1. Company overview of Aphrodite Chocolates
Introduction
The international market expansion has been considered by many companies as one of the successful strategies that have led a business to secure a better ground in terms of the competition, where it may be thus said that the business usually flourishes when there is a deeper expansion. It may be difficult for a company to have a foreign market expansion, it still may be said that the market penetration may be gained by the company to a greater extent. International markets have been explored by many of the companies that add value to the image of the organization in terms of the operation. It is because of the different strategies that generate wide revenue for the firms, most of which have been explored in this report.
Overview of Aphrodite Chocolates
The industry of chocolate good manufacturing becomes a great source of revenue sourcing if the company finds the right kind of suppliers form outsourcing, where the report considers the value and importance for the different foreign market expansion into France for the chocolates company of Aphrodite Chocolates, the United Kingdom (UK) based company. The company sells different colored and texture chocolates, where the coffee cream chocolates, Walnut chocolate syrup, milk chocolate and more such products have been a specialization for the company (Chocolates, 2022).
2. Analysis of important factors
Political Factor
Political factors play a pivotal role in the macro business environment and it is one of the important factors which provide support to a company to expand the business as well as launch a new product in the market. The UK based chocolate company, Aphrodite Chocolates expands its business in France and the political situation of the France government is the stable and political stability of the country helps the company to seek the attention of the foreign investors. France is a democratic country and the political government influences the business environment as the unstable condition of the government affects the marketing strategies of the business. On the other hand, in the initial days after Brexit, the UK and France both face some issues related to foreign policies and in later periods the countries overcome the issues which support a business to maintain its growth. In the year 2019, the UK has exported approximately $29. 1 Billion and the increased rate of export is of almost 1.07% and this numerical data proves that the UK has a strong trade relationship with France (OEC, 2022). In 2020, after the Covid-19 pandemic, the export rate has decreased as the pandemic badly affects the business in the world initially, however, the chocolate company may launch its business now. The computer general equilibrium model helps the company to enhance the trade corporation agreement which supports the country to ease the way of export with France (Fusacchia, 2022).
Figure 1: The export of goods of the UK to France
(Fusacchia, 2022)
Economical Factor
Economical factors are also an integral part of the macro business environment and it effectively influences a company in the case of expanding a business as well as launching a product in a competitive market. The Gross Domestic Product (GDP) rate of France is high and the gradual rise in GDP indicates the country is moving forward and the economic condition is good for that country. Along with that, the high GDP rate provides the opportunity to the consumer in terms of buying capability and Aphrodite Chocolates may start a new business due to favourable economic conditions in France. The macroeconomic outcomes of the pandemic are not good for the business in the initial days in terms of GDP, unemployment according to the data of Covid-19 Mobility report and it obstructs the path of new business, however, the countries now overcome those issues gradually (Fernández-Villaverde, 2020).
Figure 2: the GDP rate of France
(Fernández-Villaverde, 2020)
Another economical factor is the inflation of a country and the low inflation of France extremely helps the company as the low inflation rate decreases the uncertainty in an economy as well as provides economic stability. Along with that, due to the pandemic, the inflation rate of France is 0.476 % and it provides the opportunity for Aphrodite Chocolate to launch a product among the competitive market of France (Refer to Appendix 1).
Technological Factor
France is a technologically advanced country and the tech-savvy people of the country help the company to enhance the scope of overall profit of the country as the consumers are more dependent on digital technology. France is the country where the advantage of Wireless Fidelity (Wifi) is available and the chocolate company of the UK has the opportunity to boost the e-commerce strategy with the support of the internet. The country also ensures the company in case of data analytics as the data analytics process in the country is updated and the big data analytics provide support to the company to implement effective marketing strategies based on the data. Additionally, the effective use of social media offers the chocolate company in France to retain the growth of the business through continuous promotion of the product of the company. Social media marketing activities fuel the e-commerce activities through informativeness, personalisation, trendiness and many more which influences the customer loyalty that helps to expand the business in a new country (Yadav, 2018)
Customers
Customer is an important part of the microenvironment of a business and Aphrodite Chocolate c has to segment, target the desirable consumer base to sell the product as it helps to run the new business successfully. The chocolate company based in the UK targets children as the main base of consumers for the company and it covers the age group of 0- 15 years age group of children. Furthermore, the intake of chocolate or consumption of soft drinks, chocolates are associated positively with body fat and the positive support of the consumption of chocolate contributes during the childhood and adolescence period (Costa, 2018).
