Table of Contents
Contents:
Executive Summary
2
Introduction
Mode of Business
6
Market Analysis
6-8
Customer Profile
9-10
Marketing Plan
10
Marketing Strategies
10-11
Tackling Self- Reference Criterion
11
SWOT Analysis
11-12
Organizational Chart
13
Finance
14
Conclusion
14
Page
3-6
13-
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References
15
Executive Summary
At Neuhaus you can find bliss in the form of Belgium chocolate.
The company offers a variety of chocolates and other sweets
through some 2,000 shops in 50 countries around the world.
Customers can also order chocolates, including truffles and
liqueur chocolates, with personalized gift boxes online. Neuhaus
was the first business to make filled chocolates called pralines,
which the company still makes by hand. Jean Neuhaus started the
company when he and his brother opened a pharmacy that sold
candy in Brussels in 1857. Neuhaus sells about 2,400 tons of its
products every year.
Exotic Food Limited is the franchisor for Neuhaus Bangladesh.
Exotic food Limited plans to build a strong market position in
Bangladesh due to its position in the chocolate industry of
Bangladesh making it the first international chocolate brand
entering Bangladesh to serve its people with their renowned
heritage of quality chocolates and sweets.
On behalf of Neuhaus, Exotic Food Limited is promising to offer
quality and tasteful chocolates at a competitive price to meet the
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demand of the middle to higher local demand of the Bangladesh
market.
To succeed with our goal, Exotic Food Limited will make sure the
chocolates served to our customers carry the exact precise
heritage Neuhaus promise to offer internationally. Taste and
quality cannot be a compromise. In order to open up to the new
broad market, we will undergo beaneath the line marketing
theories grabbing potentioal customers from a niche market. We
will make sure we build roots to the community.
Once the root is set we will carry the name of Neuhaus and
diversify our product line to serve our valued customers with all
the items available in the Neuhaus inventory.
Introduction
Belgium is famous for beer, chocolate, waffles and French fries
with mayonnaise
and we have
chosen to go for Belgium handmade chocolates or Pralines.
Pralines are basically chocolate pieces filled with a soft fondant
centre. They nearly always contain a hard chocolate shell with a
softer (sometimes liquid) filling. The filling can be butter, liquor,
nuts, marzipan, or even a different kind of chocolate
Brands like Cte d'Or, Neuhaus, Leonidas and Godiva are famous,
as well as independent producers such as Burie and Del Rey in
Antwerp and Mary's in Brussels. Among all these brands we have
chosen Chocolatier Neuhaus. Neuhaus is a manufacturer of luxury
Belgian chocolates, biscuits and ice cream. The company was
founded in Brussels in 1857 by Jean Neuhaus, a Swiss immigrant,
who opened the first store in the Galeries Royales Saint-Hubert. In
1912, his grandson, Jean Neuhaus II, invented the chocolate
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bonbon or praline. Today, Neuhaus has over 1,500 selling points
in 50 countries. All Neuhaus products are still made in
Vlezenbeek, near Brussels, and are exported worldwide. In 2000,
the company was named Accredited Supplier to the Belgian
Crown.
We have decided to open up a small Neuhaus boutique shop in
Banani. We will specialize in premium chocolate, fine handmade
chocolates, and gift baskets. Our full Neuhaus experience is
complemented by an assortment of unique, exclusive designs, all
suitable for gift giving or indulgence for local customers or
tourists. Our goal is to be a destination store for visitors, and a
resource for locals seeking baking chocolate and gifts, knowledge
of chocolate.
Below is the list of Neuhass wide variety of fillings and
flavors:
BUTTERCREAM
A filling comprising of a subtle blend of butter and natural
flavorings mixed to give a fine, light mousse.
CARAMEL
Caramel is a mixture produced when granulated sugar is cooked
until it melts and becomes a thick, clear liquid that can range in
color from golden to deep brown.
FONDANT SUGAR
A blend of sugar and natural flavors, beaten together to give a
really creamy texture, ready to be used in a pralin.
GANACHE
A filling created by mixing chocolate with milk or cream. It is
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characterized by a smooth texture with a strong cacao flavor
(depending on the percentage of milk or cream). Natural flavors
can be added, such as caramel, liquor, coffee, fruit or any other
taste that has inspired the chocolatier .
GIANDUJA
A smooth mixture made with hazelnuts and milk or dark
chocolate. The difference between a pralin filling and gianduja
filling lies in the proportion of hazelnuts used in the recipe.
Gianduja fillings are made with a minimum of 20% hazelnuts,
while it could be less for a pralin filling. The milk chocolate
added to the mixture gives the blend a pronounced refinement
and an incomparably smooth character.
