May 29, 2010 [ ]

OPTION 2

INTERNATIONAL MARKETING

Professional Certificate in Marketing (Level 4)Stakeholder MarketingJune 2010CIM Membership NO: 13496641

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Index Page

1.0Aim of the assignment 04

1.1Structure of the assignment 04

2.0International marketing 05

2.1Deciding how to enter the international marketing 06

3.0 Summary of audits 07

3.1Current marketing mix 08

4.0justification of choice 09

4.1Country identification 09

4.2Product or brand justification 09

4.3Important of international marketing for Ceylon chocolate limited 09

5.0 Relationship marketing 10

5.1Benefits of relationship marketing 10

6.0 Communication approaches with stakeholders 10

6.1Challenges of international stakeholder communication 11

7.0 Standardization and adaptation 12

8.0Competitive advantage 13

8.1Choosing the right competitive advantage 13

9.0. Extended marketing mix for competitive advantage 14

10.0. Recommendation for creating budget 18

11.0. Measuring the success of marketing mix 20

12.0. Conclusion 22

13.0.Bibilography 22

14.0. Appendix

14.1Organization background 23

14.2Key stakeholder identification 26

14. 3Influence and impact matrix 27

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14.4Country background 28

Content of table Page

Table No 1 Country justifications 06

Table No 2 Recommendation for creating Budged 18

Table No3 stakeholder analysis 26

Content of Figure

Figure No 1 Market entry strategies 08

Figure No2 product life cycle 09

Figure No 3 Five international product and promotion strategies 12

Figure No 4 Distribution channel for competitive advantage 16

Figure No 5 Strategies for measuring the marketing mix 21

Abbreviation

CCL Ceylon chocolate limited

HACCP Hazard Analysis and Critical Control Point

(For food safety assurance)

Word count 3385(core content chapter 2 –chapter 12)

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1.0 Aim of the assignment

The aim of this assignment is to introduce International marketing Program, which are

discussed in today’s academic environment. Paper will include the recommendations about

who are the stakeholders and how the each stakeholders will influence and impact on

international market entry , and also include recommendations for maintaining relationship

with stakeholders , budgeting , product standardize, extended marketing mix development for

international market, and measuring the success of the market mix. Core aim of this proposal

is to enhance the decision making of the Ceylon Chocolate limited in the international market

entry.

1.1 Structure of The Assignment

Over all content of this assignment is to analyze Ceylon Chocolate Limited’s international

market entry and how the stake holders are going to be play role in this. Assignment will first

describe about importance of the international marketing to CCL’s, second chapter will be

Description of international marketing, next chapter describe summery of audit, next chapter

describe justification of choice, , next describe relationship marketing, next chapter describe

communication approach with stake holders, next chapter about standardization

&adaptation, next chapter about competitive advantage& extended marketing mix, next

chapter Recommendation for creating budget ,last chapter about measuring the marketing

mix success.

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2.0 International Marketing

International marketing is the performance of business activities designed to plane, price,

promote, and direct the flow of company’s goods and services to consumers or users in more

than one nation for a profit.

The process of evaluating candidate for a foreign market entry can be divided into four stages

Stage-1 Country identification

In this stage the candidate countries are identified and listed. In principal the company can

start with most of the world’s more than 200 countries, but most often the list include amore

limited set of alternatives .Typically the company decide to enter a particular trade area.

Stage-2 Preliminary Screening

After the candidate countries have been identified in this stage begin. This involves rating the

identified countries on macro level indicators. The idea is to weed out countries from

consideration. In this stage ,anticipated cost of entering market should be broadly assessed, to

match financial and other resource constraints.

Stage-3 In-depth Screening

In this stage is the core of the attractiveness evolution. This stage involves assessing market

potential and actual market size, market growth rate, strength& weaknesses of existing and

potential competition, and height of entry barriers, including tariffs and quotas.

Stage -4 Final selection

In this stage, company objective are brought to bear for a match and forecasted revenues and

cost are compared to find the country market which best leverages the resources available.

The firm’s objectives in contemplating foreign entry can be used to assign importance weight

to the various criteria, such as costs, to get weighted sum across the criteria. The process

leads to ranking of the countries from highest to lowest attractiveness for the firm.

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2.1 Deciding How to Enter the International Market

Once a company has decide to sell in a foreign country, it must determine the best mode of

entry. Its choices are exporting, joint venturing, and direct investment.fig-1 shows three

market entry strategies, along with the option each one offer. As the figure shows, each

succeeding strategy involve more commitment and risk, but also more control and potential

profits.

