Lily's Sweets Company Analysis

Smores Bar Campaign
Lilys Smores Bar Campaign 1
Group 4 (Ben Konides, William Boyd,

Payton Hutto, Kinza Tariq, Daniel
Sommerfeldt, Jeremy Brown)
Table of Contents
Executive Summary. pp. 2
World Of Marketing. pp. 2-9
Product Decisions pp. 9-12
Distribution pp. 12-17
Pricing Decisions.. pp. 17-27
Analyzing Marketing Opportunities.. pp. 27-32
Promotion. pp. 32-38
Plan Implementation and Measurement. pp. 38-39
Product Package Designs. pp. 39-43
References.. pp. 44-47

Executive Summary
The chocolate bar that was hiding behind Lilys Sweets product line is one that brings
happiness and old memories of friends and family, from around the campfire, to the taste buds on
your tongue. The SMores Lilys Chocolate bar acquires the taste of that perfectly stacked graham
cracker, roasted marshmallow, and chocolatey crunch that everyone loves. This new product will
add a new twist into the gluten-free, no sugar added, amazingly awesome chocolate that Lilys
Sweets designs. Lilys is on the shelves of many well-recognized stores such as Whole Foods
Market, and opens the door to a whole new direction and opportunity that may produce a larger
customer base. Lilys Smores can potentially build off of the foundation that is already in place.
Locally, Lilys Chocolate does pretty well as a business, but the national market is where Lilys is
trying to make a presence. This could possibly be the new product that opens the eye to just the
right target market. Looking into the more realistic picture is when you find a way to make this
new chocolate masterpiece reality and initiate that direction within the company. Following
through with an idea that is feasible yet successful while choosing the right promotional
techniques and proactive distribution centers to acquire national recognition.
World of Marketing
General Company Overview: Lilys Sweets is a consumer market oriented,

American/Canadian confectionary enterprise founded in early 2011, in the United States. Lilys
operates as a chocolate bar, snack bar, and baking chip manufacturer originating from the
small-to-do town of King of Prussia, Pennsylvania. Lilys co-founders, Cynthia Tice and Chuck
Genuardi, used stevia, the botanical sweetener extracted from the plant Stevia Rebaudiana, also
known as sweet leaf, to be their major point of focus in entering/dominating the chocolate
industry. Unlike most commonly used sweeteners, Stevia is known to be two to three hundred
times more sweet than regular sugar, while still containing none of the unhealthy traits sugar or
other alternatives may carry. It is also known to contain almost little to no calories. The company
started on a whim, when Cynthia and Chuck got together to offer consumers an option for
healthier chocolate after both being long time advocates for natural foods. The origins of the
company name were created after Chucks niece, Lily, a childhood brain cancer survivor, who
with the help of Cynthia and Chuck, are able to be huge sponsors in contributing a portion of their
annual profits to nonprofits that provide help and assistance to those and their families who are
fighting cancer. While dominating the Internet with strong sales from both Vitacost and
Amazon.com, Lilys is also available across a wide range of resellers such as Whole Foods
Market, Sprouts Farmers Market, Vitamins Plus, Stop & Shop, Wegmans, Mothers Market &
Kitchen, and Marianos Fresh Market.
Company Mission: Lilys mission is simple; to provide customers with a hearty,

top-shelf, savory chocolate option that could compete with conventional chocolate companies
already established in the marketplace. Offering zero-calorie stevia with gluten-free chips and
bars, Lilys lets their customers know their insides are being taken care of just as much as their
outsides. An excerpt from the Lilys Sweets company website encapsulates their desire for the
masses:
Healthier chocolate from a company with a heartfelt mission indulgence has never
tasted this good (Lilys Sweets, 2011).
Objectives: Lilys marketing objectives align with the four basic marketing principles in
order to effectively roll out their latest and greatest product, a stevia, non-GMO, Smores
Chocolate Bar.
Product: Lilys plans to generate enough product in pre-production to place in the

market, satisfying the identified target market during the early spring months.
Price: Because Lilys bars are premium chocolate, with stevia and non-GMO chips,
prices on their bars will be slightly higher to compensate for their better ingredients, attention to
individual detail, and production fees. What Lilys forecasts however, is the targeted market
being drawn to both the overall taste and quality of this bar over the standard options, that they
will recognize the individuality and pay the set price. Consistent with the rest of the Lilys
product line, the new Smores bar will be set at a closely similar price.
Placement and Distribution: With respect to Lilys already dedicated resellers, the
company will keep the selling options consistent with firms already in contract with Lily, simply
adding to their range of displayed products in their stores. Lilys possess distribution centers
across the United States and in Canada, specifically centered to be a quick and responsive
intermediate between wholesale and resale as well as fulfilling orders with retailers for consumer
needs. The new Smores bar will be sold from the contracted resellers mentioned above.
Promotion: To effectively appeal to the targeted consumer, Lilys promotional
campaign will focus on the overall taste and flavor of the bar, incorporating both the lifestyle
behind the bar and the lifestyle of the consumer to become one.
SWOT Analysis: Lilys top strengths rest on the abilities to offer a product unlike
another other competitor, being conscious of the health restrictions many suffer from (Lilys
products are known to contain 20-25% less calories than competing brands), while
simultaneously creating something that does not lack in either taste or substance. By offering
chocolate bars and baking chips that are non-GMO, gluten-free, vegan, and sweetened by stevia.
Lilys created a consistency across their product line that appeals to chocolate consumers of all
geographic and demographic backgrounds. All Lilys chocolate is Fairtrade Certified and
certified gluten-free. The company also maintain a strong code of ethics by being very involved
in giving back to grass root nonprofits that assist childhood cancer survivors and current fighters.
Lilys weaknesses are mainly advertising based; with current campaigns keeping the exclusive
name household to only it is authorized resellers, rather than national chains such as a Target or
Walmart. It carries a strong customer reputation online, but its domestic ad campaign needs to be
revamped.
Lilys possess the opportunity to grow in sales among the more exclusive and brand conscious
shoppers, consumers who use retailers such as Whole Foods Market. These consumers are aware
of the prices and the products offered, and continue to come back for such. Using the External
Factor Analysis Summary Matrix (EFAS), Lilys was able to conclude that the marketplace for
products such as Lilys remains attractive, with anticipation for growth:
The organic foods market is very attractive and continuing to increase in attractiveness. Whole
Foods hold a very strong position in the market and could potentially position themselves in an
even stronger and more profitable position. Health and organic foods recently became very
popular and show no signs of slowing in demand. The processes by which organic foods are made
will only become less expensive as new technologies and continuing knowledge of the industry
grow (Whole Foods Case Study 2012).
Possible threats that Lilys may face include establishing a significant share of the market with
this new product, creating enough drive and demand that will continue necessary growth and
production for the Smores bar, and barrier to market entry. The threat of ingredients increasing in
price is unlikely, as stevia is primarily inexpensive to cultivate and extract for baking purposes.
Market entry would be the largest threat, due to its timed launch not generating enough profit or
demand, therefore not creating enough brand awareness to sustain this newest product.
Competition: According to the online market research tool, Hoovers, the three main
competitors of Lilys Sweets are Aloha Superfood Chocolate, SweetRiot Dark Chocolate with
Fabulous Flax, and Green & Blacks Organic 85% Dark Chocolate. Aloha Superfoods contains a
much more diverse product line than Lilys, offering up a range of items from teas and protein to
vitamins, snacks, and chocolate itself. SweetRiot is more presumptuous, selling only chocolate
bars and bite sized bites made with omega-3s, flaxseed, and fiber, creating a healthy bar capable
of being a strong competitor to the company. Green & Black is the most similar to Lilys, offering
up a selection of organic chocolate bars, in milk, dark, etc. Their one drawback is their lack of
domestic statute, allowing Lilys to be more accessible both online and in the marketplace
personally.
Brand Image: Lilys overall brand image touches on its honest-to-goodness virtues,
natural ingredients, gluten-free, with a sweetener that is not harmful to diabetics. Their message
and advertising allows them to resonate in their customers minds, establishing a clear bond
between quality-assured and health-conscious.
Marketing Objectives (New Product Integration): Overall objectives for the new
Lilys bar, S'mores Bar align with the rest of its products ideals- to deliver a premium
chocolate that is parallel to the companys mission statement and meets the needs of the target
markets. Eventually, after the initial introductory stage, the addition of the S'mores bar to the
product line will help bring in more revenue for Lilys. The S'mores bar will be priced right
around the rest of the Lilys bar products, sitting right over three dollars. The new product is
aimed at affluentials and those in midlife success, which is exactly why Lilys is aiming the ad
campaign for this new bars launch in these middle-to-upper class stores. The target market the
company are focusing on understands the importance of quality over price, and is willing to pay
more for a better experience. Both groups are in complete control of their buying power so they
are not relying on others decisions, rather their advice on maybe whats the new trendy thing to
eat. Lilys marketing team set financial goals for the Smores product at $1.5 million in revenue
in the first year, $3.5 million in the second, and $15 million in the third. Marketing also set a
desired profit margin of 18.5%, or more.
Ethics: Lilys follows a moral code of ethics that helps sustain their products ability to
remain fresh with natural ingredients and sweet in a healthier way. Lilys runs a responsible,
honest company that is built of the idea that chocolate should be just as sweet while being less
unhealthy, and backed with the pledge to assist any and all cancer fighters/survivors. Their
tireless dedication to bringing a first-rate chocolate to the consumer market is one of the many
reasons why lilys target markets are obligated to pay the price for the bars. The company website
offers the option to reach out to them with any questions or concerns regarding the quality of your
product, establishing that they work hard to hear their customers and take their advice under
consideration.
Social Trends: According to a 2013 interview with Forbes.com, the five key traits that
define affluentials of any age group are mobility, success, status, belonging, and finally,
consumption. Lilys ad campaign targets them because they are the most hungry to be on top, to
be the first possessing the latest and greatest in all things thinkable, food, technology, clothing,
etc (Forbes 2013). The other target group is those who achieved midlife success, people who are
wealthy within their means and can afford to eat what they want, when they want it. This target
group is not clipping coupons or pinching pennies, theyre exploring new tastes and creations,
regardless of price because they possess the capital to back it up. According to the book, Small
Business: An Entrepreneurs Business Plan, the graph below demonstrates how those living in
midlife success contain the educational, financial, and management experience to understand
what products theyre paying for.
Demographics: The demographic that Lilys is targeting in their initial ad campaign

