Chocolate Shop Chocolate et Franky is a gourmet chocolate producer that will focus on the large market retailers such as Whole Foods and Bristol Farms. The chocolate will be a premium quality product, and this will be reflected in the price, and in the details of the marketing. There will be a retail chocolate shop at the production site, and this will serve as a gateway for the fans of the chocolate to interact with the brand, buy merchandise, and learn about the process of making chocolate. However, most of the business will be focused on developing the retail trade.

The Product

Chocolate et Franky will be predominantly a packaged chocolate product. The head chocolatier has extensive connections with wholesalers around the world and therefore has access to some of the finest cacao, the ingredient from which chocolate is made. This access will allow our company to produce a premium chocolate, and will allow us to engage in some fun product marketing, such as a single origin series. We will also produce a range of flavored chocolates, ranging from conventional choices like sea salt to seasonal choices like pumpkin spice. This range of chocolate will be appealing to mass market stores that are seeking a premium chocolate that can deliver to a broad range of consumer tastes, but also keep it interesting and fun, something to attract stronger brand loyalty and repeat business.

Target Market & Distribution Channels

There are basically two target markets for Chocolate et Franky. There is the end user, and then there is the distribution channel. The end user is typically somebody that is relatively wealthy, has a college education or higher, and lives in an urban area. This is the typical consumer for any high end chocolate product. The target consumer during the launch phase will actually be the influencers among this demographic. The buyer and consumer will typically be female, though at this level of quality chocolate is not as gendered a product.

To reach this target market requires selling through the right channels – the sort...

Our research indicates that Whole Foods is sort of the ideal channel, but there are many similar stores, and basically any high end grocery store will work. Our product is a premium product, and we expect it will sell better in stores where the clientele has higher disposable income, a propensity to experiment food-wise, and an appreciation for unique and unusual products. We have compiled lists for each geography we wish to target of the large chain and small, local stores through which we can distribute. To appeal to this market, you need to demonstrate that you have a high quality product, professional packaging, and the ability to price competitively. Many stores are willing to trial a product at a handful of stores, but are just as willing to cut the SKU if the product does not move. Thus, it is imperative that our packaging be exceptional and that we can hit a competitive price point.
We will also self-distribute through our website, which will be e-commerce enabled for shipping. The website will, however, only be used for retail during the cooler months, as chocolate is a perishable product that cannot be shipped in summer. Thankfully, Christmas and Valentine`s Day are really the two biggest days of the year for chocolate, with Easter another one for our target market. All of these are in the cooler months so the weather limitation on e-commerce should not have too much of an impact on our business overall.

Financial Analysis

The main costs in chocolate production are labor and ingredient costs. Our connections in the chocolate business give us access to great chocolate, but prices tend to fluctuate based on demand and the state of the harvest that year. Thus, the flagship products should be made with a blend of chocolates from different parts of the world to allow us to manage our supply chain more effectively.

Labor costs are actually fairly easy to manage. The Head Chocolatier is one of the equity holders, and requires only one apprentice. The…