When asked about the current marketing plan against actual results for the year, the CEO reports:
We achieved our store growth and sales growth but our gross profit margins are currently sitting on 46%. I think we are still below the threshold for gourmet chocolate and hot drinks, which we predict should be at an average gross profit of 63%. Expansion in sales and cost effectiveness are key issues here. We have spent $60,000 on radio advertising and $280,000 overall, including PR, magazines and direct marketing. While this radio advertising expenditure achieved sales results, it was at a significant cost that was not initially planned for. PR has been particularly useful, resulting in many write-ups on our unique offer.
The customer loyalty lists had achieved a total of 34,500 and a survey indicates that 58% of people in the target market recognise the Cocoa Delights brand and what it represents.
Overall, our SWOT analysis in 2010 is still valid for today. Not much has changed in that regard.