“YEAR OF THE UNIVERSALIZATION OF HEALTH”

INTERNATIONAL BUSINESS CAPSTONE

BUSINESS PLAN
“80% Cacao Premium Chocolate Bars w/ nuts, almonds, coffee grains and
dehydrated fruits”

“CACAO KHUYAY”

PROFESSOR
SALAZAR OSORES, EDILBERTO LUIS PEDRO

BLOCK
DGB-PREINGADM10A1N

STUDENTS
CHAVEZ BUSTAMANTE, PEDRO ROLANDO 1511768
GALLEGOS RIVEROS, LUIS 1420136
GRANT HERNANDEZ, GAIL GERALDINE 1510089
PALOMINO VICUÑA, SHARON LUCIA 1320610

2020-I

1
 INDEX

Chapter 1: General information related to the business plan to develop

1.1. Corporate name

1.2. Commercial name
1.3. Number of partners and participation percentage
1.4. Evaluation period
1.5. Amount of the initial investment
1.6. Economic activity
1.7. Harmonized code
1.8. Description of the business
1.9. Product / service definition
1.10. Business opportunity
1.11. Target market
1.12. Value proposition

Chapter 2: Analysis of the Environment

2.1. Analysis of the environment

2.1.1. PESTEL Analysis
2.1.1.1 Local Market
2.1.1.2 Overseas Market
2.1.2. External Factor Evaluation (EFE) Matrix
2.2. Industry Analysis
2.2.1. Competitive Analysis: Porter’s Five-Forces Model
2.2.1.1. Rivalry among competing firms
2.2.1.2. Potential entry of new competitors
2.2.1.3. Potential development of substitute products
2.2.1.4. Bargaining power of suppliers
2.2.1.5. Bargaining power of consumers
2.2.2.  Internal Factor Evaluation (IFE) Matrix
2.3. Foreign market selection
2.4. Conclusions of the environment analysis

Chapter 3: Market Research

2
 3.1. Objectives of the Market Research
3.2. Methodology
3.2.1. Exploratory phase
3.2.2. Conclusive phase
3.3. Research design
3.3.1. Research tools used
3.3.2. Determination of the population and sample size
3.4. Estimation of demand in units
3.4.1. Estimation of the potential market
3.4.2. Estimation of the available market
3.4.3. Estimation of the effective market
3.4.4. Estimation of the target market
3.4.5. Monthly estimate of the demand year 2022(units)
3.4.6. Annual demand estimate for years 2022, 2023, 2024, 2025, 2026
3.5. Projection of Income in dollars (US $)
3.5.1. Monthly income forecast for year 2022 (US $)
3.5.2. Annual income forecast for years 2022, 2023, 2024, 2025, 2026
3.6. Main Suppliers identified
3.6.1. Criteria for the selection of supplier
3.7. Main Competitors identified
3.8. Company Internationalization Strategy
3.9. Market Entry Mode Decision
3.10. Results and conclusions of the market survey
3.11. Market segmentation
3.11.1. Geographic segmentations variables
3.11.2. Demographic segmentations variables
3.11.3. Psychographic segmentations variables
3.11.4. Behavioral segmentation variables

Chapter 4: Strategic Formulation

3
4.1. SWOT Matrix: Strengths-Weaknesses-Opportunities-Threats
4.2. Vision and Mission Statements
4.3. Strategic objectives
4.4. Competitive or Generic Strategy
4.5. Growth strategy
4.6. Competitive Advantage
4.6.1. Vrio Matrix
4.7. Values
4.8. Social Responsibility

Chapter 5: Marketing Plan

5.1 Marketing Objectives

5.2 Target Market

5.2.1 Segmentation Variables

5.3 Positioning

5.4 Competitive Position

5.5 Marketing Plan

5.5.1 Product

5.5.2 Price

5.5.3 Promotion

5.5.4 Place

5.6 Marketing Budget

5.7 Marketing Schedule

4
Chapter 6: Plan of Operations and Costs

6.1 Objectives of operations

6.2 Operations Strategy

6.3 Technical description of the service

6.3.1 Explicit Benefits

6.3.2 Implied benefits

6.3.3 Degree of contact

6.3.4 Service Components

6.4 Location and size of plant layout

6.5 Design and process description

6.6 Fixed costs, variable costs and total cost

6.7 Product Cost, Cost MP Cost MOD and calculation of VAT

6.7 Breakeven

6.8 Preoperative Budget

6.8.1 Investment tangible fixed

6.8.2 Investment intangible fixed

6.8.3 Working capital

6.9 Schedule pre operational activities

Chapter 7: Organizational Structure and Human Resources Management

7.1 Organizational Structure

7.2 Flowchart

7.3 Objectives Human Resources

7.4 Human Resources Policies

7.5 Monthly and Annual Payroll

5
Chapter 8: Finance Plan

8.1 Objectives of Finance

8.2 data

8.3 Assumptions

8.4 Policies

8.5 Capital Structure

8.6 Cash flow budget

8.7 Financial cash flow

8.8 financial indicators

8.8.1 Calculation of COK and WACC

8.8.2 Economic IRR / Financial IRR

8.8 3 Economic and Financial VAN

8.9 Statement of Financial Position

8.10 Statement

8.11 Analysis of dimensional sensitivity

Recommendations and Conclusions

Bibliography

Annexes

6
 CHAPTER 1

1.1. Corporate name: Cacao Amör SAC

1.2. Commercial name: Cacao Khuyay

1.3. Number of partners and participation percentage:

N° Partner Participation percentage

1 Pedro Rolando Chavez Bustamante 25%

2 Luis Gallegos Riveros 25%

3 Gail Geraldine Grant Hernandez 25%

4 Sharon Lucia Palomino Vicuña 25%

N° Majors Quantity

1 Computer Engineering 1

2 Business Management 2

3 International Relations 1

1.4. Evaluation period

In order to present a complete idea of the evolution and viability, Cacao

Khuyay project will be placed in an evaluation period of 12 months. It will start
at the beginning of 2021 until the end of the mentioned year.

1.5. Amount of the initial investment

The amount that we are expecting to use in the beginning is $60,000 since we
will need a cold chain storage to keep the inventory, provisional contracts to
buy the main source-cacao- to cacao growers, as well as equipment and
machinery to carry out the treatments and processes, and finally the facility
where the company matrix will be placed. The board of shareholders will
invest each US$2,500 making a total of $10,000, and the $50,000 left will be a
bank loan.

7
1.6. Economic activity

The company will focused the activities in the production, treatment,

distribution, logistics to export and sales of a variety of 80% or more cacao
chocolate, which is why the ISIC code that we will declare is 2066: Chocolate
and Cocoa Products.

1.7. Harmonized code

The company will work with a variety of presentation of the main source that is
cacao or chocolate with a high percentage of pureness of cacao, they will be
premium chocolate bars with 80%+ cacao with nuts, almonds, coffee grains,
and dehydrated fruits. That's why we will use the harmonized code of
1806.90.00.00 in order to cover all the possibilities and have a range of
expansion of the product portfolio.

1.8. Description of the business

The business idea appeared with a group of friends with a mutual love for
both chocolate and a healthy life. Peruvian cacao is one of the finest in the
world and is recommended by doctors even from a 75%, reason why our
product includes bars from 80% and more, apart from the added value by
including organic nuts, almonds, coffee beans or dehydrated exhotic fruits
which include aguaymanto, camu camu, pitahaya, capulin, between others.
Creating this premium product 100% organic and peruvian, the idea of taking
it all around the world was imminent, for why Switzerland was chosen as the
first country our product would be exported.

Switzerland has always been known for its chocolate, and through the years
the production of their own chocolate decreased and they started to import
chocolate from overseas; we decided this was the perfect opportunity to
introduce our premium chocolate.

1.9. Product/Service definition

Currently, the trend of consumption of organic products is growing worldwide.

That is why our company "Cacao Amör SAC" manufactures and markets

8
 organic chocolate under the trade name "Cacao Khuyay". The product to be
sold is high quality chocolate made with a minimum of 80% cocoa. The
presentations of the product will be bars of 80 grams with added fillings of:
❏ Coffee grains
❏ Nuts
❏ Almonds
❏ Dehydrated exotic fruits (aguaymanto, camu camu, pitahaya, capulin)

1.10. Business opportunity

Swiss people are the major fine chocolate consumers around the world with a
per capita annual consumption between 8 and 11 kilograms approximately.
However, more than 70% of Swiss chocolate production is exported abroad
and only 27.5% is sold on the domestic market. As a result, the percentage of
chocolate produced outside Swiss borders but consumed in Switzerland
increased by 41% last year.

9
1.11. Target market

VARIABLE DESCRIPTION

Our product will be aimed at both men and women who

DEMOGRAPHIC
are in the medium-high and very high socioeconomic
levels from 20 to 40 years old.

