Page 31 - Cost_Competitiveness
P. 31
31
The Institute of Cost Accountants of India
Chocolate Industry - Cost & Innovation
Backdrop: offer premium or specialty products. For
all companies involved in the chocolate
The chocolate industry offers a wide industry, however, rising commodity
variety of opportunities for the small prices can be a cause for concern.
business owner and is growing despite
increased health-consciousness and Cocoa prices can be exceedingly
calorie counting. Healthier varieties are variable as it is largely grown in developing
gaining market share and discerning nations with often unstable political
consumers are willing to pay a premium situations. Recent turmoil in the Ivory
for ethical production, but through it Coast, the largest producer of cocoa, has
all, chocolate demand continues to caused prices to skyrocket for the beans.
grow. Thus growth will remain strong as Lack of access to modern insecticides
chocolate gains in popularity in new and fertilizers also makes production less
markets and the global economy powers predictable. Large producers of cocoa
ahead. manage and absorb much of this risk, but
will begin to pass on higher prices beyond
a certain point.
Objectives:
Applicability:
► Market Expansion
► Product diversifcation The chocolate industry has proven
► Attractive Package both resilient during the recession and
► Reasonably priced innovative to meet changing consumer
tastes and criteria. For the growth and
► Corporate Ethics sustainability of the Chocolate Industry
► Growth and Sustainability the following techniques to be applied:
► Lean Manufacturing
Methodology: ► Supply Chain Method
► Kaizen Costing
Rising disposable incomes and changing
tastes will continue to drive growth in ► Resource Mapping
the industry overseas, just as improving ► Risk Mapping
domestic economic conditions increase
sales at home. Proftability can be derived
from the effective implementation
of Lean Manufacturing and Supply
Chain techniques, as well as effective
marketing. Smaller companies look to
www.icmai.in
The Institute of Cost Accountants of India
Chocolate Industry - Cost & Innovation
Backdrop: offer premium or specialty products. For
all companies involved in the chocolate
The chocolate industry offers a wide industry, however, rising commodity
variety of opportunities for the small prices can be a cause for concern.
business owner and is growing despite
increased health-consciousness and Cocoa prices can be exceedingly
calorie counting. Healthier varieties are variable as it is largely grown in developing
gaining market share and discerning nations with often unstable political
consumers are willing to pay a premium situations. Recent turmoil in the Ivory
for ethical production, but through it Coast, the largest producer of cocoa, has
all, chocolate demand continues to caused prices to skyrocket for the beans.
grow. Thus growth will remain strong as Lack of access to modern insecticides
chocolate gains in popularity in new and fertilizers also makes production less
markets and the global economy powers predictable. Large producers of cocoa
ahead. manage and absorb much of this risk, but
will begin to pass on higher prices beyond
a certain point.
Objectives:
Applicability:
► Market Expansion
► Product diversifcation The chocolate industry has proven
► Attractive Package both resilient during the recession and
► Reasonably priced innovative to meet changing consumer
tastes and criteria. For the growth and
► Corporate Ethics sustainability of the Chocolate Industry
► Growth and Sustainability the following techniques to be applied:
► Lean Manufacturing
Methodology: ► Supply Chain Method
► Kaizen Costing
Rising disposable incomes and changing
tastes will continue to drive growth in ► Resource Mapping
the industry overseas, just as improving ► Risk Mapping
domestic economic conditions increase
sales at home. Proftability can be derived
from the effective implementation
of Lean Manufacturing and Supply
Chain techniques, as well as effective
marketing. Smaller companies look to
www.icmai.in