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Drizzle ChocolatesExporting Chocolate from Britain to China : 

Drizzle ChocolatesExporting Chocolate from Britain to China Justin Kelly Jacob Augustine Ashley Fiorini

Company Profile : 

Company Profile Manufactured in Britain Confectionary capital of the world Export high-quality candies, namely chocolates from UK to China Branded under the “Drizzle Chocolates”

China : 

China 1.3 billion people Majority of population in the eastern coastline Political risk: Chinese communist party Legal system: Civil Law Intellectual property rights

China’s Culture : 

China’s Culture Strong family importance High-Context Harmony Face Guanxi

Demographics : 

Demographics Born between 1946-64 1965-76; during China’s development Post 1976; have grown up in increasingly wealthy and stable environment -Group 1 and 2: -price sensitive and conservative -Group 3: -consumption-oriented; experiment, style conscious, sensitive to advertising Target Market: Group 2 and 3

Location : 

Location Start in Chengdu and satellite cities Escape higher cost (e.g. Shanghai)

Market Overview : 

Market Overview Competitors: Ferrero Rocher of Italy Lindt of Switzerland Leonidas of Belgium Guylian of Belgium Cadbury Schweppes Wm. Wrigley Jr. Nestle SA Mars Inc. Domestic Manufacturers

Market Overview : 

Market Overview Growth 10% annually 52.4 % chocolate consumed in the Chinese market used as gifts

Strategy : 

Strategy Product Core Component: chocolate Streamlined operations; easy to add flavors, designs, nuts, fruits Product diversification (Seasonal) Specific Packaging Requirements: Clear statement of the type of food Brand name Trademark Manufacturer’s name and address Country of origin Ingredients Date of production Sell-by-date Packaging Bright colors Holiday coordination Metallic materials Avoid white (symbolizes mourning)

Strategy : 

Strategy Promotion Television ads http://www.youtube.com/watch?v=RhiSa-WW9kU Magazines Social Networks Incentives for repeat customers Partnerships with MTV, CCTV, etc. Personal selling Focus on romantic and affluent lifestyle Target significant holidays

Strategy : 

Strategy Significant Target Holidays:

Strategy : 

Strategy Price Higher than grocery store brands Target demographics not price sensitive High Price = High Quality Safety

Strategy : 

Strategy Place Franchise stores High-end department stores Hotels Restaurants

Marketing Problems Foreseen : 

Marketing Problems Foreseen Traditional tastes prefer sweets as desserts Changes driven by youth and Western influence High costs of entrance into large cities Strict customs Obtaining loans Health Melamine scares

Distribution : 

Distribution Mode Selection Airline Short shelf life and appearance Chilled Packing Cooled storage containers Channels of Distribution Retailers & Franchising Cut out Wholesalers & Middlemen Reduce overhead, leverage, proximity

Distribution : 

Distribution Transfer of goods Freight forwarding through London Gatwick Airport Arrive at Chengdu Airport Goods are transferred to company trucks at airport and delivered to warehouse Delivered to end retailer through logistics network (i.e. Trains---trucks----retailers)

Terms of Sale : 

Terms of Sale Ownership transferred upon delivery to franchisees and all other locations (FOB) Receipt of Payment Letter of Credit

Documentation : 

Documentation General Documents Commercial Invoice Consular invoice Certificate of Origin Inspection Certificate Shipper’s Export Declaration Export Packing List Warehouse receipt Insurance Certificate Bill of Lading Chinese Entry Documents Import Declaration Form Commercial Invoice(s) Bill of Lading Approval document for importation of food Support for trade agreement being utilized

Long-Term Vision : 

Long-Term Vision Expand into hub cities (Shanghai, Beijing, Hong Kong) Possible alliances (hotels, restaurants) IPO Private cargo plane

Questions? : 

Questions?