy products, carbonated drinks and energy drinks are also conside
red as competitors of chocolate manufactures and sellers as they also offer the
same customer terminal value.
P a g e | 21
01. Cur rent St rat egies
Kandos is the current market leader in the chocolate industry. They always fal
low different strategies to basically retain their customers and attract new cus
tomers. They always see new product development strategies and packaging strateg
ies to enhance the value of customer mind. Edna is a one of the dominant playe
r in chocolate industry. Edna mostly launch pricing strategies to attract new pe
ople. Edna haven’t big market share compare with Kandos. But they conduct their
marketing activities parallel. Ritzbury has catered to the needs of chocolate
lovers with a wide range and a refreshing taste. They more alert on the promotio
nal activities currently. Cadbury has to make sure that any new product in the
snaking sector must establish points of difference, creating a unique selling p
roposition (USP) when launching a product. As the products are developed, Cadbur
y tests them to ensure that consumers are willing to buy them. Cadbury then prom
otes its products in various ways which is where a product is advertised through
consumer media such as television, magazines, newspapers and radio.
02. Fut ure Goals
Kandos is presently seeking international markets for its future growth. The c
ompany’s vision is to be a serious player in the chocolate and confectionery bus
iness in the South East Asian region. In line with the Company’s objectives, CCL
has invested Rs. 150 million in its production facility at Kundasale, Kandy to
enhance capacities and to further improve its product quality, using state of th
e art equipment and the very latest technology found in the global chocolate and
confectionery industry. The company’s export programme has been expanded to cov
er Maldives, Middle East, parts of Europe and most recently India. Edna’s obje
ctive is to further consolidate the position and to achieve a market share of 60
%. In the hope of achieving this objective the group has entered into various di
versified fields of business and is involved with large investments towards them
at present. In addition the recipe too has been improved. Ritzbery’s long ter
m objective is to make this range strong regional brands in SAARC region, Especi
ally India, where, the company currently exports three 40-
P a g e | 22 foot containers a month, which is just the vanguard for a gradual p
ush starting from the country s south and moving towards other parts of the subc
ontinent. Cadbery hope to grow the market for chocolate confectionery and to i
ncrease Cadbury s share of the snacking sector.
03. Res ource & Capabi li ti es
Kandos has maintained a clear market leader status in Sri Lanka throughout its
four plus decades in existence. It is the first transnational company in Sri La
nka to have multiple bases in countries such as Singapore, Malaysia, Indonesia a
nd Thailand as well as in Sri Lanka itself. Currently its market share is 48%. K
andos has a mind share of over 90% in the chocolate category in Sri Lanka. It ha
s thus become the benchmark for chocolates in Sri Lanka.
Edna as a highly acclaimed conglomerate that boasts of almost 60 years in
business, Edna’s Super brand status is a powerful endorsement of the organizatio
n’s commitment to Brand Excellence. It’s unique brand promise and outstanding br
and delivery has been the reason for the success over the years. Ritzbury has
a market share of 22% within a comparatively short span of time. Cadbury is a
world’s largest confectionery manufacturer.
04. Assumpti on
Kandos assuming that they are the market leaders in chocolate industry. Consid
er about current situation in chocolate market Kandos is the market leader. They
have big market share and high brand loyalty.
Edna assuming that they are the big challenger in the chocolate industry. But
according to the current situation in the market place Edna don’t play big role
as a challenger. It posses the 21% market share that is lower than the Ritzbery
also.
P a g e | 23
3.5. Industry Ana ly sis
Fi ve Forces Anal ysis of Sri Lanka n chocolat e indus tri es
An industry is a group of firms that market products, which are close substitute
s for each other. Some industries are more profitable than others. The answer li
es in understanding the dynamics of competitive structure in an industry. Consid
ering today Sri Lankan chocolate market / industry, we could see that there is h
uge competition between each chocolate manufactures company. All are trying to b
ecome market leader, & try to capture the other’s market share. In addition, we
can see number of chocolate manufactures within the industry. When we talk about
the consumers of Sri Lankan chocolate market, everyone in Sri Lanka has an unco
ntrollable sweet taste for chocolates and not for just one brand. Ever since its
inception in our country, Sri Lankan have gone out of the way to get the right
kind of chocolates that would provide them with the ultimate satisfaction; one t
hat is the best in flavor, quality and texture. Whether it is at a super store o
r a drug market, Sri Lankan fined it as easy as paying a couple of rupees and at
taining a bar or more of chocolate. Some even go to the extent of bringing back
a load of chocolate when they travel abroad on business or a holiday. That tells
us how far Sri Lankan people prefer to chocolate. I think that the most influen
tial analytical model for assessing the nature of competition of chocolate indus
try is Michael Porter s Five Forces Model. The nature of the current chocolate i
ndustry in Sri Lanka describe as follows using this five forces model: According
to porter’s five forces, which are determined industry attractiveness and longr
un industry profitability. These five "competitive forces" are: The threat of
entry of new competitors (new entrants) The threat of substitutes The bargai
ning power of buyers The bargaining power of suppliers The degree of rivalry
between existing competitors
P a g e | 24
Thr eat of New Ent rant s ra
New entrants to an industry can raise the level of competition, thereby reducing
its attractiveness. The threat of new entrants largely depends on the barriers
to entry. In addition to that, it is highly depend on following factors: Econo
mies of scale Capital / investment requirement (infrastructure) requirements
Customer switching costs Access to industry distribut distribution channels (
out let, agents) The likelihood of retaliation from existing industry players
Product differentiation When we talk about the Sri Lankan chocolate industry,
we can see few entry barriers exist in chocolate industries in Sri Lanka whereas
other industries are very easy to enter. Reasons for that decision are: unlike
other industries, chocolate makers have economies of scale; because of they can
get privileges through mass pr oduction. As well as customers have low switching
cost due to availability of huge number of chocolate brands under affordable pr
ice level. Considering distribution channel manufacturers have number of palaces
such as food cities, groceries, boutique sho ps, pharmacies, bookshops
P a g e | 25 and other places to sell their products. We could not see large pro
duct differentiation with in Sri Lankan chocolate industry, because of all the p
eople are use same recipe or procedure to produce chocolate. In addition, they h
ave limited things to differentiate their product like price, packaging, distrib
ution channel. However, those things are done only small effect on competitive p
roducts. But when we consider about the capital requirement we can see that to m
ake chocolate the maker need to have big capital for most of the things such as
machines, technology, ingredients, and so many other things. Summarizing all the
above factors, finally we can say that there is a considerable threat of new en
trants, but it is not too much.
Thr eat of Subs ti tut es
The presence of substitute products can lower industry attractiveness and profit
ability because they limit price levels. The threat of substitute products depen
ds on: Buyers willingness to substitute The relative price and performance
of substitutes The costs of switching to substitutes When we consider about th
e Consumers of chocolate market, we could clearly see that they are highly conce
rned about the taste, quality, and price. If buyers can have high quality, subst
itute product with affordable price, they quickly switch to that substitute prod
uct. In Sri Lankan chocolate market, we could see number of substitute product,
which are having same quality, price, as well as taste with in the confectionary
industry. Few of them tic-tac, mentos, happy denty, lotto gum, spout, doublemen
t chewing gum, pebbles, jelly slices, toffee (hacks, daintee), biscuit (lucky la
nd, munchee, lemon puff, Diana, nice, cherish, horlicks), cake (yasasiri, Rajapa
kshe, Tiara, Muyra,),ice cream(elephant house, cargills), soft drinks(smak ,fant
a, coco cola) and so many other things. Considering the price performance of sub
stitute products, we can see that their price level is change in accordance with
the substitute product. Most of the substitutes of chocolate are available to s
ell in the same places, which are available chocolates. Most of the time the pri
ces are affordable and changeable, therefore their prices are highly affect on c
hocolate market. Due to availability of huge number of substitute product at var
ious places, customers have low switching cost. When we talk about the taste mos
t of the customers are highly favor on taste, but today they can have various pr
oducts which are
P a g e | 26 prodused using chocolate as main ingredients. Considering all these
facts we could tell that there is huge threat from a substitute product. Today
it has become a great issue for the chocolate manufacturers
Bar gaini ng Power of Suppli ers
Suppliers are the businesses that supply materials & other products into the ind
ustry. The cost of items bought from suppliers (e.g. raw materials, components)
can have a significant impact on a company s profitability. If suppliers have hi
gh bargaining power over a company, then in theory the company s industry is les
s attractive. The bargaining power of suppliers will be high when: There are m
any buyers and few dominant suppliers There are undifferentiated, highly value
d products Suppliers threaten to integrate forward into the industry (e.g. bra
nd manufacturers threatening to set up their own retail outlets) Buyers do not
threaten to integrate backwards into supply The industry is not a key custome
r group to the suppliers Chocolate manufactures always should have good supply c
hain management. Because of their relationship is too close due to many reasons.
In Sri Lankan context, there is not produced total requirement of chocolate ing
redients with in the country. Most of the time makers import those materials suc
h as cocoa, and various chemical, butter from the abroad. But many of the large
chocolate manufacturers of Sri Lankan has their own coco plantation and dairy fa
rm to supply cocoa and butter. Considering the amount of suppliers of these ingr
edients are not vast. But there are many buyers. With in the country we could fi
nd only very small number of suppliers. Most of the suppliers are foreigners. Co
nsidering the products, which are supplying by suppliers, is undifferentiated an
d value of one unit is relatively low. Because of those ingredients are not high
ly demanded or rare things. We could rarely see that suppliers are going for the
forward integration through making out let or something. But most of the chocol
ate manufactures in here are going to backward integration through buying or pla
nting cocoa, and import cocoa without intermediaries and producing their packagi
ng by themselves. But the notable thing is that, chocolate industry has become k
ey customer group of their suppliers. Other thing is cocoa suppliers have only l
imited alternative industries except chocolate industry to supply their product.
Because of cocoa beans are mainly used for making a chocolate. As well as
P a g e | 27 chocolate manufactures are highly need these things, because of the
y do not have alternative items to use instead of those raw materials. Consideri
ng all these factors, we could say that there is a considerable amount of bargai
ning power of suppliers.
Bar gaini ng Power of Buyers/ custo mers
Buyers are the people / organizations who create demand in an industry. The ba
rgaining power of buyers is greater when: Buyers threaten to integrate backwar
d into the industry Suppliers do not threaten to integrate forward into the buye
r s industry The industry is not a key supplying group for buyers The custom
er can take over source of supply The customer makes low profit The customer
s buy large proportion of out put If customers are strong position in exert pres
sure on suppliers for lower prices and or more product features .when we talk ab
out the Sri Lankan chocolate industry we could clearly defined that the customer
don’t have big bargaining power due to many reasons. Consumers of chocolate in
Sri Lanka are not consumed chocolate like other western or European countries. T
herefore, one consumer is not consumed large proportion of output. Therefore, ch
ocolate has not become a essential food or daily like other countries. Other thi
ng is they are not spent considerable amount of money from their income to buy a
bar of chocolate .most of the time it may be a small amount. The notable thing
is there are number of foreign and local brand in the market with very low price
. Also customers are having very low customer switching cost due to availability
of products in an everywhere. In addition, they can easily find other sources o
f supply due to expansion of distribution channels. But they cannot take directl
y over the sources of supply, because of always chocolate are distributed throug
h the intermediary process. Also customers can make lower profit due price and q
uantity. By buying, one chocolate customer cannot have big profit due to high co
st. But we can’t see big impact of buyers threaten on backward integration and o
r suppliers threaten on forward integration. Finally, we could tell that there i
s considerable bargaining power of customers/buyers.
P a g e | 28
Intens it y of Ri valr y
The intensity of rivalry between competitors in an industry will depend on: Th
e structure of competition The structure of industry costs High fixed costs
Degree of differentiation Switching costs Strategic objectives Exit barr
iers Is the market growing as a whole or declining?
Ritsbury, 22%
Edna, 21%
Other, 9% Kandos, 48%
Unlike other industries, there is no high competition among companies within the
chocolate industry. However, there are some extent competitions among few of co
mpanies. They are Kandos, Edna, and Ritsbury. Above di agram clearly shown us ab
out the percentages which belongs to each chocolate company in the Sri Lankan ch
ocolate market. ‘Other’ represents few of remaining local and foreign chocolate
brands. When we consider about the structure of competition that is pre vailing
in Sri Lankan chocolate prevailing market, we can clearly identify that there on
ly few of local chocolate manufactures instead of imported brands. The reasons a
re, there are not all the required things to produce chocolate and have to bear
huge money to produ ce the chocolate and especially produce there is not market
like western or European countries in Sri Lanka. When we talk about the key play
ers with in the market, we could say that, they are not deeply trying to beat or
to attack to other competitors, but always they try to satisfy their
P a g e | 29 customers by differentiating their products or introducing new prod
uct with new taste. Nevertheless, here they cannot mostly use price as a weapon
due to the high cost of raw materials. In addition to above strategies, using CS
R activities and marketing activities, they try to increase their market share.
Most of these key companies are following backward integration and forward integ
ration to expand their business. Following are the brief explanation regarding k
ey competitors with in the Sri Lankan chocolate market.
Kandos
The Sri Lankan chocolate market has been dominated by many local dealers, but Ka
ndos remains as the market leader. Kandos, however, has a strong base, it was th
e premier chocolate long before foreign competitors, and local imitators arrived
on the scene. The local consumer has been exposed to the exclusive taste of Kan
dos for the past nu sophisticated with many packs designs, display configuration
s, and chocolate flavors on offer. The Kandos brand has recognized the value of
segmentation and it reaches each market in each district in unique ways. Kandos
has maintained a clear market leader status in Sri Lanka throughout its four plu
s decades in existence. It is the first transnational company in Sri Lanka to ha
ve multiple bases in countries such as Singapore, Malaysia, Indonesia and Thaila
nd as well as in Sri Lanka itself. Based on current sales levels, one hundred un
its of Kandos are consumed every minute in Sri Lanka. The Kandos 21 collection i
s the most popular box of chocolate produced by the company.
Edna
Edna Chocolates and Confectionary is made with the use of a special Swiss recipe
and is well known for the fine quality and exquisite taste. These chocolates an
d confectionery are made from the finest cocoa grown in Sri Lanka, and the best
in milk, flavor and essence from around the globe. Their modern plants are situa
ted in Mawanella and Colombo for their export markets. They manufacture a range
of products - Bars, Snacks and Candies amongst others including Traditional Milk
Chocolates in six delicious flavours - Milk, Orange, Coffee, Vanilla, Rum and R
aisin and Fruit and Nut., The Premium Range and also Children’s Specials.. Edna
products are also exported to Bangladesh, Nepal, India, South East Asia and othe
r countries. The company has one of the largest Cocoa processing plants in Sri L
anka, which exports its finished products: Cocoa-liquor and Cocoa butter to Cadb
ury India Ltd.
