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International Marketing

Romero Ninoska Ruiz Carlos Zurita Paola

III. Market Audit and Competitive Market Analysis

I. Introduction
Ecuadorian products are being recognized worldwide by the type of chocolate and the
combinations of flavors that are made. Berlin is an excellent market to introduce with more force the
products of Ecuadorian origin. In Germany people prefer milk chocolate, characterized by a sweet and
mild taste also dark chocolate which is considered part of this category, thanks to the antioxidant
properties attributed to cocoa. (PROCOLOMBIA). The Ecuadorian products recognized

II. The product

Our product is part of the Brand Caoni, according information provided by PROECUADOR the
suppliers try to focus on young people with fruit flavors. There is one particular product that will be
great to present in Berlin`s chocolate market with a different image. The chocolate bar is composed by
dark chocolate with Golden berry. The idea is to present this product with a different image in order to
focus it on the young people. This bar is a vivid example of Ecuadors incredible biodiversity.

A.- Evaluate the product as an innovation as it is perceived by the intended market

The chocolate bar Caoni of Golden berry will present a more colorful packaging.
The original packaging is a combination of green color with Amazonian jungle background which is a
key aspect of Ecuador. In this case we will create a packaging with a different color not so dark and a
different size like the presentation of small size of Ritter sport as an example, in order to catch the
attention of young people. The idea is to present what Ecuador made and reflect the flavors of our
country to them.

1.- Relative advantage

The advantage of this product is that Ecuadorian products had been recognized through the time
and many people in Berlin know that Ecuadorian products present great flavors. Also German people
prefer healthy products and we are using gold berries with dark chocolate in order to focus in that
2.- Compatibility
This product is compatible with the market because is a mix of fruit flavors with dark chocolate
which is the favorite of German people. It is so difficult to let the competitors reach the flavors because
gold berry is an original fruit from different countries of south America but in Germany they dont have
that product. Also we can say German people prefer products that are according to their lifestyle and
this chocolate bar tries to reach their expectative because of the healthy ingredients.

3.- Complexity
The complexity of this product is to obtain the gold berries. This fruit is a rich source of protein
and fiber. It lowers cholesterol, has anti-inflammatory properties, contains several minerals, including
potassium and phosphorus.
4.- Trialability
This fruit has been accepted in many countries that one to get its production. We need to make a
market research in Germany in order to present at first time the golden berry if this fruit is accepted the
chocolate will be successful. We consider that this product will have acceptation because its flavors are
bittersweet, similar to an apple.
5.- Observability
Talking about what consumers will observe of this product is the combination of the package and
Amazonia style. The idea is to present a new colorful package and catch the attention of the people.

B. Major problems and resistances to product acceptance based on the preceding evaluation

The problems and resistances of this chocolate bar maybe is the new bittersweet flavor, as we
know is similar of an apple but we dont have a basis that this product will actually be accepted unless
we conduct our market research.

III. The market

Germany is one of the countries with the greatest variety of products based on chocolate, not only there
is a quantity of products that are sold in premises or stores under the same presentation, we also have
the varieties of products that the restaurants make in order to sell it to the consumers.

A. Describe the market (s) in which the product is to be sold

The German market is very different from the Ecuadorian in terms of consumption, because
people do not spend as much on food and the price factor weighs heavily in this market. (Ordez) In
this case Berlin which iw the market where we will sold our product is very interesting but we have to
recognize the strenghts an oportunities. Berlin is more alternative & Arty & cosmopolitan with less
industry and more public sector (PRO ECUADOR )

1.Geographical region(s)

Berlin has an area of approximately 892 km, The city is composed of 12 districts. One quarter of
Berlin's area is covered by forests and parks and nearly a tenth of the city's area is covered by lakes,
rivers and canals. (BERLIN BUSINESS LOCATION CENTER). Berlin is the capital center of

2. Forms of transportation and communication available in that (those) region(s)
In the city people can take buses, subway (U-Bahn), and suburban train (S-Bahn) to move
everywhere safe and comfortable. In Berlin there are three tariff zones that people can choose
according to the destination they want to go to, they can buy the tickets in the BVG or in the suburban
train. People can purchase the Berlin WelcomeCard which is known as the ticket to move in the
German capital as the best options to move there. It offers unlimited use of urban and suburban public
transport in Berlin or and up to 50% discount on more than 200 outstanding tourist and cultural
attractions. (VISIT BERLIN)

3. Consumer buying habits

Germany is considered as one of the major markets for organic chocolate consumption; Historical
data show that the per capita consumption of chocolate candies and other products containing cocoa
was 11.6 kg by the year 2012.

