Tony’s Chocolonely Exportplan
CE-DEXP Export Management
Isabelle Rijk - 601829
Kate Witjes -600026
CEN-D03
Gert-Jan Schlatmann
30-04- 20
1
,Management summary
(this chapter is written by Isabelle Rijk and Kate Witjes)
If TC is going to export to the UK, the company will have to make use of the indirect entry strategy.
Differentiated marketing will be the best segmentation strategy for TC. TC's target group are English
men and women between 25-49 years of age.
In supermarkets Tesco, Sainsbury’s, Morrison’s and Waitrose will sell the chocolate bars.
The 180-gram chocolate bars in the flavours milk, pure and caramel sea salt will be exported in Y1.
As the brand awareness in Y2 Y3 increases, various classic flavours such as hazelnut and white
chocolate will be added to the range.
Price of a chocolate bar in pounds: £2.70 incl. VAT. TC's pricing strategy for the UK will remain the
same as in the Netherlands. TC's strategy is therefore referred to as pricing.
TC will use the Instagram and Facebook platforms for promotion. . If TC can ensure that the company
is named with leading programmes in the UK, the company will gain more name recognition among
consumers. TC will also be able to increase brand awareness by distributing samples.
It is therefore a challenge for Tony's Chocolonely to start selling directly to these large chains through
the sales agent and the bars will be sold to English consumers in this way. These stores have a good
reputation on the English market so it will be wise to sell the Tony's Chocolonely chocolate bars
there.
Transportation will take place from the producer in Belgium to the Warehouse in the Netherlands.
There it will be stored and from there it will be transported to the UK.
TC uses physical evidence by sharing their mission on the product and on the website. The parts of
the chocolate bars are not equally distributed and TC wants to make something clear by not dividing
the bars into equal parts.
TC will open an office in England. The office will have three employees: content maker, social media
coordinator, financial/analytical expert. Together with the external sales agent they will form the
‘’Team Tony's Chocolonely UK’’.
TC will make a small profit in the first financial year UK. The company can expect a profit of around 8
million. Investors will recoup their investment after three years and make a profit in the fourth year.
From the whole survey it can be concluded that Tony's Chocolonely has been advised positively to
start exporting to the UK. In order for this to go as well as possible, it is advised to work with a sales
agent. These future employees will do their bit to increase TC's market share in the UK. Ultimately,
TC will come a little closer to the organization's main goal: 'selling 100% slave-free chocolate bars
around the world'.
2
,Table of Content
1. Preface....................................................................................................................................4
1.1 introduction Tony’s Chocolonely......................................................................................4
1.2 Country selection..............................................................................................................4
2.0 Export goals and objectives..................................................................................................4
3.0 Entry strategy........................................................................................................................6
4.0 Recommended market..........................................................................................................7
5.0 Recommendation of marketing mix.....................................................................................9
Product....................................................................................................................................9
Price.......................................................................................................................................10
Promotion.............................................................................................................................11
Place......................................................................................................................................12
Physical evidence..................................................................................................................14
6.0 Recommendation on Transport & International payments...............................................14
6.1 transport.........................................................................................................................14
6.2 international payments...................................................................................................15
7.0 Organisational impact.........................................................................................................17
8.0 Planning and control...........................................................................................................18
9.0 Financial consequences......................................................................................................18
Sales Y1 Y2 Y3...........................................................................................................................18
Normal, Best, Worse case Y1................................................................................................20
P&L and liquidity planning...................................................................................................22
Liquidity planning Y1.............................................................................................................23
10.0 Conclusion and advice.......................................................................................................25
11.0 Sources..............................................................................................................................26
Partnership contract Tony's export plan..................................................................................27
Appendix 1: The SWOT-analysis................................................................................................28
Appendix 2: The requirements for SMART goals......................................................................29
Appendix 3: New Market testing criteria..................................................................................30
Appendix 4: Market shares in food retail.................................................................................30
Appendix 5................................................................................................................................31
Appendix 6: London Population................................................................................................32
Appendix 7................................................................................................................................32
Appendix 8: Transport...............................................................................................................32
Appendix 9 : Organogram Team TC UK.....................................................................................33
3
, Appendix 11..............................................................................................................................34
1. Preface
1.1 introduction Tony’s Chocolonely
The following report was commissioned by the Dutch company Tony's Chocolonely. In 2003
the television programme ''Keuringsdienst van Waarde'' investigated (child) slavery within
the cocoa industry (Tony's Chocolonely, s.d.) 'Keuringsdienst van Waarde' is a programme
that exposes abuse of food and other production. (Tony's Chocolonely, s.d.)