P a g e | 30
Impor ted produc ts
Mars, Bounty, Snickers, M&Ms, Ferrero Rocher, Toblerone, Cadbury, Nestle, & kind
er are the some of the imported chocolate. They are a high premium rich brand, t
he prices have always been high, and the chocolates are usually distributed only
at selected prime outlets. The suppliers of those products conducted many activ
ities like promotions and sampling sessions that have had a good impact. Most of
the time there is big competition within these imported products. Although impo
rting such chocolates were difficult in the past and the prices were at certain
times, very high. Therefore, they are not a profitable one, as many people could
not even afford to buy the imported chocolates, which led to imports being rece
ntly discontinued. When we talk about the industry cost, the manufacturers who a
re going to start new
business as well as existing players have to bear high cost due to prevailing ec
onomic crisis. Also new entrants have to spend big amount of money from their ca
pital for the machines, equipment tools, and other things. In addition to that,
they have to bear cost to survive within the market/industry. Finally, we can sa
y that there is oligopoly market structure. Because nobody can be monopolistic w
ithin the industry and nobody can sell very law price or high price due to compe
tition. Always companies try to protect and increase their market share. For tha
t, they follow many strategies such as new product development, penetration, pro
duct differentiation, cost leader ship, offering for niche market, join with oth
er company or acquiring other companies. Their strategic objectives are focus to
make profit and surviving in this market. But always they have to think about t
he customer preference. Because of most of customers need real taste or sense of
the chocolate. With protecting that and facing to huge cost, the companies have
to do big struggle. Therefore, there is high industry cot. When we talk about t
he exit barriers we could not see barriers to exit from the market like other in
dustries, because of nobody can run their business with making losses in the Sri
Lankan chocolate industry. Chocolate have to bear huge cost for the manufacturi
ng chocolate, therefore making chocolate with loss is useless, therefore if any
maker who having losses he can exit from the market. Finally, we can say that th
ere are no considerable exit barriers in the Sri Lankan market. Not only chocola
te industry of the country, but also we have to concern about the confectionary
industry with in the country. that is why, most of the time chocolate market
P a g e | 31 comes under the confectionary industry. In Sri Lanka, confectionery
industry is growing and it will be the sector that will be least affected from
the global financial recession. However, in the last two to three years, there w
as a decline in the total market in the country. When we analyze the market scen
ario in Sri Lanka, we find that our country s confectionery industry has a satis
factory growth as we see a 10 per cent growth in biscuits, 10 per cent growth in
chocolates and 20 per cent growth in the cake market in the country. Therefore,
Sri Lanka s confectionery industry has a good future, as it has become an FMCG
product Finally, we can say, Comparing with other competitive industries, chocol
ate market in Sri Lanka is still developing, and have a minimum impact on global
and local economical crisis. Most of the Sri Lankan people buy local chocolate
due to affordable price, as well as they are started to remove from foreign bran
d due to high price. Overall we think that Sri Lankan chocolate market has good
future and still it is in the primary age.As with everything else, the cost of l
iving has imbibed itself in to the chocolate industry and left a sour taste in e
veryone’s mouth. However, given that most people cannot live without this ‘fix’
at least occasionally, the effect will hopefully be less.
P a g e | 32
4. Research Program
Before introducing “Canbara” chocolate, company brand manager decided to conduct
the research to identify the consumer behavior regarding the low sugar / sugar
free chocolate and market characteristics.
4.1. Research Report
To: Brand M anage r From: Department of Researc h & Deve lopment Subject: Sugar
Fre e Choc olate Conducting a research regarding low sugar / sugar free chocolat
es we can identify the market situation of low sugar / sugar free chocolates. He
re we can identify the available brands in the market and their strengths as wel
l as we could identify the characteristic of youth segment regarding the product
.
Infor mati on coll ect ed fro m cust omer s (Appendix)
We prepared questionnaire including twelve questions to get the customers inform
ation. We selected the Gampaha, Nittabuwa and Minuwangoda, Kiribathgoda and Kada
watha town which represents the urban and suburban areas. And focus on three sup
er markets, Keels Super, Cargills food city, Arpico Super and other main super c
enters. And interviewed 100 people from those super markets and studied their bu
ying behavior.
P a g e | 33
Analysis of customer information
Question 01 Do you eat chocolate? 02 Why do you eat/ buy chocolate?
03 How often do you consume/buy chocolate?
04 What kind of features that you concern when buying chocolate?
Answer Yes No Just for eat As a present For refreshment When seen in the shop Wh
en someone give Daily Weekly Monthly When need Price Taste Ingredients Brand nam
e Shape Package Expiry date Size 5-10 10-50 50-100 100-300 300-500 >500 Not pric
e concern Slab Bar Chocolate balls Fingers Pebbles Cubes Not concern the shape Y
es No Yes
% 100 16 51 18 13 2 09 18 34 39 26 25 10 28 2 4 3 2 2 29 42 16 2 2 7 16 55 7 6 3
9 4 37 63 66
05 What is the price range you prefer to buy?
06 What is the shape do you prefer to buy?
07 Are you health conscious when eat such a sweet products? 08 i) Do you aware a
bout the sugar free / low sugar
P a g e | 34 products? ii) If yes what are they? No Chocolate Biscuit Ice cream
Soft drink Jam Yogurt Aware and consume Aware and not consume Not aware When see
n in the shops Word of mouth News papers Doctors For a healthy life For a change
For test Yes No High price 34 20 29 21 11 14 5 31 18 51 42 29 23 6 20 46 34 25
75 26
09
i) Do you aware about the sugar free / low sugar chocolate?
ii) If you aware, through what sources do you know it?
10 i)If you consume low sugar chocolate, what is the reason?
ii) Do you continue it? 11 If you aware about the low sugar chocolate, what is t
he reason for not consume it?
12 What are things you expect from a sugar free / low sugar chocolate?
Unavailability 10 Not health conscious 64 Sweet taste Reasonable size Qual
ity Comfortable package Different shape (can be identified separately) Att
ractive packaging
P a g e | 35
Key obser vati ons
The most of are in the youth segment buy chocolates for the purpose of gives a
s a present and significant amount for the consumption and refreshment. Most o
f them are move to buy chocolates when need, in terms of rarely. Consider the
fact like price, brand name and taste when buying chocolates. Youth segment bu
y chocolates within the range of Rs.10-100. They prefer to eat chocolate with
bar shape. Unlike the elders youth segment not very much concern about the hea
lth when buying such a sweet products. But there is significant potion that conc
erns the health. The most of youngsters not very much aware about the sugar fr
ee/ low sugar products. The awareness regarding the sugar free chocolate is al
so less. Some know about the sugar free chocolates, but they did not move to con
sume due to not concerning about the health. The youth segment consume or awar
e about the sugar free chocolates through the displays in the shops, news papers
and word of mouth. The most of respondents have eaten sugar free / low sugar
chocolates for test and for a change not for the health concern. The customers
who already eat sugar free / low sugar chocolate, not continue it further. Beca
use they need not concern about the health. The reason for not consume by awar
e customers are high price and unavailability. The most of unawared younger wi
sh to consume sugar free / low sugar chocolate and they expect following from it
. Sweet taste Reasonable price Quality Comfortable package Different s
hape (can be identified separately) Attractive packaging
P a g e | 36
04.2. Market Segmenta tion
Market segmentation involves dividing the market in to distinct groups of homoge
neous consumers who have similar needs and consumer behavior relating to the Can
bara chocolate. In here we create two segmentation profiles are often most valua
ble in understanding brand issue, because we have clear strategic implications.
Segment ation Demographic
Income Gender
Profiles Geogr aphic Behavioral
Occasion Benefits Social class Usage rate
Psychographic
personali ty Attitude Life style
S1
18- Male, 30 Female
Age
Family: >50000 Bachel or: >30000
Urban, Suburban
A, B, C1
High, Middle Light, Nonusers
Any time
Taste, Refreshm ent, Nutrition, Healthy life Taste, Satisfacti on
S2
18- Male, 30 Female
Family: <25000 Bachel or: <15000
Suburban, Rural
C1, C2, D
Light, Nonusers
Spec -ial occa sion
Acti ve, Spor ty, Bala nced cool Ordi nary
Smart Celeb -rity
Positiv e
Do not like to out standi ng
Positiv e & negati ve
Seg menta tion pr ofi les
A – Ministers, B – Professionals, C1 – Government Workers, C2 – Laborers, D – Un
employees
P a g e | 37
04.3. Target Market
Out of the above segmentation profiles, we identify the segment 1 (S1) is the mo
st suitable one for our target market. According to that target segment of Canba
ra can be explained with the highlighted variables.
0 4 .3 .1 .
I.
Demo graphic Base
Age:
We select the age between 18-30 years old persons for Canbara. Because we try to
attract youth persons for this sugar free chocolate. Most of the time youth seg
ment is entering to the market which like to purchase sweet product like chocola
te. Therefore we select this age is suitable to target healthier product to the
youth than the other unhealthier sweet products.
II.
Gender :
We have to select both male and female as our target segment, because both males
and females are very much interesting about the chocolate flavor.
III.
Incom e:
We try to attract the youth who have monthly family income above 50000 or a bach
elor above 30000, because the Canbara is the luxury product of the chocolate mar
ket. And also the price of the Canbara Takes Rs.100/= foe 45g packet. It is high
er price than the other chocolates in the market. Therefore we target those high
earning families and bachelors as our target market.
0 4 .3 .2 .
Geogra phic Bases
In here urban and sub urban persons chose for the Canbara, because high price an
d most celebrative people are scattered on the urban and sub urban area.
0 4 .3 .3 .
I.
Ps ychographi c Bas e
Life style:
Canbara chocolate is matched to the young persons who have active, sporty, balan
ced and cool life style. They can get extra refreshment with Vitamin B12 for the
ir active sporty and balanced life style.
P a g e | 38 II.
Per sonality:
Youngsters who have the smart and celebrity personality choose for the Canbara d
ue to the Canbara is the chocolate for smart youngsters.
III.
Attitude:
Canbara is for the forward thinkers or the challengeable persons. Those persons
should have positive attitude to face challenges. Therefore our target segment h
ave positive attitude to select the Canbara.
0 4 .3 .4 .
I.
Behavi oral Bas e
Social clas s:
According to our target segment their social class categorize under A, B, C1, C2
, And D. That means persons who have positions such as ministers, professionals,
government workers, laborers and un employees.
II.
Usage rate:
Under the youth segment, chocolate usage rate may be high, middle, light and som
e are not using the chocolate. Therefore we targeted all the youngsters who have
usage rate high, middle, light and non users to increase the usage rate. So cre
ate the preferences about chocolate in non users mind.
III.
Occas ion :
According to the Canbara target segment, we offer chocolate for any time which t
hey want extra refreshment.
IV.
Bene fits :
Every chocolate users purchase the chocolate for benefits. Therefore Canbara tar
geted youth who wants taste, extra refreshment, nutrition and healthy life.
Ultimately we think, that target segment is the most strongly held, favorable an
d unique for the Canbara.
P a g e | 39
5. Scope and Space Analysis
05.1. Scope
The company has taken the refreshment as a scope of the sugar free /low sugar ch
ocolate. The chocolate is use for mainly as a tasty item and refreshment. If we
take confectionary (sweeter products) as a scope it may be narrow down the scope
of “canbara”. But within the scope of refreshment taste items are also includin
g. And also the “Canbara” as a youth segment focus sugar free chocolate, refresh
ment is more relevant as the scope. The products under the scope of refreshment
can be used at any time when the customer feel tired or the customer needs to be
refreshed. It may be as energy, power, cool/ hot appeals and etc.
05.2. Space
Spa ce 01 – Choc olat e (wi th s ugar)
Chocolate contains alkaloids such as theobromine and phenethylamine which have p
hysiological effects on the body. It has been linked to serotonin levels in the
brain. Brain stimulator is the main beneficial effect. So it gives refreshment t
o the consumer. It is one of the most popular treats given on holidays, Valentin
e’s Day, Christmas day, thanks giving and birthday, because of its taste and ref
reshment. E.g. - Kandos, Edna, Diana, Rizberry, Cadberry, Mars, Ferreo
Spa ce 02 – sugar f ree chocol ate
Due to the joys of chocolate tend to come bundled with lots of sugar, there is s
ugar free chocolate which have sugar substitute like Maltitol. It also acts in a
pleasant way on the moods of its consumers. Most of time, this kind of chocolat
es is used by health conscious consumers. Their purpose is also being refreshed
by healthy manner. E.g. – Kandos Lite, Kandos dark etc
P a g e | 40
Spa ce 03 – soft dri nks (car bonate and non ca rbonate )
A soft drink is a beverage that doesn’t contain alcohol, generally it is also im
plied that the drink doesn’t contain milk or other dairy products and that it is
consumed while cold. Modern drink use introduced carbon dioxide but alcohol mig
ht result from fermentation of sugars in an unsterile environment. A small amoun
t of alcohol is introduced to at least some soft drink where alcohol is used in
the preparation of the flavoring extracts. However the main benefit of soft drin
ks is refreshing the consumer. e.g. – Fanta, elephant house (Cream Soda, Necto,
Orange Crush), Ole, Coca-Cola, Sunquick, KVC, MD
Spa ce 04 – Bi scui t
A biscuit is a kind of small, flat-baked bread product that is usually made with
chemical leavener such as baking powder. Through it fulfills the hungry or is a
snack solution, the ultimate result that given is refreshing the user’s mind. e
.g. – Maliban, Munchi, Diana, Britannia, Little Lion
Spa ce 05 – Dai ry prod ucts
Dairy products are generally defined as food stuffs produced from milk. They are
usually high energy yielding products. Giving high energy means that products a
lso refresh the consumers. e.g. – Ice cream (elephant house, Cargills, kothmale,
highland), Milk packets (newdale, kothmale, highland), Yogurts (newdale, kotmal
e, anchor, raththi, ceetee)
Spa ce 06 – Food Dri nks
In an effort to meet broadening consumer tastes, fast food chains are rolling ou
t a host of specialty drinks that go far beyond basic soft drinks. e.g. – Milo,
Nestomalt, Horlicks, Viva, Maggi soup
Spa ce 07 – Tea and Cof fee
Between stimulating the mind and calming the soul, the case should be that coffe
e and tea are different in the sense of the purpose that each serves. But both a
re refreshing the consumer.
