Marketing Plan For Serendib Spicy Chocolates In Canada Marketing Essay

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There also consists research on the existing governing patterns of the

country and its political system. We have been careful not to use the Self

reference criterion when comparing our Sri Lankan culture with that of

Canadians. Therefore we hope to globalize our product - Serendib Spicy

Chocolates by starting our endeavor in the Canadian market. We have taken

into consideration, throughout this section of the report, to look at Canada's

regional interests, changing trends; such as how the recession affected the

country and any cultural adjustments that we would have to make.

Canada's exports of processed food items exceed imports by around a

percentage of 30%. In 2003, Canada exported $16.8 billion worth of

processed food products and imported products worth $12.6 billion. Canada

has always been a major food exporter around the world. Canada's export

orientation for processed food products (Canadian dollar value of

exports/Canadian dollar value of production) rose from 14% of annual

production in 1990 to 26% of production ($12.6 billion) in 2001 (Statistics

Canada, 2010).

Canada is a land of vast distances and rich natural resources, and the

country became a self-governing dominion in 1867 while retaining ties to

the British crown. Currently Canada follows a Capitalistic governance

system. Economically and technologically the country has developed over

the years in parallel with the US. Canadian culture has been influenced by

European (British & French) cultures over time, historically with a mixture

of Canadian first nations (aboriginal culture) and also it has been strongly

influenced by that of its linguistic, economic, and cultural neighbor United

States of America. Hence certain states in Canada tend to use French as

their main language. Further (Central Intelligence Agency, 2010). The

breakdown of the

The nuclear and extended family can both be seen in Canada, where the

nuclear family consists of parents and children and the extended family

consists of grandparents, uncles, aunts and cousins. Recently a larger

participation level of females can be identified in the labor market and with

the evolvement of time issues such as late marriages, living together and

increased divorce rates can also be seen in the Canadian society.

Successful education is a must for Canadians and governments assist the

nation by providing many opportunities for education such as by proving a

number of education institutes such as schools, colleges and universities.

Education is free and is a compulsory requirement for children bellow 17

years. Canada has been successful in maintaining a literacy rate of 99% up

to date. Hence they will be evenly capable of evaluating the nutritional &

exotic aspects of Serendib Spicy Chocolates.

Spicy chocolates have gained recognition in many parts of the world and

are rapidly gaining the attention of chocolate fanatics throughout the globe.

Sri Lanka has a strong relationship with spices; it is one of the most

important spice trading hubs of ancient times. Therefore Sri Lanka's

reputation with regard to spices gives us the added advantage to link the

Serendib Spicy Chocolates with the country's reputation which can be a

highly effective advertising tool.

Canada's chocolate imports amounted to approximately US$ 676 million in

2009 & this gives us an idea of how large the industry is thereby showing us

that the market is penetrable. The climate and weather conditions in

Canada are very cold it will also add up as an advantage for our company as

spices can help to build heat in the body, another factor is that there is a

large Sri Lankan community in Canada, who would instantly like to

consume Sri Lankan products, which will also be helpful for word of mouth

publicity among other nationalities in the country.

Toronto - The fourth largest airport in North America, the Toronto Pearson

International Airport is considered as the busiest airport in Canada. Apart

from the Toronto Pearson International Airport, other airports such as the

Toronto City Centre Airport and three more notable airports fuel the air

transport system in the city. A network of railway systems in Toronto

notably, the two national railways, CP Rail Systems and Canadian National

Railways. Road transport in Toronto is equipped with multi lane

expressways which connect to various other Canadian cities and the U.S

borders of Michigan and New York. The road system is also equipped with

highways such as Highway 401, one of three busiest highways in North

America that provides access to North Toronto, The Queen Elizabeth Way

(an east-west highway) and the newly constructed Highway 407. The Port of

Toronto is another important gateway to the city and is widely used for the

transportation of products to Ontario, northwestern Quebec, the U.S cities

of New York and Ohio. It is also regarded as a full multi-modal distribution

centre (Toronto, 2010).

Vancouver -Vancouver is a heaven/ the main gateway for trading

connections between Asia and North America as it is the closest port to Asia

from North America. The Vancouver Port is regarded as the most lucrative

trading centers in North America and is considered as one of the world's

best deep water harbors. Vancouver also has three major railway networks

to markets in various parts of Canada, US and Mexico. It also has the

closest access to the US-Canada border making it just an hour's drive for

the transportation of products by road. Duty free access to the US and

Mexican markets for firms operating in the British Colombia is also possible

owing to the North American Free Trade Agreement (NAFTA). The

Vancouver International Airport has the lowest landing fees in Canada and

is also used widely for the transportation of passengers and cargo

(Vancouver Economic Development Commission, 2010).