Consumers of cacao in Germany demand mainly chocolate sweets, cookies, ice cream, among
other products covered in chocolate; As well as drinks, cakes, snacks that in their preparation contain

To purchase these products, consumers frequent retail chains, natural products stores, discount
stores, supermarkets, direct marketers, drugstore chains and local farmers' fairs. (Market Development
Plan, s.f.)
Mostly, the Germans prefer to consume milk chocolate, since it is soft and for its sweet taste;
Because in Germany they tend to take care of their health, also the dark chocolate is consumed by its
antioxidant properties attributed by the cocoa, considered healthy

According to Pro-Ecuador sources, 20% of the German market consumes pure chocolate; 34%
chocolate milk 34%, 6% white chocolate; Filled chocolates occupy 40% of the market, including nuts,
caramel, exotic flavors, chocolate mousse; With toppings of pure chocolate or milk.

Among the preferences of German consumers are:

Chocolate with hazelnuts, 20% chocolate
Milk chocolate, 20% milk
Dark chocolate, 35% chocolate
Very dark chocolate, 50% chocolate
And Chocolates with more than 70% pure

Among the varieties of chocolates offered in Germany are:

Chocolate candy
Table Chocolate
Instantamized powdered chocolate
Chocolate in tablet
Chocolate for confectionery
Chocolate syrup

Customers prefer to purchase chocolate under the following preferences:
Good taste 59.87%
Low price 19.07%
Custom and tradition 8.17%
Mark 7.92%
Other preferences 4.97%

4. Distribution of the product

To buy a chocolate bar in Germany, you can find them in pharmacies, supermarkets, small shops,
online stores; In Germany they are having a high demand of the market of the stores of discounts on
only traditional supermarkets.

In small shops you will find at least 10 and up to 50 different flavors; Their exhibits and
promotions are common.

You can also find pure chocolate for 2.5 / 100 grams price per bar. There are also shops
specializing in the sale of chocolate such as confectioneries and chains for boxed pralines, which make
their own chocolate bars

Among the preferences is the chocolate of fine flavor of a single origin at 1.92 / 100 grams or
2.95 for a sheath with 125 grams of individually wrapped mini bars. As well as the sale of Premium
chocolate bar.

32% of the chocolate is imported in bulk, plates and bars

Among the specialist shops in the city of Berlin we can find:

Fassbender & Rausch; Store that manufactures handmade chocolate since 1863, located in
the square of Gendarmentmarkt.
Leysieffer, located on Friedrichstrasse; A family chocolaterie since 1909
Ritter Sport, since 1912, located in the center of Berlin; Is a personalized craft shop
(, s.f.)

German confectioneries offer homemade chocolates to the market, others add a few special and
exclusive brands supplied by wholesalers / distributors / agents.

Table 1 Points of Sale

Type of Outlet 013
Supermarkets/Hypermarket 1
s 5521
Independent Food Stores 0117
Convenience Stores 5923
Discounters 6058
Source: Euromonitor Internacional

5. Advertising and promotion

Although in Germany the consumption of chocolate is abundant, in the last 10 years there has been
no innovation in the products

However among the means to advertise a particular product in Germany we have:

Television, which have a national or regional impact
The press, which have a national or regional impact
The mail
Means of transport

Generally discount stores use email to publicize their promotions and advertise

In Germany it is also customary to put advertisements on the facades of buildings, taxis, tram,
advertising berries

Germans tend to shop at discount stores.