Caucasian adults, primarily between the ages of 18-29 and 40-55. A 2012 study conducted by
NCA Sweet Insights, shows that adults 18 and over are the primary consumer of chocolate
annually, with the 45+ age group being the largest variable. (NCA Sweet Insights 2012).
Influencing Factors: Lilys ability to allow consumers to reach out and connect with
them is a huge factor, Facebook, Instagram, Twitter, and Pinterest are all common social media
tools utilized by Lilys to keep the customers aware and up to date on all of the new products and
promotions being offered. Lilys drive to offer a bar with such wholesome ingredients shows their
dedication to ethics and the willingness to work hard to make sure the taste of their bar stays the
same as those that use artificial additives and sweeteners. The companys dedication to ethics
stays strong as the website offers an interactive feature allowing customers to obtain a refund on
the price paid for a Lilys bar minus the cost of shipping to return the bar.
Social Media: Staying on top of social media in this day and age is vital for any
company, and luckily Lilys is already there. Using Facebook, Instagram, Pinterest, and Twitter,
their global reach expands that much more so that all of their customers can see what Lilys is up
to, and reach out with any further inquiries.
Barriers to a Larger Nationwide Market: Although Lilys is already established

domestically, there is always room to grow. To set up more production factories and distribution
centers, Lilys will look into both the geographic and demographic factors influencing certain
areas of the United States, such as cost, resource allocation, set-up fees, shipping/ freight fees, etc.
Barriers to Going Global: Some issues with going global for a company like Lilys
would be identifying national preference, competing with firms that are already established
themselves in the global marketplace, remaining unaffiliated with multiple cultural
conglomerates, and creating enough of a profit to afford expanding globally, setting up factories
and hiring more employees.
Authorized Sellers for Lilys Sweets (above)
Product Decisions
Product Issues: The target market that lilys is trying to reach falls under three main categories,
the affluentials, urban uptown, and midlife success. These groups of people are targeted because
of their need for a great tasting bar but also a healthy one at that. This bar being gluten free and
sugar free is exactly the type of bar that meets the criteria of healthy and tasty. Meeting these
standards set by Lilys chocolate is one of the issues that the bar would possess as in trying to find
a gluten and sugar free graham cracker to go into the bar is almost impossible so they would
specially manufacture it themselves.
Lilys substitutes some of the ingredients to fit the code of ethics that they stand for. The
s'mores bar is made up of graham crackers, cocoa, stevia, marshmallows, whole milk powder, and
cocoa butter. The first bite of the bar gives the consumer that taste of a handmade s'more over a
campfire with the sweetness of the chocolate and marshmallow along with the crunch of the
graham cracker. The weight of the candy bar is 5 oz. and its size is so that even though Lilys
chocolate could be portrayed as on the expensive side of things the consumer is getting a lot for
their moneys worth.
The Affluentials and the urban uptown groups both seem to focus their lifestyles on
similar effects. Some of these being health conscious and shopping at high end retailers and
stores, this fits perfectly into the S'mores bar because it is not only a healthier option than most
candy bars but it is only featured in middle to high end stores such as Whole foods and Market of
Choice.
Affluentials are very health conscious and having a gluten free bar will attract more of the desired
target market than usual. Symptoms of gluten intolerance include migraine headaches, skin
rashes, acne, joint pain or numbness, fatigue, forgetfulness, diarrhea or constipation, gas and
bloating. (Health benefits of a Gluten-free diet). These are all reasons why Lilys made a
statement not to include gluten in this product and why gluten free is healthier and more desirable
to this select target market. Some of the positive effects of gluten free is that consumers are
craving are improving cholesterol levels, promoting digestive health, and increasing energy
levels (The Health Benefits of a Gluten-Free Diet)
In the future if the product line expansion is warranted and the product is doing very well a
couple of decisions could be made on where to go with it from there. When the bar is profiting
and wanting to expand the addition of a dark chocolate s'mores bar would fit excellently into the
market for taste and health. Eating dark chocolate is said to In the long term, should cause much
less cholesterol to lodge in the arteries and we should see a lower risk of heart disease (Gunnars,
K.) This leads right back to even more health benefits for the health food conscious consumers.
Brand Logo
Packaging: Image of Label
**Continued On Next Page**

Brand and packaging Issues: Lilys packaging always looks professional and proper as well as
still being able to entice the consumer and letting them know that it is full of healthy, natural
flavor as well. This is great for the target markets because they are always looking for the high
end products that can still be considered healthy for them as well as delicious and satisfying.
The new smores bar will be created just like any other Lilys candy bar will be packaged
the same and contain the same design type. The packaging will draw in the consumer with its
warm colors bringing them to believe they can be next to a campfire eating s'mores without even
having to leave to go camping. The design for the packaging meets the criteria for Lilys bars in
which there is a humming bird facing left on the packaging along with the cool color scheme, a
branch or tree and the facts about the bar boldly placed on the front for display.
The actual material needed for the packaging will remain the same as for any other Lilys
bar sold. The material will help keep the chocolate from melting under heat and seal up the
product so that the consumer will receive a fresh and delicious treat when they open it.
Packaging is also a great way to advertise the Lilys brand name. By keeping the design
the same as the other Lilys bars any time a customer or consumer sees an image pertaining to a
hummingbird the style of art Lilys imagines then they will automatically think of the Lilys bar.
The packaging is a chance for Lilys to communicate its way of taste and texture to the consumer.
What the consumer thinks when they see a Lilys bar packaging for the first time is extremely
important to the decision of whether or not they will end up purchasing the product.
Product Returns: If a customer is unsatisfied with the overall quality of the Lily's bar they
reserve the right to seek a full refund from the company, minus the cost of shipping the bar back
to the manufacturer.
Product Life Cycle Issues: This s'mores bar created by Lilys would not be considered in the
introductory stage of the life cycle because there are still many other candy bars out there to
choose from and it is not an full new idea or product just a modified product. The s'mores bar is
in the growth stage of the life cycle. In the growth stage of any product recognition is a key to
success. Lilys must inform the market of the new bar and convince the consumers to try the
product or to switch to it from another one of its competitors. Lilys needs the marketing team to
analyze and determine the best way for word to spread about their new product.
Diffusion Strategy: The Lilys Sweets will be releasing the smores bar in the early spring of
next year. This s'mores bar is meant to target people who love going outdoors or just enjoy the
delightful taste of smores. Lilys is shipping this new product to nine distribution centers located
in the Mid-West, South, East Coast and the West Coast of the United States. These warehouses
are cold storage so the temperature in the early spring leading into the summer will not be a
problem in trying to keep the bars from melting. From there the bar will be released to middle and
upper class stores such as Whole Foods, Shop & Stop, Nutrition Smart, and Healthy Life Market,
along with others.
While wide spread knowledge about the s'mores bar is the ultimate goal right off the bat
Lilys is looking to hit the target market customers and make them aware of this new product
being brought into the market. Once the target market customers become aware of the product
then the early majority will keep coming back for the product and spread the word about the bar
creating more publicity.
Distribution
As Lilys Sweets begin its journey into becoming a noticeable company in the everyday
market, it faces a problem with getting out of the local operations in King of Prussia, PA to being
a nationally recognized chocolate company in the United States. Lilys already began its mission
to do just that by putting product in eyesight of its target market through retailers like Whole
Foods Market and Sprouts Farmers Market and many other organic grocery stores. As customers
look to avoid shipping fees, Lilys and Vitacost are great resources to fulfill those needs as Lilys
pays for the shipping of all orders and Vitacost rewarding customers with free shipping on orders
over $49.00. With distributions going across the nation and temperature being a factor in the
quality of each chocolate bar, warehouses across the nation are needed to provide a more regional
distribution rather than long trips by truck increasing the risk of a ruined product.
Method: Since Lilys is not as prominent in the community as a Hersheys bar or even a
Milky Way but what Lilys is known for is the higher standard that Lilys holds their chocolate
products to. With Lilys Headquarters in King of Prussia, PA, what can be done to expand its
target market from a local standard to a higher standard? By increasing its availability across the
nation. Lilys selected a handful of retailers to help get their brands on the shelf and start
producing some results. The main two retailers that stood out, as far as being well known, were
Whole Foods Market and Sprouts Farmers Market. Both are local stores here in Atlanta and
across the nation with Whole Foods being the more available in-store purchase option due to the
numerous stores across the United States. For example, Whole Foods allows the Lilys Chocolate
bar to become respected in an area such as Austin, TX which is 1,664 miles from Lilys HQ. As
far as online ordering, the best option for Lilys Chocolate Bars delivered right to your doorstep
would be to go on the Lilys website and order in your favorite case of Lilys chocolate (12 Lily
Bars) which brings your total to $48.67 including free shipping on the most delicious order a
person can place. This bring the price of each chocolate bar, to a unit price of $4.06 which is
almost invincible to the prices of 12 individual Lilys bars.
Costs: As the Lilys Sweets are stacked onto a 48 by 40 inch pallet it will end up
weighing a total of 500 pounds reaching a total of 27.5 cases of chocolate per pallet. The pallet
will approximately stack 39 inches high (1 meter) of a priceless chocolate bar. As Lilys
headquarters is located in King of Prussia, PA it will cost roughly $585-$675 for one pallet to get
to the furthest suitable warehouse in Tolleson, AZ (Freight Quote, 2016). Deciding to ship three
pallets instead of one will allow for a decrease in total cost of freight. For example, deciding to
ship three 500-pound pallets, at one time, will reduce the cost in means of more chocolate bars
being shipped for relatively the same price. This means in financial terms that Lilys is
saving money to ship more chocolate, in a single shipment, rather than to send one pallet, at a
time, to a far location. Although increasing the quantity of pallets reduces the overall costs for
each individual Lilys bar, it is not necessary to do so unless the results of an increase in sales are
shown. Wasting a product is equivalent to wasting money in the terms of business. Every decision
contains a price or an effect on the business and the success of that business. The quote, Work
smart not hard comes from the underlying meaning that smart business decisions will collect
more profits/success than someone working insanely hard but making uneducated decisions.
Intensity: The goal is to increase overall profit for Lilys Chocolate and how else does a
company benefit from its decisions rather than using a strategy to get it the stores it can be bought
at. Whole Foods Market and Sprouts Farmers Market are two highly used stores for Lilys
Chocolate products. Another way of retrieving this amazing chocolate bar is through Amazon or
Vitacost. Both are online distribution processes that mainly pertain the loyal Lilys customer or
those in need for gifting it to someone.
The target market is the main decision-making factor Lilys deals with. The popular use
of Whole Foods and Sprouts was a great way for Lilys to gain some attention to its target
market. With Whole Foods expanding rapidly, the young affluentials and midlife success groups
are demonstrating traits that lean on the new trends in the community. Whole Foods is a great
source of a quality grocery store while also containing products Publix may not stock to compete
with. With Lilys online ordering, the target market can be reached anywhere and anytime. The
E-commerce aspect of shopping today and it availability correlates directly with the customers of
Lilys and their profits.
Distribution Facilities: With many different options across the nation, it is hard to
distinguish what cold storage facility should be used by a company so finding a couple key
factors that will drive success within the Lilys business is what needs to be the focus points. Two
huge requirements for picking the locations of each warehouse was its availability/access to
whether it be interstates or major ports and the accountability of each company pertaining to its
reviews and freight notes about the successful shipments and the belated shipments they comprise
of on a day-to-day basis. After determining what qualities must be required of your cold storage
facilities. It is then time double-check the conditions of the each Lilys product and the success of
its delivery within the ventilated trucks. Lilys will be looking into nine new facilities ranging
across the states of Florida, Georgia, Tennessee, Louisiana, Pennsylvania, Ohio, Texas, Arizona,
and Washington. The diversity in the locations and why each is suitable for the target market and
allows Lilys to expand the consumer base it is reaching on a day-to-day basis. The locations
above will provide new opportunities to get to the stores that are currently in place and future
stores planning to join the industry, in the near future.
Warehouses
Lone Star Cold Storage