P a g e | 41 e.g. – Ceylonta, Lipton Laoji, Harishchandra, Nescaffe, Delma
Spa ce 08 – Bot tl ed wat er
Bottled water is drinking water packaged in generally plastic containers, regula
ted by national and local agencies. It’s a healthier substitute. It’s a not just
quenching the thirsty, but giving a refreshment too. e.g. – Acqua, Sisil, Crist
al, Scan, Smack, Sogo, Mineral, KVC, Spa
Spa ce 09 – Li quor
Liquor is a drinkable containing ethanol that is produced by means of distilling
fermented grain, fruit or vegetables. It also gives refreshment for users. e.g.
– Lion, Red Lable, Lemon gin, Rockland, Vodcar, Mendis, Carlsberg
Blue Ocean – Sugar free chocolate wi th vitamin B12
According to our analysis, within the scope of refreshment there is sugar free /
low sugar chocolate brands and other brands that keep customers well. But those
healthier products have limited to only that category and not specifically targ
eted to the youth segment. And also there are number of brands which gives refre
sh to the customers but those are not healthier ones. So we want balance the bot
h of these refreshment and well being. That is the gap we identify between compe
titive brands and customers. So we came up with the sugar free chocolate by Malt
itol and extra refreshment by B12.
P a g e | 42
0 6. Identifying Profitable Gap in the Market
According to the research findings, Company can identify the profitable gap that
is available in the market. By filling this gap company can enter to the market
in successful manner. Given
Competi tors Market gap Custome rs Driven
According to our analysis, within the scope of refreshment there is sugar free /
low sugar chocolate brands and other brands that keep customers well. But those
healthier products have limited to only that category and not specifically targ
eted to the youth segment. And also there are number of brands which gives refre
sh to the customers but those are not healthier ones. So we want balance the bot
h of these refreshment and well being. That is the gap we identify between compe
titive brands and customers. The youth segment in SriLanka not very much health
conscious. When we came up only with the sugar free / low sugar concept it may n
ot be workable. And we want to attract youth segment who already consume normal
sugar chocolates from the other brands. So we need to differentiate our chocolat
e from other brands and need to add extra thing. Then we came up a sugar free ch
ocolate with the brand name called “canbara” that gives “extra refreshment by vi
tamin B12 and as a healthier product.”
P a g e | 43
7. Product in Use Analysis (PIU Analysis)
After identifying the profitable gap in the market creating a brand values and p
ositioning them should be plan with the clear identification of product in use a
nalysis. Then the brand should be a value communicator not for the customer but
for the context of the customer.
Customer (Smart Youngster)
Context (Extra refresh with well being)
PIU
Company (Chocolate Manufacturer) 1. Cust omer - “Sma rt youngs ter”
According to the brand name called “Canbara” the Company expected to target the
youth segment specially age between 18-30 years from urban and suburban areas in
SriLanka. The reasons for that being urban and sub urban society younger is the
emerging trend has been found in young generation aged between 18-30 has been m
ore alert on low sugar and non fat foods. And also the younger who getting such
a decision, should be treated as intelligent, caring and outstanding character w
ithin the youth. That is why company treated their customer as the “Smart youngs
ter”.
P a g e | 44
2. Cont ext - “ Ext ra r efres h wi th well being
The context for the “Canbara” is extra refresh by the vitamin B12 with well bein
g. There is number of chocolate brands in Sri Lankan market that are not conside
ring the health. And also there are competitive brands in sugar free/ low sugar
chocolate category but those are not specially targeted to the youth segment and
there is no any motives to get sugar free chocolate by the youth in addition to
the health conscious. That is why we want to differentiate our product within o
ther brands by extra refresh by B12. The vitamin B12 is one of the eight B vitam
ins. It is normally involved in the metabolism of every cell of the body. It is
important for metabolism, the formation of red blood cells and the maintenance o
f the nerves system, which includes the brain and spinal cord. So that gives ext
ra energy, refresh to the youth with the well being.
3. Comp any – Choco late Manufac turer
The “Canbara” is another brand which is comes under the chocolate category. So o
ur company comes as another chocolate manufacturer in the SriLankan market.
Va lue Proposition
The value proposition is what the company promise to the customer. It should be
develop with comparing to the competitive brands. The unique selling proposition
of “Canbara” is “Touch the Real Sense”. Canbara promises to the youth that give
s the feelings of truth taste to their all senses. The youth segment in Sri Lank
a had already touched the senses of sight, taste, smell and hears with regarding
the chocolate. But they do not touch their heart and brain. It tells no doubt y
ou can enjoy your life with extra refresh and well being life with the “Canbara”
.
P a g e | 45
8. Point of Different (POD)
Within the space of sugar free / low sugar chocolates “Canbara” possesses the u
niqueness that the company promise to the customer. The point of different of “c
anbara” from other competitive brands is providing “extra refreshment by vitamin
B12”. The youth segment consumes different products as a refresh item but those
are harmful t o their lives. The vitamin B12 is one of the eight B vitamins tha
t normally involved in the metabolism of every cell of the body. So that gives e
xtra energy, refresh to the youth with the healthier life. So the Canbara differ
from other refreshment product categories by well being. And it is unique from
other sugar free/low sugar competitive brands by extra refresh with vitamin B12.
Vitamin B12
Vitamin B12 is a water soluble vitamin with a key role in the normal functioning
of the brain and nervous system and for the formation of blood. It is one of th
e eight B system, . vitamins. It is normally involved in the metabolism of every
cell of the body, especially . affecting DNA synthesis and regulation, but also
fatty acid synthesis and energy production.
P a g e | 46
9. Brand Template
The brand template describes the basic frame work of the brand “Canbara” in term
s of the brand personality with some design philosophies.
9.1 Product Philosophy
Em oti onal val ue
Canbara is a sugar free chocolate. When the sugar free products come to the mind
normally people think as a health product. Because of sugar free products gener
ally introduce as a healthier products. Canbara chocolate introduce for the yout
h segment. Usually youngsters don’t think as rationally as matured people. There
fore Canbara offer ly emotional value to the user in broader way as “refresh for
ever”. There are number of products in the market that provide the refreshment.
Hence Canbara make differentiation compare to those products as extra refreshmen
t. Because of Canbara mainly utilize the vitamin B12 as an ingredient to provide
such extra refreshment. Therefore Canbara helps to care the health with offerin
g extra refreshment. The reason is that there are s ome products in the market t
hat provide the quick refreshment, but they create the risk for the health in fu
ture as a result of continuous consumption. Such risk that means the
P a g e | 47 harmfulness for the health doesn’t create through the Canbara, beca
use it utilizes very essential nutrition for the human call vitamin B12. In such
case youngsters who have careness about their health they tend to purchase prod
uct like Canbara. Because such youngsters know the correct products and they ref
lect as they are smart. Youngsters expect quick refreshment. Canbara provide ext
ra refreshment with the well being for the user. Therefore youngster who need to
averse the risk for their health through the refreshment and protect their futu
re, such youngsters can use the Canbara. It is reflect the intelligence of the y
outh. With such things Canbara introduces for the youth segment by offering the
extra refreshment and the careness. Therefore Canbara reflect emotional value as
refresh forever.
Rat ional Val ue
Rational value reflects the benefits of the product that offer to the user. Canb
ara as a sugar free chocolate it provides several benefits to the user. As produ
cts that offer the refreshment Canbara provide extra refreshment to the user. It
is done by the Canbara by utilizing the vitamin B12 that helps to people to be
active. And also with the extra refreshment Canbara care the user. Because of it
consist with the in vitamin B12 that is very essential for the human life. Beca
use of vitamin B12 helps to formation of the red blood cells and maintaining the
nerves system. Canbara offers real taste of the chocolate. Thus Canbara provide
s extra refreshment, careness as well as the nutrition for the user.
Phys ical Val ue
Product with rational and emotional value should be communicated those things by
visualizing to the user. That mean physical value also should be with the produ
cts. As a sugar free chocolate Canbara comes with the brown, white and red colou
rs. Brown colour use to the Canbara to give the appeal of chocolate, because whe
n the chocolate comes to the mind, as a colour brown is comes to the mind of the
people. Brown colour is more tied with the chocolate. Canbara introduces for th
e youth segment. Therefore white and red colours use as other colours for the Ca
nbara. Because of white and red colours are more aggressive colours. Those colou
r combination helps to make more attention towards the Canbara. The other import
ant thing is shape of the package. Canbara chocolate comes to the market with a
specific shape. It is just like a piece of chocolate. It helps get more attracti
on to the Canbara among other chocolate.
P a g e | 48
9.2 Brand Template and Design
Smart Facing Challenges
Smart Youngster
Urban Pulse Active
09.2.1. Smart
Our advertising environment is located at a lecture hall. A boy is playing main
role of the advertisement. At the beginning of the ad lecture is going on and th
at boy doesn’t concentrate on the lesson. Because of that lecturer tells him to
come and continue the lesson. While he is going towards the board, a girl gives
canbara for him. After having the chocolate, canbara name touch his mind. By con
sidering canbara name he continues the lesson, because of his thinking pattern a
ssociate with the canbara, he shows as a smart person by making others surprised
.
09.2.2. Fac ing Chall enges
Main character of the ad is a boy. He is in the lecture but he doesn’t concentra
te on lecture and also appear as sleepy and boring. Hence lecturer tells him to
continue the lesson. It is a big challenge for him, because he doesn’t know what
the lecturer is teaching. He is going towards the board with some doubts on his
mind, while he is going one girl gives canbara. After having canbara he does hi
s job well. He gets confidence to face the challenge by having canbara. He wins
the challenge that given by the lecturer successfully.
09.2.3. Act ive
Here the boy is going to do the job that assigned by the lecturer. Before having
canbara he was sleepy and boring. After having piece of canbara chocolate he ge
ts refreshment.
P a g e | 49 When he goes to the board he doesn’t take pen as normal way. He hit
s the edge of the pen and then the pen is going up and he catches it and then he
writes on the board. Having canbara he very actively participates for the work
by showing his colours.
09.2.4. Urban pu lse
The advertisement environment is like a high education lecture hall. The student
s who are attending to the lecture looks like urban and suburban people. It show
s through their clothes and appearance.
9.3 Brand Muscles
Well Bei ng
Canbara is a chocolate that pertaining to the sugar free chocolate category. In
generally sugar free chocolate is introduced for the people who care about the h
ealth. Hence the context of such category Canbara is also the product that provi
des the support to keep well. There is a important thing to state it is that whe
n using the products like carbonated drinks and liquor or alcoholic drinks for t
he refreshment it would be badly affected for the health of the user. Hence th a
t creates a risk for the user health. But the Canbara offer that refreshment to
the user with careness. Because of it consists with vitamin B12. As a product th
at provide refresh, Canbara utilize mainly vitamin B12 for that purpose. Therefo
re that vitamin helps people to keep well their day to day life with careness. h
elps Through that users can get important nutrition for their life with enjoying
the refresh.
P a g e | 50
Ref resh Mi nd
Canbara is a chocolate that provides the extra refreshment for the youngsters. Y
oungsters who need to enjoy their bloom with happy and careness, they can achiev
e such aspiration or purpose through the Canbara. Because of why Canbara consist
with the vitamin B12. Vitamin B12 helps to formation of the red blood cells and
maintaining the nerves system. So it helps to users to be refreshing always. Wi
th such POD Canbara provide refresh mind to users. Therefore Canbara provides th
e cheery moments with the extra refreshment to the youngsters.
Smart Thi nking
Canbara is a sugar free chocolate that provides the extra refreshment to the use
r. There are number of products in the market that provide the refreshment. When
using continually some products out of those products would be caused for the d
amage to the health. Normally youngsters are not worry about their health, when
purchasing products that provide the refreshment. They expect mostly quick refre
shment. So they would be faced for the several health problems in their matured
life. Therefore the youngsters who need to prevent from such problem, they tend
to think about their health. Person who chooses Canbara it is a smart decision.
Because of it reflect the youngster who lives with careness about the health. Th
at mean they think about the future. Therefore the purchasing of Canbara shows s
mart thinking. That means youngster who needs refreshment, he or she gets extra
refreshment by concentrating on the health. That is made the safe for the future
. Therefore it reflects the smart thinking.
Tas te
When sugar free products come to the mind of people they normally think there is
no sweetness. Especially among the youngsters mostly have such perception about
sugar free products. Although the Canbara is a sugar free chocolate, it provide
s the real taste of chocolate to the user. Even though it is not consist with th
e sugar, it provides the real taste of the chocolate by engaging with the “Malti
tol”. The taste is very important for the product like chocolate. Because youngs
ters willing to enjoy the sweetness with the chocolate. Therefore the youngsters
who care about the health and who need extra refreshment they can achieve that
with the real taste of chocolate by consuming Canbara.
P a g e | 51
10. Develop th e Believers
Key Mental Association
Once identifies the point of Different of “Canbara”, it should provide the evide
nces or associations to make such POD believable one. The “Canbara” has develope
d such values with different physical and psychological aspects to communicate t
o the customer which align with the scope of “extra refreshment by vitamin B12”.
Through that “Canbara” expect to create trust, believe on consumer mind in near
future.
Names and other names
Value Proposition
POD Promise
Metaphors
Marks and Symbols
P a g e | 52
1. Nam es and Ot her Name s
Name and other names are in the sense recalled the brand values by the customer.
So it should communicate the brand values to the customer. The “Canbara” is jus
t not only a name. The each and every letter of “Canbara” possesses values that
promise to give to the customer.
C A N B A R A
2. M etaphor s
Caring Active Nutritional Brilliant Attractive Real Achievable
Brand should communicate the imagination of a person who consume and associates
the brand personality of the “Canbara”. “Canbara” reflected it as the “Smart You
ngster” in terms of the brand personality. According to the brand name called “C
anbara” the Company expected to target the youth segment specially age between 1
8 and 30. Out of the number of brand that provides refreshment to youngsters sel
ecting the “Canbara” reflected as the intelligent decision among the youth segme
nt. Because of he possesses not only the refreshment but also the healthier life
. So when consume the Canbara Sugar free chocolate the customer feels that he is
a very smart and intelligent young guy. The name Canbara symbolize that the qua
lities of a smart person which are caring, active, nutritional, brilliant, attra
ctive, real and achievable. Therefore any person who consumes the Canbara chocol
ate feels that he has such qualities and then he will become a smart guy.
