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Situation Analysis of Sapid Sweets

Who are you? | Sapid Sweets, producer of exquisite chocolate and confectionery products, sold around the world |
What is your purpose? | Business was started to bring delicious sweetness into the world. Fancy chocolate is for happy occasions, and for when you need some quick energy that tastes good. |
What exactly do you offer the consumer? | Tastytreats of very high quality |
What is your current image and reputation? | High quality, high price. |
What do your customers think of you and your products? | Comparable to overpriced European products.Company is family-run.Products are produced in Canada |
Who are your competitors? | High-end lines of large chocolate companiesImported chocolates |
Where are they located? |CanadaUSAEurope |
What are the properties of your facilities and equipment? Should they be improved? If so, how? | There is enough capacity for the chocolate and candy product line. If the company adds any new products, a new production facility will need to be constructed. |
How big is your marketplace? Is there room for competition? | The high-end chocolate and candy market is C$66 billion world-wide.Thetop company has a 55% market share. The next biggest company has a 25% market share. The third biggest company has a 12% market share. The remaining 8% of the market is made up of many companies, non with more than 1% of the market share. Sapid Sweets has 0.8% of the world market, with 2004 sales of C$525.69 million dollars.Sapid Sweets is the largest high-end chocolate and candy maker inCanada. |
Are your products and services affected by economic conditions? | Expensive chocolate and candy sales are hurt by challenging economic conditions. People switch to lower-priced products when money is in short supply. |
Do you have reliable suppliers? Do you have alternatives? | Sugar, cocoa, and milk are the main ingredients of the products. A variety of suppliers exist. The prices forproducts from the big, reliable suppliers are determined by sugar and cocoa exchanges in London. Niche, specialty suppliers are available. Their products are organically grown, and supply is somewhat reliable, but could be affected by weather conditions more than the main market. |
How do your customers know about you? | Advertising is done in specialty magazines, and television advertising thatcaters to rich, cultured people.Some product placement was done in a recent movie, with limited success. |
How do you competitors market their products? | Our main competitors are much bigger companies with huge TV and print advertising budgets. Their products are available in many department stores, specialty shops, and their own retail stores. Their products are sold in boxes and inindividually wrapped items. Their prices are higher than candy bar-level, but not as high as luxury-level. During typical candy-giving sales promotions (e.g. Mother’s Day, Valentines Day, Easter, and Christmas) they market bigger-ticket items like 5-pound boxes and variety packs. |
Are your products and services unique? | Luxury chocolate and candy companies in Canada are rare. |
Do your productsoffer benefits that your competitors can easily match? Do they need to be upgraded or modified in any way? | The formula for our chocolates is a carefully guarded secret. The ingredients for some of our flavours come from the far corners of the world, and we buy all the supplier’s production. |
Are they keeping pace with consumer trends? | Demand for our products is slipping; more and more peopleare becoming health conscious and trying to lose weight. |
Is price a major factor? Should you adjust the price? | Our customers appreciate that our products are exceptional and different. They are willing to pay more for the special nature of the products. |
Do you have suitably qualified staff? Do you have an ongoing training program to upgrade their skills? | We have people who are very...
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