A 12 page paper that begins with data regarding the confectionery industry with a focus on chocolate. Selected fiscal data for four companies are presented. Selected demographics of Detroit and the nation are included. Five candy distribution channels in Detroit are identified. A SWOT of the proposal is included with comments about a FMEA analysis. The proposal is analyzed and a recommendation made. Statistical data included. Bibliography lists 22 sources.
Name of Research Paper File: MM12_PGmarsch.rtf
Unformatted Sample Text from the Research Paper:
5.7 percent increase over the previous year. The major segments in this market are chocolate, sugar confectionery, and chewing gum (U.S. Dept. of Agriculture, 2004). Chocolate is the most popular
confectionery product, a conclusion based on both retail sales volume and value (U.S. Dept. of Agriculture, 2004). Another fact from this report is that premium chocolate is preferred by consumers
(U.S. Dept. of Agriculture, 2004). The per capita consumption of chocolate increased by 1.2 percent in 2004 to a value of $52.70 per person (Euromonitor International, 2006). Chocolate consumption
is expected to grow by 3.8 percent by 2009 with a total value of $15.9 billion (Euromonitor International, 2006). Grocery stores are the largest distribution channel (Euromonitor International, 2006).
In fact, supermarkets accounted for over 20 percent of all chocolate sold in the U.S. in 2004 (Euromonitor International, 2006). (Euromonitor International, 2006). The two largest confectionery manufacturers are Hershey
Foods Corp and Mars (U.S. Dept. of Agriculture, 2004). In fact, the industry is referred to as a duopoly because these two companies dominate the market (Euromonitor International, 2006). Together,
the two companies hold between 40 and 50 percent of the domestic market share (U.S. Dept. of Agriculture, 2004). The next largest companies, in order, are: "Wrigley, Nestle USA, Cadbury
Adams, Russell Stover, Kraft, and Brach & Brock" (U.S. Dept. of Agriculture, 2004). Together they hold about a 20 percent market share (U.S. Dept. of Agriculture, 2004). The U.S. exports
about 231,000 tons of confectionery products with a value of $695 million each year (U.S. Dept. of Agriculture, 2004). Of that, chocolate exports are valued at $400 million (U.S. Dept.
of Agriculture, 2004). More than half of the $1.8 billion confectionery imports are chocolate products (U.S. Dept. of Agriculture, 2004). As much as that sounds like, it represents only