Free Introduction to Market Essay Sample
How big is the UK chocolate market?
The UK chocolate is considered as the largest in the whole European market. "According to most market research, the UK has the second highest chocolate consumption per person in the whole European region with the confectionary market being worth an estimated 4 billion pounds". According to valid opinions, a greater number of people prefer milk chocolates standing at 66%. 22% of the population prefers dark chocolate while 12% prefer white chocolate. This reveals a rather interesting phenomenon implying that in the UK, chocolate is a luxury that people cannot possibly live without.
In the UK, older people are found to consume more confectionary as well as chocolates than children. "The ascertained age of chocolate consumption in the country is 55 years where it was found out that this age group is responsible for the consumption of chocolate worth 700 pounds annually. According to Eccles, 21% of the total chocolate and confectionary consumption have been found to be consumed by people who are above the age of 55 years (Eccles & Hendry 1992).
Since the introduction of the luxury brands in Britain, the older generation has become the main target audience in the chocolate market. The overall outlook of the chocolate market is such that the penetration in the market is also very high. This means that chocolate bars are available in almost all the parts in the UK which. The consumption and spending patterns in the UK is responsible for the chocolate market hype.
Demand for chocolate and confectionary
According to Philip, despite recent cutbacks in the market, chocolate sales have remained steady in the country (Philip, 2009). The projected sales by 2015 are 4.1 billion by 2015 with the sales having previously increased by 9.2% between 2007 and 2009. Despite the recent economic recession, the consumption of chocolates and confectionary has remained steady depicting that chocolate is one product that the UK consumers would not give up today.
There is a common link between women and chocolates with over 91% of women admitting to chocolate consumption as compared to 87% of men. With regards to chocolate consumption, the older generation is responsible for a greater percentage of chocolate consumption in the country. This implies that the target group for the JFL chocolate and confectionary products is the relatively older generation particularly above 50 years and especially among the female generation. This is with respect to the change in lifestyles where the relatively older generation has been found to consume more chocolate and confectionaries products than the younger generation.
The chocolate product consists of milk and white chocolate which are among the preferred chocolate products in the UK. These are made from cocoa beans that are roasted and then treated with alkali chemicals. The chocolate is then bulked with hydrogenated oils, animal fats, refined sugar, dairy products and chemical preservatives.
Brand image and pricing objective strategy
The brand image used depicts the cocoa products as part of the ingredients in the chocolate. This pricing is appealing to the UK consumers and is with respect to the changing trends where the dark chocolate is reclaiming its place in the heart of the nation as it has been found to have some measurable health benefits. The price of chocolate and chocolate products varies depending on the product. Consumers are given free delivery and a 4 pounds discount purchases above 30 pounds such as the purchases of the chocolate birthday cake.
Retailing and distribution objectives and strategies
Apart from the major distribution channels, the chocolate products are delivered to the customer after the initial order through courier. This is a 7/7 operation and the initial delivery is done 4 hours after the ordering process. The main distribution point is in London which is the most competitive post to increase the efficiency of distribution to other parts such as Mayfair and Belgravia.