Go Ahead. Indulge.

Something Sweet
A Chocolate Company

Angela Hawley Virginia Hefner Jessica Hunter Kevin Jacobs Submitted May 31, 2006 Professor Conley

Something Sweet 2
TABLE OF CONTENTS

Something Sweet 3 Ambition At Something Sweet, we provide low priced, quality chocolates that fit the contemporary and healthy lifestyles of our customers. Within this ambition set, Something Sweet will focus on low pricing, quality chocolates, a contemporary feel, and a healthy selection. This is achieved through the product line and tailored customer service. Description of Idea Something Sweet is an independently and privately operated business that indulges the local community. Currently, in the introduction stage of the product life style, the company strives to establish the quality in its products and selecting its distribution based on a selected target market of an active populace. Therefore, the focus is driven entirely towards the customer to ensure that every visit is an experience. Something Sweet provides a stylish ambiance to fit the needs of todays dynamic lifestyle. In the store, customers will find a wide selection of chocolates ranging from favorite fudge to mouth-watering truffles to satisfy every sweet tooth. Customers will buy into the variety because they have a freedom of choice. With health concerns in mind, there is a constant focus on a line of products that encourage a fit and vigorous lifestyle. This way, customers will be able to buy more chocolate without fearing an expanding waistline. Additionally, Something Sweet features assorted dipped fruits as its strongest product line- such as strawberry, mango, pineapple and many more. The customer will benefit from having their favorite chocolate for a healthy, sweet choice. After all, Something Sweet will be the first to admit that a guiltless indulgence is always acceptable. From the convenient corner of University and Evans, an inviting display will arouse the inner, carnal cravings. Entering the store, the aroma of sweet chocolate concoctions will beckon the customer to sample every delicacy. Observing the trendy atmosphere will play to the inner

Something Sweet 4 success of each modern metropolitan. With provided computers and free internet access, the company is synced to the dynamics of the customer. Next, customers will be drawn to the confectioner counter, which presents a selection of fresh, savory sweets. The fresh chocolate leaves a delectable after-taste, consistent on every visit. The complete presentation of Something Sweets chocolate in fine paper and catchy boxes give the customer a sense that they purchased something of class. Traveling deeper, the customer will discover the companys chocolatiers demonstrate the step-by-step process of producing on-site gourmet treats. The customer will be convinced that the chocolate they are purchasing is an authentic specialty. With friendly customer service, Something Sweet will assist in personalizing each indulgence; personal attention and assistance is guaranteed at an affordable price. Vision Providing every chocolate connoisseur with an indulgence from every corner of the world. As customers are influenced internationally, their diverse tastes deserve an assortment of delicacies of affordable quality. Something Sweet. Every time. Mission Something Sweets mission is to provide every healthy sweet tooth with a rich and natural delicacy. The fineness of chocolate will provide a continuous delightful and cultured bite for every customer. The tradition of providing a business in the same location as the creation of the companys recipes ensures authenticity and freshness. The chic and sophisticated ambiance attracts and soothes every customer in order to truly indulge in the product line. As for

employees, Something Sweet encourages a balanced lifestyle to ensure a positive gratification in the work environment. Quality from suppliers and buyers will be put into every progression of the chocolate creation through ethical business practices. From the wide variety of chocolate

Something Sweet 5 concoctions, every customer will have the opportunity to fulfill their individual chocolate desires. Social Responsibility Something Sweet strives to be socially responsible by incorporating selfless values to promote the quality of the local community and nation. This will be achieved through

volunteerism, sponsorships, and donations to just causes of humanity, like battered women and children shelters. The company recognizes the importance of healthy livingboth locally and globallyand supporting those in need. By integrating these concerns into day-to-day tasks, Something Sweet will maximize the positive impact on its community and global environment. Organizational Planning Industry Specifics In 2000, the U.S. Census Bureau recorded 3,839 candy establishments. Of this number, the dominating statistic of 997 stores shows that chocolate stores employ fewer than five employees. Next, 432 stores employed five to nine employees; coupled together, half of the establishments employ fewer than ten employees. On the other side of the spectrum, 1,304 stores to employ more than 500 employees. According the U.S. Census Bureau of 2003, there were 7,138 confectionery stores with 30,193 employees. This report shows that Something Sweets chocolate team of only five employees is a typical workforce. Growth of the Industry As the American population continues to increase, the candy industry has adjusted appropriately to the numbers. In 2000, the U.S. Census Bureau recorded 3,839 candy confection stores and the number remained unchanged in 2001; in 2003, there were 7,138 stores (Gale Group, 2006). This increase of numbers could be attributed to the changing interests of the

