MARKETING MANAGEMENT PROJECT REPORT

M.COM.(Business Management) 2023-25

1st SEMESTER

Submitted to:
Prof. Mohammad Altaf Khan

Submitted by:
Essam Abdul Ghafoor M S Baksh
Hiba khan
Najma Farooq
 CERTIFICATE
This is to certify that Essam Baksh, Hiba Khan and Najma Farooq
pursuing M.Com. (Business Management) from Jamia Millia
Islamia, has successfully completed the Project of Marketing
Management on the product "Handmade Chocolate", and have
curated a report on a new brand of their own "divine
confections".
This project report is an original work carried out by them under
the guidance of Prof. Mohammad Altaf Khan, the matter
embodied in this project is a genuine work done by them to the
best of my knowledge and belief. During their project tenure, I
found their hardworking, sincere, diligent and their behaviour and
conduct was up to the mark. I wish all the best for her future
endeavours.

Prof. Mohammad Altaf

Khan
Department Of Commerce
And Business Studies
Jamia Millia Islamia
 ACKNOWLEDGEMENT
This project would not have been possible without the support
of many people.
First and foremost, I would like to thank Prof. Mohammad Altaf
Khan for providing us with the chance to perform this project,
without his constant support and invaluable guidance all we
would not have been able to develop, engage with and truly enjoy
this project as much as we did and providing us with this hassle-
free experience.
The flexible approach and continual support he has shown to us
was crucial in helping us maintain clarity and focus especially
towards the end of our writing stage. I would also want to thank
each other who had kind words of encouragement for us.
Last but certainly not the least, we would like to acknowledge
and thank our parents for always being there and all that they’ve
done for us.
Finally, we would like to acknowledge the institution and its staff
for providing us with the necessary resources and facilities to
conduct this project.
Once again, we express our heartfelt gratitude to everyone who
has played a part in making this project possible.

Sincerely,
Essam Abdul Ghafoor M S Baksh
Hiba khan
Najma Farooq
Handmade Chocolates Product Management Report
Summary:
The performance and strategy for our line of handcrafted chocolates are summarised
in this report. Key indicators, market research, customer input, and suggestions for
future improvement are highlighted in the report.

Introduction:
For everyone to enjoy, our handcrafted chocolates product range includes quality,
artisanal chocolates made with the best ingredients.

The current state and future course of the product are described in this report.

Product Overview:
Our handmade chocolates come in a variety of flavours and designs, each handcrafted
to perfection. They cater to individuals seeking unique and luxurious chocolate
experiences. The chocolates are packaged elegantly, making them suitable for both
personal enjoyment and gifting.

Product Planning and Development:

Product planning and development for handmade chocolates involves several key
steps to create a successful and appealing product:

1. Market Research:

• Start by investigating the chocolate industry. Recognize market trends,

consumer preferences, and rivalry.
• Determine who our target market is and what they like. Are you trying to attract
fans of fine chocolate, consumers who are concerned about their health, or
people who want something different?

2. Idea Generation:

• Come up with concepts for our handmade chocolates. Take into account
elements like flavour, form, packaging, and any distinctive selling propositions
(USPs) you wish to include.
• Consider the narrative or concept that inspired our chocolates. This might be
associated with the ingredients, our brand, or a particular idea.
3. Recipe Development:

• Construct or improve our chocolate recipes. Try experimenting with various

chocolate varieties, flavours, fillings, and textures to create a special and
mouthwatering taste.
• To appeal to a wider audience, take into account dietary constraints such as
vegan or gluten-free alternatives.

4. Prototyping and Testing:

• We make our chocolates in small quantities for testing and feedback. Family,
friends, or potential consumers may be involved.
• To make adjustments, get customer feedback on the flavour, texture,
appearance, and general pleasure.

5. Cost Analysis:

• Calculate the cost of making our handmade chocolates, taking into account
labour costs, packaging, and raw materials.
• Establish a price strategy that will maintain market competition while allowing
for a profit margin.

6. Branding and Packaging:

• Create a brand identity and packaging that reflects the excellence and
distinctiveness of our chocolates and is visually appealing.
• If you want to appeal to customers who are concerned about the environment,
think about eco-friendly packaging solutions.

7. Production Plan:

• Plan our production process, including the equipment needed, ingredient

sourcing, and production schedule.
• Ensure that our production facility meets hygiene and safety standards.

8. Marketing Strategy:

• Create a marketing strategy to advertise our handcrafted chocolates. This can

involve having a website, a social media following, email marketing, and
working with nearby merchants.
• Focus on our unique selling points, such as our artisanal, handmade, or high-
quality chocolates.

9. Distribution Channels:

• Choose our distribution strategy for our chocolates. Selling possibilities include
doing so on our website, at neighbourhood farmers' markets, in specialty
shops, or even at pop-up stores.
 • For a wider clientele, think about online sales and shipping alternatives.

10. Launch and Promotion:

• A strategic marketing effort will be used to introduce our handcrafted

chocolate goods. Product introductions, tastings, or partnerships with
influencers may be involved.
• Offer specials or discounts to draw in new clients and raise our brand's
visibility.

11. Feedback and Iteration:

• Continually collect client feedback and adjust our product and marketing
strategy as necessary.
• Be flexible to updating and growing our product lineup in response to customer
demands and industry changes.

12. Quality Control and Scaling:

• Maintain tight quality control as our company expands to guarantee

consistency in our handmade chocolates.
• If demand rises, manufacturing might be increased while keeping the
distinctive artisanal quality of our chocolates.

We keep in mind that perseverance and commitment are essential for the success of
our handcrafted chocolate company. To succeed in the cutthroat chocolate sector,
we must constantly innovate, pay attention to our customers, and adjust to changing
market conditions.
Product Line Management:
To fulfil the demands and tastes of our target market, product line management for
handcrafted chocolates entails carefully planning, producing, and maintaining a
variety of chocolate items. Here is a step-by-step manual for managing our line of
handmade chocolate products:

1. Market Analysis:

• Keep an eye on the chocolate market to see trends, changing customer tastes,
and shifts in the market's competitive environment.
• To learn about the preferences and expectations of our customers, collect
feedback and run surveys.