401 North Grove Road
Richardson, TX 75081
This warehouse is used for retail, food services and established customers that are in the industry
of order fulfillment. The cold storage allows for the Lilys Chocolate bar to maintain prestige
condition until delivering to the main stores, Whole Foods Market and Sprouts. This particular
distribution center is only 8 miles from its nearest Whole Foods Market, while the nearest Sprouts
Grocery Market is only 5 miles away. This is a great location to disperse the Lilys Chocolate Bar
due to the reduced cost in gas for the carrier. The pricing for this location run at about
$95.00-$200.00 depending on who you want handling your product. Sometime more reputable
companies can bring in higher quotes due to their experience in the market.
Nordic Cold Storage

4300 Pleasantdale Road
Atlanta, GA 30340
Phone: (770)-871-2600
This facility holds a distance from the heart of Atlanta but not much of a distance from either
Sprouts Farmers Market or Whole Foods Market. Both stores and multiple others range within 25
miles from the distribution center. This facility offers transportation services and allows for a
prosperous process for its temperature sensitive products. Nordic cold storage allows for the
Atlanta area to be a strong point of its warehouses due to the midlife success that is common in
the surrounding areas such as Buckhead, Sandy Springs, and even areas a little further south like
the cities of Macon. A 500 pound pallet going from Lilys Headquarters to Atlanta, GA runs a
freight rate of $300-$400 depending on the time sensitivity of the shipment.
Neptune Cold Storage LLC

7337 NW 37 Avenue
th
Miami, FL 33147
Phone: (877)-694-1736
With this cold storage facility being close to the water it is an easily accessed warehouse opening
allowing for more operations to take place. This warehouse stood out in regards to being a food
grade facility nearby the waterfront of Miami. This allows easy access to ports while maintain a
strong refrigerated dry goods storage of 500,000 cubic feet. Neptune Cold Storage also provides
useful services like packaging and package adjustments such as breaking down from a pallet to a
case, etc. As Miami, FL and King of Prussia, PA are located on different poles of the map, it costs
roughly anywhere from $360-$500 depending on the amount of time you want the shipment
delivered in.
Lineage Logistics
206 SW Michigan St
Seattle, WA 98106
Phone: (206)-767-7350
Lineage Logistics offers quick access to boat shipments being so close to the docks in Seattle,
WA. While also providing ground transportation to its customers and the cold storage Lilys
Chocolate products requires. Both Whole Foods Market and Sprouts Farmers Market are yet
again within a 20-mile radius from Lineage operations. Lineage Logistics already works with
bakery products, ice cream, and groceries requiring a cold storage system to maintain the quality
of its products. Another great thing about this facility is the USDA Inspection that is done on-site
at Lineage Logistics. The cost of a 500 pound pallet to go from Lilys HQ to this warehouse is
$590-$650, which is relatively the same price as going to Arizona due to the miles in between
these two locations.
Great Lakes Cold Storage

6531 Cochran Road
Solon, OH 44139
Phone: (888)-248-9600
Great Lakes Cold Storage is a public warehouse valued on customer and client service. Many
services are done for each pallet at this refrigerated storage unit such as shrink wrapping, picking,
and proceed to strategically place each pallet by picks up appointments for distributor pick up.
Warehouses temperature capabilities of reaching -20 degrees Fahrenheit to +45 degrees
Fahrenheit. This meets the requirements for most chocolates as they are supposed to be stored at a
temperature of 55 and 65 degrees. Although 45 degrees Fahrenheit may be a little on the colder
side that is better than melting each case before it gets to the drop off. The cost of shipping 500
pounds of Lilys Chocolate to this facility only costs around $190-$240 depending on which
carrier you trust in to successfully deliver your product.
Mesa Cold Storage

9602 W. Buckeye Road
Tolleson, AZ 85353
Phone: (623)-478-9392
Mesa Cold Storage is a good warehouse to work with as they assist in the
transportation/distribution services of the Southwest. (MCS) delivers across the state of Arizona,
New Mexico, California, Utah, Texas, and Mexico. They require all their customers to be
certified for what each individual does which tells Lilys Sweets that (MCS) can be responsible
for the pallets that Lilys trusts in them to deliver. With 5.9 million cubic feet of Freezer/Cooler
space, this is definitely a great facility to do business with, as they are able to assist in the
distribution across the Southwest helping expand Lilys Sweets grasp on the target market.
Nashville Refrigerated Services Inc.

918 Arctic Drive
Lebanon, TN 37090
Phone: (615)-449-8059
Although the facility is cheap and another place to help spread chocolate from it does not meet
the standards of other warehouse such as the USDA Inspection that the Lineage Logistics
Company uses. What it does allow for is support of Lilys being shipped from a state that is not
easily reached for Whole Foods Market and Sprouts Farmers Market. This warehouse is 35 miles
from the nearest (WFM) and 47 mile away from (SFM). Although these are a couple of the
furthest distances the company distributes from the main stores, it is still not an enormous amount
of time wasted allowing for this site to be used for hard to deliver places in the middle of the
United States.
Philadelphia Warehousing
500 N Columbus Blvd
Philadelphia, PA
Phone: (215)-627-8181
Philly Cold as some call it is great at providing customer service. These types of friendly
interactions result in a positive relationship that can be made with the customer and Lilys
Chocolate for on-time shipments. The warehousing here is great for helping the main shipments
of Lilys in the northern region of United States. Nothing hurts a company more than not being
able to ship all the orders needed to maintain successful results; especially for a company like
Lilys.
Henry Clay Wharf Cold Storage

