Barbello hand crafted Irish Artisan Chocolates.

82 Pages·2015·1.17 MB·English

by  Eoghan Ohearcain

Barbello hand crafted

Irish A rtisan
Chocolates.

Applied Market Research
Suzan Ryan

Lorcan Bree S00016452
Leona Flynn S00127965
Eóghan ó hEarcáin S00078937
Fatema Teitali S00158502

24-4-15
Table of Contents

Executive Summary ................................................................................................................................ 4
Introduction ............................................................................................................................................. 5
Research Objectives ................................................................................................................................ 6
Industry Analysis .................................................................................................................................... 7
Trends Taste’s and Flavours ................................................................................................................... 9
Trends ................................................................................................................................................. 9
Economy ......................................................................................................................................... 9
Occasions ...................................................................................................................................... 10
Health ............................................................................................................................................ 11
Tastes .................................................................................................................................................... 14
Health ............................................................................................................................................ 14
Lack of Cocoa ............................................................................................................................... 15
Future Flavours ................................................................................................................................. 15
Competitor Analysis ............................................................................................................................. 16
International Competitors ..................................................................................................................... 16
Butlers Chocolates ............................................................................................................................ 16
Product .......................................................................................................................................... 16
Price .............................................................................................................................................. 17
Place .............................................................................................................................................. 18
Promotion ...................................................................................................................................... 19
Lily o Brien’s .................................................................................................................................... 20
Product .......................................................................................................................................... 20
Price .............................................................................................................................................. 21
Place .............................................................................................................................................. 21
Promotion ...................................................................................................................................... 22
Lir chocolates .................................................................................................................................... 23
Product .......................................................................................................................................... 23
Price .............................................................................................................................................. 24
Place .............................................................................................................................................. 25
Promotion ...................................................................................................................................... 25
Nationwide Competitors ....................................................................................................................... 26
Wilde Irish chocolates ....................................................................................................................... 26
Barbelo handmade Irish Chocolate 1
Product .......................................................................................................................................... 26
Price .............................................................................................................................................. 27
Place .............................................................................................................................................. 28
Promotion ...................................................................................................................................... 28
Skellig's Chocolate ............................................................................................................................ 29
Product .......................................................................................................................................... 29
Price .............................................................................................................................................. 30
Place .............................................................................................................................................. 31
Promotion ...................................................................................................................................... 32
Local Competitor .................................................................................................................................. 33
Roscommon chocolates .................................................................................................................... 33
Product .......................................................................................................................................... 33
Price .............................................................................................................................................. 34
Place .............................................................................................................................................. 35
Promotion ...................................................................................................................................... 35
Primary Research .................................................................................................................................. 36
Methodology ..................................................................................................................................... 36
The Survey ........................................................................................................................................ 37
Mission Vision ...................................................................................................................................... 39
Mission .............................................................................................................................................. 39
Vision ................................................................................................................................................ 39
Segmentation, Targeting and Positioning ............................................................................................. 40
Segmentation..................................................................................................................................... 40
Targeting ........................................................................................................................................... 41
Positioning ........................................................................................................................................ 41
Marketing Mix ...................................................................................................................................... 42
Secondary .......................................................................................................................................... 42
Product .......................................................................................................................................... 42
Price .............................................................................................................................................. 43
Promotion ...................................................................................................................................... 43
Place .............................................................................................................................................. 44
Primary .............................................................................................................................................. 45
Product .......................................................................................................................................... 45
Promotion ...................................................................................................................................... 45
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Place .............................................................................................................................................. 45
Findings ................................................................................................................................................ 46
Respondent’s Profile ....................................................................................................................... 46
(Figure 3.1) ....................................................................................................................................... 47
(Figure 3.2)....................................................................................................................................... 47
Customer behaviour ........................................................................................................................... 51
(Figure 3.6)....................................................................................................................................... 52
(Figure 3.7)....................................................................................................................................... 53
(Figure 3.8) ....................................................................................................................................... 53
(Figure 3.9)....................................................................................................................................... 54
(Figure 3.11)..................................................................................................................................... 56
Taste’s and Flavours ........................................................................................................................... 58
(Figure 3.15)..................................................................................................................................... 60
(Figure 3.17)..................................................................................................................................... 62
(Figure 3.18)..................................................................................................................................... 62
Spend ................................................................................................................................................ 65
(Figure 3.24 ...................................................................................................................................... 68
Recommendations ................................................................................................................................. 70
Limitations ............................................................................................................................................ 72
Conclusion ............................................................................................................................................ 73
Bibliography ......................................................................................................................................... 75
Appendices ............................................................................................................................................ 78
Apendix1.1 Survey ........................................................................................................................... 78