Something Sweet 6 consumers or a foreign presence. Additionally, this is the perfect condition of opening up Something Sweet to take advantage of the chocolate market. With steady level of industry growth, successful establishments are taking advantage of the present situation and are upgrading their quality of chocolate (Premium, 2006). Something Sweet is taking this same approach. Also, a premium presence allows foreign companies to seek sales in the United States to match the successful atmosphere of the chocolate industry. Type of Competition Due to the nature of the business, chocolate is accessible through department stores and online. Therefore, confectioner stores have pure competition amongst each other. Chocolate and candy are not new inventions; instead it is every companys interpretation on the chocolate. Many entrepreneurs are entering into the confectionary business with the prospect of profit margins reaching 20% and moderate startup costs (Chef, 2006). However, it has been shown that the specialty of chocolate results in a high rate of entry power of competition (Novelty, 2006). Existing competitors tend to overwhelm the small establishments by a strong track-record presence. By building a dependable and quality reputation within its community, Something Sweet will succeed through the profits of its target market. Direct Competition There is a mixture of private and publicly owned chocolate stores in the market area. Godiva, Sees Candies, Russell Stover, and Enstrom Candies all make estimated sales of some where between 500,000 to 1 million dollars a year at the prescribed location. The one smaller store that is close to the proposed location is Dietrich Chocolate and Espresso which has estimated sales of fewer than $500,000 a year. This search was completed by Reference USA by

Something Sweet 7 using threes different zip codes for Denver, CO. The areas researched cover Cherry Creek, Colorado Blvd., and the area close to the University of Denver. Three of the candy and chocolate shops, Godiva (2006), Sees Candies (2006), and Russell Stover (2006) are very similar because they have more than one location, are all headquartered outside Denver, and they have been in business for over 50 years. All three of these companies are large and well known. Their chocolates can be found in many locations besides their retail branch outlets such as drug and grocery stores, department stores, and online through their website. Each company tries to attract a different market segment. Godiva is known for having premium chocolate that have a high perceived value. Sees Candies offers less expensive chocolates with an old fashion feel and still use the same recipes since the first store opened. Russell Stover offers chocolate at a less expensive price and has located their product in almost all drug and grocery stores in the US. Indirect Competition Companies such as Hersheys Food Corporation (2006) and Brachs Confections (2004) have a large market share for candy items. Their products can be found in most convenience stores throughout the nation. Russell Stover has placed themselves competitively with both of these companies. They will help anyone get the quick impulse purchase for a chocolate fix by constantly are updating their product line and packaging. Yet none of them offer the same amount of service or quality a small privately own shop will. Economy According to Best Consumer (2005), the average annual spending for groceries, which is one of the largest household expenses, found candy and chewing gum to be 2.4% of the grocery budget (New, 2005). This means that candy was bought more often than lunch meats, white

Something Sweet 8 bread and soup. This demographic gives the company an indication of the market in the percent a households annual income. Another important fact found in this text (New, 2005) is that, Average household spending on gifts of food will rise as more boomers become empty-nesters (p. 254). This means that now is a great time to invest in a candy shop because it is one of the leading markets in the gifts of food category. The Metro Economic Development Corporation has reported an optimistic growth in consumer purchases in the past few years. In 2005 there was an overall growth of 6% in retail sale in the Denver Metro area, with an expected growth rate of 6.2% for 2006 (Economic, 2006). Technology In order for the quality of chocolate to be at a premium level, Something Sweet must continually update its chocolate machinery. The kettle equipment for melting and tempering must be kept in supreme condition in order for the process to continue on the depositor. The enrobing equipment and cooling tunnels help to ensure that the progression of the chocolate production runs perfectly (Production, 1988). Each stage is essential in the precise completion of the chocolate; this allows the business to thrive. Additionally, cooling refrigerators and display cases are needed to show off the excellence of the companys chocolate while remaining fresh for each individual customer. With the impact of wireless technology, provided desktop computers with wireless capabilities throughout the store, will allow the company to stay in the modern age, while catering to the modern day customer. Legal To open a chocolate gourmet confectionery, the company must first receive a Retail Food Establishment (RFE) license, as it is required by state law, from the county health department in the area. To do this, the vendor must provide a Colorado sales tax account number to the

