Dhark Coco, Online Chocolate, Confections, and Treats Boutique

Business Description

Dhark CoCo is on online chocolate boutique offering couture chocolates, confections and

baked goods. Dhark Coco, a luxury brand, is for the chocolate connoisseur wanting to explore

unique flavor profiles from all over the world, the business professional looking to impress their

clientele, and is the perfect gift during the holiday seasons. Dhark CoCo will become more than a

chocolate, confections and treats brand but will transform into an academy for the home baker

learning to perfect their craft. Physical demonstrations, classes, cookbooks, video blogs is what

the future holds for Dhark CoCo. The chocolate and confection industry is a powerhouse that is

expected to have continuous annual growth and by 2017 have sales of $21.4 billion, with

chocolate accounting for over 20% of those sales. We will specialize in seasonal gifts, special

events, and to satisfy the everyday craving for something sweet. This luxury brand will take it’s

share in the market by delivery excellent customer service, creating a superior product using high

quality ingredients,

Mission Statement: To satisfy every sweet tooth, chocolate craving and to provide luxury gifts

for all occasions.

Company Goals and Objectives: Goals:

year

• Host a launch party to invite potential

customers to experience what I have to

offer

• Brand awareness mainly through social

media awareness, using the promotion

tools that Instagram, Facebook, and

Twitter have to offer

• To have a customer in at least half of the

states in the country

• Attend 3 wedding expos or other events

as a vendor to get the company name out

there

• Focus on Search engine optimization

• Partner which popular brands that will

promote our business

• Have products sold in a retail shop such

as Whole Foods or Neiman Marcus

• Cater desserts at least 5 local celebratory

events

• 2,000 followers between Instagram and

Facebook business pages

• Featured on a local news station, or

major media outlet

• Professional development class at the

Chicago Chocolate Academy

• Gross sales of $20,000

• Hire one employee

5 years

• Gross sales of $100,000

• Ship internationally

• Move into own space

• Follower base of 20,000 and more

• Space to include filming kitchen

• Host cooking/baking demonstrations to

the public and private classes

• Launch cooking/baking YouTube

channel, to generate another source of

income

10 years

• Write and publish cookbook

• Book tour, traveling the country teaching

classes

Business Philosophy: To create a luxury product, with quality ingredients found from all over the

world, catering to the needs of the chocolate connoisseur to the superb gift giver and all in

between, while delivery memorable service.

Market Analysis

There are several segments I plan to market my product and services to. There are four

categories: People hosting celebratory events, Business professionals, Holiday season gifts

(Mainly Valentine’s Day and Christmas), and high income level households.

Chocolate contributes to the majority of the $34.5 billion confectionary industry in the

United States. Chocolate sales accounted for $21.1 billion of the candy industry in 2014 which

was a 2.9% increase from the previous year. The greatest growth was in premium products,

which expanded 11%, and in dark chocolate products, which grew 8%. Sales are expected to

grow another 6% by 2017 to $22.4 billion. Seasonal candy is also a major driver of the

confectionary industry, in 2014 it accounted for over 21% of sales ($7 billion). Premium and

dark chocolate are the strongest segments of the market in the United States. I foresee this

industry with constant growth, especially in the specialty (holiday) segments and in dark

chocolate, with the health studies revealing that dark chocolate is good for your health.

Dhark CoCo will succeed because of the unique, personalized, product and services

offered to potential customers. My company will emphasize building relationships with clients,

something the major companies are missing the mark on due to mass production and an

overwhelming variety of products offered. The products used will only be of high quality, found

from around the world to provide a memorable experience to the chocolatier. Dhark CoCo’s

major competitive strengths will be a heavy presence on all social media outlets, targeting every

potential segment for the various occasions and needs for chocolate. We not only provide

chocolate and confections but baked goods as well, catering to special needs diets such as sugar

free, gluten free, and vegan. We are able to not only have an online presence but be able to

physically cater locally as well. Dhark CoCo will transform from a business that provides

products to a business that also provides learning opportunities for the chocolate connoisseur that

wants to develop their skills in chocolate making

Targeted Market:

• 25 years old and up

• Male and Female

• United States

• $70k and up salary

• Upper middle and upper class

• Individuals in need of purchasing for

luxury gifts during the holiday season

and other special events

• Bachelor’s degree or higher

• Lifestyle: foodies (persons appreciative

of food), the home entertainer, the

luxurious gift giver, the event planner

with high end clients, the everyday

chocolate/sweet lover

• Customers who enjoy purchasing

delicacies no matter the cost, to impress

others with their taste of luxury

chocolate and confections.

