Strategic Management for Real Chocolate Company Research Paper

Strategic Management for Real Chocolate Company - Research Paper Example Political: Decrease in over all market demand due to unstable political situation. Economic: The Economic downturn being experienced in the whole world can be lethal for the demand of chocolates. Socio-cultural: The population of U.S is getting more conscious about the problems related to health. Any product accused of effecting health of the people can lead to the loss of market share. The changing demographics of US are also affecting the demand patterns. Technological: Increased innovation and technological improvement in manufacturing and services resulting in shape of economies to scale. Legal: Improved laws regarding the health affecting food products. Environmental: The industry can face environmental threat because of the Agro-terrorism. a) Segments (main market segments): The main market segments are the B2b customers getting the franchise of the company. b) Differentiation opportunities: Artisan chocolates are creating marketing Niches. The company can also experiment with exotic flavors and ingredients mixes as experimented with big chocolates in past. Godiva Chocolatier and Russell Stover, Company's largest competitors, hold a larger share of the global market in sales of chocolates. This likely was an outcome of being a publicly traded company and maintaining the capital required for large-scale marketing ventures. Regardless, Real Chocolate Company only maintains between eight and 12 percent of the entire market, which is insufficient for their growth requirements. Market Penetration: The revenue of the company can be increased by the introduction of new franchising schemes as this can be a low cost and high revenue option. The...This likely was an outcome of being a publicly traded company and maintaining the capital required for large-scale marketing ventures. Regardless, Real Chocolate Company only maintains between eight and 12 percent of the entire market, which is insufficient for their growth requirements. The revenue of the company can be increased by the introduction of new franchising schemes as this can be a low cost and high revenue option. The company should also keep its share in the annual sales of its franchised stores and outlets. The new product to be marketed to our existing customers can be the Dark Chocolate. This will be an innovative product for the loyal customers of the Company. The Company should also introduce new franchising programs with different offers for franchisees. The Real Chocolate Company is currently working in a market where sales are being affected by competitor activities and the external environment. There are several opportunities available for Real Chocolate Company to shift its position as a follower in the sales market and emerge a leader. The company reported the revenues of $ 31.6 million which was 12 % more than the previous year.