❏ International market: European

GEOGRAPHIC ❏ Zürich, Switzerland (the most populous city)
❏ 402,762 inhabitants (2017)
❏ Urban distribution: metropolitan area
❏ Climate: warm and temperate

PSYCHOGRAPHIC Men and women, who like to lead a healthy lifestyle and
prefer organic premium products that bring benefits to their
health.

People who like to consume fine chocolate or products

BEHAVIOR
derived from cocoa, live gourmet experiences and value

10
 organic products.

1.12. Value proposition

The objective of "CACAO KHUYAY" is to offer an organic product made with

the best high-quality Peruvian cocoa from the Valley of the Apurímac, Ene
and Mantaro rivers (VRAEM from its spanish name) and recognized by the
Chocolate Show in London with five gold medals and the ultimate prize for the
best chocolate in the world. Likewise, chocolate with low sugar rate and a
high level of cocoa will be offered to promote the benefits in areas of health
such as cardiovascular, antidepressant, and promotion of good cholesterol.
On other side, the presentation of the packaging will be made in reference to
the Peruvian culture to promote the places where the cocoa used is produced.

11
 CHAPTER 2

2.1. Analysis of the environment

2.1.1 PESTEL Analysis

2.1.1.1 LOCAL MARKET

Perú

● Political environment

Peru is currently in a very delicate political situation, regardless of the world

situation. Our country has been characterized in the political area by the
erroneously choosing of its representatives and this period is no exception, from
an initial problem where it was decided to remove the elected Pedro Pablo
Kuczynski from the post of president after a term of less than 2 years due to
judicial investigations where charges such as corruption, money laundering, vote
buying, among others were attributed to him. However, a year after this incident, in
2019, the problem did not end, with the closing of the congress, this was due to
the fact that the vote of confidence of the congress was denied to the ministerial
cabinet chosen by the president (at that time Pedro Pablo Kuczynski ) for which
the substitute for President Martín Vizcarra was allowed to dissolve the congress;
Then, in 2020, the new election of members of Congress was held, where a
surprising distribution of members of political parties stood out, by being the first
time in history. In conclusion, the political situation in which Peru finds itself cannot
be described as anything other than unstable. Nevertheless, the current world
situation has allowed political figures, such as Martin Vizcarra, to regain people's
trust through good management of the means and resources available.

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● Economic environment

PERÚ 2014 2015 2016 2017 2018

Per Capita Income S/. S/. S/. S/. S/.

14,811.81 15,290.76 15,543.908 15,585.17 15.877,842

EAP 16’396,377 16’498,138 16’903,680 17’215,700 17’462,800

EAP% 52.94% 52.58% 53.21% 53.51% 54.30%

BALANCE OF - - -
4,064’407, 4,084’768,
TRADE 3,291’299,7 4,912’385,3 361’174,48
299.49$ 453.72$
53.43$ 78.72$ 3.72$

Product Imports 42,346’000, 37,924’000, 36,263’000 39,884’000 43,249’000

000$ 000$ ,000$ ,000$ ,000$

Exports 39,533’000, 34,414’000, 37,082’000 45,275’000 48,942’000

000$ 000$ ,000$ ,000$ ,000$

GDP 200,789’362 189,805’300 191,895’94 211,007’20 222,044’97

,451.57$ ,841.60$ 3,823.89$ 7,483.51$ 0,486.217$

Rate of inflation 3.245% 3.549% 3.592% 2.803% 1.318%

Real interest rate 12.995% 13.064% 12.985% 13.015% 13.010%

Exchange rate (UNM-

2.839 3.184 3.375 3.26 3.287
$)

With this data we can conclude that Peru was achieving economic stability since it
has managed to increase all economic indicators taking into greater consideration
the great change that occurs in the trade balance, taking from negative values in
2014 to 2016, that is, greater imports than exports, to positive values in 2017 and
2018. Furthermore, the growing GDP combined with the inflation rate that decreases
every year allows Peru to develop economically. However, the current situation has
caused many countries, including Peru, to enter an economic recession causing a
stagnation that will affect the data for the whole year and that is not known with
certainty when it ends.

● Social Environment

13
 In the Peruvian population there was a tendency to increase the consumption of
chocolate, having in 2019 a consumption of 500 grams per capita annually,
having an exponential increase that would result in the consumption of S /. 1.2
billion in 2021.
The preferred form is chocolates on important dates for this product, such as
Valentine's Day where the "Premium Chocolates" section, which has more than
50% cocoa purity.
Chocolate consumption in Peru increases on average 8% annually.
In terms of taste, Peruvians have never leaned towards the constant presence of
chocolate in typical gastronomy. Therefore, even though we are a country with a
higher quality of chocolate production, consumption will not drastically increase.

● Technological environment

The trend to buy chocolates through non-traditional means on Valentine's Day is

growing annually, which means that the use of applications or web pages for the
purchase of this type of products is increasing and therefore companies will seek
to invest in their online positioning and also in the maintenance or, in its absence,
creation of softwares that allow to give the client the pertinent facilities.

● Legal environment

Law No. 29196 on the Promotion of Organic or Ecological Production,

encourages organic and ecological production by preparing with government
authorities.
Law No. 30355 of the Law for the Promotion and Development of family farming
consists of supporting and protecting families that depend on agriculture.

● Ecological environment

According to the National Association of Ecological Producers (ANPE) of Peru,

cacao is the second main chain of national organic agriculture.
Piura is one of the Peruvian regions with the greatest ecological agricultural
capacity in Peru.
The Ecological Agriculture Network of Peru (RAE) is the organization that
promotes agroecology based on the maintenance and expansion of ecological
culture through conferences and projects such as "Ecomercado Peru".

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2.1.1.2 OVERSEAS MARKET

Switzerland

● Political Environment

Switzerland is a country that does not have a president of the republic, this
position is assumed by the Federal Council, which is made up of seven people
who are in charge of directing the country, and also has a political system of
direct democracy, which means that the Citizenship participates directly in the
country's policies. Switzerland at the moment is a politically stable country, which
guarantees anyone who wants to do business in Switzerland, there is also
freedom and facilitation to do business because the government supports the
growth of local and foreign companies.

● Economic Environment

Switzerland is an economically stable and developed country. The Gross

Domestic Product per capita and annual have shown a constant growth in the
last 10 years. In 2009, the GDP per capita was $ 54.49 and the annual 423.63M.
$. In 2019, the GDP per capita was $ 79,482 and the annual 662,762 M. $.
Which means that Switzerland is in a very good place in terms of the standard of
living of its inhabitants. On the other hand, in 2019, Switzerland ranked fourth in
the ranking on the index of economic freedom in the world by the Heritage
Foundation. This means that Switzerland is a country with a greater degree of
economic freedom and is very important because it allows the creation of wealth
and equal opportunities for all. Other characteristics is that according to a study
by CeoWorld magazine published this year, Switzerland is the country with the
highest cost of living in the world, with an index of 122.4, it also has one of the
highest wages in the world, in 2018 The average annual salary was 83,064 CHF
(85,458 USD), although there is no minimum wage established by the
government.

15
16
● Social Environment

In the Social aspect, Switzerland is a country that has a population of 8,500,000

inhabitants until 2018. For exporters like us, this country represents a great
business opportunity since it is a leader in the consumption of organic food,
which it is perfectly adjusted to the product we want to export. A study in 2017
carried out by the German organization “Bund Okologishe
Lebensmitterlwirtschaft” determined that in Switzerland it has the highest per
capita food consumption in the world, with 295 CHF (303 USD) and also this
sector represents 6% of food consumption.
Furthermore, the population distribution by age of Switzerland shows a good
opportunity for chocolate consumers between 25-54 years which represents
almost the half of whole population

0-14 years: 15.1% (men 635,840 / women 599,255)

15-24 years: 11.11% (men 463,953 / women 444,500)
25-54 years: 43.46% (men 1,783,071 / women 1,771,590)
55-64 years: 12.37% (men 506,010 / women 506,103)
65 years and over: 17.96% (men 645,225 / women 823,747)

On the other hand, an important aspect to highlight is that Switzerland is the

country of chocolate par excellence, the Swiss like chocolate a lot and its
consumption per capita is 11 kilograms per year unlike Peru, whose
consumption is 500 grams year.

● Technological Environment

Switzerland is highly developed in the field of technology and innovation of the

Swiss target state of CHF 22 million for research and development, which
represents approximately 3% of GDP. This environment is present in all
industries and sectors of the country, within the chocolate manufacturing
industry, new technologies are also used that adapted traditional chocolate
production to an advanced system of machinery.

