3. Introduction
We at Sapid Sweets are the producer of high quality chocolate and our main business purpose is to
bring delicious, high quality chocolate into the world for a high price. Our prices may be high in Canada
and the USA but they are comparable in Europe which are overpriced. The Company is a family ran
company in which all products are produced in Canada and then shipped out to Canada, The USA and
Europe. Our Fancy Chocolate is not only for happy occasions but also when you need some quick
energy.
However with our current product having too many refined carbohydrates and customers starting to
worry about their health we needed to find a suitable replacement that would both be healthy and
sweet, which brings me to the energy bar market. There is a 10% annual growth in both this market
and the growth in the young professionals, Over 50% of the young professionals are health conscious
and 75% of them will consume energy bars especially when they are busy. Therefore I believe
environmentally sound energy bars have potential to grow and be a suitable replacement that would
not only benefit our current customers but possibly attract new customers.
Executive Summary
Sapid Sweets is a well-known chocolate company that is based in Canada but does business in Europe,
The States and Canada. This business plan is to introduce a healthy energy bar to our young
professionals that are health conscious. Our surveys show us that over 75% of young professionals will
consume energy bars when they are busy
Judging by our SWOT Analysis the Strengths and Opportunities show that we would be able to keep
our current customers, gain new ones and become a force in the health industry for our new energy
bars. Our Target market would be between the ages of 18 to 30 and would mostly focus on office
workers
4. SWOT Analysis
SWOT Details
Strengths Current customers would still be willing to pay for our product
We could make the Energy bars both sweet, tasty and have a high
Quality.
We would be able to ship all over Canada, The USA and Europe
Weaknesses Would have to hire new experts that are experienced in Energy Bars
Our competitors are much bigger companies and can attract more
customers especially since Their Products are available in many
department stores and retail stores
Opportunities Energy Bar Market will continue to grow and we could grow with it and
Target the right Target Market
With more and more people being health conscious and trying to lose
weight we could introduce our energy bar at the right time.
Threats With new Sweeteners entering the market that have sucralose and
stevia we could lose customers to this as well
5. Target Market
Our Demographic and socio-cultural studies have shown us that the young health-conscious
professionals are interested in energy bars as a meal replacement if they miss breakfast, have to work
through lunch or need to fill the gap between lunch and dinner.
The Current market values quality ingredients, the health benefits, and appreciates the convenience of
being able to buy frequently used products in bulk. Many consumers in this market also feel strongly
about ecology, pollution, and fair trading with under-developed countries.
Our consumers always keep up to date of the latest findings in nutrition and health and they would
want to use the best available food products that would both be nutritious and healthy.
Age Range: 18 to 30
Occupations: Office Workers
Marital Status: Single or in Relationship
Lifestyle: Healthy and Active
Activities: Going to the Gym
health Conscious
60%
young
Professionals
40%
Sales
6. Goals and Objectives
Product:
With our new healthy energy bar we will be able to appeal too many of the young health professionals
for various reasons, Our energy bar is not to sweet and made up of organic ingredients which include
fruits, nuts and berries as well as Omega-3 fatty acids.
Omega-3 Fatty acids can help with the prevention of heart disease, can help lower cholesterol and can
prevent Inflammation which in turn can help reduce serious diseases such as strokes, cancers,
autoimmune diseases, aging skin, and even hemorrhoids.
Our health energy bar can be broken down into bit sized pieces as well as there are no preservatives
and low cholesterol, which can attract a lot of our current customers and can bring new ones in as well.
Our packaging of our ingredients is biodegradable, our ingredients are produced using ecologically
sound harvesting techniques and come from economically disadvantaged villages which give us an
advantage since our target market cares strongly about ecology, pollution, and fair trading with under-
developed countries.
Other energy bars on the current market have succeeded due to mass marketing, flashy advertising,
and low prices. Their products are mostly available as single bars in retail outlets where ours can be
sold in bulk,
It is difficult to tell the difference between their energy bars and there candy bars the only way
consumers can tell is the brand names uses symbols and synonyms for energy.
Price:
Containing marketing costs during the initial launch phase of the product is important as the company
is planning to run the energy bar division as a separate company and obtain outside financing.
Preliminary trials indicate that the target market is very likely to purchase the product after trying it,
and learning about its unique advantages.
To determine the market’s preference for different ingredients, the company contracted an outside
food development firm to create a range of energy bars to test with a focus group. Some ingredients
cost more than others. The retail price of the bars is proportional to the cost. Below is a table
comparing the Retail Price and the Manufacturing Cost Price of the 10 different types of bars tested
7. Retail Price Cost Price
$2.00 $1.00
$2.20 $1.10
$2.40 $1.20
$2.60 $1.30
$2.80 $1.40
$3.00 $1.50
$3.20 $1.60
$3.40 $1.70
$3.60 $1.80
$3.80 $1.90
Test subjects were informed of the retail price of the bar they were testing (for 100g bar), and the
ingredients used. Based on the cost, the ingredients used, and the taste, they were asked to rate each
bar on a scale of 1 to 5, with 5 being best (most likely to buy) and 1 being the worst (least likely to buy).
Below is a chart of the focus group results.
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
$2.00 $2.20 $2.40 $2.60 $2.80 $3.00 $3.20 $3.40 $3.60 $3.80
MeanOpinionScore
Energy bar price per 100 gram
Market Test of Different Energy Bar Recipes
8. Place
the study group was also asked when they would most likely buy their energy bars. From their
responses, the Marketing Department calculated the sales distribution chart shown below:
With our chocolate boutique retailers currently sell nothing like our energy bars, therefore their
customers are usually buying our chocolate products for gifts or entertaining purposes with that said
over 25% of our sales come from our on-line store.
Also with July and August being two of the biggest months for our sales we would be able to distribute
more and charge extra for those two months. We very well could sell in arenas, use our regular
retailers and sell our energy bars to gyms and health fitness centers all over.
Promotion
The Best type of promoting we could do is advertising, we currently advertise in specialty magazines
and TV that caters to rich and cultured people however we could advertise elsewhere, below is a chart
of ads we could choose from as well as the costs.
4 5 4 5 4
10
20
30
10
3 2 3
0
5
10
15
20
25
30
35
40
%ofAnnualSales
Month
Energy Bar Market Annual Distibution
9. Type of ad One time costs Location/tim
eslot
Location/timeslot Location/timeslot
Cost of one occurrence
30 sec radio ad 10,000 Morning:
500
Afternoon: 100 Evening: 75
30 sec TV ad 50,000 Morning:
1,000
Afternoon: 500 Evening: 5,000
Billboard, 1 month 2,000 Downtown:
10,000
Suburbs: 5,000
¼ page newspaper 500 Business
section:
2,000
Lifestyle section:
1,500
Entertainment section:
3,000
I believe we should do a billboard for 1 month and a radio ad, for our target market is outgoing,
energetic and wanting to be healthy the likely chance is that they will be out exercising and not in
doors watching TV. Majority of our target market will either be listening to our ad or seeing our ad on
the billboards.
Wrapper Material Price per 100 gram of product
($)
Target Market Preference
(1 is least attractive, 5 is most
attractive)
Plastic film 0.04 3
Wood paper 0.03 2
Hemp paper 0.10 6
Flax paper 0.12 5
Rice paper 0.09 4
Plastic coated aluminum foil 0.05 1
10. Measurement & Control
We could measure our progress by contacting a few of our retailers and finding out how there
sales have been concerning our new energy bar.
We can keep an eye on sales by having our sales team also do some marketing research to
determine how well the bars are selling.
Have weekly meetings so management knows the status of the energy bar