Teun van de Keuken is one of the journalists of the programme and he is really shocked after
reading a book about child slavery on the cocoa plantations in West Africa. (Tony's
Chocolonely, s.d.)
After some research Teun decided to report himself as a chocolate criminal, what followed is
a lawsuit and after 2 years the first chocolate bar of Tony's Chocolonely followed.
In 2006 Tony's Chocolonely came on the market as an official company with the mission to
produce 100% slave free chocolate bars. The company pays higher prices to the cocoa
farmers and ensures that the cocoa beans are traceable, so that the chocolate bars only
consist of slave free chocolate.
Tony's has grown very rapidly as a company over the past ten years. Currently the company
has 140 employees (Tony's Chocolonely Annual Report, 2019) and more than 22 different
chocolate bars. In addition, the company is market leader in the Dutch chocolate market
(Tony's Chocolonely Annual Report 2019, 2019).
The company has also grown internationally and the bars are available in several countries;
Germany, Belgium, Norway, Sweden, Denmark, Finland, France and the United States.
(Tony's Cholonely, s.d.)
1.2 Country selection
The export plan will be focused on the United Kingdom. The reason why there is chosen for
the UK is because Tony’s Chocolonely indicates that they see the UK as a “Golden market’’.
At Tony’s a ‘’Golden market’’ means that the country scores high on the following 3
segments; leading edge consumers, worldwide politics and strategic market chocolate giants
(HAN Tony’s Chocolonely case 2019-2020, 2019). In this report it will be researched whether
Tony’s should enter the English market or not and how the company could possibly do this
best. This means that the UK has a very favourable market to enter.
2.0 Export goals and objectives
4
CE-DEXP Export Management
Isabelle Rijk - 601829
Kate Witjes -600026
CEN-D03
Gert-Jan Schlatmann
30-04- 20
1
,Management summary
(this chapter is written by Isabelle Rijk and Kate Witjes)
If TC is going to export to the UK, the company will have to make use of the indirect entry strategy.
Differentiated marketing will be the best segmentation strategy for TC. TC's target group are English
men and women between 25-49 years of age.
In supermarkets Tesco, Sainsbury’s, Morrison’s and Waitrose will sell the chocolate bars.
The 180-gram chocolate bars in the flavours milk, pure and caramel sea salt will be exported in Y1.
As the brand awareness in Y2 Y3 increases, various classic flavours such as hazelnut and white
chocolate will be added to the range.
Price of a chocolate bar in pounds: £2.70 incl. VAT. TC's pricing strategy for the UK will remain the
same as in the Netherlands. TC's strategy is therefore referred to as pricing.
TC will use the Instagram and Facebook platforms for promotion. . If TC can ensure that the company
is named with leading programmes in the UK, the company will gain more name recognition among
consumers. TC will also be able to increase brand awareness by distributing samples.
It is therefore a challenge for Tony's Chocolonely to start selling directly to these large chains through
the sales agent and the bars will be sold to English consumers in this way. These stores have a good
reputation on the English market so it will be wise to sell the Tony's Chocolonely chocolate bars
there.
Transportation will take place from the producer in Belgium to the Warehouse in the Netherlands.
There it will be stored and from there it will be transported to the UK.
TC uses physical evidence by sharing their mission on the product and on the website. The parts of
the chocolate bars are not equally distributed and TC wants to make something clear by not dividing
the bars into equal parts.
TC will open an office in England. The office will have three employees: content maker, social media
coordinator, financial/analytical expert. Together with the external sales agent they will form the
‘’Team Tony's Chocolonely UK’’.
TC will make a small profit in the first financial year UK. The company can expect a profit of around 8
million. Investors will recoup their investment after three years and make a profit in the fourth year.