17
● Legal Environment

It is important to know this aspect to know what regulations, standards we must

take into account before exporting our product to the Swiss market. There are
legal aspects of importing organic products into Switzerland to take into
account, for example, you can only import a product if local production does not
meet demand. In addition, in this case our organic product (premium chocolate
bar with 80% cocoa) must have a certificate given by International Certification
Bio Suisse and the product must have the certificate logo on the wrapper to
give credibility.

● Ecological Environment

Switzerland is a country where the environmental culture is highly developed

and there are efficient policies established by the government to protect it. This
year, Switzerland ranked first in the Environmental Performance Index with a
score of 87.42. This means, Switzerland shows a good performance and
commitment in favor of caring for the environment and to overcome climate and
pollution problems. On the other hand, one of the environmental policies given
by the Swiss government is on recycling, which establishes that people who
throw garbage must pay an average tax of 2.98 CHF for every 5 kg of garbage
that they throw away, but if it is no longer recycled tax would be paid.

18
19
 2.1.2 External Factor Evaluation (EFE) Matrix

Key External Factors Weight Rating Weighted

Score

Opportunities

1. 40% increase in consumption of foreign premium 0.13 3 0.39

chocolate

2. Fee from the payment of taxes as a benefit of the Free 0.1 4 0.4
Agreement Trade between Peru and EFTA members

3. “Star” classification for the export of premium chocolate to 0.15 4 0.6

Switzerland

4. Annual per capita consumption of 9kg of chocolate 0.07 3 0.21

5. Swiss Import Promotion Program (SIPPO) 0.09 3 0.27

Threats

1. High level of competition from highly industrialized 0.17 2 0.34

countries such as Germany.

2. High degree of local production of premium chocolate 0.1 2 0.2

3. Insufficient cultivation areas to satisfy the demand of 0.03 1 0.03

premium cocoa

4. European Union regulation on cadmium in Peruvian 0.12 1 0.12

cocoa

5. Customers could prefer other brands 0.04 3 0.12

Total 1.0 2.68

❏ The final weighted score for the EFE matrix is 2.68, above 2.5, which means the
company is responding well to the existing opportunities and threats present in the
industry. As part of an strategy, we are effectively taking advantage of the existing
opportunities and minimizing the possible effects of the threats.

20
2.2 Industry Analysis

2.2.1 Competitive Analysis: Porter’s Five-Forces Model

2.2.1.1 Rivalry among competing firms

There is a lot of competitors in the market, but majority have not clear
differences. There is not precise positioning, but some brands wield power by
price leadership, which could facilitate weak brands to leave the market.

2.2.1.2 Potential entry of new competitors

Specifically, about requirements or certifications, there are food EU regulation

standards which are very considered by customers. Therefore, new
competitors entries must certificate the required standards of their products.
On the other hand, distribution channels are easy to access, but there are
recognized brands which are already placed in favorable locations at the
counters.

2.2.1.3 Potential development of substitute products

Because clients do not normally substitute their preferences due to the price
nor a different candy product, it makes substitution action hard to succeed.
However, same quality standards shown in other brands could be taken as a
substitute sometimes.

2.2.1.4 Bargaining power of suppliers

There are a many of cacao suppliers in specific parts of the country, so they
do not have much power over the price. Even though prices could be affected
for harvest period, suppliers belong to organized associations to avoid
overprices by retail industries.

2.2.1.5 Bargaining power of consumers

Clients power is high due to high requirements regarding to quality standards

in flavor and cultural tendencies such as the habit of chocolate consumption.
Furthermore, it is a competitive market where there are options and tastes for
exigent clients.
2.2.2 Internal Factor Evaluation (IFE) Matrix

21
Key Internal Factors Weight Rating Weighted
Score

Strengths

1. Completely organic product 0.1 4 0.4

2. Premium chocolate (80% cocoa - 0.15 4 0.6

recommended by doctors)

3. Added flavour/value by including nuts, 0.05 3 0.15

almonds, coffee grains and dehydrated fruits

4. Eco friendly machinery for the production 0.025 3 0.075

5. 100% peruvian product 0.1 4 0.4

6. Switzerland chocolate market has stop 0.075 3 0.225

producing and is now importing.

Weaknesses

1. High costs of production 0.1 1 0.1

2. Elevated price of product 0.075 1 0.075

3. Low presence in the market 0.075 1 0.075

4. Costs of transportation 0.125 2 0.25

5. Not a recognized company 0.025 2 0.05

6. Low control in selling points 0.1 1 0.1

Total 1.0 2.5

❏ The weighted score of the IFE matrix is 2.5, by not being below this number we can
say the company is not internally weak, but actually in a balance between our
strengths and weaknesses. None of them significantly over the other.

22
2.3 Foreign market selection

The company chose the Swiss market since we can find an annual consumption of
between 11kg and 12kg per capita, in addition to the constant decrease in local
chocolate production, it creates a window of business opportunity in which we can
take advantage of the quality of the peruvian cocoa bean, which is among the best
in the world, and well accepted into this market.

In addition, the ecological or organic factor is highly appreciated for all European
countries, also as a possible future opportunity is the expansion to different
countries of the European Union.

At the time of Switzerland market evaluation, Argentina market was evaluated to

due to some great characteristic for chocolate acceptance. However, both countries
were evaluated in different factors to determinate the best market attractiveness
supported by the competitive strength.

First, in economical and political stability factor, it was established that Argentina
would get a third consecutive economical decreasement due to political instability
and increment in debts. Meanwhile, Switzerland is considered one of the most
richest countries due to its efficiency in market economy.

The distance from perú will mean and increasement in transportation cost, reason
why Argentina had more ranking in distance acceptance. However, Switzerland
market offers more capability and knowledge about chocolate trends due to its
consumption behavior.

There were also a special consideration about psychic distance where Argentina
was ranked better than Switzerland because of peruvian cultural similarities as both
belong at same region. But, the Switzerland market size is more attractive than
argentinian one in terms of chocolate preferences. In addition, both countries show
a similar market growth because Argentina has increased chocolate consumption in
the last 3 years, but Switzerland still looks more attractive because of its developed
chocolate culture which is also well reinforced with its purchasing power performing
a better market profitability.

23
24
2.4 Conclusions of the environment analysis

25
The analysis of the environment shows us mixed indicators, which are more in favor than
against of the premium chocolate business. On the one hand, the PESTEL analysis in the
local market shows a political instability and economic recession in Peru due to the
current context. However, the technological and legal environment present indicators
such as the increase in purchases of this type of product on the web and the promotion of
laws such as 29196 for organic promotion in the country. On the other hand, the analysis
in the foreign market offers better conditions for the consumption of premium chocolate.
Thus, the Swiss political environment guarantees business through freedom and
advantages. Likewise, its economic and social environment are favorable because it has
a constant GDP growth and a per capita consumption of 11 kg per year. In terms of
technological and ecological environment, Switzerland invests 3% of GDP and has a
highly developed culture, that’s why they are ranking first in the performance index.
Nevertheless, the legal environment represents a barrier to entry since the entry of
products is only allowed if local production doesn’t satisfy the demand. Finally, the EFE
matrix shows a score of 2.68, which means that our business model responds well to the
opportunities and threats analyzed.

26
 CHAPTER 3: MARKET RESEARCH

3.1 Objectives of the Market Research

In Table Nº 1 We will present the general and specific objectives of the market
research.
Table Nº1: General and Specific Objectives of the Market Research.

GENERAL OBJECTIVES SPECIFIC OBJECTIVES

Define a market size estimation Identify the chocolate bar demand per unit in
Zurich and Bern

Forecast chocolate bar sales in the following

five years

Identify the expected price for the target Compare prices of similar products

Compare prices of substitution products

Identify the most valued factors on Identify how divided is the market share and
similar products the weight of each competitor

3.2 Methodology
3.2.1 Exploratory phase
Switzerland has the most chocolate consumption per capita around the world.
However, chocolate meaning has been deteriorated by big companies producer
which set the product up such as danger due to high percent of fats and sugar
mainly for the presence of milk and substitution of other fat components which
are not come from cacao, the main ingredient.
Sources: https://theecologist.org/2011/sep/27/raw-chocolate-all-your-questions-
answered
https://soycomocomo.es/despensa/chocolate-contra-cacao
https://www.dinero.com/emprendimiento/articulo/suizos-producen-chocolate-
con-cacao-colombiano/225846
http://red.uao.edu.co/bitstream/10614/11194/5/T08528.pdf
Related to swiss chocolate consumption, it has decreased in 2018 because the
heat increment for the climate change, but it also occurs due to the high
concern of healthy products consumption where, definitely, high sugar and high
LDL do not has chance for consumers.