Something Sweet 9 department (Business, 2003). Something Sweet is aware of the many licenses and permits required for its line of business and will hold the necessary permits prior to opening operations (Licenses, 2006). Something Sweet will also have a commercial kitchen, as required by the state for preparation of food. This standardized equipment will meet the criteria found in the Colorado Retail Food Establishment Rules and Regulations Statutes (Colo, 1998). The company will also follow the specific sanitations codes for both employees and products as stated in the aforesaid statute. Something Sweet will follow the state and nation tax requirements as specified by the Internal Revenue Service (Small) as well as employment regulations on a nation and state level (Employment, 2006). This overall knowledge of legal requirements will make it very unlikely for the business to have lawsuit matters plague Something Sweets future growth. Social and Demographic From a chocolate perspective, many confectioners are guiding their products toward the tastes and flavors of their consumers. Items like Godivas Platinum Collection (Godiva, 2006), or sugar free assortments, cater to individual diverse tastes. Also, with chocolate growing into the role of a common gift for special occasions, many prepared chocolates are in high demand. Assorted boxes are gifted at holiday times and distributed in the office. This is a niche

Something Sweet has the opportunity to dig into, especially with the large presence of business traffic in the area. With the increasing presence of online shopping, many chocolatiers have offered their goods and services online. It would be detrimental to not tap into this essential aspect of the business. Many sites offer virtual tours of the business site, shipment of chocolates from the business, and recipes to use with the chocolate products (Ghirardelli, 2004). By transferring the product to the home, the returning customer rate will increase to generate

Something Sweet 10 loyalties and sales. This is in Something Sweets 5 year plan after reaching the break even point of four years. Viability of the Idea to the Market Description of Target Market Centered in the sophisticated metro area just outside of Denver, an energetic and highly populated consumer pool awaits Something Sweets business. With the snack world booming to $65 billion in sales- 38% which is associated to candy sales alone translates into an optimistic number of sales for a new chocolate store (Wharton, 2006). In the year 2005, National Confectioners Association reported nearly $4,450 million in chocolate sales alone (Covino, 2006). Specifically to the zip code of 80210 and 80206, the general target market can be segmented into two main categories: university students and the general populace. A location at University and Evans grants convenience and accessibility to two converging generations. In a neighboring area of substantial income and trendsetting, the target market will be the tipping point of success. With features like updated technology, Something Sweet will appease needs for both portions of local demographics. Additionally, the companys competitors do not offer this atmosphere, which allows for differentiation. The targeting segmentations help to compile an age category that ranges from age 18 to 55, comprising more than one-third7,000 totalof the regions population (U.S. Census Bureau, 2000). From these two primary categories, subcategories are created. University student target. For the university students, there is a segmentation of students in dormitories, students living near campus in apartments, and day commuter students. The presence of nightly commuting students will not be taken into consideration for this business plan due to cost concerns. The sophisticated students that populate the University of Denver will

Something Sweet 11 bring in additional funds necessary for a private establishment. With varying interests of yoga, running, skiing, traveling, concerts, cultural activities, and dancing (ESRI/80206, 2004), this generation brings an urbane zest that Something Sweet addresses through product style and overall atmosphere. General populace target. The general populace is sectioned into faculty and related staff of the university: people that live in the area but are not associated with the school, and people that work in the area but are not associated with the school. A large portion of this segmentation is built from the baby boomer generation, who are expected to form the core consumer group. Baby boomers are beginning to be more conscious of health, weight, and activity. Furthermore, Dark chocolate, with all its verified health claims, is a prime treat for boomer women, especially those who are pre-menopausal. (Baby Boomers, 2004, p.46). This is a perfect segue into Something Sweets healthy line of chocolate and dipped fruits. With a median household income of $60,281, discretionary income of this generation plays into the luxury of the business (ESRI/80210, 2003). The Small Business and its Value Once this small business enters the community, efforts will be made to fuse with the community. This includes learning the language in order to market to Something Sweets new customers. As Michael Marquis, group product director for Johnson & Johnson stated, If you are putting yourself into their mindset, you have to tap into that desire to be spoken to as a sophisticated user." (From, 2006). By addressing their tastes in technology and lifestyle, the same bold taste can be addressed in their chocolate. Also, with the feature of focused customer service, personal attention is guaranteed every purchase. The atmosphere of Something Sweets business appeases the status-seeking customer. By including current chocolate trends, like