2. Segmentation and Targeting:

• Segment our market according to criteria like taste preferences, dietary

limitations (including veganism and gluten-free eating), price sensitivity, and
occasion-specific chocolates (e.g., gifts, special occasions).
• Choose the customer groups that particular chocolate items should target.

3. Product Portfolio Strategy:

• Create a strategy for our product portfolio that explains the kinds of chocolates
we want to sell and how they fit with our brand and target market.
• Think of expanding our product lineup to offer a range of flavours, sizes, and
packaging choices.

4. New Product Development:

• Try out fresh chocolate flavours, fillings, and designs on a regular basis. Keep
a look out for new developments in chocolate, such as artisanal methods or
unusual ingredients.
• To make sure new products meet criteria for taste and quality, prototype and
test them.

5. Product Lifecycle Management:

• Our marketing and production strategies should be modified in accordance

with where each product is in its lifespan (introduction, growth, maturity, and
decline).
• To make place for new offerings, think about updating or eliminating products
that are no longer in demand.
6. Pricing Strategy:

• Create a price strategy that takes market demand, perceived value, and
production costs into account.
• Because we offer various types of chocolate products, we will implement tiered
pricing (e.g., basic, premium, luxury).

7. Inventory Management:

• To make sure we have the correct products in store to fulfil client demand, keep
a constant check on our inventory levels.
• Reduce waste by managing production amounts well and taking seasonal
variations into account.

8. Packaging and Presentation:

• Make sure that each chocolate product's packaging and presentation

complements its positioning and target market.
• Use packaging to tell a story about our brand and the uniqueness of our
handmade chocolates.

9. Marketing and Promotion:

• Create marketing campaigns that promote particular items from our line,
particularly those that go with seasonal or thematic promotions.
• Use social media, email marketing, and other channels to showcase our
product line and engage with customers.

10. Sales and Distribution:

• For each product in our portfolio, determine the most efficient sales and
distribution routes. Farmers' markets, local merchants, and online sales are a
few examples of outlets where some products could sell better than others.
• Consider offering exclusive products or limited-time offerings to drive sales
and create a sense of urgency.

11. Feedback and Iteration:

• Continually gather customer input on our product line to find opportunities for
innovation and improvement.
• Utilize customer feedback to improve current items and create new ones that
more closely match their tastes.
12. Quality Control:

• To guarantee consistency and client satisfaction, we enforce strict quality

control standards across our whole product line.
• Continually evaluate the standard of the raw materials and manufacturing
techniques.

13. Sustainability and Ethics:

• Think about the ethical and environmental effects of our product line, such as
using eco-friendly packaging and obtaining sustainable ingredients.

14. Competitor Analysis:

• In order to remain competitive and distinguish our chocolate products from

those of our rivals, keep a watch on their product lineups and price tactics.

Handmade chocolate product line management entails striking a balance between

satisfying client needs, remaining inventive, and upholding brand consistency. To
remain profitable and relevant in the market, we frequently examine and modify our
product line strategy.
 Product Mix Management
Product mix management for handcrafted chocolates entails maximising profitability
while maximising the variety of chocolate goods you provide to fulfil the needs and
preferences of our target clients. Here is a step-by-step manual for managing the
assortment of our handmade chocolate products:

1. Understand Customer Segmentation:

• segmenting our clientele depending on things like dietary restrictions, taste

preferences, price sensitivity, and occasions (gifts, special events).
• Determine which market sectors are most lucrative and have the most room
for expansion by analysing customer data.

2. Analyse Current Product Mix:

• Analyse the flavours, sizes, packaging, and pricing points of our current
chocolate product line.
• Determine the best-selling items we have, the items that sell slowly, and any
product gaps.

3. Define Strategic Goals:

• To increase sales, profitability, market share, or brand recognition, for example,

set specific goals for our product mix.
• Establish our special value proposition and how our product offers should
represent it.

4. Product Rationalization:

• Based on factors including sales, profitability, and client demand, evaluate the
success of each chocolate item in our collection.
• To simplify our product mix, think about phasing out or redesigning
underperforming products.

5. New Product Development:

• Maintain innovation by creating new chocolate products that are in line with
consumer preferences, seasonal demand, and market trends.
• Ensure that new products complement our existing offerings and fill any gaps
in our product mix.

6. Product Differentiation:

• Focus on distinctive flavours, high-quality ingredients, artisanal craftsmanship,

and innovative packaging to set our chocolate products apart.
 • Highlight the stories, traditions, or special techniques behind our handmade
chocolates.

7. Pricing Strategy:

• Implement a pricing plan that takes into account perceived value, competitive
pricing, and production costs.
• To stimulate upselling and cross-selling among our product mix, we carefully
price our products.

8. Seasonal and Limited-Time Offerings:

• Introduce seasonal chocolates and one-time deals to pique clients' interest and
sense of urgency.
• Sales of these unique items may increase around holidays and other
appropriate times.

9. Packaging and Presentation:

• Make sure that our product mix's attractiveness is enhanced by packaging that
is consistent with our brand's image.
• Think about providing individualised packaging for special events as well as
gift packaging alternatives.

10. Inventory Management:

• Maintain optimum inventory levels to prevent running out of popular items or

overstocking.
• Implement effective replenishment and inventory tracking systems.

11. Marketing and Promotion:

• Create marketing campaigns that promote the various items in our mix while
highlighting their special qualities and advantages.
• Utilize influencer partnerships, email marketing, social media, and email
marketing to promote our product mix.

12. Customer Feedback and Market Research:

• Gather customer input to better understand their tastes and spot areas where
the product mix could be improved.
• To make educated judgments, keep up with market trends and the products
offered by rivals.
13. Quality Control:

• By upholding stringent quality control standards, we can guarantee consistent

quality across our whole product mix.
• Review the quality of the raw materials, manufacturing procedures, and final
goods on a regular basis.

14. Performance Measurement:

• Continually evaluate the profitability, customer satisfaction, and sales statistics

to determine how well each product in our mix is performing.
• Adapt our product mix based on market trends and performance indicators.

15. Sustainability and Ethics:

• Take into account the ethical and environmental components of our product
mix, such as using eco-friendly packaging and obtaining sustainable
ingredients.