6300 Terminal Drive
New Orleans, LA 70115
Phone: 1-800-STA-COLD
Henry Clay Wharf Cold Storage facility was built in 2012 with Mississippi River break bulk
access. This direct port to the New Orleans container port allows a fluent process of dockside
vessel loading. The cold storage here is capable of freeze blasting 1,200,000 pounds of cargo to 0
degrees Fahrenheit within 24 hours. The accessibility of this warehouse and the movement of
product on the ground is what presents the best capable way to not only get chocolates distributed
by vessel but by only being 5 miles from the nearest Whole Foods. Although the distribution to
Sprouts Farmers Market is a little more difficult that is due to the advantage Whole Foods
possess over Sprouts with the overall number of stores across the nation.
Website Concerns: Lilys Sweets website does a great job of crafting a very unique and
relaxed environment for online shopping for customers. It is a very easily accessed website with
positive information on the company. Describing not only the origin of the company but the story
behind Lilys Chocolate. Multiple options are displayed on the website from dark chocolates to
milk chocolate to ingredient filled chocolate. The website perceives a simplistic yet artistic feel to
its information providing the customer with a high expectation of their product. Another key
factor to its online store is the idea of free shipping on all online orders. The reasoning for this is
because, as a customer, an individual chocolate bar cannot be purchased. This creates an
environment and purchase option for the loyal customers of Lilys Sweets. For individual candy
bar purchases online, a consumer would need to look into Amazon or Vitacost for a less
quantified purchase. This creates a negative impact on the company as it forces the customer to
look further into stores/Amazon to finally purchase their product of choice. Lilys Sweets might
need to look into individual candy bar options as it may open up the option for a target market not
as familiar with the company and its products. Another missing ingredient to the Lilys Sweets
web page is the ability to view ingredients on each candy bar. Although there is a brief
description on each chocolate bar, a customer looking for specific ingredients he/she may be
allergic too would be a useful asset to the website and to the fulfillment of a purchase by the
consumer.
PRICING DECISIONS
Lilys Chocolate represents itself with high quality, natural ingredients, offering luxury
prestige chocolate products. Lilys strives to provide quality products at a quality price, while
most importantly establishing a connection to its customer base. Because of this, Lilys prices
their products in a prestige category, while remaining competitive. Currently, Lilys offers
chocolate to consumers at an average of $4.00 per chocolate bar. Given this pricing, while
producing 3 ounce chocolate bars, Lilys charges approximately $1.33 per ounce of chocolate.
Given Lilys relatively high sale price and quality brand image, profit maximization will be the
main strategy used to establish pricing objectives.. Recognizing the relatively high cost, Lilys
looks to establish and maintain profit maximization through prestige product placement, and
customer satisfaction and loyalty. Lilys chocolate is available directly to consumers through their
website, offering cases of 12 chocolate bars (3 oz. each), for $48.67, $4 per bar, and $1.35 per
ounce. Lilys in-store costs, such as at Whole Foods, is consistent with its online pricing. In
order to apply Lilys pricing objectives to Smores, the price and costs per single unit case,
containing 96 Smores bars, is based on the following cost analysis representative of sourcing
quotes of raw materials obtained online. Throughout the following pricing analyses, keep in mind
that Lilys marketing team set projected financial target goals for the Smores bar at $1.5 million
in the first year, $3.5 million in the second, and $15 million in the third, and a profit margin of
18.5% or more.
Raw Material Cost Analysis

*All ingredients are listed on the reference page (*)
Raw Material Weight/CS + 1% loss Price Cost
Cocoa 9.4536 $3.41 $32.25
Stevia 2.727 $2.55 $6.96
Graham Crackers 1.818 $2.10 $3.82
Marshmallows 0.4545 $0.69 $0.31
Whole Milk Powder 0.909 $15.20 $13.82
Cocoa Butter 2.727 $0.32 $0.87
TOTAL 18.0891 $58.03
Raw Materials
Above is the chart outlying the price breakdown of all ingredients, or raw materials,
needed to produce a single case of Lilys Smores bars. Upon completion of the recipe process,
ingredient proportions were established. Using these proportions, the necessary weight of each
ingredient needed to produce each case of 96 Smores bars were calculated. Material sourcing and
pricing quotes were obtained referencing Alibaba, the online wholesaler database. Within the
above raw materials table, each ingredient contains an additional 1% of the weight that is needed
for production. This 1% allows for any waste or loss of material throughout production, whether
it be in shipping or in manufacturing. Although it is not likely or expected for every ingredient to
lose 1% of its weight along the process, this provides a sufficient buffer in projections to account
for any loss or deficits that could potentially occur. The weight of each ingredient is given in
pounds used per case of 96 Smores bars, and is given based on its proportion established by the
recipe and respective to the overall weight of each chocolate bar, 3 ounces, and weight per case,
18 lb. or 288 ounces. According to the table, the total estimated cost of ingredients needed for
each case of 96 bars is $58.03, estimating $0.60 per Smores bar ($58.03 / 96).
Variable Costs
Variable costs are dependent upon production volume, and are subject to change
respectively. Variable cost component breakdown is proportional. Variable cost for Lilys
Smores bar includes raw materials, packaging, direct labor, variable overhead costs, freight cost,
distribution costs, brokerage costs, and variable marketing costs. All variable costs are
representative to a case of 96 chocolate bars per case, or unit. Variable costs are represented in the
following tables (first table represents cost proportion, second table represents actual cost) :
Variable Cost Component Cost (per case of 96 bars)
Raw Materials/Ingredients $58.03
Packaging $0.75
Direct Labor $0.16/bar
Variable Overhead @ 7%
Freight @ .001/mile
Distribution @1.6% case price
Brokerage @5% case price after allowances
Marketing (Research) @2.75%
Total $135.84
Variable Cost Component Cost (per case of 96 bars)
Raw Materials/Ingredients $58.03
Packaging $0.75
Direct Labor $15.36
Variable Overhead $13.44
Freight $1.01
Distribution $3.07
Brokerage 0
Marketing (Research) $5.28
Total $96.94
As previously stated, variable costs were figured based on the proportions from the profit
and loss statement. The estimated cost to package each case of 96 bars is assumed to be $0.75.
Direct labor, as self titled, is any labor cost assumed by those who are directly involved in the
process used to produce the chocolate bar. Which, according to the profit and loss statement, is
$0.16 per chocolate bar. Given that the case count is 96 bars, Smores direct labor equates to
$15.36 ($0.16 x 96). Variable overhead is a component based on Smores wholesale list price per
case of $192. Variable overhead, also according the the profit and loss statement, is 7% of list
price, assuming $13.44 in cost. Overhead costs that may fluctuate along with business activity are
represented by this number, including indirect labor and materials. Costs associated to
distribution of the product, assumed by Lilys, are dependent upon the list price, represented as
1.6% of case list price, coming to $3.07 per case. Brokerage costs, if applicable, would be applied
here. Brokerage fees are charged by brokers to companies for any services that facilitate the sale,
purchase, delivery, negotiation, or advice involved in the sale (Lamb, Hair, & McDaniel, 2013, p.
451). Proportionally, brokerage fees are estimated to be 5% of net price per case, which is net
price including any allowances. Because brokerage marketing channels were not used, brokerage
costs are $0.00. Freight costs, are represented as $.001/mile. For the sake of this cost analysis,
freight distance is assumed at 1,010 miles, leading freight costs to $1.01.
Variable costs, as shown in the above table, total to $96.44, meaning that for every case
of 96 bars produced, operation costs increase by $96.44. However, variable cost components
include raw materials, packaging, distribution, direct labor and variable overhead, which total
$90.65.
Fixed Costs
To determine fixed costs associated with production, a fixed overhead rate will be
applied. This fixed rate is based on the number of cases produced. Again, referring to the profit
and loss statement, fixed overhead rate is $1.63 per case. Calculating fixed costs also includes
general & administrative costs. These general and administrative costs are represented, as also
stated in the profit and loss statement, as 3.54% of wholesale list price, amounting to $6.80.
Between initial fixed overhead and general and administrative costs, total fixed costs amount to
$8.43 per case of 96 Smores bars ($1.63 + $6.80 = $8.43)
Total Manufacturing Costs

According to the preceding cost analysis, total manufacturing cost per case of 96 Smores
chocolate bars equates to $105.37 (96.94 + 8.43). With a total manufacturing cost of $105.37, the
cost per chocolate bar comes to $1.09 ($105.37 / 96), and $0.36 per ounce ($1.09 / 3).
Marketing Research Costs

Primary research costs equate to $5.28 case, which is 2.75% of case list price. With an
initial estimate of 500 cases, the total cost of initial primary research would be $2,640. These
funds would be allocated to research, primarily the tasks of sampling, taste testing and evaluation.
The marketing team used the Nielsen PRIZM database, a free online market segment research
database. This database provided information relating to market segmentation based on
demographic features and segments lifestyle and financial habits. Because this was done
in-house, using PRIZM, the secondary marketing research does not add any additional costs.
Promotion and Advertising Costs