Exporting

Entering the foreign market by selling goods produced in the company’s home country, often

with little modification

Joint venturing

Entering the foreign market by joining with foreign companies to produce or market a

produce or service. There are four type of join ventures; licensing, contract manufacturing,

contracting and joint ownership.

Direct Investment

Entering a foreign market by developing foreign-based assembly or manufacturing facilities

(Fig-1)

A CCL normally gets into international marketing by simply shipping out is goods. If its

international sales expand, the CCL organizes an export department with a sales manager and

few assistants. as sales increase, the export department can expand to include various

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Exporting

IndirectDirect

Jointventuring

licencingContract manufacturingManagement contractingjoint ownership

Direct investment

Assemply facilitiesManufacturing facilities

Amount of commitment, risk, control and profit potential

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marketing services so that it can actively go after business. If the CCL moves into joint

ventures or direct investment, the export department will no longer be adequate. A company

may export to one country. License to another, have a joint owner ship venture in a third, and

own a subsidiary in a forth. Sooner a later it will create international divisions or subsidiaries

to handle all its international activity.

3.0 Summary of audit

3.1 Suitability of the current Marketing mix

Kandos is the favorite chocolate brands is the brand child of Ceylon chocolate limited.

Established in 1962.Ceylon chocolate limited doing its business with an excellent marketing

mix in Srilanka, marketing mix of the made it as more competitive in the Sri Lanka market.

Entering like as Nepal requiring assessment of market mix suitability because it different

from the current market of the firm

The Sri Lankan chocolate market has been dominated by many local players. But Kandos is

the undisputed market leader, enjoying a 56% market share.

Chocolate is also a popular impulse item, where purchasing is influenced by visibility in

stores and by packaging. Kandos, from its inception, was positioned as a premium chocolate

made from high-quality ingredients. It is a household brand that is synonymous with sharing,

affection, love and caring. Its product range covers all possible demographic and

psychographic segments. Kandos presently boasts 52 product lines, from chocolate bars,

slabs, gift packs and centre fills, to cooking chocolates and cocoa powder. The most popular

are milk, orange-flavored variants, cashew and other nutty chocolates. Kandos Classic, the

latest addition to the Kandos range of slabs, has performed beyond expectations. Its two

variants, Regular – with milk chocolate and rice crispies – and Vanilla – with milk chocolate,

rice crispies and a new vanilla flavor – have now become firm favorites among young adults

who constitute its primary target market.

This has been established through a cohesive, consistent and coherent strategic advertising

and promotional effort. A recent promotion involved the inauguration of a scholarship fund –

the Kandos Reach-Out Educational Fund – to help 1,000 destitute children with their school

education.

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Funds for this purpose are generated through a special chocolate called Kandos Reach-Out.

Every Reach-Out product sold contributes a sum ranging from Rs. 2.50 to Rs. 25 to this fund.

It has also been a sponsor of high-quality media programs, especially concentrating on

children and the family: for example, by sponsoring TV, radio programs such as Knight

Rider, Advertisement for children newspaper such as vijay.

CCL can improve the market promotions which are more suitable in the Nepal market, other

than common mass medias CCL’s can do the promotions using social networks (face book,

twitter), search engine advertisements (internet penetration rate is high), using opinion

leaders to attract more customers in an effective way.

Distribution channel of the Kandos in the Sri Lanka market are all retail shop, supermarket

pharmacies so forth

Kandos price range is very wide. Available price are From Rs10 up to Rs250

4.0Justification of choice

4.1 Product justification

Kandos Sri Lanka’s favorite chocolate brands is the brand child of Ceylon chocolate ltd.

Kandos has maintained a clear market leader status in Sri Lanka throughout its 44 years in

existence. Currently its market share is 54%. It has thus become the benchmark for

chocolates in Sri Lanka. 95% of Sri Lanka cocoa beans are used in the manufacturing process

of premium Kandos chocolate.

4.2 Country Justification

India China USA NepalPositive justification Chocolate Market attractiveness

04 05 09 09

Resource availability 08 08 03 04Political stability 03 02 08 07Relationship with country

05 06 07 09

positive total points(PTP)

20 21 27 29

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Negative justificationRegulations 03 04 09 07Tax rate 04 07 09 05competitors) 09 07 07 06negative total points(NTP)

16 18 25 18

PTP-NTP 04 03 02 09

Above the table was prepared by secondary data such as country economy data, easy doing

business index etc.

4.3 Important to International marketing for Ceylon Chocolate Limited

Every brand or the organization try to increase its profit earning capacity by using various

strategies, one of the most practicable and profitable strategy is market development as well

as going international, kandos having 56% market share in Srilankan chocolate industry by

entering the Nepal market they can increase their market share more than this, operating in

more than one country will give some more benefits to the CCL for example if CCL’s face

any problems in one country (like economic nature disasters, political problem ) by operating

in more than one country CCL’s can reduce recession, their risk in business, increase in

customer base will lead to increase the profit. In Srilanka Ceylon Chocolate limited operating

in a highly fragmented industry and firm in a maturity stage in the business to extend the life

cycle this international marketing will be help full.