A continual process, effective product mix management necessitates adaptability and

flexibility to shifting market conditions and consumer preferences. Review and tweak
our product mix frequently to make sure it satisfies both client demands and corporate
objectives.

Goals and Objectives:

Starting a business selling handmade chocolate can be a thrilling endeavour with
many potential ambitions and aspirations. Here are a few typical examples that we
have thought about:

1. Product Quality and Innovation:

Objective: To create high-quality, innovative, and delicious handmade chocolates.

Goal: Achieve a consistent 5-star rating for product quality and innovation on
customer reviews within the first year.

2. Market Research and Target Audience:

Objective: To identify the target market and customer preferences.

Goal: Conduct market research to define a clear target audience and adapt product
offerings accordingly.

3. Branding and Identity:

Objective: Develop a strong brand identity and story.

Goal: Create a compelling brand story and logo within the first three months.
4. Production Efficiency:

Objective: Optimize the chocolate-making process for efficiency.

Goal: Reduce production costs by 15% within the first year without compromising
quality.

5. Distribution and Sales Channels:

Objective: Establish effective distribution channels.

Goal: Secure partnerships with local boutiques and gourmet stores within the first six
months.

6. Marketing and Promotion:

Objective: Promote the brand and products effectively.

Goal: Gain 5,000 social media followers and launch at least one successful influencer
marketing campaign in the first year.

7. Online Presence:

Objective: Build a strong online presence.

Goal: Launch a user-friendly e-commerce website and generate 20% of total sales
from online orders within the first year.

8. Customer Engagement and Loyalty:

Objective: Build a loyal customer base.

Goal: Implement a customer loyalty program and maintain a customer retention rate
of at least 30% after the first year.

9. Financial Growth and Profitability:

Objective: Achieve financial sustainability and growth.

Goal: Achieve a positive cash flow by the end of the second year and a 20% growth in
revenue in the third year.

10. Financial Planning and Risk Management:

Objective: Ensure financial stability and manage risks.

Goal: Develop a comprehensive financial plan and identify and mitigate potential risks.

Keep in mind that we can alter these aims and goals to suit our own vision and
situation. evaluate and modify them frequently as our handcrafted chocolate business
develops and grows.
Market Analysis:
The demand for high-end, handcrafted chocolates has led to a steady increase in the
premium chocolate sector. The main rivals are well-known artisanal chocolate
companies. We have a competitive advantage since we provide distinctive flavours
and attractive packaging.

• Market Trends: Focus on the demand for handcrafted chocolates and the
variables influencing this desire as you analyse the present developments in
the Indian chocolate sector.

• Market Size and Growth: Give statistics about the size and expected growth
rate of the Indian market for handmade chocolate.

• Competitor Analysis: Determine the main rivals in the handcrafted chocolate

market, their product lines, pricing philosophies, and market share.

• Customer Segmentation: Establish the target market categories and

preferences for handmade chocolates.

Product Roadmap:
1. Next Quarter: Introduce a limited-edition fall and Halloween, winter and
Christmas flavour collection.
2. Following Quarter: Collaborate with a local artist for unique packaging designs.
3. Upcoming Year: Launch a sugar-free and assortment.

Resource Allocation:
I) Budget: Rs3,80,000 allocated for packaging redesign and marketing initiatives.

To guarantee the most efficient use of resources, allocating a budget of Rs3,80,000

for package redesign and marketing campaigns for our handcrafted chocolate start-
up demands meticulous preparation. An explanation of how to allocate this budget is
provided below:

1.Packaging Redesign (Rs2,00,000):

➢ Graphic Design and Packaging Materials (Rs1,00,000):
• Hire a professional graphic designer or design agency to create new packaging
designs that align with our brand's identity and target audience. This might
include logo design, colour scheme, and label design.
• Allocate funds for printing or purchasing new packaging materials, such as
boxes, ribbons, and labels, based on the new design.
➢ Packaging Production (Rs80,000):
• Estimate the cost of producing the new packaging materials, including printing
costs, die-cutting, and any special finishes like embossing or foiling.
➢ Quality Control (Rs20,000):
• Allocate a portion of the budget to ensure the quality of the new packaging.
This might include sample testing and adjustments to meet quality standards.

2.Marketing Initiatives (Rs1,80,000):

➢ Digital Marketing (Rs75,000):

• Invest in online advertising campaigns, such as Google Ads or social media
advertising, to increase brand awareness and drive traffic to our website.
• Allocate funds for search engine optimization (SEO) and pay-per-click (PPC)
advertising campaigns to improve our online visibility.
➢ Social Media Marketing (Rs40,000):
• Hire a social media manager or allocate resources for social media marketing
tools and software.
• Create engaging content, run promotions, and collaborate with influencers to
expand our social media presence.
➢ Content Creation (Rs25,000):
• Produce high-quality content, such as blog posts, videos, and infographics, to
showcase our handmade chocolates and educate our audience about our
products.
• Invest in professional photography and videography services.
➢ In-Person Marketing (Rs30,000):
• Attend local food and craft fairs, pop-up shops, or other relevant events to
promote our chocolates in person.
• Budget for booth fees, promotional materials, and travel expenses if necessary.

➢ Email Marketing and CRM (Customer Relationship Management) (Rs10,000):

• Implement an email marketing strategy to engage with our existing customers
and build customer loyalty.
• Invest in email marketing software to automate campaigns and track results.
➢ Market Research (Rs20,000):
• Set aside funds for market research to understand customer preferences and
market trends.
• Conduct surveys, focus groups, or purchase market research reports.