27
3.2.2 Conclusive phase
According to OECD Better Life Index, in terms of employment, 80% of people
aged 15 to 64 have a paid job where swiss people earn USD 62 283 / CHF 60
753 in yearly average. Furthermore, in health terms, 78% of swiss population
reported that they have a good health, but cantonal authorities identify major
risk factors such as eating habits, sedentariness, smoking and alcohol abuse.
For that, there is an strong emphasis on healthy nutrition and physical activity
programs since the most cause of deaths are cardiovascular diseases where
pure dark chocolate consumption could bring great benefits to reduce blood
pressure and improve circulation. It is also important to mention that
Switzerland has one of the most life expectancy in the world which is around 84
years.
Regard to net salary, the Federal Statistical Office of Switzerland set net
incomes distribution per month are distributed in the following charts:

28
https://www.bfs.admin.ch/bfs/en/home/statistics/work-income/wages-income-employment-labour-
costs/wage-levels-switzerland/distribution-net-wages.html

https://www.bfs.admin.ch/bfs/en/home/statistics/work-income/wages-income-employment-labour-
costs/wage-levels-switzerland/categories-persons.html
http://www.oecdbetterlifeindex.org/countries/switzerland/
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5745863/
https://www.aclsmedicaltraining.com/chocolate-and-heart-health/

29
 3.3 Research design
3.3.1 Research tools used
In order to export our product to a foreign market we are not in the position to
make a focus group or in-depth interviews, for which the research tool used
would have to be secondary sources, such as articles and statistics that can
help us with our research.
3.3.2 Determination of the population and sample size
We decided to choose Zúrich as our destiny market due to the major
opportunities to reach our target public. The City of Zurich is the largest city in
Switzerland and the capital of the canton of Zürich. It is located in north-
central Switzerland . In addition, it is the financial engine and cultural center of
the country, being also a city awarded the title of city with the highest quality
of life in the world for two consecutive occasions.
Table Nº 2 shows shows the population of Zürich according to historical data
from 2015 -2019 obtained from the website of The Statistical Office of the
canton of Zürich. We will use the information from this data to project the
population of the next 5 years (2022,2023,2024,2025 and 2026).

Table Nº2: Population in Zurich from 2015 to 2019.

Year Population Growth Rate Average

Growth Rate

2020 1395000 0.87% 1.05%

2019 1383000 0.88%

2018 1371000 1.11%

2017 1356000 1.12%

2016 1341000 1.06%

2015 1327000 1.07%

2014 1313000 1.08%

2013 1299000 1.09%

2012 1285000 1.10%

2011 1271000 1.11%

2010 1257000 1.05%

Source: Statistical Office of the canton of Zurich 2020
https://statistik.zh.ch/internet/justiz_inneres/statistik/de/daten/gemeindeportraet_kanton_zuerich.html#a-content

30
 For the projection of the population of the next 5 years (2022-2026) , we use
the linear regression method with odd data.
We will consider a decrease in the average growth rate of Zurich population of
0.003% due to the coronavirus COVID-19 pandemic that is currently being
experienced around the world.

Table Nº 3 : Projected population in Zurich from 2022-2026

Year Population
2022 1,424,365

2023 1,439,278

2024 1,454,347

2025 1,469,574

2026 1,484,960
Own elaboration.

To determine the sample size, the following data was taken into account:

Where: Key terms

N: population size

Z: level of confidence

P: acceptance probability

Q: probability of non-acceptance
d: margin of error
3.4 Estimation of demand in units

3.4.1 Estimation of the potential market

Taking into consideration the estimated population of Zurich from 2022 to 2026, the
parameters of segmentation that we will use are the followings:

31
Table N°: Segmentation Parameters
NSE: highest income 40%
Ages: 20 – 40 35.6%
Total 14.24%
Own elaboration

EDAD: 20 - 40: 35.6% 2022 2023 2024 2025 2026

NSE A y B: 40%

Population 1,424,365 1,439,278 1,454,347 1,469,57 1,484,9

4 60

Potential market 202,830 204,953 207,099 209,267 211,45

8

As it says in the segmentation parameters and according to the Swiss National Institute
of Statistics, we can identify the socioeconomic range of our target as 40% of the
population with the highest disposable income, another parameter is the age range that
we identify between 20 and 40 years because it is the range with the highest population
concentration.
Which will last for a week, where 2-night passes will be given to potential clients (tour
operators, people in the middle, people specializing in the hotel sector) who will occupy
one of the 8 rooms that the ecolodge will have. This will allow to have a trial period of
the project and the feeling it leaves to the clients. In addition, measure the times of the
service, protocols and operations of the strategic plan; will allow to correct processes.

3.4.2 Estimation of the available market

Filter 60% 2022 2023 2024 2025 2026

Potential Market 202,830 204,953 207,099 209,267 211,458

Available Market 121,698 122,972 124,259 125,560 126,875

As an available market we take into account the great trend towards organic
consumable products for which we estimate 60% according to "Promoter of Costa Rican
Foreign Trade" where trends in the European market are identified

3.4.3 Estimation of the effective market

32
Acceptance 30% 2022 2023 2024 2025 2026

Available Market 121,698 122,972 124,259 125,560 126,875

Effective Market 36,509 36,892 37,278 37,668 38,063

Taking into consideration the nature of the product, chocolate, in a country that has the
highest consumption of chocolate in the world and the varied competition that can be
found in the local market, we conclude that the company has a 30% chance that the
population accepts the entry of a new brand.

3.4.4 Estimation of the target market

Geometric 3% 2022 2023 2024 2025 2026

Growth

Effective Market 36509 36892 37278 37668 38063

Market Share 3.00% 3.09% 3.18% 3.28% 3.38%

Target Market 1095 1140 1186 1235 1285

Having such a segmented market share and according to the possibilities that we would
have when entering a country so geographically distant, we consider that 3% of the
effective market would be the basis of a realistic and achievable target market, however
we have as a goal a geometric increase in 3% annually

3.4.5 Monthly estimate of the demand year 2022 (units)

ESTIMATED Janua Feb Ma Apr Ma Jun Jul Au Sept Oct Nov Dec
DEMAND ry ruar rch il y e y gus emb obe emb emb
2022 y t er r er er
(monthly)

Seasonality 6.10% 15. 6.1 15. 6.1 6.1 6.1 6.1 6.10 6.1 6.10 15.0
Distribution 00 0% 00 0% 0% 0% 0% % 0% % 0%
% %

Quantity of bar 7.63 18. 7.6 18. 7.6 7.6 7.6 7.6 7.63 7.6 7.63 18.7
per person 75 3 75 3 3 3 3 3 5

Target Market 91 91 91 91 91 91 91 91 91 91 91 91

33
TOTAL 696 171 696 171 696 696 696 696 696 696 696 171
SELLS 1 1 1
QUANTITY

Having an annual per capita consumption of 10 kilos of chocolate, we consider we

identified an annual consumption of 125 80-gram bars of chocolate, which divided
monthly, having the seasonality that we find higher consumption on Valentine's, Easter
and Christmas, we were able to identify a quantity bars per person. This amount
multiplied by the amount of the target market we can find a number of total monthly bars

3.5 Projection of Income in dollars (US $)

3.5.1 Monthly income forecast for year 2022 (US $)

INCOME Jan Fe Ma Apr Ma Jun Jul Au Sept Oct Nov Dec

FORECAST uar bru rch il y e y gus emb obe emb emb
2022 (monthly) y ary t er r er er

Seasonality 6.1 15. 6.1 15. 6.1 6.1 6.1 6.1 6.10 6.1 6.10 15.0
Distribution 0% 00 0% 00 0% 0% 0% 0% % 0% % 0%
% %

Quantity of bar 7.6 18. 7.6 18. 7.6 7.6 7.6 7.6 7.63 7.6 7.63 18.7
per person 3 75 3 75 3 3 3 3 3 5

Target Market 91 91 91 91 91 91 91 91 91 91 91 91

TOTAL SELLS 696 171 696 171 696 696 696 696 696 696 696 171
QUANTITY 1 1 1

Price (FR) 11. 11. 11. 11. 11. 11. 11. 11. 11.2 11. 11.2 11.2
2 2 2 2 2 2 2 2 2

TOTAL INCOME 779 191 779 191 779 779 779 779 779 779 779 191
(FR) 2.7 62. 2.7 62. 2.7 2.7 2.7 2.7 2.75 2.7 2.75 62.5
5 50 5 50 5 5 5 5 5 0

TOTAL INCOME 802 197 802 197 802 802 802 802 802 802 802 197
($) 6.5 37. 6.5 37. 6.5 6.5 6.5 6.5 6.53 6.5 6.53 37.3
33 4 3 4 3 3 3 3 25 3 3 8

By already identifying the total number of bars of 80g. monthly that demand would
require, we multiply it with the fixed price than 11.2 francs.

