RELAUNCHING

OF
“CHOC N BALLS”

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 GROUP MEMBERS:

Zara Ahmed (12083

Hina Baig (11655)
Mohammad Ali (12076)
Ismat (10284)
Haider (12060)
Uzair (11919)

SUBJECT: Marketing for managers

PROGRAM: MBA Spring 2019

REPORT SUBMITTED TO:

Alina Naqzi

DATED: 8th August, 2019

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 Contents
......................................................................................................................................................... 1
GROUP MEMBERS: ................................................................................................................... 2
SUBJECT: Marketing for managers .......................................................................................... 2
PROGRAM: MBA Spring 2019 .................................................................................................. 2
REPORT SUBMITTED TO: ....................................................................................................... 2
Alina Naqzi .................................................................................................................................... 2
DATED: 8th August, 2019 ........................................................................................................... 2
................................................................................................................................................. 2
ACKNOWLEDGMENT ......................................................................................................... 5
COMPANY PROFILE ................................................................................................................. 6
HISTORY ...................................................................................................................................... 6
MISSION STATEMENT ............................................................................................................... 7
VISION STATEMENT .................................................................................................................. 7
BRAND......................................................................................................................................... 14
BRAND RECALL VS BRAND RECOGNITION ...................................................................... 14
BRAND ACTIVATION ............................................................................................................... 15
MARKET GAP ............................................................................................................................. 16
SEGMENTATION AND TARGETING:..................................................................................... 17
SEGMENTATION: .................................................................................................................. 17
GEOGRAPHIC SEGMENTATION: ................................................................................ 17
DEMOGRAPHICS SEGMENTATION: .......................................................................... 17
BEHAVIORAL SEGMENTATION: ................................................................................ 18
PSYCHOGRAPHIC SEGMENTATION: ........................................................................ 18
CHOC N BALLS CUSTOMER PROFILE .................................................................................. 18
URBAN MARKET .............................................................................................................. 18
PACKAGING ............................................................................................................................... 19
....................................................................................................................................................... 19
Filling of balls ........................................................................................................................... 19

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....................................................................................................................................................... 20
PROMOTIONS............................................................................................................................. 20
Bringing innovations: ................................................................................................................ 20
Choco balls animations activations: .......................................................................................... 21
Social Cause .............................................................................................................................. 21
Free Taste tours: ........................................................................................................................ 22
Festivity: .................................................................................................................................... 22
Flavor matcher app: ...................................................................................................................... 23
....................................................................................................................................................... 23
PRICING....................................................................................................................................... 24
1. ECONOMY PRICING STRATEGY: ........................................................................... 24
2. SKIMMING PRICING STRATEGY:.......................................................................... 25
PLACE .......................................................................................................................................... 27
PORTERS FIVE FORCES ........................................................................................................... 30
THREAT OF ENTRY ......................................................................................................... 30
INDUSTRY RIVALRY ....................................................................................................... 30
BURGAINING POWER OF SUPPLIER ......................................................................... 30
BURGAINING POWER OF BUYER ............................................................................... 31
THREAT OF SUBSITUTES .............................................................................................. 31
(SPACE) MATRIX:...................................................................................................................... 35
INTERNAL FACTOR ANALYSIS .......................................................................................... 38
EXTERNAL FACTOR ANALYSIS (EFE) MATRIX ............................................................ 39

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 ACKNOWLEDGMENT

In the name of "ALLAH" who is most beneficent and most merciful who give us strength to complete this report
efficiently and effectively.

After that, we express gratitude to our teacher Miss Alina Naqvi who teaches us "Strategic Management", she
has a vast knowledge in the field of marketing and give us new direction in this aspect. She supports us to
complete this report and guide us in every matter where we find complexity. We are highly thankful to him for
his support.

At last, we are thankful to all who support and guide us to complete this report. Because of them, we can
complete our work effectively and on time.

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 COMPANY PROFILE

The company Danpak Foods is a well known and established a company of Pakistan that is
famous for providing high-quality products to its
customers with great variety and innovative ideas.
The company was established in 1986 and a wide
range of products including gums, bubbles,
chocolates, toffies, and candies are offered by it.
The international export market has also gained a
lot of attention after selling such products whereas
in Pakistan the company is working progressively.

HISTORY
Regarding the products and services, the company has utilized the latest machinery in every era
while providing the best quality to its customers. It is difficult to survive in such a competitive
market.

