Upload
amardeepbardhan
View
95.181
Download
159
Embed Size (px)
DESCRIPTION
cost sheet of a chocolate company is bee prepared and its analysis has been done
Citation preview
Management Accounting
Project Work
“GOOBERS CHOCOLATE”
Melts in your mouth, not on your hands
Submitted to: Submitted by:
Dr. Ritesh Srivastava Amardeep Bardhan
Roll No: FT-RM (09)-202
ACKNOWLEDGEMENT
The satisfaction and euphoria that accompany the successful completion of
any task would be incomplete without mentioning the name of the people
whose constant guidance and encouragement has crowned all our effort
with success.
Firstly I would like to thank Dr. Ritesh Srivastava for giving us his precious
time and guidance that helped us a lot in completing this project.
Last but not the least I would like to thank all those people for their
immense co-operation who helped me in any way and without help of
these people this project never be completed successfully.
Amardeep Bardhan
Chocolates!!! Chocolates! Chocolates!
Every body has a liking for them, be they in the form of bar
Or a tiny little gem,
Or shaped like a rectangle,
Or a sphere, a brick or an éclair.
For chocolate lovers it is fun,
To have them during rain, breeze or sun.
They are white and brown in color,
And taste sweet and bitter
Some have them in a glass of cold coffee, or in the form of a toffee.
Some eat them when they are sad
Some relish them when they are happy or have sweet dreams,
But I feel, to have chocolates
We don’t need a reason,
‘Cause we can have it
Anytime, any season!
TABLE OF CONTENTS
History of Chocolate
Process of Making Chocolate
Ingredients of Chocolate
Company Profile
Business Plan & Strategy
Competitive brands in Market
SWOT Analysis
Cost Sheet
Analysis
Scope in Indian Market
Conclusion
Biblography
History of Chocolate: The origin of chocolate can be traced back to the ancient Maya and Aztec civilizations in Central America, who first enjoyed “chocolati” a much-prized spicy drink made from roasted cocoa beans. Throughout its history, whether as cocoa or drinking chocolate beverage or confectionary treat, chocolate has been a much sought after food.
The Aztec empire “Chocolate”(in the form of a luxury drink) was consumed in large quantities by the Aztecs: the drink was described as “ finely ground, soft, foamy,
reddish, bitter with chilli water, aromatic flowers, vanilla and wild bee honey. The dry climate meant the Aztecs were unable to grow cocoa trees, and had to obtain supplies of cocoa beans from “ tribute” or trade.
Don Cortes The Spanish invaded Mexico in the 16th century, by this time the Aztecs had created a powerful empire, and the Spanish armies conquered Mexico. Don Cortes was made captain general and governor of Mexico. When he returned to Spain in1528 he loaded his galleons with cocoa beans and equipment for making the chocolate drink. Soon “chocolate” became a fashionable drink enjoyed by the rich in Spain.
Chocolate across Europe An Italian traveler, Francesco carletti, was the first to break the Spanish monopoly. He had visited Central America and seen how the Indians prepared the cocoa beans and how they made the drink, and by 1606 chocolate was well established in Italy.
Drinking chocolate The secret of chocolate was taken to France in 1615, when Anne, daughter of Phillip 2 of Spain married king Louis 13 of France. The French court enthusiastically adopted this new exotic drink, which was considered to have medicinal benefits as well as being a nourishing food. Gradually the custom of drinking chocolate spread across Europe, reaching England in the 1650‟s.
First chocolate for eating Up until this point all chocolate recipes were based on plain chocolate. It was an English doctor, sir Hans‟s sloane, who- after traveling in south America- focused on cocoa and food values, bringing a milk chocolate recipe back to England. The original Cadbury milk chocolate was prepared to his recipe.
