Thorntons

Case Study Thorntons

1. Thorntons' pattern of strategic development from its origin to 2003

Right from the beginning, Thorntons had followed a strategy of in-house manufacture.

Thorntons has developed right from the start a strategy of focus differentiation.

Thorntons operates in four customer-market segments: gifts; personal treat; family-share; and, children, each with different customer needs. Their marketing mix reflected these different needs.

Regarding the children segment, they created different themes like Dinosaurs, Fossils and Dalmatians spots.

The Strategy Development Directions framework will give use a more specific and global image of Thorntons Strategy.

Protect/Build

Consolidation:

* Chocolate scented

* Relaunch of Continental range

* Chocolate champagne bottle

Market penetration

* Snack bar

* Chocolate on stick ( For Easter)

Product development

* Ice cream

Market Development

* Supermarket customers

* Us Market

* Europe (France, Swiss etc.) Diversification

* Cafй Thorntons

* T-shirt & underwear (St valentine)

SWOT Analysis of Thorntons

Strength

- Brand

- High Quality Products

- The market the operate In very lucrative

- Good quality of service, include personalised message

- Gift wrapped

- Shareholders

- Franchise Weakness

- In house manufactured (made sometime difficult to meet the demand in seasonal pick)

- Location

- Outlets of shops

- Products variations

Opportunity

- More automation

- Organic growth

- Develop the share

- Extension

Threat

- Supermarket own brand product

- Larger manufactures

- Small and more specialist Chocolate brand

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2. Strategies adopted by Roger Paffard

Mr Paffard developed a strategy of diversification, products development and Strong brand name. He also expands the channels of distributions.

Mr Paffard sees expansion as route to success

Expanding its portfolio to include such products as ice cream, liqueurs or sauces is seen as the most likely means of generating future growth.

Thorntons widen their products to respond to customers demand; and discontinued some products that were not rentable. A greater emphasis was made on snack and impulse buy strategy to attract a wider range of customer.

Thorntons developed mail order and cafй Thorntons as a response to the seasonal pattern demand.

Mr Paffard development strategies were as follow:

 Concentration on Packaging

 Opening and developing better and larger stores

 Increasing rate and scope of product innovation

 Repackaging and relaunch of the classic range

 Add