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 MISSION STATEMENT

We at DANPAK are dedicated to deliver the best quality products to suit the
local tastes as well as international standards while developing new products
based on Consumer needs.
Our Objective is to achieve higher market share while maintaining the quality
standards in the confectionery industry.
DANPAK we plan to extend our operations overseas thereby generating a
long-term sustainable competitive advantage thus providing superior returns
for our business partner.

VISION STATEMENT

Envision DANPAK to lead Pakistan’s confectionary industry and establish strong

foothold in the export market. While creating and delivering value to customers
&others stakeholders, by offering QUALITY, DELIGHTFUL, IMAGINATIVE
products –ultimately becoming customers preferred choice

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8
CONSUMPTION
RESEARCH OF
CHOCOLATE

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At age of 5-10 the chiidren does not care about fashion , status etc all they want is to play
and try out something new in candies and chocolates.
Packaging is the most attractive thing to this age of group.

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At age of 23-28 now individuals are more concern about brands and quality , have keen
interest on what is going on in society , enthusiastic and patriotic in nature
Parties, hanging out , shopping are their main interest areas

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 By above chart it is clearly understandable that age of 15-22 years are the most consuming
group of chocolate hence all strategies needs to be made by keeping this group in mind.

This Age group leads to always ready to try new stuff mostly coming at low price. Mostly
attracted towards candies chocolates chips etc. Use internet for most of the knowledge and
social networking sites for styles and trends. Boys adopt cigarettes normally in teens and in
fashion chains, rings, single ear piercing are their main interest. Lives to go on bike racing

Where as Girls start going to parlour taking interst wat they look like

Dressing conscious and up to date accessories

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Movies and hanging out with friends

Value Matrix Local Major Competing Brand Pakistan-2014
Company / Brands Major Product Lines Est. Annual Sales Bil. Est. Mkt.Share
PKR
Hilal Bubble, Candy, 14 27%
Jellies, Chocolate
beans, Powder drinks
Candy Land Supari 13 25%

Cadbury Jellies, Candy, 8 15%

Chocolates,
Lollypops, Biscuits &
Snacks
Volka foods Jellies, Bubble Gum, 8 13%
Candies, Chocolates,
Biscuits
JOJO Bubble Gum, 4 8%
Candies & Toffees
Danpak Bubble Gum, 1 5%
Chocolates, Candies
and Sweets
Mayfair Bubble Gum, Deposit 1.5 3%
Candies, Candies,
Chews, Biscuits
B.P.SWEETS Jellies, Candies, 1.2 2%
Toffees,
Mitchells Toffees, Chocolates, 0.75 1%
Moulded Chocolates
Sweethills Candies, Toffees, 0.75 1%
Bubble Gum
Total Domestic 52.2 100%

From above chart it is clear DANPAK is at number 6 , but Danpak 70% among production is
export whiel 30% is domestic
Now they want to emerge in Domestic area and compete with the giants, for this they have taken
a strategy of quality control.
Raw material is imported by DANPAK hence new government policies are effecting negatively
on the cost control and making it very difficult for a company to maintain the cost, but DANPAK
is not agreed to compromise on quality and struggling to resolve this issue of cost

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 BRAND
Brand is a “name, term, sign, symbol or design, or a combination of them intended to identify the
goods and services of one seller or group of sellers and to differentiate them from those of other
sellers”

BRAND RECALL VS BRAND RECOGNITION

Recognition of Brand of Danpak is on strategy of putting its material in front of shop. Our one of
the strategy is shopkeeper give a sweet worth of Rs, 1 as a
complementary when customer buy items worth of more
than Rs100
Danpak does not go for TV promotions or Radio as it will
cost a huge amount, which will not worth it whereas they
continuously introduce new items in market. Our target
market are kids who gets a daily base pocket money which
they need to spend on daily basis , keeping in mind the child
thinking Danpak make efforts in bringing up new packaging
every now and then

CONSUMER BEHAVIOUR
“People buy because of emotions and justify it through logic”

The product we are focusing is CHOC N BALL, which are in football packaging hence attracting
most of the boys, and girls who have interest in sports and who feels good from inside when
consuming that CHOC N BALL