3.Contingency Fund (Rs20,000):

• Allocate a small portion of the budget as a contingency fund to cover

unexpected expenses or opportunities that may arise during the packaging
redesign and marketing initiatives.
4.Monitoring and Analytics (Rs10,000):
• Invest in analytics tools and software to measure the effectiveness of our
marketing initiatives.
• Allocate funds for periodic performance analysis and adjustments to our
marketing strategies.
5.Project Management (Rs10,000):
• Consider hiring a project manager or using project management software to
ensure the smooth execution of both packaging redesign and marketing
initiatives.
6.Legal and Compliance (Rs5,000):
• Set aside a small budget for legal and compliance expenses related to
marketing and packaging, such as trademark registration or compliance
checks.
By distributing our budget in this way, we can make sure that the packaging redesign
and marketing campaigns get the funding they require to improve the market exposure
and brand image of our handcrafted chocolates. Based on the results of our marketing
efforts and any altering conditions in our business, we are prepared to adapt the
budget as necessary.
II) Team: Skilled Personnel-
i. Chocolatiers: Experienced chocolatiers or chocolate artisans are essential
for crafting high-quality handmade chocolates.
ii. Sales and Marketing Team: Professionals to promote our brand, manage
sales, and build partnerships.
iii. Operations and Production Staff: Workers responsible for making,
packaging, and quality control of chocolates.
iv. Administrative and Support Staff: Personnel for managing finances, HR,
and day-to-day operations.
Risk Assessment:
A thorough risk assessment is crucial for a handmade chocolate startup to identify
potential challenges and develop strategies to mitigate them. Here's a risk
assessment framework that can help you evaluate the risks associated with our
business:

1. Market and Competition Risks:

• Market Saturation: Assess the level of competition in our target market. High
saturation may make it difficult to stand out.
• Changing Consumer Preferences: Monitor trends and anticipate shifts in
consumer preferences for chocolates and flavours.
• Price Sensitivity: Consider the price sensitivity of our target customers and
how it may affect our pricing strategy.

2. Operational Risks:

• Supply Chain Disruptions: Identify potential disruptions in the supply of raw

materials, such as cocoa, due to weather, transportation issues, or geopolitical
factors.
• Quality Control: Ensure consistent quality in our handmade chocolates to
maintain customer trust and satisfaction.
• Production Capacity: Assess whether our production capacity can meet
demand during peak seasons or special occasions.
• Health and Safety Regulations: Understand and comply with food safety
regulations and standards.

3. Financial Risks:

• Cost Fluctuations: Be prepared for fluctuations in the cost of ingredients,

packaging materials, and labour.
• Cash Flow: Monitor cash flow closely, especially during start up phases, to
avoid financial difficulties.
• Unexpected Expenses: Plan for unexpected expenses, such as equipment
breakdowns or legal issues.

4. Marketing and Branding Risks:

• Brand Recognition: Consider the time and effort required to establish a

recognizable and reputable brand.
• Marketing Effectiveness: Evaluate the success of our marketing efforts and
adapt strategies as needed.
Conclusion:
Our handcrafted chocolates have shown excellent performance and received
favourable client response. We can maintain our command of a sizeable portion of
the expanding premium chocolate industry by capitalising on distinctive flavours,
reasonable prices, and appealing packaging.

The stages a product goes through from its launch to its final decline in the market
are referred to as the Product Life Cycle (PLC) in this idea. The product life cycle may
apply to Indian-made chocolates in the following ways:

1) Introduction: The product (handmade chocolates) is released onto the market

during this phase. The goal is to increase potential clients' awareness.
Handmade chocolates can be sold through a variety of venues, including
specialised shops, online marketplaces, and local markets. As the market
becomes aware of the product, first sales are frequently slow.
2) Growth: The demand for handcrafted chocolates starts to increase as
awareness grows and good word-of-mouth begins to circulate. More
customers purchase the product again after trying it once. As more
competitors enter the market at this time, there may be an increase in
marketing and promotional efforts. Rising revenues, greater distribution
options, and perhaps higher profit margins are the hallmarks of the growth
stage.
3) Maturity: The market is now oversaturated with rival businesses selling
handmade chocolates. Although the rate of sales growth slows, the product
nevertheless consistently brings in money. Marketing initiatives are centred on
differentiating the product from rivals and maintaining customers with smaller
profit margins.
4) Decline: The demand for handcrafted chocolates starts to fall throughout the
decline period. The market may be saturated, consumer preferences may have
changed, or there may be more competition from competing products. As sales
and profitability fall, our businesses may have to decide whether to keep
manufacturing the product or not. While some businesses might decide to
leave the market, others might try to develop or reposition the product to
increase its useful life.
It's crucial to remember that the length of each stage can vary significantly
based on a variety of elements, including market trends, consumer preferences,
rivalry, and the success of marketing initiatives. In order to manage a product
effectively, it is necessary to closely evaluate its performance throughout these
stages and adjust tactics as necessary.
 PROMOTION MIX
Promotion mix is a combination of different marketing communication tools or tactics
that a company uses to promote its products or services to its target audience.

It includes various elements, strategies, and tactics that effectively communicate a

product or service’s value and persuade customers to buy.

A balanced and integrated promotion mix helps create a consistent brand message,
maximize reach, engage customers effectively, and drive sales and business growth.

Marketers use a promotional mix to spread their efforts and gain maximum advantage
in a competitive and crowded ecosystem.

Primarily, the promotion mix for a business includes elements such as:

1) Advertising
2) Sales promotions
3) Public relations
4) Personal selling
5) Direct marketing
6) Digital marketing

Types of Promotion:
1. Advertising: It helps to outspread a word or awareness, promote any newly
launched service, goods or an organization. The company uses advertising as a
promotional tool as it reaches a mass of people in a few seconds. An advertisement
is communicated through many traditional media such as radio, television, outdoor
advertising, newspaper or social media. Other contemporary media that support
advertisement are social media, blogs, text messages, and websites. advertising, the
techniques and practices used to bring products, services, opinions, or causes to
public notice for the purpose of persuading the public to respond in a certain way
toward what is advertised. Most advertising involves promoting a good that is for sale,
often through brand marketing, but similar methods are used to encourage people to
drive safely, to support various charities, or to vote for political candidates, among
many other examples. In many countries advertising is the most important source of
income for the media (e.g., newspapers, magazines, or television stations) through
which it is conducted. In the noncommunist world advertising has become a large and
important service industry.

2. Sales Promotion: This utilizes all sorts of a marketing tool to communicate with the
customers and increase sales. However, it is for a limited time, used to expand
customers demand, refresh market demand and enhance product availability. A sales
promotion is a marketing strategy in which a business uses a temporary campaign or
offer to increase interest or demand in its product or service. There are many reasons
why a business may choose to use a sales promotion (or ‘promo’), but the primary
reason is to boost sales. Sales boosts may be needed to reach a quota as a deadline
approaches, or to raise awareness of a new product.