Respective to this business plan for Lilys Sweets Smores bar, the print-ad, a billboard,
is the truest tangible cost not associated with materials and production. The initial Smores
video was done using Youtube, and was completed in-house, and therefore did not produce any
additional expenses. In respect to the billboard print ad, cost is a little trickier to estimate. Based
from Adfresco.com, an online source for local and national media and advertising availabilities, a
potential billboard location will be selected to estimate costs. According to Adfresco, a large
billboard located along an interstate that falls in one of the top 5 counties for the chosen target
market segment group, according to Nielsen PRIZM, will run about $1,800 per month(Adfresco,
2016). This is a digital billboard, and due to the fact that Lilys ad is already in digital format,
conversion costs are estimated at $0.00. Given these figures, initial billboard cost for the first
month will be $1,800 and $21,600 for the year. Considering the target market segment, social
media will play an important role in promotion. Because of this, Lilys Sweets preference is to
hire an outside social media freelancer. According to LyfeMarketing, the average social media
freelancer with 3+ years of experience will run $45/hr (LyfeMarketing, 2015). Given this wage,
for one hour a day, 5 days a week, an experienced social media freelancer can be acquired for
$900/month, or $10,800 per year. Again, considering the importance of social media presence,
especially within Lilys target market segments, this is considered a sacrifice well worth making.
Of course, advertising will be done on Lilys home website, but because it is already developed,
will also not produce any additional cost. Given these figures, the total cost of promotion
accumulates to $2,700 per month, and $32,400 for the year.
Promotion Cost (Monthly/Yearly)
Youtube Video $0.00
Billboard $1,800 / $21,600
Social Media $900 / $10,800
Total Cost $2,700 / $32,400
Pricing Strategy
When determining a pricing strategy, price skimming is always appealing. Price
skimming is the pricing policy whereby a firm charges a high introductory price, often coupled
with heavy promotion (Lamb et al., 2013, p. 729). In strategy discussion, status quo pricing was
also heavily considered. However, because of the enormous range of quality and price among
competition, the team settled on price skimming. To the average consumer, Lilys initial cost is
already considered prestigious or above average. It is recognized that in order to build and sustain
a consumer base for the Smores bar, product loyalty must be gained through consumer outreach
and promotion. Lilys chocolate already holds a reputation of high quality and prestige, and with
the addition of the Smores bar, a sense of uniqueness is also obtained. Although Lilys already
built a solid and sustainable sales record, the Smores bar is still considered an introductory
product. Because of this, focus is placed on consumer outreach and promotion versus profit
maximization. Due to the saturated market competition, and ever changing environment,
especially within the target market segments, Smores is considered to be subject to elasticity.
Because of this, Lilys will continue to re-evaluate pricing strategies and consider any and all
opportunities in the market-place to build and sustain a successful product.
Elasticity Strategy
In todays market environment, especially the market in which Lilys falls, Lilys
cultivates an extremely elastic market-place. Luxury, or prestige products, such as Lilys Smores
bar, are victim to high elasticity of demand. The ability to compare prices is extremely improved
online, which increases price elasticity (Lee, B., and Lee, K., 2013, p. 2). The online
environment also lowered the cost and effort required from consumers to search and obtain
product quality information(Lee, B. and Lee, K., 2013, p. 3). Lilys Smores will take advantage
of this accessibility of information to consumers once Smores establishes a strong presence.
Through Lilys website, promotion and advertising, social media presence, and all other outlets,
product quality information will be provided to consumers without them having to search for it.
Lilys will not wait for consumers to find themselves curious about Lilys product quality and
quality of its competitors. Instead, consumers will be educated through promotion and social
outreach. Lilys reserves this strategy as an opportunity to counter elasticity of demand if the
situation arises. Also, all chocolate, especially prestige or luxury chocolate, is sensitive to
seasonal changes of demand, specifically related to holidays such as Christmas, Valentines Day,
Halloween, and others. The following strategies are established to counter any potential
unfavorable outcomes resulting from demand elasticity changes:
Seasonal promotional discounts and offers

Seasonal gift packages
Samples of Smores with the purchase of alternative Lilys chocolates
Seasonal packaging changes
Free or discounted shipping
Customer Loyalty Programs
Competitor Cost
One of the most important determinants of product pricing and strategy is the market in which it
will compete. Pricing of competitors is listed in the table below:
Competitor Price/Size (in ounces) Price (per ounce)
Godiva $3.99/3.5 $1.14
Ghirardelli $3.95/3.5 $1.13
Lindt $3.99/3.5 $1.14
Green and Blacks (Organic) $7.50/3.5 $2.14
Mars Corp. (Snickers) $1.09/2.07 $0.52
Nestle (Butterfinger) $1.08/2.1 $0.51
Charles $7.95/3.5 $2.27
Although the examples of Mars Corps Snickers and Nestles Butterfinger are not exact
product matches to Lilys Smores, they are still a competitive alternative offered to consumers,
and are listed as reference to this market pricing level. The companies such as Ghirardelli and
Lindt are more equal product competitors, specifically due to their similar pricing model. These
chocolates are considered upper, middle end alternatives that are still accessible to most
consumers. These, along with Mars and Nestle, are companies that offer a broad product line.
Chuao, Green and Black, and Charles, although relatively more expensive, are still considered by
Lilys as competition. Many consumers would view the price difference between Lilys, which
averages $4/bar, and Green and Black, for example, which averages closer to $7.50/bar, as too
large of a difference to perceive as true equals or true substitutes. Lilys hopes to take advantage
of this perception by providing the same ingredient quality, perceived prestige, and positive
customer experience, but for significantly less cost in comparison.
Break-Even Point
With all costs accounted for respectively, a break-even analysis can be ran. A
break-even point, is the sales volume that must be reached before the company breaks even and
no profits are earned (Lamb et al., 2013, p. 707). Start up costs, which were based solely on
promotional activities, is $20,000. Because the Smores youtube ad was done in-house by
employees, the print ad was the only contributor to start up costs. Based on the net sale price of
$191.90 per case of 96 chocolate bars, and a total cost to produce each case, including market
research costs, of $110.65, Smores contribution margin per case is $81.35 ($191.90 - $110.65).
Meaning for every case sold, $81.35 is contributed to the company. Based on these figures,
selling 246 cases of Smores will surpass the break even point. If related to individual chocolate
bar sales, each bar sold contributes $2.91. Respectively, 6,873 chocolate bars would need to be
sold to exceed the break even point. These figures, compared to projected sales, are obtainable
and indicated potential success of maximizing profit.
Differentiation Strategy
As a company, Lilys is extremely aware of the fact that typical competitors, or leaders,
of the chocolate bar industry provide cheaper alternatives. Because of this, strategy for Lilys is to
become a prestige product. With the goal being to differentiate the Lilys Sweets Smores bar
from competition.
Lilys Sweets, as a company, uses Stevia instead of processed sugar, and gluten free
ingredients. Because of this and high quality and natural ingredients, the Smores chocolate bar is
immediately differentiated amongst competition. Lilys must rely on the consumer base to be
aware, respective, and receptive to this fact. However, strategy to differentiate ourselves further
and to create lifelong customers is still needed. Because of Lilys quality ingredients, the cost to
produce is significantly higher than most others, automatically increasing the sale price. This
raised price will automatically elicit a perception of a prestige product. However, it is part of the
strategy to be above price of the normal competitors, and below the price of other high end
producers. Because of this price point, Lilys possesses the potential to produce high revenue,
while still maintaining favorable profit margins.
Lilys is also aware that compared to similar quality chocolate bars, Smores pricing is
relatively competitive, if not affordable. Lilys differentiation strategy will be strongly dependant
on market reception. Since Lilys Smores is competitive with high end chocolate bars, but is
priced below the competition, it could be perceived as a price penetration strategy. There are also
companies that are priced right along with Smores, but do not offer the same level of perceived
prestige, that pricing strategy could be described as price skimming. The most important
determinant of differentiation strategy is to be perceptive of market reception, and be aware of
which market segment respond the strongest to product quality and product pricing. Because of
this, Lilys will remain ready and able to adapt strategies to the market. Differentiation strategies
will revolve around promotion, distribution and placement and pricing. As a company, it is a true
beleif that Lilys products quality surpass their price, and therefore is not willing to significantly
drop its cost and belittle its value. However, Lilys will remain aware of the possibility of the
need to raise pricing if Smores needs to further differentiate itself from its same quality level
competitors.
Discounts
Discounts are not considered by Lilys as a prefered market strategy, however, different
discount opportunities will be analyzed based on their potential to strengthen Lilys Smores
market share. Because Smores is a high quality, prestige product, Lilys look to avoid excessive
discounts to avoid a drop in perceived quality. Many of the potential discount strategies were
alread discussed in the previous section of elasticity strategy.
The most influential discount strategy applied to customers would be cumulative quantity
discounts, or a deduction from list price that applies to the buyer's total purchases made during a
specific time-period(Lamb et al., 2013, p. 739). An example of this would be, a customer who
purchases 10 orders of $50+ will receive a promotional gift package. This promotional package
will include a variety of Lilys chocolate products, and therefore also serves as an opportunity to
increase customer awareness of product variety. First time customers may be offered free
shipping during certain promotional periods, but respectively. This promotion could serve useful
in acquiring new customers, but could also reflect negatively on returning customers, making
them feel neglected and not appreciated. The cumulative quantity discount, or customer loyalty
program, should serve to counter this perception. One promotional strategy that Lilys agrees is
important to implement is seasonal discounts. These discounts will serve to compensate for
seasonal changes in demand, and increase new and returning customer acquisition.
For in-store purchases, or brick and mortar customers, these same discount strategies
may be implemented, based on market reception. Due to the fact that customers receive a deeper
connection to a purchase when it is made in person, in store, Lilys would like to account for this.
In store discounts will be largely emphasized during seasonal periods. Forms of discounts will
most likely cultivate in the form of buy one get one half off deals, or buy 3 and get 1 free as a
gift. This strategy should create consumer interest, and reduce purchasing decision time by
enticing customers with a money saving promotion. Lilys realized that to implement a discount
strategy like this, especially in store, will require additional funds for advertising and consumer
awareness. Because of this, price analysis will first take place assessing whether the increase of
demand brought on by the promotion will outweigh the cost of advertising said promotion.
Special Pricing Tactics

