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1 Investing and Financial Markets Name Institutional Affiliation Course Name Professor Name Date

2 Overview of Canada Candy Company The corporation was established in 2017 in Ontario, Canada. Ideally, the business was invented when Vertlieb started making lollipops in his kitchen and then sold them out of his home like it was a candy store. The company’s main focus is to create a bulk Candy Company that embraces the evolving needs of its customers. it firm has been careful to keep up with what Canadians and candy lovers around the world are looking for. This sweet Canadian company manufactures their huge variety of candy right in Cobourg, Ontario and it operates in the U.S and Canadian Markets. It is governed by two executives, has close to 1000 workers and its board of directors comprises of 11 members. One of the biggest strengths of the company is its low-cost structure since it has a large variety of candy to choose from. Product to Extend in the Market The product that I would want to extend into the Canadian market is chewing gum. I want to expand this product line into the Canadian market because the growing population in the nation has led to high demand for chewing gums, fueled by the impetuous behaviour of consumers. The country is witnessing campaigns and media ads associated with innovative chewing gum products, impacting the sales rate of sugar-based product. I would purchase the product from Candico India Limited since it produces the best gums and at an affordable price. Market Gap The gum industry in Canada listed a progressive compound yearly growth rate(CAGR) of 2.43% during the period 2015 to 2021 with a sales value of CAD 639.30 million. This is primarily due to the growing number of young population who are the prospective consumers of chewing gums in the country. However, only a small number of chewing gum companies are

3 operating in the market, thus creating a situation where demand is high, and the firms cannot keep up with the growing demand. Hence the market gap. Potential for Growth in the Canadian Market Children and youth represent one in four people in the Canadian population of 38 million . This signifies that market demand will always be high because the target consumers of the gum business are children and young people. For Canada Candy firm, this line of business would always have the potential for growth because of the high number of potential consumers and the low number of local companies producing and selling chewing gums. Competitors Operating in Canada The gum market remains highly consolidated in Canada, with two key players. Mars Wrigley Confectionary Canada and Cadbury Adams Canada. This two companies account for close to 85% of retail value sales. They have diverse market positioning and pricing strategies, even though they feature similar distribution strategies. Given that Canada Candy chewing gums will be a fresh, innovative product entering the market, it will embrace penetration pricing, which aims at swiftly gaining market share by setting a primarily lower price than rivals. Overview of the Supplier and Why I chose the Supplier The supplier I would choose is Candico India Limited. It is a multinational confectionery headquartered in India. It began operations in 1997 and by the year 2002 it had grown to be the second largest confectionery company in India. The reason I chose this company as my supplier is because it sells its gum products at a cheaper price mainly because of cheap labor that is readily available in India. Hence I would be able to sell the candies in the Canadian market at a lower cost than rivals.

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4 Reference List Matthews, D. (2020). Lost restaurants of the tri-cities, Tennessee LLP, F. M. R. (2021, May 25). Global Candy Market Is Expected to Reach USD 290.7 billion by 2028 : Fior Markets . GlobeNewswire News Room. https://www.globenewswire.com/news- release/2021/05/25/2235013/0/en/Global-Candy-Market-Is-Expected-to-Reach-USD-290-7- billion-by-2028-Fior-Markets.html

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