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Executive Summary
The report was compiled on behalf of Barbelo Irish handmade chocolates to gather and
analyse primary and secondary research in the aim of helping them to grow their company to
a medium sized enterprise. This research will give the reader a broad look of the chocolate
confectionary industry in Ireland and the fact that it is experiencing more growth than any
other market. Expected to be worth in the region of €600 million to the Irish economy and is
expected to grow another 5% in the following two years. This report will focus primarily on
the artisan chocolate sector which is in high demand at the moment. The report aims to show
clearly what Barbelo must do in order to capitalize on this growth. For the benefit of new
product development the report has a detailed analysis of the trends, tastes and flavours that
are at present popular and estimate what will be the trendy new flavours of the future.
A competitive analysis will show the reader just how large of a market the confectionary
market is and show how competitive it is with new company joining the market each week.
Primary research was carried out in the form of a in depth survey in order to establish what
people perceptions were towards artisan chocolate and what they thought of the Barbelo
brand. From conducting the report detailed recommendations are given and it is the strong
belief of the research team that if these recommendations are followed that Barbelo will be
rewarded with every success in the near and distant future.

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Introduction
Barbello Handmade Irish Chocolates were set up by Theresa Mc Morow in 2013. Set up in
her home town of Manor Hamilton Theresa hand crafts her chocolate using traditional skills
and techniques from her kitchen at home. The company started life as Mc Morrow
Chocolates in 2013 and has since rebranded to Barbello handmade Irish chocolates. The
name Barbello means female angel or angel of goodness. Theresa sells her chocolates
through super value and Kate’s Kitchen a small artisan coffee shop Located in Sligo town.
Kate’s kitchen sell a wide variety of hand crafted artisan products from chocolates to sauces
and jams all handmade.
Barbelo Handmade Irish chocolates can also be found in many other smaller outlets around
the geographical area of where it’s produced. Barbello Handmade Irish Chocolates have
received credit from bodies such as the Food Academy the Leitrim county enterprise board
where they have picked up such awards such as best new enterprise a Bord Bia award. On the
verge of securing a large contract from super value Tereasa has acquired the help of market
research to help find ways of promoting her brand and to find out how the public perceive the
Barbelo brand.
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Research Objectives
 To carry out an industry analysis on the artisan chocolate sector.
 To investigate Barbelo Handmade Irish Chocolates competitors and analyse their
strengths and weaknesses.
 To determine a vision and mission statement for Barbelo Handmade Irish Chocolates.
 To determine the target, segment and position of Barbelo Handmade Irish Chocolates
in the Irish confectionary market.
 To identify the consumers trends tastes and flavours in the Irish market.
 To develop in particular the position of Barbelo Handmade Irish Chocolates
marketing mix.
 To find out what consumers perceptions are towards the brand name and packaging
of Barbello Handmade Irish Chocolates.