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(Table no.1)

Profit

Sale

CCL current market stage(maturity)

(Fig-2)

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5.0 Relationship Marketing

Relationship marketing is a process of Creating, Building up long term relationship with

Customer, Distributers and suppliers.

Relation ship marketing has the following drivers

1.Retaining stakeholder is cheaper than recruiting new one

2.stakeholder defection is damaging to the company

3.stakeholder loyalty leads to long term stability and growth

4.Technilogical advances allow firms to keep much more detailed information about

customer, and enable marketers to determine customer needs more effectively

5.stakeholder judged on their lifetime value

5.1.Benefit of Relationship marketing

1.Cost acquisition occurs only at the beginning of the relationship ,so longer the relationship,

lower the amortized cost.

2.Long term stakeholder tend to be less inclined to switch and also tend to be less price/ profit

sensitive

3.Long term stakeholder may initiate free word of mouth, promotion and referrals

4.The method is an integrated approach to marketing service and quality. therefore it provide a better basis for achieving competitive advantage

5.Happier stakeholder may lead to happier owner

6.0 Communication Approaches with stakeholders

Having a communication plan in place is an essential component for good marketing.

Communication is often a very effective way to solve problems, deal with risks, and ensure

that tasks are completed on time. Successful communication plans will identify stakeholders,

the information to be communicated, and how this information will be communicated.

Develop our communication plan by asking the suitable question

Who are the stakeholders involved? Creditors, employees, customers, and shareholder

often show up on stakeholder lists.

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What details must be communicated to each group? Depending on stakeholders’ level

of involvement,

When must a marketing team communicate to each group of stakeholders? Some

stakeholders require daily attention, while others may only need passive

communication every few months

Where will stakeholders receive their communication? Although it may seem easy to

push information through a single channel, such as e-mail, stakeholders often require

communication in a variety of media. According to business experts, successful

market teams provide many different ways for stakeholders to enjoy updates, from

printed newsletters to urgent text messages.

How will market team members communicate with stakeholders? a Market

communications coordinator may gain the responsibility of moving key information

across all channels. In other cases, the project manager may retain the oversight of

communication through multiple team members.

Having answered these basic questions, project management professionals can start to build

workflows, schedules, and monitor strategies for an effective stakeholder communication

plan. Without strong information flow, projects can wither and die, especially in large,

competitive organizations.

6.1Challenges of International Stakeholder Communication

1. Arguments for adaptation-More effective marketing, Difference in local audience

2. Arguments for standardization-Economic of sale, consumer mobility, reduced risk

3. Cultural and linguistic differences

Language barriers

Cultural difference-religious values, time values, business norms and customs,

negotiating and decision making styles gender role, status differences, team working

4. Infrastructure difference-Technology, Time zone, Media, Transport infrastructure

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7.0 Standardization & Adaptations

We must decide how much to standardize or adapt kandos for world market. Standardization

helps a kandos to develop a consistent worldwide image .It also lower manufacturing costs

and eliminate duplication of research and development, advertising and product design

efforts. On the other hand consumers around the Nepal differ in their cultures, attitude, and

buying behavior. And markets vary in their economic condition, legal requirement and

physical environments. CCL must usually respond to these differences by adapting their

product offerings.

Standardized marketing mix

An international marketing Strategy for using basically the same product, advertising,

distribution channel, and other element of the marketing mix in all the company’s

international markets.

Adapted marketing mix

An international marketing strategy for adjusting the marketing mixed element to each

international target market, bearing more costs but hoping for a larger market share and

return.

(Fig-3)

Five strategies allow for adapting product and promotion to the Nepal market(see fig-3).In

product level CCL decide to do straight extension, product adaptation, & product invention,

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3.Product adaptation

4.Dual adaptation

5.Product invention

Don’t change product

Adapt Product adaptation

1.Straight extension

2.Communication adaptation

Don’t change promotion

Adapt Communication

Product

Promotion

Develop new product

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because most of the Indian people have obesity& diabetic problem. Therefore according to

product adaptation have to make low calorie chocolate, According to product invention have

to make sugar free chocolate.

CCL can either adopt the same promotion strategy they used in the home market or change it

for each local market. Consider advertising message, some small changes might be required

to adjust for language and miner cultural differences.

8.0 Competitive Advantage

An advantage over competitors gained by offering consumers greater value, either through

lower prices or by providing more benefits that justify higher prices.