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 BRAND ACTIVATION

It is a fact that with the development in technology the trends and expectations of customers are
changing with every passing day. Danpak needs to start its brand activation. The main aim of
brand activation campaigns is to get all the consumers to act .It’s like bringing the brand to a new
life

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 MARKET GAP

The unjustified situation of Pakistan’s economy is affecting people from all occupations – from
the industrialist to the end-consumer who is finding it increasingly difficult to make ends meet.
The confectionery industry, for one, has been hit from both sides. Consumers do not have money
to spend, while raw materials keep getting more expensive.
Increased gas prices, weakening purchasing power and the depreciating rupee have all
contributed to the shrinking of confectionery businesses. The conditions are such that basic
confectionery items such as chocolates and candies among others are getting beyond the
purchasing power of the common-man.
The government’s ban on the sale of poor quality confectioneries in public and private schools
has also affected the sale of quality products. Confectionery item producers suggest that the
government cannot expect to have European standards imposed all of a sudden.
They said that it would take time for such improvements and implementation of laws should be
made easy for businesses with practical steps. Systematically measures will facilitate the traders.
These are the opportunities for us as we are targeting local market and we also provide export
quality products as we export most of our products, we are providing good quality because we
don’t compromise in quality, in cheap price, very low price from our competitors. This is our
strategy to capture the market as we have ability to store raw material for a year so that we can
survive in this critical situation.

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 SEGMENTATION AND TARGETING:

SEGMENTATION:

We divided the market into smaller segments the following segmentation are applied.

GEOGRAPHIC SEGMENTATION:

DANPAK have simultaneously segmented its potential market in all four provinces, which is further
subdivided into key business centres of those areas. DANPAK has specifically segmented its
market in the urban and rural sector for Residential areas. It is readily available in all areas lower
middle class, middle class and working class)

DEMOGRAPHICS SEGMENTATION:
DANPAK demographic segmentation has divided the market in terms of income, size and style
of the family:
 The target purchasers of DANPAK are children and teenagers regardless if they earn or
not with age of (5-19 years) also Adults (20 years and above).
 Gender segmentation covers both male and female target markets for DANPAK.
 Use internet for most of the knowledge and social networking sites for styles and trends

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As far as education is concerned, there is no basis for segmentation as it appeals to some
common sense. They live in a medium locality, trying to live a better life with all luxuries they
can afford and to give their child the best of the best.

BEHAVIORAL SEGMENTATION:
In the term of segmentation of behaviour, we divided the market based on the advantages that the
consumer seeks in the CHOC N BALLS. With respect to the product's desired benefits, we
segmented the market based on best quality, taste, flavor and colors.

PSYCHOGRAPHIC SEGMENTATION:
Attitude and belief of people who want to provide the customer with health and nutrition for
healthy products. In addition, provide customers with the necessary vitamins and proteins. We
will meet our customer's expectations. The customer expects the CHOCOLATE to have good
quality, taste and fun.

CHOC N BALLS CUSTOMER PROFILE

URBAN MARKET
Our Target Market is Urban and we have focused on lower middle class, working class and
middle class
Nadia and Taimur, age 20 and 16 respectively. Taimur is young, energetic boy who is keen by
society trends and gets attracted by fashionable items like an every other boy at this age. Nadia is
at age where career began to be made and at this age girls loves to experiment on foods and
outfits, makeup, and fashion trends that is matters.

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 PACKAGING

It is important to change the packaging of Choco balls to attract consumers and to compete with other
brands. Along with football, print choc n balls here are some of the techniques which we will be
applying

 We Add-on box in which we provide 7 and 8 pieces of Choc n Balls.

Filling of balls
 Enhance the taste of the product at a low cost
 Danpak should start adding different other flavors of the filling of Choco balls.
 The filling should come in a vast range of flavors.

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  Other than chocolates such as caramel, vanilla, white chocolate, strawberry.

 The outside surface should also have sprinkles to enhance the appetite.

PROMOTIONS

Bringing innovations:

 Each Choco ball color will depict some comic-based or sarcastic comments referring to
color, which will be advertised through Social media.

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Choco balls animations activations:
 Danpak should adopt Choco balls animations activation strategy just like Dry Oinker.
 It should place small but edible animations in crowded areas such as outside malls, in
schools to aware people.