History:
The earliest record of chocolate was over fifteen hundred years ago in the central America rain forests, where the tropical mix of high rain fall combined with high year round temperatures and humidity provide the ideal climate
for cultivation of the plant from which chocolate is derived, the cacao tree. “ Chocolate is made from the cocoa bean, found in pods growing from the trunk and lower branches of the cacao tree, Latin name “ theobroma cacao” meaning “ food of the gods” Cacao was corrupted into the more familiar “ cocoa” by the early European explorers. The Maya brewed a spicy, bittersweet drink by roasting and pounding the seeds of the cacao tree with maize and capsicum peppers and letting the mixture ferment. This drink was reserved for use in ceremonies as well as for drinking by the wealthy and religious elite; they also ate cacao porridge. The Aztecs, like the Mayans, also enjoyed cacao as a beverage fermented from the raw beans, which again featured prominently in ritual and as a luxury available only to the very wealthy. The Aztecs called this drink xocolatl, the Spanish conquistadors found this almost impossible to pronounce and so corrupted it to the easier “ chocolat” the English further changed this to chocolate. The Aztec‟s regarded chocolate as an aphrodisiac and their emperor, Montezuma reputedly drank it fifty times a day from a golden goblet and is quoted as saying of Xocolatl: “ the divine drink, which builds up resistance and fights fatigue. A cup of this precious drink permits a man to walk for a whole day without food”.
Chocolate in Europe Xocolatl! or chocolat or chocolate as it became known, was brought to Europe by Cortez, by this time the conquistadors had learned to make the drink more palatable to European tastes by mixing the ground roasted beans with sugar and vanilla ( a practice still continued today), thus offsetting the spicy bitterness of the brew the Aztec‟s drank. The first chocolate factories opened in Spain, where the dried fermented beans brought back from the new world by the Spanish treasure fleets were roasted and ground, and by the early 17th century chocolate powder – from which the European version of the drink was made- was being exported to other parts of Europe. The Spanish kept the source of the drink- the beans- a secret for many years, so successfully in fact, that when English buccaneers boarded what they thought was a Spanish “ treasurer galleon” in 1579, only to find it loaded with what appeared to be “ dried sheep‟s droppings, they burned the whole ship in frustration. If only they had known, chocolate was so expensive at that time, that it was worth it‟s weight in silver ( if not gold), chocolate was treasure indeed ! Within a few years, the cocoa beverage made from the powder produced in Spain had become popular throughout Europe, in the Spanish Netherlands, Italy, France, Germany and – in about 1520 – it arrived in England. The first chocolate house in England opened in London in 1657 followed rapidly by many others. Like the already well established coffee houses, they were used as clubs where the wealthy and business community met to smoke a clay pipe of tobacco, conduct business and socialize over a cup of chocolate.
Back to the America’s Event‟s went full circle when English colonists carried chocolate (and coffee) with them to England‟s colonies in north America. Destined to become the united states of America and Canada, they are now the worlds largest consumers – by far – of both chocolate and coffee, consuming over half of the words total production of chocolate alone.
The Quakers The Quakers were, and still are, a pacifist religious sect, an offshoot of the puritans of English civil war and pilgrim fathers fame and a history of chocolate would not be complete without mentioning their part in it. Some of the most famous names in chocolate were Quakers, who for centuries held a virtual monopoly of chocolate making in the English speaking world – fry, Cadbury and row tree are probably the best known.
Its probably before the time of the English civil war between parliament and king Charles 1st that the Quaker‟s who evolved from the puritans, first began their historic association with chocolate. Because of their pacifist religion, they were prohibited from many normal business activities, so as an industrious people with a strong belief in the work ethic (like the puritans), they involved themselves in food related businesses and did very well. Baking was a common occupation for them because bread was regarded as the biblical “staff of life”, and bakers in England were the first to add chocolate to cakes so it would be a natural progression for them to start making pure chocolate. They were also heavily involved in breakfast cereals but that‟s another story. What is certain is that the fry, row tree and Cadbury families in England among others, began chocolate making and in fact Joseph fry of fry &sons (founded 1728 in Bristol, England) is credited with producing and selling the world‟s first chocolate bar. Fry‟s have now all but disappeared (taken over by Cadbury) and row tree have merged Swiss company nestle, to form the largest chocolate manufacturer in the world. Cadbury have stayed with chocolate production and are now, if not quite the largest, probably one of the best-known chocolate makers in the world.