To build profitable relationship with target customer, marketers must understand customer

need better than competitors do and deliver more value. To the extent that a company can

position itself as providing superior value, it gains competitive advantage. But solid position

cannot to build on empty promises .If a company position is product as offering the best

quality, it must then deliver the promised quality. Thus positioning begin with actually

differentiating the company’s marketing offer so that it will give consumer superior value.

8.1 Choosing the Right competitive advantages

Suppose CCL is fortunate enough to discover several potential competitive advantages. It

now must choose the ones on which it will build its positioning strategy. It must decide how

many differences to promote and which ones.

How many Differences to promote

The kandos should position on more than one differentiator. This may be necessary if two or

more firms are claiming to be best on the same attribute. Today, in a time when the mass

market is fragmenting into many small segments, kandos are trying to broaden their

positioning strategies to appeal to more segment.

Which Difference to promote

Each difference has the potential to create kandos cost as well as customer benefits. therefore.

the kandos must carefully select the ways in which it will distinguish itself from

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competitors.a difference is worth establishing to the extent that it satisfies the following

criteria

Important:-The difference delivers a highly valued benefit to target buyers.

Distinctive:-Competitors do not offer the difference or the kandos can offer it in a

more distinctive way.

Superior:-The difference is superior to other way that customer might obtain the same

benefit

Communicable:-The difference is communicable and visible to buyers

Preemptive:-Competitor cannot easily copy the difference.

Affordable:-Buyers can afford to pay for the difference.

Profitable:-The kandos can introduce the difference profitability

9. Extended Marketing mix for competitive Advantage

Product

Brand Name– Kandos

Product Color-white ,Brown

Product Range

Chocolate bar

Safari-10g, 22g packs,5 different shapes of jungle animal

Milk chocolate Original-20g,30g,50g packs with orange vanilla flavors

Caju Crunch-22g,40g, 60g packs

Krispies

Chocolate beans-15g sachet and25g pencil shaped tube

Go nuts-23g pouch,40g,150g packs

Cooking chocolate -440g pack,1-9kg bulk pack

Chunky chocolate -240g pack

Gift pack-175g pack

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Low calorie-110g, 50g pack

Sugar Free-22g,40g, 110g pack

Product Quality -HACCP, certify

Packaging and Labeling- The packaging and labeling of a product should provide the

purchaser/user with sufficient information as to the nature, quality and quantity of the

goods. Delivers consistent and good quality products. Package color is white, red,

blue(Nepal flag color)

Price

The Kandos mainly emphasizes the “high quality” through their pricing strategy. kandos is

more vigilant about the quality of the product because of customers’ associates’ low quality

with low price. Therefore CCL launched “Kandos” is in high price high quality and the

product is given to the same price as the competitors with high quality

Price are mainly depend on cost of the shipment of good, Transportation cost, Handling

expenses( such as pier charges, wharf age fees, loading and unloading charges)Insurance

cost, Import taxes and value added taxes, wholesale and retail markups and

discounts ,company’s cross margins Retail price etc.

Methods of payments are

Cash in advance

Open account

Consignment sales

Sight, time, or date draft

Letters of credit

Above payment methods are used in Nepal market. Therefore CCL will be adapted in above

payment method.

Promotion

Any organization needs marketing communication or promotional campaigns to inform,

persuade, and remind customers directly or indirectly about the brands which organization

sells. Kados promotion Objectives are

To develop brand awareness

Give company information

Give details regarding product in use

Elements of promotional mix

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Advertising

Sales promotion

Events and experience

Public relations and publicity

Direct marketing

Personal selling

Adverting medias are Television , Radio, Company jingle, Poster campaign, Bill board

Public relation ship are sponsorship for the sports, scholarship fund, CSR activities etc

Place

Distribution also plays a major role in the process of influencing buying behavior like other

component. Having 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

would 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, sometimes-direct marketing

would not be feasible; therefore the company should make correct decision to make the

product reached to customers

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CCL CCL CCL

BUSINESS CONSUMER

BUSINESS CONSUMER

BUSINESS CONSUMER

BUISINESS DISTRIBYTER

BUISINESS DISTRIBYTER

MANUFACTURER’S REPRESENTATIVE OR SALES BRANCH

(Fig-4)

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People

All people that are directly or indirectly involved in the consumption of a service are an important part of the Extended Marketing Mix. CCL people must be:

Prompt,

Efficient,

Courteous,

Personal,

Relevant.

Because competitor’s people are like that.