Social Cause
On every Quarter of year we will be doing a social cause thus grabbing youth on one platform
and promoting our Brand simultaneously. The social causes on which we will be working are
1. Cleanliness affair.
2. Plantation etc

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Free Taste tours:
 Danpak should also arrange its stalls during different events at schools and colleges
 It should provide taste tours to its customers just like Nestle

Festivity:

 To celebrate the festivals and other special occasions such as Eid ,Independence day
,Mother’s Day, Father’s day the advertisements must be based on a special message.

 Just like Cadbury adopted the strategy of having a tagline “Free the joy” on Mother Day.
 On Independence Day in Pakistan Danpak will be implementing this strategy by having a
tagline

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 “HUM AIK HAIN”

Flavor matcher app:

 In this era of technology, Danpak should develop an app that will allow the user to find
out traits of their personality just by clicking on different flavors of Choco balls.
 The user will also have an option to share the video on his or her social media profile.

COSTING OF PROMOTIONS
Category Worth
Face Matcher 7 – 8 Lacs
Social Cause 2 – 3 Lacs
Social Medium / Month 1 Lac
New Packaging / 1000 Sets 20,000

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 PRICING

The earning of planned value in form of payment against providing service or product selling is
called price and the whole procedure to evaluate and established such value is called Pricing.

In marketing mix, each component plays its role, whereas the Pricing is the
fundamental component of financial modelling reflects turnover, profit or loss, supply and
demand relationship of the organization. While the pricing elasticity depends upon other
components of marketing, mix i.e. product, place and promotion.
There are various pricing strategies that helps to evaluate and establish attractive pricing
in market. There are our major New Product Pricing Strategies, which are:
1. Economy Pricing Strategy.
2. Skimming Pricing Strategy.
3. Penetration Pricing Strategy.
4. Premium Pricing Strategy.

1. ECONOMY PRICING STRATEGY:

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Economy pricing strategy is prominent use in food and groceries businesses. According to the
Pricing Strategy Matrix, Economy Pricing Strategy placed at the Low quality with Low pricing
of the product.

2. SKIMMING PRICING STRATEGY:

Skimming Pricing Strategy is usually used in technological gadget markets, for example,
Cell phones, smart watches, computers, etc. The skimming strategy attracts other competitors
towards product market, therefore it is considered as the artificial pricing of the product.
The skimming pricing is declines periodically with respect to the supply and demand
relationship. The goal is to gather as much revenue as possible while consumer demand is high
and competition has not entered the market. Once those goals are met, the original product
creator can lower prices to attract more cost-conscious buyers while remaining competitive
toward any lower-cost copycat items entering the market. For example, the Play-station 3 was
initially costs $599 in the market, but it has been gradually reduced to below $200. The graphical
representation of skimming prices shows the decline of price with the increase of quantity/
supply of product in the market.

3. PENETRATION PRICING STRATEGY:

Penetration Pricing Strategy is the most effective strategy followed by New Product
Developers or in relaunching of a product to attract segmented consumers and to compete in the
existing market. Often, its helps to increase sales and capture more market Shares.
Penetration Pricing Strategy includes low initial prices, which help to generates product
awareness in the market. Low pricing helps to lure customer from other competitors of the
market. Penetration Pricing targeted to gain mass market rather than high profit at initial strategy

4. PREMIUM PRICING STRATEGY:

Premium Pricing Strategy use to target the luxuries and desires of the high quality sensitive
consumers. It is generally known as Image pricing or Prestige Pricing. While in this strategy, the

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value of product is often higher than
the normal market value because it
effects the psyche of the consumer that
higher price reflects higher quality than
the normal market available products.

The difference between Skimming

Pricing Strategy and the Premium
Pricing Strategy is that, the value of the
product is decreasing when
manufacturer gain high market sales in skimming pricing while in the Premium Pricing Strategy
the value remains constant because desires and luxuries of consumer always increases.

PRICING STRATEGY FOR CHOC N BALLS:

After a research over pricing of CHOC N BALL, we concluded and selected that the
Penetration Pricing .Strategy should be followed to re-capture the market with effective and
efficient manner. Because it helps to regain the consumer concentration towards itself. The
Penetration pricing strategy helps to target middle class audience of Pakistan economically,
demographically and psychographic. Low pricing attracts consumers economically by
targeting their buying power.

Some main facts, that helps us to select the Penetration Pricing strategy, are:
1. To attain maximum profit with lower cost.
2. To capture market with rapid sales.

