Business introduce and market analysis of cookie 1. Company Description Our company —Cookie Corporation will be established in 2013 in Jimei, with the registered fund of 100,000. 00RMB. We decide to start this business firstly because, the partners, among 5 of us, 2 are girls, who are cookie lovers and the boys hopes to establish a business when they graduate. We hope to make the specific flavor cookies to different people. Most importantly, because we have learned through World Food Programme that one in seven people will go to bed hungry tonight.
In the world, 925 million people do not have enough to eat and 98 percent of them live in developing countries. Many mothers helplessly see their kids dying without something to eat in Africa. We thought we were all grown-ups and have the ability to do something that can really make a small part of this world different. Besides, Our company is projected to be a professional supplier of cookies. We will devote to researching and developing the specific flavor cookies to meet different needs of our customer . We run a factory equipped with a manufacturing line and stores selling our cookies.
Our motto is “let cookies colors your life and make you happy and healthy”. In a hope of developing new-brand and healthy cookies, we will adopt the most-advanced technology and set up a professional research team. In the first half year of our establishment, we will focus on satisfying the needs of our local school students in Jimei. 2. Market Analysis Overall outlook for the industry (size and maturity) In recent years, cookie industry has kept a rapid growing momentum. According to the State Statistic Bureau, there are about 1,595 cookie manufacturing enterprises which are QS certified.
The annual production and sales volume of cookie industry have increased by 20% in the past 5 years. The number of scaled enterprises increases, while small-and medium size decreases due to fierce competition. Besides, melamine scandal has profound effects on this industry. Threats and opportunities. Most of the small and medium size cookie producer were either broken down or merged. Foreign-funded enterprises, Hong Kong, Taiwan-funded enterprises take in the place of high-end cookie market. However, private owned businesses are still the main force in the middle and low-end cookie market.
There are many threats cookie industry is faced with. Firstly, Quality control. Quality problems such as oil rancidity, foreign matters, excessive sulfur dioxide, misuse of additives and microorganism exceeding standard are the ubiquity in this industry. Secondly, the inappropriate use of labeling on the packages. Some additive are not stated in the label, while in true manufacturing additive is used. And some supplier hasn’t identified the product type on the label. Thirdly, the raw material price and labor source is rising.
Finally the manufacturing requires technological creation ,however, many small and medium size enterprise are too small to adopt the creative measures. Distinguishing characteristics According to food consumers association, adults from 18 – 44 enjoy trying new types, flavors and brands of cookies and are a key category to target. And little kids that don’t like regular meals also like cookies. So, cookie major customer group are kids, university students, middle-ages. We decide our target market at universities. Firstly begins at Jimei Campus.
Students enjoy trying new types, flavors and brands of cookies, even if the different shape cookies and colorful cookies. However, there is few producer can provides those different-shaped and colorful, brand new cookies. So our customer will be in the campus of every city in China. During the summer and winter holidays, the purchasing capacity will wane. So we need to make some adjustments. How we are different? Currently, there are sandwich cookies, chip cookie, soda cookies, crackers, Layered cookie, sweet biscuits and so on in the market.
Our factory will adopt the advanced manufacturing line to produce the colorful cookies with natural pigments and different shape. And we will promote membership sales among students. We will combine telephone and internet marketing to promote our sales. Size of the primary target market —the number of university students in Jimei totals 50,000 including undergraduate and graduate and doctoral students. As our university still plan to expand enrollments year after year, thus the number of our target customers keeps rising.
The market growth will increase by 10% annually. Competitors: Our competitors in Jimei are cake shops, bakeries. Some are old brand in this city such as Andelusen and sunmile and exist for quite a few years. Thus this market calls for a new brand food to inject in new markets Market share. There are about 7 cake shops, 10 bakeries, 6 supermarkets, 10 groceries, in and around the campuses (those schools of Jimei University scattered in the south of Jimei also included). Thus we estimates our cookies can take 25% market share at the beginning.
The number of customers will reach 30,000 students. The male-female ratio in Jimei is 6 :4. We calculated this data as many boys don’t like snacks plus some girls. And at the beginning(at least in one year),with the awareness of our brand cookie being known to students, our market share can take at least 25% of the food markets. Pricing and gross margin targets As a new comer in cookie industry, faced with fierce competitions and mature markets, our target customers have no idea about our products.
Thus, we would apply low-pricing strategy to take the market share. Considering the price of the fine flour is 3000rmb /ton, the cookies of one brand currently in the market is 150g prices 6. 00rmb. So we priced 150g 5. 0RMB. Price for different kinds of cookies differs. A. Review product/service costs for accuracy including all variable and fixed expenses. Chocolate cookie required high techniques, the price will be 150g, 10rmb. For soda cookie, the price of 150g packing is 4 RMB.