Process

Procedure, mechanisms and flow of activities by which services are consumed (customer

management processes) are an essential element of the marketing strategy. Look first at CCL

internal customer service processes. The costs involved are minimal but can have far-

reaching effects. So ensure CCL business:

is easy to work with,

communicates effectively with staff and customers,

delivers consistent and good quality products and services,

pleases people with its style of customer care.

Physical Evidence

The ability and environment in which the service is delivered. Both tangible goods that help

to communicate and perform the service, and the intangible experience of existing customers

and the ability of the business to relay that customer satisfaction to potential customers.

Image is involved in every aspect of your business, including:

business cards and stationery,

CCL front door and reception,

the way staff dress and behave,

advertising and marketing materials,

correspondence and administrative systems.

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10.0 Recommendation for creating budget

A budget is a money plan. With it, you can organize and control your financial resources, set

and realize goals, and decide in advance how your money will work for you. A budget can be

as simple as it is powerful.

The basic idea behind budgeting is to save money up front for both known and unknown

expenses.

Project Task Labor

Hour

Labor

Cost

Material

Cost

Travel

Cost

Other

Cost

Total per Task

1.0 Project Design 0 0 0 0 0 0

1.1 Develop Functional Specifications

0 0 0 0 0 0

1.2 Develop System Architecture

0 0 0 0 0 0

1.3 Develop Preliminary Design Specification

0 0 0 0 0 0

1.3 Develop Detailed Design Specifications

0 0 0 0 0 0

1.4 Develop Acceptance Test Plan

0 0 0 0 0 0

2.0 Advertising 0 0 0 0 0 0

2.1 TV advertising 0 0 0 0 0 0

2.2 Radio advertising 0 0 0 0 0 0

2.3 Newspaper advertising 0 0 0 0 0 0

2.4 Poster printing 0 0 0 0 0 0

3.0 Fixture& fitting 0 0 0 0 0 0

4.0 Website development &testing

0 0 0 0 0 0

5.0 Sales promotion 0 0 0 0 0 0

6.0 Office &space 0 0 0 0 0 0

7.0 Public relation 0 0 0 0 0 0

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Project Task Labor

Hour

Labor

Cost

Material

Cost

Travel

Cost

Other

Cost

Total per Task

8.0 Archive Materials 0 0 0 0 0 0

9.0 Project Management 0 0 0 0 0 0

9.1 Manager 0 0 0 0 0 0

9.2 Regional Manager 0 0 0 0 0 0

9.3 Marketing manager 0 0 0 0 0 0

9.4 Research project manager 0 0 0 0 0 0

9.5 District manager 0 0 0 0 0 0

10. Senior accountant 0 0 0 0 0 0

Other: 0 0 0 0 0 0

0 0 0 0 0 0

Sub-Totals: 0 0 0 0 0 0

Risk (Contingency) 0 $0.00 0 0 0 0

TOTAL (scheduled) 0 0 0 0 0 $0.00

Comments:

11.0 Measuring the success of marketing mixMeasuring the success of marketing mix is not easy. Because much of what marketers do is

concerned with establishing specific attitude in consumers mind, or with creating an image

for a product, the difficulties inherent in assessing intangibles often result in no accurate

assessment being undertaking.

Factor involved in measurement are as follow

1.Monitoring sales volume

2. Monitoring customers complaints

3.Monitering supplier performance

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4.Monitoring shareholder loyalty

5.Tracking studies-This technique used to monitor responses over an extended period time. It

monitor the variables before and after the marketing activity. It is can be done by survey or panel

research

6.Financial Analysis-Marketing expenditure against budget profitability analysis, cost reduction,

return on investment

7.Tool for gathering stakeholder feedback

We can gather from data survey questionnaires Attitude survey, feed back form ,depth interview

8.Behavioural indicators-Relationship duration, retention rate ,defection rate

9.Stakeholder satisfaction survey

10.Media evolution

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controlefectiveness

controllefficiency controll

profitability

(Fig-4)

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12.0 Conclusion

International marketing is simply the application of marketing principles to more than one

country. The International Marketing Entry Evaluation Process is a five stage process,

and its purpose is to gauge which international market or markets offer the best opportunities

for our products or services to succeed. One of the fundamental steps that needs to be taken

prior to beginning international marketing is the environmental economical analysis.

Communication with stakeholder is important in international marketing. All businesses

must meet the challenges of competitive markets.

13.0Bibliography

BOOKS

PhilipHottler, Gary Armstrang(2005):Principal of marketing,11th ed. New Delhi, Prentice-

Hall of India.