In discussions of price discounts and bundling, potential special pricing tactics for
Smores were developed. A strategy that seemed most viable is odd-even pricing, or a price
tactic that uses odd-numbered prices to connote bargains and even-numbered to imply
quality(Lamb et al., 2013, p. 745) . For example, reducing the sale price of Smores from $4.00 to
$3.99 to imply a perceived bargain. Although this only saves a consumer $0.01, it is an automatic
psychological perception of bargain. At this odd numbered price, the customer sees a $3 cost
instead of a $4 cost. This strategy would be a simple, basic, and easy tactic. Another tactic is the
Lilys Customer Loyalty Program. In this program, customers who maintain a minimum amount
of orders, based on quantity and consistency, receive special discounts and, promotional gifts or
incentives.
Price Bundling
Price bundling is a functional tool for acquiring new customers, and retaining existing
customers, direct to consumer or wholesale. The following price bundle strategies are outlined for
their respective scenarios. The first price bundle is geared towards new online customers. When
placing a first order, customers receive free samples of related Lilys products. Having returned
for multiple orders, the customer loyalty program kicks in, and customers receive purchase
discounts off their purchase order total. If said customer continues to return, they are offered free
shipping for all future orders over a predesignated amount.
Price bundles geared towards wholesale, business to business purchases, differ. The first
bundling strategy discussed relative to wholesale buyers, qualify as noncumulative quantity
discounts, or a deduction from list price that applies to a single order (Lamb et al., 2013, p.
739). Order quantities will be zoned into bundle levels based on quantity, and discounts will be
dependant upon the zone of order quantity. The following is an example scenario of Lilys
discount strategy. Buyers purchasing 500+ cases receive freight absorption, buyers purchasing
1,000+ cases will receive a wholesale list price deduction, represented as a percentage of cost,
and buyers purchasing 5,000+ cases will receive freight absorption and a list price deduction. All
first time wholesale customers receive a noncumulative quantity discount. An example of
cumulative quantity discounts applied to this scenario would include a buyer who places orders,
within one of the three quantity level zones, consistently over a period of time. In other words, a
buyer placing an order of 1,000+, falls into the wholesale list price deduction, and while these
orders accumulate over a period of time, increase in discounted rate.
Environmental Factors
Now more than ever, environmental factors, or events occurring externally, beyond
company control, must be evaluated. These external factors contain tremendous potential to
impact production and consumer decision making. It is impossible to foresee and brace for any
and every potential environmental, so the goal is not to avoid everything, but to be prepared for
anything. A potential factor could be the accessibility of materials needed to produce Lilys
products. Stevia is an important ingredient and cornerstone of Lilys products. If there was ever a
supply shortage, it could be detrimental to production. To counter this, supplier substitutes will be
evaluated and selected. One factor, considered the most important by many, is the economy. The
economy fluctuates tremendously, and is unpredictable. Lilys will strive to stay ahead of market
analysis, and be as up to date on market trends as possible. If ever needed, changes in Smores
pricing strategy may be necessary. If the economy experiences recession, Smores price may need
to drop. If the economy thrives, Smores price may need to raise because consumers are
beginning to want to spend the money that they possess. Also, even slight increments of inflation
would tremendously impact the bottom line. If inflation occurs, cost to produce goods rises, and
profit margins drop. At a first sign of this, Lilys would need to gear its promotion to emphasize
product prestige and quality to prepare the market for the possibility of a price increase. As
previously discussed, seasonal changes are an extreme factor. These changes are relatively
foreseeable and possible to adjust to. In discussions of potential negative factors, Lilys agrees
that in a case of economic problems, maximizing sales is more important that profit
maximization. This is because of the importance of sustaining Lilys market share. Also, when
the economy rebounds, having sustained market share will be more important that having
sustained profit margins.
Profit and Loss Statement

As discussed previously, total costs to produce each 96 count case of Smores, including
market research cost, is $110.65. With a list price of $192, and net price of $191.90, total profit
per case equates to $81.25 ($192 - $110.65). Respectively, this means a profit margin of 42.5%,
well above the minimum target of 18.5% .
Now that the pricing breakdown is complete, projected figures can be compared to
Smores set target revenue, which again is $1.5 million in the first year. With a wholesale list
price of $192, 7,813 ($1.5 million / $192) Smores cases, or about 750,000 individual bars, need
to be sold to wholesale buyers to achieve the first year target revenue. Furthermore, selling direct
to consumers, to achieve target revenue, 375,000 Smores bars would need to be sold at $4/bar
(1.5 million / $4). In the second year, 18,230 cases are needed to be sold wholesale to achieve
target revenue of $3.5 million. Direct to consumer, 875,000 individual bars would need to be sold
at $4/bar to reach target goals. Lastly, in the third year, 78,125 wholesale cases need to be sold to
reach $15 million in revenue ($15 million / $192). Direct to consumer, 3,750,000 individual bars
need to be sold, again at $4/bar, to reach target goals.
Analyzing Marketing Opportunities
The target markets for the Smores chocolate bar are; affluentials, urban uptown and
mid-life success. The following gives information about the company that is appealing to the
target markets and then an analysis of them individually.
Lilys Sweets was chosen to introduce the Smores chocolate bar. The firms goal is to create a
premium, mouthwatering, healthier alternative to the conventional chocolate treats loved. They
also strive for a goal to operate ethically and sustainably. The company was named after the
owners niece who fought childhood cancer. Due to that, the company gives a portion of its
profits to help support childhood cancer. Their mission statement is Indulgence has never tasted
this good (2011).
The firm contains a societal orientation. They want the consumer to believe that when a
Lilys chocolate bar is bought; it is both good for your body and world. It is perceived positively
by healthy people because of its stance on being sugar-free, gluten-free, GMO free, and having
fewer calories than conventional chocolates. It is appealing on an ethical level because they give
back a portion of their profits to childhood cancer and because they are fair trade certified.
As mentioned earlier, the target markets chosen are the Affluentials, Urban Uptown and
Midlife Success (2016). The common traits for three markets seem to be the availability of
disposable income and health consciousness. The chocolate is distributed at health food location
such as Whole Foods. Places like that with buyers who are already looking for healthy
alternatives. The market is essentially already drawn in from the store label itself. The next hurdle
to overcome is to make the consumer choose this chocolate over the others. The strengths of this
chocolate brand come from its ethical and sustainable qualities. The unique flavor offering
Smores flavored is the key strength. There is no other product like it on the market. Other
products may come close when looking at ethics and sustainability but they lack such flavor
profiles. It is always the same chocolate, fruits, or nuts being used. Having a healthy Smores bar
is unheard of.
The price right now is set on $3.25; binging in annual sales of $4.8 million; but it may change
after a careful revision of the budget and cost of the product. The price is set so that it is not
unaffordable to a person who is health conscious yet lacks the funds. Products with similar weight
(5 oz.) and size (7 x 3.5 x 0.5) are priced around the same amount. The firms goal is not to be the
cheaper option, so worrying about the competitions price is not a big priority. It is rather the
quality and message of the product that is worth competing in. The markets tendency to not look
at price when buying consumer goods, especially if the firm contains a resonating message.
Promotion of the product will be through health stores, health food trade shows and health
magazines. High-end furniture stores and clothing stores are also being considered for possible
distribution. Those locations also draw in the same target market so theyre ideal for business.
The target market is generally a trend following market. And the trend now is healthy and
delicious products; which are the exact characteristics of the companys new chocolate bar.
The ingredients of the bar look simple at a glance; chocolate, marshmallow, and graham
crackers. It is more complicated when carefully looked at because the graham crackers should be
sugar and gluten-free. The marshmallow should also be sugar free as well as being vegan (regular
marshmallows contain animal gelatin). The number one ingredient to make the chocolate,
marshmallow and crackers is stevia sugar. The trend these days are to be gluten free and healthy
so the market will be drawn in by these characteristics.
The Affluent segment is split into three categories; mass affluent, highly affluent, and
super affluent. The Mass affluent is a one or more person combined income of
$100,000-$149,999. The highly affluent is also bringing in around the same income as the mass
affluent, just slightly higher. The super affluent contains a one or more person combined income
of $250,000 or more. All groups bring major spending power and influence. Mass affluent buy
frequently and often in volume and hold influence over their peers. They spend a total of $1.72
trillion annually, even though they are less than 13 percent of U.S. households, their spending
power is huge. The highly affluent possess the highest purchasing power. They care a lot for
brand loyalty and suggestions of others. Overall the affluent are highly educated and generally
choose quality over price and are brand conscious. These markets will most likely purchase Lilys
chocolate. If the chocolate quality is good and the brand possess a good reputation then they will
definitely be drawn to it. Since they hold a large amount of disposable income, they will most
likely not care if the price is high. They are also major influencers; if they choose to purchase the
chocolate then most likely they will be able to influence their friends, family, coworkers, etc.
(2008)
There is another division between the affluent (F. 2015):
Urban Uptowns are living in metro urban areas. They care a lot about convenience of
products. They work as executives or professionals in business, finance, entertainment, and
education. They are not racially diverse and are usually single. They also contain high purchasing
power and influence over others. They usually are adults without kids, which may seem like a
con, but luckily the chocolate bar being marketed is not being marketed for children. It is
generally for the financially stable adult. Urban uptowns also care a lot about what others think of
them. Even if they do not believe in sustainability or healthy benefits, theyll still purchase
products because of the image it gives to other people. Urban uptowns are predominantly white
right now but theres a slow rise in them become more racially diverse. Marketing can be done so
that it appeals to all races. (1997)
Midlife success individuals are those in the age range of 40-60. Up until that age they
probably did not hold that much disposable income. So now that they possess it, they find various
ways to spend it. They are not the most influential market since their peers might not be on the
same level yet. These individuals are the ones who will attend trade shows to see the newest
vehicles or electronics. They will also do their research and find information about luxury
products. Middle life success individuals are also characterized to be very rational. Depending on
the situation they might choose price or quality and vice versa. (E. 2015)
After analyzing the Affluent market segment, it came as a surprise that they do not care
about being different when it comes to consumer product purchases. The Affluent are more
concerned about doing the right thing on an individual level. The Lilys chocolate bar should be
appealing to this market because it is sustainable, eco friendly, partakes in free trade, etc. The one
size fits all strategy for marketing may not work for this market segment. They would want
promotions aimed at the sub-segments in the market. An example would be if there were separate
ads aimed at the different races in the segment. A personal advertisement appeals to this market.
Unfortunately, it is not financially possible to contain a large amount of variations in
advertisement for Lilys. Chocolate is a consumer product so not much interpersonal promotion is
done. When large purchases are done, interpersonal promotion is important to this market. The
most effective promotion for the market would be mass communication. Affluent and the other
two segments are becoming more and more tech savvy. Social media and ads on websites are able
to reach them, rather than paper or TV ads. Especially with the rise of services like Netflix,
consumers are decreasing the time spent watching shows on an actual TV. Ads on frequently used
websites, YouTube, Facebook, and Instagram would garner the best results. Another way to get
results is to partner with already trusted brands that the market is using. The current image of
Affluent suggests that because they control their vast wealth so they can leave a brand at any
moment and go somewhere else because they own the right of purchasing power to do so. Thats
not true, Affluent market is overall very loyal and trusts the brands they use. (2008)
Urban uptowns are usually single people who care for their health. They would be best
described as responsible spenders. They also hold enough of the money but are not throwing it
around without research. The brands background is important to these individuals. They tend to
go towards brands that represent them, and also make sure to read reviews on products. They are
also very receptive to online advertising. Urban uptowns are living in stable financial conditions
but that does not mean that was always the case for them. They built up their lifestyle so theyre
careful about where their money is going. This market is also very concerned about efficiency
and understands the value of time. If Lilys is readily available, these consumers are much more
likely to purchase the bars. If the bars are only found in two stored in their local state then most
likely urban uptowns would not make the purchase no matter how eco/health friendly the
chocolate is. (1997)
Midlife success is a challenging market segment. The market consists of older individuals
who may not be eating as much chocolate as they were when they were younger. Their spending
habits also vary. Midlife success consumers became rich later on in life so some may still keep
the purchasing behavior of their pre-success self. While others in the market do not care and are
looking for anything to throw their money at. Advertisement to this segment would be focused on
persuasion. (2015, E.)
It is important for marketers to display an image of the markets lifestyle/living conditions. These
pictures were seen to be best representative of the different markets:
Urban Uptown (2015, R.W.)
Convenience living, eco friendly, lively, social, singles
Affluent (2015, S.J.)

