Divine Choco

7/28/2019 Divine Choco

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ContentsExecutive Summary ................................................................................................................................. 2

Product and Business Description .......................................................................................................... 3

1. B2B Markets by Internet Connection.............................................................................................. 3

2. B2C Markets, offline and online. ..................................................................................................... 3

International Marketing Objective ......................................................................................................... 4

Target Market ......................................................................................................................................... 4

Distribution Channel ............................................................................................................................... 6

Franchising .......................................................................................................................................... 6

Joint Ventures ..................................................................................................................................... 6

Promotion and advertising strategies. .................................................................................................... 7

Building Global Presence .................................................................................................................... 7

International Branding ........................................................................................................................ 7

Branding Strategies ............................................................................................................................. 7

Appendix ................................................................................................................................................. 9

References ............................................................................................................................................ 18


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The Divine Chocolate

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Executive Summary

Globalization for the largest firms should be the route to maximizing performance by

introducing, where possible, standardized marketing programmers and processes, but at the

same time, adaption certain operational activities to local needs in order to maximize short-

term revenue generation. The problem that such firms face is exactly which aspects of their

international activity to standardize and which to adapt because the decisions are often

context specific and are affected by the particular factors which drive change within their

particular industry. This leads to firms adopting a variety of global strategies, from those

that are very similar from country to country to those that are substantially different in each

country in which the firm operates. (International Marketing Strategy: Analysis,

development and implementation,4th

ed, p.179)

With globalization, the impact of cultural adaption will need to be central to the study of

operational topic areas such as joint venturing, materials management, purchasing, new

product development, layout and process design, supervision and motivation, training,

workforce scheduling, environmental management, and labor-management relations. These

are all key areas of front room and back room management that are likely to require

adaption from country to country as services are globalized. Through standardization, it will

be easier for Divine Chocolate to operate internationally and more cost efficient because

they have the same management strategy and save cost in packaging with a same product

line. (Global Marketing: a decision-oriented approach, 2nd

ed, p.74)

Product and promotion go hand in hand in foreign markets and together are able to createor destroy markets in very short order. Use of this promotion adaption in the Asia market

involves leaving a product unchanged but fine-tuning promotional activity to take into

account cultural differences between markets. It is a relatively cost-effective strategy as

changing promotion messages is not as expensive as adapting products. Hence, in this

report, the emphasis will rely on distribution channel and promotional strategies that are

less cost-consuming to ensure financial feasibility. It infuses the concept of standardization

and localisation, by using similar products, but different promotional practices.


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Product and Business Description

1. B2B Markets by Internet Connection.

The Divine Chocolate Ltd offered B2B Markets among the wholesaler, retailer and consumer.

They set up private portals that allow their customers to buy needed items. Service and

customized pages are accessed through passwords provided by B2B marketers. Online

auctions and virtual marketplaces offer other ways for buyers and vendors to connect with

each other over the internet. (www.divinechocolate.com)

The components that been use in Divine Chocolate Ltd B2B Markets is:

Commercial Market

Trade industries

The commercial market is the largest segment of the business market. It includes all

individuals and firms that acquire products to support, directly or indirectly, production of

other goods and services. When a bakery purchases a dark chocolate online and blends it

becomes a cake, this transaction all take place in the commercial market. The commercial

market includes manufacturers, farmers, and other members of resource-producing

industries, construction contractors, and provides of such services as transportation, public

utilities, financing, insurance, and real-estate brokerage.

The second component that practice by Divine Chocolate Ltd is trade industries, includes

retailers and wholesaler, know as reseller, who operate in this sector. In Divine ChocolateLtd, most of the buyer has opportunity to purchase the goods and it always finishes goods

by the company and sells it to the final consumers. In other cases, the buyers may complete

some processing or repackaging before reselling the products. A group of cocoa farmers

founded Divine Chocolate Ltd, a wholesale of chocolate business based in South African. The

company supplies chocolate for customers such as Bakers Catalogue, which offers the

chocolate as ingredients, and the Bakers Catalogue, which sells the chocolate under its

private label.

2. B2C Markets, offline and online.Divine Chocolate Ltd also offered B2C Markets to the end-user consumers. The company

sells products or provides services to end-user consumers by B2C Markets. While B2C

activity exists both online and offline, the acronym B2C has primarily been used to describe

the online variety. The Divine Chocolate offered the end user to purchase online by signing

up for their company online portal. Besides, it is also offered offline B2c by provide some

store to sell the products to the end-user.


