Chocolate Marketing Case

Situation Analysis

Market overview

Chocolate is the most profitable segment of the global confectionery market, with 52.6% of the total market’s value. Europe has the largest share market with 45.2%, followed by the Americas with 33.9%. In the US, the confectionery market reported total revenues of 35.6 B, and the chocolate section accounted for 17.66 B. The expected growth for the US chocolate market was 2% per year from 2012 to 2015.

Business Analysis

Apollo Foods is a global consumer packaged goods powerhouse offering and unrivaled portfolio of brands, manufactured confectionery, biscuits, snacks, and other food items. The distribution of the company reaches to about 170 countries, and reported 54.4 B in revenue and 3.5 B in net income for the year 2011. The consumer foods group (CFG) is responsible for all confectionery products and was the operating division that was in charge of overseeing the Montreaux Chocolate USA operations. CFG are experts in confectionery market, holding second position in marketshare due to products such as gum and candies, and boasts a large sales force.

Competitive Analysis

The chocolate segment in the US was dominated by a few big players with the majority of the market share in the US. In first place was Landcaster Company with 34.8% of market share, and second was Fisher’s with 34.4%. Apollo Food was far behind with its market share. Also, one of the competitors had also recently tested a dark chocolate with fruit concept and was likely not far from introduction, causing high pressure for Apollo to act quickly.

Market trends

• Premium chocolate products being disturbed in mainstream channels, such as supermarkets and mass merchandisers.
• Dark chocolates are benefiting from health trends in the US market.
• Low-calorie options such as reduced fat and aerated chocolate.
• Packaging transitioning to stand-up pouches and bigger sizes.
• New labeling with terminology emphasizing shareability, portion control, and saving a piece for later.

Market profile

45-64 year old health conscious women, college educated, with a household income of $50,000 per year, that are married and with children. These women have a high level of consumption and purchases the cholate for themselves as a personal reward or for mood enhancement.