1 INTBUS 301

Laborde-Balen Salom 1393029

Bennetts of Mangawhai Ltd

Part one: Firm Analysis

2 Table of Contents :

Report cover sheet..................................................................................................................... .........p1 Table of Contents................................................................................................................ ................p2 Executive summary............................................................................................................... ..............p3 What is Bennetts of Mangawhai Ltd ?............................................................................................p4-5 SWOT Analysis of Bennetts of Mangawhai Ltd................................................................................p6 Suggestions for Bennetts of Mangawhai Ltd based on the SWOT Analysis.....................................p7 Five Forces Analysis of Bennetts of Mangawhai...............................................................................p8 Results of the five forces analysis.................................................................................................p9-10 Conclusion ........................................................................................................................ ...........p11

3 Appendix one: List of Bennetts of Mangawhai retailers........................................................p12,13,14 Appendix two: List of websites that proposed to buy online Bennetts of Mangawhai's products...p15 Reference list ........................................................................................................................ .......p16

Executive summary Bennetts of Mangawhai Ltd produces more than 150 varieties of chocolates with the European know how learned by the company's founders : Mary and Clayton Bennett. (Bennett, 2011) An introduction will provide a deeper understanding of Bennetts of Mangawhai Ltd. Next, a SWOT analysis and five forces analysis of the company will be proposed. Overall, this report will show the international options and opportunities that the New Zealand company has.

What is Bennetts of Mangawhai Ltd ?

5 Bennetts of Mangawhai is a New Zealand premium handmade chocolates company that started in 1998. The main purpose of the company is to produce the highest quality chocolate to satisfy the palates of gourmets. (Bennett, 2011) Its founders : Mary and Clayton Bennett, trained in Europe before settling in Mangawhai. Today, they are working with a French patissier and produce over 150 innovative chocolates.

The company use their traning and fresh quality ingredients to create delicious chocolates. The company adapts itself to potential customers and proposes chocolates without preservatives nor palm oil and {that}are totally GM free and gluten free(Auckland Aiport, 2010).

Bennets of Mangawhai Ltd offers its products in its Bennetts Caf located alongside the Chocolaterie. The company attracts customers to their Caf by offering chocolates that are solely sold in the Bennetts Caf (Bennett, 2011)

The Caf also opens its courtyard to host weddings and other celebrations of up to 90 people (Bennett, 2011).

Customers can purshase chocolates from more that 40 retailers all around New Zealand (Appendix one)(Bennett, 2011). Domestic and International customers can also find online shops that offer Bennetts of Mangawhai's chocolates (Appendix two). Bennetts of Mangawhai's website has an online shop that facilitates international and domestic purchases by accepting orders via mastercard or visa card. (Bennett,

6 2011)

The company also offers its products at Auckland International Airport which can be bought from the Kiwi Discovery Duty Free Shop by tavellers in transit in New Zealand (Auckland Aiport, 2010)

SWOT Analysis of Bennetts of Mangawhai Ltd.

This report includes a SWOT analysis as it is a strategic tool that takes internal and external factors into consideration. Strenghts, Weaknesses, Opportunities and Threats of Bennetts of Mangawhai Ltd are presented as a table below.

Strenghts:

Weaknesses

- The enterprise has been globally recognised for - Situated in a remote location. its chocolates by receiving the prestigious 2010 Great Taste Gold Awards in London (NZ Herald, - Their products are less widely available than 2010) competitors - Broad range of retailers - Multiple online retailers - Unique process of manufacturing their chocolates (European know how) - Hand crafted chocolates (not mass produced) - Offers chocolates suited to specific dietery needs. (eg : Gluten, palm oil, etc) Opportunities : - Due to the nature of its key ingredients (eg : coco, milk, spices) the market price of producing chocolates fluctuate. - Hand crafted chocolates are considered as luxury therefore their profit will vary over months as it will be a treat that customers will do without in periods of economic hardship. Threats : - Other chocolatiers in the New Zealand market. Eg : J.H. Whittaker & Sons, Ltd (Whittaker's, 2011) - Other chocolatiers in the world : Nestl, Cadbury... - Imitation of products by other companies - Expansion of product range to include hot chocolate, ice chocolate, yogurts and more chocolate flavours - Joint Venture with already well established - A wide variety of other treats are readily available. eg : Yogurts, lollies, etc

