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Solution 1: Key challenges and marketing issues

The key challenges Andrea Torres needs to address at this time can be summarised into
the following:
 Product Proposition: The final product proposition is not yet finalized. The
composition of fruits is not decided.There were different fruits which were
combined and tested with a number of different flavour, colour, and texture.In
adddition to prior test, dark chocolate with different cocoa concentration were
also tested. Though BASES test has helped to narrow down the options, but still
Torres has to make the final decision on the proposition of the final product.

 Product Size: The chocolate generally comes in two size variations in the market:
3.5-ounce bar and a 5-ounce pouch version. The initial BASES testing could not
draw any concrete consumer preference, but the 5-ounce version had some
clear advantages because it was less risky as it was more unique than the very
common 3.5-ounce pack. Additionally, the 5-ounce pack has the potential to
generate more revenue due to the higher price. But at the same time, 3.5 ounce
bar was expected to be sold more often than the 5-ounce pack due to its smaller
size. Now Torres has to decide what package size to launch to maximize the
profit.

 Product Branding: Since Montreaux was not a recognized brand in the USA,
Hence Torres has to decide if they are going to launch it under the already
established Apollo brand name or stay with the present Montreaux brand name.
Another option to Torres is that to launch the product under a new brand name
to market the health benefits of dark chocolate.

 Torres must also decide whether to market the product according to its taste or
as healthy chocolate emphasizing on the health benefits of dark chocolate.
According to recent research, health benefits were proved to be more important
attribute than taste, but NPD indicated taste to be a significant parameter in
quantitative testing.

 Market test: Torres needs to decide whether to go ahead with further market
testing. If he decides to go ahead, he has to ponder upon various issues listed
below:
a) The main challenge was to identify the market. He needs to decide whether to
launch the product in the selected test market, regional market, or to launch it
nationwide.
b) It is difficult to identify any city having representative from all US consumers.
c) The testing would be highly expensive and would take almost one year to gain
meaningful result.
 There was a threat from a competitor as well. There was information about a
competitor who recently tested a similar product concept. So, Torres has to
decide quickly; otherwise, it might get too late to launch.
Torres needed to address these issues and challenges quickly and wisely to make the
new product line successful.

Solution 2:

From the case, it is observed that though the percentage of target market for children is
95% which is slightly higher than that of the adults which was found to be 92%. The
average pieces consumed in adults was more than half than that consumed by children.
If the product is desired to be launched as a premium product, and targeted more
toward adult, the numbers would also favor the product placement.

Further it is observed that women associate the chocolates with positive experience.
This would help in promoting the product as a self treat. The dark chocolate consumers
consider dark chocolate to be healthy for its claimed health values. And most the
customers were loyal to brand. From the second BASES Snapshot Concept Test, it is
observed that 87% responses strongly agreed that dark chocolate with fruit option is
better for them than the other chocolates. This number supports idea of launching the
dark chocolate fruit addition as over 1/3rd of the premium chocolate buying customers
believed the chocolates to be healthier than the other chocolates. The product proposed
finally after the Second BASES Snapshot Concept test was a 5 Oz packaging
concentrating on the health aspect of the product.