Figure 3: The graph on the consumption of the chocolate
(Costa, 2018)
On the other hand, the company may target the consumer which includes the age group consisting of 15-22 age nonprofessional adults who helps Aphrodite Chocolate to add another group of consumers (Refers to Appendix 5). The growing population of the country provides the option for the chocolate company to increase the consumer base of the company and it boosts the confidence of the company to expand the business in France.
Suppliers
The important ingredients of the chocolate is the double or whipping cream, chocolate for dark, milk or white based on the truffle, milk and more and the company has to depend on the suppliers for those ingredients (Appendix 6). The suppliers of the cream are Seafrigo, Elvir, Amrino, Lactalis Exp. Americas, Laboratoires Goemar Sas and many more reputed companies and this supplier help the company to produce the desired quality of the product. The suppliers of the milk are India, the USA, China, Pakistan and Brazil and the good relationship of France with these countries increase the support for the ingredients of the product.
Competitors
Competition plays an integral role in the microenvironment as the competition may help the company to launch the product according to the demand of the consumer and maintain the quality of the product to take competitive advantages in the market. The rival companies of Aphrodite Chocolate are Jean-Paul Hévin, Jacques Génin, Henri Le Roux, Pierre Marcolini, La Maison du Chocolat and many more which may pose a serious threat in terms of rivalry. The reputed chocolate companies of France may give a tight competition to the UK based chocolate company and it may create pressure that may obstruct the path of the business. The company may implement various strategies such as offering gift boxes based on special occasions, and effective delivery service helps the company to take a competitive advantage in the market. The company also offers corporate gifts which especially help them to enhance the brand image as well as attract new consumers for the innovative gift items and supports the company on expansion of the business among competitive markets.
3. SWOT Analysis
| Strength | 1. The innovative packaging process of the product attracts the consumer as well as enhance the brand image
2. The effective feedback process, as well as the marketing strategy, enhance the consumer base of the company |
| Weakness | 1. The lack of funds due to the Small Medium Enterprise (SME) set up becomes the weakness for the company as the cost of operating a new business is expensive in France
2. The company may face a lack of manpower which is essentially needed in business expansion in a new country |
| Opportunity | 1. The good relationship with different countries with France enhances the scope of business for Aphrodite Chocolate
2. The high GDP rate, as well as low inflation rate, create economic opportunities for the company to expand the business |
| Threat | 1. Competitors in France such as Jacques Génin, Henri Le Roux, Pierre Marcolini, La Maison du Chocolat and many more is a real threat for the UK based company
2. The company is an SME company and the company faces a real threat as the company has to compete with globally reputed chocolate companies |
Table 1: SWOT Analysis
(Source: Self-created)
Aphrodite Chocolate is a reputed company which wants to expand the business in France and the overview of the company and the analysis of the factors related to micro and macro environment helps to assess the strength, weakness, opportunities and threats of the company. The innovative packaging, especially corporate gift boxes and the effective feedback process provides strength to the company; however, shortage of manpower, funds may obstruct the path of business. Furthermore, the political and economical advantages of France plays as strength to the company and the globally reputed chocolate company in the market of France may create a threat to the company as the company is an SME. The SWOT analysis provides competitive advantages to the Micro Small Medium Enterprise (MSME) which also helps to manage financial condition and manpower as well (JATMIKO, 2021).
4. Market entry strategy
Outsourcing strategy
The company of Aphrodite Chocolates may find it most useful to let the international market expansion be controlled and managed by foreign clients, where the company may not have a clear idea about the culture and chocolate consumption habits in France. In recent times, the strategy of outsourcing a business has become a great method for the further expansion and progress, where the rate of the output maximization finds immense use in outsourcing (Kavosi, 2018). Thus it may be appropriately said that Aphrodite Chocolates has the scope of increasing the adaptability to external risk by outsourcing strategy.