Chocolate as we know it The first mention of chocolate being eaten in solid form is when bakers in England began adding cocoa powder to cakes in the mid 1600‟s. Then in 1828 a Dutch chemist, Johannes van houten, invented a method of extracting the bitter tasting fat or “cocoa butter” from the roasted ground beans, his aim was to make the drink smoother and more palatable, however he unknowingly paved the way for solid chocolate as we know it. Chocolate as we know it today first appeared in 1847 when fry & sons of Bristol, England – mixed sugar with cocoa powder and cocoa butter (made by the van houten process) to produce the first solid chocolate bar then in1875 a Swiss manufacturer, Daniel peters, found a way to combine (some would say improve, some would say ruin) cocoa powder and cocoa butter with sugar and dried milk powder to produce the first milk chocolate.
Process of Making Chocolate Hundreds of pounds of fermented and dried cacao beans bundled in burlap sacks arrive at factories around the world everyday, ready to be turned into fine bars and cocoa powder. Over a period of about one to three days, the bean is transformed from tropical seed into treasured chocolate. Roasting After being cleaned, the cacao beans pass to the first critical step in flavor development at the factory: roasting. There
are two main approaches to roasting: roast the beans for a short time at high heat, which produces a strong chocolate flavor but eliminates any subtle, floral notes and risks the development of charred flavors from over-roasting, or roast the beans for a long time at low heat, which allows the more delicate flavors to come through but sacrifices the big, chocolate flavor. Winnowing — Getting Rid of the Shells After roasting, the beans are put through a winnowing machine which removes the outer husks or shells, leaving behind the roasted beans, now called nibs. Milling — Making Cocoa Liquor The nibs are then ground into a thick liquid called chocolate liquor, which essentially is cocoa solids suspended in cocoa butter. Despite its name,
chocolate liquor contains no alcohol. Pressing — Cocoa Powder and Cocoa Butter The processing now goes in a couple of different directions. Some batches of chocolate liquor are pressed to extract the cocoa butter, which leaves a solid mass behind that is pulverized into cocoa powder. The remaining cocoa butter is reserved to help in chocolate-making. Other batches of chocolate liquor are used directly to make chocolate.
The Beginnings of Chocolate To make dark chocolate, chocolate liquor, sugar and other minor ingredients such as vanilla are mixed together and kneaded until well blended. To make milk chocolate, milk and sugar are mixed together and then blended with chocolate liquor. This sweet combination of ingredients is stirred until the flavors are thoroughly combined.
Refining — Smoothing It All Out After being mixed, both dark and milk chocolates go through the same process. The mixture travels through a series of heavy rollers which press the ingredients until the
mixture is refined to a dry flake. Additional cocoa butter and a small amount of emulsifying agent are added to the flake and
then mixed to make a smooth paste ready for “conching.”
Conching — Kneading for Exquisite Flavor Conching further develops flavor by putting chocolate through a kneading process. The conches, as the machines are known, have heavy rollers that plow back and forth through the chocolate mass anywhere from a few hours to up to seven days. Tempering — Temperature Magic For A Perfect Product The mixture is then tempered, or passed through a heating, cooling and reheating process. Tempering allows you to solidify chocolate in a way that keeps it glossy, causes it to break with a distinctive snap and allows it to melt smoothly in your mouth.
Moulding — We're Getting Closer The mixture is then poured into moulds and cooled in a cooling chamber.
Finally — Something We Can Eat! Once cooled, the chocolate is demoulded, packaged for distribution and is ready for savoring.
Ingredients of Chocolate
Pure chocolate comes from Cocoa beans. A typical chocolate bar will also have:
• Sugar,
• Milk (if it's milk chocolate, not if it's dark),
• Cocoa Butter,
• Lecithin,
• Flavorings (like vanilla),
• Sometimes, Vegetable Oil
Exotic ingredients of chocolate GOOBERS CHOCOLATES:
• Sugar
• Cocoa Butter
• Cocoa Solids
• Peanuts
• Milk Solids
• Chocolate coated Raisins
• Almonds
• Vanilin
• Honey
Boston Baked Bean
Company Profile
The name of my company is Blumenthal Chocolate Company which introduced
GOOBERS in 1985 in India.