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Industry Analysis
After the collapse in the property market and while Ireland saw its worst recession in thirty
years new markets and new opportunities started emerging. The biggest growth in any market
since the recession is the Irish food market. Ireland has always been famous for its beef
exports and its dairy produce but is now seeing a new segment of the food market emerging.
The artisan craft food industry has taken Ireland by storm in recent years with products
ranging from bread jams beers and chocolate. The chocolate confectionary market stayed
strong throughout the recession with an estimated worth of over €600 million. (Chocolate
confectionery Ireland 2013) People saw it as affordable luxury which they weren’t prepared
to give up.
The chocolate confectionary market in Ireland is worth an estimated €693 million and is
expected to grow another 5% by the year 2018. The Irish market is broken up in two parts
with 75% of the market in the republic of Ireland and 25% of the market in Northern Ireland.
This makes Ireland a unique market for selling as small companies can export their product
into Northern Ireland at very little cost. The biggest purchasers of chocolates in Ireland are
mostly female with 91% of women buying chocolates and 87% of men buying chocolates.
Irish buying habits have changed dramatically since recession with 83% of them purchasing
local products and helping support local business. More and more people are buying
multipacks which in turn are seeing a rise in volume sales outpacing value sales. Volume
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growth is expected to outpace value growth by 2% in the years to come. (Chocolate
confectionery Ireland 2013)
Irish people are one of the largest consumers of chocolates in the world. In the late 20th
century when the last recession hit the Irish people when they had a few pound put together
would often turn to a pint of stout to help cheer them up and let them forget about the hard
time. Now a days people are quicker to turn to purchase their favourite chocolate bar rather
than a pint of beer to help cheer them up. This is shown in the decline in stout sales in Ireland
but the steady increase in chocolate purchases and consumption. Irish people consume 11.2kg
per head of population in a giving year. This figure is set to rise dramatically as the chocolate
industry is in a growth stage. (Chocolate oh sweet chocolate the bitter truth, The Irish
Examiner 2013)

The trends in chocolate are forever changing as the market very seasonal with the peak of
sales occurring around Christmas time and also in February and Easter. Milk chocolate is the
most popular product on the Irish market with white chocolate being the least popular.
However during Christmas white chocolate is most popular purchase amongst Irish
consumers. In the last several years with an increased understanding of healthy diets this has
shown an increase in the sale of products such as sugar free, fat free and gluten free. Dark
chocolate has also seen a rise in sales amongst the health conscious consumer. Fair trade is
another fast growing segment as consumers become more ethically aware of where their
products were produced. (Bord Bia 2010)

The reason artisan foods are becoming so popular are that many consumers wishing to return
to their roots and become reconnected with their communities again. They wish to put a face
and a name to the products that which they buy. The Irish consumer is slowly starting to turn
away from the large mass produced brands and looking at smaller brands. Small brands seem
more local and therefore people trust them more also. Irish consumers are now looking for
the story behind the product where it came from who made it and what ingredients were used.
Traceability is a huge issue for consumer of the twenty first century. The advantage of buying
from a local producer is that you know exactly where the product’s origins are from. The
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trend is all about building a relationship with the product, brand and the producer. The
consumer is now becoming more health conscious and more aware of what they consume and
take into their bodies. Consumer’s now put a strong emphasis on products with organic
ingredients product that have less salt and sugar and products that hold no artificial flavours.
(Bórd Bia)
The cost of producing chocolate is becoming rather expensive mainly due to the cost of
purchasing cocoa. This has created growth in market value. With production costs on the rise
the consumer may see a rise in the price of their favourite chocolate in the near future. (The
Guardian 2014) As is the case the margin between artisan chocolate’s and mass produced
chocolate products has narrowed slightly and therefore consumers can see the value of
spending a little bit extra and purchase a more luxury hand crafted product.

Trends Taste’s and Flavours
Trends

Chocolate is popular for individual consumption gift giving and cooking. According to Euro
monitor the chocolate industry enjoyed a “6% rise in revenues in 2014, delivering record
global revenues of US$117bn” that converted into euros would be around €104bn. This
global statistic provides the knowledge of importance of chocolates trends, tastes and
flavours now and in the future, especially when it comes to Barbelo Handmade Irish
Chocolate.

Trends within the chocolate industry at the moment are driving growth and product
innovation in chocolate, Franchise Help in 2014 stated that “product innovation in 2010
brought a 16% increase in new product releases over 2009.” The repositioning of increasing
disposable incomes, public policies, regulations regarding health and our global community
is the reasons behind this growth in innovation.

Economy

Artisan and craft chocolates have shown strong growth over a long period. During the
recession, there had been a shift away from premium items due to pricing, but as Ireland’s
economy has continued to recover, sales of premium items have taken the lead again
according to franchise help. Artisan chocolate can be baked locally, come from a renowned
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