• Special diets: Vegan, Gluten Free, Sugar

Free

• Segments within my market

a) Bridal

b) Events: Sweets tables at weddings,

birthdays, and other celebratory events

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c) Business: Business events looking to

impress clients with a personalized touch

d) Chocolate Lover

For business customers, the

demographic factors might be:

• Sales industry, or other industry that

entertain/host clients

• United States

• Small size firm

• Servicing high end clients

Market Research provided by Candy USA, National Confectioners Association (more

research provided in actual business plan)

- Seasonal candy accounts for more than $7.2 billion each year, accounting for 21%

percent of annual

- Premium chocolate sales grew nearly 11% in 2014

- Overall confectionery market saw moderate growth in 2014

- Generating an estimated $21.2 billion in U.S. retail sales, chocolate remains the largest

sub category in confectionary

- More than 40% of online candy shoppers have purchased candy from specialty

confectionery retailers

- Confectionery is a seasonal powerhouse for U.S retailers, growing nearly 8.5% during the

Valentine’s Day, Easter, Halloween and Winter Holiday seasons in 2014 over 2013

- Grocery stores account for 22% of confectionary sales

- Confectionery industry is a $35 billion industry

A survey was created using Google Forms to gauge family and friends about their chocolate

consumption. I have so far received a good amount of responses by promoting the survey on my

social media accounts. The shortcoming of the results is that the people filling out the form,

don’t necessarily fall into the targeted market, so they wouldn’t even fathom buying luxury

chocolates or confections, but the feedback/concerns were still helpful.

https://goo.gl/forms/ehyAGsIuoxJc39Fz2

For more accurate data, I plan to host an “eye tracker” with individuals from my target

market to compare how my packaging holds up against the known brands. I also plan to host a

focus group with individuals in my target market, that includes tasting products, asking price

point questions, preferences, and more.

When examining my main competition/chocolate companies I am inspired by, the prices

vary. In order for Dhark CoCo to be perceived as a luxury brand, it not only must deliver luxury

products but also the price must match as well. Some of the high end established chocolate

companies sell 3# of a variety of chocolate candies for $398 (La Maison Du Chocolat) whereas

Godiva charges $78 for their signature assorted box of bon bons. My pricing will first depend on

my food & labor costs, but I would like to fall into the “Godiva” price range. As a new start up,

this may be a challenge with high prices, but I will not sell my company or my skills short in

order to successfully enter the market. The quality ingredients and luxury packaging will dive up

my food and wrap around costs, so I will have to price accordingly. In my projected 12 month

profit/loss, I assumed my food cost was at 18%.

Products and Services

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Chocolates can be customized in color, logo, messages and names are available for a

specialized touch

Cake Jars:

Cake Jars will be sold by the half dozen,

assorted box also available, can

customize for special events and

occasions

• Chocolate (Devil’s Food Cake) Dulce

De Leche, espresso Swiss buttercream

• Chocolate, raspberry, ganache, chocolate

buttercream

• Chocolate, peanut butter buttercream,

pretzels, caramel

Cookies:

Cookies will be sold by the dozen,

assorted boxes available by 2 dozen

• Brownies

• Chocolate Chip

• Peanut Butter

• Macarons

• Almond Raspberry Thumbprint Cookies

• Almond Spritz Cookies

• Chocolate Almond Espresso petit fours

• Oatmeal Raisin

Vegan:

Sold for the half dozen for cake in

mason jars, cookies sold by the dozen

• Chocolate Chunk Cookies

• Peanut Butter Cookies

• Red Velvet Cake, Cream Cheese

Gluten Free:

Sold for the half dozen for cake in

mason jars, cookies sold by the dozen

• Peanut Butter Banana Oatmeal Raisin

• Chocolate Cake, buttercream

Sugar Free:

Sold for the half dozen for cake in

mason jars, cookies sold by the dozen

• Chocolate Brownies

• Chocolate Cake

• White Chocolate Chunk Cookies

• Red Velvet Cake

Chocolate & Confections

Bon Bons & Chocolates: Flavor sold by

1 dozen or signature bon bon box of 24,

colors can be customized

• Vanilla milk chocolate

• Dulce de leche coffee

• Toucans

• PBJ’s

• Tropical flowers

• Mint fondants

• Cherry Cordials

• Passion Fruit Honey

• Strawberry Balsamic

•

Truffles: Flavor sold by 1 dozen or

Signature box of 24 truffles

• Liqueur ganache, chocolate labels with

personal messages can be created

• Amaretti

• Lavender

• Caramel ganache

• Passion vanilla

• Hazelnut latte

• Orange truffles

Confections:

Confections sold by the pound, assorted

signature boxes available

• Chocolate taffy

• Peanut Brittle

• Peanut butter taffy

• Pecan butter crunch

• Soft caramels

• Chocolate fudge

• Pecan pralines

Aerated Confections:

• Marshmallows (Gourmet S’mores

package, Chocolate bars, homemade

graham crackers) (Flavor options:

Chocolate, Coffee, Passion Fruit)

Locally:

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• Will offer services for Dessert Bars

(Items only limited to local) (minimum

food and beverage expenditure required,

servicing the Central Florida area)

• Profiteroles, traditional, caramel, and

tropical

• Crème Brulee (vanilla, lemon,

chocolate)

• Mini Tarte Tartin

• Saint Honore

• Chocolate Mousse

• Pot De Crème

• Strawberry Mousse Cake

• Key Lime Tart

• Fresh fruit Tartlet

• Pear frangipane tartlet

• Praline éclair

• Private in home classes

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Flavors will be added or removed depended on the season, availability of product, and

demand of the flavors. Will offer Holiday collections, different packaging for Christmas and

Valentine’s day.

Major concern for potential customers is quality of product once shipped. Here are several

shipping methods I plan to incorporate to ensure the high quality of the products

- Educate customers on chocolate care (melting points ect)

- Only ship Monday-Wednesday (to prevent chocolate from being held in transit longer

than three days)

- Always use 2 day shipping

- Shipping prices increase during summer for added wrap around costs to protect chocolate

during high heat seasons

- Having an in detailed “Shipping Policy” page on website

- Always provide tracking number, no P.O boxes, no signature required

Services for special events: party favors/take home gifts to guests that can be specialized but not

limited to. Other ideas include gifts for all occasions, wedding related (will you be my

bridesmaid invitations), and congratulatory gifts.

The products and services I intend to produce will be of high quality falling within the

luxury realm of products and services. My competitive advantages include providing a luxury

experience from the buying process, delivery, and follow up, couture treats catering to the needs

of the customers, open levels of communication with myself and clients, personalization of items

for the various events and celebrations. Disadvantages would be getting my products into retail

shops such as Neiman Marcus and Whole Foods, the limited amount of equipment to be able to

mass produce my products to keep up with the demand, especially during peak holiday seasons

such as Valentine’s Day and Christmas.

Competition

Being an online brand there will be several competitors in this industry. Focusing on luxury

brands and those placed in positions that I hope to be in such as high end retail shops like

Neiman Marcus.