Initially, The Company was dealing in 2-3 types of spices and dry fruits only.
But later on it came up with an idea of chocolate coated peanuts with milk
chocolate.
In the year 1992, the CEO of Blumenthal Chocolate Company thought about
increasing the profit of the company with some bigger margins and making the
company bigger then ever. In the Year 1993 company had introduced the full
variety of chocolate like dark chocolate, chocolate enriched with dry fruits etc.,
and also he started exporting them to neighboring countries. At that time
Blumenthal Chocolate Company was the only company who was there in Indian
Market with full varieties of dark chocolate, chocolate with dry fruits, wafer
chocolate, bar chocolate etc.
In the year 1995, This Company got listed in NSE. Now, in the year 2009, after
reading the Indian booming food industry, The Company has decided to launch
a new Chocolate (only in Indian market) by the name of “GOOBERS”. This
chocolate is a unique in its category which is has peanuts coated in milk
chocolate with butter, caramels, dry fruits and honey in it. This chocolate is
available in different packs of 15 grams, 35 grams, 65 grams and JUMBO pack of
125 grams. This chocolate is especially launched in a way so that it suits the
middle class pocket and even low call of people as well. The JUMBO pack of this
chocolate is the biggest chocolate available in the Indian market.
Business Plan & Stretegy
Since the GOOBERS CHOCOLATES has been launched under the brand name
Blumenthal Chocolate Company, so the company has the advantage of easily
poisoning of GOOBERS CHOCOLATE on such competitive market.
Firstly to attract the target audience towards the chocolate product the company
will place a low promotional price for the chocolate for time being and will also
distribute some free sample in the market to make feel the audience of the
caramelized taste of milk chocolate coated peanuts.
The target audience for this chocolate is the younger generation, children and
also middle age groups who like chocolate. Also the company has decided to
launch this chocolate before Christmas so that the audience can taste it earlier
and then can gift it to their near and dear ones on the occasion of Christmas and
New Year. Also the company will launched the „Santa Gift‟ pack for Christmas
and „New Year‟ pack of GOOBERS CHOCOLATES which contains the dry fruits
and the GOOBERS CHOCOLATES. These packs are especially designed to be
sold at the time of Christmas and New Year.
Before Christmas and New Year, the Company has planned to launch the small
pack worth Rs 5 and Rs10 so that the audience are intended to purchase Goobers
chocolates. There will be some offer also associated with the purchase of two
packs of GOOBERS CHOCOLATES.
GOOBERS CHOCOLATES main concern is advertisement and the promotion,
and then making sure the consumers get a nice tasting, good quality product. No
other chocolate bar is similar to this, making it almost certain that this bar will
occupy its own market segment and make it something different from other
confectionaries. If promoted correctly, stressing the point that the, the bar will be
a big hit in stores and adding the factor that it is healthier will arouse people‟s
attention and curiosities.
Since it is the first Chocolate with a Milk chocolate coated peanuts and other dry
fruits in it so it‟s already a added benefit for the Chocolate.
The main thing that GOOBERS CHOCOLATES should try to do is make the
consumers think this bar is so different and special compared to regular
chocolate bars that they will need to try it in order to see if this is true or not, and
arouse a sort of craving for the bar that will secure sales for years, if lucky. If
executed correctly, this strategy will ensure a good entrance to the market and
GOOBERS CHOCOLATES will soon have a successful new chocolate on the
market that will ensure sales and let GOOBERS CHOCOLATES reap profit from
it.
If all the above written plans goes well then the GOOBERS CHOCOLATES will
get better positioning in the market.