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 PLACE

MARKET DISTRIBUTION AND CHANNEL STRATEGY:

Distribution means to spread the product throughout the marketplace such that a large number of
people can buy it. Distribution can make a business or break it. A good distribution system
simply means that the company is more likely than its competitors to sell its products are. The
company that spreads its products wider and faster into the marketplace at lower costs than its
competitors will improve the absorption of higher margins of the price of raw materials and will
last longer under harsh market conditions.

REGIONS OF PAKISTAN FOR DISTRIBUTION:

CHOC N BALL firstly focus on big cities of Pakistan to start distribution of their chocolates

LAHORE

PESHAWAR KAARCHI

PAKISTAN

MULTAN ISLAMABAD

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Danpak Distribution is very strong they have made sue that their product is available in very
hook n corner. The challenge they face every now and then are the duplicate products of their
products range in market with lower quality hence effecting the consumers with Brand nae, of
Danoak on them.
After these four Distributors Danpak is their own distribution too in order to minimise the effect
of cost and be efficient in providing the product to customers.

INTENSIVE DISTRIBUTION:

MARKET DISTRIBUTION STRATEGY:

DANPAK use intensive distribution strategy that is:

DANPAK distributed to every possible outlet, shop, mall, and store present in the particular city
so that DANPAK can counter more consumers towards it.

BENEFITS OF INTENSIVE DISTRIBUTION STRATEGY:

 BRAND AWARENESS: Intensive distribution strategy creates brand awareness of the

product as well as boost sales. Consumers begin to build confidence and recognize your
product as an authority and an authentic brand when your product is visible in every
store.
 BENEFITS TO RETAILERS: Retailers also find many benefits from selling intensive
distribution products as their selection rises and customers interact with the organization

28
 more frequently because they know that the company definitely has what they are
looking for.
 BENEFITS TO MANUFACTURE: The producer himself is the first to win from
intensive distribution because the organization receives high income and its reputation
and authority is growing safely.
Pepsi - Cola, for example, is a brand that is seen everywhere and that everyone recognizes. It is
therefore highly possible that Pepsi - Cola will have one of the largest numbers of loyal
customers because they are known wherever they go due to using intensive distribution strategy.

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 PORTERS FIVE FORCES

THREAT OF ENTRY
As chocolates are Inferior goods meanswith increase of income of individual its demand will
decrease
New entries of brands is also a big threat to DANPAK as switching of customer is easy in it
mainly new entrant has to have good relation with supplier and distributor if they have it the
consumers will easily be captured ofcourse with help of promotion

INDUSTRY RIVALRY
Competitor of Choc n balls Hilal, Cany land etc. Hilal who have captured market with highest
margin
Hilal have started its company in 1952 where as Candy land came into being in 1988 means their
position is well established and strong
Danpak in 1986 but Danpak main focus was in export local market ratio is 30% of their total
production

BURGAINING POWER OF SUPPLIER

Danpak import its material from China , USA etc means they are not reay to compromise on
their quality

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Burgaining power of supplier strong because till they didn’t find out local supplier for raw
materiasl they are bound to pay to supplier with their demanded price and current situation of
PAKISTAN is also not supporting hence they are in struggling position for costing

BURGAINING POWER OF BUYER

Keeping in mind their target market behavious they are well aware that their customer egt bored
very easily of they will see a product log enough in market with no change and innovation
therfore they keep on this race track and try to compete with the fast change in demand from
customer
Hence if they loose this track or failed to understand the need of customer they will loose the
business with high margins

THREAT OF SUBSITUTES
Inferior goods alsways experience a strong threat of susitites , everytime they canbe replaced
with some other substiture product
CHOC N BALL is in same category if any other brand came in market copying this item with
low rates they will loose the consumer immediately ue to very low rate of loyalty ratio from
consumer side infact it is nearly to zero

COSTING OF PRODUCT PER UNIT

CHOC N BALLS
500
Production Cost Per Unit cost 200 Units Units 1000 Units
Material Cost 0.5 100 250 500
labour Cost 0.5 100 250 500
Manufacturing Cost 0.25 50 125 250
Total Cost 1.25 250 625 1250
Selling Price 2 400 1000 2000
Revenue/Profit 0.75 150 375 750