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International Marketing Objective

1. To successfully penetrate into the Asia market with strong brand name

2. To dominate Asia market through glocalisation, that is standardized product from

home market along with promotion strategies that reflects local needs

3. To create strong and manageable distribution channel

Target Market

The target market in which Divine Chocolate will be introduced will be the market of Asia.

Since divine market is a product of Africa it wont be hassle to engage it with the nearest

market and biggest. Before entering market its religious socio cultural and political factors

are most important concern as it impact immensely on the product adaption in the new

market. In order to succeed in a particular market, Divine might have to change ingrained

attitudes about the way they do business.

Level of education in the targeted Asian market.

The level of formal primary and secondary education in Asian market will have a

direct impact upon the sophistication of the targeted customers. A simple example

will be the degree of literacy. In market that has a very low literacy rate, Divine has

to pay more attention to the labeling of products, and to make sure the people

understands. There are estimated to be 625 million illiterates in Asia: 71% of the

worlds total, of whom 64% are women and girls.

Technology and material culture in the Asian marketRelates not to materialism but to the local markets ability to handle and deal with

modern technology. Some cultures find the idea of leaving freezers plugged in

overnight, or servicing cars and trucks that have not yet broken down difficult down.

Hence, Divine should be familiar with or foresees how the local in targeted market

response to new technology when its installed. Having China in the region impacts

positively on the technology factor as many companies even outside Asia give the

responsibility of manufacturing and assembling there product to China and other

parts of Asia where labour is cheap, clearly indicates that Asia is not far behind in

technological field which is an advantage of choosing Asia market as using high

technology will make work and the marketing process easier and faster and hence

will give a hope to evolve.

Law and politics in the Asian market.

The legal and political environments in Asian market are usually regarded as

consequences of the cultural traditions of that market. Legal and political systems

are often a simple codification of the norms of behavior deemed acceptable by the

local culture. In this context, the Divine Company should make sure their activities

will not infringe the targeted markets laws in all aspects. As international firms

continue to recognize the strategic importance of it as a gateway to China and the


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rest of Asia, Hong Kong has become a pivotal battleground for pre-eminence in the

legal profession Singapore continues to grow as a regional hub for international law

firms to conduct business in Southeast Asia and beyond South Korea is making a

steady recovery from the financial crisis, as evidenced by a notable increase in

corporate transactions and IPOs.

Religion in Asian market

Religion is the major cultural variable and has significant effects on marketing

strategy. Religion, for example, will affect the food that people eat and when they

eat it as well as their attitudes to a whole range of products from deodorants to

alcoholic drinks. In Asia market there are four top religions Islam, Buddhism,

Hinduism and Christianity. The products advertisement and description should not

offend any of these religions as it will impact on buying decision.

Values and attributes of Asian market.

The values consumers from different countries place on things such as time,

achievement, work, wealth, and risk-taking will seriously affect not only the products

offered, but also the packaging and communication activities. In relation to food and

Asian values, there is a significant value on sustainability, and on harvesting from a

clean, green environment. Catherine Norwood (2012), indicated that her

interviewee suggest that the industry player can market to these strengths with the

adoption of high levels of food safety standards and third party certifications.

Language

Language can be divided into two major elements: the spoken language of vocalsounds in pattern that have meaning, and silent language, which is the

communication through body language, silences and social distance. The choice of

language to use for a company website is also problematic for companies operating

across many borders. With regards to this, Divine should take into consideration

whether the website should be multilingual. If yes, this would incur greater costs in

ensuring its sustainability and the company should be prepared to take into concern

the budget they have. Since Asia uses multiple languages that are different from

Africa, choice of language is important.


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Distribution Channel

Franchising

Franchising is a marketing-oriented method of selling a business service, often to small

independent investors who have working capital but little or no prior business experience.

Reputation of Divine Chocolate is high and it makes their company easily to go franchising

just if they offered their business service out of their coverage to foreign country. It makes

them to easily go internationally and built reputation throughout the world. As indicated

earlier, business format franchising is an ongoing relationship that includes not only a

product or a service, but also a business concept. The business concept includes a strategic

plan for growth and marketing instruction in the operation of the business, elaboration of

standards and quality control, continuing guidance for the franchisee, and some means of

control of the franchisee.

