Assessment Task- 2
In case study, we have to appointed the new marketing manager for “Cocoa Delight” a chain of gourmet chocolate stores in Melbourne. According to case study, I must complete a viability report for each of the marketing opportunities. The cocoa Delight has target to open 100 stores in Australia till 2016. For that they try to examine the two way either franchising or joint venture partner. The ceo help to provide with consultant report for the franchising option. They got proposal from the haigh’s chocolate on the joint venture option.
COST AND BENEFITS OF JOINT VENTURE WITH HAIG’S
* Haigh’s sell chocolate at mid ranged prices, so customer could
* Enjoy greater access to all of the product groups, including the cheaper range of chocolate.
* Low cost combined media of Haigh’s will help in creating brand awareness for cocoa delight.
* Haig’s already have knowledge of market in three capital cities.
* Advertisement will be cheaper using Haig’s extensive media.
* Market segments are complimentary rather than competitive.
* Rollout to 100 stores is expected to take in 5-7 years.
* Decrease in disposable income due to increase in interest.
COST AND BENEFIT OF FRANCHISING
* Franchisee will bring capital so provide ready solution to store manager’s shortage.
* Proven Melbourne stores provide easy marketing and sales.
* 100 stores target can be achieved in 3 years.
* Introduction to greater legal issues.
* Greater conflict between local minded business and brand interests.
The pest analysis is very helpful for understanding market growth or decline and such as position .potential and direction for the businesses analysis is a business measurement tool. Pest is an acronym for political, economic factors, which are used to assess the market for a business or organization.