Montreaux (1)

A case study on Montreaux Chocolate

1. Case Study- Montreaux Chocolate USA: Are Americas Ready for a Healthy Dark Chocolate

2. COMPANY BACKGROUND company Apollo Foods Location Los Angeles, California, USA Industry Food Products Confectionary, Biscuits, Snacks, Cheese, Beverages, Convenient meats Division 4 divisions, 1 of it is Consumer Foods Group (CFG) Distributor 170 countries world wide Market share Second place in US chocolate market Year 2011 Revenue- $54.4 Billion Net Income- $3.5 Billion

3. CHALLENGES To Introduce a new Product Product Name-Apollo or Montreaux Positioning Channels of Distribution Packaging Being pioneers at chocolate making

4. DEMANDING GOALS National Distribution $115 million annual sales Be in top 25 in revenue (0.60% Market Share )

5. INDUSTRY FACTS Apollo held a 15.4% share in U.S. Confectionery markets, making it second highest in market share after Fisher’s in 2011 Such big market shares would imply stronger associations of Apollo with that of its confectioneries

6. CONSUMER BEHAVIOR Women preferred chocolates more than men (94% vs 90 %) High income earners preferred boxed chocolates Confection eating adult age group was noticed to be 45-64 They preferred premium and speciality chocolates As they grew older they preferred dark chocolates Montreaux brand had loyalists, women of age 45-64 representing a section of elite society

7. INCORPORATING NEW PRODUCT DEVELOPMENT IDEA GENERATION: Introducing dark chocolates in U.S 45 ideas that all parties agreed for further testing. IDEA SCREENING: Narrowed down initial 45 ideas to 12, many of which incorporated dark chocolate with fruit.

8. 3. CONCEPT DEVELOPMENT AND TESTING: Each idea was developed into a full concept via the addition of concept images, messaging, varieties and prices. 200 consumers per concept were asked to evaluate and to provide feedback. 5 concepts were finalized and further developed and the team confirmed that blueberry, pomegranate and cranberry should be among the top flavours.

9. 4. MARKETING STRATEGY DEVELOPMENT: (Marketing mix ) PRODUCT: High quality Good taste Comes in varieties (flavours include pomegranate, cranberry, blueberry) 3.5-ounce candy bar and 5-ounce stand-up pouch 70% cocoa PRICE: Each 5-ounce pack is priced $4.49

10. PLACE : USA Distribution channels: Super centers Supermarkets Drug stores Convenience stores 5. BUSINESS ANALYSIS :

11. 6. PRODUCT DEVELOPMENT: NPD developed 4 refined 70% cocoa dark chocolate with fruit concepts Packaging/size : 3.5 oz. bar Vs. squares in a 5 oz. stand up pouch 7. TEST MARKETING: Participants were shown headline descriptions and were given samples of the four products

12. TO LAUNCH OR NOT?? These goals are achievable by Apollo as it has a revenue of $54.4 billion in 2011 They are 2 nd in the Global market with a share of 15.4% The global confectionary market has been on a rise with 2.8% growth rate between 2007 to 2011 The revenue for chocolates in this confectionary market has increased 30% from 2007 to 2010

13. The US chocolate market is expected to grow at 2% by 2015 The target audience of these chocolate was set to be people from the age group of 45-64.In USA the population in this category is approximately 27%(2011) Apollo in the past 3 years has innovated 70 new products and all have been successful, there is a strong brand value that Apollo carries with it which would be beneficial C onsumers in US focus on fitness and health , Apollo have an upper hand in launching the Montreaux dark chocolate as it is low in calorie and as it has more of cocoa content.

14. Thank You By:- Kavya Harshitha Goutham Vivek Bheemendra