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. SEGMENTING
• Mass market
• Premium market
• Affordable luxury
• Upscale premium
• Super premium
TARGETING
• AGE: 45-64
• USA
• GENDER: Men and women (57% Females and
43% Males are daily chocolate eaters)
• INCOME: $50,000+
• College-educated, Married with children
POSITIONING
• BENEFIT: Reduce chances of high cholesterol
and provide cardio-vascular benefits.
• POP: Dark Chocolate in Chocolate segment
• POD: 70% cocoa with additional natural fruit
ingredients.

6. 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

7. 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

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

10. 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.

11. 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

12. – PLACE:
• USA
• Distribution channels:
– Super centers
– Supermarkets
– Drug stores
–Convenience stores
5. BUSINESS ANALYSIS:

13. 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

14. TO LAUNCH OR NOT??
• These goals are achievable by Apollo as it has a
revenue of $54.4 billion in 2011
• They are 2nd 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

15. • 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
• Consumers 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.

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