Countertrade strategy
The wise strategy to build up the model of the international payment system to be flourished in different foreign nations may be cited as the countertrade strategy, where the strategy usually is quite helpful in the case of foreign market domination. Aphrodite Chocolates may specialize in the nation of France by countertrade strategy where the settling of the different methods of payment in terms of the national currency becomes more convenient, and countertrade turns that payment method to a suitable way of earning revenue. Aphrodite Chocolates needs to adopt the exchange of different expertise on creating chocolates and let the manpower of the company in exchange of the sophisticated machinery and the specific business model that France based chocolate companies may directly help Aphrodite Chocolates.
Licensing strategy
Different nations consider the licensing strategy to be taken in an exact way of operation for foreign expansion, where the inside competition for different companies becomes easy in case the licensing strategy is adopted. The condition of the different supply usually implies the licensing strategy that may be undertaken, where the licensing as a strategy becomes ideal for operating in a close competition (Yang, 2019). Aphrodite Chocolates may consider brand licensing as one of the most suitable ways of making a strong finance where the making licensing policies may insure the company against several risks.
Franchising strategy
France has a different consumption habit than the UK, and it will be quite appropriate to say that the company in France may find it quite difficult to allow the flexibility to be achieved at a faster rate. Franchising benefit of letting the firm usually identify with the sources of the leakage of revenue and focus more on the different ways of global sustainability boosts the overall business activity (Kim, 2020). Although being one of the most successful market ventures may be a difficult task for a company such as Aphrodite Chocolates in France, franchising may help the company to operate the entire business under a successful chocolate company in France.
Merger and Acquisition strategy
Merger and Acquisition (M&A) for Aphrodite Chocolates may be directly stated as the strategy that is most useful for the company to maintain a particular source of revenue structure. Aphrodite Chocolates may purchase the outlet of a small chocolate firm in France, thus in taking most of the employees of France based small chocolate enterprises. The intensive growth of a company is mostly based on the successful follow up of the M&A strategy, where the firm may be ensured of a sustained increment in a foreign land by having M&A strategy followed closely (Lin, 2018).
5. Marketing mix adaptation and standardization
Product
The intervention of the third party as an external partner to maintain the integrity of the company becomes a major source of helping with the internal sources of cost for the company by considering the types of the product that the organization usually sells. Aphrodite Chocolates usually sells the different kinds of chocolates that are more curates in terms of the development of the style and taste, where the company sales are usually handmade chocolate products (Chocolates, 2022). The product specialization for the company to increase the foreign market expansion, where the introduction of different varieties in the chocolates, especially after understanding the taste of French consumers in chocolate builds a better system for Aphrodite Chocolates. France loves chocolate consumption more than most other nations, and has a greater potential for market penetration for the chocolate manufacturing companies establishing in France, especially the dark chocolates market (Baptista, 2021). For the products to be well settled in the French market, Aphrodite Chocolates may news to understand the different barriers that usually le in the product development of chocolate, such as the usage of the non-toxic preservatives and the different chemicals that may be impeded by the law of French food regulations. Chocolate firms are much heavier in count in the overall region of France, and the different regulations usually come before Aphrodite Chocolates may enter French chocolate industry, thus focusing on the color and styles that are nutritional.
Figure 4: France chocolate consumption
(Baptista, 2021)
Price
French chocolates have been below the global range of price for chocolates, and the sustained demand for the different kinds of chocolates have made French chocolate consumers get a lower price bargaining. Aphrodite Chocolates needs to understand the chocolate manufacturing to be managed at the high level of cost where it may be said that the higher sales of €3.4 billion may boost Aphrodite Chocolates to a large extent (Refer to Appendix 4). Many of the local sellers in France usually do not allow the price to be inflated by an outsider from, and thus the price of Aphrodite Chocolates to be more consolidated in France may be boosted by lower price margin.