3.5.2 Annual income forecast for years 2022, 2023, 2024, 2025, 2026
34
INCOME FORECAST 2022 2023 2024 2025 2026
(annually)

Target Market 1095 1140 1186 1235 1285

Quantity of bar per person 125 125 125 125 125

(10kg annually)

TOTAL SELLS QUANTITY 136910 142494 148305 154354 160649

Price (FR) 11.2 11.2 11.2 11.2 11.2

TOTAL INCOME (FR) 1533391. 1595929. 1661017. 1728760. 1799266.

14 11 65 76 71

TOTAL INCOME ($) 1579392. 1643806. 1710848. 1780623. 1853244.

87 99 18 58 71

As the annual target market has already been identified from 2022 to 2026,
and having the data the 125 bars of 80 grams of annual consumption, we can
identify the amount of annual demand that would be required for the years
already mentioned. Said data multiplied by the sale price of each bar, gives us
as a result the projection of annual income in swiss francs that can be easily
passed to dollars.

3.6 Main Suppliers identified

3.6.1 Criteria for the selection of suppliers
Distance:
● Piura: 988.0 km.
● Urubamba (Cusco): 1036 km.
● Ayacucho: 800 km.

35
 Time in hours:
● Piura: 16 hrs.
● Urubamba (Cusco): 22 hrs.
● Ayacucho: 17 hrs.
Producers:
All of them have the organic certification for US, Cánada, UE, and Japan.

● Association of Small Cocoa Producers in Piura (APPROCAP) is in

charge of producing and processing high quality cacao called whit. It
could be attendant according to the quantities and formulas provided
by the company to create the bars. APPROCAP is associated with
SECO Cooperación Suiza. Cacao from Piura is also considered such
as one of high quality due to its cacao aromatic and flavor. With 242
producers and 278ha. the price is around S/. 9.00 per KG.

● Alto Urubamba producers in Cusco. They are in charge of the

production of raw material with around of 105 producers in 300ha. The
price of its Cacao is around S/. 7.00 per KG.

● Ayacucho producers, El Quinacho. They are in charge of the

production of raw material with around 255 producers in 344ha.
Furthermore, those suppliers has swiss certification and its Cacao
price is around S./ 6.50 soles per KG

3.7 Main Competitors identified

36
Switzerland is well known for its chocolate, however, even if most brands follow a
great line of tradition, when it comes to the production it is all done in switzerland but
the raw materials may be imported from South America and West Africa.
When buying premium chocolate in Switzerland there are a few stores that have the
best in the country, and some of them can be found in supermarkets such as “Migros”
and “Coop”:
➢ Cailler Chocolate Factory (Broc) known as the oldest chocolate factory,
founded by Francois-Louis Cailler in 1819, is part museum and part factory,
there you can learn all about the process of making chocolate in an interactive
tour before showing you the candy-wrapping, and finally picking up your
favourite in the the gift shop. Although, a lot of people tend to say they find
this chocolate a bit to sweet for their taste.

Source: https://shop.cailler.ch/en/chocolate.html

37
 Characteristics:
Max Cacao %: 71
Presentation: 96 - 100g
Price: Fr. (CHF) 2.30 - 3.20 / $ (USD) 2.38 - 3.31
*Cailler was bought by Nestlé in 1931

➢ Confiserie Sprüngli (Zurich), the swiss shop has been making chocolates,
truffles, pralines and more- by hand for more than 180 years, made with high-
quality ingredients.

38
 Source: https://www.spruengli.ch/en/shop/chocolate-bars/

Characteristics:
Max Cacao %: 75
Presentation: 100g
Price: Fr. (CHF) 6.80 /$ (USD) 7.26
*Their higher cacao percentage bars are made with cacao provenient from
Bolivia, Cuba, Dominican Republic, and Venezuela.

➢ Du Rhône Chocolatier (Geneva) established in 1875, only uses beans from

South America and West Africa.

39
 Source: https://www.du-rhone.ch/category/tablettes-en-chocolat

Characteristics:
Max Cacao %: 99
Presentation: 80g
Price: Fr. (CHF) 7.50 /$ (USD) 7.76

➢ Läderach is a luxury chocolate shop was founded in 1962 and is chosen by

people as the best chocolate in Switzerland, right next to Lindt. Its chocolate
is mixed with fruit, raspberry, popcorn, etc; and has an annual revenue of
more than $100 million.

Source: https://www.laderach.com/en/

40
Characteristics:
Max Cacao %: Not available
Presentation: 250g (Läderach makes big chocolate bars and gives their
customers the opportunity to choose the amount they will want and breaks the
big chocolate bars depending on how much it will be)
Price: Fr. (CHF) 18.75 /$ (USD) 19.41

41
➢ Lindt was founded in 1845, started as part of Confiserie Sprüngli, but when
this one parted in two, Rodolphe Lindt acquired it in 1899, changing the name
to Lindt & Sprüngli, simply known nowadays as Lindt. It has an annual
revenue of more than $4 billion.

42
 Source: https://www.chocolate.lindt.com/shop/?type_of_chocolate=49

Characteristics:
Max Cacao %: 70 - 90
Presentation: 100g
Price: Fr. (CHF) 2.65 /$ (USD) 2.74

➢ Frey was founded by brothers Robert and Max Frey in 1887 (67 years after
Callier). It was purchased by Migros (one of the biggest stores in Switzerland)
in 1950, and it went international in 1997. It has an annual revenue of approx
$400 million and produces over 40,000 tons of swiss chocolate.

43
 Source: https://www.chocolatfrey.ch/en/products/products

Characteristics:
Max Cacao %: 72
Presentation: 35 - 100g
Price: Fr. (CHF) 2.55 /$ (USD) 2.64 / 1 kg Fr. (CHF) 25.50 /$ (USD) 26.40
Source:https://www.leshop.ch/en/supermarket/sweet-groceries/chocolate-sweets/chocolate-
tablets?filter.product_type_sugar_grocery_choco=dark

➢ Toblerone and Nestlé, are two famous names in swiss chocolate which we
can’t stop naming. However, they are not quite the competitors for our
product, since they are more commercial than premium products. However,
Cailler is part of Nestlé, since it was bought in 1931.

Toblerone Characteristics:
Max Cacao %: Not available
Presentation: 360g
Price: Fr. (CHF) 7.20 / $ (USD) 7.45 / 1 kg Fr. (CHF) 20.00 / $ (USD) 20.71
Source: https://www.leshop.ch/en/search?query=toblerone

44
 A lot of people would say that the two favourite brands to buy are Läderach and Lindt,
which are also the ones swiss people may recommend to tourists, specially if you are
buying a chocolate as a gift since these are handmade, come in nice boxes and the
tastes are amazing, making them more expensive and premium in every way.

3.8 Company Internationalization Strategy

Our internationalization strategy will be based on the network model. In this way, the
expansion of local operations was proposed by establishing realizations with
commercial partners in the target market.

We will look for partners that demonstrate a greater commitment in promoting our
products. In this sense, it is understood that in the first place it will be preferred to use
an intermediary merchant before an agent in commission, since the former assume a
risk that ensures a greater commitment to promote the product in the foreign country.

3.9 Market Entry Mode Decision

Four sets of factors must be evaluated for the input mode decision: internal factors
and external factors with respect to the Swiss market, Transaction – Specific Factors
and Desired Mode Characteristics.

● As a small company, the availability of resources is low and, therefore, a large

investment is risky.
● Lack of international experience leads us to use the experience of partners who know
the target market.
● The production of chocolate, in different presentations, is not technically complex.

45
● Within the premium chocolate segment, our product does not present a huge
differentiation.

● The geographical and cultural distance between Switzerland and Peru is enormous,
so having a partner with local knowledge could help us close this gap.
● The Swiss market is descent with high rates of chocolate consumption, including
premium chocolate, and an increase in the rate of consumption of foreign chocolate.
● Peru has trade agreements with Switzerland that promote national exports to the
European country.
● Competition in the premium segment is intense. This would increase the level of risk
if invested directly without local knowledge. Therefore, this indicates a move towards
outsourcing.
● There are a large number of intermediaries such as the Swiss Chamber of
Commerce, Directory of Peruvian Exporters (SIPPO), Swiss Agency for imports from
third world countries.

● It is not considered difficult

to explain to the partner about the benefit of our premium chocolate.
● Some partner opportunistic behaviors are considered unlikely as partners with
relevant experience in the field are sought and have the backing of the governments
of Switzerland or Peru.

● The decision was made not to be too risky.

● We do not want to have full control of the operations that are carried out in
Switzerland because it would represent a greater investment than what we are willing
at the moment.

46
 ● Being the first internationalization project, this is considered as trial and error,
therefore we are interested in a high level of flexibility to cancel operations if
necessary.

The evaluation of the four sets of factors indicates the use of internationalization with direct
export to Switzerland.

