5. Describe the problems Darlings is facing on the domestic market. Give your recommendations for improving the situation.

The total market has continued to expand. Sales that quarter ( ending march 2007) were approximately 330 m.pounds. at retail value. Darling’s share of the total market has declined to approximately 23% from (ending march 2006) 27%. Greenbackers and Britannia Biscuits have developed their share of the market.

Boxed Chocolates

This sector appears to be static. But Darlings lost the leading position in this sector and their share has dropped mainly due to Associated Chocolates. AC launched a new brand called ‘Pierrot’ and ‘The Colonel’s Choice’ has lost share to this brand. To improve this situation Darlings should update the image of ‘The Colonel’s Choice’ which was badly affected by ‘Pierrot’ and carry out an advertising campaign.

Large Chocolate Bars

This sector has dwindles but Darlings still the brand leaders in this sector with ‘Villager’s Block’. The demand can only be maintained by reducing profit margins. Darlings should reduce sales or retained them on the current level.

Small Chocolate Bars

This sector is continuing to diminish gradually. The sales of Darlings are growing steadily. Darling’s ‘Devonshire Cream Bar’ has performed well, holding 19% of the sector but they cut margins in order to maintain consumer demand. Associated Chocolates are leaders in this sector. Darlings should develop more seriously.

Miscellaneous Products

This sector is developing very slowly. Greenbackers are leaders in this sector with their new range. They have enlarged their distribution by offering high profit margins to retailers. For Darlings this sector is not promising because they have the smallest increase. But the whole sector is quite promising because from 2003 to 2007 the sales were increasing.

Chocolate Biscuit Bars

Darlings are not present in this sector. But this is the most promising sector because the retail value has increased by 78%. Darlings should enter this sector because Chocolate Biscuit Bars are the most popular with people for its low price. (it’s like a snack) and also, the main reason is the fact that in Chocolate Biscuit Bars is used less chocolate because cocoa beans are expensive and cheaper ingredients are used un production. Darlings should penetrate this sector and start to produce their products.