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MONTREAUX CHOCOLATE USA :

 

Are Americans ready for healthy

dark chocolate ?

   
 

Presented By : Group 10 Shivam Sharma (281184) Stuti Ahuja (281185) Tanmay Vashisth (281186) Rajat Kataria (281190) Sumedha Singh (281191)

Shubham Aggarwal (281192)

APOLLO FOODS

Location: Los Angeles , California

Products: Global Consumer packaged goods: confectionery, biscuits, snacks ,cheese & beverages

Distribution - 170 countries

US market share - 2nd

Revenue - $54.4 billion in 2011

Net income - 43.5 billion

THE CHOCOLATE MARKET

Chocolate-Made up of Roasted, Crushed & Refined cocoa beans

Typical chocolate are at least - Dark - 55% cocoa Higher quality dark - 70% cocoa Milk - 50% cocoa maximum

52.6% of market’s total value for global confectionery market is of chocolates out of which 45.2% is captured by Europe and 33.9% by U.S.A

94.4% of the chocolate market value is accounted by top 4 segments out of 7

- bar/bag/box (3.5 oz.+)

- seasonal chocolate

- bar/bag/box (>= 3.5 oz.)

- snack size chocolate

U.S chocolate market - 80.3% mass market and 19.7% premium(everyday gourmet, upscale premium & super premium)

45.3% of the chocolate candy in U.S.A was sold by - Grocery(15.8%) , Convenience store(11.7%) , Drug store (9.0%) & Walmart(8.8%)

Trends in U.S. Chocolate market

- Premium chocolate moving into mainstream channels

- Benefits of dark chocolate such as helping in lower cholesterol

- Options with lower calorie chocolate for health conscious people

- Packaging, new labeling with terminology appealing to larger conscious consumers

CONSUMER MOTIVATION TO BUY CHOCOLATE

Women - personal reward, mood enhancement, improved cardiovascular fitness & lower blood pressure

Men - price, practical characteristics such as energy boost, convenience, affordability.

Preferring of mini and snack size chocolate portion to indicate an effort to control consumption and awareness of health and wellness issues.

CONSUMER ATTITUDES & USAGE

In 2012 chocolate was consumed by 92% adults and 95% children.

Women contributed 94% in chocolate consumption while men contributed 90%.

The 45-64 age group had the highest level of chocolate consumption.

Consumption of dark chocolate was seen proportional to the increase in age.

REASONS FOR COLLABORATION

Montreaux, a swiss chocolate company wanted to enter us market; apollo wanted to enter chocolate market

Apollo especially wanted to explore new dark chocolate market

It was a necessary step to increase Apollo’s US market share

Apollo wanted to upscale its market segment

GOALS ❏ Greater presence in the lucrative chocolate market ❏ Grow its confectionery share in
GOALS
❏ Greater presence in the lucrative chocolate market
❏ Grow its confectionery share in the U.S.
❏ National distribution of the new Montreaux product line ie - increased
percentage of stores should sell the chocolate
❏ $115 million in annual sales
❏ Be in top 25 in revenue (0.60% of US market share)

NEW PRODUCT DEVELOPMENT AT MONTREAUX,USA

NPD at Montreaux ,USA began to explore the growing dark chocolate category.

They generated 45 ideas that all parties agreed merited further testing.

Montreaux partnered with Nielsen BASES to quantitatively assess and optimize the new dark chocolate initiative.

BASES is a multifaceted marketing consultancy which offers services that span the NPD process from early idea to the final launch.

BASES would help Montreaux hone in on the new product opportunity and strategy in such a way that

It was in line with Apollo’s and Montreaux strategy of health & wellness.

Demonstrated strong consumer viability

Would deliver financial potential that would achieve the goals

BASES IDEA SCREENING TEST

BASES offers a low cost way to quickly assess the efficiency of new product ideas.The screening is based on the performance on four factors of the foundational strength of an initiative which are:

Distinct proposition

Attention catching

Need/Desire

Advantage

Out of the 45 ideas that the NPD came up with 12 were shortlisted on the basis of the factors listed above.

BASES SNAPSHOT CONCEPT TEST

12 product ideas reached the snapshot concept test.

It identified early optimization opportunities and rough size of price estimates.

Each idea was developed into full concept.

200 consumers per concept were asked to evaluate and give feedbacks.

Out of the 12 , 5 were further shortlisted

Dark chocolate with fruit concept were considered distinct and attractive by consumers.

Montreaux’s R and D team then moved on to product development.

FOCUS GROUP

Manageable size - 4 products in total, two with 70% cocoa and two with 90% cocoa in either 3.5 ounce bar or 10 squares in a five ounce stand-up pouch

NPD conducted eight focus groups to determine the optimal level of cocoa and fruit.

To refine the positioning of the line

Consumers preferred the taste of 70% cocoa more than 90% cocoa.

Healthy was the most significant aspect of the new dark chocolate.

MARKETING CHALLENGES

How to position the chocolate - health or taste

What should be the size of the package - small 3.5 oz or 5 oz or bar

How to package the product - Montreaux , Apollo or some other name ( sub brand of Apollo )

Perception of consumers of Montreaux Chocolate USA versus its primary competitors.

SECOND BASES SNAPSHOT CONCEPT TEST ● 200 consumers per concept asked to evaluate that concept
SECOND BASES SNAPSHOT CONCEPT TEST ● 200 consumers per concept asked to evaluate that concept

SECOND BASES SNAPSHOT CONCEPT TEST

200 consumers per concept asked to evaluate that concept and provide feedback

NPD developed 4 refined 70% cocoa dark chocolate with fruit concept

alternative positioning (healthy vs tasty) and packaging/size (3.5 ounce bar vs squares in 5 ounce pouch)

Found that 5 ounce pouch with healthy positioning offered greatest revenue potential

BASES II TESTING

Contacting consumers via internet survey panel to gauge trial interest among a representative sample

Shipped samples to interested candidates and contacted them about their product experience

This would allow to pinpoint potential areas of product optimization and provide a year volume forecast

Calculations are compared to standards with which comparable products have been tested in marketplace

PRODUCT LAUNCH

The name of the chocolate would be ‘COCO FRUIT’.

The product should be launched under the parent company itself which is Apollo.

Torre ‘s final decision should be to plan a regional rollout for the product.

Main focus should be on big cities and adults aged 45-64 years