Something Sweet 12 limited collections, adventurous flavors, entertainment spin-offs, and healthy options, the trendsetters in the surrounding community will want the product for its unique relation to their everyday life (NCA, 2004). By increasing the quality of chocolate, but still keeping the cost at a minimum, the value of Something Sweets products are high. The company provides the ability to save money by offering low-priced chocolates. The customer is able to maintain a healthy lifestyle while consuming Something Sweets healthy product line. Survey Analysis Question 1: chocolate preference types. In the survey, the company asked this question to consumers to indicate preference between dipped fruit, caramels, fudge, solid chocolate, truffles, and toffee. The mode of the collected data demonstrated that the chocolate-making efforts should be focused towards dipped fruit. Thanks to this information, the company will be stocked and prepared to sell the most preferred product of the customer to the customer. Something Sweet will, then, be able to budget the production costs to match the consumer preferences. This also appeals to the product line of the marketing mix. Question 2: importance of chocolate characteristics. This segment of the questionnaire provided four characteristicstaste, price, variety, and health concernsand their corresponding value of importance. By creating this value scale, Something Sweet would be able to focus on a specific criterion of chocolate in order to satisfy the consumer. This directly generates sales. It satisfies the product portion of the marketing mix. From the collected data, it was apparent that the taste of chocolate was vital in the individual purchase of chocolate. Price, as a chocolate characteristic, was deemed Somewhat Important, a result predictable among students. However, taste superseded price, thus showing that Something Sweet must continually provide quality and flavor of chocolate. An assorted menu is not an influential aspect of a chocolate

Something Sweet 13 purchase. Health concerns, as a chocolate characteristic, are slightly differential and demonstrate that a variety of a sweet indulgence needs to be offered to the assorted customer, as well. (See Appendix, Survey Analysis). Question 3: frequency of chocolate ingestion. When the target market responded to this question, Something Sweet hoped to see the turnover rate of returning customers. From the data, it can be seen that the company will have a weekly customer return rate. Production will be affected by this rate in offering a new product so that every visit will be different and will add to the taste and variety of chocolate. Thus, the company must market and produce accordingly in order to generate more sales and build clientele. This question is also coupled with the following question. (See Appendix, Survey Analysis). Question 4: preferred time of chocolate ingestion. This question allowed us to know two components of Something Sweets business. The company would be able to see the hours of operation for optimal sales, as well as the crucial time to impact returning customers. The evening time appealed most to the consumers, as did night hours. However, Something Sweet gathered that hours of operation will be in the later part of the day. Additionally, the company can market differently to the dynamics provided by daytime. (See Appendix, Survey Analysis). Question 5: preferred name of chocolate business. This straightforward question gave the company insight to the target markets preferred name. Between the choices of Chocoholic, Guilt and Something Sweet, the company found that the customers would be most attracted to a store called Something Sweet. This is the establishments name because it is a positive and memorable name that will attract customers to the store. (See Appendix, Survey Analysis). Question 6 & 7: spending budgets. This question was important so that Something Sweets business would properly price the goods in the store. In the survey it was asked how

Something Sweet 14 much a person would be willing to spend on chocolate on a special occasion as well as how much they would be willing to spend on themselves. This differentiation is essential to properly price goods that are sold for holidays and for special occasions in order to price appropriately. Given the three choices, $1 to $5.99, $6 to $9.99, and over $10, it was found that people were most willing to spend $1-$5.99 on themselves and over $10 for a special occasion purchase. This will allow Something Sweet to add to the pricing component of the marketing mix. (See Appendix, Survey Analysis). Question 8: gender of sample surveyed. Out of the many people surveyed, there were a greater number of females (32 in total) as opposed to the number of males (18 in total). As the surveys were distributed randomly, there is no significance that more women were surveyed than men, despite the common notion that women eat more chocolate than men. This was used as a mere index in examining how the psyche of each sex answered the questions. (See Appendix, Survey Analysis). Viability of the Idea to the Organization Something Sweet has taken into consideration the market and industry averages of the chocolate and candy trade to create the projections of the company. These estimations have been made very conservatively so to not deceive the investors, owners, and employees interested in the company. Something Sweet has also calculated the growth of the expanding chocolate and candy market to create the demand analysis, to analyze the strengths, weaknesses, opportunities and threats (SWOT) of the company. These have also been taken into consideration for the reckoning of the financials of Something Sweet, including the first year cost estimates, the income statement and the break-even point.