In order to compete in the German market with an Ecuadorian product and gain brand positioning
within the first two years, our products will be advertised through publicity at the doors of public baths
and in shopping malls as well as On the facades of five buildings near the discount stores of the city of

To motivate people to consume our product, we will make an opening promotion by putting
miniature samples of our product together with the chocolate jars in the discount stores

To know the potential customers, it will be done through the technique of observation, so as to
know the consumption habits of people who frequent discount stores to acquire bars of tea

Our objective is not only that the customer knows our product, if not rather that he becomes
faithful to him, that he prefers to consume it over all other brands

6. Pricing strategy

In order to compete against the most established brands in Germany; A penetration strategy will be
made for common chocolate bars; However for those more exotic chocolate bars, a product
development strategy will be realized to capture the market through innovation

Among the most consumed brands of chocolate in Germany are:

Milka, is a Swiss brand, produced by Kraft Foods
Ritter Sport; Offers to the market different flavors and exotic
Kinder Schokolade, is an Italian brand but some of its products are made in Germany
Toffifee, is a chocolate filled with hazelnuts (Destination Germany, s.f.)

Among the companies that operate worldwide, they are also the main German manufacturers of
chocolates and products with chocolates, we find: Ferrero, Kraft Foods, Ludwig Schokolade, Alfred
Ritter, Stollwerk and Hosta Group.

Table 2. Chocolate positioning

Source: Canadean 2014, Euromonitor 2013

Among other products that we can catalog as substitutes for chocolate are:
Haribo, his most well-known product are the gomita bears
Werthers Original, are caramel-flavored caramels

B. Compare and contrast your product and the competition's product (s)

Caoni, Ecuadorian chocolate, has a presentation of 50g at a price of $ 2.46 in Ecuador.

The Caoni product line is:

1. Milk chocolate
Passion Fruit
Milk Chocolate
2. Black Chocolate of Origin
Los Rios 77%
Emeralds 55%
Manabi 55%
3. Chocolate Black Amazon
Golden Berry
Macadamia 80%
Passion Fruit 80%
4. White chocolate
Passion Fruit
Golden Berry
5. Professional use
White chocolate
Milk chocolate
Black Chocolate with Milk
Semi Sweet Chocolate
Bitter chocolate

Among the products offered by Coani, there are for all types of consumer preferences
Coani has bars of chococales made with grains of Ecuadorian cacao; A carefully selected cocoa
that does not require additives to improve its flavor

1. Competitor's product (s)

In Germany we find many direct competitors; Whether with artisanal or manufactured chocolates;
Common or exotic chocolate
In Germany 45% of the tons of organic chocolate marketed are sold under the packaging "Bio-
Siegel" cocoa.
The different brands that are marketed in Germany offer from low quality chocolate products to
premium chocolate bars; The former are sold in discount stores, supermarkets, while premium
chocolates are sold in specialty chocolate shops; Its price varies depending on the purity of the contents
with respect to the total weight of the bar

2. Competitor's price (s)

The prices of chocolate bars have not changed in the last six years in the German market; Being
the retailers that most sell this product; This stability is due to the fact that any increase in the price of
the chocolate bar can have significant consequences with respect to consumption. In 2012 the bar of
basic chocolate of 100g was sold at $ 0.45; However the price of premium chocolates has been

The more special the characteristics of cocoa, the greater its price

3. Competitors promotion and advertising methods

Ritter Sport: Has a wide variety of products and it has different advertisements for each one of
them targeting different kinds of consumer. It uses its bright colors as the theme of its television ads
and banners. They have special products for different holidays and they have a web page translated to
most languages.

Ferrero: Is one of the chocolate companies that spends the most in advertisements. Their ads give
the impression of a high quality gift for special occasions. They use glamorous advertisement in
company with their Share The magic slogan to be more a product bought to give to other people
rather than to consume it yourself.

Milka: The Company uses the color purple in all its marketing to make people associate the color
with the brand. They use the image of the purple alpine cow to show quality and tenderness. They use
mainly a differentiation strategy. They position themselves by making their ads feel young and innocent
son that customers feel as part of the brand. They always show nature and the mountains. The company
organizes events like the The most tender day of the Year

4. Competitors distribution channels

Ferrero: As they are a high value product they are not in every store. It sells to retailer in
Ritter Sport: They sell mainly to retailers worldwide and not all flavors and products are sold in
the same stores.