3.10 Results and conclusions of the market survey

The market results indicate that the Swiss population is willing to consume premium
chocolates for an additional price. However, the competition is high with the presence
of recognized brands and with many years in the country. Therefore, it is planned to
make one of organ products and recyclable material to build customer loyalty and be
in harmony with the trends and tastes of the Swiss population.

3.11 Market segmentation

3.11.1 Geographic segmentations variables
Switzerland is located in Western Europe and has an area of 41,290 km²,
making it among the smallest countries. Located in the center of Switzerland,
Zurich covers an area of 91.88 km².

3.11.2 Demographic segmentations variables

Switzerland has 8,544,527 inhabitants and has a population density of 207
inhabitants per km2. Our target market is Zurich with a population of 419,012
inhabitants and 4,765.8 inhabitants per km2.

47
 3.11.3 Psychographic segmentations variables
The Swiss population distributes their income with 25.1% to their home and
basic services and 10.7% to food. Also, it should be noted that television is one
of the most used media for advertising and of greatest interest to the citizen.

3.11.4 Behavioral segmentation variables

Swiss consumers consider that the most important aspects related to the
choice of buying a product are the quality of the products, and the after-sales
service. In particular, the latter is absolutely essential, which is why the Swiss
are prepared to pay an extra price for these products. Despite this, economic
conditions have tightened and price is starting to become an important factor
when choosing certain types of products.
Another important aspect of consumer preference is sustainability. For this
reason, ecological products that ensure the preservation of the environment
are popular. Bananas are still the most popular product in Switzerland,
followed by fruit juices and coffee. These aspects go hand in hand with the
interest of Swiss consumers in leading a healthy life.
Finally, there is great interest and loyalty on the part of consumers for locally
sourced or “Swissness” products. At the same time, however, the preference
for new and innovative products grows. Especially in the case of food, more
and more people are betting on products from other countries.
CHAPTER 4: STRATEGIC FORMULATION

4.1 SWOT Matrix: Strengths-Weaknesses-Opportunities-Threats

STRENGTHS WEAKNESSES

48

SWOT
Matrix
OPPORTUNITIES
1.“Star” classification for the
export of premium chocolate to
Switzerland.
2.Increasing trend towards
consumption of natural / organic Bern, Geneva and in this way or
products.
3.Annual per capita
consumption of 9 kg of
chocolate in Switzerland.
4.Peruvian cacao is recognized
worldwide for its high quality.
5.Swiss consumer is willing to
pay 30% more than the price of
organic products.
6. Distribution channels are easy
to access.
THREATS
1.High quality and certified
product.
2.Eco friendly machinery for the
1.Difficulty in achieving the
substitution action.
production.
2.Lack of experience in the
3.Adequate relationship between sector.
the price and the quality of the
product offered. 3.High costs of production.
4.Switzerland chocolate market 4.Brand not known in the foreign
has stop producing and is now market.
importing.
5. High dependence on the
5.Single-origin cacao provider of certified organic
cacao.
6.Added flavour/value by
including nuts, almonds, coffee 6. Affecting cacao prices by
grains and dehydrated fruits. harvest period.
SO STRATEGY WO STRATEGY
1.Expand the geographical 1.Establish an alliance with
coverage of our product to other strategies such as local
cities of Switzerland such as distributors for the entrance of
our product to distribution
expand throughout the country. channels.
2.Inform Zurich consumers of the
properties and benefits of
organic Peruvian cacao.
3. Set a price that reinforce the
positioning in relation to the
value provided by the organic
product.
ST STRATEGY WT STRATEGY
49
1. High level of competition from
highly industrialized countries
such as Germany. 1.Continue offering the same
quality of the premium product
2. European Union regulation on and achieve customer loyalty by
cadmium in Peruvian cocoa. making our country known
1. Seek innovation in production through “La Marca Perú”,
3.Insufficient cultivation areas to processes and closely follow creating a positive image of the
satisfy the demand of premium new trends in chocolate country nationally and
cocoa consumption in the Swiss internationally.
market.
4.High level of competition from
highly industrialized countries
such as Germany.

5. Existence of two companies

Läderach and Lindt positioned in
the Swiss market.

4.2 Vision and Mission Statements

The vision of our company CACAO KHUYAY is:

“To be nationally and internationally recognized for the production

of 100% organic chocolates and its excellent premium quality;
committed to the environment, small cacao farmers, and their
collaborators”.

The Mission of our company CACAO KHUYAY is:

“We are a company dedicated to the production of 100% organic

chocolates with world-class quality that satisfies the tastes and
preferences of national and international consumers, responsible for
the environment and taking care of the health of our customers”.

4.3 Strategic objectives

50
Strategic objectives can be defined as a set of concrete actions and decisions that seek to
bring the company closer to fulfilling its mission or vocation. In the following table, the
strategic objectives of our company Cacao Khuyay are described, from four perspectives:
client, financial, processes and learning & growth.

PERSPECTIVE STRATEGIC OBJECTIVE

OE1. Position our organic chocolate in the city of Zurich, as a

benchmark for its quality.

OE2. Expand the geographical coverage of our product to other

CUSTOMERS cities in Switzerland such as Bern, Geneva and in this way or
expand throughout the country.

OE3. Expand the product portfolio, offering other presentations

such as truffles, chocolate sticks, pralines, etc . It has
preference of the Swiss consumer.

OE4. Reaches 5% of the market share in our product category

chocolate bar.

OE5.Increase the percentage of sales by 30%

FINANCIAL
OE6. Achieve a net annual return of not less than 15% over the
next 5 years.

OE7. Outperform the competition in quality and production

PROCESSES processes.

LEARNING AND OE8. Make a positive impact at a social, environmental and

GROWTH economic level in our country and the world.

OE9. Create alliances with our cacao producers.

4.4 Competitive or Generic Strategy

Focus Strategy
● Type 5 : Best value focus strategy

51
Our company Cacao Khuyay follows the generic approach strategy, type 5 Best-value focus
strategy. We chose this strategy because we are targeting a specific segment of the Swiss
market, specifically the city of Zürich, offering customers organic chocolate with high cacao
content at higher prices than the competitors but with characteristics that make it unique and
add value .

1. Organic foods are highly valued in Switzerland.

2. Swiss consume an average of 9 kg of chocolate per capita per year.

4.5 Growth strategy

52
 Year* Strategy

2022 Market Penetration

Seeking increased market share for our product in the present market
through greater marketing efforts. For example: changing slogan, packaging
presentation, publicity; according to how the product reception has been
through it and how it can better depending on our customers.

2023 Market Development

Introducing our product into new geographic areas. After Zürich, we have
thought on going to Bern (capital of Switzerland) and Geneva (second most
populous city after Zürich, with presence of competitors), and hopefully
expanding all across the country.

2024 Market Penetration & Market Development

After going to different cities across Switzerland, we hope to expand our
presence on to other countries, first in line is Belgium, the city would be
Brussels which is the capital as well as being recognized for its chocolate
(Godiva).
Market penetration would be necessary after going to different
cities/countries in order to keep up with the customers and what they
want/need, since keeping the customer satisfy is one of the biggest
strategies.

2025 - 2026 Product Development & Related Diversification

Seeking increased sales by improving our product and adding new but
related products. This would mean improving our primary product of
chocolate bars and adding new presentations (apart from bars), as well as
pralines, truffles, chocolate sticks, etc.
*This years may vary depending on the success of our product.

53
4.6 Competitive Advantage

4.6.1 Vrio Matrix

Resource / Valuable Rare Inimitable Organized Competitive

Capability Advantage

Company YES YES YES YES Sustained

culture Competitive
Advantage

Location of YES YES NO YES Temporary

suppliers Competitive
Advantage

Technology/ YES NO NO YES Competitive Parity

Machinery

Product YES YES YES YES Sustained

quality Competitive
Advantage

As it is shown in the VRIO matrix, our company has a Sustained Competitive

Advantage when it comes to the brand and product itself. However, when it comes to
terms of technology, or suppliers, our resources can be obtained by competitors;
though the product itself can’t be entirely imitated.

4.7 Values

Honesty and transparency towards our customers and employees on how the product is
done and complies with every regulation and everything we stand for on behalf of
sustainability; passion and innovation on our brand and company culture, commitment to
customers on behalf of the quality and service we offer; and lastly teamwork and respect
with everyone that’s a part of our company.

4.8 Social Responsibility

Social responsibility means that our company has a duty to act on behalf of the environment
and society’s best interests. In our case, we work hand in hand with cacao growers from our
country that work in a completely organic, transparent and socially responsible way. The raw
material later passes through the machinery we work with, which are eco-friendly in order to
keep a positive impact on our environment as well as our product.