Something Sweet 15 Strengths The homemade chocolates of Something Sweet are continually stocked fresh, made available to the customer. The company will incorporate the needs of the customer into their business plan, through health concerns and needs. The clear direction of the company is The products offered are

providing diverse chocolate to the companys target market.

manufactured to Something Sweets target markets wants and needs. These are the strengths of the company and they will leverage them through flexibility and connectedness to the community to the highest degree possible. Weaknesses Something Sweet trims their product sales to accommodate the pocket books of the customers. The company plans to capitalize on customer loyalty and their market niche (see Appendix, Positioning Map). After extensive research, the company found that their product differentiates itself from the surrounding competitors such as The Rocky Mountain Chocolate Factory and Godiva. While Something Sweets product line is narrow in the sense that they cannot produce the same amount of chocolate as their large national competitors make. The company addresses this problem by creating a new flavor each month to offer a unique and personal variety that competitors cannot provide. Opportunities The demand for a superior chocolate market has increased. Something Sweet has realized this opportunity and has capitalized on entering into the market at this time. Also, depending on the trend of coffee sales and ice cream sales, the company has seen potential in traveling in that direction into the sixth year of business. The needs of the customers are changing in the direction

Something Sweet 16 of quality self-indulgences worth their increasing disposable income. This niche is the constant focus of Something Sweets productions and services. Threats One defining threat to the business of Something Sweet is the strong competitive presence of neighboring competitors. The company has established that the best way to fight this is to carve a niche in the community. Additionally, by matching competition with chocolate making experience, Something Sweet will obtain the needed familiarity for production and operation to remain profitable in the ever evolving market. The flexible mentality of Something Sweet will allow the company to greet obstacles with a positive viewpoint. Furthermore, with the support of customers, and the economic situation of the University of Denvers campus, the surrounding community will continue to be enriched and ensure a constant market and constant growth. Demand Analysis Based on past industry evaluation, the probable future consumer demand has increased over the past few years. Something Sweet took this into consideration as they anticipated their sales estimate for this year and the next. The first years sales estimate is $22,812.00; the second years sales estimate is $42,812.00. These values differ greatly due to the large amount of the startup costs, but will be regained by year four. Before Something Sweet calculated their projected sales, they had to establish their units as one-half pound of chocolate, in accordance the chocolate fluctuation. From there, Something Sweet researched their competitors in the area; they were able to determine that the typical poundage sold per store per month to be approximately 60 to 100 pounds. From this, Something Sweet determined that their unit

fluctuation per month would range from 120 to 200 units (1/2 pound units). The company

Something Sweet 17 allowed for this variation because sales will be varied dependent on the holiday season that each month falls in. In their analysis, Something Sweet emphasized the top products determined by surveys to generate the highest amount of sales. In the survey, Something Sweet determined their prized product to be Dipped Fruit in chocolate. Though Dipped Fruits are relatively cheaper to make, the company wants to produce the highest ratio of profit from this category. This will draw the typical customer, that Something Sweet has decided to target, and where the highest revenue will be generated. The survey results also depicted that consumers are more willing to spend their disposable income on gifts higher than $10 per item, per holiday than on personal purchases. Therefore, Something Sweet hopes to target each customer to return at least eight times before the years end. From the companys estimated sales and survey, Something Sweet predicts 100 to 130 customers to walk through the doors per month. The company projects that each customer will buy at least pound of dipped fruit and of miscellaneous chocolate, thus spending approximately $7 per visit. According to the budget that Something Sweet has estimated, they expect the capacity to be a little less than 2,000 units per yearspecifically 1,775 one-half pounds per year. Something Sweet estimated the number of each type of good,

produced and sold per month, over a years time. Due to the fact that Something Sweet has found a small niche in the market, they will be able to meet a small, specialized segment and flourish. (See Appendix, Demand Analysis). First-Year Cost Estimates The one-time start-up costs of Something Sweet include both the variable and the fixed costs. The fixed costs include furniture, interest, equipment, rent/lease, utilizes, salary, telephone, and services. The variable costs include repairs, maintenance, supplies, production materials, and marketing expenses. These accounts were given to the company who then found their

Something Sweet 18 applicable costs through research. The fixed costs totaled $243,614.74 for the first year; the variable costs totaled $47,373.76. From this data, Something Sweet will need approximately $295,000 to fund their business. (See Appendix, First-Year Cost Estimates) Income Statement The income statement of Something Sweet projects into the first three years of business. It demonstrates the relationship between revenue earned versus the cost of goods sold and expenses. As stated below, the break even point will occur into the fourth year of business. (See Appendix, General Income Statement) Break Even Point Analysis Something Sweet has defined one-half pound of chocolate to equal one unit. From research gathered, weight was the more dependable aspect of pricing inventory, versus per piece. After the company researchers gathered the information from the demand analysis, the company was able to determine the demand in accordance with their units in order to derive an average price and cost per unit. From the break even analysis, Something Sweet will not be able to break even until about four years into production. This time is adjusted because of the high investment in chocolate producing equipment. It is important to know that Something Sweet will break even in their fourth year because the company needs to show investors, owners, and employees when the business will become profitable. (See Appendix, Break Even Analysis Worksheet, and Break Even Chart for Something Sweet) Proposed Marketing Mix Pricing Strategy The pricing strategy used was to keep Something Sweets prices lower then the prices set by the companys competitors. This is also known as the penetration pricing strategy. With the