3. Public Relation: Popularly known as PR is exercised to broadcast the information

or message between a company (NGO, Government agency, business), an individual
or a public. A powerful PR campaign can be valuable to the company. Public relations
(PR) is the set of techniques and strategies related to managing how information
about an individual or company is disseminated to the public, and especially the
media. Its primary goals are to disseminate important company news or events,
maintain a brand image, and put a positive spin on negative events to minimize their
fallout. PR may occur in the form of a company press release, news conference,
interviews with journalists, social media posting, or other venues. Every individual or
entity operating in the public eye faces the spread of information about them or their
practices to the public. While public relations are an industry unto itself, any attempt
to portray oneself in a certain way to others can be considered a form of public
relations.

4. Personal Selling: It is the one-on-one interaction between a company representative

(salesperson) and the buyer (customer or prospect). The interaction is intended for
the salesperson to uncover the needs and wants of the prospect and discuss how the
product or service will help to satisfy the customer’s needs and wants. The
salesperson works to develop a relationship with the prospect with the intention of
having them buy the company’s product and become a customer. Personal selling
uses in-person interaction to sell products and services. This type of communication
is carried out by sales representatives, who are the personal connection between a
buyer and a company or a company’s products or services. Salespeople not only
inform potential customers about a company’s product or services, they also use their
power of persuasion and remind customers of product characteristics, service
agreements, prices, deals, and much more. In addition to enhancing customer
relationships, this type of marketing communications tool can be a powerful source
of customer feedback, as well. Later we’ll cover marketing alignment with the sales
process in greater detail. This section focuses on personal selling as one possible tool
in the promotional mix.

Effective personal selling addresses the buyer’s needs and preferences without
making him or her feel pressured. Good salespeople offer advice, information, and
recommendations, and they can help buyers save money and time during the decision
process. The seller should give honest responses to any questions or objections the
buyer has and show that he cares more about meeting the buyer’s needs than making
the sale. Attending to these aspects of personal selling contributes to a strong,
trusting relationship between buyer and seller.
5. Direct Marketing: It is that kind of advertising where the company directly
communicates with its customers. This communication is usually done through
various new approaches like email marketing, text messaging, websites, fliers, online
adverts, promotional letters, catalog distributors, etc. Direct marketing is one of the
most popular and effective marketing tools in order to establish a direct connection
with a target audience. Direct marketing has its appeal, particularly to companies on
a shoestring budget who can't afford to pay for television or internet advertising
campaigns. Especially as the world becomes increasingly connected through digital
platforms, social media becomes an effective way to market to customers.

6. Digital marketing: This includes almost all the elements of the promotion mix.
Starting from the online promotion with pay per click advertising. Direct marketing by
sending newsletters or emails. The term digital marketing refers to the use of digital
channels to market products and services to consumers. This type of marketing
involves the use of websites, mobile devices, social media, search engines, and other
similar channels. Digital marketing became popular with the advent of the internet in
the 1990s. Digital marketing involves some of the same principles as traditional
marketing and is often considered an additional way for companies to approach
consumers and understand their behavior. Companies often combine traditional and
digital marketing techniques in their strategies. But digital marketing comes with its
own set of challenges, including implicit bias.

Key Points of Promotion:

• It is a communication tool that incorporates all the elements used to spread
awareness and convince customers to buy goods and services.
• It is applicable only for short term sales.
• It is one of the variables of the marketing mix.
• The effect of promotion is short term.
• The result or outcome of the promotion is immediate.
• It is an economic marketing tool as compared to advertising.
• It can be used for all sorts of businesses irrespective of the size, brand of a
company.

The selection and combination of these elements to create the perfect marketing mix
depend on factors such as the target audience, product characteristics, marketing
objectives, budget, and competitive landscape.

Steps used for implying promotion mix for divine confections:

1. Identify your target audience: After analyzing the choices of various age groups we
found out that Chocolate consumption is particularly high among the supposedly
more health-conscious generation: the 25 to 34-year-olds. In this age group, a
whopping 34% say they eat chocolate every day. By contrast, only 8% of 65-plus
consumers replicate that daily habit. Consumers with young children are another
driver of frequency. A third of shoppers with children under the age of two eat
chocolate on a daily basis – a figure that declines as children get older. Those without
children are the least frequent consumers, with 15% eating chocolate every day
compared with 31% of parents overall.

2. Brand message: Our brand message is, “We melt your heart, not your wallet.'' We
mainly focus on the delicacies of the chocolate and its health benefits and social
benefits such as for gifting, celebrating occasions etc.

3. Budget allotted for Promotion Mix: We then allocated the budget for our promotion
strategy to achieve our promotional goals which mainly leads to maximizing the
profits and increasing the number of sales.

4. Channels of promotion: Our channels of promotion will mainly be advertising on a

smaller level and social media marketing and public relations. For example, to target
Gen Z and millennials which are our target audience, we will opt for promotion mix
elements that support social media interactions and improve public relations by
collaborating with NGOs.
 Our Promotion Mix Strategy
1. Social media marketing:

a) Social Media advertising: We will advertise our handmade chocolate business

in local newspapers and food blogs, which would help us reach out to more
people. We will use Instagram and Facebook to showcase our handmade
chocolates and post pictures of our unique and delicious chocolates with links
to our website, which will allow consumers to directly place an order.
Collaborate with food bloggers, influencers, and local tastemakers who have a
devoted following and offer them special discounts or free samples in
exchange for reviews, mentions, or sponsored posts to increase visibility and
reach a wider audience.
b) Giveaways: Using the social media handles, we will be hosting contests and
giveaways to attract new customers and give them a chance to taste our
product by winning and winning their loyalty.

2. Public Relations and Collaboration: We will Offer our handmade chocolates as a

dessert option for private events such as weddings, corporate events, and parties.
Develop partnerships with local businesses like hotels, event planners, and corporate
gifting companies to create customized gift boxes featuring our handmade
chocolates. These can be offered as corporate gifts, wedding favors, or special event
giveaways.