- Export overseas (Direct export)

- Opening Bennetts of Mangawhai Cafs elsewhere in New Zealand or overseas. (Green field)

8 overseas distributors (eg : a chocolate chain such as Nestl) - Form an alliance with small chocolatiers around the world - Franchising their brand overseas

Suggestions for Bennetts of Mangawhai Ltd based on the SWOT Analysis The SWOT analysis shows that the location of the business is a weackness. Indeed, Mangawhai is hard to access as it is far away from airports and ports therefore the transport of products are more expensive than if the business was based in Auckland or another trading center. This weakness will become a larger problem as soon as the business tries do operate overseas. Whatever strategy it chooses to operate internationally, Bennetts of Mangawhai Ltd will have to pay the cost of transport to and from its remote location. This cost has a direct effect on the price of the products which could be easily removed by relocating the production into a more strategic location. Bennetts would have to move its production if it wanted to reduce its price and to be able to export.

The company's second weakness is how hard is it to buy their chocolates. Despite the possibility to buy online or to go to one of the multiple retailers in New Zealand, domestic customers need to go out of their way to get Bennetts' chocolate. Finding more retailers across New Zealand is fundamental for Bennets' in order to have as much chance as any other chocolate firm to be bought. Bennetts of Mangawhai Ltd could for instance take the opportunity illuminated by the SWOT analysis to form an alliance with other SME chocolatiers. It is a possibility that Bennetts could have a closer look at it in the near future. The price of foodstock can easily fluctuate enough to affect the chocolate company. However, this is a weakness that all of the chocolate companies share. It is possible to limit the effects of this fluctuation yet is neither fully controllable nor predictable.

Compared to the majority of chocolatiers, Bennetts of Mangawhai's chocolates are handcrafted which is a strength yet can become a weakness in hard economic periods such as the recession of late 2008. During times like those , customers reconsider what are their vital products and will certainly reduce their consummation of luxury products such as Bennetts of Mangawhai's chocolates. Exporting could be a good opportunity for the firm to avoid the fluctuation of the New Zealand economy by selling overseas. Then, profit does not

9 only depend on one state economy yet many.

Five Forces Analysis of Bennetts of Mangawhai

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Threat of substitute products Bargaining power of Buyers Bargaining power of suppliers Threat of new entrants

Medium Medium-Low High Medium-Low

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Results of the five forces analysis. The five forces analysis show that Bennetts of Mangawhai is in a very competitive market. Bennetts of Mangawhai Ltd has many competitors. The chocolate industry is dominated by giant chocolate manufacturers such as Kraft Foods Inc (USA), Mars Inc (USA) and Nestl SA (Switzerland). Those firms propose very competitive prices and are available in every New Zealand supermarket and dairy. Even if they do not propose the same level of chocolate that Bennetts' does they remain direct competitors as their products can easily substitute Bennetts' chocolates.

However, Bennetts of Mangawhai Ltd, as a luxury manufacturer, targets customers with a medium to high income. Bennetts of Mangawhai proposes unique chocolate flavours made in the same way as famous belgium chocolate. Therefore the company proposes different products from the usual that gives customers a value that cannot be found in all chocolate products.

In the luxury industry buyers have less power than in other markets. Indeed, as explained earlier, Bennetts of Mangawhai Ltd's products target people from a medium to high income bracket. The price of Bennetts' chocolate is not as elastic as the price of chocolate sold in supermarkets is. If it continues manufacturing in the luxury chocolate market the firm will have to match the price of other luxury chocolate industries such as Chocolat Mathez who specialises in truffles (Mathez, 2011).

Suppliers on the other hand have a high power over Bennetts of Mangawhai Ltd. Indeed, the company transforms raw material bought from suppliers to make their chocolates. Bennetts does not own any cocoa production or dairy farms, therefore the company profit depends on the prices proposed by its suppliers. An example is the 10% increase of cocoa's price after the Ivory Coast election at the end of December 2010 (Hawkes, 2010). The graph below shows and comment the cocoa fluctuations over 2006-2010.