Something Sweet 19 research done by the management team, it was discovered that price was a concern for the consumers. Despite the fact that customers are willing to spend money on others, research discovered that they were not as apt to spend on themselves. With keeping prices low, the company will be able to offer quality chocolate at a reasonable price. Through penetration pricing, Something Sweet plans to generate sales by offering low-priced chocolates. This

strategy helped Something Sweet to appeal to the target market. Although these lower prices have an affect on generated revenue, Something Sweet will be able to break even in the projected time of three and half years. The prices chosen are lower than competitors such as Godiva and Rocky Mountain Chocolates. Something Sweet will use even-pricing strategy, versus oddpricing strategy used by competitors. Because the Something Sweet has found that the

competitive edge provided through off-pricing, the company has decided to not use it. Instead, by making things consistent, Something Sweet does not deceive the customer and is able to build a quality reputation in order to generate sales. (See Appendix, Unit Price and Cost Analysis) Customer Service Something Sweet will uphold a high standard of reliability in customer services. The companys customers can depend on the staff to perform the highest quality service due. The inventory will be stocked with daily fresh chocolates in order to demonstrate the accurate sensitivity of the consumer demands. The facility will have an overall cleanliness kept to standards in order to ensure customers of the companys dedication to them and their health. It will be measured by cleaning the store twice a day. This provides a tangible asset to reassure customers in the overall quality of Something Sweets products. The employees will be well educated in the necessity of the immediate responses of the customer. Every month, employees will be updated with new chocolate trends, applicable to Something Sweet. They will be

Something Sweet 20 knowledgeable of the chocolate-making process, as well as the ingredients and origin of raw materials. The responsiveness is an important criterion of employees to uphold when interacting with customers. Alternatively, this leads to the importance of employee courtesy. The customers can be assured of satisfaction in each piece of chocolate they indulge in because the taste of the chocolates are created by Something Sweet chocolatiers, as compared to a store bought or mass produced product. The employees will be highly trained and informed on the production process and ingredients of every chocolate available, so to answer all questions regarding the chocolate products. The employees of Something Sweet will be empathetic to the different needs of each customer. They will be prepared to work with the health needs and concerns of the consumer, such as diabetes and high calorie concerns. A training session for every employee is required before employment. The company will also create the best and most efficient shopping

experience for gift boxes and personalized assortments for special occasion and holiday shoppers. Components of Service Delivery Intangibility is something that a customer cannot hold, touch or see before the purchase decision. To avoid this customers will be given samples of the products so that they can hold it, touch it, taste it and see it before they make there purchasing decision. Additionally the packaging of the chocolate will give the customer a little something extra to hold on to. Inconsistency of quality of service can vary depending on the employees that provide information to the customer depending on their job performance. To provide consistent service to potential customers, Something Sweet will create standards and training programs to make sure that every customer receives a substantial amount of service. Every month, employees will

Something Sweet 21 be required to pass a test based on the policies and information needed to run Something Sweet efficiently. Additionally, before employment, employees will undergo a test to make sure they meet the standards of quality customer service. Most consumers cannot separate the difference between the deliverer of the service and the service itself, which can have a negative impact on the company resulting in loss of revenue. Being a food service provider, customers have to participate in the delivery of the service. For customers who would like to avoid this interaction, Something Sweet will provide a grab-and-go section that will eliminate the interaction between delivery of service and the business. Inventory service is the need of a person to provide the service along with the need of the equipment. In order to avoid inventory problems, the company will make sure that the employee team is not overstaffed. Something Sweet has taken into account the important balance of service needed during the holiday season. Service providers will maintain a high production capacity so that customers will receive quick and efficient service to satisfy their needs. Integrated Marketing Communications Discussion Positioning Concept Something Sweet will run the Go Ahead. Indulge. campaign for the chocolate products. It is a simple phrase which highlights the indulgence factor of the product. Because the product is in the introduction stage, this will help increase the awareness of a chocolate business and what it entails. From the survey results, the management team found that a very small percentage rarely participated in a self-indulgence of chocolate. Something Sweet wants to target that weakness and lure them into the store so that there is a more consistent rate of sales. This will bring Something Sweet into the perceptual positioning where the company wants to be placed. (See Appendix, Positioning Map)