Competitive Brands in the Market
NESTLÉ
Nestlé India is a subsidiary of Nestlé S.A. of Switzerland. With seven factories
and a large number of co-packers, Nestlé India is a vibrant Company that
provides consumers in India with products of global standards and is committed
to long-term sustainable growth and shareholder satisfaction.
The Company insists on honesty, integrity and fairness in all aspects of its
business and expects the same in its relationships. This has earned it the trust
and respect of every strata of society that it comes in contact with and is
acknowledged amongst India's 'Most Respected Companies' and amongst the
'Top Wealth Creators of India'.
Various brands of Nestle available in the market –
NESTLÉ KIT KAT
NESTLÉ KIT KAT LITE
NESTLÉ MUNCH
NESTLÉ MUNCH POP CHOC
NESTLÉ MILKYBAR
NESTLÉ MILKYBAR CHOO
NESTLÉ BAR-ONE
NESTLÉ FUNBAR
NESTLÉ Milk Chocolate
POLO
POLO Powermint
NESTLÉ Eclairs
CADBURY
Cadbury is the world's largest confectionery company and have a strong regional
presence in beverages in the Americas and Australia. With origins stretching
back over 200 years, today their products - which include brands such as
Cadbury, Schweppes, Halls, Trident, Dr Pepper, Snapple, Trebor, Dentyne,
Bubblicious and Bassett - are enjoyed in almost every country around the world.
We employ around 60,00 people. Their heritage starts back in 1783 when Jacob
Schweppe perfected his process for manufacturing carbonated mineral water in
Geneva, Switzerland. And in 1824 John Cadbury opened in Birmingham selling
cocoa and chocolate. These two great household names merged in 1969 to form
Cadbury Schweppes plc. Since then they have expanded their business
throughout the world by a programme of organic and acquisition led growth.
Concentrating on their core brands in beverages and confectionery since the
1980s, they have strengthened their portfolio through almost fifty acquisitions,
including brand icons such as Mott's, Canada Dry, Halls, Trident, Dentyne,
Bubblicious, Trebor, Bassett, Dr Pepper, 7 Up and Snapple.
- It employ 60,000 people in over 200 countries
- Worlds No 1 Confectionery company
- World's No 2 Gums company
- World's No 3 beverage company
CADBURY CHOCOLATES
Dairy Milk
5 Star
Perk
Celebrations
Temptation
Eclairs
Gems
SWOT Analysis
Strengths:
• Almost 80,000 employees are working for the company
• The company is a respected employer that values its workforce.
• It is cheap in comparison to other chocolates.
The company provides better quality of chocolate at competitive prices.
Weaknesses:
• Transportation and its costs giant because of the company‟s size.
• Production costs are high.
• A lot of work just to keep the company running in an orderly and
organized fashion
• Quality of new products is automatically expected to be very good
• It causes health problems.
Opportunities:
• Expansion into every country around the world.
• Increase in control over their market segment.
• Acquisition of more famous and well known brand names.
• Expand product range in order to target multiple user groups.
• Production of sugar-free chocolates.
Threats:
• Increased international taxes on goods, especially beverages and
confectionary goods.
• Rise of transportation prices.
• Other companies such as Cadbury and Nestle who also strive for market
leadership.
• Change in laws that inhibit production or sales in any way.
COST SHEET
For the month of December
Total Output = 4,50,000 units
Particulars Cost Per Unit Total Cost
Raw material
Sugar = 3,00,000
Cocoa Butter= 3,00,000
Cocoa Solids = 3,20,000
Peanuts = 2,00,000
Milk Solids = 2,00,000
Chocolate Coated Rasins= 4,00,000
Almonds= 3,00,000
Vanilin= 1,00,000
Honey= 50,000
Boston Baked Bean= 1,50,000
5.16
23,20,000
Direct Labour= 7,00,000 1.56 7,00,000
Carriage on Material= 2,42,500 0.53 2,42,500
Prime Cost:- 7.25 32,62,500
Factory expenses:-
Fixed –
Depreciation on Plant and Machinery= 2,57,500
Rent= 1,50,000
Power and Consumable Stores= 1,50,000
Factory Insurance= 1,50,000
Supervisors Salary= 50,000
Variable –
Electricity Charges= 50,000
2.35
10,57,500
Power and Consumable Stores= 1,00,000
Running Expenses of Machine= 1,50,000
Factory Cost:- 9.60 43,20,000
Office and Administration Expenses
Office staff salary= 10,00,000
Rent= 80,000
Computer= 1,20,000
Furniture= 3,00,000
Telephone= 10,000
Carriage outward= 20,000
Depreciation on furniture= 50,000
Salaries to administrative staff= 3,70,000
Rent, rates, and taxes= 30,000
4.40
19,80,000
Office and Administration Cost:- 14.00 63,00,000
Selling & Distribution Expenses Advertisement (Print and by local T.V.