Place
France has been one of the countries that usually have the old history woven around the different kinds of chocolates that the companies hold to produce, and the history of France having the chocolates manufactured is an important national characteristic to be followed. France has the distinct style of integrating art with the different chocolates manufactured, and the companies based in France usually concede the innovative ways of making chocolate a staple product to be marketed internationally. The company of Aphrodite Chocolates to have insight of the revenue being operated in the French chocolate industry needs to take in account the industrial mechanism of the chocolates. The cultural and the political dilemmas of France have not shaped the chocolate industry to create worldwide inflated revenue, rather the diffused interest and the wellness of the local chocolate manufacturers shapes the French chocolate industry. Aphrodite Chocolates usually may consider the impact of the French sentiment with the chocolates that are being manufactured.
Partners
The spirit of collaboration matters to a lot of extent in terms of the establishment in the French industry, where it may be said that the French industry makes an imperative ground for the style of collaboration for extending the business. There are different firms that collaborate with each other to have the competitive advantage, where it may be said that in France the chocolate industry is more specialized if it is compared to the UK chocolate market. The understanding of the French chocolate market is difficult, where there are different elements that matter before a firm may establish an independent business in France, and as for Aphrodite Chocolates the collaboration may prove effective to tap on the segment of the native consumers.
Promotion
The elements of promotion of the chocolate based firms matter to a great extent, where it may be said that Aphrodite Chocolates needs to consider the unique promotional technique such as creating a separate shelf only for the display of different handmade chocolates in unique shapes in the French roads. The example may be taken of several French chocolate companies, such as the company of Valrhona in France has made a resolution to promote itself, where different unique strategies have been taken by other French chocolate companies as well (Refer to Appendix 2). The company of Hirsinger, a France based chocolate manufacturing company has the unique strategy of maintaining a museum and thus making the products of itself be prompted indirectly (Refer to Appendix 3).
Conclusion
From the above discussion, it may conclude that Aphrodite Chocolate is an SME company that wants to expand its business in France and the analysis of macro and microenvironment, SWOT, marketing mix may help the company to launch a new product successfully.
References
Baptista, I. V. (2021). Effects of packaging color on expected flavor, texture, and liking of chocolate in Brazil and France. International Journal of Gastronomy and Food Science, 24 , p.100340.
Chocolates, A. (2022, 03 22). Aphrodite Chocolates. Retrieved 03 22, 2022, from Aphrodite Chocolates: http://www.aphrodite-chocolates.co.uk/our-handmade-chocolates-2/
Costa, C. S.-P. (2018). Consumption of ultra-processed foods and body fat during childhood and adolescence: a systematic review. . Public health nutrition, 21(1), , 148-159.
Fernández-Villaverde, J. &. (2020). National Bureau of Economic Research. Macroeconomic outcomes and covid-19: A progress report (No. w28004).
Fusacchia, I. S. (2022). The consequences of the Trade and Cooperation Agreement for the UK’s international trade. Oxford Review of Economic Policy, , 38(1), 27-49.
JATMIKO, B. U. (2021). Strategies for MSMEs to achieve sustainable competitive advantage: The SWOT analysis method. . The Journal of Asian Finance, Economics and Business, , 8(3), 505-515.
Kavosi, Z. R. (2018). Factors influencing decision making for healthcare services outsourcing: A review and Delphi study. Medical journal of the Islamic Republic of Iran, 32 , p.56.
Kim, B. a. (2020). The impact of material and immaterial sustainability on firm performance: the moderating role of franchising strategy. . Tourism Management, 77 , p.103999.
Lin, H. a. (2018). An ideal model for a merger and acquisition strategy in the information technology industry: A case study for investment in the Taiwanese industrial personal computer sector. Journal of Testing and Evaluation, 48(2) , pp.775-794.
OEC. (2022, March 22). OEC. Retrieved from OEC: https://oec.world/en/home-b
Yadav, M. &. (2018). The influence of social media marketing activities on customer loyalty: A study of e-commerce industry. Benchmarking: An International Journal.
Yang, F. J. (2019). The optimal technology licensing strategy under supply disruption. International Journal of Production Research, 57(7) , pp.2057-2082.
