Profile
The chocolate market in Brazil has become a big niche for investors as the consumption over the past years had increased, Brazil is the third producer of chocolate and the fourth market in the world, behind the United States, Germany, and the UK. Among the different competitors in this segment, strategic management had become crucial for businesses to succeed in the market.
Cacau Show is a Brazilian food company, located in Itapevi, in the state of São Paulo. The company between the many entries and competitors in the market managed to still be one of the leaders in sales. Proudly utilize 100% national chocolate, and with a complete line of chocolates, with more than 200 products available to the consumer, including truffles, stuffed tablets, fine chocolates, mint chocolate chips, easter eggs, diet line, and others.
Founded by Alexandre Tadeu da Costa, at the age of 17, in the Casa Verde neighborhood, north of São Paulo, in 1988. Cacau Show was one of the pioneers in Brazil with fine chocolates – made with good quality chocolate, less sugar, and more cocoa in the recipe. The main idea is to offer customers good quality products at a lower price.
While gourmet chocolate producers were focusing on upper-class consumers, Cacau Show saw there an opportunity to get to the upper-middle class and lower middle class. Having completed 32 years of operations, the brand is present in almost all Brazilian states and has more than 2.320 franchised units distributed in 350 cities, becoming one of the largest chains of chocolate stores in the world with annual revenue of 3,5 billion reais.
Pioneer in a niche market with growing demand potential, Cacau Show presents a differentiated strategic positioning in its market segmentation, which provides the brand with a high competitive differential. Today, the company seeks innovations in its product line to meet emerging market trends; that is based on ethical and responsible consumption.
The raw materials origin and production is not only a strategy that can differentiate from the competition but also an opportunity, to add value to the brand, following the new cultural changes of current consumers. The evolutionary process of the Cacau Show is well known. A company that had its origin with a family factory, in the neighborhood of Casa Verde, in São Paulo and today is intensely distributed throughout Brazil.
Nowadays Alexandre Tadeu manages four factories – in Itapevi (SP), Campos do Jordão (SP), São Paulo (SP), and Curitiba (PR) – and a production of more than 12 thousand tons of chocolate per year. All the products can be found in many franchisers, supermarkets, restaurants, and many other partners.
Mission and Vision
A mission statement is a statement of the organization’s reason for being, its purpose – what it wants to accomplish in the larger environment. (Kotler p. 49). Furthermore what a company wants to achieve at a larger scale, is meant to show the aims of the products and what the consumers can get from the products.
For Cacau Show the mission is to provide to their customers’ excellence in memorable experiences and products. As a consequence being a reference in business management and strategy.
Vision
Vision statement aims to describe what are the company goals in the long-run, the achievements that the organization is looking to achieve in 10 years or more – and comprehensible to any member and partner in the company. For Cacau Show, the goal is to be the biggest chocolatier company in the world and be known globally. Offering to customers and partners a relationship that can be long-term, focusing on growth, profitability, and socio-environmental aspects.
Objectives
The chosen objectives must be viable and internally compatible, otherwise will not help achieve a good strategy, Kotler & Armstrong (2001). Cacau Show has the objective to offer experiences through their products being present at different times of the year in the customer’s lives, aligning elegancy, and creativity to their good quality chocolate.
Market Analyses and Trends
With the exponential growth of 12% annually, Brazil, despite the hot climate, has proved to be a great market for chocolate brands. Even though cold countries are known for offering a bigger consumption of chocolate, as an example, Switzerland’s consumption reaches 16kg per capita every year. On the other hand, in Brazil, consumption is 2 kg per inhabitant/year, ranging from 100 g per year – in the hottest regions – to 3 kg per person yearly in the coldest regions of the country.
In order to achieve the Brazilian customers’ many companies had to adapt, adopting a more realistic market policy, Cacau Show the pioneer in the market reducing the profit margin and consequently achieving more customers opened the market to new competitors that are now aiming the upper-middle and lower-middle class.
Today, the company operates in four distinct areas: door to door sales, through a team of resellers; wholesale; retail, through a network of distributors and sellers; selling directly to the final consumer, done online. Following the new regulations applied during the Covid-19, the online presence had grown from 5% to 10% in comparison to last year, which represents 100 billion reais.
During Easter time, one of the busiest times for Cacau Show, online orders had a considerable growth from 200 orders online to 60 thousand daily. The migration from customers to online orders shows the brand recognition and customer fidelity to Cacau Show, being the pioneer certainty supported customers to have a good perspective over the brand.
2020-11-30-1606745510