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Question 1.

Going forward, should Theo compromise the principles on which it build its
reputation and value preposition? Can it be made profitable doing so?

The success pillar of Theo chocolate company is his principle which they are following. This is
the first company which is using the main organic, having fair trade and bear to bar chocolate
factory in us.
Theo is fair trade certified by the IMO (institute for market ecology), a Swiss-based independent
international agency that claims to inspect, certify and guarantee quality assurance for a wide
variety of eco-friendly consumer products. The USP of this company is that Theos customers
are committed to sustainability and social justice. They are willing to pay a premium for a
product that doesnt damage the environment, that is healthy to eat and that is just in dealings
with farmers, farm workers and workers along the production/supply chain.
For the workers at Theo chocolate in Seattle, it wasnt just a job. They believed in
The fair trade mission of the company. Theo chocolates states that its fair
Trade practices include:
Using only pure ingredients that are grown sustainably. They source ingredients
locally whenever possible.
Partnering with growers by ensuring they earn a living wage and have access to
Education for their families.
Honoring and respecting our employees and suppliers. This is possible due to the
Unique fact that we control every step of our own manufacturing process.
Using green energy sources to power our factory.

So if Theo compromises these factors then it will decrease their brand value and ultimately it will
be overall loss to company. So according to me he should not compromise these factors.

Question 2. Where do you think the opportunities for growth for the company lie? How do you
analyze the option? Which would you choose?

Firstly the opportunities for the success of companys lies on his segmentation i.e niche market,
as they only targeted the young, well-educated and socially conscious population. The company
should not only considered into niche market as it is not profitable but it has also target main
stream and then might be the profit ratio will go high.
Secondly the seasonal nature of chocolate.
Large competitors shifted to high- margin health- based chocolate products by acquiring other
niche/organic chocolate producers.
Another thing they can do is that they can expand their distribution channels in the United States
or in international market as like as Starbucks are doing and with the bigger market they can
produce more and also price can be lowered.
I would like to go through the decision of expanding my brand into the main stream with a new
name/brand under the Theo chocolate company.

Question 3.a) What should be the objectives for the Theo consumer brand over the next five

Answer 3.a
As the company is totally based upon his principles and following his mission. So , rooted in
passion. Grounded in beliefs. Put into practice every day. Its what makes Theo chocolate the
best in the world.
So their objectives should be
They should be dedicated to using that knowledge, and that responsibility, is what drives them to
do things differently, to help make the world a better place. They think about every choice they
make, every action they take and how they will impact their interconnected world, developing
new markets to drive production and sales over the next five years.
Second objective should be to convert the current performance into desired performance.
Theo should concentrate on spreading awareness of its brand by marketing their CSR activities

Theo chocolate should expands distribution nation and worldwide as they are going to expand to
Canada companys high-quality, ethically sourced products now available in all 50 US States and
four Canadian provinces .
They should launch various new chocolate bar series nationwide.
They can also open their coffee cafes where they can provide variety of coffees and this will also
work their own retailing stores.
Even Theo was too small and not well known enough to attract class a food broker. So to have
that they should expand and should get popularity so that they can generate profit from same
class a food brokers. They should also change into main stream so that they can get more money
from same product.

Question 3.b) Based upon your choice above, how should Debra Music manage the consumer
brand? What marketing and sales tactics should she employ to achieve these objectives?

Answer 3.b
First of all to manage the consumer brand, she has to more and more focus on the companys
main principles thats their USP which provides the best value to the consumer and satisfy their
need. She should expand the distribution and the availability of her product. Overall Theo has
been very successfully driving sales through its factory store in Seattle.(store sales accounted for
about 40% of Theos total revenues.) In order to build Theos brand awareness and develop new
markets, Debra music should open retail stores in other major US. Cities, such as New York city
and Chicago, using Seattle as a model. Debra music was VP sales and marketing she can manage
their consumer brand by upgrading the product like they can produce flavors with wine or
alcohol to attract consumers. And emphasizing more on health benefits of product in market can
also provide them lead.
She can use marketing 4 Ps
Product: - expanding product line, capture all markets for chocolate buyers, and one market at
Place: - expansion of distribution channel
Price: - price can be lowered with bigger market.
Promotion: - intensify marketing campaign.

They can also target chocolate influencer buyer consumer to increase their sales like hotels,
restaurants beauty salons, spa, teens, and dermatologist.

Beside this she can also improve the consumer brand by improving
Unique flavors
Health benefits
Melting temperature
Brand image
Package size

Question 3.c) Should Debra Music attempt to build a B2B brand? Why? If so, how should she
go about doing this?

Answer 3.c
Yes she should, as the chocolate market in America has huge potential so Debra music should
attempt concentrating to build a b2b brand that can generate a big revenue for the company. She
can also collaborate with other companies and retailers too that is purely b2b which can also
increase their distribution and availability.
The Theo brand has not been well known enough to attract "a" class brokers to open its new
markets in the Midwest, the southwest and the south, so it's a good strategy for Theo to build a
b2b brand in order to open new sales channels, such as supermarkets and big chain stores. A
strong b2b brand will drive Theos sales and revenue. Its good for Theo, especially when the
Theo factory is not running at full capacity.
As to how Ms. Music should go about building a b2b brand, building a strong b2c brand is the
first step and will assist in achieving the ultimate goal of building a b2b brand. Some other
strategies such as co-branding with supermarkets or private labelling should also be considered.

Question 3.d) What are the challenges Theo might face in managing brands in both the B2C
and B2B spaces?

Answer 3.d
The challenges Theo might face in managing brands in both the b2c and b2b will be on
increasing the more demand in future, lesser work force, poor staffing already is a problem.
More demand might lead to more raw material input, more cost involved in production, lesser
working capital leads to low supply.
Even though both b2b and b2c are important, but, building a b2b brand is quite different from
building a b2c brand. B2b brand mainly focus on services, channels and managing the products
whereas building b2c brand focus more on packaging and marketing and people. But the most
important thing is to always focus on the consumers needs and wants.