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(Wave international, 2011)

The firm has found a niche market : the luxury chocolate industry in New Zealand. The threat of potential entrants is quite low in the New Zealand environment. First of all because of the location of New Zealand. New Zealand weather does not allow the cultivation of cocoa. Moreover, as we have heard recently in the news the price of raw material remains expensive even after the drop of the American Dollar. Making luxury chocolate in New Zealand is not very common simply because the environment does not pertain to it.

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Conclusion : This report has introduced the chocolate organisation Bennetts of Mangawhai Ltd. It shows Bennetts' multiple and already implemented strategies to sell overseas. Bennetts' Caf proposes to host celebrations such as weddings and barmitsvah. Bennetts' website accepts visa and mastercard and orders from all over the world. Some online shopping websites also propose Bennetts of Mangawhai's products and accepts orders internationally. A SWOT analysis revealed international opportunities that might be seized by the business. Direct exports Licensing Franchising Greenfield Joint Venture Strategic alliance A further discussion of the SWOT analysis also divulged possible solutions to the business' weaknesses. The five forces model analysis showed that the main force that has a high chance to affect Bennetts of Mangawhai Ltd is the power of suppliers. Indeed, the production of chocolat require products such as cocoa and milk that often fluctuate. Only twelve years after its creation, Bennetts of Mangawhai became globally recognised with the prestigious : Great Taste Gold Awards that the firm received in London. At the moment the company only sells its products overseas via online shops. Yet it is just a matter of time before it choose its foreign market entry mode(s).

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Appendix one: List of Bennetts of Mangawhai retailers (Bennett, 2011)

Arrowtown
Remarkable Sweet Shop 27 Buckingham Street Eves Pantry 155 Lincoln Road, Henderson Farro Fresh Constellation Drive 70 Parkway Drive, Mairangi Bay Farro Fresh Food 80 Lunn Ave, Mt Wellington Flowers of St Johns 571 Remuera Road, Remuera Flowers on the Hilltop 4148 Great North Rd, Glendene I E Produce 1 Barrys Point Road, Takapuna Kiwi Discovery Duty Free Shop International Terminal, Auckland International Airport Mairangi Bay Fine Wines 358A Beach Road, Mairangi Bay Temptations 22 King Street, Pukekohe

Auckland

Abigails 43 Victoria Road, Devonport Auckland Flowers & Gifts 8/761 Great South Road, Penrose Bays Flowers 25 Anzac Rd, Browns Bay Best Blooms 10 Katherine Mall, Henderson Bhana Bros 129 Ponsonby Road, Ponsonby Buds & Bows 1a/151 Stoddard Rd, Mt Roskill Chocolate Boutique 3/27 Mokoia Road, Birkenhead Chocolate Boutique 1/323 Parnell Rd, Parnell Chocolate Heaven 7 Hurstmere Road, Takapuna Country Elegance 308 Coatesville Highway, Riverhead Country Style 26 Queen Street, Pukekohe Didas 54 Jervois Road, Herne Bay Didas Victoria Park 118 Wellesley St West, Auckland CBD East West Organics 7/273 West Coast Road, Glen Eden Enchanted Rose Floral Design 40 Jervois Road, Ponsonby Eves Pantry 309 Botany Road, Botany Downs Eves Pantry 3 Taharoto Road, Takapuna Eves Pantry 399 Manukau Road, Epsom Eves Pantry 626 New North Road, Morningside