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 FINANCIAL REPORT OF DANPAK
2018 2017 2016 2015
Profit & loss Statement (Rs.In Millions)
Sales 9104 10623 7512 5875
Gross Profit 1441 1831 1128 1116
Profit Before Tax 528 629 305 160
Tax 222 262 94 9
Profit for the year 306 367 211 151

Balance Sheet 2409 2033 1728 723

Share Holder Equity 579 579 579 50
Capital Reserves 1325 948 643 433
Un appropriate Profit 5135 4560 3551 2981
Current Liabilities 6687 6299 4757 4928
Total Liabilities 5290 4867 3626 3047
Current Assets 9097 8332 6485 5651
Ratios
Eps 7.27 6.05 5.88 4.57
Break Up Value 47.69 40.23 34.2 30.06
Return On Equity 15.71 15.04 12.23 20.83
Dividend Payout 20 20 17.5 15

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 SWOT ANALYSIS

CHOC ‘N’ BALLS

The point of a swot analysis is to help you develop a strong business strategy by making sure you
have considered all of your business strengths and weaknesses as well as the opportunities and
threats it faces in the market place.

Strengths
 Choc N Balls have done very well with all the variety of milk products
 The brand is well known to people and they can easily identify it from others
 The prices of chocolates of Choc N Ball can be made very economically and competitive
 It is very rich in quality and healthy
 Offers a quality in taste.

Weakness
 Lack of advertisement
 Failed to understand which advertisement medium to use

Opportunities
 Scope of launching new variance.
 Aggressive promotional strategies an easy availability in the market
 There is a lot of potential for growth and development as huge population stay in rural
market

Threats
 Attractive packaging of competitors products.
 Attractive advertisement by competitors
 New and local competitor choco 4, crown, Golden hearts.

CAUSES OF FAILURE

Failure to penetrate the product in the market.

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Not increase in production and revenue as their total production is 7 tons out of which 70% is
exported

CPM

Danpak Hilal CandyLand

Key Success Factor Weight Rating Score Rating Score Rating Score

Brand awareness 0.13 2 0.26 3 0.39 1 0.13

Level of product
0.08 4 0.32 3 0.24 1 0.08
integration

Range of products 0.05 3 0.15 1 0.05 2 0.1

Innovations 0.04 3 0.12 3 0.12 3 0.12

Market Share 0.14 2 0.28 4 0.56 3 0.42

Low cost structure 0.05 1 0.05 3 0.15 4 0.2

Variety of distribution 0.07 4 2 2
0.28 0.14 0.14
channels
Customer retention 0.02 2 0.04 4 0.08 1 0.02
Product Quality 0.11 4 0.44 2 0.22 3 0.33
Strong online presence 0.15 1 0.15 3 0.45 4 0.6
Successful Promotions 0.08 1 0.08 3 0.24 2 0.16
Total 1 - 2.17 2.64 2.3
Explanation:
With above ratings we concluded that our strong points are as below:
 Level of product integrations.
 Variety of distribution channels.
 Product Quality
In addition, weak point are as below:
 Brand awareness
 Low cost structure
 Strong Online presence

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 (SPACE) MATRIX:

SPACE Matrix is a tool In Strategic Position and Action Evaluation Matrix a company tries to
examine its position through four dimensions, which are;
1. Financial Position ( internal dimension)
It shows the strong position of company regarding Financial, how much the company have the
money or assets the more the better
Danpak position is strong in terms of Machinery and technology as they are competing the
International market with 70% of their total production
2. Competitive Position ( internal dimension)
This is all about how good is your product is.
Danpak product quality is up to the international market and they are keep on race to make it
better.
3. Industrial Position ( external dimension)
It has to do with everything that effects one’s industry e.g. is it growing or how much profit a
company is making
Danpak initially didn’t target local market with its products they were only focusing on
international market but there always a MOQ ( minimum order quantity) required by a machine
to produce something. When they produced accordingly the product quantity were higher as per
demanded by international market. Hence, they introduced the additional produced quantity to
local market hence a need of a times becomes a want.
4. Stability Position/ Economic Stability ( external dimension)
All external factors that can effect a company comes under Economic Stability e.g. currency rate
Danpak for now is struggling on heavy duty and tax arte making it difficult to maintain their
costing but they are giving up the reason is they have in stock raw material of around 1 year
ahead

