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Montreaux Chocolate USA - A Case Study

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Montreaux Chocolate USA - A Case Study
Story: By Saurabh
“”
To encourage the purposeful meaning of the study, we will consider the following questions about the
chocolate market in US and Montreaux strategy in launcing the new product(chocolate) in USA.
Describe the chocolate market in the US. Do you feel the Mondreaux should enter the market
place? If they do, what should the brand name of the chocolate be?
What are Raymond’s expectations of Torres ? Will Raymond’s projections stand? How should
Torres move?
What was the sequence followed for NPD? How did research help in coming to the final
product and its variant?
Describe the chocolate market in the U.S. Do you feel that Montreaux should enter the
market place? If they do, what should the brand name of the chocolate be ?
Chocolate is the most lucrative segment of the global confectionery market, accounting for 52.6%of
the market's total value. In2011, Europe captured the largest regional share of the global confectionary
market at 45.Z0%, with the Americas follow at 33.9 %
Chocolate Market In The US:
The US confectionery market reported total revenues of $35.648 billion in 2011, represented annual
growth rate of 2.8% between 2007 & 2011. Total revenue for the chocolate segment in 2011 was
$17.664 billion, a 1.9% increase over 2010. The US chocolate market expected to grow almost 2%
annually through 2015.
The chocolate market in the U.S. is composed of seven product segments, with the top four accounting
for 94.4% of market value:
Bar/bag/box (3.5 oz.+): 7,149 million, with 7.6% growth between 2009 and 2011
Seasonal chocolate: 4,407 million, with 9.9% growth
Bar/bag/box (less than or equal to 3.5 02.): 3,479 million, with 18.5% growth
Snack-size chocolate (less than or equal to 0.6 02.): 2,522 million, with 10.8% growth.
Other segments include gift box, sugar-free, and novelty chocolate. The overall market for chocolate
in the U.S. is segmented by mass market and premium, with the mass market accounting for 80.3%
of sales and premium for 19.7%. The premium segment is further segmented into everyday
gourmet/affordable luxury, upscale premium, and super premium, which represent 16.8%, 2.2%, and
0.7%, respectively, of total sales Grocery, drug, and convenience stores, and Walmart, collectively
sold approximately 45.3% of the chocolate candy in the U.S. in 2011. Grocery was the largest channel,

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accounting for 15.8% of sales followed by convenience stores at 11.7%, drug stores at 9.O0/0, and
Walmart at 8.8%.
Trends in the U.S. chocolate market in 2011 included:
Premium chocolate products moving to mainstream channels (i.e., supermarkets, mass
merchandisers)
Dark chocolate sales benefiting from flavanols-antioxidants that can help to lower cholesterol
and provide cardiovascular benefits
Low-calorie options such as reduced fat and aerated chocolate
Packaging going to stand-up pouches and bigger sizes that appeal to economically conscious
consumers
Increases in pricing attributable to rising commodity cost
Wheather Montreaux should enter the market place. If they do, what should the brand name of
the chocolate be?
Andrea Torres, director of new product development at a high-end chocolate confectionery
company, leads her team through a carefully sequenced program of market research to
support the development and launch of a new product, healthy dark chocolate with fruit. This
is the first time Montreaux USA, an offshoot of a Swiss confectioner, has created a product
specifically for U.S. chocolate consumers.
Torres and her NPD team on the basis of their research describe the decisions that lie ahead,
a few months in advance of the anticipated launch. A challenging situation is intensified by a
competitor also having tested a dark-chocolate-with-fruit product that was likely to be
introduced into the U.S. marketplace in the near future.
Consumers' focus on fitness and health in the U.S., which sharpened over the past three
decades, prompted Montreaux Chocolate USA to consider expanding its chocolate offerings
to include products that featured a healthy focus. As the emphasis on healthy eating habits
heightened, however, so had the number of competitors and the rate of new product
introduction. Fishers, Inc., a Dallas, Texas-based firm, was the leading global player in 2011,
generating a 16.8%share of the market's value. Apollo Foods solidly held second place at
15.4%, with Swiss food giant Cornelius S.A. following at 9.1%. None of these companies,
however, was the leader in the U.S. chocolate market; that honor went to Lancaster Company,
with a 34.8% U.S. market share. Fishers closely followed with a 34.4% share.
CONCLUSION
Montreaux a well-known Swiss company with Unique manufacturing process should definitely
enter the US chocolate market with its Dark Chocolate with fruit concept, a product from the
higher concentration of cocoa (with health benefits, Antioxidants help to lower cholesterol
and provide cardiovascular benefits).
Stay with the Montreaux name build on the European company brand equity but develop the
taste based on the U.S market to cater the local people, emphasize the product as healthy
product.

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Montreaux Chocolate USA - A Case Study Story: By Saurabh “” To encourage the purposeful meaning of the study, we will consider the following questions about the chocolate market in US and Montreaux strategy in launcing the new product(chocolate) in USA. Describe the chocolate market in the US. Do you feel the Mondreaux should enter the market place? If they do, what should the brand name of the chocolate be? What are Raymond’s expectations of Torres ? Will Raymond’s projections stand? How should Torres move? What was the sequence followed for NPD? How did research help in coming to the final product and its variant? Describe the chocolate market in the U.S. Do you feel that Montreaux should enter the market place? If they do, what should the brand name of the chocolate be ? Chocolate is the most lucrative segment of the global confectionery market, accounting for 52.6%of the market's total value. In2011, Europe captured the largest regional share of the global confectionary market at 45.Z0%, with the Americas follow at 33.9 % Chocolate Market In The US: The US confectionery market reported total revenues of $35.648 billion in 2011, represented annual growth rate of 2.8% between 2007 & 2011. Total revenue for the chocolate segment in 2011 was $17.664 billion, a 1.9% increase over 2010. The US chocolate market expected to grow almost 2% annually through 2015. The chocolate mar ...
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Very useful material for studying!

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