Joint Ventures

A joint venture or a strategic alliance is a partnership between two or more parties.

Previously, Divine Chocolate joint venture with some organization such as Body Shop,

Christian Aid, Comic Relief and etc. Here, the Divine should consider to further its venture

A number of reasons are given for setting up joint ventures, including the following:

Complementary technology or management skills provided by the partners can

lead to new opportunities in existing sectors of Divine company.

Having partners in the host country can increase the speed of market entry for

Divine.

Many less developed countries, such as China and South Korea, try to restrict

foreign ownership.

Global operations in R&D and production are prohibitively expensive, but are

necessary to achieve competitive advantage. (Global Marketing: a decision-

oriented approach, 3rd

ed, p.318)


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Promotion and advertising strategies.

Building Global Presence

Building a global presence is hugely expensive and many firms see no value in expanding

globally if their home country or region offers sufficient growth prospects without

marketing their products and services in what they might perceive to be higher risk areas.

Thus, Divine Chocolate needs to overcome a number of challenges to build a truly global

presence, which includes:

Responding to the changing basis of competitive advantage.

Increasing global appeal by building the global brand

Creating global presence by achieving global reach

Managing diverse and complex activities across a range of often similar but often

disparate markets and cultures

International Branding

Closely linked with the image of the product is the issue of branding. The role of branding,

important as it is in domestic markets, takes on an additional dimension in international

markets as it is the most visible of the firms activities, particularly for global companies.

Brands allow customers to identify products or services which will promise specific benefits,

such as performance, price, quality, or image. For Divine Chocolate, brands provide a point

of differentiation from their competitors products and extremely valuable in providing

access to markets. As far as Asia market is concern, Divine should take into consideration of

Branding Strategies

There are four applicable branding strategies:

Corporate umbrella branding is where corporate name is used as the lead name for

all their products, for example Kelloggs Healthwise, Kelloggs Frosties, Kelloggs Corn

Flakes.

Family umbrella names are used to cover a range of products in a variety of markets.

Range branding is used for a range of products with a particular link n a specific

market such as Lean Cuisine for low-calorie foods.

Individual brand names are used with individual products in a particular market, with

different weights, colours, flavours and pack sizes.


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As far as Asia market is concern, the level of literacy in Asia continent would suggest the use

of simple words. Jargon should be avoided at all level, ranging from key messages to

promotional slogans. While it is not feasible to look into all of the languages and dialects

due to financial and talent constraint, it is highly advisable for Divine to segment Asia region

into different categories according to language, for example, residence of Malaysia,

Indonesia, Singapore and Brunei shares identical languages.

Nonetheless, advertising message should highlight the level of food safety to make

consumers feel secured and confident in the products, as well as brand. Certification from

third party provides the sense of endorsement, and its necessary in certain countries. For

example, in Muslim countries like Malaysia and Indonesia, it is compulsory to be certified

Halal, however, in other countries, this would be a persuasive weapon.

Apart from that, advertisement should focus more on graphical illustration that can luredesires and buying interests. This is because graphics not only attract attention, it also helps

consumers to understand and interpret ads, especially when they do not understand the

copy. Both offline and online advertisement should provide an insight of the product

through pictures. Packaging can be made more colourful and visually attractive.

The extent of technological advancement suggests that Asia is on par with the world,

however, we also note that not all countries within the region shares same level of

technological achievement. It is thus necessary to identify the technologically savvy nation

and employ digital advertising in the specified countries.

Last but not least, interactive advertising channel will enhance brand/product awareness as

well as brand/product recall. Divine Chocolate can implement product sampling campaign,

followed by road shows to allow interactivity. Product sampling is one of the most

important techniques as venturing into a new market takes time to create confidence in

consumers. They might not be willing to spend until they have tried the product itself.

Product sampling provides an opportunity for the organization to attract trial. Event such as

road shows bring the relationship one step further by teaching consumers on the product

line and categories, reflecting the core business.


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Dark Divine launched first step towards building the fabulous Divine range

The Co-op decides to convert all its own-label chocolate to Fairtrade supplied by

The Day Chocolate Company

2003

Dubble goes online the Dubble website is launched and a community of active and

willing DubbleAgents is established after a deluge letters from young Fairtrade

supporters asking for Dubbles help to change the world chunk by chunk.

