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  • Essay / A political aspect of the macro environment regarding...

    A political aspect of the macro environment regarding the chocolate market in New Zealand is the policy regarding the importation of ingredients needed to make chocolate. Cocoa beans are on the list of prohibited or restricted imports under the New Zealand Customs and Excise Act 1996 (Legislation.govt.nz, 2015). This is an important market factor for Whittakers as a brand, because as they produce all their chocolate from imported cocoa beans in their New Zealand factory, they must comply with these restrictions and pay the tax appropriate on the importation of their cocoa beans. The changes to this legislation pose a threat to the Whittakers, as a potential increase in the tax on cocoa beans will mean the total cost of producing the chocolate will be higher for the company, meaning it may have to -be increase the retail price of its products. This could cause price-conscious consumers to look elsewhere for products that are better suited to them financially and lose sales to the Whittakers. As demand for cocoa increases globally, the price of cocoa is also increasing at a rapid rate, as cocoa farmers in Africa and South America struggle to meet demand, which constitutes an extremely important aspect of the chocolate market macroenvironment. Many factors contribute to the supply problem: many cocoa farmers in Africa, particularly in Ivory Coast (the largest cocoa-producing country in the world), are underpaid and their share of profits from chocolate products is increasing, with cocoa producers in West Africa seeing their incomes increase. on average 3.5% to 6.4% of the total retail value of products (The Guardian, 2013). This results in less productive workers and also results in fewer emerging cocoa farmers, as it is often just a middle of paper......it has the potential to increase sales. for the Whittakers, as consumers want to experience this smoother, more refined chocolate. It's becoming increasingly important for consumers to know that the products they buy are made in an environmentally friendly way, and a big part of that is supporting chocolate companies that don't do this. use palm oil in their production. Palm oil production is considered one of the largest industries responsible for deforestation globally, posing a threat to wildlife, and consumers were particularly aware of this in 2010 when Cadbury replaced the cocoa butter with palm oil. This increased consumer awareness is an opportunity for Whittakers, as the brand is committed to not using palm oil, making Whittakers attractive to consumers on an environmentally friendly level and perhaps increasing sales of the company..