C. Marketsize

There are approximately 80 million people who eat chocolate in Germany becoming Europes
largest chocolate market and the second highest chocolate consumption per capita.

1. Estimated industry sales for the planning year

As of 2015 sales were worth 7, 3 billion euros with growths between 1, 5% to 3%.

2. Estimated sales for your company for the planning year

Sales are projected to be of 3% of the market share and growing at the same rate as the industry.

D. Governmentparticipationinthemarketplace
The government has an important role in Germanys economy.

GTAI (Germany Trade and Invest)

FITA (Federation of International Trade Associations)


IV. Executive summary

Most of the best chocolate in the world is made with Ecuadors Cacao. Because of this Ecuador
has an opportunity to make high quality chocolate and sell it overseas. The Caoni is already a well-
known brand and some adaptations would make in ideal to target young people in Germany. The
product itself is perceived as a luxurious brand which is perfect for Germany as people there value then
greatly, the product will reflect nature and health as German culture is one of eating healthy therefore
regulations regarding food are strict.

As an advantage the product would be something new that they have never seen before and the
flavor would be unique. With the same quality as German chocolate but with a completely original
flavor. Because of or climate we could more easily obtain certain fruit that are less common or cant be
found in Germany. One of this is the Gold Berry which has lots of health benefits for its consumption.

The product would of course would need a unique and stylish package in order to attract attention of
Germans. A possible problem could be the level of acceptance of the new flavor. A prior research is
needed with some trials to German people and ask them about the flavor.

The German market is very different form the Ecuadorian. Chocolate eating habits are a lot higher
and the willingness to pay for more expensive products is bigger. They are also willing to buy almost
anything that has chocolate in it. For getting a specific product they want they are not bothered by
having to go to special places in order to get them.

The most bought types of chocolate are: Pure chocolate, Milk Chocolate and Filled Chocolate.
They think higher of the chocolate that has more pure chocolate in it. Their prices vary from 1 to 3.
Despite the size of the market there hasnt been any big innovations in the past 10 years even from
companies which strategy is innovation.

For our product to have an impact an aggressive marketing campaign is needed. With lots of
publicity and discounts introducing the product and motivating customers to try it. We will adopt a
marketing development strategy as it is an existing product in a new market. The prices from the New
York stock market will be used as reference to negotiate with the importers and distributors.

Our main competitors are Milka, Ritter and Ferrero which are very powerful and worldwide
known brands. Their prices are high as they are more luxurious than the average chocolate and their
packaging are colorful and have the company colors and features shown in some way.

Regarding the Competitions advertisements methods. A high amount of investment is needed to

be at the same level as the competition as they are powerful brands that are well known globally. The
main competitors mainly sells to retailers and fight even over shelf space of stores. Their place is
usually supermarkets and shopping malls, they rarely sell to small stores.

The Market size for Chocolate in Germany is huge. Second in Europe only to Switzerland. With
about 80 million customers its no wonder how hard companies compete for a fraction of market share.
The Industry itself doesnt grow that much but the price of chocolates does increase which shows in the
increasing income of the industry.

Germany does have strict laws regarding the products that enter the country. There are several
standards that products need to have in order to enter Germany. The product may need to be changed or
adapted to suit its laws. There exist several agencies that help companies that want to export their
products to Germany. PRO Ecuador does have a very useful analysis of the German Chocolate market
done in 2013. In it says that rivalry is high and some requirements that are common there are not in
Ecuador but there are some segments that could be exploited of done correctly.

Regulations in Germany are strict and any product wanting to enter must pass through all their
regulations and standards. There are several agencies that could help the company to make sure that all
the laws are being followed.

V. Sources of information
Bhasin, H. (14 de 12 de 2016). Marketing_91. Obtenido de
Hoffman, R. D. (14 de 12 de 2016). University of Copenhagen. Obtenido de
Kid, M. A. (14 de 12 de 2016). PRO Ecuador. Obtenido de
Leguay, Z. (14 de 12 de 2016). Prezi. Obtenido de
S., S. (14 de 12 de 2016). Prezi. Obtenido de