3. M arks and Sy mbols
Symbols and marks are the identities of the brand. It reflected what can custome
r see and what can feel from the brand. Canbara brand has used those values to f
eel the brand to the customers.
P a g e | 53 Colours as a dark Brown, white and red colour has used the creating
the package of “Canbara”. Dark brown colour given the feeling of the chocolate
and white colour is an aggressive colour. This product of the Canbara brand targ
eted to youth who is in 18-30 age categories. So the colour of red takes the att
ention of the youth and also it is an aggressive colour of the youth. In the pro
duct of Canbara brand, the shape of the package just likes a piece of a chocolat
e. It is unique shape to the Canbara. Letters shape also gives the identity for
the Canbara product. We will use unique sound for the Canbara brand promotions i
n television advertisement. If the sound hears the customer; they can recall the
brand name Canbara quickly. The unique selling proposition of the company is al
so symbol of the Canbara brand.
4. Val ue proposi ti on
Value proposition is value promise to the customer. It is also pay of line of th
e brand. In the Canbara brand’s pay of line is “Touch the Real Sense”. From this
pay of line it said by using Canbara brand the customer can feel the real touch
to all senses itself. All senses of sight, taste, smell and hear with regarding
the chocolate. But they do not touch their heart and brain. It tells no doubt y
ou can enjoy your life with extra refresh and well being life with the “Canbara”
. All ways Canbara brand call to youth’s heart and brain.
P a g e | 54
11. Brand Positioning
11.1 Positioning Principals
Brand positioning is a strategic activity. Positioning depends on 6p’s.Actually
positioning is all about differentiation .That means each brand should have a di
fferentiation. That differentiation should communicate to the target mix. That i
s called positioning. When positioning the brand we should consider about positi
oning principles. If we not correctly did brand positioning, it may be fail the
brand in future. There are six steps in positioning principles.
11.1.1. Cent ral Val ue
“Canbara” is a chocolate. So, we can identify refreshment as the central value o
f the canbara. Because of we are normally purchase chocolate for having refreshm
ent. In order to give the central value properly (refreshment), company has iden
tified the supportive value like Vitamin B12, colour, sound for canbara. Vitamin
B12 helps to formation of red blood cells and maintains the nerves system. Comp
any has used use dark brown colour as the main colour that represent the chocola
te, and red, white colours as the aggressive colours.
11.1.2. Sel ect ing t he correct ment al domain
That means the brand locate at the correct mental space in the customer mind set
. Because of customers refer the brand firstly in terms of the relevant product
category. When consider about canbara it belongs to the chocolate folder .Althou
gh big domain is refreshment for canbara, correct domain\location is chocolate.
11.1.3. Ladder ing pr inci ples
That means the brand should be located at the top of the mind. It misplays once
the brand is recalled as the first priority customers be favor for that brand. W
hen considering the Canbara it is in the new product development stage. So, we c
an’t apply this principle now. So we can apply this principle in the future. If
it is so, when talk about chocolate, canbara comes to our mind in near future.
P a g e | 55
11.1.4. Sus tai n the bra nd name at the cor rect ment al dom ain
That means parent brand has to be sustain in a unique folder in the customer min
d. Therefore brand diversification can be implemented to unrelated product categ
ories with the same name itself by offering certain unique difference for the pr
oduct. When consider about Canbara we can do brand diversification with the same
name by offering certain unique differentiation for the Canbara .So, if we not
do brad diversification with the same name, it will be failure.
11.1.5. St rongly com munica te the POD and the posi ti oning massa ge to th e t
ar get prof il e
POD means the unique value of that a particular brand process compared to the co
mpetitors. Actually customer grab the product because of difference POD when con
cern about the POD of canbara. We can see as “Extra refreshment by vitamin B12”S
o,this is the promise of the Choco Land company. Therefore it should strongly co
mmunicate to the target customer .They promise to give extra refreshment by vita
min B12.This significant value has to be well promoted with different physical a
nd psychological aspects to motivate the customers. So, it should communicate to
the target customers by KMA’s. Here we can use name, metharpers, marks and symb
ols, and value propositions in order to make the Pod a believable one. Then cust
omers develop a mental perception on the significance of the canbara.
11.1.6. Del iver t he prom ise va lue
Ultimately brand should deliver what it has promised to the customer. Here it ha
s to integrate the all 4P’s to deliver POD. When delivering the promise value we
can use brand name, packaging, ingredients, pricing, place and promotion.
P a g e | 56
11.2 Brand Positioning
11.2.1. Pos it ioni ng St rat egy
It is not enough to launching a product to the market. After launching to the ma
rket the marketer should create significant value for the product. That means po
sitioning. Under brand positioning, there are several positioning strategies tha
n can be used to position the brand in the consumer mind ste. Those are by attri
butes, by price/quality, by comparing to competitors, by application/use, by pro
duct user and product class/category. Here we sue by application positioning str
ategy to position the Canbara chocolate in the market. The reason for selecting
by appl ication/use is that, this is new brand to the application/use market. So
firstly we should notice the benefits of products and usage requirements rather
than other positioning strategies. The unique benefit of Canbara chocolate is e
xtra refreshment with 100% taste and wel l being. We express that by consuming C
anbara well chocolate can get extra refreshment and 100% taste as well as 100% w
ell being. Considering all the things, we select by application/ use positioning
strategy to position the product in market place.
11.2.2. Per ceptua l Map and Pos iti oning
Perceptual map expressed where the company’s position their brand in the future
through certain specification. Here Canbara chocolate introduce for youth segmen
t in the market and this product categorized under sugar free choc olate. So we
use refreshment and well being as two dimensions. Because this is sugar free cho
colate, we try to position that Canbara chocolate as extra refreshment with 100%
taste and well being. This is healthy product (no sugar added) and gives extra
ref reshment. So we map the Canbara brand at refreshment. top of the well being
and middle of the refreshment. Above map is shown that.
P a g e | 57
12. Brand Levels
It is must to identify the brand levels that relate to the product “Canbara”. Th
rough that company can deeply identifies the customer’s behavior when they devel
oped the product called “Canbara” In here it is describing five levels relating
to the brand as functional, experiential, relational, social and psychological l
evels which can be described as follows.
Nice to have value
Should have value
12.1 Functional Value
The functional value is the primary driver which motivate customer to buy the ch
ocolate “Canbara”. Though the chocolate is sugar free chocolate or a normal choc
olate customer buys due to the refreshment and as a taste item. When buying “Can
bara” people hope to be a well being in addition to the refreshment and taste.
12.2 Experiential Value
Experiential value means the value that give new experience to the customer ove
r the competitive brands. The “C anbara” gives customers extra refreshment by vi
tamin B12 “Canbara”
P a g e | 58 with the well being. It is not only a healthier chocolate but also
it gives extra refreshment to the youngsters.
12.3 Relational Value
Relational value justifies the eligibility of the customer to be with certain re
ference group. The “canbara” make the customer feel to be a “smart youngster”. F
rom a number of refreshing products, selecting a refreshing product with well be
ing (Canbara) is an intelligent, outstanding decision within the youth segment.
So the younger who bought a “Canbara” qualified to be with the segment of “smart
youngster”.
12.4 Social Value
The social value of a brand communicates about the customer to the other social
groups. The “Canbara” as a sugar free chocolate enhance your health consciousnes
s to the society as a younger and you have motive to pay high amount for that ex
tra benefit.
12.5 Psy chological Value
The psychological value communicates the success about you one day. There is psy
chological value associate with the “Canbara” also. When you eat the sugar free
chocolate “Canbara” you feel the safe and no any doubt you are safe from the dia
betics.
01. Relational Value
04. Psychological Value
03. Social Value
05. Functional Value 02. Experiential Value
P a g e | 59
13. Smashing Brand
The brand should be smashed, because it is highlighted top of the customers mind
. Therefore “Canbara” as a new brand which introduce to the market, we have to c
onsider every possible consumer touch points with a view to building or maintain
ing the image of the brand. When selecting the pieces of smash, our brand is cre
ated independently of other brand to be success. So we identify the different wa
ys to the smash “Canbara’. According to our view it can be indicate as follows.
13.1. Smash the Colour
We try to create a package of chocolate with using dark brown, red and white col
our to create clear association for “Canbara”. In here we mainly consider dark b
rown colour for back ground of package due to the some reason. When we think abo
ut chocolate it takes dark brown colour. So we think it is most benefited colour
for use the chocolate. And use red and white colour to get the attraction of cu
stomers towards the “Canbara” brand as aggressive colours. (Appendix)
13.2. Smash the Shape
“Canbara” is just like a piece of chocolate. When keep the Canbara on the rack i
n super market, we can be identified “Canbara” from others due to its unique sha
pe. (Appendix)
13.3. Smash the Name
The brand name is a fundamentally important choice because it often captures the
key association of a product. Therefore we select the brand name as “Canbara” f
or our new product which introduced to the chocolate market. And design the word
of “Canbara” very attractive way for smashing. The name of “Canbara” is so clos
ely tied to the chocolate product in the mind of consumers. Therefore Choco Land
Company has decided the “Canbara” as the brand name. It can be kept in consumer
s’ memory within just few second. (Appendix)
P a g e | 60
14. Five Dimensions of a Brand
Sight
Taste
Smell
Touch
Sound
Touch
Sugar free products introduce as a healthier products. The Canbara is a sugar fr
ee chocolate, it introduces for the youth segment. Because of the chocolate that
target the youth segment, it cannot be gone through directly as a healthier pro
duct. Because when the health product comes to the mind it creates sick appeal.
Therefore with such a thing Canbara cannot exist in the youth segment. Hence the
Canbara creates smart youngster as a brand personality. Canbara is a chocolate
that offer the extra refreshment. Like some other products that provide the refr
eshment, Canbara doesn’t damage to the health of the user as a result of continu
ous consumption. Therefore the users of Canbara don’t need to afraid about their
health of the user of the consumption of Canbara. It consists with the vitamin
B12 and vitamin B12 is very essential to the people for their day to day life. T
herefore youngsters who need refreshment and who think about their health and th
e future life, they can use Canbara. It is a smart decision. Therefore the young
sters who use Canbara for achieving refreshment they reflect themselves as smart
youngsters. That is why Canbara gives the priority for the touch value to enter
the youth segment.
P a g e | 61
Si ght
Sight means how the brand has been visualized in terms of colour and designs. We
take sight as our second dimension because of colour of package and design of p
ackage. here we take dark brawn because it just like colour of chocolate and whi
te and red (aggressive colours) the reason for selecting these colour are, most
of youngsters love to these dark and aggressive colours. So that we select these
colours and also we try to get more attraction from our shape of package. Our p
ackage shape is just like a piece of chocolate. Considering all the thing, we ta
ke sight as our second dimension.
Taste
We used taste as third dimension to reach the customers. The taste means, what i
s the basic consuming experience which is significant for the product. The basic
consuming experience of chocolate is refreshment. So we give extra refreshment
from our chocolate. So we select taste as third dimension.
Sound
We used sound as fourth dimension to get more attraction toward the brand. Here
we create a audio sound relates to our Canbara chocolate and we hope to put that
sound to each and every advertisement as well as hope to introduce to super mar
kets, keels super, and so on. Through that sound, we try to get more attraction
toward the Canbara.
Smell
That means how the customers can recognize the brand as specific aroma appeal. W
e don’t use smell dimension to get attention from the customers because this is
a healthy product. So if we want to add some aroma appeal we should mix some che
micals to the chocolate. So we do not add any chemicals to get some aroma appeal
. So that is not suitable for that kind of healthy products. Therefore we do not
use smell as a dimension to get attention from the customers.
P a g e | 62
15 . Sensory Branding
Sensory branding is how the brand communicates its values to the customer. Brand
as a product should deliver sensory stimulus to the customer.
15.1. Smashing Brand towards the Loyalty
Smashing
Bond
Loyalty
Enhance
Stimulate
1. St im ulat e (rel at ionshi p)
It should relate something to the brand. It may be Unique Selling Proposition or
the Point Of Different. Out of the five value hats “Canbara” more touch on the
relational value. Relational value justifies the eligibility of the customer to
be with certain reference group. The “Canbara” make the customer feel to be a “s
mart youngster”. From a number of refreshing products, selecting a refreshing pr
oduct with well being (Canbara) is an intelligent, outstanding decision within t
he youth segment. So the younger who bought a “Canbara” qualified to be with the
segment of “smart youngster”.
P a g e | 63
2. Enhanc e (Five Dim ensi ons)
Through the five dimensions it should enhances the most important value. “Canbar
a” will have created the value for the brand through its touch value of “Smart y
oungster”. Sugar free products introduce as a healthier products. The Canbara is
a sugar free chocolate, it introduces for the youth segment. Because of the cho
colate that target the youth segment, it cannot be gone through directly as a he
althier product. Because when the health product comes to the mind it creates si
ck appeal. Therefore with such a thing Canbara cannot exist in the youth segment
. Hence the Canbara creates smart youngster as a brand personality. Canbara is a
chocolate that offer the extra refreshment. Like some other products that provi
de the refreshment, Canbara doesn’t damage to the health of the user as a result
of continuous consumption. Therefore the users of Canbara don’t need to afraid
about their health of the user of the consumption of Canbara. It consists with t
he vitamin B12 and vitamin B12 is very essential to the people for their day to
day life. Therefore youngsters who need refreshment and who think about their he
alth and the future life, they can use Canbara. It is a smart decision. Therefor
e the youngsters who use Canbara for achieving refreshment they reflect themselv
es as smart youngsters. That is why Canbara gives the priority for the touch val
ue to enter the youth segment.
P a g e | 64
15.2. Steps of Sensory Branding
St ep 01 - Sensor y Audi t
Sensory audit emphasize the current situation of the brand. As a new product dev
elopment “Canbara” is in the introduction stage of a Brand Life cycle (BLC).
Current Le vera ging Sens es
As a new product “Canbara” emphasize its leverage as extra refreshment by vitami
n B12 with the well being. It is the strength they have which can influence to t
he customers over the competitors.
Se nsory Co nsistenc y
Sensory consistency means balancing of the all senses of a brand. The “Canbara”
as a youth segment focus healthier product, it is difficult to promote product o
nly with the well being concept. So we develop the concept smart youngster as a
brand personality. That is why we give priority to the touch. With that we use t
he senses of sight and taste with parallel to the touch to promote the brand. In
here company differentiate the package, shape of chocolate and ingredients. And
also company already crated the music which can easily identify the brand. The
company is not very much concern about the smell due to healthier product.
Se nsory Synergy
The company hopes to get more synergy through touch and sight to the brand “Canb
ara” as a healthier food item.