From the whole survey it can be concluded that Tony's Chocolonely has been advised positively to
start exporting to the UK. In order for this to go as well as possible, it is advised to work with a sales
agent. These future employees will do their bit to increase TC's market share in the UK. Ultimately,
TC will come a little closer to the organization's main goal: 'selling 100% slave-free chocolate bars
around the world'.
2
,Table of Content
1. Preface....................................................................................................................................4
1.1 introduction Tony’s Chocolonely......................................................................................4
1.2 Country selection..............................................................................................................4
2.0 Export goals and objectives..................................................................................................4
3.0 Entry strategy........................................................................................................................6
4.0 Recommended market..........................................................................................................7
5.0 Recommendation of marketing mix.....................................................................................9
Product....................................................................................................................................9
Price.......................................................................................................................................10
Promotion.............................................................................................................................11
Place......................................................................................................................................12
Physical evidence..................................................................................................................14
6.0 Recommendation on Transport & International payments...............................................14
6.1 transport.........................................................................................................................14
6.2 international payments...................................................................................................15
7.0 Organisational impact.........................................................................................................17
8.0 Planning and control...........................................................................................................18
9.0 Financial consequences......................................................................................................18
Sales Y1 Y2 Y3...........................................................................................................................18
Normal, Best, Worse case Y1................................................................................................20
P&L and liquidity planning...................................................................................................22
Liquidity planning Y1.............................................................................................................23
10.0 Conclusion and advice.......................................................................................................25
11.0 Sources..............................................................................................................................26
Partnership contract Tony's export plan..................................................................................27
Appendix 1: The SWOT-analysis................................................................................................28
Appendix 2: The requirements for SMART goals......................................................................29
Appendix 3: New Market testing criteria..................................................................................30
Appendix 4: Market shares in food retail.................................................................................30
Appendix 5................................................................................................................................31
Appendix 6: London Population................................................................................................32
Appendix 7................................................................................................................................32
Appendix 8: Transport...............................................................................................................32
Appendix 9 : Organogram Team TC UK.....................................................................................33
3
, Appendix 11..............................................................................................................................34
1. Preface
1.1 introduction Tony’s Chocolonely
The following report was commissioned by the Dutch company Tony's Chocolonely. In 2003
the television programme ''Keuringsdienst van Waarde'' investigated (child) slavery within
the cocoa industry (Tony's Chocolonely, s.d.) 'Keuringsdienst van Waarde' is a programme
that exposes abuse of food and other production. (Tony's Chocolonely, s.d.)
Teun van de Keuken is one of the journalists of the programme and he is really shocked after
reading a book about child slavery on the cocoa plantations in West Africa. (Tony's
Chocolonely, s.d.)
After some research Teun decided to report himself as a chocolate criminal, what followed is
a lawsuit and after 2 years the first chocolate bar of Tony's Chocolonely followed.
In 2006 Tony's Chocolonely came on the market as an official company with the mission to
produce 100% slave free chocolate bars. The company pays higher prices to the cocoa
farmers and ensures that the cocoa beans are traceable, so that the chocolate bars only
consist of slave free chocolate.
Tony's has grown very rapidly as a company over the past ten years. Currently the company
has 140 employees (Tony's Chocolonely Annual Report, 2019) and more than 22 different
chocolate bars. In addition, the company is market leader in the Dutch chocolate market
(Tony's Chocolonely Annual Report 2019, 2019).
The company has also grown internationally and the bars are available in several countries;
Germany, Belgium, Norway, Sweden, Denmark, Finland, France and the United States.
(Tony's Cholonely, s.d.)
1.2 Country selection
The export plan will be focused on the United Kingdom. The reason why there is chosen for
the UK is because Tony’s Chocolonely indicates that they see the UK as a “Golden market’’.
At Tony’s a ‘’Golden market’’ means that the country scores high on the following 3
segments; leading edge consumers, worldwide politics and strategic market chocolate giants
(HAN Tony’s Chocolonely case 2019-2020, 2019). In this report it will be researched whether
Tony’s should enter the English market or not and how the company could possibly do this
best. This means that the UK has a very favourable market to enter.
2.0 Export goals and objectives
4
