Marketing Plan For Serendib Spicy Chocolates In Canada Marketing Essay

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There also consists research on the existing governing patterns of the country and its
political system. We have been careful not to use the Self reference criterion when
comparing our Sri Lankan culture with that of Canadians. Therefore we hope to
globalize our product - Serendib Spicy Chocolates by starting our endeavor in the
Canadian market. We have taken into consideration, throughout this section of the
report, to look at Canada's regional interests, changing trends; such as how the
recession affected the country and any cultural adjustments that we would have to
make.
Canada's exports of processed food items exceed imports by around a percentage of
30%. In 2003, Canada exported $16.8 billion worth of processed food products and
imported products worth $12.6 billion. Canada has always been a major food exporter
around the world. Canada's export orientation for processed food products (Canadian
dollar value of exports/Canadian dollar value of production) rose from 14% of annual
production in 1990 to 26% of production ($12.6 billion) in 2001 (Statistics Canada,
2010).

Canada is a land of vast distances and rich natural resources, and the country became a
self-governing dominion in 1867 while retaining ties to the British crown. Currently
Canada follows a Capitalistic governance system. Economically and technologically the
country has developed over the years in parallel with the US. Canadian culture has been
influenced by European (British & French) cultures over time, historically with a
mixture of Canadian first nations (aboriginal culture) and also it has been strongly
influenced by that of its linguistic, economic, and cultural neighbor United States of
America. Hence certain states in Canada tend to use French as their main language.
Further (Central Intelligence Agency, 2010). The breakdown of the
The nuclear and extended family can both be seen in Canada, where the nuclear family
consists of parents and children and the extended family consists of grandparents,
uncles, aunts and cousins. Recently a larger participation level of females can be

identified in the labor market and with the evolvement of time issues such as late
marriages, living together and increased divorce rates can also be seen in the Canadian
society.
Successful education is a must for Canadians and governments assist the nation by
providing many opportunities for education such as by proving a number of education
institutes such as schools, colleges and universities. Education is free and is a
compulsory requirement for children bellow 17 years. Canada has been successful in
maintaining a literacy rate of 99% up to date. Hence they will be evenly capable of
evaluating the nutritional & exotic aspects of Serendib Spicy Chocolates.
Spicy chocolates have gained recognition in many parts of the world and are rapidly
gaining the attention of chocolate fanatics throughout the globe. Sri Lanka has a strong
relationship with spices; it is one of the most important spice trading hubs of ancient
times. Therefore Sri Lanka's reputation with regard to spices gives us the added
advantage to link the Serendib Spicy Chocolates with the country's reputation which can
be a highly effective advertising tool.
Canada's chocolate imports amounted to approximately US$ 676 million in 2009 & this
gives us an idea of how large the industry is thereby showing us that the market is
penetrable. The climate and weather conditions in Canada are very cold it will also add
up as an advantage for our company as spices can help to build heat in the body, another
factor is that there is a large Sri Lankan community in Canada, who would instantly like
to consume Sri Lankan products, which will also be helpful for word of mouth publicity
among other nationalities in the country.
Toronto - The fourth largest airport in North America, the Toronto Pearson
International Airport is considered as the busiest airport in Canada. Apart from the
Toronto Pearson International Airport, other airports such as the Toronto City Centre
Airport and three more notable airports fuel the air transport system in the city. A
network of railway systems in Toronto notably, the two national railways, CP Rail
Systems and Canadian National Railways. Road transport in Toronto is equipped with
multi lane expressways which connect to various other Canadian cities and the U.S
borders of Michigan and New York. The road system is also equipped with highways
such as Highway 401, one of three busiest highways in North America that provides
access to North Toronto, The Queen Elizabeth Way (an east-west highway) and the

newly constructed Highway 407. The Port of Toronto is another important gateway to
the city and is widely used for the transportation of products to Ontario, northwestern
Quebec, the U.S cities of New York and Ohio. It is also regarded as a full multi-modal
distribution centre (Toronto, 2010).
Vancouver -Vancouver is a heaven/ the main gateway for trading connections between
Asia and North America as it is the closest port to Asia from North America. The
Vancouver Port is regarded as the most lucrative trading centers in North America and
is considered as one of the world's best deep water harbors. Vancouver also has three
major railway networks to markets in various parts of Canada, US and Mexico. It also
has the closest access to the US-Canada border making it just an hour's drive for the
transportation of products by road. Duty free access to the US and Mexican markets for
firms operating in the British Colombia is also possible owing to the North American
Free Trade Agreement (NAFTA). The Vancouver International Airport has the lowest
landing fees in Canada and is also used widely for the transportation of passengers and
cargo (Vancouver Economic Development Commission, 2010).