P a g e | 65
St ep 02 - Brand St aging
Place a P oint Of Differen t (POD)
Within the space of sugar free / low sugar chocolates “Canbara” possesses the un
iqueness that the company promise to the customer. The point of different of “ca
nbara” from other competitive brands is providing “extra refreshment by vitamin
B12”.
Develop Competitive Edg e
The “Canbara” differ from other refreshment product categories by well being. An
d it is unique from other sugar free/low sugar competitive brands by extra refre
sh with vitamin B12. So the “Canbara” has strength over its competitors due to e
xtra refresh by B12 with well being.
Holis tic br anding
The company hopes to combine each and every activity like communication, technol
ogy and research and development in order to success the “Canbara” in the market
.
St ep 03 - Brand Dra mati zati on
Per sonality of the Br and
The younger who buying the chocolate “Canbara”, should be treated as intelligent
, caring and outstanding character within the youth segment. Because “Canbara” g
ives the refreshment, taste and also caring. So the personality of the “Canbara”
express as a “smart youngster”.
Manage the Five Sens es
As a youth segment focus healthier product “Canbara” want to possesses the uniqu
e value. Otherwise it may not be positioned in the market successfully. So we re
flected it as a “smart youngster” and give priority to the sense of touch. And a
s a sweeter product company differentiate it from design, package and colours. S
o the Canbara’s next priority gives to the sense of sight. Though this is a heal
thier product it should be sense of taste. That is why company use the sugar sub
stitute “Maltitol” which gives 90% taste of sugar to the “Canbara”. And also com
pany already crated the music which can easily identify the brand. The company i
s not very much concern about the smell due to healthier product.
P a g e | 66
St ep 04 - Brand Si gnatur e (Ap pendix)
The “Canbara” has its own unique properties which can identify the brand easily
from the competitive brands. Unique Selling proposition - “touch the real sens
e” Colour - Dark brown, white and red Shape of Package – a piece of a chocol
ate Wording – “canbara” ra”
St ep 05 - I mple ment ati on
Develop sens ory touch points
Choco Land Company has already developed unique values to the brand “Canbara” an
d they hope to implement those in following manner in order to success in the ma
rket. The concept of Smart Youngster – the smart youngster is Canbara’s brand
personality. In order to develop that concept company use the youth segment that
follows professional causes like CIMA, CIM in our advertising campaigns to repr
esent it as intelligent decision. Shape of the chocolat package - for attract
the younger to our chocolate chocolate company use the shape of a piece of choco
late.(Appendix) Colours use in the package – use the dark brown colour to repr
esent the chocolate combined with white, red as aggressive colours.(Appendix )
P a g e | 67 Ingredients – in addition to the ingredients in normal sugar free
chocolate company add vitamin B12 in order to give extra refresh to the younger
. Shape of the chocolate – use the bar shape in “Canbara”, because most of are
in the youth segment prefer to that. (Appendix)
St ep 06 - Evalu ati on
In order to evaluate the success of the “Canbara” company hope to implement foll
owings. Marketing Research Test the brand smashing values Test the benchma
rking Test the Loyalty of the brand
P a g e | 68
16. Four “R” Analysis
The sensory development of a brand should have fit to the purpose values. Throug
h this model meaningful justification was done to smash the chocolate product ma
rket.
1. Relevance
Firstly when considering the relevance of the brand, unique selling proposition
(USP) should match with the product context. Here Canbara s U.S.P. is "Touch the
real sense". Canbara promises to the youth that gives the feelings of truth tas
te to their all senses. The youth segment in Sri Lanka had already touched the s
enses of sight, taste, smell and hears with regarding the chocolate. But they do
not touch their heart and brain. It tells no doubt you can enjoy your life with
extra refresh and well being life with the “Canbara”. In that way the USP of th
e “Canbara” really match with the context of “extra refresh with well being.”
2. Real
When comes to the real USP should be really match to the product category. Here
Canbara is belonging to the product category of sugar free chocolate. And normal
ly sugar free chocolate is more health conscious and purchasing decision will be
more intelligent one. Here the USP is "Touch the real sense". It says Canbara a
ddress to the heart and brain of the customer. Therefore we can identify that pr
oduct category of suger free chocolate and the USP is more matching.
3. Recital
Recital is that smashing value should be believable and deliverable things. Here
Canbara is going to smash through extra refreshment and well-being. Then for th
e well-being vitamin B12 is included as an ingredient of the chocolate. Then tro
ugh vitamin B12 that; Formation the red blood cells of body and Maintain ner
ve systems Those are believable.
P a g e | 69
4. Ritual
Ritual is not more applicable for this product because “Canbara” is in new produ
ct development stage and this is new to the market, by having unique strategy th
at is extra his refreshed by B12 “Canbara” going to smash the market. According
to the above “Canbara” can be able to smash the chocolate market very properly.
Because of the USP, product category and customer context all are matching with
each others.
16.1 Brand Equity Pyrami d for “Canba ra”
16.1.1. Sal ienc e (Tast e)
Salience means unique features or basic need level of the brand. As Canbara belo
nging to the space of sugar free chocolate under the scope of refreshment, taste
represents the salience level of its equity pyramid. In here Choco Land Company
target the youth segment, age in between 18 30, for sel 18-30, selling the choc
olate. The research conducted by the Department of Research and development of t
he company proved that the youth segment is not much more health conscious. They
mostly consider about the sweetness or the tasty.
P a g e | 70 Therefore Canbara has been included Maltitol, the substitute for th
e sugar to give the tasty that expected by its target customers. By adding Malti
tol, although Canbara is a sugar free chocolate it can satisfy youngsters throug
h giving 90% of tasty from sugar and then Canbara will be succeeded in the level
of salience by giving tasty which is a unique feature for the chocolate categor
y.
16.1.2. Perfor mance a nd Image ry
P erfor mance (Sugar fr ee, V itamin B12 )
Performance means what are helping to perform the brand well. Canbara is a sugar
free chocolate with Vitamin B12. The free of sugar implies that the chocolate i
s more health conscious and help to minimize the threats of diabetes and other r
elated diseases among youngsters. Vitamin B12 is one of the eight B vitamins and
it is important for the formation of red blood cells and maintains the nerves s
ystem which included the brain and the spinal cord. So Vitamin B12 gives extra e
nergy and help to refresh the youngsters. Therefore value of sugar free and Vita
min B12 help to perform the brand Canbara as a health conscious and refreshed ch
ocolate.
Imager y (Smar t thinking)
To build up the Canbara as a person we decided to develop some brand features to
make image for the customer. Therefore brand development team of the Choco Land
Company has decided to build up a smart thinking person as a brand image in the
consumer’s mind. To do so we are hoping to use the intelligence, smart and well
educated youngsters in our promotional campaigns to promote the brand. When our
target customers see that of those well educated, intelligence and smart guys a
re consuming the Canbara chocolate they will build up the image for the Canbara
users are the youngsters who are thinking and acting smartly.
16.1.3. Judgment s and Feel ings
Judgm ents (Quality)
The third level of the brand equity pyramid starting from the judgments. In here
we consider what kind of judgments made by the others regarding the Canbara use
rs. We want to make that judgment a positive one. Therefore we
P a g e | 71 highlight the high quality of the chocolate. As a sugar free chocol
ate it consists with Vitamin B12 and gives extra refreshment for the human body.
Normally most of the products which are available for the youngsters are consis
ting with alcoholic, and continuous usage is very much harmful for the youngster
s. But we include Vitamin B12 to give the refreshment and there is no any bad ef
fect for the body with the continuous consumptions. As the chocolate is a sugar
free one the consumers have no risk at all in diabetes or other related diseases
. Therefore by highlighting that high quality of the chocolate we want to stimul
ate others to judge the Canbara users as a smart thinking and heath conscious pe
rson.
F eelings (S mart y oungster )
Canbara is visualizing a smart young person. So when consume the Canbara Sugar f
ree chocolate the customer feels that he is a very smart and intelligent young g
uy. The name Canbara symbolize that the qualities of a smart person which are ca
ring, active, nutritional, brilliant, attractive, real and achievable. Therefore
any person who consumes the Canbara chocolate feels that he has such qualities
and then he will become a smart guy. We hope to build up our brand up to this th
ird level with in the first two months through a very effective promotional camp
aign
16.1.4. Re sonance (Touch t he Real Sense)
Resonance means self actualization level. When the brand comes to this level it
will able to touch the real sense of the customers. Normally, in Sri Lanka most
of the chocolate brands have touch the senses of sight, taste, smell and hears o
f the youth segments through attractive colours, alcoholics and chemicals and us
ing sounds, and those are very much harmful to their body and their future life
will be blind. But Canbara addresses to their heart and brain and tells no doubt
you can enjoy your life with extra refresh and well being life with the “Canbar
a”. Therefore finally Canbara users justifies himself and be happy with himself
because he become a healthier and smart youngster.
P a g e | 72
17 . Brand Profile Development
The brand profile contains the complete legend of a brand “Canbara”. When develo
ping a brand profile, there are three main components as Brand Intent, Brand Con
tent and Brand process. Here the Brand Intent and Brand Content could be conside
red as what the Brand “Canbara” promised to give and how the Brand called “Canba
ra” is muscled with what it willing to acquire. Both Brand Intent and Brand Cont
ent can be identified in top end of the Brand Ice Burge whereas the Brand Proces
s comes with bottom perspective of its. At the end of these three streams it sho
uld discussed the performance of the brand.
Brand Profile
A.1: Name and addre ss of com pany: Choco Land Compa ny Pl c. No.21, Ka ndy Road
, Nitt abuwa. A.2: Year of E st abli shm ent of c ompany: 2009 A.3: Siz e of com
pa ny Medium B.1: Nam e of brand: Canba ra choc olat e B.2: Yea r of launc h of
the bra nd into the Sri Lanka n marke t 2009 B.3: Origi n of Brand SriLa nka B.4
: Siz e of brand Medium
17.1. Brand Intent
In order to reflect the brand of “Canbara” it should be positioned as a figured
out entity in a given market place. That is a Brand Intent. Considering the Bran
d Intent of “Canbara” chocolate, it is in market because create value for custom
ers to fulfill the need of refreshment with well being life as well as create va
lue for shareholders to obtain the ultimate objective of company’s corporate str
ategy.
P a g e | 73
17.1.1 Br and Purpose
The brand purpose reflect why “Canbara” existing in the market place as a brand.
The “Canbara” gives the refreshment for the youth as well as healthier life and
other refreshment products harmful to the lives. So if Canbara wipe out through
the market younger have to enjoy their life at a risk.
17.1.2 Br and targe t (B 2 C)
In order to offer the above purpose of refreshment and well being to the market
it should be clearly identified the most valuable proportion of the market which
called as Target market. Among the selected segment of youth company should ide
ntify most valuable segment in order to obtain satisfaction of “canbara” custome
rs. Therefore identify the brand target of “Canbara” it’s needed to identify the
Market Size, Readiness Stage, Expected Benefits and Fundamental Demographic Fea
tures. Market Size: Age between 18-30 years Readiness Stage: At the beginnin
g they may be unaware. The market effort should go into awareness building adver
tising campaign. Expected Benefit: extra refreshment, taste, sugar free conten
t and nutrition Demographic Features: urban and suburban, intelligent and outs
tanding youth
17.1.3 Br and Vi sion
The brand vision of the “canbara” is “Love to see all youngsters are living with
a smile”.
17.1.4 Br and Miss ion
The brand mission of “Canbara” is “introduce sugar free chocolate with extra ref
reshed by vitamin B 12 for youngsters”.
17.1.5 Br and Li fe Cycle
The Brand Life Cycle is to identify the current situation of brand as well as to
define the futuristic position of where the brand should be? According to the p
roduct “Canbara”, it just on its introduction stage because “Canbara” is one of
new product.
P a g e | 74
17.2 Brand Content
Normally Brand Content says that what it’s achieved from a particular Brand name
. Here the brand called “Canbara” is one of Brand which is willing to introduce
sugar free chocolate category. Therefore considering about “canbara” they includ
ed so many things to its Brand Content which help to achieve what the customers
expected from the brand name called “Canbara” in future.
17.2.1 Br and Val ues
The Brand Values comes with the POD (Point of Different) of a brand. Therefore t
he brand value of the “Canbara” can be identified as “extra refreshed by B12 ”.
It is most specified value which offers among the other values of “Canbara”. In
addition to the point of different there are another values possesses by the “Ca
nbara”. Functional value Sugar free content (Maltitol) Taste (90% taste of
sugar) Colours (dark brown, white and red) Packaging (just like a shape of
chocolate) Emotional value Caring Smart youngster
17.2.2 Br and Personal it y
Here the brand can be emphasized as a person. It means the brand “Canbara” has p
erceived by the customer as a living being with some specific characteristics. T
he brand
P a g e | 75 “Canbara” viewed it as a “smart youngster”. Here can identify some
personality features in brand personality framework of “Canbara”. Smart Youngste
r
C aring A ctive N utritional B rilliant A ttractive R eal
Achievable
17.2.3 Br and Ref lect ion
Through the Brand Reflection can understand that how the customers are recognize
d the Brand “Canbara” with its believers (Key Mental Association) Name – “Canb
ara” Metaphors – “Smart Youngster” Marks and Symbol - Colours (Dark brown, w
hite and red ) - Sound Value proposition - “ Touch the real sense”
17.3 Brand Process
The Brand Process comes under the bottom part of the Ice Burge Theory. Most of t
he time the most important things are comes under the Brand Process like continu
ous Research and Development, Technology and Innovations, Strategies of Customer
Relationship management, Know-how Management. Those are the real ground rules o
f existing a brand in market place.
17.3.1 Val ue Proposi ti on
The value proposition is what the company promise to the customer. It should be
develop with comparing to the competitive brands. The unique selling proposition
of “canbara” is “Touch the Real Sense”. Canbara promises to the youth that give
s the feelings of truth taste to their all senses. The youth segment in Sri Lank
a had already touched the senses of sight, taste, smell and hears with
P a g e | 76 regarding the chocolate. But they do not touch their heart and brai
n. It tells no doubt you can enjoy your life with extra refresh and well being l
ife with the “Canbara”. The “Canbara” gives the customer more value for same pri
ce. That reflect Canbara gives extra refreshment by vitamin B12 over the competi
tive brands for the same price.
17.3.2 Cat egory of t he Brand
The company has taken the refreshment as a scope of the brand “canbara. The choc
olate is use for mainly as a tasty item and refreshment. If we take confectionar
y (sweeter products) as a scope it may be narrow down the scope of “canbara”. Bu
t within the scope of refreshment taste items are also including. And within the
scope of refreshment the “canbara” is within the space of sugar free/ low sugar
category.