MARZIPAN
A filling blended of finely-ground almonds and sugar, slowly
ground together and then coated in chocolate. For its marzipan,
Neuhaus uses a minimum of 50% almonds from Faro in Portugal, a
region renowned for its high quality almonds.
MOUSSE
A blend of butter and real chocolate, whipped together to produce
a light, frothy filling.
NOUGATINE
A hard biscuit with irresistible flavor. This delicacy is made of
sugar and hazelnuts, with a taste of caramel. This is the essential
ingredient of the jewels of Neuhaus Irresistibles: Tentation,
Caprice, Dsir, Plaisir and Sduction.
PRALIN
Not to be confused with the French words praline, which means
chocolate. Pralin is a filling made out of ground, roasted,
caramelized hazelnuts and/or almonds with sugar. Chocolate may
sometimes be added for the texture. The Neuhaus range includes
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20 different pralins.
TRUFFLES
A smooth mixture of chocolate, butter and sugar, drenched in
dark chocolate and sprinkled with cocoa, flakes of chocolate or
almond shavings. Irregular in shape but generally round, these
small temples of sensual pleasure come in a wide variety: coffee,
cognac, speculoos, Marc de Champagne or other rich flavors.
As our culture doesnt allow the use of liquor so our chocolates
will not include any liquor and we will also make gift packs
whosoever want to buy a customized one then that can be
arranged as well. As per the instructions of Neuhaus we will also
follow these rules for personalized gifts:
A message card or a sleeve wrap with your logo (if company) and
personal message. We are glad to offer you a full service from
creation to printing as from 100 pieces.
Your choice of your preferred pralines to fill in your favorite box.
Your choice of wrapping paper according to the seasonal
availability.
Individually designed chocolates for a caterer, customer or
corporations is available upon request.
Orders should be given three weeks in advance. We will deliver
any place in Dhaka if the order is above BDT. 2000
We will guarantee good quality chocolates with beautiful
packaging. Our target customers are any age group especially the
young adults and modes of payment will be cash and we will
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accept credit cards. Our shop will remain open from 11:00 am to
10:00 pm and all the customer queries will be answered in that
time, people who will like to see us online can log in to our
facebook page: www.facebook.com/Neuhasbd.boutique
Mode Of Business
Our Franchise Neuhaus boutique chocolate shop will be situated
in Banani, we have chose to franchise Neuhaus chocolate shop
because:
There is no chocolate shop in Bangladesh selling Belgium
chocolates
In this way the quality and brand name will be followed
We will be updated with the ingredients or any changes made
accordingly.
We have the opportunity to prove our capital and earnings
Even if we follow a system we are still the owners and can decide
what will take place
Usually banks are supportive at franchising
Support and security
Less likely to fail
Benefit from the advertisement and promotions by the Franchisor
Exclusive rights
Risks shared
Market Analysis
This section of the analysis will review the economic climate of
Bangladesh, the service and retailing industry, the customer
profile, the competition that the business will face as it progresses
through its business operations and a Marketing Plan.
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Economic Overview of Bangladesh:
Bangladesh's economy has grown 5.8% per year since 1996
despite political instability, poor infrastructure, insufficient power
supplies, corruption, and slow implementation of economic
reforms. The gap between income distributions amongst its
population increased persistently while Bangladesh remained a
poor, overpopulated, and inefficiently-governed nation. However,
more than half of GDP is generated through the service sector.
The growth of (food based) service industry of Bangladesh was
resilient during the 2008-09 global financial crisis and recession
which indicates that minor setbacks in global economical and
financial conditions will not create an obstacle for our business.
Service (food based, esp. dessert) Market and Competitive
Analysis:
Neuhaus Belgian Chocolate Parlor is the only premium chocolate
selling parlor in Bangladesh. We provide premium handmade
Belgian Praline, which, by the way, is known as the best chocolate
producers of the world. Evidently, a sudden increase in the
popularity of exquisite dessert items amongst our target market
i.e. Upper-Middle class and Upper class, have successfully
grabbed the attention of potential customers and investors. The
total number of new entrant of Luxury Coffee shops has exceeded
the total number of Pastry shops and Ice-cream parlors recently.
Intense competition in these segments is making a greater
opportunity for Neuhaus Belgian Chocolate Parlor to conveniently
enter the market of boutique chocolate parlor in Dhaka,
Bangladesh.
