1. A private business owner is looking to invest in the Kenyan market. He
wants to open up a businesses in a chocolate manufacturing company
(catering to the
consumer market),He is looking for consultants to help him determine
how best he can segment, target and position ensuring maximum
returns. If you were pitching for this job, how would you advise him?

2. Choco brand
SEGMENTATION | TARGETING | POSITIONING

3. Situational Analysis
Strengths
1. Affordability
2. Quality
3. Variety ( fudgelicious,
minty, salted caramel
nutty-choc, dark and
white chocolate)
4. Local commodity
(Patriotic angle)
5. Good financial backing
Weaknesses
1. High operating costs(fuel
and transport cost)
2. Limited distribution
channels

4. Situational Analysis
Threats
1. Inconsistency from
certain suppliers (i.e
Ingredients, electricity
and water)
2. Well established
competition (Cadbury)
3. Healthy lifestyle trend
Opportunities
1. Increasing market demand for unique
products and variety
2. Increasing purchasing power of the middle
class, youth and children.
3. Online distribution
4. Digital marketing
5. Numerous suppliers of certain ingredients
6. Untapped markets (Middle to low end
spenders)

5. Statistics
During the five year period noted
in the graph to follow, Kenyans
consumed an average of eight
percent more chocolate per year,
reaching about $30 million in
CY2010. On a per capita basis,
that comes to just less than
$1.00 per person spent on
chocolate per year.
• (Kenya Snack Foods Market,
Global Agricultural Information
Network, Souleymane Diaby.
2011).

6. Market Segmentation
• Geographic – Urban centers, cities, rural regions
• Demographic- Age ( children 2-12) (Teens 13-20) (Youth 20-30)
• Psychographics - Social class (low to middle class with some
disposable income)

7. Market Targeting
Considering our product is an affordable quality product the
segments chosen for targeting are:
1. Low to middle income segment
2. Low to middle class segment
These segments were chosen as they comprise the core market in
Kenya and would translate into large volumes of sales if market is
captured.
We have identified our main competitor, Cadbury products who are
well established and have a good distribution network.

8. Market Targeting
• The market coverage strategy chosen was undifferentiated as:
1. It allows for limited advertising resources
2. The marketing purpose is to “create awareness” hence one
campaign can work for the mass market.
• The target segments have homogenous elements

9. Production Position
Product Benefit -Quality
-variety
- Affordability
Reason Why -“ fun “ size
- Locally sourced ingredients
Point of
difference/positioning
- Most affordable locally produced chocolate to enter the
market offering quality and variety
Target Group Low-middle class income segments