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Candyking Essay

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I N T E R N A T I O N A L M A R K E T I N G
M A Y 2 0 1 1

I N T E R N A T I O N A L M A R K E T I N G
M A Y 2 0 1 1

E M E L I E W E N D E L
A L L Y S O N D I A S
R E B E C K A G R I M S B E R G
A N N A K A T H A R I N A G E O R G E

E M E L I E W E N D E L
A L L Y S O N D I A S
R E B E C K A G R I M S B E R G
A N N A K A T H A R I N A G E O R G E

How to introduce pick & mix candy in Germany
- International Marketing Report
How to introduce pick & mix candy in Germany
- International Marketing Report

Executive Summary
Candyking is the biggest retailer of pick & mix candy in the world and since pick & mix candy. Candyking’s basic idea is to let the consumer put together his own candy bag according to need, occasion and taste. Their assortment is of the highest quality and contains select favorites from the different suppliers. Candyking is a very strong brand so they can offer grocery retailers, amusement parks, service stations and cinemas a package solution. Candyking’s founder, Christer Forsman, is Swedish and he came up with the idea to try manual candy sales in 1980-1981. The sales went really well and in 1984 the pick & mix candy sales started in a store in the Swedish capital, Stockholm. Since the sales went so well in Sweden and also later in England, Norway and Finland we would like to trade this product with Germany though it’s the second country, after Sweden, where you eat the most candy.

Despite the fact that the German government puts a strong emphasis on the consumer’s protection and the numerous campaigns of fitness and health programs of magazines and also fitness companies, the German sweets consumption is very high and still rising. No matter which family constellation, social group or nationality the different people belong to, they all love sweets. Consumption habits do not differ among the various consumption opportunities, i.e. the German population consumes sweets in families, in groups, alone in front of the PC, at home, outdoors, etc. As a consequence, the business opportunities for any kinds of sweets are immense within the German market as long as the European and German requirements are fulfilled and as long as the expanding companies keep the competition in mind.

Table of Contents

Preface 3
Introduction 4
Part I. Cultural Analysis 6
1.1 Cultural analysis of Germany 6
1:1:1 Relevant history 6
1:1:2 Geographical setting 7
1:1:3 Social institutions 7
Aesthetics 9
1:1:4 Living conditions 9
Diet and nutrition 9
Social security with reference to Health Care 9
Part IV. Preliminary Marketing Plan 11
2:1 The marketing plan 11
2:1:1 Marketing objectives 11
2:1:2 Product adaption or modification 11
2:1:3 Promotion mix 13
2:1:4 Distribution: From origin to destination 17
Port selection 17
2:1:5 Channels of distribution 18
Retailers 18
Warehousing 19
2:1:6 Price determination 20
Cost of the shipment of goods 20
Candyking’s gross margins 20
Retail price 21
Time draft 22
Appendix I – Packaging 25

Preface
Pick & mix candy is candy that is sold as price per kilogram and you choose your own bag of candy from big walls in for example the supermarkets. The advantage of pick & mix candy is that it gives the consumer the freedom of choice, to select their personal favorite candy and mix them freely. The disadvantage of the large selection and the big bags is though that the consumer more easily purchase larger quantities than you would otherwise notice. Swedes eat the most pick & mix candy in the world. This type of candy is also common in Finland, Norway and England. Young people and women between 25 and 60 years old eat the most candy. In Sweden they eat more than 18 kilograms candy per person and per year. For the stores the pick & mix candy has become an important bait to lure the customers into their store. Competition is hard and you need the best price and supply to attract the price-consciousness customers. The biggest wholesalers are Karamellkungen and Candy Prince, which are both part of the company Candyking.

Introduction
In the following paper, we will analyze the ”pick & mix candy” market in Sweden and discuss ways to introduce this product in Germany. In order to precisely define the market analyzed, we will begin with an introduction of the company Candyking, the product to be exported and the country with which we wish to trade, in this case Germany.

The company, Candyking, was founded in 1984 under the name “Karamellgrossisten in Sweden AB”. In 1995 the company changed name to Karamellkungen AB. Since the late 1990s the company has been called Candyking all over the world except in Sweden where the original name Karamellkungen has been kept. In 2008 Accent Equity, an investment fund focused on unlisted small and medium sized companies in the Nordic countries, bought the company (Candyking, 2011).

Candyking’s basic idea is to let the consumer put together his own candy bag according to need, occasion and taste. Their assortment is of the highest quality and contains select favorites from the different suppliers. Candyking is a very strong brand so they can offer grocery retailers, amusement parks, service stations and cinemas a package solution. The package solution includes marketing activities, displays, sales support and service. Candyking is represented in more than 7,000 stores and cinemas and have currently 800 employees and sales of €150 million (Candyking, 2011).

”Taste sensations based on freedom of choice.”
”Taste sensations based on freedom of choice.”
The product, pick & mix candy has been available in one form or another for many years in candy stores and kiosks. Candyking established, in the mid-1980s, a pick & mix candy concept for the grocery-retailing sector. During the last 20 years of Candyking’s existence the percentage of pix & mix candy sales have increased from a few per cent of total candy consumption till over 30 per cent in some markets. Candyking’s focus is, and has always been to offer retailers a manageable concept, which is profitable, and to offer the consumers a way to purchase all their favorite candy. Their vision is to be the leading pick & mix candy concept in Northern Europe and their mission is “taste sensations based on the freedom of choice.” The company’s business concept is to offer consumers the opportunity to select their favorite candies for enjoyable moments and our customers a profitable, manageable concept. Candyking is considered the best brand of pick & mix candy on the established markets (Candyking, 2011).

Candyking’s founder, Christer Forsman, is Swedish and he came up with the idea to try manual candy sales in 1980-1981. The sales went really well and in 1984 the pick & mix candy sales started in a store in the Swedish capital, Stockholm. Since the sales went so well in Sweden we would like to trade this product with Germany though it’s the second country, after Sweden, where you eat the most candy (Candyking, 2011).

Part I. Cultural Analysis
1.1 Cultural analysis of Germany
* 1:1:1 Relevant history
German sweets are all known over the world for their quality and for their uniqueness. Germany is known for their gummy bears, marzipan, mozartkugeln and krapfen. According to Leaf Finland an average German eats 15 kilos of candy each year. It is the third most in the world, close behind Sweden and the UK. That is almost as much as the average EU citizen eats (Kostdoktorn, 2011).

One of Germanys most famous candy brands is Haribo. Haribo was founded by Hans Riegel in Bonn district Kessenich in 1920, where the head office still is. Two years later he created the Gold Berries named Tanzbären. Haribo quickly grew into a part of leading candy manufacturers in the interwar period. 1925 they started producing licorice products. Today it manufactures a wide range of fruit gum, sweets and licorice (Germanfoods.org, 2011). Due to the fact that bars of chocolate as well as cookies have even higher consumption rates in Germany than fruit gum (Magazin Deutschland, 2011) it is essential to also name three other brands / companies whose history is very important regarding the German sweets market: Milka (Kraft Foods Deutschland GmbH), Ferrero Deutschland GmbH and the Bahlsen GmbH & Co.KG (Germanfoods.org, 2011).

Milka is one of the most favorable chocolate brands for the German consumers. The brand exists since 1901 and stands for quality. The brand is expanding its product line continuously. Recently Milka introduced Milka cookies in t...

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