List major competitors, and unique qualities:

Godiva Chocolatier, INC

• Large variety

• 6 truffles $17

• Signature truffles, 12 for $32

• 36 for $78

• Shows the inside of each truffle in

picture

• Gift boxes

• 12 strawberries for $80

• Adds personal message

• Thank you, business,

wedding/showers, baby shower,

congratulations, anniversary

• Sections are too overwhelming

• La Maison Du Chocolat

• 221 pieces, 3# for $398

• Tasting recommendations

• Holiday gifts, treats, bars, signature

boxes, pastries, exceptional gifts,

(hat boxes), party favors

• Vosges Haut-Chocolat

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• Pairs wine with chocolates

• Gifts under $25

• Gifts over $75

• 50 pieces of chocolate for $150

• Collections: Exotic truffle, limited

edition, chocolate bar

• Corporate gifts, party favors

• Unique truffle flavors

• Phillip Ashley Chocolates

• Small brand, yet featured on

Neiman Marcus

• Annual Chocolate subscription

• E-gifts, corporate gifts

• Flavor gallery, up close picture of

each flavor, 76 flavors, trademarked

names

• Designer chocolates, signature

collections, truffles, confections and

apparel.

• Example: Holiday, Supporting St.

Jude Children’s Research Hospital,

Taste of Memphis, World of

Whiskey, Phillip Ashley Vegan,

Gemstone Caramels.

A detailed SWOT analysis has been done including Dhark CoCo, Godiva, & Phillip Ashley

FACTOR

Dhark CoCo Strength Weakness Godiva Phillip Ashley

Importance to

Customer

Products

High end

chocolates,

baked goods,

confections,

luxury

packaged

Offering a

variety of

services other

than just

chocolate. Ex.

Classes, baked

goods, local

catering for

dessert bars

Uniqueness of

some flavors,

variety of gift

packaging

Wide variety of

products not

limited to

chocolates

Trademark

flavor names,

helping with

charity

Price

Price will match

luxury product

The product

matches the

price

May be too

expensive due

to lack of brand

recognition

Fairly expensive

but a known

brand

Fairly expensive

but a known

brand

Quality

High quality

Using high

quality products

Using those

high quality

products may

get expensive

for a start up

Pictures of each

truffle on the

inside ensuring

high quality

High quality 1

Selection

Only selecting

the most

popular

products and

flavors,

depending on

season and

demand.

Experience

using products

from around

the world, I

know what

works

Having a

limited

selection of

items compared

to competitors

Wide selection

of high quality

productions

76 bon bon

flavors, wide

variety of

collections

Service

High levels of

service delivery

is a top priority

Personalization,

being a small

business which

means being

able to take the

time to build

relationships

with customers

Operating

business by

myself initially,

may limit

Can track

order, shipping

info, return

policy and

FAQs all on

their website

Can contact

them via their

website,

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FACTOR

Dhark CoCo Strength Weakness Godiva Phillip Ashley

Importance to

Customer

Reliability

Limiting

shipping days,

only offering 2

day shipping to

eliminate risks

Will use every

measure to

make sure each

product is top

quality

Shipping

procedures,

ensuring

product

remains fresh

and cold

Very reliable Very reliable 1

Stability

Uses the best

products to

ensure quality,

Dry Ice, Ice

Packs,

Insulation,

sturdy shipping

boxes

Chocolate

becomes an

unstable

product when

exposed to high

temperature

when being

shipped

Product

shipping

through all

climates

Have had over

100 years to

master their

craft

Very stable,

retail shop only

open three days

a week to keep

up with

production

Expertise

Not a complete

expert on

chocolate but I

have ample

amount of

experience

working with it,

and have the

tools to expand

my skills

Will take more

professional

developments

to perfect my

craft

Just myself and

my experience,

not having a

world

renowned

chocolatier chef

on staff

High level High level 1

Company

Reputation

Reputation will

be based on

superb service,

high quality

ingredients, and

innovative

flavors

My personal

reputation

within my area

is positive

Being an

unknown

brand, trying to

make a name

for myself

Most

recognizable

brand, been

around for

almost 100

years

High ratings on

yelp,

TripAdvisor

and better

business

bureau.

Location

Produce items

in Daytona

Beach, Fl,

targeting all of

the United

States.