Something Sweet 22 Product Image The image Something Sweet wants to convey with the logo is sleek, modern, and accommodating. This will match the image the company is trying to convey to the target market. The bold colors and innocent phrase is both modern and sleek, as is the target market. In an attempt to reduce noise, the logo and posters will be consistent with each other. After examining the products features and benefits, Something Sweet wants to highlight the luxury factor of the chocolate. The rich colors will inspire a desire for rich chocolate. Because the slogan offers a dare to the consumers, they will discover that Something Sweet offers a healthy line of chocolate, allowing for a guiltless indulgence. Additionally, to aid customers with a customized shopping trip, Something Sweet wants to incorporate a helpful guide using this internal slogan: Something Sweet For Him/Her. (See Appendix, Logo) Product Packaging In order to continue the consistency of a sleek and modern image, product packaging will coincide with the goals. With clear gift packaging, customers will be able to catch a glimpse of the chocolate products inside. Product labeling will be equipped with the circular logo and branding colors (See Appendix, Logo). Individual chocolates will be wrapped in golden tissue paper. Every customer will be provided with a branded gift bag, consistent with the companys image. These bags will aid the intangible aspect of the business, giving the customer a physical aspect of the business. With the colors and quality of the packaging, the customer will be able to see the quality product they are purchasing. Various Advertisements To grab the attention of the audience newspaper ads and flyers will be placed around campus to reach potential customers. Newspaper ads and flyers are the best way to inexpensively

Something Sweet 23 reach the potential customer. There will also be ads in the Clarion newspaper which many university students read. Something Sweet will purchase ads varying from quarter page to an eighth of a page at $199 and $97, respectively. Because 85% of yellow page users either call or visit a business Something Sweet plans on standing out in the yellow pages by having a super bold listing in a deep red color that will be included under the column of similar stores. A yellow page ad will cost approximately $175 per month. A flyer for the store will be designed that will run with the campaign Go Ahead Indulge. It will consist of the same colors that are in the logo and throughout the store. Sir Speedy will be the company used to print off and make copies of the flyer. (See Appendix, Logo Flyer). Sales Promotions Something Sweet will engage in community programs, offer contests, and have special occasions for coupons that will be presented to loyal customer to encourage them to return. Sales promotions will be run throughout the year such things as coupons will be delivered during holiday times. Community programs will be offered a few times a year to help support, remind and encourage the local community that Something Sweet is available to make a difference. Contests will be held when new chocolates that consist of different flavors, sizes and types need names and to help grab attention to chocolate showcases and that they are new featured items. The success of promotional campaigns will be measured by conducting qualitative and quantitative research analysis. Publicity Activities Between sponsorships and community involvement Something Sweet will increase public relationships with the community. Community involvement will include employee volunteering days, and supporting childrens holidays such as Halloween and Easter. There will

Something Sweet 24 also be education day for people learn about chocolate and its health related issues. The likely effect of the activities will help potential customers gain knowledge of the business by sponsoring things and being involved with the community. People will be able to gain free chocolate and information about where to get more. The organization will become successful because Something Sweet is a socially responsible business. Conclusion From this analysis, it can be shown that Something Sweet is sound and confident investment. The company focuses on its ambition to provide low-priced, quality chocolates to fit the contemporary and healthy lifestyles of the customer. In the store, customers will find a wide selection of chocolates ranging from favorite fudge to mouth-watering truffles to satisfy every sweet tooth. Additionally, Something Sweet features assorted dipped fruits as its strongest product line. This is the companys unique attribute. The customer will benefit in favorite chocolate for a healthy, sweet choice. Because Something Sweet makes its chocolate on-site,

the customer will be convinced that the chocolate they are purchasing is an authentic specialty. The chocolate industry is a sound and consistent industry; it has grown steadily over the years and will not fade away. The company would be entering a sustainable market. Furthermore, the target market of both university students and the general populace is a strong and dependable community. Its growth continues to expand economically, thus enriching predicted sales. From intense research, Something Sweet is predicted to break in its fourth year of operations. The company is in the perfect situation to build momentum within the community. Sales will be earned; whether the investors choose to enter later down the road or now to make the most profits. Go Ahead. Indulge. There is always Something Sweet in store.