Eco-friendly or environmental certifications we could obtain:

❖ Fairtrade: cooperation between consumers and producers. Correcting the power

imbalance in trade relations, the instability of markets and the injustices of
conventional trade.
❖ Rainforest Alliance: environmental protection, equity and economic viability.

54
❖ UTZ: efficient sustainability program with effective certification and traceability tools
for socially and environmentally responsible cocoa production that meets the needs
of both producers and markets.
❖ Carbon Trust Standard: certifies an organisation’s impact in respect of:
- Energy usage and greenhouse gas (CO2e) emissions
- Water usage, management and effluent
- Waste management and disposal
❖ EMAS (Eco-Management and Audit Scheme): registered organisations commit
themselves to evaluate, manage and improve their environmental performance.
❖ USDA NOP - United States Department of Agriculture National Organic Program
standard: to get your products certified organic.
❖ Safer Choice: shows consumers which products perform well and are safe for human
health and the environment.
❖ Green Seal: instant indicator that our product have met or exceeded leadership-level,
life-cycle-based criteria for sustainability.

55
 Chapter 5: Marketing Plan

5.1 Marketing Objectives

The next chart shows our marketing objectives.

Objective Indicator Years Tool

s
2022 2023 2024 2025 2026

Reah a Satisfacti 50% 60% 70% 80% 90% Satisfactio

high on n Survey
percentag survey
e of client
satisfactio
n

Reach a Amount 35% 40% 45% 55% 65% Make a

high of yearly program
percentag recomme in which
e of client ndations recomme
recommen ndations
dation bring
benefits to
our clients

5.2 Target Market

5.2.1 Segmentation Variables

The below chart will show our market segmentations variables taking in consideration that
our target market is centered on men and women from 20 to 40 years old, which belong to a
medium high and very high social class in the metropolitan area of Zürich, Switzerland.

Variable Criteria Description

Demographic ➢ Men and Women Customer segment is based

➢ Medium high & very on swiss people, all men
high socioeconomic and women from 20 up to 40
levels years old, which are part of
➢ 20 to 40 years old medium high to very high
social class.

Geographic ➢ Zürich, Switzerland, Zürich is the most populous

Europe city in Switzerland with
➢ Oceanic 402,762 (2017) habitants.
climate/humid The climate is humid
continental climate continental with warm
➢ Urban, metropolitan summers in a metropolitan
area area.

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 Psychographic ➢ Healthy lifestyle Men and women with a
➢ Outgoing healthy lifestyle that prefer
organic premium products
which will bring benefits to
their health.

Behavior ➢ Positive Positive, enthusiastic people

➢ Strong loyalty which are interested in a
➢ Interested premium product with a
gourmet and organic
experience.

5.3 Positioning

The way we will achieve our positioning is through the use of branding and communication
tools that will be done through different channels. Our slogan is “100% organic and
peruvian”, so our positioning is done through the offer of a premium, organic and delicious
product.

5.4 Competitive Position

Our competitive position is all about differentiating our product with our added value. Cacao
Khuyay is not just like any other chocolate or dark chocolate bar. With our product, we sell
an experience by offering a 100% organic and premium chocolate with the same quality in all
the ingredients we use, plus the fact that we are a completely peruvian product and brand.

Being Switzerland the chocolate paradise it is, our competitors have chocolate bars with
south american cacao, yet you can’t find peruvian nor with more than 80% of cacao.

Besides, we will count with three essential methods in order to provide value at the highest
level. These are, operational excellence by producing a premium product at a low price in
comparison with competitors, product leadership by offering the best quality and staying one
step ahead than our competitors in terms of product innovation, and finally customer
intimacy by getting to know as much as possible our clients and their wants and needs in
order to deliver it to them correctly over time.

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5.5 Marketing Plan

5.5.1 Product

The next chart will include our product explanation.

Product Level Description

Basic Chocolate bars made of pure peruvian

cacao.

Added Value Our chocolate bars are made of purely

organic ingredients from Peru with a
minimum of 80% cacao, which is
considered a “superfood”.
Between the benefits cacao bring you, we
can find that it is highly nutritious containing:
➢ Fiber
➢ Iron
➢ Magnesium
➢ Copper
➢ Potassium
➢ Zinc
It is also rich in antioxidants, may improve
blood flow and lower blood pressure, reduce
heart disease risk, protect skin and improve
brain function.

It should be eaten with moderation.

5.5.2 Price

The suggested price that our company has established for our product is Fr. 11.20,
which is the currency used in Switzerland, the “swiss franc”. It is equivalent to
S/.41.70 or US$ 11.76.

We have chosen this price after carrying out surveys and analyzing the costs, the
labor and raw materials. This way we were able to determine the value and price of
our entire product.

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 5.5.3 Promotion

With our promotion, the goal of the company is to increase the number of sales. We
will explain it in the below chart.

Type of promotion Details

Social Media Create social media accounts for our

brand in order to reach out to our
potential customers and displaying what
we have to offer. This will include
special offers and complete details on
our product.

Mailing Customers will be able to subscribe via

email in order to receive special offers.
Also, in case they recommend our
product they can receive gifts or gifts
certificates

Online Advertising Pay for publicity and adds inside the

social media for specific publications we
may want to get more attention.

5.5.4 Place

All of our marketing strategies are planned in our office located in Lima, Peru and carried out
through different channels to our international market in Zürich, Switzerland.

5.6 Marketing Budget

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5.7 Marketing Schedule

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 Chapter 6: Plan of Operations and Costs

6.1 Objectives of operations

In this chapter, we will analyze the factors that are imperative on the development of our
product. The manufacturing process of our product is structured, including the raw material,
supplies, and machinery and tools. Is also included the location of our production plant and
its inside blueprint. We will also present the conformation of the production process in which
the raw material becomes our final product.

As part of our objectives we have:

Operations Objectives

Cost
❏ Optimize the processes in our company in order to reduce costs.

Quality
❏ Offer the highest quality possible in terms of products process and
machinery.

Flexibility
❏ Be more efficient than our competitors in terms of flexibility when
having to change a product.

Deliver
❏ Complete our orders in the time required and stipulated in the
contracts made.

6.2 Operations Strategy

The product our company produces is made of 100% peruvian and organic ingredients
including 80%+ cacao. Our aim is to exploit the properties organic cacao has to offer by
offering it in a delicious snack as a 80g chocolate bar.

The strategies that will help on achieving our objectives are:

❏ Make annual machinery maintenance to make sure they work at their best.
❏ Produce the amount of bars accordingly to the demand.
❏ Completely supervised process.

6.3 Location and size of plant layout

Location:

❏ The plant is in Lima, Peru

❏ Area: 470 m2
❏ Electric Energy
❏ Water

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 ❏ Transportation facilities

6.4 Design and process description

Strategic Processes: The importance of these processes is described as critical factors for
the operation of the company

● Planning and marketing strategy: A marketing plan establishes the goals and tactics
of every marketing campaign. It keeps everyone in your organization on the same
page about the direction and purpose of your marketing efforts. A marketing plan also
provides a way for you to measure your success
● Financial and accounting management: It presents the processes and financial
control over the company and its operations
● Recruitment and training of workforce: Finding and retaining the right employees is
fundamentally important to business success. Therefore, the processes and
requirements for each job position are generated.

Operational Processes: They are a set of activities focused on the operational procedures
that the company will need to have in place to offer its service.

● Production process: Creation of procedures to help in the manufacture of an article or

articles. These are generated according to the area of operations. So, they range
from logistics to the final production of premium chocolate.
● Supplier contracting process: Search for suppliers according to the parameters
established by the company such as the quality of the cocoa grade that the potential
supplier should offer.
● Process of adaptation of the office, administration and warehouse area: Definition
and implementation of all areas of the company for its efficient operation.

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Support processes: Set of processes aimed at the operation of machinery and product
quality.

● Quality process control: Monitoring the product to offer high quality standards.
● Machines maintaining: Planning and control of scheduled maintenance of all
machinery.

6.5 Fixed costs, variable costs and total cost

Fixed costs:

Variable costs:

TOTAL COSTS:

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6.6 Product Cost, Cost MP Cost MOD and calculation of VAT

Product composition:

Raw material:

Chocolate bar composition

Package:

Raw material cost per unit:

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DIRECT LABOR FORCE:

65
Indirect manufacturing cost:

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6.7 Breakeven

The following chart is in american dollars, swiss franc and in units.

6.8 Preoperative Budget

6.8.1 Investment tangible fixed

67
68
6.8.2 Investment intangible fixed

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 Chapter 7: Organizational Structure and Human Resources Management

7.1 Organizational Structure

The structure of the Cacao Amör SAC is designed to facilitate the operations of the
company. As it is still a small company, it was thought to design a simple but effective
structure that has areas focused on the type of business that will be carried out. This
simplified design is used by many companies that are just beginning their operations. We
must take into account, since the main objective is the sale abroad, we will have an area that
structures the sales and exports of our product.