No overhead

costs due to

renting

commercial

kitchen, while

being able to

service locally

as well

Being in a

location where

my luxury

products don’t

quite fit. Being

online, people

are hesitant to

order online

because of

melting or lack

of freshness

Website,

Closest location

is in Sanford,

Florida

Three retail

stores: Neiman

Marcus,

Horchow,

Horsehoe

Tunica,

Corporate

location is in

Memphis, TN

Appearance

Will also have

unique colors

and designs for

my products

Taking time to

create eye

pleasing

chocolates and

confections

Access to

unique mold

shapes

Variety of

packaging,

excellent gifts

Unique color

combinations

and molds

Sales Method

Online/Direct

Sales

Utilizing social

media to drive

online sales

Not having a

physical store

location to

generate more

sales

Online

Sales/Direct

Online

Sales/Direct

Credit

Policies

refund/returns,

but will go

refund/returns

Customers may

be upset will no

Warm weather

guarantee

No returns or

refunds offered

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FACTOR

Dhark CoCo Strength Weakness Godiva Phillip Ashley

Importance to

Customer

above and

beyond for

unfortunate

situations

to prevent

customer fraud

refund/return

policy

Advertising

Social media,

SEO, website

Great

understanding

of content,

clear targets

within in my

market,

experience

using social

media to target

potential clients

Lack of funds

to properly

advertise like I

should

Online, has a

physical

location, social

media

Online, via

Neiman

Marcus, social

media

Image

Photos along

with gift boxes

Plan to model

images based

on Godiva

Will need

complete

photoshoot of

each item,

which will take

time and

money

Luxury, up

close of inside

Perfect photos

of each bon

bon, up close

Marketing Strategy

My Niche is luxury chocolates and confections delivering a personalized touch for the

chocolate connoisseur, hostess with the mostess, or anyone sent into a sweet tooth frenzy. Dhark

CoCo will also be an educational brand, teaching the public in an intimate setting on all things

chocolate. Promotion

Marketing and Promotion will be mainly be done through social media, website, bloggers and

other popular pages, and utilization of SEO’s. Using Facebook and Instagram, you can

specifically identify your audience, post content, interact with customers through posts and their

Facebook and Instagram live option. On Facebook you can promote specific posts for a s little as

$5 to reach a certain amount of people in your targeted audience. The goal is to post twice a day

on all social media outlets, being that my business will be solely online while posting an action

video of my producing my products at least once a week. I also plan to network with bloggers

and other personalities that have similar target markets with an established fan base to promote

my business as well. In the beginning of starting this business, I plan to attend bridal shows,

trade shows related to my industry and other events where I can promote my business. The

image I want to project to my customers is a luxury brand of artisan chocolate, confections, and

baked goods. I want the customers to view my chocolates, treats, and packaging as art. I do plan

on hiring a graphic consultant to create a luxury logo to match my brand along with brochures,

letterheads and cards, brochures, signage and table cloth. One my website, I plan to have the

option where a customer can register their information to set up a profile, to track their buying

habits and special occasions celebrated.

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When it comes to placement, my ultimate goal is to be placed in established luxury retail stores

such as Neiman Marcus. Being that the majority of chocolate sales come from grocery stores,

being placed in Whole Foods is also another goal.

Pricing

Depending on food and wrap around costs, prices may vary. Researching competitors, you notice

there is no set trend from pricing certain items. Six chocolate truffles may cost $12 for one brand

but $45 for another. Godiva is the most recognized brand amongst my targeted market, so I will

strategically price possibly slightly lower than Godiva or at the same price, it just depends on the

cost it takes to produce, package, and ship the products. My targeted customers don’t make their

decisions based on price, so I may be able to set higher prices, the shortcoming is being an

unknown brand. I will provide an in-detail food/production cost of each item.

Production

In order to produce all products for Dhark CoCo, a commercial bakery kitchen located in

Daytona Beach, Florida will be rented for 2-3 days for 5-8 hours, each day to produce and

package all items.

Financials

Due to page restrictions, not everything has been included in this document. A complete business

plan has been formulated, along with financial documents that include, break even analysis, start-

up expenses, personal financial statement, 1

year projected sales forecast, and 1

year projected

profit-loss sheet.

Break Even Analysis: $7980

1 Year Sales Forecast: $77,940

Profit-Loss Profit:

Total Revenue: $77,940

Cost of Sales: $13,979

Gross Profit: $63,911

Total Expenses: $8430

Net Operating Income: $55,481

Start Up Expenses: $10,000