Something Sweet 25 Bibliography 2006 Economic forecast for metro denver/ infrastructure projects to significantly propel economic growth in upcoming years. (2006). Retrieved April 9, 2006 from http://www.metrodenver.org/DataCenter/DenverEconomy/. About russell stover candies. (2006). Retrieved April 5, 2006 from http://www.russellstover.com/jump.jsp? itemType=CATEGORY&itemID=189&path=1%2C3%2C185%2C189. About the hershey company. (2006). Retrieved April 6, 2006 from http://www.thehersheycompany.com/. Ad rates. (2004). Retrieved May 15, 2006 from http://www.duclarion.com/home/adrates/. Baby boomers/who cares if theyre on a diet, consumers of this dominant demographic segment have been known to treat themselvesas well as their loved onesto premium quality (possible nostalgic candy). (2004). Confectioner. Retrieved April 5, 2006 from Business & Company Resource Center database. Business licensing database food vendor. (2003). Retrieved April 5, 2006 from http://www.state.co.us/oed/industry-licence/IndDetatil.cfm?id=158. Chef tried on entrepreneurs hat/builds chocolate empire using new skills plus his old contacts. Crains New York Business. (2006). Retrieved April 5, 2006 from Business and Company Resource Center database. Colo. Rev. Stat. 25-4-1604. (1998). ({Retail Food Establishment Rules and Regulations}) Covino, R. M. (2006). Candy industry/ better than bittersweet. Retrieved April 10, 2006 from http://www.candyindustry.com/content.php?s=CI/2006/03&p=8#top. Employment law: an overview for employers. (2006). Retrieved April 9, 2006 from http://smallbusiness.findlaw.com/employment-employer/ employment-employeroverview.html. ESRI: business information solutions. zipcode look up/results 80206. (2003). Retrieved March 29, 2006 from www.esribis.com. ESRI: business information solutions/ zipcode look up/results 80210. (2003). Retrieved March 29, 2006 from www.esribis.com. From teen fashion to hershey kisses: new ways to sell the brand. (January 11, 2006). Retrieved April 10, 2006 from http://knowledge.wharton.upenn.edu/article/1344.cfm.

Something Sweet 26 Gale Group. (2006). Candy, Nut, and Confectionary Stores. Encyclopedia of American Industries. Retrieved April 5, 2006, from Business and Company Resource Center database. Ghirardelli chocolate company recipes and baking tips. (2004). Retrieved April 5, 2006 from http://www.ghirardelli.com/recipe.html. Godiva chocolatier whats new/chocolate news. (2006). Retrieved April 5, 2006 from http://www.godiva.com. Godiva takes the gourmet route. Duty-Free News International. (2006). Retrieved April 5, 2006 from Business and Company Resource Center database. History of godiva. (2005). Retrieved April 8, 2006 from http://www.godivacareers.com/history.asp. Licenses and permits:overview. (2006). Retrieved April 9, 2006 from http://smallbusiness.findlaw.com/starting-business/starting-business-licensespermits/starting-business-liceses-permits-overview.html. National Confectioners Association. (2004). Candy trends 2005/2006. Retrieved April 10, 2006 from http://www.candyusa.org/Classroom/Trends. New Strategist Publications, Inc. (2005). Best customers/ demographics of consumer demand. New York: Strategist. Niche opportunities/trends conference examines opportunities for targeting key market segments. (2002). Confectioner. Retrieved April 5, 2006, from Business and Company Resource Center database. Novelty interactive/this category is plenty of fun, but getting in the door at retail and maintaining the set in-store is challenging. Confectioner. (2006). Retrieved April 5, 2006 from Business and Company Resource Center database. Premium chocolate/now that the chocolate bar has been raised towards more premium varieties, retailers need to strategize to capture an even higher-impulse chocolate market. Confectioner. (2006). Retrieved April 5, 2006 from Business and Company Resource Center database. Production techniques chocolate processing and equipment and chocolate machinery. (1988). Retrieved April 9, 2006 from http://www.ptl.co.nz/index.htm. Reference usa. (2006). Retrieved April 7, 2006 from http://0www.referenceusa.com.bianca.penlib.du.edu/bd/results.asp?si=89618229071754. Sees candies. (2006). Retrieved April 7, 2006 from http://www.sees.com/about.cfm.

Something Sweet 27 Small business and self-employed one-stop resource. (n.d.). Retrieved April 9, 2006 from http://www.irs.gov/business/small/index.html. The history of brachs confections. (2004). Retrieved April 8, 2006 from http://www.brachs.com/about/history.asp. Theres a flavor for every taste/candies rule in supermarkets. MMR. (2006). Retrieved April 5, 2006 from Business and Company Resource Center database. U.S. Census Bureau. (2000). Census 2000 Summary File 1 (SF1) - Percent Data, P12. Sex by age. Retrieved April 10, 2006 from U.S. Census Web Site: http://factfinder.census.gov/home/en/datanotes/expsf1u.htm.

Something Sweet 28 Appendix TABLE OF CONTENTS ADVERTISEMENTS....................................................................................................................A 2 BREAK EVEN ANALYSIS WORKSHEET UNIT PRICE AND COST ANALYSIS G