The Chocolate Industry - Cornell University presentations... · Why The Chocolate Industry ......
Transcript of The Chocolate Industry - Cornell University presentations... · Why The Chocolate Industry ......
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The Chocolate IndustrySaddmun Ahsan
Rebecca Etessami
Laya Mallela
Nishat Yasmin
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Agenda
Industry Overview
Content Analysis
Raw Data Analysis
Conclusion & Recommendation
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Why The Chocolate Industry
Who doesn’t love chocolate?
More than just a snack
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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Industry at a Glance
Revenue
16.8bn
Profit
959.9m
Annual Growth 2011-2016
1.2%
Annual Growth 2016-2021
0.7%
Businesses
1,149
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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Types of Consumers
Wants cheaper products and
value lines
Looks for bite size varieties
Value Consumer
Sees chocolate as more than
just a product
Demands premium quality
Luxury Seeker Aims to
economize while
brightening life
Less loyal to brands
Hybrid Consumer
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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Supply Chain
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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Supply Chain
Innovation
Sustainability
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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Cost Structure
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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Competitive Landscape
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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Market Concentration is High
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
Top 4 firms
command
74% of the
total market
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Substitutes
Consumer preference driven
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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Revenue Volatility
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
Price of raw inputs/energy
Consumer demand/disposable income
Monthly
Averages of
Daily Cocoa
Prices
(USD/tonne)
from January
2013-2016
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Regulatory Agents
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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Major Players
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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4,893M 1,175M
687M 161M
3,543M
195M
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
Financial Performance
Revenue
Operating
Income
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8.2M 1.6M
156K 52.8K
2K 57.3K
10.6M
79.5K
131K
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
Social Media Performance
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Hershey’s Content Analysis
No ads were informative or comparative
No ads used humor, fear, or celebrities
Movie-like
One-brand strategy
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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M&Ms Content Analysis
100% used humor and featured the M&M characters
None were informative or comparative
Some were specialized for Crispy or Peanut M&Ms
Current Campaigns
• Partner with X-Men Movies
• Celebrating 75 Years
• Pick Your Favorite Flavor
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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M&Ms Primetime Analysis
Promotes different product lines throughout the year
Featured M&Ms Peanut during 2014 Super Bowl Campaign
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Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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Lindt Content Analysis
Highlighted that chocolate is an experience good
Persuasive in nature – “smooth” & “luscious”
Don’t use humor
Campaign remained the same over 5 years
• Woman tasting chocolate
• Master Swiss chocolatier
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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Raw Advertising Data Analysis
2014 Prime Time Data
2009, 2010 Full Data
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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Advertising Data
$70 million spent on 1177 prime time ads in 2014
Mars Inc. spent the most in prime time advertising
Mars54%Hershey
23%
Ferrero 5%
Lindt18%
Merci European
0.2%
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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Advertising Data
Increase in ad spending as recession ended
$333m
$560m
2009 2010
Ad Dollars Spent
189,482
306,594
2009 2010
Number of Ads
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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Seasonality
During summer months, drop in both number of ads
and ad dollars spent (in millions)
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Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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Seasonality
Same trend seen in 2009-2010
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Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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Seasonality
Compared to Candy
Non-chocolate candy shows different seasonal patterns
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Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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Valentine’s Day
Peaks leading up to Valentine’s Days and then drops
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Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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Halloween and Christmas
No large advertising jump for Halloween, but huge
buildup to Christmas
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Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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Gourmet vs. Mass Market
Lindt
Mars Inc.
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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Gourmet vs. Mass Market
Seasonality
Gourmet brands advertise much more heavily in the during
the first and last quarters of the year, while mass market
brands advertise consistently throughout the year
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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High End (Lindt) Low End (Mars)
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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Gourmet vs. Mass Market
Average Ad Price
2014, Primetime
$60,880
$58,057
Lindt Mars
2009 + 2010
$2,841
$1,767
Lindt Mars
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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2014 Program Type Proportions:
Mass Market and Gourmet
0%
5%
10%
15%
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25%
30%
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40%
Mars Hershey Lindt
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Primetime Programming:
Mass Market
Mars Top ProgramsHershey’s Top Programs
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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Primetime Programming:
Gourmet
Lindt Top Programs
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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2009-10 Programming:
Mass Market
Mars Top ProgramsHershey’s Top Programs
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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2009-10 Programming:
Gourmet
Lindt Top Programs
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
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Trends and Strategies
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion
Health
Seasonality
Develop Brand
Identity
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Recommendations
Major brands should get ahead of the trends
• Health
• Sustainable
Continue to experiment with artisanal ingredients
Further innovate in production, technology, marketing
Industry Overview Content Analysis Raw Data Analysis Recommendations &
Conclusion