We have great competitive advantage of being the one and only
Chocolate Parlor, and it is not possible for a local chocolate
producer to beat us in quality and taste, being one of the best of
the best chocolate producers of the world, we proudly assure that
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there is no match of authenticity and quality of our products to
any other chocolate producers in Bangladesh. The following table
lists the number of competitor Bakery shops, Coffee shops, Icecream shops and their location in Dhaka:
Competitive Bakery
Shops
California Pastry Shop
Coopers
Mr. Bakers
Kings Confectionary
Captains World
Shumis Hot cake
Competitive Coffee
Shops
Ajo
Barista Lavazza
BitterSweet Caf
Caf Italiano
Caf Mango
Caf Nemo
Cilantro
Coffee World
Cofi 11
Crepe-Au-Lait
Daily Treats
Fiesta Caf and
Lounge
Gloria Jeans Coffee
North end
Ice-Cream Parlor
ANDERSON'S ICE
CREAM
BASKIN-ROBBINS
Location of their outlets in Dhaka
Dhanmondi, Uttara, Gulshan, Wari
Dhanmondi, Uttara, Gulshan, Tejgaon,
Bashundhara, etc
Banani, Dhanmondi, Uttara
Banani, Dhanmondi
Dhaka Cantonment, Uttara
Banani, Uttara, Bashundhara,
Gulshan,etc
Location of their outlets in Dhaka
Dhanmondi
Gulshan, Banani
Gulshan
Banani
Gulshan, Banani, Uttara, Dhanmondi
Banani
Banani
Gulshan, Banani, Uttara
Gulshan
Gulshan
Gulshan
Banani
Gulshan
Badda
Location of their outlets in Dhaka
Banani
Gulshan
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CLUB GELATO
MOVENPICK
THE CREAM & FUDGE
FACTORY
Banani
Gulshan
Banani
Customer Profile
While we anticipate a split between locals and tourists, all
members of our target market are between the ages of 18 and
60, and have a moderate to sizable disposable income. Neuhaus
will provide the local upper-middle-class and high class
community with a place to socialize, indulge themselves with fine
chocolates, find unique chocolates and gift baskets for gifts. For
tourists, Neuhaus will be a destination stop in their tour of the
town, whether as a break from shopping, just want to drop by, or
a place to buy unique gifts as souvenirs of their holiday.
These customers will be glad to pay the premium price for our
products in exchange for the high quality, great taste, and sense
of prestige they receive. In fact, higher prices and exclusivity for
some items may encourage higher sales - these kinds of
customers eagerly accept the idea that higher prices equal higher
quality, and want to buy "only the best," regardless of whether
their palate is educated enough to appreciate the subtle
differences.
Geographic
City:
Population
total
of
city:
Population
growth
rate:
Dhaka, Bangladesh.
14.251 million (July 2012 est.)
1.579% (July 2012 est.)
27%
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Urban %:
Demographic
Age:
18-35, 35-60, 60 above
Gender:
Male, female, other
Nationality:
Bangladeshi
Religions:
Muslim 89.5%, Hindu 9.6%, other 0.9% (2004)
Income
of
target
Upper middle class (BDT. 70,000 to 100,000), Upper Class
Customers:
(BDT. 100,000 to 1000,000)
(minimum to maximum) 56.8% of total population
Literacy:
All educated including school level, high school, college, honors,
Education:
masters, PhD
Psychographic
Social class:
Standard of living:
Upper-middle, Elites
High, Very high.
Behavioral:
Food lovers:
Dessert Lovers:
Chocolate Lovers:
90% out of target customers
Most food lovers
90% and above of Dessert lovers.
Marketing Plan
Neuhaus intends to maintain an extensive marketing campaign that will
ensure maximum visibility for the business in its targeted market. Below is
an overview of the marketing strategies and objectives of Neuhaus Belgian
Chocolate Parlor.
Marketing Objectives
Build strong relationship with our customers. Establish
relationships with event planners so that the company can
produce gift baskets for guests in parties.
Implement a local campaign with the Companys targeted
market via the use of flyers, local newspaper advertisements, and
word of mouth advertising.
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Develop an online presence by developing a website and
placing the Companys name and contact information with online
directories. We will go for viral marketing through social
networking sites, so our customers will be able to follow us
through FaceBook, Twitter, Instagram, Pinterest and many more.
Marketing Strategies
Neuhaus intends on using a number of marketing strategies to
ensure maximum visibility for the premium chocolate store.
Foremost, we intend to source a highly visible retail location i.e.
Banani, to feature highly visible signage that will inform the public
of the Neuhauss offerings and its grand opening. Neuhuas will
also maintain a sizeable amount of print/media advertisement in
popular newspapers, magazines, and flyers that are distributed
throughout the community. We will also develop ongoing
relationships with event planners and corporate gift companies
that will outsource their candy basket needs to the Company.
These relationships will be an invaluable source of referrals for the
business. Finally, we intend to develop its own online website that
will showcase the Neuhaus Belgian Chocolate Parlor, its hours of
operation, contact information, and location information, prices of
our product and services. E-commerce functionality will be added
to this website so that people from all over the world, so they can
order gift baskets for local and long distance delivery.
