Confectionery sector is recession-proof
Consumers engage in impulse buying because of targeted advertisements
Chocolates considered an affordable, harmless indulgence (Adwan, 2003).
Consolidation in the market
Sugar-free confectionery fetches better margin for retailers
This can be introduced for mainstream buyers and not just for the diabetics or the obese population.
Preference for fair-trade products is high as main competitors switching to fair-trade confectionery (The Fairtrade Foundation 2010). Fair-trade public procurement has strong public support in UK.
High cocoa price exerts pressure on profit margins
Sugar-free products more expensive than standard products but gaining popularity
Three main competitors with rising market share
The opportunities and threats suggest that market for sugar-free confectionery is growing because of rising obesity. The company should focus on fair-trade and people would be willing to pay a premium price for it. Accordingly the marketing strategy should be as follows. ...