As a part of our PR strategy, we will connect with NGOs who help people with
disabilities in the age of 6 to 35 years of age where we will be giving free samples to
the people who can enjoy our delicacies and give their feedback for our chocolates.
3. Customization: Another promotion strategy we will be using is giving customization
options to the customers, for example- Raksha Bandhan special customization offer
and then we will be taking help from the NGOs who help people with disabilities and
provide them with an opportunity of employment.
4. Discount and Offers: We have an exclusive Wednesday offer where our customers
would be able to order our products at 50% off every Wednesday from 10am to 3pm

The purpose behind this exclusive day specific offer is to increase the sale and brand
awareness.
 PLACE MIX
Place mix or distribution mix is an arrangement of channels, both physical and non-
physical, through which the product is made available to customers for purchase. It is
the set of decisions a company undertakes to make the product accessible to its
target customers conveniently in the most cost-efficient manner. In layman terms, the
place is all about decisions regarding the distribution channels and physical
movement of goods. It’s about making available the right product with the right
approach, in the right spot, at the right time, in the right form, and to the right
customers. Thus, it aims to reduce the gap between the producers and the customers
by concentrating on the location of the business, the destination market, connecting
both, and transporting them at the end of the day.

Components of Place Mix:

• Channels of distribution and
• Physical distribution.

1. Channels of distribution: Channels of distribution are the routes through which

goods move from the producer to consumers. A firm has to decide whether to sell
directly or to sell through middlemen. The number and type of middlemen have also
to be decided.

2. Physical distribution: Physical distribution includes all those activities which are
involved in moving products or services from manufacturers to consumers.

Place Mix for Divine Confections:

1. E-Commerce Website: We will Set up an e-commerce website for our handmade
chocolate business which would allow our customers to place orders online. Create a
user-friendly and visually appealing e-commerce website where customers can easily
browse, select, and order our handmade chocolates. Offer clear product descriptions
and high-quality images to help customers make informed decisions.

2. Pop-up events: We will organize pop-up events in malls and exhibitions in order to
showcase our chocolates to potential customers and give them free samples so they
can make a buying decision on the basis of their taste and preference and consider
their constructive criticism and make our product better. Participate in local food fairs,
farmers' markets, and community events to showcase and offer samples of our
handmade chocolates. This will help create buzz, generate interest, and allow
potential customers to taste and experience the quality of our products.
3. Home delivery: Offer home delivery services to our customers. Partner with
companies that provide delivery services to make it easy and convenient for
customers to enjoy our handmade chocolates. Provide a reliable and efficient home
delivery service, especially for local customers, to offer the convenience of receiving
our handmade chocolates at their doorstep.

4. Channels of distribution: The simplest and the shortest mode of distribution is

direct distribution, wherein the goods are directly available by the manufacturer to the
customer, without involving any intermediary. This is a zero-level channel. We will be
using a zero-level channel of distribution for divine confections because as a supplier
of food and a new company this type of channel is the best for our business.

By implementing a well-rounded promotion and place mix strategy, we can effectively

promote our handmade chocolate business, increase brand visibility, and gain a
competitive advantage in the market.
 PRICE MIX
Price may be defined as the amount of money paid by a buyer to the seller in
consideration of the purchase of a product or a service.

Price is an important element of the marketing mix and affects other components of
the marketing mix. The price differs for wholesalers, retailers, and consumers. The
selling price of the product is decided by considering factors such as profit margin,
product cost, demand in the market, extent of competition, etc.

Price covers the actual amount the end user is expected to pay for a product. How a
product is priced will directly affect how it sells. This is linked to the perceived value
of the product to the consumers. If a product is priced higher or lower than its
perceived value, then it will not sell. This is why it is important to understand how a
customer sees what you are selling. If there is a positive customer value then a
product may be successfully priced higher than its objective monetary value in the
eyes of the customers. Then it may need to be underpriced to sell. Price may also be
affected by distribution plans' value chain costs and markups and how competitors
price a rival product.

We need to be very careful while fixing the pricing of products and services due to the
following reasons:

• No product or service can be launched without a price tag.

• Price regulates the demand for a product. An increase in price leads to a
decrease in demand and vice versa.
• Price is used as an effective competitive weapon.
• Price affects the revenue and profit of a firm.

Price Fixation
Fixation of price is an important exercise for every firm. There are some factors that
affect the fixation of price. These factors may be stated as follows:

• Product cost.
• The utility and demand.
• The extent of competition in the market.
• Government and legal regulations.
• Pricing objectives.
• Marketing methods used.

1. Product Cost: The product cost sets the minimum price at which the products may
be sold. This minimum price is called as floor price. At times when a firm Introduces
a new product it may launch the product at a price less than its cost but in the long
run, every firm aims to earn a certain margin of profit. It includes fixed-cost, variable-
cost, and semi-variable-cost for the product.

• Fixed cost is the cost that does not change with a change in production level.
It remains constant whether 1000 units or 10 units are produced. Example-
Rent, salaries, etc.
• Variable cost is the cost that changes with the change in production level. It is
directly proportional to the level of production. Therefore, variable costs will be
incurred only if there is a production. If there is no production there will not be
any variable cost Example- Raw materials, petrol expenses, Labor cost, etc.
• Semi-variable cost is the cost that varies with the level of production activity
but is not directly proportional to the production activity.
• Example- Telephone expenses, salesman's incentives, etc.

2. The Utility and Demand: The price must be fixed based on the utility of the product
and the intensity of demand. The maximum price a buyer is willing to pay is the value
of the utility of a product and the minimum price a seller is willing to offer is the cost
of the product. Therefore, the price must reflect the interest of both the buyer and
seller and should be fixed on the basis of the utility of the product and the intensity of
demand.

3.Extent of Competition in the Market: The product cost is determined by the nature
and degree of competition found in the market. If the competition is lesser then the
price is high and if more competition is there then the price is on the lower side.
Therefore, while fixing the price of the product the firm must consider competitor's
prices and their anticipated reactions.