The Barrow Shop 28-30G Westfield Downtown, Auckland CBD

The Chocolate Bunny Shop 21, Ferry Building, Devonport Wharf

The Essential Deli 455b Mt Eden Road, Mt Eden

The Wild Bunch 419 Remuera Road, Remuera

illar & Co 419 Tamaki Drive, St Heliers

Titirangi Gecko 2 Rangiwai Road, Titirangi

My Goodness Baskets Ltd Unit 1, 20 Constellation Drive, Albany

Trumps Homeware and Gifts Airlie Court, 320 Remuera Road, Remuera

Nikau New Zealand Shop 4, 404 Beach Road, Mairangi Bay

Waiheke Fruit & Veg 110 Ocean View Road, Waiheke Island

Paradise Flowers 179 Manukau Road, Epsom

Waiheke Wines Centre 153 0cean View Road, Waiheke Island

PPS Gifts & Homeware 12 O'Connell Street, Auckland CBD

Whitcoulls Book Store Domestic Terminal, Auckland Airport

Ripe Deli 172-174 Richmond Road, Grey Lynn

Whitcoulls Book Store International Terminal, Auckland International Airport

Simply Flowers Westgate Shopping Centre, Fernhill Drive, Massey

Wild Poppies Auckland Level 1, 3 College Hill, Ponsonby

Smith & Caughey

Zarbo Delicatessen and Cafe 24 Morrow Sreet, Newmarket

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Eves Pantry Cnr Elliot Street & Darby Lane, Auckland CBD Eves Pantry Shop S108, Sylvia Park Shopping Complex, Mt Wellington Eves Pantry Shop 103, Westfield Albany Shopping Centre, Albany

Blenheim
Queen Street, Auckland CBD The Chocolate Shoppe Centre Point Mall Spinz 133 Milford Shopping Centre,

Christchurch
Bouquets Balloons & Baskets 51 New Brighton Mall

MilfordTea Lovers Ltd Auckland 12E Amera Place, Botany Downs

Cambridge

Sherwood Florist & Gifts 57 Victoria St

Urge Ltd 359 Victoria Street

The Good Food Trading Company 35 McDonald Street

Dream Cones Kiosk 1, Merrivale Mall, 189 Papanui Road, Merivale

Hastings
Sileni Estates Ltd 2016 Maraekakako Rd Lodge

Napier
Bellatino's 9 Napier Road, Havelock

Ground Ltd 44a London St, Lyttleton

Havelock North
Adamo 8 Joll Road NorthChantal Foods 45 Hastings Street

J Ballantyne & Co. 130 Cashel St

Kaiwaka
Humbugs 123 Hastings Street, Taradale Kaiwaka Cheese Shop State Highway 1

Kitchen Kapers The Arcade, 174 Burnett Street, Ashburton

Nelson
Bluebell Florist 245 Queen Street, Richmond

Dannevirke
Just Gifts & Souvenirs 150 High St

Lower Hutt
Moore Wilson Eastern Hutt Road

Dunedin
Amaryllis for Flowers 74B St Andrews Street

Mangawhai
Bennetts Chocolates 52 Moir Street

Delicious Aranui Rd, Mapua Wharf

New Plymouth
Jasmine Florist 562 Devon Street East, Fitzroy

Massey
Fresh World State Highway 16

Chocolat NZ Ltd Shop 20 Centre City Mall

Masterton
Everyday Gourmet 466 George Street Esau's Florist 6 Lincoln Rd

Shaw Foods t/a Fresha Cnr Devon & Morley Streets

Oamaru
Granny Allan's Pantry 47 Thames Street

Joseph Jones Floral Design 446 George Street

Fielding
Striped Marlin 77 Manchester Street

Heaven Scent Florist 434 Queen St, Kuripuni

Orewa
Gecko Unique Gifts Moana Court

Moore Wilson Dixon Street

Gisborne
Lix 186 Gladstone Road

Matakana
Ascension Wine Estate 480 Matakana Road

Orewa Care Chemisty 312 Hibiscus Coast Highway

Paekakariki
Beach Road Deli

Hamilton

Motueka

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Le Gastronome 51a Riverlea Road

Motueka Flower Studio 131 High Street

145 Wellington Road

Mt Maunganui
Out of the Woods 546 River Road Bayfair Florist Shop 102 Bayfair Shopping Centre, Cnr Girven & Maungauni Road

Palmerston North
Munchkins 61 Broadway AveSomething Different 117 Victoria Avenue