17.3.3 Poi nt of Di ffer ent
Within the space of sugar free / low sugar chocolates “Canbara” possesses the un
iqueness that the company promise to the customer. The point of different of “ca
nbara” from other competitive brands is providing “extra refreshment by vitamin
B12”. The vitamin B12 is one of the eight B vitamins. It is normally involved in
the metabolism of every cell of the body. It is important for metabolism, the f
ormation of red blood cells and the maintenance of the nerves system, which incl
udes the brain and spinal cord. So that gives extra energy, refresh to the youth
with the well being.
17.3.4 How the POD i s on 3D’ s
Distinctive It says how far it is genuinely differentiated compared to existin
g brands. It means uniqueness of “Canbara” that provide an extra Distinctive.
Defensible The defensive nature of the POD has to justify on product features li
ke technology. Here the company emphasize that they are using sophisticated tech
nology to add the vitamin B12 to the Candara without destroying its core nutriti
onal essence. Deliver able It says all about the mechanism of value delivering
.
P a g e | 77
17.3.5 The r ole of Market ing Mi x wi th Value Pr oposit ion
It is emphasizing that how far the marketing mix is align with the value proposi
tion of the brand “Canbara”. Product Price Place promotion
17.3.6 Br and Reca lli ng Power
To measure the Brand Recalling Power usually take the KMA (Key Mental Associatio
n) values like name marks metaphase and value proposition. Name – “Canbara”
Metaphors – “Smart Youngster” Marks and Symbol - Colours (Dark brown, white an
d red ) - Sound Value proposition - “ Touch the real sense”
17.3.7 Nam ing Str ategy
The Choco Land Company is only having one brand that is called “Canbara”. So the
naming strategy of the brand “Canbara” is individual branding.
17.4 Brand Performance
In order to measure the brand performance company has to figure out the Market S
hare of their Brand “Canbara” as well as the Mind Share of the Brand of “Canbara
”. Here company cannot point out those things in figures the reason for that the
Brand “Canbara” is one of product which is going to introduce. After one year l
ater we can figure out the Market Share and Mind Share of “Canbara”.
P a g e | 78
18. Marketing Mix of “Canb ara” Sugar free Chocolate
When developing a new brand into competitive market, marketing mix is part and p
artial thing in terms of influencing on target customers’ behaviour. These four
P s of marketing mix are the parameters that the marketing manager can control,
subject to the internal and external constrains of the marketing environment. Th
e goal is to make the decisions that centre the four P s on the customers in the
target market in order to create persuade value and generate positive response.
The Choco Land is now in the process of introducing new brand called “Canbara”
sugar free chocolate, which mainly is to focus on youth segment in urban and sub
urban area. In that effort, we have to design major components of the marketing
mix in order to position well in target customers’ mind domain. So, to place a b
rand at the top of the ladder in youngsters mind, we design marketing mix as fol
low.
18.1 Product
This is the sugar free chocolate for the youth segment in order to gain refreshm
ent, energy and healthier life with the taste. So this product plays two way of
balancing tasks. On the one side “Canbara” possesses well being and taste with t
he sugar substitute of Maltitol. On the other side it provides extra refreshment
by vitamin B12.
18.1.1 Br and Nam e
The brand name called “Canbara” possesses the key attributes which represent the
smart youngster.
Caring Active Nutritional Brilliant Attractive Real Achievable
P a g e | 79
18.1.2 Pr oduct Att ribut es
Colour
The Choco Land Company has used mainly three colours in their product called “Ca
nbara”. - Dark brown col our That is the colour which represents the real colour
of the chocolate. - R ed and Whi te Use for the packaging to attract the custom
ers as an aggressive colours.(Appendix)
Siz e
The company plan to introduce the “Canbara” with two sizes. Canbara – 20g Ca
nbara – 45g
Pr oduct quality
According to the research findings most customers are highly concern about the q
uality of the chocolate as a sugar free chocolate. Quality in the sense gains ta
ste, refreshment without any harmful to the body. Choco Land Company Ltd will as
sure that they will provide high quality product to Sri Lankan market with accep
ted industry standards. The Maltitol and the vitamin B12 which are imported unde
r the Import & Export Control under the category of Chemicals, Animal Products &
Agro Products that must be tested by the Sri Lanka Standard Institution and wit
hout the approval of the Director General those goods cannot be sold, attendant
to be sold, consumed and distributed by the importer. The Sri Lanka Standards In
stitution (SLSI) is operating a Compulsory Import Inspection Scheme covering 102
items as per the regulations framed under the Imports and Exports (Control) Act
, No. 1 of 1969 as amended by Act No. 28 of 1987. So that Choco Land (Pvt) Ltd h
as to comply with SLS and the import and export control act which specified to t
he vitamin B12 and the Maltitol. (Appendix) In addition to that Choco Land (pvt)
Ltd expects to get the following quality standards for the product “Canbara”.
HACCP Cert ific ati on (Haz ard Anal ysis and Cri tic al Control Point ) HACCP
is a management system in which food safety is addressed through the analysis an
d control of biological, chemical, and physical hazards from raw material produc
tion,
P a g e | 80 procurement and handling, to manufacturing, distribution and consum
ption of the finished product. For successful implementation of a HACCP plan, ma
nagement must be strongly committed to the HACCP concept. (Appendix)
Shape
There are number of shapes of chocolates are existing in the SriLankan market li
ke slab, bar, fingers, cubes and chocolate balls. And most of chocolates are wit
hin the shape if normal slab shape. According to our research findings more resp
ondents of youngsters are alert on the bar shape that can easy to handle. Theref
ore the shape of the “Canbara” is similar to the bar shape. (Appendix)
Pack aging and Labeling
The packaging and labeling of a product should provide the purchaser/user with s
ufficient information as to the nature, quality and quantity of the goods. This
information can be printed directly on to the primary pack and bulk pack or by m
eans of a label. Each country and Territory has its own Trade Measurement legisl
ation that outlines the information required on packaging, so companies need to
comply with for each place they re going to sell their product. Choco Land Compa
ny has designed two different sizes of package but information provide in an ide
ntical format. Mainly there are three colours used in these packages namely dark
brown, white and red. In each of these packages there are common symbols embedd
ed like brand name, company logo. (Appendix) Common Requirements for Packaging:
1. Country of origin. 2. Ingredients (listed in order of amount). 3. Weight or V
olume. 4. Instructions for use (including safety hazards). 5. Manufacturers name
and address. 6. Retail price 7. Product Name Here normally the requirement is t
o facilitate the following information for a sugar free chocolate; Weight or V
olume Manufacturers/ distributor name and address.
P a g e | 81 Retail price Product Name Bar code Date of manufacturing
Date of expiry Ingredients
18.1.3 Pr oduct i ngredi ents
The basic Ingredients consist of Maltitol, Cocoa butter, Full cream milk powder,
Cocoa mass, Soya lecithin, Vitamin B12, Salt and permitted flavoring.
Maltitol
Maltitol is a sugar alcohol, an ingredient commonly used in low-carb or “sugar-f
ree” products such as candy and nutrition bars. It is used so much because of it
s similarity to sugar in terms of taste, mouth feel, and interaction with other
ingredients. Products which use Maltitol and other sugar alcohols as sweeteners
can be called “sugar free.”(Appendix) Maltitol — 0.9× sweetness (by weight), 1.7
× sweetness (by food energy), 0.525× energy density, E965
Cocoa Butter
The flavorless fat squeezed out during "Dutch processing" which creates powdered
Cocoa. Extra is added to create the texture of the bars. The flavor and texture
can be adjusted this way. More Cocoa Butter means a smoother, creamier, less bi
tter bar. Less Cocoa Butter means a sharper, dryer, more powdery, more flavorful
bar. (Notice that this means that Cocoa Powder is a by-product of making Chocol
ate bars -- or Visa Versa!)
Full c ream milk po wder
Full cream milk powder is a powder obtained by the removal of water only from mi
lk. (Appendix)
Cocoa Mas s
The gooey mass made from crushing, heating and conching the roasted beans. This
makes up 45-70%, (usually just above 50%) of the bar and it is called many diffe
rent things: Cacao Liquor, Cacao Mass, Cacao Paste etc. This paste is 54% Cocoa
Butter.
P a g e | 82
Soya lec ithin
Most bars have a small percentage (tends to be about 1%) of Lecithin as an emuls
ifier. This is a soy product (derived from sunflower as well) that is added to C
acao to control texture & consistency and to improve solubility in cold liquids,
such as milk. It is added to many, but not all, pure Chocolate bars because it
reduces the viscosity, or thickness of Chocolate which slightly reduces the amou
nt of Cocoa Butter required producing a certain texture. It makes it a little sm
oother and creamier.
Vitamin B 12
Vitamin B12 is a water soluble vitamin with a key role in the normal functioning
of the brain and nervous system, and for the formation of blood. It is one of t
he eight B vitamins. It is normally involved in the metabolism of every cell of
the body, especially affecting DNA synthesis and regulation, but also fatty acid
synthesis and energy production. (Appendix)
18.1.4 Nut rit ional Infor mat ion
Sugar free chocolate bar – 34g Amount/serving % DV 12g 18% 8g 40% 0g 0mg 3% 25mg
1% 19g 6% 2g 8% 15g 2g 6%
Total Fat Sat Fat Trans Fat Cholest Sodium Total carb. Dietary Fiber Maltitol Pr
otein Iron
%DV- Percentage of daily values Total carbs. Non Impact Carbs. Net Carbs. 19 -17
2
P a g e | 83
18.1.5 Pr oduct Consume riza tion
Product Consumerization refers how product makes familiar to the customer. Theor
etically the product consumerlization comes after market testing. Here, as Choco
Land Company, offer “Canbara” sugar free chocolate with targeting unique benefi
ts of customers, company required to undertake a test market in order to identif
y whether customers are willing to buy this product or not. Further company requ
ired to measure whether customer value the additional benefit addressed by the p
roduct or not. Under the product commercialization Choco Land Company expect to
familiarize the brand rather product. Here, the company is considering following
key areas in commercialization the brand “Canbara”.
When should the pr oduct be launched?
Choco Land Company has planned to introduce “canbara” sugar free chocolate to th
e Sri Lanka market at the initial stage of month “August”
Wher e should it be launc hed?
Initially company has expected to launch the product only to the local market wh
ich will cover the urban and suburban areas in the country.
Which group should be tar geted?
Mainly “Canbara” will introduce to the youth segment aged 18-30 in Urban and Sub
urban areas.
How it should be launche d?
Within first two months, Company will carry out awareness programme through the
television and news paper advertising in order to create awareness and make fami
liar the brand name “Canbara” to the target market. Finally all these symbols ad
d a value for ray brand as well as it helps to easily position in consumers mind
. All these symbols are closely linked with consumers’ life. Therefore it provid
es a greater advantage of ray brand.
P a g e | 84
18.2. Price
Price is an undoubtedly a significant strategic variable and in many markets, de
spite a growth in the importance of non-price factors, it is still the principal
determinant of consumer choice. Its significance is further emphasized by the f
act that price is the only element of the mix that generates revenues while othe
r produce cost. When formulating pricing policies of a company, following proced
ure should be adhered.
18.2.1. Pr ici ng object ives
In the marketing mix, pricing plays vital role and the fact that price is the on
ly element of the mix that generates revenues while other produce cost. Therefor
e strong pricing objectives is important for market survival of a new company as
Choco Land Company. Further in order to achieve the marketing objectives effect
ively, company should develop strong pricing objectives. The Choco Land Company
mainly emphasizes the “high quality” through their pricing strategy. Choco Land
Company is more vigilant about the quality of the product because of customers’
associates’ low quality with low price. Therefore Choco Land launched “Canbara”
is in high price high quality and the product is given to the same price as the
competitors with high quality.
18.2.2. Analyzi ng t he ext ernal envi ronm ental fa ctors th at affe ct the pri
ci ng decis ion (Lega l and econom ical consi derat ion)
It is very important to analyze how legal and economic environment will affect t
he pricing decisions of the company and it future trends. Pricing is the most im
portant aspect in the marketing, as this will be the only element of the marketi
ng mix that contributes for the company revenue where all other generate costs.
Therefore the Choco Land Company has to consider the future inclination in order
to determine the pricing policies.
Incr eas e of the taxe s.
i . Nat ion Buil ding Ta x (NBT ) According to the current situation in Sri Lank
a, there is a high possibility to increase the Nation Building Tax, to generate
a high income to the government for the process of rehabilitation and restructur
e in North and East provinces. As a result of that prices of the
P a g e | 85 products may be increased in the near future. This tax will be char
ge from the consumers since it is direct tax and it will directly impact to the
prices of the product also.
Years NBT (%)
2009 January 1%
2009 April 3%
ii . Im port Ta xes. According to the current Sri Lankan government policies, th
e local businesses are much more encouraged while discouraging the import busine
sses. That means the government would concentrate to develop and encourage the l
ocal businesses. Therefore, the government may impose a high import tariff to di
scourage the import businesses. It will be directly affected to the Choco Land C
ompany since the company is in the import business of “Maltitol” the sugar free
substitute.
Inflation R ate.
According to the Central Bank of Sri Lanka, there is decrease in inflation rate
from July 2008 up to date. It is predictable that the Inflation rate of the Sri
Lanka in next year will have a declining trend.
Exc hange R ates
Exchange rate of china is slightly affected to the Choco Land Company due to imp
orted items of Maltitol sugar free substitute and vitamin B12. To the date of 10
.08.2009 exchange rate of Yuan is 16.8125.
Influence fro m Chine se economy
There will be a direct impact on the prices of products, since the Choco Land (P
vt) Ltd. directly imports from China and if there is any economic fluctuation, i
t will be directly influenced on our products’ prices. Therefore the company sho
uld more vigilant about the economic changes taking place in the Chinese economy
.
Curr ent e conomic Rec ess ion .
Due to the current world economic recession most of countries were suffering fro
m serious problems such reduction in demand for the company product, reduction i
n production, increase the unemployment level and reduction in disposable income
. Even if the consequences of the recession to the Sri Lankan economy at lower l
evel, company
P a g e | 86 should alert on possible changes, which might occur in the future.
Government will impose so many restrictions as well as rules in order to protect
the local entrepreneurs from the global economic crisis.
