Candy bars and their position in France
- The attractiveness of the WTO remains strong
- The dispute settlement body works
- The malfunctioning of the WTO announced the end model?
- The Doha round of negotiations
- Institutional weaknesses
- The WTO does not have the means to ensure effective regulation of trade
The appearance of candy bars in France dates back to the 60s. This changed the pattern of consumption of chocolate. Chocolates or candy bars then began dominating the shelves in stores and supermarkets. Snacking on chocolate made the candy bars a must-have product.
The candy bar's practicality and taste has endeared it to many people. 94% of the French people consume chocolate and 80% of the people over the age of 15 years snack on chocolates between meals. Due to this growing popularity and an increase in the number of products, the market for chocolate confectionery is stable. Stakeholders, including the Mars group, must double their efforts to continue to attract consumers and become increasingly innovative in order to defeat competition.
The market for chocolate bars is part of a larger market: the chocolate. Although cocoa is the third most traded commodity in the world, it is mainly produced in developing countries (Côte d'Ivoire, Ghana, Indonesia). Since the tree only allows two harvests per year, the production cycle is characterized by phases of overproduction and deficiency, resulting in significant variations in the prices of cocoa beans and therefore chocolate. This is known as a highly speculative produce.
Porter matrix allows one to determine the structural characteristics of the market for chocolate bars by analyzing jointly the competitive intensity and industry profitability. This matrix takes into account the internal forces and the forces outside the sector, allowing a firm to determine the strategies it can use.
In terms of internal forces, rivalry within industry tells about the intensity of competition. There are three great leaders in the market for chocolate bars namely Ferrero, Mars and Nestle Group with respectively 33.7%, 28.1% and 22.4% market share in value.
One can talk of a sector focused and relatively stable since these three leaders account for about 85% market share.
Regarding the consumption of chocolate bars, it is not cyclical: a bar can be eaten throughout the year, and a progression can be seen from the appearance of the snacks (the snack budget represents 10% power budget of a household).
The "exit ticket" is moderately high. Indeed, it is not easy to turn into a producer of chocolate bars (the technology and know-how to acquire), but this is not impossible.
Although there are many companies in-chocolate confectionery in France, it is difficult to compete with brands such as Nestle. The competitive intensity, represented by a thick arrow, is strong enough. The main threat is the price elasticity / demand: the higher the price goes down, the demand will increase and vice versa. In addition, the customer is unfaithful, always looking for something new: consumers have the ability to easily change products and brands with a wide offer. This power is a real threat to stakeholders.
The market for chocolate bars is now between the competitive world of specialization (the companies focus on their resources to build a competitive advantage; control in research and development and in marketing is required) and volume (the competitive advantage based on the volume.) companies must constantly innovate to stand out.
Tags: Candy bars; product position in France; strategy of candy manufacturers