In this case write-up, an analysis on the decision of projecting a new dark chocolate product made by the company, Montreaux Chocolate USA, will be given. The article includes three parts: 1) introduction of the company’s background and the key issue that the company is facing, 2) analysis and evaluation of plausible alternative solutions, 3) recommendation and rationale.
Introduction and Statement of Problem: Apollo Foods, a global consumer packaged-goods powerhouse, offered an unrivaled portfolio of brands and manufactured confectionery, biscuits, snacks, beverages, cheese, and convenient meals. In June 2011, Apollo acquired the exclusive rights to set up Montreaux Chocolate USA and manufacture Montreaux chocolate products from Swiss company into the U.S. market. The Consumer Foods Group (CFG) was in charge of the management of Apollo and intended to gain an increasing market share based on Apollo’s successes and marketing expertise as well as Montreaux’s reputations as a high quality chocolatier in Europe.
Since more and more consumers in the U.S. focus on fitness and health, Montreaux Chocolate USA consider it as a lucrative opportunity to expand its chocolate offerings including healthy products. After doing researches on chocolate confectionery market and consumer attitudes and usage, Montreaux found that dark chocolate contain flavanols-antioxidants that help to lower cholesterol while consumers pay more attention on fitness and health, so they decided to grow dark chocolate category. However, they ran into some basic issues before they want to launch the products onto market, the most important one that need to be addressed is the marketing issues including positioning, size and packaging.
Analysis and Evaluation of Alternatives:
Marketing issues includes 1) The positioning problems: health benefits as a potentially strong basis for positioning verse taste as a strong secondary message for positioning 2) for size and packaging, 3.5 oz. bar verse squares in a 5.0 ounce stand-up pouch.
After they encounter the big marketing issues, they did the second BASES Snapshot Concept Test. The diagnostic information showed that the 5-ounce stand-up pouch with healthy positioning to offer the greatest revenue potential while the smaller ounces got less revenue. The consumer landscape also has a trend in the U.S. chocolate market that economical consumers are more into stand-up pouches and bigger sizes. However, convenience was a key driver of chocolate purchase. Researches showed that consumers are more frequently to buy 3.5 oz. bar with taste messaging due to the small sizes.
Results also showed that taste was an essential message that should be combined with the healthy positioning and such a concept can help to improve the credibility issues due to the unfamiliarity of the new European brand in the U.S. market.
In addition, the team used the BASES II Testing to test the 70% cocoa dark chocolate with fruit with healthy messaging and new stand-up pouch. The results were average at best: 23% of the respondents would definitely buy the Montreaux dark chocolate product and 40% would probably buy it.
Recommendation and Rationale:
Montreaux Chocolate USA should choose the healthy and taste combined positioning and squares in a 5.0-ounce stand-up pouch packaging option.
There are several reasons that support this alternative. First and the most important reason is the diagnostic information that the 5-ounce stand-up pouch with healthy positioning to offer the greatest revenue potential found by research. Besides, as mentioned in the second part, taste was an essential message and the concept of combination of the healthy and tasty positioning can
