Montreaux Chocolate USA: Are Americans Ready for Healthy Dark Chocolate? - Case Solution

Executive Summary – “Montreaux Chocolate USA: Are Americans Ready for

Healthy Dark Chocolate?” Case Study

Traditionally, chocolate is seen as a guilty pleasure enjoyed by many as a sweet, milky treat. Produced by refining cocoa beans, the popularity of dark chocolate has consequently gained momentum due to this need for healthier alternatives. For the Consumer Foods Group (CFG) of Apollo Foods, a global consumer packaged goods company, acquiring the Swiss Montreaux Chocolate Company has proved to be an advantageous merger as the chocolate segment of the global confectionery market is quite profitable.

Sharing 52% of the market’s total value, the U.S. chocolate market has an anticipated 2% annual growth rate through 2015 in the United States. While the acquisition is deemed as a mutually rewarding relationship for both parties in relation to their own business goals, the push to launch a new product is at the forefront of the mergers’ objectives for the next three years.

Situation Analysis

Introduction

Consumer Food Growth (CFG), an American company, has purchased the right to distribute Montreaux’s European chocolate production in the USA to increase its market share. Andrea Torres was the director of new product development, and David Raymond was the divisional manager of Montreaux Chocolate company.

Raymond has been known for his aggressive selling concept, and he is committed to setting aggressive sales forecasts. Apollo grabs the market opportunity by acquiring Montreaux Chocolate USA.

Company Objectives

1. National distribution of new product lines.
2. $115 million in sales.
3. Be in the top 25 in the revenue (0.60% market share)

Problem statement

1. What were the problems faced by Montreaux Chocolate USA in positioning, sizing, and packaging its products?
2. Should the company build upon its European brand equity or more directly tailor it to American consumers?
3. The company needs to decide on the size of the packaging. Should it market its products in smaller squares for portion control or as a 3.5-ounce candy bar?

Target Market

Supported by the data provided in the case, the suggested primary target market for Montreaux Chocolate’s new product line is the “everyday sophisticated” or “bliss consumers.” These individuals are typically health- conscious consumers ages 45-64 who earn an income of $50,000+ and are college- educated and married with children.

This segment is also primarily female, as women are 4% more likely to purchase chocolate, associate chocolate with a positive experience, and are attracted to the health and wellness benefits dark chocolate provides.

More willing to experiment with new foods and extremely loyal to brands, this market is perfect for…