Cateora,R. Graham,L.(2003):International Marketing,12th ed. TATA McGraw- Hill

William D.Perreult, Jerone McCarthy,Jr.E(2003: Basic Marketing,15th ed. McGraw-Hill

Joseph F.Hair,Robert JR,.Bush. P, David J.Ortinau: Marketing Research, McGraw-Hill

WEBSITE

Amazon Corporate Website, visited 25 April 2010,http://www.amazon.com

Royal mail Website, visited 24 April 2010,http://www.Royalmail.com

Biztecsoftware Website, visited 25 April 2010,http;// www.biztecsoftware.com

Alphasoftware Website,visited25 April 2010,http://www.alphasoftware.com

Marketing teacher.Website,visited 23 April2010,http://www.marketingteacher.com

Wikipedia Website,visited 23,24,25 April 2010,http://www.wikipedia.com

Kandos website,visited 04April 2010,http://www.kandos.lk

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14.0Appendix

14.1Ceylon chocolate limited

MARKET

Chocolates – like ice cream, toothpaste and milk

powder – have universal appeal across all

demographics and cultures. But unlike toothpaste and

milk powder, chocolate is not considered an absolute

necessity; nor is it endorsed by opinion leaders. In

fact, dentists and nutritionists often ‘de-market’ the

product – especially since it is perceived as being a product that is generally not suitable for

children.

Despite these constraints, the Western influence of chocolate as a

snack, reward or gift has gained universal acceptance. The habit

of chocolate being given as a gift between loved ones, friends

and relatives is widespread – and in this respect, chocolate often

triumphs over flowers as the gift of choice. The best evidence of this is on Valentine’s Day,

seasonal and religious events such as Christmas and New Year, and birthdays and

anniversaries. Chocolate is also a popular impulse item, where purchasing is influenced by

visibility in stores and by packaging

The Sri Lankan chocolate market has been dominated by many local players. But Kandos is

the undisputed market leader, enjoying a 56% market share. Kandos, however, has a strong

base. It was the premier chocolate long before foreign 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, thereby ensuring brand loyalty. The market is now quite sophisticated, with many

pack designs, display configurations, chocolate flavours and pack sizes on offer. The Kandos

brand has recognised the value of segmentation and it reaches each market segment in unique

ways. All this has combined to make it not just a successful Sri Lankan brand, but a Super

brand.

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ACHIEVEMENTS

Kandos has maintained a clear market-leader status in the chocolate segment in Sri Lanka

throughout its four-plus decades in existence. Presently, Kandos 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. In a highly competitive market scenario, with major global chocolate brands as

keen contenders, Kandos has emerged as the undisputed market leader in the chocolate

category.

BRAND VALUES

The core brand value of Kandos is the perception that it a delectable delight – hence, the

positioning of Kandos as the original chocolate. The brand essence is associated with love,

THINGS YOU DONT KNOW ABOUT Kandos

1.On average, 100 units of Kandos chocolates are

consumed every minute in Sri Lanka.

2.The original cocoa variety Criollo, introduced to the

world by the Mayans, is now available in only three

countries in the world – these being Indonesia, Samoa and Sri Lanka (Source: Chocolate

Cocoa Confectionery Third Edition, by Bernard W. Minife).

3.Some 95% of number one Sri Lankan cocoa beans are used to manufacture Kandos

chocolates.

4.Its consumer promotion, The Kandos Magic Wiz Kids, is probably the longest-running

consumer campaign ever to be held. It has continued since 2000, with the highest number of

winners of awards – over half a million – in Sri Lanka.

14.2Ceylon chocolate limited Stake holder audit

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Stakeholders are persons, groups or institutions with interests in a project or program.

Primary stakeholders are those ultimately affected, either positively (beneficiaries) or

negatively. Secondary stakeholders are the intermediaries in the aid delivery process. This

definition of stakeholders includes both winners and losers, and those involved or excluded

from decision-making processes.

What are the stakeholder's expectations of the project? Question A

What benefits are there likely to be for the stakeholders? Question B

What resources will the stakeholder wish to commit to the project? Question C

What other interests does the stakeholder have which may conflict with the

project? Question D

How does the stakeholder regard others in the list? Question E

Stake holder audit table

Stake

holder

Question A Question B Question C Question D Question E

Manager 1.Target achievement2.Control over funds & activities 3.profit

1.Promotion

2.salary

1.knowledge

2.skills

employee 1.Target achievement

2.Profit

1.promotion

2.Salary

1.Knowledge

2.Skill

Share

holder

1.Deligate decision power

1.Share value raising

1.fianncial power

1.Control the

project

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Internal Stakeholder External Stakeholder

