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MONTREAUX

CHOCOLATE USA
Are Americans Ready for Healthy Dark Chocolate?
Company Background
Company Apollo Foods
Location Los Angeles California, USA
Industry Food
Product Confectionary, Biscuits, Snacks,
Cheese, Beverages, Convenient meals,
etc.
Divisions 4Divisions, one of it is Consumer Food
Groups (CFG)
Distributor 170 countries
Market Share 2nd Place – global confectionary
business
Year 2011 Revenue - $54.4 billion
Net income - $3.5 billion
• In 2011 Apollo acquired exclusive rights to manufacture and
distribute Montreux Chocolates (Swiss) in United States.
Objectives of Apollo with respect to
Montreaux
 National distribution
 $ 115 million in annual sales
 Be in the top 25 in revenue

• Montreaux Chocolate USA Volume Projection:

2013 2014 2015


Total US market $18,378 $18,745 $19,120
size
Montreaux $51 $76 $115
Chocolate USA
Montreaux US 0.28% 0.41% 0.60%
market share
Analysis:

Strength Weakness
1. Apollo as a brand. 1. Non Acceptance of brand
2. Strong R&D 2. Apollo never had any experience in
3. Brand Awareness. the chocolate market.
3. Cost incurring and risk involved.

Opportunity Threat
1. New market to explore. 1. Competition
2. Leverage on health benefit of dark 2. Nationwide acceptance of the dark
chocolate. chocolate.
3. US chocolate market expected to 3. Competition from other
grow at 2% annually through 2015. confectionary items.
Key Issues:

 Taste VS Health
 Target market
 Product name Apollo or Montreaux?
 Packaging
 Continue testing Or Regional Rollout Or Launch Nationally.
Taste Vs Health

More
Healthy

Fruit Flavored
Dark Chocolate

Less Tasty More


Tasty

Less
Healthy
Target Market – Women, Age 45-64

Women Age (45-64)


 More likely to eat chocolate than  Highest level of per-capita
men (94% vs. 90%) chocolate consumption.
 React positively to new ingredients
and flavours
 Increase in consumption of dark
chocolate as age increases
 More likely to associate chocolate
with positive experiences such as  Higher incomes allow them to
personal rewards and mood purchase “premium” chocolate.
enhancement
 More concerned about health and
 Enjoy benefits of improved cardio weight
vascular fitness and lower blood
pressure
Name of the brand:
Montreaux Swiss Dark Chocolate
(part of 'Apollo')

 Implies both European and specifically Swiss heritage.


 Montreaux name links to quality and expertise.
 Apollo group overall has confectionary experience, thus gives familiarity in US
market.
 ‘Dark’ clearly specifies it is a dark chocolate product.
 Dark Chocolate and under Apollo umbrella imply health values.

 Therefore medium ACV.


 Medium Consumer Awareness
 Excellent product
Packaging:
Bar/Bag/Box larger than 3.5OZ
 More space for product messaging.
 Largest segment of $7149 million, with 7.6% growth between 2009-11.
Continue testing Or Regional Rollout Or
Launch Nationally?
Test-Market
 Given there is a competitor trying to enter the market, continuing testing is
not a good idea.
 Regional rollout – risky, as the competitor could launch nationally and
dominate the market
 But current product launch nationally would not meet the goal.

 The strategy could be to launch nationally immediately after the test


market, which would meet the goal by 2015.
Source

Definitely would buy 23% Exhibit 5

% of "Definites" who actually buy 80%

"Definite" Purchases 18%


Montreaux Sales
Volume = $33.2M
Probably would buy 40% Exhibit 5

% of "Probables" who actually buy 30%

"Probable" Purchases 12%

Trial Rate ("Definite" + "Probable") 30%

Households (MM) 120.0 Exhibit 5

Penetration, % of households 92% Exhibit 5

Awareness 17% Exhibit 5

ACV 65% Exhibit 5

Total Trial Households (MM) 3.71

% of households repurchasing 38% Exhibit 5

Repeat purchase occasions Exhibit 5


4

Total Repeat Purchases (MM)


5.64

Total Purchases (Trial + Repeat) (MM)


9.35

Retail selling price $4.49 Exhibit 5

Retail sales value ($MM) $51.0M

Retailer gross margin 35% Case text

Mondreaux Sales Volume ($MM) $33.2M


Thank You
Group1 IMG10(D)
Akshnit Kaur
Deepali
Vibhor Gulati
Soumit
Vinayak
Aditya Arora