Tackling Self Reference Criterion:
The Self Reference Criterion (SRC) refers to the assumption that
goods and services successfully sold in a domestic market will be
equally suitable in a foreign market and do therefore not require
any alterations whatsoever. This assumption more often than not
leads to market failure. Most important factors to consider while
making a cross cultural analysis is to identify differences between
two cultures and the adaptation to environmental differences
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from one market to another. In this case, we identified only one
difference, which has been mentioned earlier, is the fact that in
Bangladesh we cannot sell chocolates with liquor in it. Belgians
love to put liquor in the chocolate but in Bangladesh liquor is
considered as Haram which means that it is forbidden. As it is
mentioned in the demographic analysis of Bangladesh, 89.5% of
the total population is Muslim, moreover it is illegal to sell liquor
related product in Bangladesh. This is one of the biggest
advantages of Franchising. Risk of Self- Reference Criterion (SRC)
is lower in Franchising because the franchiser provides standard
packages of product, system, and management services, while
the franchisee provides market knowledge, capital, and personal
improvement in management. Thus the share of SRC risk is taken
by the experienced management of Bangladesh, who can provide
reliable and proper cultural analysis of Bangladesh to the
Neuhuas management of Belgium. This is how we tackle SRC and
thus franchising is still expected to be the fastest-growing marketentry strategy.
SWOT Analysis
Strength:
1. Heritage of Belgium: Belgians are known as some of the best
chocolate producers of the world
2. Competitive advantage: Neuhaus has a competitive advantage
of being the one and only Luxury Belgian Praline produces in
Bangladesh.
3. Taste and Quality: the ingredient for our products are imported
from Belgium. The management as well as the chef of Neuhuas
Bangladesh is personally trained by the management and chef of
Neuhaus Belgium
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4. Services: Premium and boutique handmade chocolate to meet
the customers demand. Different types and forms of packaging,
gift packages, etc altered according to the customers need.
Weaknesses:
1. Price: cost of importing our ingredients is high which is making
the prices of our chocolate higher.
2. High prices due to a lack of productive efficiency and ability to
produce on a large scale (Economies of scale)
Threat:
1. New entrants: Entrants of other Belgium chocolate producers in
the market of Bangladesh will increase the competition.
2. Economic and political instability: Regular strike, inflation,
corruption can make it difficult for Neuhaus to do business in
Bangladesh.
3. Increase in Tariff: If government increase tariff, the cost of
production will increase further.
Opportunities:
1. Untapped market: There are no other premium Belgian
chocolate stores in Bangladesh, therefore this is a niche.
Hierarchy of Neuhaus Boutique Chocolate
Shop
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Fi
Owners
Marketing
Manager
Advertising
Sales
Supervisor
Accounts &
Purchase
Manager
Head
Choclatier
Trainee
Choclatier
Server &
Dishwasher
Server &
Dishwasher
nance
The rent to open a Neuhaus Chocolate store in around Banani is
around BDT. 50,000 to 75,000 per month (Depending on the store
size and location) the initial franchise fee is of 25000 which is
around 2,500,000 BDT. The monthly ongoing license fee is a flat
350 which is around 35,000 BDT. This will entitle us to receive 1
week of training at Neuhaus Headquarters and 1 week of training
at our location, all the machinery described below, assistance on
production procedures and store set-up, and future updates on
new products and marketing strategies from Neuhaus will help to
make our new venture a success.
Equipments:
Tempers/coaters Chocolate Melter Electric Cooker
Assortment of Chocolate Molds
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Sheet Pans
Work Tables
Bulk Chocolate to Initiate Production
Glass Mica Display Cases and Matching Work Station
Electronic Scale
Itemized Cash Register
Slat Wall Units
Plastic Candy Trays
Packaging Supplies
Refrigerators
Custom Shopping Bags
Custom 2 Lb., 1 Lb. and 1/2 Lb. Boxes
Education of the trade (2 week training):
Training in Preparation, Cooking, and Production
Training and Assistance in Production Set-up
Training and Assistance in Marketing and Sales
Conclusion
Bangladesh has a growing market for food, esp. dessert items,
and it demands the best chocolate producers of the world. We are
here not only to do business but also to incorporate the best of
our culture together. Neuhuas is proud to be in Bangladesh and
hope to stay here to provide all chocolate lovers with some of the
most delicious chocolates of Belgium and of the world.
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References
http://www.neuhauschocolates.com/en-US/
http://en.wikipedia.org/wiki/Neuhaus_%28chocolatier%29
http://www.southerncandymakers.com/history_of_pralines
http://en.wikipedia.org/wiki/Praline
http://www.chocolate-history.co.uk/belgian-pralines.htm
http://www.eupedia.com/forum/threads/24162-Belgian-chocolate-amppralines
http://www.everyculture.com/A-Bo/Belgium.html
http://en.wikipedia.org/wiki/Bangladesh
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