18.2.3. Anal yzing t he Co mpeti tor s’ Str ategi es
In order to setting pricing objectives it is important to analyze competitor pri
cing strategies and their policies. Because without a proper knowledge of the co
mpetitors’ pricing strategies, companies cannot reach their pricing objectives i
n order to satisfy company corporate objectives. Generally if we are to price ou
r product, and if we are introducing the product with the same qualities, compan
y should have a knowledge of the current market price of the competitive product
s as we cannot set a higher price than the competitors without promising value a
ddition to the our soap. Therefore, as we are producing a product with same qual
ity and features and different product with unique features, it is preferred the
company to identify the competitive price levels.
Product Kandos Lite (Sugar free chocolate) Kandos Dark(low sugar chocolate) 100
90
Final Selling Price
18.2.4. Pr ici ng str ategy/ Met hods
Choco Land Comapny used competitive based pricing strategy to introduce Canbara.
Therefore the company follows same price with extra refreshment by vitamin b12
(More for same). Here “Canbara” has been priced with a similar price to competit
ors’ price. The reason for adaptation of this strategy is to maintain the compan
y image while adsorbing the market share of the competitors. Even though the “Ca
nbara” sugar free chocolate has been prices similar to the competitor chocolates
, the quality of the soap will be higher than the quality of the competitive pro
ducts.
P a g e | 87
18.3. Distribution
This is the third component of the marketing mix. Distribution also plays a majo
r role in the process of influencing buying behaviour like other component. Havi
ng designed a product & set the price. Company should decide how to deliver the
product to their customers. In here the company has to make sure whether they wo
uld delegate some of its selling to intermediaries or not, here the company may
have some options to deliver product to their customers. a) Direct marketing b)
Use intermediaries (level of channel) c) Give whole authority of distribution to
separate party. As lack of financial resources to carry out direct marketing, s
ometimes-direct marketing would not be feasible; therefore the company should ma
ke correct decision to make the product reached to customers. In here it is esse
ntial to concern the company’s distribution expenditure & customer’s convenience
as well. We should select the distribution channel, which would minimally cost.
Otherwise either “Canbara” has to be sold at a higher price or company has to g
ain losses. As well as, considering about company’s expenditure, the company sho
uld care about customers’ convenience. The Choco Land Company has decided to imp
lement following decisions in the distribution strategy. Distribute only to th
e super markets that Cargills food city, Keells super, Arpico super centre and m
ain super centres and pharmacies. In initial stage company expect to distribut
e the selected district in western, central, southern, north western and sabarag
amuwa provinces. Out of those districts company will distribute the “canbara”
to the selected super markets and pharmacies only. Distribute Weekly for Super
Markets by two packs from 45g and 20g. Distribute twice a month for Pharmacie
s from 45g and 20g.
P a g e | 88
18.3.1. Dis tri buti on Net wor k
Western Province
Colombo District Fort Maharagama Padukka Gampaha District Negombo Gampaha Kaluth
ara District Kaluthara 1 2 3
6
Central Province
Kandy District Kandy Mathale District Mathale NuwaraEliya District NuwaraEliya 1
1 1
3
Southern Province
Galle District Galle Matara District Matara Hambantota District Hambanthota 1 1
1
3
North-western Province
Kurunegala District Kurunegala Puttalam 1 1
2
Sabaragamuwa Province
Rathnapura District Rathnapura Kegalla District Kegalla 1 1
2
P a g e | 89
18.4. Promotion
Promotion is a function of large marketing mix which is most important to reach
defined target customers. On the other word this can be called as marketing comm
unication. Any organization needs marketing communication or promotional campaig
ns to inform, persuade, and remind customers directly or indirectly about the br
ands which organization sells. Promotional campaigns are used to perform many fu
nctions for customers on behalf of firms To develop brand awareness Give com
pany information Give details regarding product in use Promotional mixes consi
st of six major areas. Each and every element are useful for marketers to reach
their target audience but different organizations gives different priorities to
those of element based on their objectives. Elements of promotional mix Advert
ising Sales promotion Events and experience Public relations and publicity
Direct marketing Personal selling The brand “Canbara” still passing introdu
cing stage of its product life cycle therefore company is going to use both push
and pull strategies in order to make and increase brand awareness.
18.4.1. Advert is ing
Advertising is any paid form of non personal presentation and promotions of idea
s, goods or services by an identified sponsor. “Canbara” as a new brand name, it
has to reach the consumers with a high frequency in first few months to create
brand awareness and brand recalling power. Advertising is very important element
in order to reach large geographically dispersed audiences, often with high fre
quency. Though the overall costs are high in Advertising, cost per exposure is l
ow. Not only consumers perceived that the advertised goods as more legitimate. T
herefore it helps to dramatizes company/brand as
P a g e | 90 well as to build brand image. It may stimulate short-term sales thr
ough the Advertising even it is one of impersonal and one-way communication. Her
e the advertising activities will be undertaken in house as; agencies believe th
at, the budget allocated for advertising is not enough as been an infant player
to the market.
18.4. 1.1. A TL Activities
Above the line (ATL) is an advertising technique using mass media to promote bra
nds. Major above-the-line techniques include TV and radio advertising, web and i
nternet banner ads. This type of communication is conventional in nature and is
considered impersonal to customers. It differs from BTL (Below the line), that b
elieves in unconventional brand-building strategies, such as direct mail and pri
nted media (usually involve no motion graphics). The ATL strategy makes use of
current media: television, radio, Outdoor Monitor, and internet.
18.4. 1.2. TV Adv ertis ement
Generally we can see number of advertisements that created for the chocolates. T
hose advertisements address for different customer segments in different ways. T
here are several companies can be seen in the chocolate market of Sri Lanka. Tho
se companies are well established already among Sri Lankan consumers. Therefore
it is not easy to reach to the target group for the new company. As a new begun
company Choco Land company has to make a better awareness throughout the Sri Lan
kan. For that advertisements have to play big role in order to make better aware
ness through aggressive communication. As a new company Choco Land enters to the
market with the chocolate call “Canbara”. Canbara is a sugar free chocolate. It
is introduced for the Sri Lankan youth segment. Target group of the canbara is
youngsters in urban and sub urban area. Normally most of the youngsters are not
conscious on sugar free products. Therefore there is a big challenge to enter to
the youth segment with sugar free chocolate. Chocolate has gained universal acc
eptance as a snack, reward or gift. The habit of chocolate being given as a gift
between loved ones, friends and relatives is widespread In such case we develop
tag line for the Canbara as “Touch the real sense”. Taste is very important buy
ing criteria for the chocolate. Although the Canbara is a sugar free product it
offers real sweetness of the normal chocolate. We try to differentiate from othe
r chocolate in the market by providing extra refreshment to the consumer. And al
so
P a g e | 91 Canbara is help to keep well the health with offering the refreshme
nt to the consumer. It is not harmful to the health as some other products in th
e market that provide the refreshment such as liquor (alcoholic drinks). Therefo
re purchasing of Canbara is a correct decision, because it provides extra refres
hment with well being. Therefore Canbara help to consumer to touch the real sens
e. It reflects the smart youngster who very intelligent. In the Canbara advertis
ement we try to build psychological value as smart youngster. Because youngsters
are willing to show off themselves to the others. So we try to deliver the smar
t youngster psychological value through advertisement in order to reach to the y
oungsters. At the initial stage company has to build strong awareness among the
Sri Lankan youth regarding the Canbara. Hence the advertisement has been develop
ed with the benefits and values that offer to the consumer. The advertisement is
begun with scenery that shows the lecture hall with students and lecturer where
the place is conducting a lecture relating to the personality. The lecturer is
teaching and writing down careness and active on the board. At the same time lec
turer looks at the students with deliberately and he sees one boy who is in the
lecture hall among other students is sitting on the chair without concentrating
to the lesson. He is appearing as boring the lecture, he just like a silly boy.
When the lecturer looks at the class room he notices that boy specially, he gets
upset and say that boy to come and precede the lecture. At this time boy doesn’
t know the things that taught by the lecture, because he doesn’t concentrate on
the lecture. The boy is exiting at once and he stands up. Then he is going towar
ds the board and lecture comes to that boy’s place. While both of them are passi
ng each other, the nice girl in the front row is giving the Canbara chocolate to
the boy. He is taking it and looks at the chocolate to see what it is. He notic
es the name Canbara and eats piece of chocolate. Just with eating of chocolate h
e becomes refresh that visualize through the red line in the Canbara chocolate p
ackage is going around the boy and at the end of that moment appearance of the b
oy is changes. He looks like very handsome and smart. Simply his appearance is s
o attractive. With the refresh mind he goes close to the board and keeps the cho
colate box on the table. There is a pen that use to write on the board is also t
here in the table at the edge of the table. Part of the pen has been come to the
outside and boy hit to that part and pen is going up he catches the pen. He sta
rts to complete the things the lecturer taught. At this time Canbara comes to hi
s mind and he write down some words starting with spellings of the Canbara. Cari
ng and active are already has been wrote down and the boy is writing nutritional
, brilliant,
P a g e | 92 attraction, real and achievable. At the ad it shows that boy starti
ng and finishing the writing. While he is writing like this the other students o
f the lecture room surprise about that boy, because he was very lazy boy before
eating the Canbara. Then lecturer is coming to the board and he looks the Canbar
a chocolate box on the table and he is recalling what boy was writing. He notice
s that by getting together the initials of the each word create the word Canbara
. Then the lecturer knock the shoulder of the boy by implying the boy is well do
ne. At the end of the ad it shows the board appearance is changing and it appear
s as Canbara chocolate. Then by changing the side of the chocolate it shows the
sugar free with vitamin B12 and again comes to the Canbara and by saying touch t
he real sense ad becomes to the end. By such scenario we try to convince the ref
reshment and the smartness of the user. Therefore finally, the brand “Canbara” p
romises that be a smart youngster by touching the real sense. This advertisement
will run from first week of August. This is a very important decision in the pr
omotional plan when considering how to send the correct massage to the correct p
erson through the correct media. According to the media plan we have selected TV
channels; ITN, Sirasa, Derana and Art TV to represent the urban and suburban yo
uth segment.
18.4. 1.3. P res s adver tis ements
Mainly Choco Land Company has selected 3 weekend newspapers addressing both Sinh
ala and Tamil population in urban and suburban area. (Appendix) Lanka deepa
Sunday Times Sunday Observer The press advertisement use to communicate the br
and name to the audience.
18.4. 1.4. Co mp any Jingle
A specific jingle (theme song) has been developed which will used as the back gr
ound music for every audio and video advertisements. This will help “Canbara” br
and to develop unique identity for the advertisements.
P a g e | 93
18.4. 1.5. Co mp any Webs ite
Choco Land has developed the web site for the company with using the technology
that www.chocoland.com. That expresses the company information, values, product
information and the contact information. There is high trend among the youth seg
ment that using the internet for number of purposes. So the web site creates the
value for the Choco Land Company also. Whether it is Brand building or communic
ation plays for a known brand or a new one it is effective if doing the ATL acti
vities in the 1st phase and BTL in the 2nd phase. At some point in time BTL alon
e would help a brand to address to its customers. It may be required or need of
the hour for the brand when it is promoted in low key. BTL activities also inclu
ded in [OUT DOOR] Billboard/Hoardings, STICKERS, BANNERS or any activity that do
esn t cost like the ATL but addresses specific as well as selected mass audience
s in a particular area and sustain for long duration. These days we have seen a
new trend of companies not spending a lot on ATL as it is very expensive. Rather
they are investing on BTL - Below the line activities. These are like giving co
upons, road shows, buzz marketing etc. BTL are very cheap and cost effective and
we will see in future skewness towards BTL as it is cost effective.
18.4. 1.6 BTL A ctivities
The terms "below the line" promotion or communications, refers to forms of non-m
edia communication, even non-media advertising. Below the line promotions are be
coming increasingly important within the communications mix of many companies, n
ot only those involved in FMCG products, but also for industrial goods. Below th
e line sales promotions are short-term incentives, largely aimed at consumers. W
ith the increasing pressure on the marketing team to achieve communication objec
tives more efficiently in a limited budget, there has been a need to find out mo
re effective and cost efficient ways to communicate with the target markets. Thi
s has led to a shift from the regular media based advertising. In other words, b
elow-the-line sales promotion is an immediate or delayed incentive to purchase,
expressed in cash or in kind, and having only a short term or temporary duration
.
P a g e | 94
18.4. 1.7. Pos te r campaign
The Pure Lanka (Pvt.) Ltd wishes to begin their promotional campaign in the th
ird week of July as a teaser campaign. Firstly launch the poster that gives only
the name “Canbara” and not give any Information regarding the brand. Through th
at company expect to develop doubt among the people.(Appendix) Then the first
week of August Company plan to launch another poster that gives the information
regarding the “canbara”. That create the awareness regarding the “Canbara” among
the people.(Appendix)
18.4. 1.8. Bill B oard
Company has designed a bill board and hope to display in selected distribution a
reas. Company provide display materials for super market channels and pharmacies
with decorating name “Canbara” in order to promote the distribution channel and
attract the customers within the super markets.
18.4.2. Events and Publi c relat ions
Company hopes to give some sponsorship for Rugby, Tennis, Badminton national t
ournaments. At the same time we expect to have massive promotions at the restaur
ants and pubs premises. As a social responsible company they have moral obliga
tion to give their commitment to our country. Therefore we have allocated some a
mount of money on CSR activities. So company is going to execute Awareness progr
amme for the youth segment regarding the diabetics within next 12 months.
P a g e | 95
19. Control and E valuation
From time to time company needs to undertake a critical review of goals & effect
iveness of the company brand. The company hopes to evaluate their brand developm
ent plan under 2 steps regarding the Brand “Canbara” 01. after first 6 month 02.
after one year After first 6 month “Canbara” company planned to conduct the res
earch program to measure the brand awareness, brand loyalty and customer satisfa
ction. Using this research the company hopes to identify how far “Canbara” brand
achieve its goals and objectives and what are the weakness of the “Canbara” bra
nd. And also company set this research to get customer ideas to develop the “Can
bara” brand. After evaluate the research company will re create the brand develo
pment plan and conduct it. After one year “Canbara”, company will do big evaluat
ion program to measure the success & identify the weakness.
Consider about goals
What do we want to achieve?
Performance Measurement
What is happening?
Performance diagnosis
Why is it happening?
Corrective actions
What should we do for it?
Firstly management consider about goals & objectives of the “Canbara” brand. And
then management monitors the performance of the brand in a market place. After
that management determines the causes of serious performance deviation. Finally
management takes correct actions to close the gap between goals & performance of
the brand.
