Montreaux Chocolate Usa Case Study Solution

chocolate products in the US, Torres and her New Product Development (NPD) team have conducted enough research for our team to support the decision of launching a healthy dark chocolate candy product nationally. Torres, with the help of the NPD team and a partnership with Nielsen BASES, had conducted 5 different tests to give our team enough information to make informed and knowledgeable decisions over the introduction and positioning of the dark chocolate candy into the US confectionery market. MARKETING STRATEGY AND ISSUES Montreaux Chocolate is a European company, unfamiliar in the US. Torres and NPD team’s charter were “to achieve national distribution of Montreaux Chocolate USA and continue to significantly build the chocolate business in the US by developing new product lines” (Case, Pg. 4). Torres has to choose between four basic options: perform further product testing, launch in selected test markets, stage a regional rollout, or launch nationally. In making this decision, there are also more specific decisions to be made about how they should market or modify the product to be successful in the US. This product, while popular in Europe, must be evaluated to see if it is viable in the US market as it stands or if it needed to be tailored to the American culture and expectations. American expectations of candies and chocolates are different than European expectations. One such decision regards the positioning of this product to appeal to a certain group or fit a certain need. One of the big questions for them is to choose between marketing it as a healthy chocolate or distinguishing it from other chocolates by its taste. According to focus groups, consumers valued the products healthfulness as its most distinguishing quality with 70% cocoa. Another decision is how to package the product. Several options were proposed on this front, such as a 3.5-ounce bar or 10 squares in a 5-ounce stand-up pouch. The focus groups declared the 5-ounce stand-up pouch with packaging and brand image emphasizing healthy benefits would offer the greatest revenue profits. There is also a question about the timing. Could it be a time crunch to go ahead and produce the product? Should they do more testing and wait three years to introduce the product? These are all very important questions to ask, because there

1. Discuss the key challenges and marketing issues Andrea Torres must address at this time. Why do you feel these issues and challenges are key to the success of the new product line?

By taking account of the facts mentioned in the case,it is evident that there are certain issues about marketing as well as some of the challenges that must be addressed by Andrea Torry. There are four options that are available to Andrea Torry and these are comprised of conducting further testing of the product.

Secondly, Andrea is also having an option to launch the product in the selected test market. Thirdly, she can also consider taking into account the launching of chocolate on a national basis. On the other hand, the other option that she can choose from is to take into account the stage a roll out on a regional level.

Moreover, there is also a need to consider the marketing of a product. Hence, concerning the marketing either the corporation will make a use of the Montreaux brand name or the brand name of Apollo is going to be used because by now they have already made their reputation in the US market.

Andrea will have to make a decision in relation to the marketing of the product, whether the chocolate that they are going to launch should be better in taste or focus should be placed on health issues. Another issue that should be addressed by Andrea is based upon the packaging of the product because in order to keep the clients satisfied Andrea will have to look at the consumer pattern.

Hence, these issues are the key to success of this new product line because if the customers are not satisfied ultimately then the corporation may have to face these challenges. In addition to this, there was also a presence of many options displays as well.

The other challenge that has to be taken into account is related to the timing because this also acts as a key in terms of the success of any business. Hence, Andrea will have to make a decision that either she should need to conduct further testing or she is willing to go ahead.

On the other hand, it should be better if Andrea Torry goes ahead and she starts producing a product now. This is because if Andrea will wait in relation to the testing of product then it can face further challenges because other competitors in the market will arrive with the same products.

Nowadays, the competitors are striving hard to take over the other corporations that are operating in the same sector because of the development in the technology,which provides a competitive edge in relation to imitation.

Despite this, it is also worth mentioning that Andrea must perform the launching of product on the national level because this is evident that Apollo is a well-known brand.Also, it has increased popularity among the consumers and is also having a great reputation in the United States.

Hence, this means that due to the high reputation in the US the corporation may not have to perform an advertisement on a large scale and the customers will already be having information about the Montreaux so they are not required to have much knowledge about the new product line.

In addition to this, Andrea will have to invest on a large scale in relation to the product as a healthy chocolate, which has great taste. This is because after conducting a vast research it has been taken into consideration that in these modern times the consumers are aware about the health issues.Therefore, the consumers usually prefer to take healthy diet but which should also be good in taste.Montreaux chocolate usa are americans ready for healthy dark chocolate Case Solution

2. Evaluate the achieve ability of the company objectives for Montreal USA. Identify the most salient aspects of the chocolate confectionery industry, globally and domestically, that bear on a new product introduction. Provide support for your conclusions.

As per the facts of the case, it can be mentioned that the annual compound growth between the fiscal year 2007 and 2011 is 2.80% on an annual basis in the United States. Moreover, it is related to the segment of a chocolate and the total revenue in relation to the chocolate segmentis $17.664 billion, which is representing an increase of almost 1.90% over the fiscal year 2010, respectively.........................

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