2004

Two Kuapa farmers attend the announcement at the Welsh Assembly that Cardiff

has been made a Fairtrade City.

2005

Coldplays Chris Martin visits Ghana with Oxfam as part of their Make Trade Fair

Campaign

Divine launches its first national advertising campaign.

The G8 summit takes place at Gleneagles in Scotland. Divine ensures the Fairtrade

message gets across with chocolate bars in every Gleneagles bedroom and every

welcome pack for the worlds press.

2006Two Kuapa Kokoo farmers tour Scotland as ambassadors of their cooperative,

spreading the Fairtrade message, and the story behind Divine.

Dubble, Comic Relief and Trading Visions(the new charity set up by Divine to create

further educational opportunities and resources, and amplify the voices of cocoa

farmers) helps young people to lead their own cocoa trade summits all over the UK.

Original Day Chocolate founder, The Body Shop, makes a brilliant decision to donate

its shares in the company to Kuapa Kokoofarmers cooperative has a bigger stake

in Divine

2007

The Day Chocolate Company changes its name to Divine Chocolate Limited more

obviously aligns the Company with its leading brand, comes at the same time as a

new brand design, and a restructuring of the business which puts more shares in the

hands of the farmers, and brings in a new investor.

Divine Chocolate Inc launches in USA opens for business in USA on Valentines Day.

Kuapa farmer, Comfort Kumeah, braves the snow to represent the cooperative at

the press briefings and celebrations, and appears on the front page of the

Washington Times.


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2008

Dubble Agents have a brand new Mega Mission to involve their parents/guardians

and local community in supporting Fairtrade. Mission: Possible is launched to

coincide with a series of Fairtrade School Conferences, and features a new

interactive online area at dubble.co.uk and a Mission Information and action pack

designed to help Dubble Agents use their positive pester power to get a fair deal for

third world producers worldwide.

Divine and Kuapa Kokoo celebrate ten years of collaboration and raising the bar for

fairer trade with a big party and the Decade of Divine exhibition.

2009

Sophi Tranchell, Managing Director of Divine Chocolate Ltd, said Working for the

farmers of Kuapa Kokoo has been a privilege but it has also been a constant

inspiration to see chocolate lovers here respond to Divine and the farmer-owned

Fairtrade proposition.

Divine Chocolate leads the way as a catalyst for change in the chocolate market with

the announcement of Cadbury converting approximately 20% of their chocolate

range to Fairtrade.

2010

The first container of cocoa from Sierra Leones only Fairtrade certified cooperative

Kpeya Agricultural Enterprise (KAE), is bought by Divine Chocolate.


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Divine Chocolate Ltd further establishment: Trading Visions

The charity Trading Visions was established in 2003 to build on a long-standing nationwide

Fairtrade education initiative undertaken in partnership between Divine Chocolate, Comic

Relief and Kuapa Kokoo. Trading Visions aims to stimulate debate and action on Fairtrade

and related issues, such as power and ownership in global supply chains. The charity works

to catalyse conversations and amplify the voices of small scale cocoa farmers and other

producers from the South in those conversations. Trading Visions has a track record in using

innovative new technologies to bring producers and consumers face to face in fun and

accessible educational experiences.

The Pa Pa Paa education pack was developed by Comic Relief and Divine Chocolate and

launched in 2000. It aimed to build Fairtrade understanding and consumer citizenship

amongst young people by telling the bean to bar story of Fairtrade chocolate and Kuapa

Kokoo.

In tandem with this education programme, Divine Chocolate and Comic Relief co-launched

the first ever Fairtrade product designed especially for young people, the Dubble Fairtrade

chocolate bar with added Comic Relief. Dubble was always more than just a chocolate bar:

it also boasts a community of young Fairtrade campaigners called Dubble Agents on

theDubble website, hungry to change the world chunk by chunk.
http://www.dubble.co.uk/http://www.dubble.co.uk/http://www.dubble.co.uk/http://www.dubble.co.uk/


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Products


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International Achievements

Divine Chocolate Ltd was

awarded Best Social

Enterprise 2007 at the

Enterprising Solutions awards

run by the Office of the Third

Sector

The Observer Best Ethical

Business 2008.

Best Food Brand in theSHE magazine Ethical

Awards 2007

PETAs 5th

Annual Proggy

Awards, 2008 Winner.