35
FINANCIAL POSITION RATING

Leverage 2
Working Capital 4
Cashflow 4
FP AVERAGE 3.33

STABILITY POSITION RATING

Rate of Inflation -5
Competitive Pressure -6
Technologies Changes -3
Barriers to entry -5
SP AVERAGE -4.7

INDUSTRIAL POSITION RATING

Growth Potential 2

Profit Potential 3
Financial Stability 3
IP AVERAGE 2.66

COMPETITIVE POSITION RATING

Market share -4
Product Quality -4
Customer Loyalty -5
CP AVERAGE -4.33

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X-Axis =Competitive Position+ Industrial Position
Y-Axis=Financial position + Stability Position

SPACE MATRIX
FINANCIAL POSITION
6.00
COMPETITIVE ADVANTAGE

INDUSTRY ATTRACTIVENESS
4.00

2.00

0.00
-6 -4 -2 0 2 4 6
-2.00

-4.00

-6.00
Axis Title
STABILITY POSITION

37
 INTERNAL FACTOR ANALYSIS
Key External Factors Weight Rating Weighted
Score
Strength
Strong brand name/image recognition 0.11 4 0.44
Excellent employee management 0.09 1 0.09
Own R&D 0.09 2 0.18
Extensive distribution channels 0.06 3 0.18
Changing tastes=new products (richer 0.1 3 0.3
products, coffee flavoring)
Weakness
low net profit margin 0.09 3 0.27
Lack of advertisement 0.10 4 0.40
Lack of medium 0.18 2 0.36
Competition based on prices 0.07 2 0.14
Outsourcing to reduce cost 0.11 1 0.22
Total 1 2.61

Choc’N’Balls Internal Factor Evaluation, IFE, consists of several strengths and weaknesses in
the functional areas of the business. After identifying strengths and weaknesses specific to
Danpak Company, each factor is weighted according to importance. Each strength must be rated
as a 3 (minor strength) or 4 (major strength), and each weakness must be rated as a 1 (major
weakness) or 2 (minor weakness). The weight is multiplied by the rating to tally the weighted
score, which are then summed to achieve total weighted score. The combined weighted score for
Choc’N’Ball IFE is 2.61.

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 EXTERNAL FACTOR ANALYSIS (EFE) MATRIX
Key External Factors Weight Rating Weighted
Score
Opportunities
Dark chocolate health benefits 0.09 1 0.09
Marketing of occasions 0.11 4 0.44
Technological advancements lower 0.09 2 0.18
manufacturing costs
Strong social responsibility/environmental 0.06 3 0.18
sustainability
Richer products 0.1 3 0.3
Threats
Price of cocoa rising 0.07 2 0.14
Government high tax rate 0.10 4 0.40
High currency fluctuation of dollar 0.18 2 0.36
Easy substitute products 0.09 3 0.27
Copying of product by Unregistered company 0.11 1 0.22
Total 1 2.61

Choc’N’Balls External Factor Evaluation, EFE, consists of opportunities and threats within their
industry. Which help to analyse and evaluate the economic, social, cultural, demographic,
environmental, political, governmental, legal, technological, and competitive factors that can
affect them. By identifying opportunities and threats within the confectionery industry,
Choc’N’Ball can assess how well they are responding to the key factors. Each factor is assigned
a weight according to importance, and the entire weights total 1. Each factor is then rated
according to how well Choc’N’ball is responding to that factor (1=poor response…4=superior
response). By this DANPAK will work on Threats by taking into account the Opportunities

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REFRENCES
https://saifdewan.wordpress.com/2017/03/12/198/
http://www.archivesofmedicine.com/medicine/chocolate-consumption-in-children-and-
adults.php?aid=3702
https://mpk732.wordpress.com/2015/03/29/targetting-chocolate/
https://www.danpakfoods.com/
https://www.scribd.com/upload-
document?archive_doc=123395164&escape=false&metadata=%7B%22context%22%3A%22arc
hive_view_restricted%22%2C%22page%22%3A%22read%22%2C%22action%22%3A%22dow
nload%22%2C%22logged_in%22%3Atrue%2C%22platform%22%3A%22web%22%7D
https://saifdewan.wordpress.com/2017/03/12/198/
https://laconfiserieskema.wordpress.com/2012/11/30/place-price-strategy/
https://tribune.com.pk/story/1828279/1-goodies-cost-karachi-50-per-cent-dont-candy-shop-go/

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