Montreaux Chocolate Case Study: Are Americans Ready for a Healthy Dark Chocolate?

Montreaux Chocolate Case Study: Are Americans Ready For A Healthy Dark Chocolate?

Mark A. Alvarez

Southern Eastern Oklahoma State University

Montreaux Chocolate Case Study: Are Americans Ready For A Healthy Dark Chocolate?

Introduction

In today’s modern society chocolate is perceived as one of the guilty pleasures enjoyed by the majority of people due to its basic characteristics of being a sweet milky treat. The reality is now with this major move towards wellness and fitness has in turn created an overall desire for a healthier alternative snack dark chocolate, which has flourished amongst the American consumers.

Dark chocolate has gained momentum as a healthier alternative which essentially meets the basic needs to satisfy the majority of consumers taste buds, which is produced by refining cocoa beans.  The Consumer Foods Group also known as CFG of Apollo Foods is a company that was acquired by the Swiss Montreaux Chocolate Company, which is a global consumer goods packager. This merge in companies has proven highly advantageous due to in large because the global confectionery market is significantly profitable with respects to chocolate. Needless to say, that the market’s total value shared is 52% and has an anticipated growth rate through 2015 in the United States of 2% (Quelch, J. A., & Badame, D.,2013).

The relationship due to the acquisition has proven not only rewarding but also profitable for both parties. The reality is that in respects to their own business goals the move towards a new product launch is listed as one of there main priority for the following three consecutive years. Apollo Foods and Mantreux Chocolate had a few key challenges which they are going to evidentially face like how they will introduce the new product effectively, when should the product be launched, and even how the product should be packaged and positioned.  

Brief Company Background

Apollo Foods is a massive company that primarily focuses in consumer-packaged goods that is based out of Los Angeles, California. This organization has been very profitable generating $3.5 billion in net income and $54.4 billion in revenue (Quelch, J. A., & Badame, D.,2013). The products produced by Apollo foods range from an array of consumer goods such as snacks, biscuits, cheese, beverages, and other types of items of similar nature. Apollo Foods has provided a “better-for-you” offering due to the fact that they have successfully produced more than 70 new product innovations in the time span of the last three years.

They have also managed acquiring the not only the rights but also the ability to distribute and manufacture the chocolate products of Montreaux’s European in the United States to in turn increase market shares. They have their means of expansion into the United States and also a more well-defined established presence in the chocolate market through their Switzerland chocolate focused company. One of the most recent division developments by the Apollo Foods organization to name David Raymond the Montreaux Chocolate USA division manager. He is a highly educated and also achieving individual with goals for a new product line that will be developed and launched by the director of new product development Andrea Torres.

Problem Statement/Declaration

        The overall primary targeted market for Montreaux Chocolate’s new product line which is supported by the cases data provided is the “everyday sophisticates” or “bliss consumers”. The reality that surrounds these types of consumers is that they are generally female that are health conscious, 45-64 in age, college educated, married with children, and with an overall income of $50,000+ that are more likely to buy chocolate. These types of female individual are 4% statistically more likely to buy/purchase chocolate (Quelch, J. A., & Badame, D.,2013). This is due in large because they associate chocolate with an overall positive experience, but most importantly are enticed by the wellness and health benefits associated with that of dark chocolate. These types of targeted individuals are perfect for there new product line since they are typically willing to experiment with new foods and also brand loyal. Needless to say that they also purchase chocolate for enjoyment of themselves and highly value premium, convenient, and quality chocolate associated options.  

        David Raymond who is the division manager of Montreaux has clearly established three strategic as well as aggressive objectives with respects to probable new product line which was later given to Andrea Torres to execute in a three-year timeline. The three strategic objectives are one national distribution of the new Montreaux product line, two $115 million in annual sales, and three be in the top 25 in revenue (0.60% market share) (Quelch, J. A., & Badame, D.,2013).

The reality is the Andrea Torres having these specific goals in mind needs to decide if she should complete further product testing, launch in selected test markets, stage a reginal rollout, or launch rationally. In order to be able to achieve the three strategic objectives that were set by her division manager David Raymond, she will also need to determine the positioning, packaging, and product name. The overall recommendation that is proposed by this particular case study will serve to satisfy Andrea Torres target market that will also address the concerns and objectives set by division manager David Raymond.

Problem Recommendation

        In overall problem recommendation with respects to Montraux Chocolate USA should use Montreaux in order build brand equity of their new product line launch for the European company. In order to promote consumer awareness that Apollo Foods’ product but also a sub-brand of the company they must place their name on the packaging. The reality is that brand name/value is well established with respects to Apollo Foods and in turn will cause consumer not to question the brand credibility. Supermarkets should offer this new product line in order to obtain the best possible purchasing convenience and also prime positioning as a premium dark chocolate.  The premium dark chocolate should be perceived as one that provides significant health benefits in order to be able to completely gratify their initial targeted market, which are mainly focused on health and wellness.