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Sophi Tranchell MBE, Managing

Director of leading farmer-

owned chocolate company

Divine Chocolate, First Woman

of Retail and Property at the

CBI/Real BusinessFirst Women Awards.

Bronze Great Taste Award for

Divine Dark 70% chocolate and

Confectionery Product of the

Year awarded by Shop Expo

Ireland to the new Divine Dark

Fruit and Nut bar.

Divine Chocolate won a2006 Green Award for

creativity in sustainability


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References

Business to consumer. Available from:

http://www.marketingterms.com/dictionary/b2c/[Accessed 09/05/10].

Hollensen, S. (2004) Global Marketing, a decision-oriented approach. 3rd

ed.Pearson Education Limited.

Hollensen, S. (2001) Global Marketing, a decision-oriented approach. 2nd ed.

Pearson Education Limited.

Doole, I. (2004) International Marketing Strategy:Analysis, development and

implementation. 4th ed. Thomson learning.

Warren, J and Mark, C. (2005) Global Marketing. 4th ed. Pearson Education.

http://www.ibe.unesco.org/fileadmin/user_upload/archive/publications/Prospects/ProspectsOpenFiles/pr115ofe.pdf

hthttp://www.spindices.com/documents/commentary/market-attributes-pan-asia-

201303.pdftp://betanews.com/2011/02/01/asia-s-influence-rises-over-global-pc-

market/

http://www.asiamarketresearch.com/glossary/attributes.htm

http://frdc.com.au/knowledge/publications/fish/Documents/FISH%2020-

4%20Expo%20aids%20Asian%20markets%20assessment.pdf
http://www.marketingterms.com/dictionary/b2c/http://www.marketingterms.com/dictionary/b2c/http://www.ibe.unesco.org/fileadmin/user_upload/archive/publications/Prospects/ProspectsOpenFiles/pr115ofe.pdfhttp://www.ibe.unesco.org/fileadmin/user_upload/archive/publications/Prospects/ProspectsOpenFiles/pr115ofe.pdfhttp://www.ibe.unesco.org/fileadmin/user_upload/archive/publications/Prospects/ProspectsOpenFiles/pr115ofe.pdfhttp://betanews.com/2011/02/01/asia-s-influence-rises-over-global-pc-market/http://betanews.com/2011/02/01/asia-s-influence-rises-over-global-pc-market/http://betanews.com/2011/02/01/asia-s-influence-rises-over-global-pc-market/http://betanews.com/2011/02/01/asia-s-influence-rises-over-global-pc-market/http://betanews.com/2011/02/01/asia-s-influence-rises-over-global-pc-market/http://betanews.com/2011/02/01/asia-s-influence-rises-over-global-pc-market/http://www.asiamarketresearch.com/glossary/attributes.htmhttp://www.asiamarketresearch.com/glossary/attributes.htmhttp://frdc.com.au/knowledge/publications/fish/Documents/FISH%2020-4%20Expo%20aids%20Asian%20markets%20assessment.pdfhttp://frdc.com.au/knowledge/publications/fish/Documents/FISH%2020-4%20Expo%20aids%20Asian%20markets%20assessment.pdfhttp://frdc.com.au/knowledge/publications/fish/Documents/FISH%2020-4%20Expo%20aids%20Asian%20markets%20assessment.pdfhttp://frdc.com.au/knowledge/publications/fish/Documents/FISH%2020-4%20Expo%20aids%20Asian%20markets%20assessment.pdfhttp://frdc.com.au/knowledge/publications/fish/Documents/FISH%2020-4%20Expo%20aids%20Asian%20markets%20assessment.pdfhttp://www.asiamarketresearch.com/glossary/attributes.htmhttp://betanews.com/2011/02/01/asia-s-influence-rises-over-global-pc-market/http://betanews.com/2011/02/01/asia-s-influence-rises-over-global-pc-market/http://betanews.com/2011/02/01/asia-s-influence-rises-over-global-pc-market/http://betanews.com/2011/02/01/asia-s-influence-rises-over-global-pc-market/http://www.ibe.unesco.org/fileadmin/user_upload/archive/publications/Prospects/ProspectsOpenFiles/pr115ofe.pdfhttp://www.ibe.unesco.org/fileadmin/user_upload/archive/publications/Prospects/ProspectsOpenFiles/pr115ofe.pdfhttp://www.marketingterms.com/dictionary/b2c/

Divine Choco

Text of Divine Choco

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