The preference for chocolates in Canada can be owed to a great extent to regional
interest. For instance in Quebec consumers prefer chocolates which are sweeter in flavor
and match chocolates with wine while French Canadians in cities such as Montreal
prefer chocolates that are darker and organic. Although traditionally Canadians
preferred milk chocolates there has been a shift from milk chocolates to darker
chocolates over the past few years (Carr, 2003) Owed to the fear of obesity which is
gradually becoming a major concern in Canada taking into account that more than 17
percent of adults were obese in 2008 according to the Community Health Survey. This is
mainly because of cultural adjustments.
Canadians are increasingly shopping online and engaging in e-commerce as a way of
purchasing products and services. Therefore many retailers are now using online
marketing as a means of making their products available to Canadian consumers. By
making rich product content available to shoppers and offering a variety of catalogues
online to customers, the choice of products and customer satisfaction is secured.
Canadians just like their US counterparts appreciate a wide variety of choice, influx of
branding and multiple channels to shop owing to their fast paced and dynamic lifestyle.

Advertising of chocolates is mainly done through broadcast media although print media
campaigns are also used widely to reach the target market. Selected television channels
that broadcast infomercials are commonly used to advertise products while advertising
on day time and prime time television also takes place. In addition creative billboards
including 3D billboards depicting images of tempting chocolates are also used for
advertising campaigns which are evident in highways and busy commercial areas.
Online advertising is also becoming a popular option for chocolate marketers to
advertise their products and services. Please refer Appendix 02
Some of the commonly used sales promotion strategies for chocolates in Canada are
through the sponsorship of sports teams, events, samplings etc. For instance Hershey's
Canada Inc. and the National Hockey League entered into a three year partnership
which also involved the unveiling of the Hershey's Chocolate Stanley Cup. ("NHL,
Hershey Canada sign three year partnership deal", 2010).
Chocolate tasting events are also frequently organized in Canada by independent
chocolate tasting companies. For instance "A Taste for Chocolate" organizes chocolate
tasting events in the greater Toronto area providing an opportunity for a variety of
chocolate makers from across the globe to showcase their chocolates (A Taste for
Chocolate, 2010).
The competition in the confectionary industry is very high especially when it comes to
chocolates. The market is dominated by large multinational firms. "Nine multinational
companies produce the bulk of confectionery products sold in the global marketplace:
Cadbury, Ferrero, Hershey, Kraft, Leaf, Mars, Nestle, Warner-Lambert, and Wrigley.
Each of these maintains a strong presence throughout the North American market".
(SPARKS Companies Inc, 2001)
The leading competitors would be well known chocolate manufacturers such as Cadbury
who has a 7.3% of the world chocolate market, Mars with 14.7% Nestle with 12.5%,
Hershey with 8.3% and Kraft foods with 7.8% of the world chocolate market (The
United States Securities and Exchange Commission, 2010). For a graphical
representation of the market shares of competitors refer Appendix 04. These
manufacturers have been in the chocolate industry for decades and have established
them selves in the chocolate industry globally. Therefore, a high amount of competition
is to be expected in Canada.

The manufacturers mentioned above have hundreds of brands. Every single brand is
individual and unique. All the brands have different flavors and recipes to cater to the
needs of the customers. Some of these brands are fat free and sugar free for individuals
are who are concerned about their health. Chocolates are marketed targeting different
age groups and also can be seen in different packaging due to the high competitiveness
in the industry.
The above mentioned competitors are multinational companies and they manufacture
their products in various parts of the world including Canada. Exporters of chocolates
usually use various retailers as middleman when involved in distribution. This is mainly
because the channel of distribution of the products to consumers is faster owing to push
strategies which retailers customarily used. Since chocolates are relatively long lasting
compared to other perishable food items, the distribution of the product would still have
to be executed with speed and safety which meets Canadian standards and regulations.

According to the International Cocoa Organization (ICCO) global chocolate sales were
US$74 billion in 2006. When adjusted according to the inflation rates it amounts to
20% increase over the past 5 years (Suite 101.com). Global chocolate sales are about 27%
for chocolate-covered snack bars, 23% for solid molded bars or tablets, and 20% for
boxed chocolates (gift boxes). Also 14% of global chocolate sales are for bagged or boxed
products like M&Ms, 11% for seasonal theme items like chocolate Easter eggs, 3% for
chocolates with toys, and 2% for regional chocolate specialties. The largest share of
chocolate products (45%) is consumed by Western countries compared to the U.S.
where 20% of global chocolate sales are made. (Suite 101.com)
Canadian chocolate exports were down 16.4% to $551.2 million during the first 9
months of 2009. But Canada was a net importer (i.e. imports exceeded exports) in its
trade with certain countries for chocolates. Therefore one can say that our company has
substantial ability to export our brand of spicy chocolates to Canada because there is a
need or demand for chocolate imports.