The preference for chocolates in Canada can be owed to a great extent to

regional interest. For instance in Quebec consumers prefer chocolates

which are sweeter in flavor and match chocolates with wine while French

Canadians in cities such as Montreal prefer chocolates that are darker and

organic. Although traditionally Canadians preferred milk chocolates there

has been a shift from milk chocolates to darker chocolates over the past few

years (Carr, 2003) Owed to the fear of obesity which is gradually becoming

a major concern in Canada taking into account that more than 17 percent of

adults were obese in 2008 according to the Community Health Survey. This

is mainly because of cultural adjustments.

Canadians are increasingly shopping online and engaging in e-commerce as

a way of purchasing products and services. Therefore many retailers are

now using online marketing as a means of making their products available

to Canadian consumers. By making rich product content available to

shoppers and offering a variety of catalogues online to customers, the

choice of products and customer satisfaction is secured. Canadians just like

their US counterparts appreciate a wide variety of choice, influx of branding

and multiple channels to shop owing to their fast paced and dynamic

lifestyle.

Advertising of chocolates is mainly done through broadcast media although

print media campaigns are also used widely to reach the target market.

Selected television channels that broadcast infomercials are commonly used

to advertise products while advertising on day time and prime time

television also takes place. In addition creative billboards including 3D

billboards depicting images of tempting chocolates are also used for

advertising campaigns which are evident in highways and busy commercial

areas. Online advertising is also becoming a popular option for chocolate

marketers to advertise their products and services. Please refer Appendix

02

Some of the commonly used sales promotion strategies for chocolates in

Canada are through the sponsorship of sports teams, events, samplings etc.

For instance Hershey's Canada Inc. and the National Hockey League

entered into a three year partnership which also involved the unveiling of

the Hershey's Chocolate Stanley Cup. ("NHL, Hershey Canada sign three

year partnership deal", 2010).

Chocolate tasting events are also frequently organized in Canada by

independent chocolate tasting companies. For instance "A Taste for

Chocolate" organizes chocolate tasting events in the greater Toronto area

providing an opportunity for a variety of chocolate makers from across the

globe to showcase their chocolates (A Taste for Chocolate, 2010).

The competition in the confectionary industry is very high especially when it

comes to chocolates. The market is dominated by large multinational firms.

"Nine multinational companies produce the bulk of confectionery products

sold in the global marketplace: Cadbury, Ferrero, Hershey, Kraft, Leaf,

Mars, Nestle, Warner-Lambert, and Wrigley. Each of these maintains a

strong presence throughout the North American market". (SPARKS

Companies Inc, 2001)

The leading competitors would be well known chocolate manufacturers

such as Cadbury who has a 7.3% of the world chocolate market, Mars with

14.7% Nestle with 12.5%, Hershey with 8.3% and Kraft foods with 7.8% of

the world chocolate market (The United States Securities and Exchange

Commission, 2010). For a graphical representation of the market shares of

competitors refer Appendix 04. These manufacturers have been in the

chocolate industry for decades and have established them selves in the

chocolate industry globally. Therefore, a high amount of competition is to be

expected in Canada.

The manufacturers mentioned above have hundreds of brands. Every single

brand is individual and unique. All the brands have different flavors and

recipes to cater to the needs of the customers. Some of these brands are fat

free and sugar free for individuals are who are concerned about their

health. Chocolates are marketed targeting different age groups and also can

be seen in different packaging due to the high competitiveness in the

industry.

The above mentioned competitors are multinational companies and they

manufacture their products in various parts of the world including Canada.

Exporters of chocolates usually use various retailers as middleman when

involved in distribution. This is mainly because the channel of distribution of

the products to consumers is faster owing to push strategies which retailers

customarily used. Since chocolates are relatively long lasting compared to

other perishable food items, the distribution of the product would still have

to be executed with speed and safety which meets Canadian standards and

regulations.

According to the International Cocoa Organization (ICCO) global chocolate

sales were US$74 billion in 2006. When adjusted according to the inflation

rates it amounts to 20% increase over the past 5 years (Suite 101.com).

Global chocolate sales are about 27% for chocolate-covered snack bars,

23% for solid molded bars or tablets, and 20% for boxed chocolates (gift

boxes). Also 14% of global chocolate sales are for bagged or boxed products

like M&Ms, 11% for seasonal theme items like chocolate Easter eggs, 3%

for chocolates with toys, and 2% for regional chocolate specialties. The

largest share of chocolate products (45%) is consumed by Western

countries compared to the U.S. where 20% of global chocolate sales are

made. (Suite 101.com)

Canadian chocolate exports were down 16.4% to $551.2 million during the

first 9 months of 2009. But Canada was a net importer (i.e. imports

exceeded exports) in its trade with certain countries for chocolates.

Therefore one can say that our company has substantial ability to export our

brand of spicy chocolates to Canada because there is a need or demand for

chocolate imports.