channels)= 4,00,000
Petrol= 1,00,000
Delivery vehicles= 2,50,200
Maintenance of delivery vehicles= 49,800
Packing rates= 50,000
Bad Debts written off= 1,00,000
2.00
9,00,000
Total cost 16.00 72,00,000
Net Profit (20% on selling price) 4.00 18,00,000
Sales 20.00 90,00,000
Analysis The GOOBERS CHOCOLATES will be introduced in the market with a
competitive edge that it is under the banner of BLUEMENTHAL
CHOCOLATE COMPANY. The goodwill of the BLUEMENTHAL
CHOCOLATE COMPANY will help the GOOBERS CHOCOLATES to get
the market captured in a shorter span of time.
The chocolate will be launched just before Christmas and New Year so the
time is perfect to gain the market in max.
The company is producing 4,50,0000 units of chocolates at the rate of Rs. 16
for which we are incurring the total cost of Rs. 72,00,000 and the total sales of
Rs. 90,00,000which implies that we are having the profit of Rs. 18,00,000.
The company is producing a single unit of chocolate at the rate of Rs. 20
which includes the cost of chocolate as Rs. 16 which again implies that the
profit of Rs. 4 is gained on the single unit of chocolate.
Since the company is earning some percentage of profit above the cost it
means increasing cost can be the favorable condition for the company.
Since the company is earning some amount of profit so our business is a
feasible to launch over.
The punch line of GOOBERS CHOCOLATE is “MELTS IN YOUR MOUTH,
NOT ON YOUR HANDS” will make people to get attracted towards the
chocolate. Also the Pack is designed in such a way like a king of all chocolates
is sitting in the shop.
Scope in Indian Market
This chocolate has a great scope in Indian Market as it is a different kind
of product amongst all other chocolates present under different brands.
GOOBERS CHOCOLATE is cheaper than Fruit n Nut, Crackle and
Temptation which is an added benefit to the company.
The chocolate will be launched before Christmas and New Year with
attractive packing and with offers so the chocolate will capture the market
quickly.
As according to some survey in India it is found that 90% of people
consume chocolates and 42% consumers are of age group 10-20 and 33%
consumers are of age group 21-30, thus this chocolate has a great scope in
India.
It is also found from the survey that the most important aspect of the
consumers they keep in mind before purchasing chocolate is the Flavor,
Quality and Packing and the GOOBERS CHOCOLATE has priorised this
aspects the most to capture the market and compete with the chocolate of
same kind.
Conclusion
As we compare my company product with some other company‟s product, the
chocolate may seem to be same as other chocolates existing in the market but it
has a distinct taste of its own and also the main difference is the marketing
strategy and the profit margin ensured. As we know if strong competitors are
already exist in the market, it gets really very tough to enter into the market.
Instead of all these if we give value for money product to the customers, we can
definitely compete with the competitor‟s and can draw the positive attitude of
the customer towards the product.
Biblography
www.allchocolate.com
www.wikipedia.com
www.google.com www.cadbury.com www.nestle.in www.reviewstream.com www.mouthshut.com
"Hmmmmmmmm......
Getting hungry yet?
Make time for your
favorite chocolate
today!"
GOOBERS CHOCOLATE
MELTS IN YOUR MOUTH, NOT ON YOUR HANDS