May 29, 2010 [ ]

customer 1.Marketing

oriented product

1.satisfaction 1.willingness

2.bargaining

power

3.money

1.become a

shareholder

distributers 1.increase sales

volume

2.Public image

profit 1Distribting

channel

2.B2B

customer

relationship

1.Maintain

customer

relation ship

2.Compete

again

competitor

suppliers 1.Increase volume

of row material

1.Reliable

payment

2.regularly supply

schedule

1.Row

material

power

Supply to

competitors

media 1.Create public

image

1.Increase revenue 1.message

developer

Contact with

customer

Pressure

group

1.contrl

environmentalism,

consumerism

2.keep the

environmentalism

consumerism

1.Enhance

/damage

public image

competitor 1.Reduce

purchases

2.B2Bcustomer

boycott

1.Increase profit develop

promotion

activity

1.Regular

payment for

distributer

governmet 1.Jobs, investment,

tax revenue

1.Healthy& safety 1.Controlling

power

Creditors 1.Timely

repayment, early

notification of

problem

1.interest 1.Limit

credit, cut

credit rating

withdraw

credit

Regulatory 1.controlling 1.income 1.Controlling

power

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(Table No3)

May 29, 2010 [ ]

14.3 Interest &Impact on Stakeholder

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1.Manager

2.Customer

3.Creditor

4.Distributers

1. Government

2. Media

3.shareholder

4.Regulatory

1.High skilled workers

2.suppliers

3.pressure group

InterestLow

Pow

er

Low

High

Kandos

High

(Fig-5)

1.Low middle skill employ

May 29, 2010 [ ]

14.4Country background

14.4.1 Introduction:

Nepal is among the poorest and least developed countries in the world with almost one-third

of its population living below the poverty line. Agriculture is the mainstay of the economy,

providing a livelihood for three-fourths of the population and accounting for 38% of GDP.

Industrial activity mainly involves the processing of agricultural products, including pulses,

jute, sugarcane, tobacco, and grain. Bumper crops, better security, improved transportation,

and increased tourism pushed growth past 5% in 2008, after growth had hovered around 2.6%

- barely above the rate of population growth - for the previous three years. The deteriorating

world economy in 2009 will challenge tourism and remittance growth, a key source of

foreign exchange. Nepal has considerable scope for exploiting its potential in hydropower

and tourism, areas of recent foreign investment interest. Prospects for foreign trade or

investment in other sectors will remain poor, however, because of the small size of the

economy, its technological backwardness, its remoteness and landlocked geographic location,

its civil strife and labor unrest, and its susceptibility to natural disaster.

14.4.2 Population

The population of the country is 28,563,377 (July 2009 est.)

A. Total

1. Growth Rate: 1.281% (2009 est.)

2. Birthrates: 29.92 births/1,000 population (2008 est.)

3. Death Rate: 8.97 deaths/1,000 population (2008 est.)

4. Infant Mortality Rate: Total: 47.46 deaths/1,000 live births

Male: 47.4 deaths/1,000 live births

Female:47.52 death/1,000 live births

5.Lfe Expectancy at birth: Total Population:65.46 year

Male: 64.3 years

Female: 66.67 years (2009 est.)

B. Distribution of Population

The population is located mainly in rural areas. The urban population is primarily

concentrated in Kathmandu. Nepalese people are divided into two distinct groups: the Indo-

Aryans and the Mongoloids. Kathmandu Valley is the spiritual and cultural meeting point of

all these groups. Nepal is the only Hindu Kingdom in the world. It is also the birthplace of

Lord Buddha.

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May 29, 2010 [ ]

1. Age

Age Structure: 0-14 years: 36.6% (male 5,327,484/female 5,127,178)

15-64 Years: 59.2% (male 8,094,494/female 8,812,675)

65 Years and over: 4.2% (male 566,666/female 634,880) (2009 est.)

Media Age: Total: 20.8 years

Male: 19.8 years

Female: 21.7 years (2008 est.)

2. Sex

Sex Ratio: at birth: 1.04 male(s)/female

Under 15 years: 1.04 male(s)/female

15-64 years: 0.92 male(s)/female

65 years and over: 0.89 male(s)/female

Total population:0.96male(s)/female

3. Geographic Areas

4. Migration Rates and Patterns: 3.39 migrant(s)/1,000 population (2009 est.)

5. Ethnic Group

Chhettri - 15.5%

Brahman - Hill 12.5%

Magar - 7%

Tharu - 6.6%

Tamang - 5.5%

Newar - 5.4%

Muslim - 4.2%

Kami - 3.9%

Yadav - 3.9%

other - 32.7%

unspecified - 2.8% (2001 census)

III Economic Statistics and Activity

A. Gross Domestic Product

The gross domestic product at basic prices registered a growth of 5.6 percent in 2007/08

compared to a growth of 2.6 percent in 2006/07. The agriculture sector grew by 5.7 percent in

2007/08 compared to a growth of 0.9 percent in the previous year. The non-agriculture sector

expanded by 5.6 percent in 2007/08 compared to a growth of 4.1 percent in the previous year.