Secluded, luxury, family
Midlife Success- (2014)

Older, financially stability
As mentioned earlier, characteristics of the Smores bar follow trends which will attract
customers. An article was written on the top 10 trends driving the global chocolate confectionery
market. The article listed desserts in chocolate as the #2 trend saying, Chocolate used to be an
ingredient in desserts, but now desserts have become an ingredient in chocolate confectionery.
From crme brule to crepes and tiramisu and a whole other range of desserts desserts are
becoming flavors. Beyond baked desserts, Lilys is also seeing things like milkshake and ice
cream flavored chocolate being launched. The German company Kaoka, for example, launched
an organic dark chocolate with buttery crispy crpes. (M.M. 2014) The target markets are
trendy as well as being trendsetters; including the Smores ingredients are very appealing to the
target markets.
Within a market analysis, industry analysis is crucial for determining the success of a
product within the overall market. There is concern that the luxury chocolate growth is not
happening so consumers are not purchasing. That is not true at all. Since 2009, there was a 13%
increase in luxury chocolate sales. Increasing disposable incomes as well as changing public
sentiments regarding health and the global community is the driving forces behind this growth.
(M.S. 2016) During the recession there was a decrease but ever since the economy started to
recover, the sales are going up again. There is a dramatic increase in sales of sugar free, reduced
fat chocolates, as the market becomes more health conscious. The world saw a cocoa deficit in
recent years making chocolate production more expensive. Lilys possess no plan to change
formulation or sacrifice quality to maintain prices. The target market is shown to not focus on
price but rather the quality, message and image of the bars.
Lilys prides itself on being fair trade. Fair-trade certified chocolate is another fast
growing segment of the market, where consumers pay a premium to ensure goods are produced in
an ethical manner. As the global community grows smaller with the communication revolution, it
becomes glaringly obvious that goods produced in developing countries are often subject to
horrible labor conditions or controlled by dominant industry participants. Fair Trade is an social
movement aimed to promote sustainability in developing countries, and generally requires a
higher price but conforms to higher social and environmental standards. (M.S. 2016)
When Lilys reaches high sales they will move on to the world market. The current target
markets; affluentials, urban uptowns, and mid-life success; all holding the ability to popularize
a product outside the U.S. A lot of traveling is done by these markets so it is not unlikely that a
demand could arise from other countries. (J.M. 2014)
Lilys Sweets Smores Bar Commercial 2016
Commercial Link: https://youtu.be/4Gb-eapYASM
Promotion
Promotional Strategy: Promotional strategy is defined as the method you use to spread
the word about your product or service to customers, stakeholders and the broader public (Small
Business). Lilys Smores chocolate bar mainly consist of adults who are 30+ years old without
kids. They are very health concuss and still be able to enjoy a great candy bar. Lilys Smores
candy bar is very health oriented that targets people that still enjoy sweets. The chocolate bar is a
little more costly, but it is directly mainly towards the wealthier class. Lilys Chocolate is already
sold is several retails stores that also are health oriented. Based on research there is roughly three
main target market groups for the Smores chocolate bar. The affluentials, urban uptown, and
midlife success, which the United States contains over 35 million people that fall into those three
categories. A great local target market that Lilys Smores Chocolate is Buckhead, Atlanta. There
is a Whole Foods already in the area and one of the strong points for Lilys Chocolate. Lilys
Chocolate is going to promote their new product by displaying all of the healthy qualities in its
product. Lilys wants people to still eat chocolate and not worry about it being unhealthy. There
are several different advertising strategies to help promote a new product from Lilys Chocolate.
The radio and a billboard are the main strategies with most adults having to drive to work every
day. The target market is also starting to use more technology and social media. Facebook is the
main target with social media because of the easy and affordable it will be. Lilys Smores
Chocolate possess the ability to sell based on the fact that there are so many people in the target
market that want to stay healthy.
Objectives:
The overall objective is to generate awareness of Lilys Smores chocolate bar by 65% of
existing customer and 8% to potential customers in the target market. The people need to be
aware of the product and its name in order for the company to be able to sell the product
successfully. Advertising on the basis of how healthy the chocolate bar is compared to other
chocolate bars. Educate the people on the product, since it is sugar and gluten free. Lilys
Chocolate already possess a great image in several stores, which will help when introducing a
new candy bar. Lilys needs to create interest with existing customers and potential customers
with the new chocolate bar. Someone that already loves is who they need to start with and expand
to new customers. The new candy bar need to be displayed with several different advertising
ideas to reach out to all of the potential consumers. Create the interest of people wanting to know
more about the product and lead to them wanting to try the product. Once you get them to try to
product, there is a greater chance of them becoming a returning customer. Lilys Chocolate needs
to create a desire for people to want to buy the new Smores chocolate bar. When a product is
displayed is several different locations, then people will start to recognize it and potentially buy it.
Without action Lilys new Smores chocolate bar will not do great in the market. There needs to
be a call to action in order for all of the objectives to work. Each advertisement will create a way
to connect it straight to buying the new Lilys Smores Chocolate bar. The company needs to
create a push for people to buy the product right away instead of thinking about it. It all starts will
a few consumers that leads to thousands because of technology and communication.
Advertising Target market How often? Measurable

