Sunday, September 8, 2019
Taking Business Abroad Essay Example | Topics and Well Written Essays - 2500 words
Taking Business Abroad - Essay Example , between 2012 and 2013, seen basically flat sales (221M in 2013 and 222M in 2014), which is a problem for achieving growth for this High Street firm. The company was, however, able to raise its net income from à £3.1 million to à £5.3 million between 2013 and 2014 as a result of reduced selling, general and administrative costs in its operational model (Bloomberg). In 2011 and 2012, the company reported no profitability. Thorntonââ¬â¢s, as a High Street company, provides gourmet chocolate products under a premium pricing structure to cater to the higher resource consumer in the United Kingdom. It is positioned in its market against quality, attempting to build a premium brand identity to gain interest from its more affluent target customer segments. The firmââ¬â¢s recent advertising strategies included The Art of the Chocolatier and Chocolate Heaven since 1911 as a means of using traditionalism and quality/sophistication to gain interest in markets that lean toward premium products. Fortunately, Thorntonââ¬â¢s does not operate in a highly saturated competitive environment, competing against such brands as Cadbury which are not targeted at the high resource consumer. After 103 years of operations, Thorntonââ¬â¢s has managed to create a brand that stands out among lower cost, less quality chocolate products and has a reputation for superiority with many UK consumers. Thorntonââ¬â¢s, with flat sales volumes, requires a strategy to achieve growth in a market where consumption levels are not growing sufficiently. In the UK, Thorntonââ¬â¢s is in its maturity stage which makes it difficult to achieve revenue growth without altering its existing business model and seeking new markets. This report identifies opportunities for Thorntonââ¬â¢s PLC to enter the Chinese market as a means of enhancing sales growth and improving the financial position of the firm. The companyââ¬â¢s most significant competitor is Cadbury, a company that produces chocolate products targeted at mass markets, but
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