B. Personal Income per Capita

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May 29, 2010 [ ]

C. Average Family Income

As per the fourth HBS the reported average monthly household income stood at Rs. 27,391

(urban – Rs. 31,935 and rural – Rs. 22,225) of which, 7.3 percent was contributed by

agriculture, 28.1 percent by salary, allowance, wages and pension, 29.5 percent by

business/service, 16.1 percent by remittance and 10.2 percent by imputed rent (Annex VI).

Similarly, the average monthly expenditure of the household stood at Rs. 15,130 (Urban –

Rs17,896 and Rural – Rs. 11,982), of which, 39 percent to food expenditure and 61 percent to

non food expenditure.

D. Distribution of Wealth

E. Minerals and Resources

F. Surface Transportation

Modes: Airports, Railways and Roadways

Availability: Airports: 47

Railways: 59 km

Roadways: 17,280 km

G. Communication System

Types: Telephones, Radio Broadcast, Television Broadcast, Internet

Availability: Telephone main lines: 766,400 (2007)

Telephone mobile cellular: 1.157 million (2006), general assessment: poor telephone and

telegraph service; fair radiotelephone communication service and mobile-cellular telephone

network

Radio Broadcast stations: AM 6, FM 80, shortwave 4 (2008), radios: 840,000 (1997)

Television Broadcast stations: 9 (plus 9 repeaters) (2008)

Internet Service Providers: 6 (2000)

Internet Users: 337,100 (2007)

H. Working Conditions

The workers remittances increased significantly by 42.5 percent to Rs142.68 billion in

2007/2008 compared to a marginal growth of 2.5 % in the previous year

I.Principal Industries

J. Foreign Investment

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May 29, 2010 [ ]

The accumulation of gross foreign exchange reserves reached Rs. 212.62 billion in 2007/08.

This level of reserves is sufficient to cover imports of 11.3 months and merchandise and

services imports of 9.1 months.

K. International Trade Statistics

1. Major Exports

The sluggish export of Nepalese commodities also had an adverse impact on the Nepalese

economy. The sluggish export badly affected industrial production and employment. The

supply of petroleum products had not been smooth primarily due to the lack of adjustment of

domestic oil prices as per the international crude oil price. In addition, obstruction in the

highway, strike and bandhs also adversely affected the Nepalese economy in 2007/08. Total

exports grew by 2.4 percent in 2007/08 as against a decline of 1.4 percent in the previous

year.

2. Major Imports

Total imports increased by 16.1 percent in 2007/08 compared to a growth of 12 percent in the

previous year.

3. Balance of Payment Situation

Although the trade deficit widened, the overall balance of payments (BOP) posted a surplus

of Rs. 29.67 billion in 2007/08 compared to a surplus of Rs. 5.90 billion in the previous year.

4.Exchange Rates

In the international market, the price of oil (Crude Oil Brent) plummeted by 54.7 percent to

US$ 43.38 per barrel in mid-February, 2009 from US$ 95.80 per barrel in mid-February2008.

Similarly, the price of gold rose by 2.0 percent to US$ 935.50 per ounce in mid-February,

2009 from US$ 917.00 per ounce a year earlier. In comparison to mid-July 2008 the Nepalese

currency vis-à-vis the US dollar depreciated by 11.84 percent in mid-February 2009. It had

appreciated by 2.37 percent in the corresponding period of the previous year. The exchange

rate of one US dollar stood at Rs. 77.70 in mid- February 2009 compared to Rs. 68.50 in mid-

July 2008.

L. Trade Restrictions

M. Labour Force

O. Inflation rates

Inflation has reemerged as a major challenge for monetary policy. There is a need to be

cautious that monetary growth is not the source of inflation. The annual average consumer

price inflation rose to 7.7 percent in 2007/08 from 6.4 percent a year ago. The year-on-year

(y-o-y) consumer inflation surged to 12.1 percent in mid-July 2008 from 5.1 percent a year

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May 29, 2010 [ ]

ago. The y-o-y consumer inflation surged further to 13.1 percent in mid-August 2008 from

6.3 percent a year ago.

(http://wikipedia.com)

(The above data has been based on a real- life situation, but some details have been change

for assessment purpose)

I conform that in forwarding this assessment for marking, I understand and have applied the

CIM policies relating to word count, plagiarism and collusion for all tasks. This assignment

is the result of my independent work/investigation except where otherwise stated. Other

sources are acknowledge in the body of the text and/a bibliography is appended. The work

that I have submitted has not previously been accepted in substance for any other award and

is not currently submitted in candidature for any other award.

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