The following table is the organization chart of our company. This design is based on the
current needs for the start of the company's operations:

❏ At the highest level is Board of Shareholders which is made up of the members of

the group that make up the company.
❏ In this case, we are 4 shareholders with a participation of 25% each. In addition, each
investor will be in charge of a management position in the company.
❏ At the first level, the General Manager is in charge of the direct management of the
company.

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 ❏ At the second level are the following Management: Marketing, Human Resources,
Accounting, Operations & Production and Systems.
❏ The marketing area is made up of the manager, a community manager and Sales,
and an export area.
❏ The human resources area is in charge of the recruiting department to acquire the
necessary labor for the correct operation of the company.
❏ The accounting area is in charge of the economic management of the company's
activities.
❏ Within the area of operations, the management of production, security and cleaning
in the company is supervised.
❏ Finally, the systems area will be in charge of the support of the machinery and all the
electronic material of the company.

7.2 Flowchart

In the following flowchart of Human Resources Area, we show the steps of the activities
involved in the recruitment and selection process of Cacao Amör SAC staff. The flow chart
covers the search for the candidate, selection of the candidate to hire, integration of records,
and the hiring of staff. The entire process has will last 22 days.

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7.3 Objectives Human Resources

❏ Objective 1:
To promote the commitment of the collaborators with the mission, vision and
values of our company Cacao Amör SAC.

❏ Objective 2:
To maximize the skills and abilities of our collaborators to optimize productivity
and guarantee favorable results that our company demands.

❏ Objective 3:
To develop and maintain suitable organizational conditions to achieve total
satisfaction in our collaborators.

❏ Objective 4:
To supply all areas of the company with an efficient and qualified workforce to
achieve the objectives of the organization.

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7.4 Human Resources Policies

As a company "Cacao Amör SAC", we will define human resources policies that will be
implemented so that the work within our company is developed optimally and in this way, it is
more feasible to meet our business objectives and improve corporate development. Below,
we will indicate the policies that our organization will initially have:

❏ Working hours/days Policy

The working hours / days policy that our company manages will be
based on Peruvian labor laws. Likewise, the ordinary working day for
men and women of legal age is 8 hours a day or 48 hours a week, 6
days a week (Monday to Saturday). In addition, the worker will have a
1 hour snack time to be granted during working hours.

❏ Absences/Tardiness Policy

The absence of the worker will only be admitted for health or greater
nature of extreme need prior coordination with the superior. For its
validity, it will be required the presentation of the medical certificate or
similar depending on the case.

Unexcused absence will be sanctioned with the non-accounting of

working hours and daily pay, in addition to obtaining a wake-up call. In
the presence of three attention calls, the worker will be dismissed.
There is a 10 minute delay tolerance. After that time, the worker's
assistance will not be considered.

❏ Vacations Policy

Workers will have one month of vacation after one year of work. This
cannot be postponed or replaced by working hours without exception.

❏ Working Contract Policy

The workers will start with a provisional contract for up to 6 months in

which their capacities will be evaluated in the position. After that, the
contract will be renewed annually.

❏ Payment days Policy

Cacao Amör SAC will incorporate the highest excellence personnel

available, for which we will establish salary levels according to the
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 work to be performed, and the salaries will be adjusted to the labor
market. The salary of operational workers will be established
according to the production process where they work, with the
minimum salary to be paid S/ .930.

7.5 Monthly and Annual Payroll

The following table shows the monthly and annual payroll, which represents the amount of
money that collaborators cost our company. In addition, the table describes the calculations
of the benefits according to law that correspond to our collaborators at Cacao Amör SAC.

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 Chapter 8: Finance Plan

8.1 Objectives of Finance

❏ Obtain a margin growth of 12% by year.

❏ Recover the investment in a period of three year.
❏ Pay off the loan in three years.

8.2 Data

❏ Amounts are expressed in USD.

❏ The sales tax is considered to be 18%.
❏ The income tax is consider such as 29.5%.

8.3 Assumptions

❏ We assume that the exchange rate will remain at 3.30 soles per USD for the next 5
years.
❏ There will be no inflation or devaluation.
❏ Operators have no children.

8.4 Policies

❏ Payment of salaries will be made monthly.

❏ The salaries will increase starting the second year.
❏ Salary increment will be of 5% per year.
❏ Other payments will be done in their scheduled dates.

8.5 Capital Structure

Investment Structure

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Loan payment

76
Loan payment per year

8.6 Cash flow budget

77
8.7 Financial cash flow

8.8 Financial indicators

8.8.1 Calculation of COK and WACC

78
8.8.2 Economic IRR / Financial IRR

8.8 3 Economic and Financial VAN

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 Recommendations and Conclusions

As a recommendation for future people that, like us, would like to export and sell a peruvian
organic product, is to be sure of what you want to accomplish with your product. What we
mean is to take in consideration not only how the product will be done, but also what it will
represent s a brand and to customers.

It is immensely important to take care of every detail, including: suppliers, production, the
people that will work by your side during the entire project, the machinery, every financial
and operational detail.

It is a project to take care of from the very beginning of just and idea, up until the point when
the product will finally be in hands of the final consumer. This will take a lot of time and
commitment, for why everyone should be prepare for it.

As a conclusion, by looking at every single detail involved in the elaboration of our product
we consider that our project should and can be implemented. Due to the financial results we
have accomplish, the “Cacao Amör SAC” - “Cacao Khuyay” project is economically viable
and financially profitable.

80
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 Annexes

Annex: Business Model CANVAS

because we need to see the gradual growth and evaluate if it is according to plan.

According to the projection. we will need 1200000 to carry out the construction and
implementation of the Hotel. Besides, W

Por lo que se realizará mediante la inversion de los socios y prestamos financieros.

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Actualmente el desarrollo de las industrias gracias al avance de la tecnología y la
implementación de nuevas formas para su crecimiento. Se han visto dentro de una mejor
época. Sin embargo, la industria creció, pero algunas empresas no se adaptaron y no se
enfocaron en lo que realmente les permitió crecer en un principio que fue centrarse en la
necesidad del cliente y solo se centraron en el producto o la creación de uno nuevo. EL
principal mensaje del video de Marketing Myopia es justamente tener la idea errónea de las
empresas de enfocarse en el producto, teniendo en cuenta la amplia visión que el cliente
puede tomar a la hora de escoger un producto, muchas otras empresas aprovechan este
tipo de ideas para poder crear un producto que satisfaga al cliente. Un ejemplo claro es
Hollywood quien definió incorrectamente su negocio, creyó que su negocio eran las
películas cuando en realidad su negocio era el entretenimiento que era exactamente lo que
el cliente quería (Theodore Levitt, 1960). Esta idea provoco un malestar por parte de
Hollywood contra la televisión, quienes no supieron aprovecharlo para poder expandir la
industria del entretenimiento. Sin embargo, este tipo de casos siempre suele ocurrir y mas
cuando una industria esta en crecimiento cree que se podrá mantener en ese nivel y
simplemente ocurre una decadencia precipitada.

Finalmente, Creo que todas las empresas que conforman una industria tienen que tener
claro su enfoque de negocio y poder suplicar las necesidades que esto lo requieran, como
crean nuevos productos o adaptando los productos para los clientes. Además, aprovechar el
avance de nuevas formas o industrias que puedan surgir para el crecimiento de ambos.

The industries are development thanks to the advancement of technology and the
implementation of new ways for their growth. However, some companies did not adapt and

85
did not focus on what really allowed them to grow at the beginning, which was to focus on
the customer's need and not only focus on the product or the creation of a new one. The
main message of the Myopia Marketing video is precisely to have the wrong idea of focus
on the product, taking into account the broad vision that the client can have when choosing
a product, many other companies take advantage of this type of ideas to create a product
that satisfies the customer. A clear example is Hollywood, which incorrectly defined its
business, they believed that its business was the movies when in reality its business was
entertainment, which was exactly what the client wanted (Theodore Levitt, 1960). This idea
caused an unrest on the part of Hollywood against of the television, who did not take the
advantage of it to expand the entertainment industry. Nevertheless, this type of case always
tends to occur and more when an industry is growing, they are believed that there can be
maintained at that level and there is simply a precipitous decline.

Finally, I believe that all companies that make up an industry have to be clear about their
business approach and be able to meet the needs that require it, such as creating new
products or adapting products for customers. Also, take advantage of the advancement of
new forms and the growth of new industries.

Reference:

Theodore Levitt. (1960). Marketing Myopia by Harvard Business Review. Retrieved from
https://brgadvisorygroup.com/wp-content/uploads/2017/11/Marketing-Myopia-Article.pdf

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UVK

87
Cinepolis

88