BSB MKG608A DEVELOP ORGANISATION MARKETING OBJECTIVES

ASSESSMENT TASK 2
VIABILITY REPORT


In case study we have to appointed the new marketing manager for Cocoa Delight a chain
of gourmet chocolate stores in Melbourne. According to case study, I must complete a
viability report for each of the marketing opportunities. The cocoa Delight has target to
open 100 stores in Australia till 2016.For that they try to examine the two way either
franchising or joint venture partner. The CEO helps to provided with consultant report for
the franchising option. They got proposal from the Haighs chocolate on the joint venture
option.

A. COST AND BENEFITS:
1. as per the IBIS report, the rate of interest are rising in very short period but expected to
level out at sustainable levels for the coming three years. 2. Haighs sell chocolate at mid
ranged prices, so customer could enjoy greater access to all of the product groups, including
the cheaper range of chocolate. 3. Disposable Income has reduced due to rising interest
rates recover in the long term with increased wages.

B. PEST ANALYSIS: The pest analysis is very helpful for understanding market growth or
decline and such as position .potential and direction for the businesses analysis is a business
measurement tool. Pest is an acronym for political, economic factors, which are used to
assess the market for a business or organization. 1. POLITICAL: the government is currently
passing legislation that requires business to monitor and reduce their waste and energy use.
Significant penalties are planned for business that doesnt comply with the new directives.
2. ECONOMICAL: DISPOSABLE income has reduced due to rising interest rates this shortfall
expected to be recovered in the long term, with wages including expected to outstrip
inflation rates by 2% unemployment levels are also increasing and expected to climb
steadily to 6% in the coming year.

3. SOCIAL: cocoa delights company will try to capitalize on the social trends of consumers
being more health conscious, by promoting the health benefits of dark chocolates and offer
the largest range of dark chocolate verities and more products. 4. TECHNOLOGY:
Technology developments with the broadband rollout across Australia have been delayed,
although the rollout is continuing and will be completed in the next three years. Internet
retailing options are expanding and most retailers are taking advantage of this new
technology.

C. RISK: Risk management is very important to the operations of the cocoa delight store.
The identification assessment and control of all risks are important to the successful
achievement of the store vision and mission.

RISK| IMPACT| LIKELIHOOD|
Lack of an equivalent financial reward can affect to run new stores| High| Medium| Haighs
chocolate is not using any advertising for their store. It could be affected to growth of
business| High| Medium| New legislation| low| medium|

Negative impact of the cocoa delight brand and products| moderate| medium|

D. FIT: Strategic management consists of the analysis, decision, and an organization in order
to create and sustain competitive advantage. Using the franchising option can get some
more opportunities. This idea will introduce of greater legal issues, with each store
operating on a separate legal agreement.


After review the Haighs chocolate proposal cocoa delight will get opportunities with
organizational goals and capabilities. Using JOINT VENTURE option with the Haigh,s
chocolate they can operate different market segment within same industries. A joint
venture is a business agreement in which the parties agree to develop ,for a finite time,
anew entity and new assets by contributing equity.