Peter’s Chocolates

Peter’s Chocolate Company

To: General Manager

From:

Date:

Topic: Competitor Analysis Report

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Analytical Comparison of Competitors

Callebaut

Although under performing Peter’s in blind taste tests, Callebaut is recognized as a leading product. Like Peter’s, Callebaut is a premium priced and high quality. Callebaut has employed a higher profile marketing strategy, and stronger promotion strategy than Peter’s. Callebaut benefits from a European “myth” in which it is thought that European chocolate is superior. Callebaut has a strong manufacturing plan in place in which it will produce chocolate in the US, thereby lowering it’s production costs and retailing lower than Peter’s. Callebaut’s strengths are in its name, quality, and origin of product. Callebaut’s main weakness is that it under performs Peter’s in blind taste tests. If Peter’s can exploit this, it may prove to be a significant weakness for Callebaut.

Merckens

Similar to Peter’s, Merckens is a North American produced chocolate. Merckens product is above average quality and price. Merckens has a successful distribution network of sales representatives who annually make personal contact with their customers. This is far more extensive than the limited sales network utilized by Peter’s. Merckens competitive advantage is its loyalty of Canadian confectioners and for the time being, its sales staff. Merckens is faced with weaknesses of not producing constructive criticism to customers, and not being well versed in confectionery formulation.

Neilson

Like Peter’s parent company Nestle, Neilson is a large company with large resources. But unlike Nestle, Neilson chooses to sell under its major name and benefits from name recognition. Neilson’s product is not as high quality as Peter’s and sells at a lower price point. Neilson dominates in sales, as it does things on a large scale. They sell to many large distributors, which have access to the masses. Neilson offers a less expensive product than Peter’s and utilizes novelty products to assist with sales. They provide reliable supply of product with no import hassles. Neilson’s main competitive advantages are that it provides a discount on freight and that they have name recognition. Neilson’s main strength is that it enjoys a strong Canadian following. Neilson’s main weakness is that it is currently losing contact with their customers. This divide could prove to hurt their sales in the future.

Cocoa Barry

Cocoa Berry seems to have the least in common with Peter’s in relation to the other competitors. Cocoa Berry is focused primarily on the Quebec market currently. It provides a lesser quality product at a lower cost than Peter’s. It is recognized that Cocoa Berry uses direct advertising and supports training. Cocoa Berry’s competitive advantage is that it, provides good value for the money, and like Callebaut it benefits from the European “myth”, even though at times it combines its product with that of Neilson. Cocoa Barry faces the challenges of primarily being recognized only in the Quebec market, and it produces a lower quality product than Peter’s. Its strengths lie in that it has a distributor who focuses on the hospitality and bakery trade.

Peter’s

Peter’s