P a g e | 96 After one year company hope to do advanced research program and use
its information to conduct a successful control as fallows Purpose of control P
lan control To examine whether the plane result are being achieved Approaches
Mindshare analysis Market analysis Brand loyalty Measurement Sales analysi
s Financial Analysis Efficiency control To evaluate and improve the spending E
fficiency of: Advertising sales promotion sales force distribution Strat
egic Control To examine whether the brand is pursing its best opportunities with
respect to market, product and channels Marketing audit Brand and ethical s
ocial share
efficiency and impact of brand development expenditure
responsibility review
Company wish to conduct a sophisticated financial analysis by using Financial Ra
tios in order to expeditor and result of the brand called “Canbara”.
P a g e | 97
20. Budg et
Budget of CLC (Pvt) Ltd for months of August 2009 to July 2010
Rs. 000 Note s 1 2 3 Aug 2952 1180 1772 -300 3,29 0 -55 0 1873 Sep: 2952 1180 1
772 -300 4,28 0 -55 -25 2888 Oct: 2952 1180 1772 -300 2,25 0 -55 0 Nov: 2952 118
0 1772 -300 2,41 0 -55 0 Dec: 2952 1180 1772 -300 4,48 0 -55 -25 3088 Jan: 2952
1180 1772 -300 3,31 0 -55 0 1893 Feb: 3100 1240 1860 -300 2,92 0 -55 0 1415 Marc
h 3100 -1240 1860 -300 1,750 -55 -25 Apri l 3100 1240 1860 -300 3,28 0 -55 0 17
75 May 3100 1240 1860 -300 3,26 0 -55 0 1755 June 3100 1240 1860 -300 3,42 0 -55
-25 1940 July 3100 -1240 1860 -300 2,270 -55 0
Sales (-) cost of sales Gross Profit (-) admin cost (-) Selling & Dis: cost (-)
Finance cost (-) Miselenious cost
4 5 6
Net Profit
-833
-993
-270
-765
Notes Note no 01 Sales sales for parmacies No of Parmacies Quentity of 20g Choch
olates price of a Chocolate Distributed times for a month sales of 20g chocolate
s for a month No of Parmacies Quentity of 45g Chocholates price of a Chocolate D
istributed times for a month sales of 40g chocolates for a month total sales for
parmacies for a month sales for super markets
50 24 50.00 2 120000.00 50 24 100.00 2 240000.00 360000.00
P a g e | 98 No of super markets Quentity of 20g Chocholates price of a Chocolat
e Distributed times for a month sales of 20g chocolates for a month No of super
markets Quentity of 45g Chocholates price of a Chocolate Distributed times for a
month sales of 40g chocolates for a month total sales for super markets for a m
onth Sales for August to January per month
180 24 50.00 4 864000.00 180 24 100.00 4 1728000.00 2592000.00 2952000.00
Assumption - it is assumed that first six month sales are equel in each months,
all distributed chocoletes are sold in every months. And after first six month s
ales and distribution increased by 5% for each month. Sales for February to July
per month current sales per month 2952000.00 x 5% Arrounded for Note no 02 - Co
st Of Sales - Rs. 000 Opening stock (+) production cost Direct material Direct
Labour Direct Expenses Prod: overheads clossing stock Cost Of Sales August to J
an: per month Cost Of Sales Feb: to July per 600 300 100 180 1180 1180 3100 000.
00
2952000.00 147600.00 3099600.00
P a g e | 99 month Opening stock (+) production cost Direct material Direct Labo
ur Direct Expenses Prod: overheads clossing stock Cost Of Sales Feb: to July per
month 635 317 106 182 1240 1240
Assumption - it is assumed that in each months cost items are equel , all produc
ed chocoletes are distributed in every months. And after first six month cost of
sales increased by 5% for each month. Note no 03 - Administration Cost - Rs.
000 Director s Emoluments Wages Electricity and Phone bills Insurance Dipriciati
on of office equipments Stationary 50 125 40 50 25 10 300
Assumption - it is assumed that cost items are equel in each months for the year
. Note no 04 - Selling & Distribution Cost - Rs. 000
Auges t promotion media poster & Bill Boards Events & experience CSR activities
research & dev: Distribution cost commision wages fuel vehicle dipriciation othe
r refundable ex: 3,000 80 20 90 50 40 10 3,290 4,00 0 70 20 90 50 40 10 4,28 0 2
,00 0 40 20 90 50 40 10 2,25 0 2,00 0 50 150 20 90 50 40 10 2,41 0 4,00 0 70 200
20 90 50 40 10 4,48 0 3,00 0 50 50 20 90 50 40 10 3,31 0 2,50 0 60 150 20 90 50
40 10 2,92 0 1,500 40 20 90 50 40 10 1,750 3,00 0 70 20 90 50 40 10 3,28 0 3,00
0 50 20 90 50 40 10 3,26 0 3,00 0 60 150 20 90 50 40 10 3,42 0 2,00 0 60 Sep: O
ct: Nov: Dec: Jan: Feb: Marc h April May June July
20 90 50 40 10 2,27 0
P a g e | 100
Note no 05 - Finance Cost - Rs. 000 Interest Bank Charges 35 20 55
Assumption - it is assumed that cost items are equel in each months for the year
. Note no 06 - miselanious Cost - Rs. 000 Exchange rate fluctuations 25 25
Assumption - it is assumed that September, December, march and june imported mat
erials are imported. Then only for those months exchange rate fluctuations are c
onsidered.
P a g e | 101
21. Appendix
21.1. Customer Behavior Audit
01. Do you eat Chocolate? Yes 02. Why do you eat/ buy chocolate? As a habit (jus
t for eat) For refreshment When someone gives 03. How often do you consume/ buy
chocolate? Daily Monthly Weekly Rarely (when need) as a present when seen in the
shops No
04. What are the factors consider when you are buying chocolate? Price Ingredien
ts Shape Expiry date 05. Which prices of chocolate are you normally buy? 5-10 50
-100 300-500 Not price concern 06. What is the shape do you prefer to buy? Slab
Chocolate Balls Pebbles Not concern the shape 07. Are you concern about the heal
th, when you are buying such a sweeter item? Bar Fingers Cubes 10-50 100-300 >50
0 Taste Brand name Package Size
P a g e | 102 Yes No
08. i) Do you aware about the low sugar/ sugar free products? Yes ii) If yes, wh
at are they? Biscuit Ice Cream Jam 09. i) Do you aware about the sugar free choc
olate? Aware and consume Aware and not consume Not aware ii) If you aware, throu
gh what sources do you know it? When seen in the shops News papers Word of mouth
Through doctors Chocolate Soft drink Yogurt No
10. i) If you consume low sugar/ sugar free chocolate, what is the reason? For a
healthy life For a change For test ii) Do you continue it? Yes No
11. If you aware about the low sugar chocolate, what is the reason for not consu
me it? High price Unavailability Not health conscious 12. What are things you ex
pect from a sugar free / low sugar chocolate? ………………………………………………………………………………………
……………………………………………………………………………………… .……………………………………………………………………………………...
P a g e | 103
21.2. Inflation
Infl ati on in 2008
Month Rate Jan 20.8 Feb 21.6 Mar 23.8 Apr 25 May 26.2 Jun 28.2 Jul 26.6 Aug 24.9
Sep 24.3 oct 20.2 Nov 16.3 Dec 14.4
Infl ati on targ et
P a g e | 104
21.3. HACCP (Ha zard Analysis and Critical Control Point) For Food Safety Assura
nce
Food safety assurance is another arena where SLSI provides certification service
s to the industry and commerce. A certificate holder develops and maintains its
food safety assurance programme based on the internationally accepted principles
of ISO 22000 and SLS 1266. Both Schemes are accredited by RvA, Th e Netherlands
, which is one of the world The renowned Accreditation Bodies. Thus the certific
ates issued under this scheme are recognized all over the world Having obtained
HACCP certificate from the SLSI implies that chemical, physical and biological h
azards encountered during production or processing of the food item, as applicab
le to the scope of certification are controlled to make the food safe for human
consumption.
Fee s
01. Pr e C ertification F ees Brochure Application processing Stage I Audit fee
LKR 1 000/LKR 12 500/LKR 6 000/- per day / A Assessor
(The number of days and the number of auditors attending to the audit will be ba
sed on the size of the Organization) Annual Registration Stage II Audit fee Annu
al Regis t ra tion SLS 1266:2005 (HACCP) ISO 22000:2005 (FSMS) LKR 60 000/LKR 60
000/LKR 50 000/LKR 6 000/- per day / assessor
P a g e | 105 Re-Assessm ent Bi - Annual Surveillance LKR 6 000/- per day / asse
ssor Free of Charge
02. Pos t Ce rtification Fe es
Annual Regist ra tion Type of Certificate Certificates with Accreditation Mark C
ertificates without Accreditation mark ANNUAL FEE ( LKR) 80 000/= 60 000/=
Transport and accommodation for Auditors shall be provided by the client. 15% VA
T will be added to all payments. A 10% concession from the annual fee will be gi
ven to each additional certification obtained from SLSI. If the number of produc
ts manufactured at a facility exceeds ten(10) an additional amount of LKR 10 000
/- will be charged.
03. Pr ocedure to obta in cer tific ation
Subm it t he dul y fil led a ppli cat ion Doc ument adequac y audi t SLSI Report
/ im proveme nt Fi nal Audit SLSI Report / im proveme nt HACCP Cert ific ati on
Awarded Survei lla nce Post -Certi fica tion proc edure Annua l Regi st rati on
P a g e | 106
21.4. Product “Ca nbara”
P a g e | 107
21.5. Maltitol
21.5.1. Malt it ol Pow der
21.5.2. Pr oduct det ail s
Purity- 98% Place of origin- Shandong China Brand name- Qianshou
21.5.3. Pay ment a nd shippi ng ter ms
Minimum order quantity 5 ton quantity Packaging details- 25kg/bag, with mutur
al packing Delivery time- within 15 days to diliever the goods after receiving
the deposit. Payment terms- L/C, T/T Supply ability- 1000 ton per month
21.5.4. Supp lier inf ormat ion
Company Name- Shandong Bailong Chuangyuan Bio Tech Co., Ltd. Bio-Tech Busine
ss Type- Manufactur Trading Company Manufacturer, Product/Service- Maltitol, i
sooligosaccharide 900 powder,glucosidase maltitol,glucosidase isomaltitol,isooli
gosaccharide 500 powder, Maltose, Xylitol Registered Address Dexin Street, Hig
h New Technology Development Zone, AddressYucheng, Shandong, China Zip: 251200
Number of Employees 101 - 500 People Employees Company Website URL http://www.
sdblcy.com URL-
P a g e | 108
21.6. Vitamin B12 12
21.6.1. Vit ami n B 12; Pow der
Brand name- www.Eonwin.com Eonwin.com Purity- 98% Place of origin- shanghai chin
a CAS No- 68-19-9 Model No- VN Payment terms- L/C, T/Y, western union Minimum or
der quantity- 100 gram Supply ability- 15 ton per quarter Package- 20KG/ Carton
25kg/drum Delivery time- within 2 weeks after payment
21.6.2. Supp lier Infor mat ion
Company name- Shanghai Honghao Chemicals Co.,Ltd Business Type- Manufacturer
, Trading Company, Agent, Association, Business Service (Transportation, finance
, travel, Ads, etc) Product/Service- Plant extract, herb extract, cosmetic ing
redients,medicine,pharmaceuticals,food additives and preservatives , Lycopene oi
l, Lutein, ASCORBIC ACID, Resveratrol Registered Address Room 592, Building 6,
No.613, Eshan Road, Pudong New AddressArea, Shanghai, China Zip: 200127 Brand
s- www.eonwin. www.eonwin.com Number of Employees 101 - 500 People Employees
Company Website URL http://www.eonwin.com URL-
21.7. Full cream Powder
Supplier information Company Name- Qingdao Full Power Import & Export Co., Ltd
P a g e | 109
21.8. Distribution Plan Distributers Information
Province 1 Western District Colombo Gampaha Kalutara Vehicle 3 2 1 Distriutors 3
2 1 Foodcity 48 21 8 Keels Super 25 10 5 Super Centers 10 5 5 Arpico Super 6 3
0 Pharmacies 20 8 5 109 47 23 2 Central Kandy Matale Nuwara Eliya 1 1 1 1 1 1 2
1 1 1 0 1 2 1 1 1 0 0 5 1 1 11 3 4 3 Southern Galle Matara Hambantota 1 1 1 1 1
1 1 1 1 1 0 0 1 1 1 0 0 0 1 1 1 4 3 3 4 North Western Kurunegala Puththalam 1 1
1 1 1 1 1 1 1 1 0 0 2 1 5 4 5 Sabaragamuwa Ratnapura Kegalle 1 1 16 1 1 16 2 2 9
1 1 1 47 2 2 33 0 0 10 2 2 50 7 7 230
P a g e | 110
Central Province kaluthara Awissawella Kaluthara Aththadiya Aluthgama Bandaragam
a Beruwala Bokundara Panadura Panadura 2 Kandy Mathale Nuwaraeliya Gampola
Western Province Colombo Gampaha Athrugiriya Maharagama Airport Baththaramulla M
aharagama 2 Delgoda Boralesgamuwa Majestic city Gampaha Darga town Malabe J- ela
Dehiwala Malabe 2 Kadana Delkanda Maradana Kadawatha Dematagoda Mattakuliya Kad
awatha Dikmons road Moratuwa kadawatha 2 Fort Mount Lavinia Karagampitiya Grand
Pass Nawala Kelaniya Homagam,a Nugegoda Kiribathgoda Horana Palawaththa Mihiriga
ma Kaduwela Pannipitiya Minuwangoda Kasbawa Park road Negombo Katubadha Pepiliya
na Negombo 2 katukurunda Piliyandala Nittabuwa Kochchikade Pita kotte Peliyagoda
Kohuwala Rajagiriya Ragama Kohuwala 2 Rathmalana Seeduwa Sentra Kollonnawa Mora
tuwa Waththala Kollupitiya Staples street Weliweriya Koswaththa Thibirigasyaya K
otahene Wallawtha Kottawa Wijayarama
Southern Galle Mathara Hambanthota
North West Kurunagala Wennappuwa
Sabaragamuwa Rathnapura kegalle Mawanella Aheliyagoda
P a g e | 111
21.9. TV Advertisement (Story Board)
P a g e | 112
21.10. Press Advertisement
P a g e | 113
21.11. Website
P a g e | 114
21.12. Teaser Campaign
P a g e | 115
21.13. Poster Campa ign
P a g e | 116
21.14. Bill Boards
P a g e | 117
Thanks You