Shari’s Berries to Adelaide

1.     IntroductionAccording to the Harvard School of Public Health, eating some pieces of chocolate per month can make people’s lives longer and sweeter. A survey revealed that 65-year-old men who ate sweets containing chocolate could live longer. In recent years, chocolate is becoming more and more popular in Australia. There was an increase at chocolate market with 1.4% per year between 2004 and 2009 (Chocolate Market in Australia to 2014, 2011). Every year there is more than $1.3 billion consumption of chocolates in Australia. Shari’s Berries as a small corporation needs to expend the areas of business to get more opportunities to become stronger. Australian chocolate market is a big market for most of chocolate companies, especially Shari’s Berries which has unique characteristics. The purpose of this report is to advice the management of Shari’s Berries to set up a store in Adelaide. In particular, situational analysis and recommendation will be discussed in this report.
 2.     Product Analysis
2.1 Product
In recent years, the strawberries covered with chocolate have become one of the most popular gifts. The Shari’s Berries core product is quality chocolate. The ingredients of Shari’s Berries come from these of the world’s greatest chocolate companies, and the succulent strawberries are used at the chocolate market. Because of the luscious taste, the product ever earned a title that is “The Unforgettable Gift” through American customers. These chocolates include 40 types in Shari’s Berries, such as, Fancy Berries, Swizzled Berries, and Berry Medley.

2.2 Brand:According to Cadbury’s chocolate report (2000), in Australia confectioneries were the most popular snack food, because Australians liked confectioneries and a person consumed approximately 6.7 kg of chocolate per year. At the same time, chocolate accounted for about 77% of the sale of confectioneries in Australia with valued more than $1.3 billion every year. Confectioneries are similar with barriers, and the Shari is the founder of this brand, so Shari’s berries do not need to change the existing name. The meaning of this brand is obvious that these products of this brand are all belong to snack food. Because of setting up in USA for many years which originated in 1989, most of local people who speak English can realise the culture of this chocolate. Another reason is that Australia is a big migrant country that people come from different country which may lead to cultural invasion. The local people can easily understand this brand.

 3. Market Analysis3.1 Location:Rundle Mall is the best choice to open Shari’s Berries. There are two reasons for opening the store in this place. The first reason is that Rundle Mall is the business centre of Adelaide which is full of business opportunities, because more than 800 retailers, the majority of stores and shopping arcades locate in this place. The passenger flow is much bigger than other areas which provides these retailers more opportunities to sale their products. Australian Bureau of Statistics (2006) showed that the population of Adelaide is about 1.28 million. Shari’s berries as the new comer is lack of regular customers, so chosen this place can offer a chance to avoid the small quantity of passenger flow and expand the popularity of this brand. In addition, because of the unique and novel characteristics of Shari’s Berries, many people can be attracted by these products, especially young people. The second reason is that the traffic transportation is very convenient. There are many stop zones for trams, buses, taxis and private cars and car parking near Rundle Mall.  For customers who consume in Rundle Mall, the major factor is traffic. Good traffic can bring more people to here for buying things.

3.2 CompetitionIn Rundle Mall, there are four shops that sell chocolates.  Charlesworth Nuts which located in Myer provides many kinds of small size of chocolates which mixed with nuts and chocolates. The prices of these products are from $8 to $20 per 500g. The colour of these chocolates is very monotonous which the major colour is brown. The chocolates are done before buying. The target market is for young group, and the quality is medium level. The second shop is Haigh’s chocolate. This shop is a big channel shop which includes many kinds of chocolate, such as, boxed chocolate, gift chocolate and handmade dark chocolates. In addition, this shop is famous for its fruit and nuts. This shop locates at the corner of Rundle Mall, which side is near the main road “King William Road”. Because of including many types of chocolates and different levels, the price range of chocolate fluctuates from $0.5 to $200 per one, and the target market is for all groups. The third shop is Darrell Lea Chocolate shops. It sells different brands and sizes. Of course, the price fluctuates from $1 to $300 per one. It is opposite of Haigh’s chocolate. The target market and quality are similar with Haigh’s chocolate.The chocolate is a boutique industry in Australia and the barriers are relatively few for Shari’s Berries. The greatest barrier is from large-scale manufacturers which selling chocolate through convenience stores and supermarkets. The reaction to potential competitors may likely to produce own range of products and keep the quality of chocolates.

3.3 Target MarketThe Cadbury report (2000) represented that there were about 50% of all chocolate buyers within 25-49 years old group. In particular, women bought more chocolate than men did, but the aims of women and men were different which women were for their families and the men were for themselves. Seeing from this report, 25-49 years old women is the major market. According to Shari’s Berries chocolates, 25-35 year-old women is the target market for Shari’s Berries. Because the main reason that women buy Sheri’s Berries chocolates is for their families and women is the major purchasing power in chocolate market and the purpose of producing chocolate of Shari’s Berries is to celebrate and enjoy life, so this group is target market. Because of good appearance, some children will become the potential customers to purchase these chocolates.
3.4 PricingBecause of the Shari’s Berries specificity, the price lies in medium level consumption in Adelaide from $20 to $80 per one. Because 25-35 years old group have a little or enough ability to pay these products and based on the price market the price is suitable for customers and producers, this pricing is reasonable. 4. RecommendationsIn order to promote the sales of chocolates, some ways are suggested to use in the target market.The first way is advertising: full page ads in newspapers such as Adelaide advertiser and Sunday mail can make local people quickly know these products. Placing the ads in professional food magazine monthly can help retailer drive demand for Shari’s Berries chocolates among consumers. Direct mail also can help local people know the specific information about these chocolates such as sources, processing and categories, which can facilitate the promotion of chocolates.
The second way is to open the function of delivery. According to asking some chocolate shops, most of them do not have delivery service. Delivery can help retailers expend the areas of service. Normally a chocolate shop can service several kilometres, but when using delivery, the business circle expends invisibly which can get 10-20 kilometres.The third way is to provide the function of credit cards and debit cards. In recent years, in order to make deals easier, most of the stores provide the function of credit cards. The consumption is become more and more popular.The forth way is to select large and mouthwatering strawberries in market, and never froze these strawberries. This way can keep the strawberries are fresh and good, which can keep good quality. The last way is packaging. Using safe packaging can improve the quality and appearance of chocolate. Customers can develop the loyalty of this products.5. ConclusionIn conclusion, it is found that the Australian chocolate market is a new big market for chocolate companies. Through product and market analysis, Shari’s Berries do not need to change its own name to adapt Australian culture, and the chocolates of Shari’s Berries can be successful in Australian chocolate market. Recommendation provided some useful ways to promote the sales is suitable for local strategy. In the future, Shari’s Berries will account for some shares with competing with others chocolate companies.