Meet The World's Best Chocolatiers And
Taste Their Works Of Art
Functional Strategy of Chocolate Industry
Functional strategy is a plan of action to strengthen an organization’s Functional and
organizational resources, as well as its coordination abilities, in order to create core
competencies.” Corporate and Business strategies give birth to functional strategies, which
are implemented in the organization through functional and operational implementation.
During the production process, chocolate is manufactured from cocoa butter.
The all-time favorite confection recorded retail sales of about 98 billion U.S.
dollars worldwide in 2016. In that year, 36 percent of all chocolate sales were
generated in Western Europe.
FUNCTIONAL STRATEGIES OBJECTIVE
• Profitability:- Producing at a net profit in business.
• Market share:- Gaining and holding a specific share of a product market.
• Human talent:- Recruiting and maintaining a high- quality workforce.
• Financial health:- Acquiring financial capital and earning positive returns.
• Cost efficiency:-Using resources well to operate at low cost.
Product quality:- Producing high-quality goods or services.
• Innovation:- developing new products and /or processes.
• Social responsibility- Making a positive control of society.
Chocolate Industry
Chocolate, prevalent throughout the world, is a steadily growing, US$50 billion-a-year worldwide
business.[107] Europe accounts for 45% of the world's chocolate revenue, [108] and the US spent
$20 billion in 2013.[109] Big Chocolate is the grouping of major international chocolate
companies in Europe and the U.S. U.S. companies Mars and Hershey's alone generated
$13 billion a year in chocolate sales and account for two-thirds of U.S. production in 2004.
[110] Despite the expanding reach of the chocolate industry internationally, cocoa farmers and
labourers in the Ivory Coast are unaware of the uses of the beans; the high cost of chocolate
products in the Ivory Coast make it inaccessible to the majority of the population, who do not
know what it tastes like.
Types of functional strategies
• Marketing strategy
Manufacturing Strategy
• R&D strategy
• HRM strategy
• Financial strategy
• Information management strategy
Manufacturing Strategy
Manufacturing Strategy determines how and where a product or service is to be
manufactured, the level of vertical integration in the production process.
Step 1: Cleaning
The process of making chocolate starts with the cocoa beans being passed through a machine that removes dried
cocoa pulp, pieces of pod and other extraneous material.
Step 2: Roasting
To bring out the characteristic chocolate aroma, the beans are roasted in large rotary cylinders.
Step 3: Shell Removal
The cocoa beans are cooled quickly and their thin shells, which have become brittle by roasting, are removed.
Step 4: Nibs are ground
The nibs, which contain about 53 % cocoa butter, pass through refining mills and are ground between large grinding
stones or heavy steel discs creating a cocoa paste.
Step 5: Cocoa is separated from Cocoa Butter
Up to this point, the manufacturing of cocoa and chocolate is identical. The by-product of cocoa, cocoa butter, is the
essential component of chocolate
Step 6: Other ingredients are added to the Chocolate Liquor
Milk chocolate is made by adding milk, sugar, cocoa butter and other ingredients to the bitter chocolate liquor.
Step 7: Conching machines knead the Chocolate Paste
This process develops flavors and changes the texture during controlled temperatures. It’s the last and most
important refining process
Step 8: Chocolate is Tempered by Heating, Cooling & Reheating
This thickens the chocolate and imparts the right flow properties for filling the moulds.
Step 9: Liquid Chocolate is Temporary Stored
A necessary step, conches are always filled with the largest amounts of chocolate for efficiency,
Marketing strategy
Life cycle of chocolate products is characterized by a prolonged saturation
phase because it has proven to be a timeless product. As a result, marketing
strategy should focus on not only winning consumer confidence but also
building long-term loyalty.
R&D strategy
Chocolate is a beloved sweet around the world - consistently sparking the imaginations and
insatiable demands of chocolate lovers.
Enacted in 1981, the federal Research and Development (R&D) Tax Credit allows a credit of up to
13% of eligible spending for new and improved products and processes. Qualified research must
meet the following four criteria:
• New or improved products, processes, or software
• Technological in nature
• Elimination of uncertainty
• Process of experimentation
HRM strategy
The strategic management of an organization’s human resource has been recognized as one of
the keys to business success. This particular strategy generally involved the optimization of the
employees’ potentials mainly through training and performance assessment.
Information management strategy
Production of chocolate has seen a constant growth in the recent past. Chocolate
manufacturing industry has been stable since 19th century when solid pieces were introduced.
Chocolate is one product that has continued to be loved by many people all over the world. It
falls under the category of most craved food products.
Product Branding Strategy
The company is going to roll out an ambitious scheme of expansion and customer base
growth.
Product Line
Chocolate falls under the category of food products. Therefore, consumers are very critical on
the ultimate impact of this product on their health.
Product and Target Market Strategies
Although the food industry market is viable, there are those organizations which have colonized
a substantive portion of the market.
Chocolate is one of the most popular food types and flavors in the world, and many foodstuffs
involving chocolate exist, particularly desserts, including cakes, pudding, mousse, chocolate
brownies, and chocolate chip cookies.
Types of chocolate
Several types of chocolate can be distinguished. Pure, unsweetened chocolate, often called
"baking chocolate", contains primarily cocoa solids and cocoa butter in varying proportions.
Much of the chocolate consumed today is in the form of sweet chocolate, which combines
chocolate with sugar.
Milk
Milk chocolate is sweet chocolate that also contains milk powder or condensed milk.
White
chocolate, alwthough similar in texture to that of milk and dark chocolate, does not contain any
cocoa solids that impart a dark color.
Dark
Dark chocolate is produced by adding fat and sugar to the cacao mixture.
Unsweetened
Unsweetened chocolate is pure chocolate liquor, also known as bitter or baking
chocolate. It is unadulterated chocolate: the pure, ground, roasted chocolate beans
impart a strong, deep chocolate flavor.
Distribution Channel Outlook
Supermarket & Hypermarket
Convenience Store
Online
Business Strategy
• Increase the width of chocolate consumption, through low price point packs and distribution focus.
• Increase depth of consumption, targeting regular chocolate consumers through generating impulse
and a dominant presence at Point of Sale.
• Maintain image leadership through a superior marketing mix.
• Be a significant player in the gifting segment, through occasion linked gift packs.
• Build critical mass in the sugar business by introducing value-added sugar confectionery products.
REFERENCE
https://www.ukessays.com/essays/marketing/marketing-strategy-for-chocolate-products-marketing-
essay.php
https://www.slideshare.net/NARENDRAKUMAR289/functional-strategies-69390525
https://www.researchgate.net/publication/323695002_Management_of_Chocolate_Industry
https://www.slideshare.net/ssuser221dda/business-strategy-of-cadbury-india-limited
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