Porirua
Moore Wilson 65 Kenepuru Road

Thames
The Garden House 512 Pollen Street

Westport
Heritage Giftworld 176 Palmerston Street

Waipu

Queenstown
Remarkable Sweet Shop 39 Beach Street Wine Tastes 14 Beach Road Waipu Off Licence 15 The Centre

Whakatane
The Good Life 196 The Strand

Wanganui
Ambrosia Delicatessen Co 63a Ridgway Street

Whangaparaoa
Gusto Gourmet 667 Whangaparaoa Road

Raglan
Kanuka 1 Wainui Road

Rangiora
The Gingerbread House 1a Good Street

Eileen's Floral Studio Unit G, 69 Taupo Quay

Whangarei
Gifts On Rathbone 10 Rathbone Street

Rotorua
Capers Epicurean 1181 Eruera Street Okere Falls Store 759 State Highway 33, Okere Falls

Flower Room 63 Victoria Avenue

Thistle Sweet Shop 136 Victoria Ave

Intec Interiors 67 Cameron Street

Warkworth
Taste 2-4 Neville Street

NZ Fudge Farm Shop 3, Town Basin

Taupo
Replete 45 Heuheu Street

Wellington
Best of the Bunch 45 Pipitea St, Thordon

Onerahi Books & Lotto 124 Onerahi Road

The Linen Room 9 Marama Arcade

Parua Bay Liquor Shop 1, Parua Bay Village, Whangarei Heads Road

The Merchant of Taupo 114 Spa Road

owers Rediscovered 289 Tinakori Road, Thorndon

WHITIANGA

Tauranga
Bouquet Flowers 7 Piccadily Arcade

Kirkcaldie & Stains Cuisine Centre, Lambton Quay

Grapefruit Gully 13 Monk Street

Montage 32-36 Rimu Street, Eastbourne Cabbages & Kings 21G Goddards Centre, Devonport Road Moore Wilson Cnr Tory & College Streets Eves Pantry 610 Cameron Street Whitcoulls Book Store Domestic Terminal, Wellington Airport Mainly Gifts

Monk Street Market 1 Monk Street

Wellsford

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Hobbs 163 Rodney Street Shop 5, Cherrywood Court Sweet Boutique 1344 Cameron Road, Greerton

Appendix two: List of websites that proposed to buy online Bennetts of Mangawhai's products.

This list does not include all of the websites. The purpose of this list is to show that domestic or international customers have the possibility to buy Bennetts of Mangawhai's products online. Sell to international destinations Benetts of Mangawhai http://www.bennettsofmangawhai.com/ Chocolat Boutique
http://www.chocolateboutique.co.nz/

My Goodness, express and impress. Only deliver to NZ and the UK. http://www.mygoodness.co.nz/ Chocolat post http://www.chocolatepost.co.nz/

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Reference list : Auckland Airport. (2010). Bennetts of Mangawhai. Retrieved from : http://www.aucklandairport.co.nz/ShopDineAndRelax/InternationalTerminal/ShopsAndServices/At oZShopsAndServices/Bennetts-of-Mangawhai.aspx Bennett, C & Bennett, M. (2011). Bennetts of Mangawhai Ltd. Retrieved from : http://www.bennettsofmangawhai.com/ Hawkes, A. (22 of December 2010). Cocoa prices rise after Ivory Coast election turmoil. Guardian. Retrieved from : http://www.guardian.co.uk/world/2010/dec/22/cocoa-prices-rise-ivory-coast Isaac, N. (19 of January 2011). Cocoa Prices & Politics: Does Rising Conflict Cause Rising Prices? In Elliott Wave. Retrieved from : http://www.elliottwave.com/freeupdates/archives/2011/01/19/Cocoa-Prices--Politics-Does-RisingConflict-Cause-Rising-Prices-.aspx Mathez. (2011). Chocolatier depuis 1934. Retrieved from : http://www.mathez.fr/ New Zealand Herald. (29 of July 2011). The Dish: Top chocs. Retrieved from : http://www.nzherald.co.nz/lifestyle/news/article.cfm?c_id=6&objectid=10661845 Whittaker. (2011). WHITTAKERS. Retrieved from : http://www.whittakers.co.nz/