The investment project on
Valentino Chocolates
Date of Submission: May 16,2014
Contents
Introduction……………………………………….....2
Discussion& Findings……………………………….2
Conclusion…………………………………………...3
Recommendations…………………………………...4
Summary……………………………………………..5
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Introduction
Background:
Valentino chocolates are made in Turin, Italy. The Valentino Company’s products won a delicious and unique taste .Valentino has won many international awards. The company expanded fast. It has large-scale coproduction and sales. Why profits falling:
However, in the last two years, the company has emerged some problems. Firstly, there is a widespread price cutting in the industry; Secondly, factory machines often break down; Thirdly, demand for its Classic Bar is falling;
Fourthly, Valentino's new products, biscuits and cakes, are not selling well; Finally, the staff’s morale is low.
Discussion& Findings
Before our discussion, we have 10 choices about the investment, but we have only �1.5 million. So we have to choice some more necessary items from them. Follows are what we have thought about these 10 items. 1. Extend the factory. �500,000 Increase the factory’s capacity by 30% But it is not the most important, it cost too much. 2. Buy new machinery. �200,000
End the delays caused by the old machines breaking down Most of the machine is need to repair.
3. Invest in more research and development. �200,000
Develop new products such as a low-fat chocolate drink, new biscuits/cakes. Many girls like these things. It isn’t the company most need to do. 4. Buy out a local competitor. �1.5 million Reduce local competition.
But it cost to much money, we can’t do anything else.
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5. Establish a factory in the US. �1.3 million Manufacture chocolates in a major new market But it cost too much money, we can’t do anything else. 6. Launch a marketing campaign. �500,000 Increase sales of all products. We can know what we need to do first.
7. Finance a market survey and research trips to the US. �100,000 Assess the marker potential for Valentino products.
We can know what people like, then we can do in the true way. 8. Invest in an existing group of cafes. �500,000
Become a partner in cafes which sell and promote Valentino chocolates. 9. Set up online sales. �150,000 Increase sales and profits.
Online sales are the new way to sell things, there are more and more people like shopping online.
10. Buy a new fleet of cars. �500,000 Increase motivation of the sales staff.
It isn’t the most useful way to inspire the sales staff, and it also cost to much.
Conclusion
After our discussion, we have made our final choices: 1. Buy new machinery;
2. Launching a marketing campaign;
3. Finance a market survey and research trip to the US; 4. Invest in an existing group of cafes; 5. Set up online sales.
We believe that in order to improve company sales levels, to buy new machinery and launch a marketing campaign is the most necessary. Firstly, we all know that our factory machine is always break down, not only slows down the production speed, and this poses a threat to the health of employees. Secondly, launching a marketing campaign can increase our competitiveness and strength the innovation ability. However , all of them can help our company sell more products.
Recommendation
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