4. Government Regulations: and Legal The government may interfere to regulate

prices by declaring a product as an essential product to protect the interest of society
at large. Therefore, a firm has to fix the price of its product according to the regulations
of the government.

5. Pricing Objectives: Each firm has its own set of objectives guiding the fixation of
prices to achieve organizational goals and objectives like-

• Price Maximization
• Obtaining Market Share Leadership
• Surviving in a Competitive Market
• Attaining Product Quality Leadership

The price of a product is set by a firm based on its objectives and these objectives are
market share product competition, quality, etc.

6. Marketing Method Used: Price fixation also depends on the other marketing
elements used. If a firm provides unique services, then it can charge a higher price
than its competitors.
 Pricing Of Divine Confections
Type of Chocolates:

1) Milk chocolate
2) Dark chocolate
3) Fruit and nut chocolate

Variants Price to Price to Price to

Wholesaler Retailer Consumer
Milk Chocolate 50 75 100
Dark Chocolate 75 105 125
Fruit and nut 90 130 150
Chocolate

We have kept the range low so that every state of society can buy it. Every consumer
wants to have a product with low cost and the best quality. And as a newcomer, our
pricing strategy is to introduce our product in the market at lower prices. As we gain
and capture customers' preferences, and demands, we will produce and provide more
efficient and premium-quality chocolates.
 FUNDING
In the world of chocolates, effective marketing is essential for success. It delves into
the importance of funding for marketing strategies in the chocolate industry. Funding
is the backbone of successful chocolate marketing, smart allocation, measuring
results, and being prepared are key to most of the marketing budget.

Ways to Fund Startups:

1. Self-funding or Bootstrapping:

Bootstrapping is a funding strategy where we start and grow our business with
minimal external financial assistance, relying primarily on our resources, skills, and
revenue generated by the business itself. Here's how bootstrapping could work for our
chocolate business startup:

• Personal Savings: Begin by using our savings to cover initial expenses such as
purchasing ingredients, equipment, and licenses. This allows us to maintain full
control of our business.
• Home Kitchen: If possible, we can start making chocolates from our kitchen or
a small rented space rather than investing in a costly commercial kitchen space
initially. This reduces overhead costs.
• Lean Operations: We can purchase only essential equipment and ingredients,
and avoid unnecessary expenses. Focus on producing high-quality chocolates
that can attract customers.
• Online Sales: We can set up an online store or use existing e-commerce
platforms to sell our chocolates. This reduces the need for a physical
storefront, saving on rent and utilities.
• Market Research: Investing time in understanding our target market, identifying
trends, and creating a unique selling proposition for our chocolates. Effective
marketing can be done on a budget through social media and digital marketing
efforts.
• Incremental Growth: Instead of trying to produce a wide variety of chocolates
from the start, we can begin with a few signature products and gradually
expand our product line as our business grows.
• Customer Feedback: Will listen to customer feedback and use it to improve our
products and marketing strategies. Happy customers can become our
advocates and help with word-of-mouth marketing.
• Reinvest Profits: As our chocolate business generates revenue, we will reinvest
the profits back into the business. This can be used to scale up production,
improve packaging, or expand our reach to new markets.
 • Partnerships: Consider forming partnerships with local businesses or
participating in events to showcase our chocolates. This can help us to gain
exposure without significant marketing costs.
• Financial Discipline: Maintain a strict financial discipline by tracking expenses
and revenue meticulously. This will help us to make informed decisions and
ensure we stay within our budget.

2. Crowdfunding:

In this entrepreneur gives details of his business at crowdfunding platforms. Example

- Goals of a business, plans for making profits, etc.

If the crowdfunding likes our business model, then they pledge to support his business
and also donate funds. This is a process by which funds are raised at minimal
amounts from many people to invest in a startup. These days, crowdfunding is done
through the internet, or social media is put to its best use.

Crowdfunding options for our handmade chocolate business are as follows:

• Solid Business Plan: Before seeking crowdfunding, we need to develop a

detailed business plan that outlines our chocolate business concept, target
market, production process, marketing strategy, and financial projections.
• Right Platform: Selecting a crowdfunding platform that aligns with our business
type. Kickstarter, Indiegogo, and GoFundMe are popular options for creative
and product-based projects.
• Clear Funding Goals: Determining how much money is needed to start or
expand our handmade chocolate business. The funding goal should be realistic
and cover essential expenses like equipment, ingredients, packaging,
marketing, and initial production.
• Crafting an Engaging Campaign: Will create a compelling crowdfunding
campaign page with high-quality images and a video that showcases our
chocolates and explains our story and vision. We will be transparent about our
business and what backers can expect in return for their support.
• Offering Attractive Rewards: Depending on the crowdfunding platform, We can
offer rewards to backers. For a chocolate business, this might include sample
chocolates, exclusive flavors, or special packaging for different funding tiers.
• Market Campaign: We can promote our crowdfunding campaign extensively
through social media, email newsletters, and our network.
• Keep Supporters Informed: Throughout the campaign, we can provide regular
updates to backers on our progress and any developments. Transparency and
communication are key to building trust.
• Manage Funds Wisely: Once our campaign is successful, we will manage the
funds prudently. Allocating them according to our business plan and fulfilling
our promises to backers on time.
3. Government programs that offer startup capital:

The Government of India has launched a 10,000 Crore Startup Fund in the Uthe Union
budget 2014-15 to improve the startup ecosystem in India. To boost innovative
product companies, the government has launched the ‘Bank of Ideas and Innovations’
program.

Government-backed ‘Pradhan Mantri Micro Units Development and Refinance Agency

Limited (MUDRA) starts with an initial corpus of Rs. 20,000 crores to extend benefits
to around 10 lakh SMEs. We are supposed to submit our business plan and once
approved, the loan gets sanctioned. We can get a MUDRA Card, which is like a credit
card, which can be used to purchase raw materials, other expenses, etc. Shishu,
Kishor, and Tarun are three categories of loans available under the promising scheme.

If our startup or small business needs funding of more than 10 lakhs we can also apply
for the Credit Guarantee scheme for micro & small enterprises. In this scheme, the
upper capital limit is 5 cr which was recently updated from 2 cr. Just like MUDRA loans
we need to submit our business plan once approved, the loan gets sanctioned. This is
a very effective loan scheme for big capital loans.