Strategy
1 Social Media Create ads and Daily Who views the
links to connect ad and who goes
to people. to the link based
on the ad?
2 Billboard On interstates Always Who views the
near wealthier billboard and
communities goes to the
website.
3 Radio Most people Weekly Based on
drive to work. listeners to the
station.
4 Community Connect to the Weekly See who likes it
community. and buys it in the
Make them feel future.
good.
5 Retail stores Target health Daily View buyers
concuss stores from the stores.
and higher end
stores.
Theme:
Lilys Chocolate bar wrapping is more of a relaxing, colorful, and peaceful. All
wrappings contain a tree feature with nature. Lilys Smores chocolate wrapping contains cool
colors for the night time and a bird on the tree. The only warm spot is around the fire where
smores would be made. It connects to the potential buyers that all remember when they were
young would make smores outside by the campfire. The front also contain the name in big bold
letters along with the flavor at the top. The chocolate bar also displays that no sugars are added,
all natural, 55% Cocoa, and non GMO. The wrapping catches the attention of the buyers based it
connection to peoples emotional aspects of when they used to make smores as a kid. The
wrapping also wants to inform the potential buyers on the ingredients and how healthy the candy
bar really is. The product shows the four main traits on the front to show that it is a great choice
for healthy people. The graham crackers are gluten free as well, which will also widen the market.
Lilys Smores Chocolate bar really wants to display all of the features that it is a healthy choice
even though it is chocolate.
Message:
The main message is being able to enjoy a piece of chocolate without having to worry
about all of the negative problems that come with most chocolate providers. The new product
really connects with Lilys chocolate overall because it is very health oriented. Smores really
connects with any potential buyers emotion of them as a kid making them think or always
wanting to make one. It also shows more of a high class approach with the cost and design. It
displays a high quality of chocolate, while also being healthy and affordable. Another message
would be remanence based on the target market. Lilys wants them to feel young again and like a
little kid finally being able to eat some chocolate after dinner.
The marketing team decided to go with remanence as the main marketing plan. Lilys Smores
is all about being able to reconnect to a persons childhood. Reliving the days of not caring about
how many Smores you ate, while sitting around the campfire and making memories. Promote the
great memories of childhood, while still making sure that it stays healthy. Lilys Smores
chocolate goal is to promote a new way to enjoy chocolate.
Lilys Smores billboard below:
Media:
There are several different ways to connect to the target market through media in general.
The radio and billboards are two of the ways the company plans on connecting to the potential
consumer. Most people drive to work every day and deal with traffic. Studies show that most
people look at billboards, while sitting in traffic. The company plans on putting billboards up in
areas where most of the target market lives. Several people also listen to the radio on the way to
and from work. Lilys chocolate will be advertised on the radio stations that the target markets
tend to listen to. Television is another strategy that the company might use depending on the cost
and air time.
Social Media:
Social media is going to be the biggest push for Lilys Smores Chocolate simply based
on the fact of the technology that everyone possess today. The main target is Facebook because it
grew dramatically over the last decade with the target market. It is so much easier to share links,
ideas, videos, and other advertising ideas that the company is trying to use. With that being said
the company still needs to separate themselves from the competition since there are so many other
companies using Facebook for advertising. The company needs links to the homepage in order for
potential buyers to gather information on the product and buy on instantly. There are other social
media sites that could lead to potential buyers, but they are not as exponential as Facebook.
Appeal:
The company wants to appeal to the target market by connecting them to their emotions.
The idea is to get them to think about when they were a little kid making their very first Smores.
Imploring them to think when is the last time that they had a Smores? Also connect to the health
oriented aspect of the product. Display the healthy parts of the candy bar compared to other
chocolate bars. Connecting to buyers leads them to think more about the product and possibly
buying it to connect to their childhood.
Image:
The image connects people to nature and a peaceful mindset on the chocolate bar. It
promotes great tasteful chocolate, while still being healthy for the consumer. People should not
feel guilty for eating a chocolate bar and this is the perfect bar to do just that.
Uniformity:
The company wants to convey the same message to all customers across the United
States. Getting people to be more health concuss, but still having a sweet tooth. Connect to their
childhood memories and nature. Make the wrapping and product stand out from the rest on the
shelves and through social media. Promote what it ultimately stand for and what it brings for
Lilys target market.
Advertising:
The main advertising will focus on nature and how health driven the chocolate bar is. It
will display images of people eating the chocolate bar along with the actual wrapping and
nutrition label. The company wants to persuade the target market into buying the candy bar and
inform their companions for new customers.
Public Relations:
Having good public relations is very important when trying to sell a new product in the
market. Public relations is all about evaluating attitudes and interest, then creating a course of
action. It all starts with creating a great image for people. Educate the people on the new product
and what separates it from its competition. Create good relationships with people by giving out
free samples, coupons, or contest in order to get some of Lilys Smores chocolate. With good
public relations it leads greater potential in sales. Create ways to make better relationships with
people that might not even care for the product. They could still tell other people what a great
company Lilys is, which could lead to more customers.
Promotional Strategies
Create an ad on Facebook that only the first 100 people get a free sample of Lilys
Smores. Create better offers for stores that already sell Lilys Chocolate. For example, give
Whole Foods a discount of they sell so many of the new Smores chocolate. Use any potential
promotion strategy to connect to more people in the target market and get the name to more
people.
Forming an alliance is another great way to create a good relationship with potential
buyers, suppliers or retail stores. Create a bond with the suppliers to produce gluten free and
sugar free graham crackers. Give an incentive for the retail stores to want to sell more of the new
chocolate.
Overall, everyone needs to work as a team to get the new product into the store and into the hands
of the target market.
Plan Implementation and Measurement

In efforts to implement, sustain, and thrive following the market plan, the following
measures were prepared to achieve success:
The first, and most important strategy, is excelling in market analysis. This means having
a direct relationship with customers, listening to their input, and reacting appropriately. There is
no way to provide a perfect product without listening to those who indulge in it. More
importantly, those same customers support Lilys, so Lilys supports them. Providing an ideal
customer experience is Lilys number one priority, and maintaining a healthy relationship with
them is imperative to achieve this.
As previously discussed, there is no way to predict everything, or even anything, in the
future. Preparation is the only solution to this problem. Aligning with market success analysis and
customer satisfaction analysis, following previous and current trends are important to prepare for
upcoming trends. Trends will be assessed and cross referenced with upcoming promotional
strategies, pricing and distribution strategies, and more. Leading market analysis experts will be
consulted when profits allow to do so.
Also aligning with the goal of building and sustaining open customer communication,
social media presence is perceived as imperative. Specifically related to Lilys customer base,
which includes many millennials and urbanites, social media is key. Promotion costs could be
reduced by bringing social media presence in-house, however, it will not be. Lilys strongly
believes in the worth of this presence, and is committed to building presence correctly, even if
that means spending a little more money in the promotional and advertisement department.
Success of this strategy will be measured using typical sales analysis following social media
promotions or presence campaigns.
Just as important as communicating with customers, Lilys must communicate within
itself. Marketing is the culmination and meeting of all business departments. Lilys believes its
success in better serving its customers is dependant upon this inter-company communication. At
least once per month, all inter company departments or teams will meet together and update each
other on the past month, current, and upcoming topics.
At Lilys, efficiency is also key. Effective distribution is a great example of Lilys desired
efficiency. Tough decisions will be made, but made respectively. If Lilys products are placed
inappropriately, and not selling, this is a strain on the brand image. Even if it means taking a loss,
this product placement will remain of utmost importance. The distribution department will meet
with the market analysis team quarterly to evaluate its distribution effectiveness. Distribution
effectiveness will be measured based on the percentage of product turn-around, or the percentage
of candy bars sold in a region out of the total number of candy bars shipped to that region.
Lilys believes that evaluating its own successes is imperative. Lilys will not simply
implement a promotional campaign and hope it works. Instead, each and every promotional
campaign is to be evaluated in terms of its success relative to resulting sales increases or
decreases. Also, because of this, campaigns will be careful not to overlap, as to blur the success of
individual efforts.
As previously stated, initial target revenue goals are $1.5 million, $3.5 million, and $15
million for the first, second, and third year, respectively. Product success will be relative to
measuring actual sales to target sales. Sales revenue reaching 33% or less of target revenue, will
be considered a failing product launch, and will lead to a product evaluation to determine whether
or not to keep the Smores bar in the product line. If sales revenue reaches only around 50% of
the target after the first year, this will be considered a significant disappointment, and will invoke
significant changes among strategies, if and where found appropriate. Sales revenue between 50%
and 75%, product reception will be considered relatively successful, and company strategy will
assume responsibility of the products failure to achieve full target revenue, and strategies will be
assessed to correct this. Revenue between 75% and 99% will be considered a success, and market
analysis will first be conducted to reveal effectiveness of distribution and pricing. Sales revenues
of 100% or more of initial revenue goals will obviously be considered a tremendous success, and
product strategy will be evaluated but not significantly changed.
Preliminary Package Designs

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Lily's Sweets Company Analysis

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Smores Bar Campaign

Lilys Smores Bar Campaign 1

Group 4 (Ben Konides, William Boyd,

Executive Summary. pp. 2

World Of Marketing. pp. 2-9

Product Decisions pp. 9-12

Distribution pp. 12-17

Pricing Decisions.. pp. 17-27

Analyzing Marketing Opportunities.. pp. 27-32

Promotion. pp. 32-38

Plan Implementation and Measurement. pp. 38-39

Product Package Designs. pp. 39-43

References.. pp. 44-47

General Company Overview: Lilys Sweets is a consumer market oriented,

Company Mission: Lilys mission is simple; to provide customers with a hearty,

Product: Lilys plans to generate enough product in pre-production to place in the

Demographics: The demographic that Lilys is targeting in their initial ad campaign

Barriers to a Larger Nationwide Market: Although Lilys is already established

Authorized Sellers for Lilys Sweets (above)

Packaging: Image of Label

**Continued On Next Page**

Lone Star Cold Storage

Nordic Cold Storage

Neptune Cold Storage LLC

Great Lakes Cold Storage

Mesa Cold Storage

Nashville Refrigerated Services Inc.

Henry Clay Wharf Cold Storage

Raw Material Cost Analysis

Raw Material Weight/CS + 1% loss Price Cost

Cocoa 9.4536 $3.41 $32.25

Stevia 2.727 $2.55 $6.96

Graham Crackers 1.818 $2.10 $3.82

Marshmallows 0.4545 $0.69 $0.31

Whole Milk Powder 0.909 $15.20 $13.82

Cocoa Butter 2.727 $0.32 $0.87

TOTAL 18.0891 $58.03

Variable Cost Component Cost (per case of 96 bars)

Raw Materials/Ingredients $58.03

Direct Labor $0.16/bar

Distribution @1.6% case price

Brokerage @5% case price after allowances

Marketing (Research) @2.75%

Variable Cost Component Cost (per case of 96 bars)

Raw Materials/Ingredients $58.03

Direct Labor $15.36

Variable Overhead $13.44

Marketing (Research) $5.28

Total Manufacturing Costs

Marketing Research Costs

Promotion and Advertising Costs

Promotion Cost (Monthly/Yearly)

Youtube Video $0.00

Billboard $1,800 / $21,600

Social Media $900 / $10,800

Total Cost $2,700 / $32,400

Seasonal promotional discounts and offers

Competitor Price/Size (in ounces) Price (per ounce)

Godiva $3.99/3.5 $1.14

Ghirardelli $3.95/3.5 $1.13

Lindt $3.99/3.5 $1.14

Green and Blacks (Organic) $7.50/3.5 $2.14

Mars Corp. (Snickers) $1.09/2.07 $0.52

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