Also, different states have come up with different programs like Kerala State Self
Entrepreneur Development Mission (KSSEDM), Maharashtra Centre for
Entrepreneurship Development, Rajasthan Startup Fest, etc. to encourage small
businesses.

SIDBI – Small Industries Development Bank of India also offers business loans to the
MSME sector. There is a small business lending fund and a dedicated portal for
Government grants available for local businesses. If we comply with the eligibility
criteria, Government grants as a funding option could be one of the best.
 PACKAGING
The wrapping material around a consumer item that serves to contain, identify, describe,
protect, display, promote and otherwise make the product marketable and keep it clean.
Package design may affect everything from breakage rates in shipment to whether stores will
be willing to stock it.

Types of Packaging
There are three levels of packaging.

1. Primary Packaging: It refers to the product's immediate container. Some products are sold
in their primary packaging only. Examples- soft drinks, juices, vegetables, matchboxes,
toothpaste tubes, etc.

2. Secondary Packaging: It refers to additional layers of protection that are kept or provided
till the product is ready to use. The secondary packaging is used either for the safety of a
product or to make it more attractive. Example- Carton box of toothpaste

3. Transportation Packaging: It refers to a box containing small units of products to carry

from one place to another easily. For packaging components necessary for storage,
identification, or transportation of products. For example- each unit of product may be
packed in boxes containing 20, 50, or 100 units for easy transportation or products that
require low temperatures may be packed in ice boxes before being sent to customers.

Importance Of Packaging for The Buyer

• Identification: Packaging and labelling help the customers identify the product and
differentiate it from other products in the market.
• Safety: It also protects the consumer from the dangers that the product comes with.

Importance Of Packaging for The Seller

• Distribution: Good packaging makes it possible for the seller to transport the product
from the manufacturing unit to the final selling point and then to the customer. The
seller uses different packaging for the same – transport packaging to transport the
products and consumer packaging to aid the consumer in consuming the product.
• Storage: Warehousing comes with its own risks of product spoilage, spillage, and
mishandling. Proper packaging helps the seller store and assort the products better.
• Promotion: Packaging forms a vital marketing element that the brand uses to
differentiate the product using attractive, colorful, and visually appealing packages
and inform the buyer about the product’s performance, features, and benefits.
• Safety: Good packaging aids in product safety before it reaches the final consumer.
Difference Between Packing and Packaging
• While considered as same, packing and packaging are not something that one
can use interchangeably. Packing is a subset of packaging that refers to
wrapping up the product and containing it in a case or wrapper to protect it and
aid in handling.
• On the other hand, packaging is the process of designing and developing the
container of the offering that protects it and helps customers identify and
differentiate in the market.
• In simple terms, packing just involves wrapping the product, while packaging
also consists of the branding aspect.
Divine Confections Product Packaging
• Our packaging will be secondary-level packaging as it will add a level of
resistance. The chocolate will not melt fast. Consumers becoming conscious
and prefer well-wrapped chocolates. Our chocolate is designed to attract kids
as well as adults from the first glance. It is wrapped in various colors that
substitute the primary packaging. Further, this chocolate undergoes
transportation packaging for convenient transport to respective wholesalers.
• Sustainability Benefits - sustainability goals is our priority which is why we offer
a variety of eco-friendly solutions. All of our paper selections are biodegradable
and curbside recyclable, and we have a range of options for recycled content
and glassine paper as an alternative to plastics, films and foils.
 LABELLING
Labeling refers to a small slip put on a product providing all the product-related
information like the manufacturer's address, quantity and contents, manufacturing
date, expiry date, instructions to use, etc. to inform the customers.

Functions Of Labelling
1. Describe the product and specify its contents: Labels describe the product, its
contents, usage, cautions in use, etc. Example- the label will specify the date of
manufacturing, expiry date, quantity, features, how to use, lot no, ingredients,
manufacturers address, customer help line no. etc.

2. Identification of the product or brand: Labels help to identify the product or brand
from other similar products of different manufacturers.

3. Grading of products: Labels help to grade the products into different categories
depending on the quality and features of the products. Example - labels on Pantene
shampoo specify if they are for dry hairs, oily or normal hair.

4. Help in the promotion of products: Information and attractive labels attract

potential customers and persuade them to purchase the product. Many
manufacturers have social message, tag lines or promotional schemes mentioned on
labels which attract potential customers. 20% extra, free toy with kinder joy chocolate,
buy one get one free, are some examples mentioned on label which attract customers
to purchase products.

5. Providing information required by law: Labels must include all the information
required by law Example - In accordance to the provisions of law cigarette
manufacturers mention statutory warning 'smoking is injurious to health' on their
labels.

6. Acts as a silent salesman: It provides all the important information to the buyer thus
acts as a silent salesman. To conclude labels are an important means to
communicate important product information with the potential customers and
promote their sales.
 Divine Confections Branding and
Labelling
1. Elegant Artisanal Aesthetics: Emphasize the artistry and care that went into making
our custom chocolates. Make use of sophisticated designs that are lovely and artistic.
Use elaborate designs, hand-drawn drawings, and rich colour schemes to reflect the
high calibre of our chocolates.

3. Natural and Organic Look: By choosing a simple, natural design, we can draw
attention to the natural ingredients that go into our chocolates. We use natural
textures, earthy hues, and simple font to evoke the concept of healthy, handmade
sweets.

4. Personalized Touch: Including a personalised feature, such as labels that are

editable and contain the names or messages of the clients. This forges a potent
emotional bond and gives the chocolates a special gift-like quality.

6. Luxurious Gold Accents: We use gold highlights or foiling in our branding to evoke
a feeling of indulgence and luxury. The package is made more opulent and of higher
quality with the addition of gold.

7. Sustainable Packaging: By utilising eco-friendly materials and emphasising our

efforts to minimise our influence on the environment, we can demonstrate our
dedication to sustainability. Include "green" design components and make our brand's
commitment to the environment evident.

8. Seasonal Themes: Adapt our branding and labelling to the various seasons and
events. Consider using festive aspects for occasions like Christmas or Diwali, for
example.